CRS - December 2013

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Editorial Print still beats digital where it counts: in the bathroom.

Marc Mandin brings corporate expertise to 4-Way Rentals and the CRA. 20

The road to profits Renting to road builders is a lucrative business. Here’s what you need Industry

John Brooks turns 75, Volvo breaks ground, Bobcat in cottage country, another Heathcote at NES and more.

18 Legalese Builder’s liens can protect your investment. by Deryk Coward

Return of the ROOTY Canadian Rental Service wants your picks for Canada’s top rental operator.

Concrete showcase Planers, vibrators, saws, trowels and more.

M&A Matters Don’t wait for lenders to give you their plan. by Mark Borkowski

Long live print

The rental industry is one sector that is not ready for purely digital communications.

Chris Wilson, a partner in A World of Rentals in Kingston, Ont., recently sent us an e-mail to explain why he had unsubscribed from our e-news notifications. I am deeply grateful that he took the time to do this, as his comments were pure gold in terms of customer feedback.

“I have recently unsubscribed from the e-version, and would like to share my thoughts with you,” he wrote. “Prior to the e-version, we received the magazine format, which I read monthly. Both Colin [Chris’ brother and business partner] and I received copies, and we shared them with our employees. I always enjoyed the articles, biographies, and found great information. Personally, I don’t read the e-version (nor do I read any other publication online), and find it a waste of time. Also, it doesn’t get to our employees, as we prefer them to be working and they don’t have access to the internet.”

Let’s read that last line again: “It doesn’t get to our employees, as we prefer them to be working and they don’t have access to the internet.” That, right there, is why print publications are still the most powerfu l communication channel for B2B markets, and will never be supplanted as long

Park named CEO of DICE

Doosan has announced that Scott Park has been appointed president and CEO of Doosan Infracore Construction Equipment (DICE), replacing Tony Helsham, who retires in February.

Rentquip fights breast cancer

Rentquip has announced it sold 33 Milwaukee Special Edition Breast Cancer Jackets in October to support the Canadian Breast Cancer Foundation.

Bobcat adds dealerships in Windsor and Sarnia

Bobcat has expanded its dealer network with the addition of two Carrier Centers locations.

as people work with their hands for a living. It may seem like a simple comment, but there are two huge points here.

First, trade publications are for working people. Busy people. Very busy people. In this, they are different from general news or interest channels that are read at leisure, in the place and time of the reader’s choosing. Trade magazines are read in the workplace, whenever and wherever the reader has a few moments. Because of this, the medium must be portable, transferrable, durable and easily navigable. As good as mobile devices are becoming on all these fronts, they still can’t beat a magazine in the rough-and-tumble environment of a rental store shop or construction job site.

Secondly, our magazine is not for people who are peering at a computer screen all day. As Chris points out, there is really no reason for rental shop employees to be on the Internet at work, except for when performing very specific tasks such as looking for a part. Idle browsing is not happening in shops that want to make money. A lot of rental stores (maybe more than is good) still do not use the Internet at all. One of my early lessons in how this industry works came when I was promoting the 2012 Canadian Rental Mart. I had posted the news that registration was open on the website and sent out e-mails to all readers, but registrations were slow coming in. Ed Cosman, our sales manager, who has been in this industry for more than 20 years, said he knew how to get things moving. He got into his time machine, travelled back to 1995 and sent out a fax blast. The registrations started pouring in. I knew then that this business is not exactly “plugged in.” Which is fine with me, since print advertising still pays the lion’s share of my salary.

Chris’ story has a happy ending. It turns out that World of Rentals was receiving the print edition all along (two copies, in fact), but Colin was hoarding them. Maybe it is possible to like the print edition of Canadian Rental Service too much. CRS

J Ohn B ROOk S COm Pany CE lEBRatES 75 yEaRS

Spirits were high at Mississauga, Ont.-based John Brooks Company as the fluid handling equipment distributor celebrated 75 years in business on Sept. 20. About 150 employees and friends of the company gathered to tour the extensive warehouse, toast the historic milestone and hear congratulations from local dignitaries. John Brooks Company owns Uniquip, which supplies a full range of products to the equipment rental industry.

Mississauga-Streetsville member of Parliament Brad Butt was on hand to address the crowd and pass along congratulations from Prime Minister Stephen Harper. Longtime Mississauga mayor Hazel McCallion was also on hand to relate her memories of the early days in the area where John Brooks now stands. Both presented owners Keith and Roger Minkhorst with certificates commemorating the occasion, and received in turn personalized John Brooks hockey jerseys. John Brooks supplies spraying, pumping and filtration equipment and engineered fluid handling solutions. Its brands include the Kodiak and Dynablast lines. It operates out of seven locations across Canada.

Another heAthcote At neS

National Event Supply, a leading factory-direct wholesaler to the party and event rental, foodservice and hospitality industries, has announced the appointment of Stephanie Heathcote to the NES team as senior marketing operations manager. NES hopes Heathcote’s proven background in planning and executing brand awareness and corporate marketing campaigns will help ensure NES continues to grow at record pace and further its leadership position in its markets.

“With more than 20 years of experience supplying Canada’s party rental industry, and a customer service team focused on providing quality products, fast shipping and great service for our clients, National Event Supply is ready for rapid growth,” Heathcote said. “I’m really excited to be a part of the NES team and hope to contribute towards its future growth.”

Heathcote comes to National Event Supply with six years of experience in B2B marketing in the high-tech software industry. Most recently, she was manager of marketing programs at Asigra, an enterprise cloud backup and recovery software company, where she managed a team of three inside sales and marketing professionals, planned and implemented corporate marketing promotional programs and co-managed the creation, planning and execution of the company’s annual customer conference for up to 500 attendees. She has a bachelor of commerce from the University of Ontario Institute of Technology with a specialization in marketing. Her appointment comes at the conclusion of another year of very good growth for the company thanks to its loyal customer base.

“National Event Supply is experiencing significant year-over-year growth and great customer interest in the wake of the launch of our new English and en français website,” said Dennis Heathcote, co-president. “Stephanie’s experience implementing a wide variety of B2B marketing campaigns, her track record of success and her business acumen are exactly what the company needs for its next phase of growth.”

crA nAtionAl boArd meetS in niAgArA FAllS

The Canadian Rental Association’s national board capped off three days of meetings with a social night on Sept. 28 in Niagara Falls, Ont.

