CRS - December 2014

Page 1


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We Modeled Our New Water-Cooled Engine After The Sleekest Machine In The World.

New H50… Lighter, More Powerful, More Fuel E cient, No DPF

Why hang a hippo on your equipment when it’ll run loads lighter with our sleek new turbo, intercooled cat called the H50? This 4-cylinder, 74 hp engine is 200 pounds lighter than others and way more compact. It’s also the first industrial diesel engine to have a Bosch Off-Highway common rail fuel injection system for amazing power and fuel efficiency in a wide load and speed range. And it falls below Tier IV Final and Euro Stage IIIB limits with no particulate filter. Run with our new H50 and your equipment will be the cat’s meow!

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4

EDITORIAL

Oil’s well in Alberta...for now 20

TECH TIPS

Tips from Cavalier Industries on how to set up different air control systems.

12 WITH A LITTLE HELP

Incoming CRA president Dave Mintenko credits loyal friends for his longevity in the business.

INDUSTRY NEWS

The circus comes to town, new office for the CRA, Gord Cooper passes, WesternOne buys Enerbuilt and more... 6

24 RENTAL SHOW PREVIEW

NFL star Peyton Manning will bring some extra dazzle to the ARA’s New Orleans expo.

26 PRESIDENT’S MESSAGE

18

LEGALESE

Assessing court costs is an ongoing process. by Deryk Coward

Rack it and track it with innovative software made just for you.

Rental operators just have to help when they see a need. by Marc Mandin 30 M & A MATTERS

The cash you need may be available in exchange for control. by Mark Borkowski

Shifting sands

As nice as it has been to see prices at the gas pumps below $1.20 in Ontario for the first time in a long time, I think we must spare a thought for our friends in Alberta. The International Energy Agency is warning if prices for crude drop below $80 a barrel, around three per cent of the world’s oil projects will become unprofitable. Most of those would be in Norway, Brazil, Angola...and Canada.

Alberta has been riding an incredible wave of investment and activity ever since oil went over $100 a barrel in 2007 and has bounced around that mark ever since. The oil sands have been particularly beneficial to the western rental industry, with their seemingly endless appetite for portable everything: power, light, toilets, waste disposal – you name it. The resulting boom has transformed the economies of Alberta and Saskatchewan and tilted the whole economic landscape of Canada away from Ontario and Quebec and toward the West. In our sector, we are seeing emerging dynasties as the aggressive and well-leveraged are snapping up smaller competitors as fast as they can and growing their businesses at triple-digit paces just to keep up with demand.

Any story of such aggressive growth is going to end with a slowdown and correction. Some relief from high energy prices would certainly be welcome here, where manufacturing has

ON THE WEB:

CRA national office open house

National Canadian Rental Association managing director, Nathalie McGregor and assistant Jenna Lanksy welcomed visitors to the new office near Hamilton, Ont., on Oct. 16. You can see the photos on Facebook/ CanadianRentalService.

Show dates live online

Dates and locations for next spring’s Canadian rental shows have been released and are easy to find in the Canadian Rental Service website Events section.

retreated since the last recession and taken a lot of wellpaying jobs with it. But the strengthening American economy is going to perk Ontario and Quebec up. I’d rather see strong demand prop oil prices up to where the oil sands are still viable and leave the West with a gentle slowdown instead of a crash. This country needs its eggs in more than one regional basket, and a roaring oil-powered engine in Alberta helps us all. Some enterprising Ontario rental operators and suppliers have been able to turn Alberta’s boom into an opportunity of their own. Look at Mississauga, Ont.’s, L.M. Temperature Control, which is offering commercial drying services in the oil fields. I was chatting with Neil Courneya of London, Ont.-based Hy-Cor the other day and he was telling me about exhibiting at the Oil Sands Trade Show back in September. Maybe more of us should be going where the action is instead of waiting for it to come to us.

