CONCENTRATIONS OF CREDIT RISK

6 Months Ended

Jul. 03, 2011

Concentrations of Credit Risk [Abstract]

CONCENTRATIONS OF CREDIT RISK

NOTE J — CONCENTRATIONS OF CREDIT RISK

The Company grants credit, generally without collateral, to its customers, which are primarily in the power, metalworking, scrap and rail industries. Consequently, the Company is subject to potential credit risk related to changes in economic conditions within those industries. However, management believes that its billing and collection policies are adequateto minimize the potential credit risk. At July 3, 2011 and December 31, 2010, approximately 30% and 15%, respectively, of gross accounts receivable were due from entities in the power industry, approximately 21% and 25%, respectively, ofgross accounts receivable were due from entities in the steel, metal working and scrap industries, and approximately 27% and 14%, respectively, of gross receivables were due from entities in the rail industry. One customer doing business with theIndustrial Services and Rail Services segments accounted for approximately 17% of gross accounts receivable at July 3, 2011. Another customer, doing business with the Company’s Industrial Services and Rail Services segments accounted forapproximately 12% and 6% of total consolidated revenue for the three months ended July 3, 2011 and July 4, 2010, respectively. For the six months end July 4, 2010, one other customer, of the Industrial Services segment accounted forapproximately 23% of revenue from continuing operations. The loss of any of these customers would have a material adverse effect on the Company.