The board meetings were described as “productive,” with some changes to the board taking place. Dave Fraser of CAT Rentals completed his term as national director for the Atlantic region, and Hank McKinnis of Hewitt Rentals stepped in to take his place. Dave Mintenko of Hertz completed his term as Manitoba national director, but remains on the board as national vice-president. His replacement as Manitoba director is Louise Serpa, of Bel-Ayr Rentals. Paul Everitt has completed his term as director-atlarge and retired from the board.

The national board extended its thanks to the Ontario CRA for organizing the meetings and social events. For more photos from the event, visit the Canadian Rental Service Facebook page.

Paul Potvin of Location Equipment Supply contemplates barrel design as he looks out at Niagara Falls.

Do you want to see how compact excavators perform in head-to-head competitions or watch side-by-side comparisons relating to performance, serviceability and durability? Before you buy your next excavator, watch our video comparisons of excavators. Not only do the videos show you which excavator is best, they explain the small details that increase your performance and reduce your downtime. You can watch all the videos at BobcatAdvantage.com/faceoff2 or scan the code and find out who comes out on top.

R E ntqu IP aDDS qu EBEC OffICE an D BI lI ngual Staff

Rentquip Canada has opened a new location in Mirabel, Que. The 4,000-square-foot office and distribution centre will house its French-speaking customer service team, as well as stock product to serve the Quebec and Atlantic territories. Based at the new location in Mirabel is Rentquip’s latest addition to the customer service team, Pascal Lord.

Lord will provide customer service in both French and English. He has extensive experience in several technical and sales oriented positions throughout his career. Mirabel is Rentquip’s fourth location in North America, preceded by Richmond, B.C., Woodstock, Ont., and Buffalo, N.Y., which serves the U.S. market with the Patron line of products.

D&W nam ED JCB DEalER

CB’s North American dealer network continues to expand with the addition of D&W Group in Ontario. A successful agricultural equipment provider since 1950, D&W Group will now represent the full agricultural line of JCB equipment and also will sell both the JCB compact excavator and hydraulic tracked excavator ranges. Within those two new product ranges, D&W Group will offer new, pre-owned and rental models – and provide JCB parts and service at its dealerships in Jarvis, Brantford, Simcoe and Vineland. For over 50 years, D&W Group has been a leading supplier of farm, construction and residential equipment including tractors, seeding and planting, tillage, hay and forage and harvesting equipment. Now, the dealership will apply its many years of experience to JCB’s wide range of agricultural equipment, including the world’s safest and most innovative skid steer, known for its patented singlearm PowerBoom and uniquely safe side-entry door. Other industry-leading JCB products now available at D&W

Group include wheel loaders, Loadall telescopic handlers and Fastrac High Speed Agricultural Tractors. D&W Group also offers a fully-stocked parts department and a fullservice maintenance team featuring professionally trained JCB mechanics.

“The D& W Group is excited about being able to provide our customers with JCB products,” said Kevin Doughty, store manager, D&W Group. “Having been in business for over 60 years, The D&W Group understands the importance of having quality products like those produced by JCB. We also know the significance of the good after-sales support that JCB will provide. The long lineup of products offered by JCB fills a gap at our four locations that will better answer our customers’ needs.“

“We’re very pleased to welcome The D&W Group to our expanding dealer network,” said Van Clarkson, vice-president of sales, JCB North America. “The D&W Group has already built a strong reputation of providing quality sales, parts and service. I have no doubt that they will serve to further strengthen the JCB brand in the various markets they serve.”

riggi to cover Quebec And Atl Antic cAnAdA For terex AWP

Terex Aerial Work Platforms has introduced Stephane Riggi as its regional sales manager for the northeast region team. Riggi will be responsible for covering Quebec and the Atlantic provinces. Riggi has extensive experience in the rental industry, first with his family-owned rental store established in 1979, and then with the Hewitt Cat rental store. He has experience at all levels of sales and purchasing during his career. Riggi was most recently eastern Canada’s district manager for Wacker Neuson.

“Having been raised in the rental industry, his wide spectrum of knowledge makes him a great addition to the Genie sales team,” said Adrian Max, regional sales vicepresident for Terex AWP. “Our customers are sure to benefit from his experience.”

Riggi is bilingual (English and French) and a native of the Montreal region. He is a graduate of Mount Allison University, N.B., with a bachelor of commerce.

INDUSTRY NEWS

VOlVO R E ntS

DI g S n EW g ROun D

I n tOROntO

Moving out of its Mississauga location, Volvo Rents, a worldwide provider of small-to-medium sized construction equipment, has relocated to Toronto, Ont. In August, Volvo Rents made the move to its new larger location complete with an equipment showroom and large yard to house the Volvo Rents fleet. The new location also features enough space for offices, a conference room and training facilities.

“Our new Toronto location puts us in a more ideal location to better serve our customers,” said Scott Teron, division manager of Volvo Rents

nEW B OBCat DEalER

Ontario. “With the current downtown location serving as a satellite to our new store, we’re not only expanding our coverage area and the amount and types of equipment available, we are also helping to feed the existing location which opened last year.”

In addition to Volvo Rents’ expanding line of Volvo compact equipment – such as backhoe and skid steer loaders, compact wheel loaders, compact excavators and compaction equipment – the new Toronto rental centre carries a comprehensive line of essential equipment and tools for the construction, commercial, industrial and homeowner markets. The focus is on daily, weekly and monthly rentals.

“With Ontario locations already in Windsor, Chatham, London, Stoney

Bobcat has expanded its dealer network with the addition of Bobcat of Parry Sound as an authorized sales, service and rental provider. The dealership is located at 25 Woods Rd., Nobel, Ont. Bobcat of Parry Sound opened its doors for business on Sept. 9, 2013. Although the dealership is new to the Nobel area, Bobcat of Parry Sound owner John Quast has overseen the daily operation of Bobcat dealerships for more than 12 years, bringing with him a successful dealership model based firmly on his widespread knowledge of the Bobcat branches. The new dealership will provide construction, landscaping and utility contractors as well as residents and municipalities throughout Parry Sound and Muskoka with quality equipment solutions –including Bobcat skid-steer loaders, compact track loaders, compact excavators and utility vehicles.

“As the name ‘Bobcat of Parry Sound’ indicates, we are fully committed to placing customers in the premier brand’s compact machines,” said Laurie Huneault, office manager at Bobcat of Parry Sound. “Customers in the area will undoubtedly benefit from the new dealership’s extensive selection of Bobcat products and its skilled service team.”