Speaking of going where the action is, are your plans in place to attend your regional trade show this season? It is difficult to overstate the importance of your support for these shows. Maybe you aren’t shopping for anything right at that moment and maybe you aren’t sure you are going to see anything new, but taking a couple hours to pop in and cruise the show floor is always a good idea if only to ensure that the show will be there again for when you do need and want it. I’ve worked in industries where the shows weakened and went away, and I can assure you that people in those sectors were not happy about it. Thankfully, this is not a risk for the Canadian Rental Association’s shows at present, but I encourage everyone to do their bit and come on out to keep the events strong and lively.

When you a get a chance, please take a look at our Twitter feed. Twitter is slowly but surely getting stronger as a source for industry news. It is great to be able to browse a list of relevant, quick-hit headlines and choose whether or not to read more.

Holiday greetings to everyone! Send me a photo from your store’s holiday party and I’ll make an album on the Canadian Rental Service Facebook page. CRS

GN7100E

GN7100E

•  389cc Honda GX390 •  7100 Max Watt Output

Electric Start

Run Time 7.0 hours (@ rated load)

Fuel Capacity 25L

Auto Voltage Regulator •  Receptacles: 2 x 120V 20A Duplex (GFCI) 1 x 120V 20A Twistlock 1 x 240V 20A Twistlock

GN5200

•  270cc Honda GX270

•  5200 Max Watt Output •  Manual Recoil Start •  Run Time 9.5 hours (@ rated load) •  Fuel Capacity 25L •  Receptacles: 2 x 120V 20A Duplex (GFCI) 1 x 120V 20A Twistlock 1 x 240V 20A Twistlock

IG2000 INVERTER

•  79cc Gasoline Engine •  2000 Max Watt Output •  Recoil Start •  Run Time 7.0 hours (@ rated load) •  Fuel Capacity 4L

Noise Level @ 7M: 60dB at 50% Load

The rental industry lost a true original when Gord Cooper passed away suddenly on Aug. 22 at the age of 72. Cooper showed great entrepreneurial spirit right from the start, launching G. Cooper Equipment Rentals in his garage in 1972 with a wife and three young kids at home. Cooper Equipment Rentals has evolved and grown tremendously the Toronto area and carrying 17 categories of equipment for general contractors, landscapers, road builders and snow removal. Cooper was very proud of the company he started and built, and greatly enjoyed seeing the company and its people driving forward to achieve their full potential. Still cracking off-colour jokes and delivering his famous one-liners such as, “If I had known I was going to live this long, I would have taken better care of myself,” Cooper died on the 11th hole of his golf course on a beautiful sunny Friday afternoon. He was with

WESTERNONE ACQUIRES ENERBUILT

Dozens of friends and clients of L.M. Temperature Control converged on the Mississauga, Ont., rental operator on Oct. 9 to help kick off the launch of its new commercial drying division. The event had a circus theme, with tents, popcorn and performers in circus garb. Tasty food and beverages were plentiful and interested attendees got a chance to look around LMTC’s 20,000-squarefoot warehouse and take in the impressive array of equipment on display. Iron in the yard included low-grain refrigerant dehumidifiers, dessicant dehumidifiers, axial and turbo air movers and Hepa air scrubbers. Many generators, light towers, fan and other common rental offerings were also on hand. The new drying division is emphasizing its expertise in helping clients arrive at solutions for tough environmental problems involving flooding, water damage from fire-fighting, mould remediation, poor interior humidity control and other water-related issues facing industrial and commercial customers. They are offering 24-hour emergency service. Lawrence Lum has partnered with LMTC owner Luis Salazar to head the division. “Commercial drying is different because of the emergency aspect and the need to really understand your customers’ problem,” said Lum at the event. “We have invested in a really

lifts. WesternOne expects the Enerbuilt acquisition to be immediately accretive to WesternOne’s shareholders based on Enerbuilt’s historical adjusted EBITDA of approximately $4 million. Canada under the WIS platform includes the recently launched locations in Fort McMurray, Alta., and Terrace, B.C. Up to $4 million of the additional WIS capital will be used towards growing the fleet of flameless heaters subsequent to the Enerbuilt acquisition.

Salazar sees strong growth ahead for the new division. “We have only gotten started but we have already been out as far as Thunder Bay and to many locations in the north with our drying service,” he said. “We are ready to go west, eastern Canada, anywhere it is needed. Things are going very well.”

One of the attendees at the event was Steven Wolfer, senior environmental manager for York Environmental Solutions, one of Canada’s largest environmental remediation firms and a sponsor of the event. Wolfer couldn’t say enough about the help he and his teams have received from LMTC. “It is a lot easier for me to make a phone call and have LMTC show up with all the right equipment than have to buy and maintain everything myself,” he explained. “They know what is needed for different situations and the equipment is always in good shape and ready to go.” Wolfer has one story about a metal stamping plant that was flooded when a fire set off the sprinkler system. With LMTC’s help, Wolfer was able to have the delicate electronics in the machinery dried out so fast that the shop only missed a shift and a half. Even the paper documents in the office were rescued.

Primed for productivity and protected from back to front, M-Series loaders from Bobcat handle difficult jobs and stand up to tough renters. For starters, the rear bumper protects the tailgate from obstacles on the jobsite. Recessed rear lighting minimizes damage to tail lights. Protected quick couplers, mounted directly into the front plate of the lift arm, have no exposed hoses to damage. A guard that extends beyond the couplers offers even more protection. The removable hose guide makes it simple to correctly route hydraulic hoses, minimizing attachment wear and tear. Plus, easy-to-find and easy-to-use machine tie-downs make trailering quick and easy. You’d expect nothing less from such an easy-to-rent machine. Find out more at Bobcat.com/Value2

INDUSTRY NEWS

TAKEUCHI

APPOINTS NEW EASTERN CANADA DEALER REP

Takeuchi-US has appointed Charmaine Greer to the position of regional business manager for the eastern Canada region. Charmaine will be responsible for all dealer relations and activity in her assigned region, including dealer recruitment, development and management, assistance with inventories, forecasts, sales plans and assistance for both new and existing Takeuchi dealers in developing their business in the eastern Canadian market. With over 20 years of sales experience, Charmaine comes to Takeuchi with great knowledge of the construction equipment industry as well as the Canadian market.

“We are very excited to have Charmaine represent Takeuchi in the eastern Canadian provinces, where we know she will do an exceptional job,” said Kim Robinson, director of sales for Takeuchi-US. “Charmaine is a dedicated and driven individual who has had a great amount of success wherever she has gone. Bringing her onboard was an easy decision for us with her extensive knowledge of the construction industry as well as her many years of sales experience.”

In other Takeuchi news, Takeuchi-US has announced Hants Equipment of Windsor, N.S., is its newest dealer in Canada. Hants Equipment will carry the full line of Takeuchi compact earthmoving equipment, including compact track loaders, compact wheel loaders, compact excavators and skid steer loaders. Hants, which has been family owned and operated since 1982, serves the farming, forest, and construction industry throughout the entire Nova Scotia area.

“We believe that Takeuchi has the best product available for what they do,” said Jason Hart, sales manager for Harts Equipment. “We pride ourselves in bringing our customers the most groundbreaking products. Takeuchi is a highly reputable brand and our customers are looking forward to using their equipment out on the jobsite.”

“Hants Equipment has a reputation for being a trustworthy and knowledgeable dealer in the Nova Scotia area,” said Robinson. “Being a family-owned company, they have a lot invested in their operation and take everything they do seriously, which starts by providing their customers with top-notch equipment and service. We are excited to begin our partnership with them, and know it’s the start of a great, long-lasting relationship.”

JOHNSON TAKES CANADA

Grainger has announced it has named Dean Johnson as president of its Canadian business, Acklands-Grainger. Johnson assumes this role from Eric Nowlin who elected to return to California with his family at the end of his expat assignment.

“We thank Eric for his leadership and years of service to Grainger, and we wish him well,” said Court Carruthers, senior vice president and group president, Americas. “We are excited to welcome Dean to Grainger. He is an exceptional leader with a proven track record of success. He has significant experience managing large organizations throughout Canada, and a strong focus on customer service and employee engagement.”