Creek, Leamington, Cambridge, and downtown Toronto, we believe there is tremendous value in relocating the Mississauga office to a larger market in addition to expanding its inventory, overall space, features and resources,” said Mike Crouch, vicepresident of business development for Volvo Rents. “With our strong brand recognition and the growing demand for equipment rental, I think the new office will be very well received in Toronto as it fits the needs and demands of our customers and Volvo Rents team.”

Located at 276 Horner Ave., the new rental centre will be open Monday through Friday, 7 a.m. to 5 p.m., with 24-hour service available every day of the week.

Goderich, Ont., native Pat Olney, currently president of Volvo Construction Equipment, has decided to leave his position to take up a new challenge at TRW Automotive. Pat Olney will remain in his present position until year end.

Olney, aged 44, joined Volvo CE in 1996 and has held a number of top management positions in finance, operations and general management before he became the president of Volvo CE in May 2011.

“I have had a long and rewarding career with Volvo, and for that I will always be grateful. As such, this was not an easy decision. I have had the ambition to relocate at some point to North America and this opportunity was simply too good to pass up,” Olney said.

“Pat has done an excellent job during his career with Volvo. I regret that he has decided to leave Volvo. At the same time I fully understand and respect his desire to move to North America for professional and personal reasons”, says Olof Persson, president and CEO of the Volvo Group.

The search for Olney’s replacement has begun.

olney leAveS volvo

Vertical Mast Light Towers

The Wacker Neuson trailer mounted vertical mast light towers feature a nine section tower providing less set-up time and easier operation. The light bar design creates greater flexibility in directing the four metal halide light fixtures for greater light coverage on the jobsite. A compact design allows for more cost effective transport and storage. 1-800-201-3346 www.wackerneuson.com

PUb L i C know L edge

Marc Mandin

brings

corporate

expertise to 4-Way Equipment Rentals, and the CRA.

Every successful company in this industry has the same secret to

success: service. Great

customer service is so important in the rental game that this magazine has the word right in its title.

But things get more interesting when you ask why some companies have better service than others. In the case of Marc Mandin, chief operating officer of 4-Way Equipment Rentals and incoming Canadian Rental Association national president, great service and great success have followed the intelligent application of knowledge. After 26 years in the Edmonton, Alta., rental market, Mandin knows his customers, knows the rental business and knows how to turn the assets he has into bigger and better assets.

Mandin got his start in the rental industry in 1988 at the departed Rite Equipment Rentals in Bonnyville, Alta. He was working on his master’s degree in vocational education (Mandin has a bachelor of education degree and is a journeyman carpenter) when Ian Kossowan contacted him looking for someone to manage his branch. Mandin’s first son was on the way and he needed, as he puts it, “a job in the real world.” In the Bonnyville location, Mandin rented to commercial, industrial and oilfield construction projects. In 1992, he was given additional responsibilities as operations manager for both Rite Equipment and a sister company called Western Shutdown Services in Edmonton. Western Shutdown provided equipment rentals and tool crib services to lumber mills and oil refineries throughout the prairie provinces. When Western Shutdown was purchased by Certified (which later was absorbed by Hertz), Mandin moved to Fasco Rentals in Whitecourt, Alta., where he worked until it was bought by RSC in 1998.

From there he made his last move to 4-Way and has been back in Edmonton ever since. Along the way, Mandin has touched just about all the main equipment rental sectors in Alberta.

4-Way was founded by Peter Skrobot, Henry Wisselink and Peter’s wife, Vicky, in 1975. There were originally supposed to be four partners, but one backed out and, as Mandin puts it, “They didn’t think 3-Way would be a good name for a company.” 4-Way’s current owner, Wayne Wadley, bought the company from the original partners in 1998, and brought Mandin on board to manage operations. Mandin was involved with a shortlived foray into running an RV dealership at the time, but he jumped at the chance to get back into the rental industry.

“It is a real challenge,” he says. “You have a lot of variety and when I talk about rentals, I talk about the rental game. It is a challenge keeping ahead of your sales staff and the fun part is the logistics.”

Wadley took the company public in 2005, effectively selling 4-Way Rentals to Canadian Equipment Rental Fund, a corporation he started that trades on the Toronto Stock Exchange. 4-Way is now one of four business units within the Canadian Equipment Rental Fund, or CERF, a group that includes Trac Energy Services, a rental operation for the oil patch, and MCL Waste Systems and SmartWay Disposal and Recycling, two wastemanagement businesses. Wadley, who ran a junior oil company called GeoCan Energy, was

familiar with public stewardship and was seeking a stable revenue stream to balance out the boom/bust cycles in the oil business. Equipment rental provided that, and Mandin has provided the management expertise to keep the shareholders happy.

The advantages of going public in the rental business were obvious right from the start. In a healthy market (like Alberta’s), the growth of a rental store is really only limited by its access to funds to buy fleet. Going public gave CERF an early injection of $4 million. Try going to your bank for that. “In the first two years we were able to do the equivalent of about 12 years’ growth,” Mandin says. 4-Way moved from a 5,000-square-foot store into a 16,500-square-foot facility and doubled its yard to six acres. He is quick to point out that timing played a big role, with CERF’s public offering coinciding with a period of tremendous growth in the Alberta economy and in the oil patch in particular. Still, it is hard to think of any other way a rental company could access these kinds of funds. “You want another million dollars revenue, you have to have another million dollars’ worth of fleet,” Mandin says. “It is not going to come just by wishing for it.”

But going public is not for everyone. One significant factor that many rental owners would have to overcome, and that Mandin has struggled with himself, is the requirement to open the company’s books to the public. “That’s one of the things with a public company,” Mandin explains. “Everybody knows exactly what you are earning. If you look in the right spots, you can see exactly what I am getting paid. I am a pretty private person, so that kind of annoys me, but what can you do? It is part of the package.”

Accounting, taxation and filing reports all become much more involved processes in a public company. There are tight deadlines to meet and strict standards to adhere to. You are only as good as your last quarter; any period of stagnation or decline that is not adequately explained in your financial

4-Way rentals survives in the cutthroat alberta rental market because it gives great service. How? Mandin is free to concentrate on operations while the corporate head office handles administration.

reports will be punished in the markets. 4-Way has benefited from being in a corporate group with three other businesses, which allows the company to share administrative, legal and accounting functions. A smaller operation may not be able to so easily marshal the resources to meet all the demands of listing publicly.