Johnson joins Acklands-Grainger from Sodexo Canada, where he served as president and CEO, responsible for strategy, performance and management. Prior to that, he was senior vice president of integrated facilities management with Sodexo Canada. Before joining Sodexo, Johnson served as president of Crothall Services Group and president of Trammell Crow Company Canada. He began his career with TransCanada Pipelines. Johnson serves as a board member for the Canadian Council for Aboriginal Business and the Catalyst Canada Advisory Board. In addition, he recently earned the distinction as a 2014 Catalyst Canada Honours Champion for his transformational leadership and commitment to advancing women within Sodexo Canada. He holds a bachelor’s degree in mechanical engineering, as well as a business management certificate from the University of Calgary. Johnson started Oct. 1, based in Toronto, reporting to Carruthers.

CRA OPENS NEW NATIONAL OFFICE

It was a merry crowd that dropped by the Canadian Rental Association national head office on Oct. 15 to see the new lair of Nathalie McGregor, executive manager, and Jenna Lansky, office assistant administrator, in Stoney Creek, Ont. Members enjoyed some beverages and finger food, then removed to nearby Grimsby, Ont., for a nice dinner and some updates from Ontario CRA president, Paul Potvin (White’s Location Equipment Supply). The new office is located just outside Hamilton, Ont., in a modern industrial office complex right next to major highways connecting to Toronto and the rest of southern Ontario. The office includes a special “member’s area” where any CRA member can put a piece of their equipment or party inventory to show visitors what is available from Canadian rental stores. The space is presently occupied by a very attractive table setting by Absolute Tent and Event Services.

INDUSTRY NEWS

CHANGE HERTZ

Hertz Global Holdings has announced that Mark Frissora has stepped down for personal reasons as the company’s chairman and CEO. The Hertz board of directors has appointed Brian P. MacDonald president and CEO of Hertz Equipment Rental Corporation (HERC), to serve as interim CEO of Hertz. In addition, Linda Fayne Levinson, independent lead director of the Hertz board, has been appointed independent non-executive chair of the Board. The Hertz Board has initiated a search process to identify a permanent CEO. The search process will be led by the board’s Nominating and Governance Committee, which consists solely of independent directors, with the assistance of an executive search firm. Internal and external candidates will be considered.

Levinson commented, “During Mark’s tenure, Hertz has transformed from a single on-airport car rental brand to a world leading car rental company with a portfolio of brands that reach multiple consumer and business segments both on- and off-airport. With the acquisition of Donlen, not only did he bring the company into fleet leasing, but acquired important technology that gives both leasing and car rental a competitive advantage. We appreciate his strong commitment to Hertz.”

Levinson continued, “We are fortunate to have a proven leader of Brian’s calibre and experience to step into the CEO role on an interim basis while the board conducts its search process. Since joining the company, he has hit the ground running. He is a hands-on leader and we know that he will be actively leading the company forward, executing our strategic imperatives during this period. Brian has the board’s full support to execute the changes needed to drive shareholder value. We are confident that Brian’s abilities and experience at Hertz and elsewhere, together with the talent of the current management

SINGING FOR HIS SUPPER

team, will ensure a smooth leadership transition for the benefit of all our stakeholders.”

MacDonald brings a strong record to Hertz, having successfully led major corporate turnarounds at other companies, including Sunoco and Isuzu Motors. He also brings significant finance and accounting experience in his prior executive role at Dell as Chair of the Audit Committee and as a former director and member of the Audit Committee of the board of directors at Ally Financial, where he was appointed as a directordesignee by the U.S. Treasury Department.

MacDonald commented, “I am honored to take on the role of interim CEO during this important time for our company. Hertz is a great business, and I look forward to working closely with the board, senior leadership team and our dedicated and hard-working employees as we build an even stronger future for Hertz.”

Levinson concluded, “The board, and all of us at Hertz, are focused on improving our recent performance. We are addressing our challenges head-on and are confident that the actions underway will enable us to move the company forward with great success. Hertz has a strong foundation in place, and we have a clear strategic direction that we believe will create significant additional value for Hertz shareholders. We are committed to ensuring that the company fully capitalizes on these strengths, and we look forward to continuing our dialogue with shareholders as we execute on our plans.”

The company remains focused on continuing to run its business and is committed to executing its strategic priorities, including continuing to advance the planned separation of the company’s equipment rental business into a separate, publicly traded company; further integrating and gaining the synergies of Dollar Thrifty; expanding Hertz’s off-airport footprint; and building on the company’s success with Donlen leasing.

Linamar Corporation’s Skyjack division reports that area sales manager, Kevin Fox, sung his way into a sale – literally. The singer/songwriter was challenged to sing to a crowd of 200 at the British Open golf tournament, with the offer to buy an SJ 63AJ in return. After a three-song sing-along, the purchase order was signed there and then. The challenge came from Ben James, owner of U.K.-based 1UP Platforms and a long-term customer of Skyjack.

“I first sang Happy Birthday, but Ben deemed it to be cheating, so I sang two more songs, including Hotel California, at which point the crowd started to join in,” said Kevin. “Surely the deal should have been one sale per song?”

The Skyjack articulating boom was personalized to commemorate the unique sale with the caption: “Kevin Fox, Singer/ Songwriter, Friend to the Stars.” A native of County Durham in the U.K., Fox started his music career playing in local bands before emigrating to Canada in 1976 where he continued to play in bands in the Toronto area. Winner of the Toronto Star Search with a recording contract awarded, he found himself playing at large music festivals, which brought him into contact with major U.S. and Canadian music stars. As a songwriter, Fox has had a number of his songs recorded by country music star Ronnie Prophet, with one song in particular reaching number five in the country music charts and nominated Song of the Year. Kevin joined Ronnie to play at Mervyn Conns International Festival of Country Music at Wembley Stadium in the U.K., which was host to some of the biggest names in country music. Fox is no stranger to performing to a crowd, which helped no end for the on-the-spot sing-along at the Royal Liverpool Golf Club.

The new Ditch Witch® SK750 and SK755 are built to outperform on any jobsite. Both models feature a high-drive track system along with an enhanced operator station, delivering superior performance through increased ground clearance, more lift capacity, faster ground speed, longer track life, and more operator comfort. And these new SK mini skid steers send more

WITH A LITTLE HELP

Mintenko credits strong support for his success.

If there’s one way to celebrate becoming the new president of the Canadian Rental Association, travelling to New Orleans for Mardi Gras is not a bad option. To be fair, the actual Mardi Gras falls a few days before 2015’s American Rental Association trade show in February, but the prospect of Mardi Gras and the convention aligning gives Dave Mintenko pause.

“That would not be pretty,” he laughs. Mintenko, the current vice-president of the CRA, will become president in a few months during the depths of a Winnipeg winter. Mardi Gras or not, New Orleans will offer a pleasant break from the February prairie cold. The title is also a nice way to cap off Mintenko’s 40th anniversary in the rental business.

Canadian Rental Service spoke to Mintenko back in September, when the weather was still fine. He was at the Manitoba Hertz headquarters on a busy Monday morning, just off the corner of Waverly and McGillivray, alongside what might be called Rental Row – a light-industrial area where competitors like Battlefield and C & T Rentals also have locations nearby. He says it’s not been a bad year, though a couple of major projects in the city had wrapped up, such as the Investors Group Field stadium (home of the Winnipeg Blue Bombers), and the construction of several big box stores. Some of the city’s larger projects, like the downtown MTS Centre and the Canadian Museum for Human Rights, are captured in a 100-foot-long mural on the north side of the Hertz building, along with staff intertwined into the mural.

Mintenko is currently the senior branch manager of Hertz’s two Manitoba rental locations, which means he oversees both the Winnipeg and Brandon locations. There’s a staff of 19 in Winnipeg and six in Brandon. Mintenko has been involved in the rental business for four decades now. He entered

into rentals after graduating from Churchill High School and after spending a single day employed full-time in the auto parts sector.

“I worked for a company called Princess Auto & Machinery for a couple summers while in high school, which my dad secured for me as he worked there as well,” says Mintenko. “And then I was going to start there full time after graduating. The first day on the job another co-worker and I were given the task of assembling small gas arc welders. We were supposed to put out about 10 or 12 units a day. By one o’clock in the afternoon we finally had the first one complete. I went to start it, wrapped my arm around the pulley, and I was on compensation for two weeks. While [I was] on compensation, my brother-in-law, who was the manager of Wyatt Rentals at the time, needed a person to work the counter and my career in rentals began at that point”

Through the years, Mintenko gradually grew into the role of rental manager. Wyatt Rentals had been Wyatt Construction at one point. It became Wyatt Rentals in the early 60s, serving mostly general construction contractors and homeowners. His experience with a mom-andpop organization like Wyatt Rentals informs how he approaches business today, he says. He frequently uses the word “grassroots.”