Building up interest in your shares as a public company is not straightforward, either. You might think that if you sold out your initial public offering and were held by a group of investors enjoying healthy dividends that your job as a public company is done. But shares that do not change hands do not increase in value. “People tend to wait for somebody to do something first,” Mandin explains. “If they see a company that is doing a lot of trading, they have some interest. But if you are limited in your trading, they just move on to the next prospect.”

Mandin estimates Wadley had over 100 meetings last year with various brokers and investors to drive interest in CERF. “I’ve had the luxury as COO to just focus on running the company,” he says. “I do not have worry about the bank because of Wayne and we have a CFO. The average smaller rental house, where you have a guy that has to deal with everything from the bank to pulling wrenches, would have trouble managing the extra time that would be required to be a public entity.”

Mandin manages 60 employees out of two buildings totalling 53,000 square feet. His wife, Denise, and son, Phillippe, work at 4-Way, too. Even with six acres of yard, space is sometimes an issue. One of the logistical challenges that keeps Mandin interested is how to manage the storage space. He points out that while rental operations want to empty their shelves the same way retail stores do, they have the additional challenge

of having to bring all that inventory back in again sooner or later. 4-Way rents primarily to industrial and commercial construction contractors. There are very few homeowner rentals. This is reflected in his fleet, which tends toward the larger, heavierduty equipment, such as 1,600 CFM compressors. Like many companies in western Canada, 4-Way has found it can keep the shelves empty through the winter with a focus on winter heat. “We wanted to find something to keep our winters busier,” Mandin remembers, “and what we were able to do over time was flip it on its head and now our winter/spring period is our busiest time.”

4-Way carries around 40 different kinds of heaters including electric, diesel, natural gas and propane-fuelled models, from small radiants right up to million-BTU units. Ground heating is huge, and 4-Way is the Edmonton dealer for Wacker ground heat

4-Way has grown significantly since it became part of a public entity. the cash injection has helped it take advantage of the booming commercial construction market in alberta.

rightsizing the fleet for the shifting needs of his market is a challenge Mandin enjoys. Sometimes it leads to opportunity, as when 4-Way got into winter heat rental and it became its most popular offering.

products. “We bought the ground heaters because we have always dealt with Wacker, but primarily on the compaction side,” Mandin says. “When they got big time into generators, we grew with them and that became the bulk of our generator fleet. Then, when they purchased Ground Heaters and merged the two, they instantly became our largest supplier.”

Loaders, excavators and dumpers also are big movers for 4-Way. Mandin says material handling is the most important contributor to his bottom line, with equipment with up to 12,000 pounds of lift capacity. He estimates he carries over 4,300 pieces of equipment, all told. Bobcat is Mandin’s main line for skid steers and loaders. Drilling and breaking equipment comes from Hilti. Mandin admits Hilti’s prices can be higher, but its tool management program is so efficient it makes up for it. “You send a tool in, they do the repairs, they send it back, you put it on the shelf and you get it back out on rent,” he explains.

Doing business in the gold-rush atmosphere of northern Alberta has some unique challenges for rental operators, Mandin has found. With great opportunity has come great interest in the market and a number of rental houses seeking aggressive growth and market share. The competitive energy has paid off for customers, with rental operators forced to offer higher levels of service than elsewhere and find innovative ways to serve customers. Mandin offers the example of equipment delivery. “If you go to Saskatoon, they do not have a fraction of the trucks we have. The way their

industry has evolved, most of the customers pick up stuff or they send it out on couriers. In Edmonton, back in the late ’60s, some wise guy got the idea to give free delivery. We’d like to find that guy or his ancestors and slap them around because we have never 100 per cent recovered from that.” Descendants of this nameless ’60s-era rental operator, beware!

Mandin has been a big believer in association involvement since his earliest days in rental. At first he just attended Canadian Rental Association meetings, then he got involved with some volunteering. Then longtime Alberta director Orrin Knapp pounced. “I kind of got railroaded, no, I mean I acted as president of the local for a couple years,” Mandin laughs. “Then I ended up on the board of directors at the national level.” Mandin got involved and stayed involved because he could see the tremendous benefits the association was bringing to his operation. The lending library made safety videos available that smaller rental houses otherwise would never have been able to afford, he says. Rental U was a big help in educating staff at a price 4-Way could afford before it became a big corporation. Mandin says it is amazing how willing association members are to share information about their businesses and experiences. Events like the American Rental Association’s Rental Show give him a chance to compare notes with operators from all over North America. While Mandin understands the impulse to keeps one’s cards close to the vest, he thinks independent rental operators have a lot more

to gain from a free exchange of information and help. “There are some people who say there is no way they will re-rent to another company because they view that as supporting the competition,” Mandin says. “I love dealing with other rental houses. They are some of your easiest customers to deal with. We don’t own any boom lifts, but I probably have anywhere from six to 10 out on re-rent at any given time.”

Mandin’s first priority as national CRA president will be to get a new managing director up and running. He is looking for someone who can reach out to all rental operators, members and non-members alike, all across the country, in both languages. Mandin talks about the need to build up trust in the association and re-communicate the value it delivers to the rental industry. He’d like to see the CRA co-ordinate training in some underserved regions without actually becoming a trainer itself. Experience with larger associations, leadership and organizational abilities will be other qualities the board seeks.

“Everybody has great ideas,” Mandin says, “but you have to have the resources and you have to have the time. Anybody in the rental industry knows that time is gold.” Mandin is hoping that he can bring to bear his demonstrated abilities to turn time into gold at 4-Way on the CRA and make some positive changes in the association he loves. CRS

FIx The Road, JaCk.

Lien into it

Builder’s liens can protect your receivables.

Some of you may have heard of builder’s liens, but don’t know whether they apply to you and your company.

Builder’s liens are typically thought of in the context of construction and often relate to unpaid accounts incurred during the course of a construction project. They can also be used as a helpful tool for collection in the rental industry. However, in my experience they are underutilized by rental companies in general. Specific builder’s lien legislation varies from province to province. I’ll be discussing Manitoba law here, but consult an attorney in your jurisdiction before taking any action.