“The people that I worked with, we had people of all cultures and backgrounds,” says Mintenko. “We would hire these individuals and provide training through schooling, manufacturers, and on the job through other

Mintenko’s Hertz location serves Winnipeg and the rest of Manitoba. His building includes approximately 2,240 square feet of office, and showroom space with a parts department, as well as a large service, shipping and receiving area on 4.5 acres of land

experienced co-workers. These people proceeded, as I did, to make the job into a career.”

Wyatt Rentals, for a time, was located in an odd Winnipeg location on south Donald Street, across the river from downtown Winnipeg, where residential, light industrial and commercial zones all merge with the railroad, Winnipeg’s two great rivers and the infamous area known as Confusion Corner. “It used to be quite the interesting time,” said Mintenko. “On those rush-hour afternoons, we’d see the truckers pull out and hear the brakes squealing and tend to say a prayer or two for them! It was a tight, tight footprint.”

“I used to be on call and there were some interesting times. Those days provided some excitement. One of the more nervous ones was after hours in the evening when a group of kids lit a fire in the back lane and in behind us was Skills Unlimited, a woodworking shop. So, the kids started a fire right

around there and it started into our yard and it’s lucky it didn’t hit our gas tanks, because it’s propane and it would have been one big boom. It was very fortunate that a bus driver spotted the fire in its early stages as it was spreading towards our fuel pumps and propane dock. And we had Northern Paint on one side – it could have been a big fireball.”

Mintenko, in some ways, is still with Wyatt. Wyatt was purchased by Certified Rentals in the late 1990s, which, in turn, was purchased by Hertz about a year later. And the Wyatt connection is even greater than that: Mintenko estimates that many of the people that he worked with at Wyatt are still at Hertz.

“I’d say 70 per cent of the people within Manitoba are still with us today. Averaging 30 years, of experience –incredible.”

As part of his duties, Mintenko also spends some time commuting to

the Hertz Brandon location which is approximately a 2 ½ hour drive. “I would say definitely once every two weeks,” says Mintenko. “And I’ll spend anywhere from one to three days there, depending. We have some good projects: a large shutdown at the Koch Fertilizer Plant, some manufacturing, food processing plants, the farming sector and oil and gas are all prevalent in the area.”

Mintenko is, like many a prairie boy, of eastern European background: Ukrainian on his mother’s side, Romanian on his father’s (his surname, at one time, ended in the Romanian suffix “cu”). He was actually born in the northwest Ontario town of Emo, which lies between Rainy River and Fort Frances in Canadian Shield country – a town with a current population of 1,200 and home to the Emo Walleye Classic. The family moved around for a bit before eventually settling in Winnipeg. Mintenko and his wife Joy have

two kids, Rob and Christine, who work as a dentist and in provincial government human resources, respectively. Rob’s got a bit of an entrepreneurial streak; he currently has a hand in a pest control company in the southern United States, something he’s been doing for a couple of years. They have made both parents very proud of their accomplishments and their work ethics. The couple has recently downsized, purchasing a condo in the area, about a three-minute drive away from work. Dave jokes that he has no idea of what his wife purged in preparation for the move.

The most significant move of his life, though, came in the late 1990s. Mintenko went to work for Hertz in Regina for what turned out to be an almost decade-long stint. “I grew up all my life in Winnipeg, except for a nine-year stint in Regina where I was running the Hertz Regina branch there,” says Mintenko. “And we left our kids there; so, absolutely, Saskatchewan still holds a piece of my heart.”