Generally, a builder’s lien can provide those who supply labour, services and/or materials to a property with certain rights that are not otherwise available to general creditors. A builder’s lien secures a claim for payment on work completed or materials and labour supplied to a construction project. Typically, when a lien is registered against a property, it becomes a charge against that title to the land or property involved and thereby allows the lien claimant the ability to secure payment for work done or materials and labour supplied to the property.

A general creditor who has not supplied labour, services and/or materials to a property does not have the right to file a builder’s lien against the debtor’s property. For example, a lawyer who performs work for a client does not have the right to file a builder’s lien against the client’s property when the client fails to pay.

On the other hand, an equipment rental company may have the right to file a builder’s lien against the property where its equipment has been used.

A builder’s lien can be an extremely effective tool for collecting on an outstanding account, as it constitutes a charge against property. As a result, the builder’s lien will impede the property owner’s ability to sell the land or obtain financing in connection with the property. Ultimately, a builder’s lien can be used as a tool to sell the property affected and use the sale proceeds to satisfy the lien. This is a powerful

tool for any creditor to possess.

Suppliers of labour and materials to a property, such as general contractors, can include the renters of equipment in a builder’s lien claim, provided that the rental equipment was used on the particular property in question. However, you should not rely upon this to your detriment by assuming that a general contractor has included your claim for builder’s lien within theirs. Rather, you should make sure that your claim is included. If you are not sure, you would be best advised to file your own builder’s lien.

As noted above, the legislation dealing with builder’s liens varies from province to province. One thing that is common throughout the various provinces, however, is the fact that there are strict timelines that a lien claimant must adhere to in order to ensure the proper registration of a builder’s lien. Failure to adhere to these strict timelines (the actual number of days and technical requirements vary) can be fatal to a particular claim.

There are additional requirements that must be completed by a lien claimant, both before and after a lien is filed in order to secure and maintain the proper registration of a builder’s lien. These requirements should be discussed with your lawyer. On a relatively straightforward builder’s lien file, the total cost I charge to file a lien against a property (and thereby protect your interest in the property) is roughly $1,000. If you have a receivable of, say, $3,000 or more, it might make sense for you to consider filing a lien.

As a matter of practice, I advise my clients that they must have a system in place to trigger the filing of liens. People get very busy and often forget that they could have filed a lien if they had only thought about it at the time.

So, you should develop a practice with your lawyer whereby your internal systems automatically refer problem files out to your lawyer for the purpose of his/her potentially filing a lien. This is a matter for you and your lawyer to address. CRS

the R oad to PR ofitS

Specialized concrete equipment rentals tap into the lucrative road-building market.

If you are stuck in traffic behind road construction and you see one of the drivers smiling, chances are he is a rental operator. Equipment rentals to road construction crews are a huge source of revenue for the Canadian rental industry, and some stores even focus on them exclusively.

And there is growth on the horizon. A 2011 report by construction industry consultants PWC predicts Canada’s construction sector will rise from seventh largest in the world to fifth by 2020.

“Over the next decade, we expect infrastructure to be the fastest growing end-market in Canada and housing to be the slowest,” says the report. The Construction Sector Council predicts Canada will need 319,000 new construction workers by 2020. Unlike housing, road-building is resistant to recession because it is a favourite target for government stimulus spending. If you are not already renting equipment to road-building crews, here are some tips on how you can get in on the action.

A concrete job in the road-building market involves many layers of work from roadside safety and traffic management to breaking up old roads and recycling the concrete and from installing new rebar to repairing bridges and medians. Each job either requires specialized equipment or could be done much more efficiently with it. And for contractors who bid on work outside their normal areas of expertise, renting specialized equipment is one way to make the numbers pencil out. Understanding how to build the right fleet to serve these contractors is key to success in this market.

Remote-controlled demolition machines made by Brokk are an example of unconventional rental equipment that can be just right for certain demolition or construction projects. At sizes as small as two feet wide by 37 inches high, the compact, electric-powered machines are small

enough to move freely in confined spaces, yet powerful enough (5.5 kW up to 45 kW in larger models) to effectively break through concrete and other reinforced materials. They’re used in a wide range of projects and industries, from construction to demolition and other specialty applications.

Take, for example, a road construction or bridge repair project where a contractor might run into several issues that align perfectly with a Brokk’s capabilities. The company might be working in the confined space between the embankment and the underside of a bridge. It could be performing concrete crushing, breaking or digging from dangerous positions such as beneath the bridge or near the edges. Or maybe work needs to be done next to active traffic in a narrow, six-foot lane where manoeuvrability is an issue. In these situations, a mini excavator can put operators in danger because it is too big or not powerful enough. But with its impressive power-to-weight ratio, a Brokk matches up well to the task.

“Contractors may not encounter these circumstances every day, but when they do, it’s a huge benefit to be able to rent a Brokk for a week or two and get the job done in the most efficient, safest way possible,” says Peter Bigwood, vicepresident of sales and marketing at Brokk. “Some jobs shouldn’t be done any other way.”

Other specialized products fit the bill in the concrete, demolition and recycling applications. According to Sean Donaghy, national sales manager at Irock Crushers, “Nearly 100 per cent of

the business that Irock’s dealers are currently doing with the screening and crushing business starts with rental.”

Irock’s RDS-20 unit, a closed-circuit crushing and screening plant, is one of the most common products rented, usually by companies that need to complete asphalt or concrete recycling. Other contractors rent the company’s Wheeled Jaw Crusher-2844 and pair it with a screener sized appropriately to the operation.

Donaghy says rentals of Irock equipment are on the rise and the machines are routinely in use. In fact, one of Irock’s current dealers has 14 machines consistently out on rental jobs. And while the machines occasionally go out to the smaller contractor or road construction crew, they often land in the hands of a quarry owner or recycling operator who wants to try the machines before committing to a purchase.

The same can be said for E-Z Drill, a company whose horizontal concrete drills are designed to meet the strict highway specifications for standard spacing of dowel bars. Drilling these holes by hand with a rotary drill is a long process, not to mention physically demanding and risky.

“For a contractor that lands a job that requires many holes to drill, E-Z Drills are a faster and safer alternative, and they never get tired,” says Randy Stevens, vicepresident of sales at E-Z Drill. “Our drills do the work just as fast and accurately at 8 p.m. as they do at 8 a.m.”

Stevens says dealers and rental centres usually carry E-Z Drill’s single model drills because they are affordable, lightweight and portable (they fit in the back of a pickup truck). The single drills are fully pneumatic and can drill holes from 5/8 inch to 2½ inches in diameter and to depths up to 18 inches.

Purchasing an optimized, specialty product for an atypical project rarely makes fiscal sense, hence the booming rental market for specialized concrete equipment. The short-term benefit for dealers and rental centres is obvious. But the representatives of these three companies agree there’s a long-term play, as well: allowing customers to rent often serves as a solid segue to sales.

E-Z Drill’s program is a great example. The company’s multi-gang drills are generally not readily available through a dealer or specialty rental house, so E-Z Drill periodically leases them to a dealer that, in turn, rents them to customers. End users

no operator required. the brokk 160 is the lighter-weight replacement of the brokk 180 (pictured). t 25-horsepower electric motor and features a reach of 15.8 feet with the included S b202 breaker. the and low profile enough to work in the tightest, most restricted areas.

frequently make use of the rent-to-own program, which gives contractors an incentive to try one of E-Z Drill’s pneumatic drills. Later, they can apply previous rental costs to the purchase of the drill.

“This is a win-win-win situation because of the big demand for used equipment,” Stevens says. “Most of those machines don’t come back to the dealer anyway. Instead, they are purchased at a reduced price since they are used.”

Irock dealers run a similar show with its Rental Purchase Option program, in which 70 per cent of rentals convert to purchases. After the equipment has worked for two or three years, it’s time to sell it, Donaghy says, noting that it usually sells before the end of its third working year.

“Giving customers the flexibility to rent the equipment gives them a feel for the machine and an idea of the impact it has on their production,” Donaghy says. This way, customers who truly need a short-term rental can get their job done, and those interested in investing in a unit can demo the equipment and possibly purchase it at a reduced price.

Bigwood says renting is the perfect solution for contractors on occasional tricky projects. “A lot of rentals go to contractors who already own a Brokk,” says Bigwood. “Sometimes they either need a different size for a job or temporarily need a backup on a bigger project.”

Brokk recently launched a rental program with Creighton Rock Drill, which serves the greater Toronto area. Scott Creighton, CRD marketing co-ordinator, says the B100 in the specialty rental centre’s fleet has been out on rental jobs since the purchase several months ago. “We’ve already seen a dramatic increase of interest and demand in the Brokk,” Creighton says. “We’re looking to keep up with the demand and ideally add another unit in the upcoming months.”

The most common reservations for dealers and rental centres are maintenance and training for their staff and customers. Most road-building equipment manufacturers provide training to pass on to the end user. And while rental can be tough on equipment, working with reputable manufacturers that build durable, reliable products and stand behind them can address that concern.

E-Z Drill is an excellent example. The company’s drills are

relatively easy to maintain just by tightening bolts, putting oil in the oiler and keeping them clean. Certainly, operation can be tricky – it is essential that the controls be used in proper sequence, for example, and operators must know how to set up the drilling level and depth and establish the right pressure. E-Z Drill offers onsite training for its multi-gang units and can offer training on the single drills upon request to demonstrate proper operation to dealers and their salespeople.

Other units require more frequent maintenance. Donaghy notes rental is tough on Irock machines if contractors don’t understand the rules of crushing or screening, or if they don’t perform the necessary daily maintenance. “We have our dealers go over what their customers can and cannot put in the machine, and remind them that daily maintenance is the key to keeping the equipment going,” he says. “Our machines are tough and durable, and training can counterbalance any inexperience.” Irock sends a sales associate or service technician to set up the machine, and teach the personnel proper use. Newer clients get more frequent visits to be sure the equipment is well cared for during a rental job, which can last anywhere from a few weeks to, most often, more than a year.

As for Brokks, Bigwood says while they are unconventional machines, the controls are similar to traditional excavators and other construction equipment. He adds that with some simple training, operating one is really quite straightforward. “As with anything, if an operator doesn’t perform the basics correctly, there will be problems, but we make sure the rental centres know how to train the end users,” Bigwood says. “Brokk machines have a quick learning curve, and most operators take to them natu rally. We love the rental concept because it allows more people to experience the unique capabilities of these versatile machines.” Specialized road construction rentals are just that – special. When a contractor needs an ultra-specific, highly efficient piece of equipment for an out-of-the-ordinary road project or unusually challenging task, there’s opportunity. For dealers or rental centres that fill the void, there’s profit, as well.

for more tech tips, visit www. canadianrentalservice.com > Past Issues

the be St L aid PL an S

As we grow, we need more organization.

Here at the end of my term as national Canadian Rental Association president, I can honestly say that not everything went the way I envisioned it at the start. That is not to say things went poorly – quite the contrary – but many unexpected events and circumstances popped up that got in the way of some things I wanted to do, and made other things happen that I did not plan for, but were positive all the same. In this, my experience as CRA president was a lot like my experience as a rental store owner. Since even the best laid plans usually get altered in the execution, you need just that much better a plan if you are to have any hope of going where you want to go. The larger and more complex the enterprise, the greater the need for careful planning and forethought.

The CRA has recognized this truth and that is why the board has embarked on some rigorous strategic planning to map out our path forward as we continue to grow. We are putting a formal plan in place, complete with goals and targets, that we will refer back to at the start of every meeting and use to guide all of our efforts. As part of this process, we are looking at the best way to structure our head office operations so as to deliver services more efficiently and effectively. Our search for a new managing director will be focused on finding the right person to fit into these needs.

Looking at the association, I see a group that is doing very well and has a tremendous future ahead of it. A recent American Rental Association poll found that 25 per cent of our members participate in at least one CRA event each year. I think that is a good number, but I also think 35 per cent or even higher is achievable. People at the ARA often commented to me during my term on how impressive the Canadian association is in our level of service and participation. Let’s keep that trend going! We certainly have the guys coming along behind me to achieve that. Both Marc Mandin and Dave Mintenko are super smart, energetic guys with the administrative strength we need to really get this organization running well.

Trade show season is around the corner and we are seeing great results in that area as well. We had 40 people signed up for the Canadian hospitality event at the ARA’s Rental Show in Orlando within two days of the registration going live. This event is always popular and this year it looks like it will be bigger and better than ever. The Atlantic show has grown to the point where it is moving to a larger venue in Casino New Brunswick. That is a dramatic reversal for a show that has had some struggles over the years. Part of our strategy for trade shows is to make sure we have educational seminars at all CRA shows going forward.