“It was the best experience I’ve ever had in my life,” he says of Regina. “They are salt-of-the-earth people. A part of my heart is still there because of my kids, but also just people through work. That’s part of the thing; some of the people came up through the ranks when I was there, as with Wyatt. That’s the rewarding part – seeing people I’ve hired or been co-workers with over the years that have made rentals into a career. ”

Mintenko says that part of the Manitoba-Saskatchewan

adjustment was more than just getting used to a new local football team. It was the change in the type of rental business he was conducting. In Winnipeg, the business was more of a general construction and homeowner crowd. In Regina, the work was with more of an industrial clientele. “Truly, it’s one of the best experiences I’ve ever had, though. It was tough leaving but at the time there were some personal reasons we came back. There was family —my wife, her parents weren’t that well. The opportunity to come back to people I worked with for 25 years previously was sweet. It was great of the people in the Hertz organization at that time to support me in my move back to Winnipeg.”

But like his career in rentals, his position in the CRA didn’t just come overnight either. He’s been involved at the local and national level for years. He estimates that he’s been involved with the CRA for between 25 and 30 years. Mintenko already has an idea of what he would like to address as president. “I think probably our greatest challenge always is, number one, obtaining new members, keeping your member base and succession with the CRA and the boards. Succession is my biggest fear as I see the baby boomers heading off into the sunset sooner then later. When I speak on a local level, just in my own office and my own organization, my biggest fear is that these guys are going to leave before I am.” When asked what he thinks is going to make a difference, he points to new CRA managing director, Natalie McGregor. “She’s got some

great ideas about marketing, using our website. We’ve got a new strategic plan that’s just been put into place in the last year and I think following that plan is going to certainly help enhance membership and attract people that want to be part of our organization and sit on our boards and get involved. I really believe that strategic plan.”

“In the last year, there’s been big changes, with our new managing director and the move of the head office out of Winnipeg to Stoney Creek. Nathalie has brought a sense of professionalism that was missing in our organization. I think she’s going to take us to some new heights, some exciting times coming. We went through I guess you could call it turmoil and change. There’s always stuff in change, but I think this is definitely change for the better. And that’s not knocking any predecessors, she’s just a very smart cookie.”

In terms of how the CRA has changed over the years, Mintenko says that there is simply much more structure than there’d ever been before. “Way back when, you’d go to the local meetings where you’d have five guys sitting around and everyone would have their position and the next year you’d switch chairs. Just to see where it was and where it’s gone to is pretty phenomenal. It’s really turned into ... well, it’s truly a business. Again, this is not knocking the predecessors – they were the pioneers! Seeing all the people involved now and all the people I’ve met. Probably the number one thing for me is the networking over the years. I’ve met some incredible

Achieve the perfect finish.

people over the years. Some really big craniums in people like Marc Mandin, Jeff Campbell, Paul Kenyon, Wayne Beckett, Bobcat Brad, Doron Broadfoot, Paul Dorion – the list goes on and on. Big shoes to fill. It’s been terrific that way. Now you’ve got set directors from each province, with the women are on the rise, that represent the national board. You’ve got the vice-presidents, presidents, incoming presidents, chairman of the board. The structure is just totally very much more professional.”

Mintenko’s other upcoming challenge this year will be to balance Hertz business and CRA business. But he says that Hertz is fully on board with his new title, and the duties that will accompany it.

“My immediate boss definitely has shown full support for it. Obviously, in taking on the president’s position, you go to them and talk to them. There is commitment. There are five or six trade shows along with board meetings and that takes time away from your business, but they’ve shown support right through.”

So, after 40 years in the business, rather than mooning over a new gold watch, Mintenko has decided to embrace a new challenge with the presidency of the CRA. After a successful career in the rental business, he says he’s figured out the one big secret. “I always say it’s not rocket science. All I’ve done to make my career successful is to surround myself with smarter people. And so far it’s worked.”

CRS

Husqvarna’s
PG 450
PG 280

Courting cost

Everyone is concerned about the costs associated with hiring a lawyer. Choosing to pursue or defend a lawsuit comes at a cost and questions will naturally arise as to lawyer fees, disbursements and costs which will be associated with court proceedings. Knowing the implications of cost awards and the amount which you can possibly recover from your adversary are critical to your decision whether to retain legal counsel.