I would like to recognize the outstanding efforts of our member services co-ordinator, Pascale Lambert, in keeping the Winnipeg office running smoothly while we search for a managing director. I’ve received many comments on her efficiency and responsiveness. Being president of this association has been a great opportunity for personal and professional growth for me, as I think it has been for others who have held the position. Membership in your association is only the beginning – the real return is on participation. I’m proud of the efforts we have made to increase the profile of the rental industry during my term. Just recently, our PR agency placed a story on equipment rental in the National Post. It looks like it is onward and upward for the Canadian Rental Association. CRS

Jeff campbell is co-owner of St. thomas rent-all in St. thomas, ont., and has been a member of the canadian rental association for 34 years.

A trade show for rental store owners, operators, and employees. See what the Exhibitors have new and exciting for 2014! Registration is open to Members and Non-Members owning or employed by a rental store. The 96th Highland Pipers will open the show at 9am Saturday March 15th, 2014. Tradeshow Hours 9am to 3pm!

get

R e C ognized

The ROOTY award panel is looking for well-run rental stores.

The Canadian Rental Mart is Canada’s celebration of the rental industry, and what would a celebration be without a guest of honour?

Every Rental Mart, Canadian Rental Service recognizes a rental operator that exemplifies three key values of our industry: success, innovation and safety. That operator is presented with our Rental Operator Of The Year award on the show floor. They get a handsome plaque (redesigned for 2014!) and a cover story in the magazine. This year, the ROOTY is presented with the generous assistance of Doosan Portable Power Canada.

Why do we do it? This magazine’s mission is to help Canadian rental operators to succeed, and we think the ROOTY does this two ways. First, it is obviously a point of pride to be picked out of all the thousands of rental stores in Canada and held up as an example for everyone else. Having that ROOTY trophy on your counter is something you

can point out to customers as evidence they are dealing with the best. Secondly, letting everyone know about the great efforts our winners put into their businesses serves, we hope, as an example and inspiration for everyone else. Nominating a company for the ROOTY is a simple as going to canadianrentalmart.com and filling out the online form. It is not important to get all the information down on the form - each submission is followed up by your editor and a full brief on the nominees prepared for the judging panel. And do not sweat the details over whether a company meets all the criteria of the award. That is for the judging panel to decide. Basically, any company you feel is well run can be nominated.

M EET THE ju DGES

The ROOTY judges are industry leaders from across Canada. They review the submissions prepared by Canadian Rental Service and decide on a winner by consensus.

DAVE FRASER

Currently regional manager of sales and operations for Hewitt Equipment rentals (The Cat Rental Store ) Maritime provinces, Dave Fraser has 11 years service with Hewitt and is responsible for 10 locations. When Dave joined Hewitt he brought with him a wealth of managerial experience. As a graduate from Saint Marys University with a Bachelor of Commerce in 1982, he has always been in management roles with the first 18 years focused on human resources management. His career path took him from HR manager with Loblaws in the Maritimes to Hershey where he started as HR manager and then moved to the plant manager role in what he likes to refer as the “sweetest job I ever had.” There he was responsible for producing the Canadian Christmas staple Moirs Pot of Gold boxed chocolates. Dave recalls he got a lot of questions from people when he joined Hewitt. “What does a guy who makes candy know about renting equipment?” and of course his answer was, “Nothing but I’ll learn.” Eleven years later Dave figures he has learned a thing or two about the rental industry and is happy to have served several years giving back as he winds up his threeyear term as volunteer director for the CRA Atlantic.

RHONDA PEDERSEN

Rhonda Pedersen is vice president of customer service for Pedersen’s Event Rentals in Burnaby, B.C. She has been in the party and event equipment rental business for 25 years and represents the third generation of Pedersens to run the company, which has been in business since 1949. Ms. Pedersen served as president of the national CRA in 2002 and is currently the Region 10 director for the ARA. Pedersen’s Rentals is a two-time winner of the national CRA Image Award, and Ms. Pedersen has won Region 10 Person of the Year and CRA Rental Person of the Year awards. She has also served on the International Special Events Society board.

KENT SOMERVILLE

Kent Somerville is national sales manager for Doosan Portable Power, responsible for directing sales strategy and driving continued business growth for the

company throughout Canada. Kent has more than 25 years of experience in the rental and construction equipment industries having managed distributor and rental channel relationships in both Canada and the USA. Prior to his time with manufacturers of equipment Kent worked for many years directly in construction equipment rental with both independent and national rental companies. Kent currently resides in Edmonton, Alta., where he spent more than 10 years serving on the Canadian Rental Association Alberta Local board of directors as supplier director.

jEAN-MARC Tu RCOTTE

Jean-Marc Turcotte owns Location Turbo Rentals in Montreal. Jean-Marc has been in the rental industry for 35 years, and rents a comprehensive variety of general use equipment. He won the CRA’s Rental Man of the Year award in 1995, 2000 and 2002, the ARA’s award for Outstanding Record of Achievement in 1990 and twice Quebec Rental Store of the Year. He has served terms as the president of the ALQ and as Quebec director for the national Canadian Rental Association. CRS

RENTAL & CONSTRUCTION PUMPS

BUILT FOR WORK

As a world leader of submersible pumps for the construction and rental market, Tsurumi outlasts the competition in pump

and cost savings.

c ON c RETE

FOu R-STROKE POWER CuTTER

8www.makita.ca

Makita says it has built the world’s first four-stroke power cutters, the EK7651H and EK7651HD. The EK7651H features a 14-inch blade and the EK7651HD includes a one-inch arbor. Both models deliver reduced noise and fuel consumption versus competitive two-stroke models for maximum operator comfort and reduced operational costs. No fuel mixing prevents damage due to improper mixing and eliminates the need to carry separate mixed fuel. Operators need only one gas can.

The cleaner four-stroke engine emissions limit environmental impact and reduce internal carbon buildup. An automatic decompression valve reduces required start-up force by 40 per cent versus competitive two-stroke models. The pressurecompensated carburetor prevents flooding by automatically adjusting to ensure the proper amount of fuel delivery. An advanced five-stage air filtration system provides cleaner air for maximum engine performance. The new Makita cutters are designed for maximum performance and durability on heavyduty jobsites. The reversible cutting arm enables the cutting disc to be side- or centre-mounted for optimal operational versatility in a variety of applications. An angled fuel tank port enables quick and easy fuelling when the power cutter is in the upright position.

I MPROVED ERGONOMICS

8 www.husqvarna.com

The new Husqvarna K 760 is the followup to Husqvarna’s popular power cutter of the same name. Optimized engine performance, enhanced startability and ergonomics are just a few areas of improvement to boost efficiency and profitability. A new cylinder and cooling fin reduce emissions by 15 per cent when compared to the previous model. The machine maintains optimal operating temperatures, making it less sensitive to environmental changes. The digital ignition system facilitates better startability and smoother operation. The low-vibration design significantly reduces the strain on the user. A lighter blade guard made of magnesium assists in better balance and contributes to the overall lower weight. The blade guard is adjustable, making operation and altering cutting positions easier. The reversible blade bushing allows operators to easily switch

between blades with different centre holes. The operator will not be fatigued as quickly due to the low vibrations. A wet cutting kit with a progressive valve significantly increases dust control. The valve makes it easy to set the exact water flow for different applications, which minimizes waste and slurry.

G REAT WEIGHT-TO -POWER RATIO

8 www.alleneng.com

The Allen MSP 455 is a totally new, power steering, mechanical drive riding trowel in the Allen riding trowel line. The powerful gas engine, heavyduty gearboxes and spiders combined with a torque convertor clutch provide great weight-to-horsepower performance for large and small contractors. The raised operator platform and the hydraulic joystick positioning makes this one of the most ergonomically designed riding trowels on the market. MSP 455 standard features include hydraulic power steering with independent manual pitch controls; a 40-horsepower air-cooled Kohler gas engine; two 46-inch diameter, five-blade, non-overlapping rotors with speeds up to 165 RPM; an electric powered spray system for application of retardant; lights; a 12-volt charger and hour meter; a flip-up seat and removable screens for superior accessibility to the engine, torque convertor and driveline.

WORKHORSE PLANER

8 www.generalequip.com

Providing high speed and accurate surface preparation, General Equipment Company’s SP8/GH surface planer is ideal for a wide range of job applications, including milling mis-aligned sidewalks and joints, removing thermo and cold plastic markings and prepping floors for new coating applications. Powered by a five-horsepower Honda fourstroke gasoline engine, the SP8/GH planer is built with a unitized, welded steel plate frame, a full-length hexagon driveshaft and extra-capacity ball bearings. The planer has a maximum cutting depth of 5/8 inches, a cutting width of eight inches and a cutting proximity to a vertical wall of 3 1/4 inches. Cutting depth is adjusted using a screw-type, positive-locking depth selector, and the wheels located behind the drum make it easier to cut through high spots.

Hilti. Outperform.

WEDGE-FREE ACCESSORY

8 www.edcoinc.com

EDCO has created a new generation of its popular concrete floor grinder. The new grinder replaces the traditional wooden wedge system of installing grinder accessories with a faster, customer-friendly, slide-on system. Using only new holding cases, the profitable Dyma-Serts and PCDymaSerts accessories slide onto the new grinders. No tools are required. New grinding and resurfacing accessories are also available. These new two-disc grinders are available with gas and electric power options. EDCO has also invented an exclusive levelling system that allows users to adjust the grinder’s height, use a wide range of accessories and grind from a truly upright, level position. Level grinding, which is quicker, smoother, and easier on the operator, increases accessory life.

NO PRE-MIxING

8 www.nortonconstructionproducts.com

The construction mantra of today is all about getting on and off the jobsite quickly. The all-new lineup of Norton Clipper high-speed saws offers contractors a better option to improve jobsite efficiency. These new saws are designed with the user in mind to not only cut fast and smooth but also provide features that will handle the everyday performance of any jobsite with unrelenting durability and reliability. Clippers are available in two 12- and 14-inch blade capacity models: standard and iLube. ILube is the world’s first patented automatic lubrication system that mixes oil and fuel electronically for maximum efficiency with no pre-mixing. An electronic sensor will indicate a low oil level and adjust the engine to idle to prevent engine damage. All Norton Clipper CP500 series saws are equipped with an electronic carburetor electro-magnetic valve, which eliminates the standard choke and half throttle start. The three-step easy start eliminates the hassle of a choke. Simply turn the switch on, prime the engine, and push the decompression button. A multi-stage air filtration system uses patented twin-air inlets to create an air pulsation that draws fresh air in while pushing hot air away from the engine and releasing it out the back to keep the saw running cool and reduce debris being trapped in the filter. This system extends filter life for less cleaning and replacement. Contractors have less worry about poor starts, wrong fuel mixes, chocking or clogged filters with the Norton Clipper saws.

DuST-FREE GRINDING

8 www.husqvarna.com

Husqvarna’s PG 280 SF is a suitable floor grinder for rental customers who need to grind concrete, mastics and paints. It is small and easy to manoeuvre, yet strong enough to get the job done. The dust guard and vacuum port are designed to create efficient suction of dust. Additional features include an ergonomically designed handlebar that can be folded over the machine to make it more compact and easy to transport. The single grinding plate has multiple diamond tool attachment positions for optimal distribution. The PG 280 SF features a three-horsepower, one-phase motor. A large range of diamond tooling is available for a wide range of applications. The PG 280 SF can be coupled with the DC 1400 vacuum. The DC 1400 is a compact, highly mobile and versatile dust collection unit that eliminates most dust, making the work environment better for the operator and the surrounding area.

SOIL CONDITION ANALYz ER

8 www.multiquip.com

The all new COMPAS compaction analyzing system for the Mikasa MVH306 and MVH406 Series reversible plate compactors is designed to help contractors improve efficiency and maximize productivity, while avoiding costly over-compaction. A series of LED lights indicates the progress made with each machine pass. As soil stiffness changes, lights turn on and guide the operator to either make additional passes or stop because optimum soil conditions have been attained for the specific plate compactor. Mikasa reversible plates feature ergonomically designed handles designed to minimize the vibration transferred to the operator. Removable extension plates allow the plate to be adapted for various trench applications.

THE ONLY THING QUIETER THAN A HATZ SILENT PACK RUNS ON CHEESE.

When competing with Hatz Silent Packs, others start playing cat and mouse games with their quiet stories. Truth is, Hatz Silent Packs are the quietest encapsulated engines in the industry. They even eliminate unwanted vibration with an additional balancer shaft making them ideal for residential areas, school and hospital zones…especially during early morning use. You’ll also like their low-installed dimensions and optimized cooling air flow. So if you want an engine that’s quiet as those little cheese-eaters, go with the Silent Pack or you could end up with a mouse that roars!

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