When a matter is brought before the court, the judge has full discretion to award court costs to either party. “Court costs” refers to the amount one party to the litigation may be ordered to pay to another party. It is not the same as the actual costs paid by the parties to their lawyers.

In most Canadian jurisdictions, whether to award any costs and the amount awarded remains in the discretion of the court. Unless there are extraordinary circumstances involved, costs are usually assessed in accordance with a schedule known as a tariff.

It is important to note that a successful party will almost never achieve a complete recovery of the actual costs associated with any particular case. The tariff of costs in Manitoba, for example, usually represents about 25 per cent of the actual costs of a litigant. In practical terms, that could mean that you spend $30,000 on actual legal fees, taxes and disbursements and obtain a cost award from the losing party of $7,500. It still cost you the net sum of $22,500, disregarding any monetary award you may have won in the suit.

An additional concern is that even if you are awarded court costs, you must still collect from the opposing party. Should that person or business go bankrupt or be insolvent, it will be impossible for you to collect on your judgment, so the cost award will be rendered meaningless. For smaller matters, there are two good ways to avoid paying excessive legal fees and/or court costs. One is to try and reach a settlement with the other side, and the second is to bring your matter to Small Claims Court.

When retaining a lawyer you should consider the total cost, including the amount you will

likely receive, net of fees and court costs; the downside if you lose; and whether your lawyer will take the case on a contingency or percentage basis. In some jurisdictions, lawyers are not allowed to take cases on a percentage basis. For smaller cases, this is often the preferred route, if possible. Contingency fees are good, from a client’s perspective, in that they limit your downside. If nothing is collected, then there is generally no legal fee. On the other hand, depending upon the rate negotiated with the lawyer, it can really limit your upside. If you succeed in collecting, your lawyer is going to take a significant portion of the winnings. Some factors which go into the percentage rate which a lawyer will charge you are the complexity of the case, the anticipated time it will take, the strength of your case and the amounts involved. If, for example, you have a $20,000 case which is very weak and will take a long time to complete, the percentage you will need to pay a lawyer to invest his or her time and energy into the case would be very high. If, on the other hand, you have a great case for $100,000 that is extremely strong and the timing is short, your lawyer should be prepared to accept a lower percentage. If you are paying your lawyer on a traditional time-spent basis, my recommendation is that you insist on regular monthly or bi-monthly billing cycles so that there are no surprises. Generally speaking, litigation is about evaluating a case and constantly re-evaluating a case as circumstances change and the case evolves. For example, if you initially were to retain counsel on an hourly basis and two months into the case you discover that your adversary may not have funds to pay any potential judgment in your favour, you may wish to cut your losses and end the litigation. The most important thing is that you have a clear understanding of the nature of the financial arrangement between you and your lawyer. Everything should be documented in writing, even if it’s a simple thing like an email. Remember that lawyers want your business and that usually things are negotiable – even their fees! CRS

THE FAQ ON IAQ

Indoor air quality matters to your customers.

Controlling indoor air quality during construction can dramatically increase project efficiency, while delivering the highest quality finished product to the building owner. The fact is, there are existing codes and guidelines for construction projects that provide recommendations for the air quality environment during construction. The Canada Green Building Council makes the following recommendations for installations:

LEFT, OPPOSITE: These site layouts show the difference between two indoor air quality solutions. On the left is a typical layout for heating a building interior. On the right, a dehumidification setup.

• Architectural woodwork: relative humidity 43-70 per cent

• Gypsum board: 13 to 21 C, relative humidity under 55 per cent

• Resilient rubber sheet flooring: over 21 C, relative humidity under 75 per cent

• Resilient sheet safety flooring: over 20 C, relative humidity under 75 per cent

• Resilient strip flooring: 21 C or higher, relative humidity under 75 per cent

• Resilient base: over 20 C, relative humidity per manufacturer’s requirements

• Epoxy seamless flooring: over 20 C, relative humidity under 75 per cent

• Carpet tile: temperature per manufacturer’s requirements, relative humidity under 75 per cent

The requirements of modern construction and industrial processes, as well as more stringent indoor air quality standards, have resulted

in an increased demand for effective control of both industrial and commercial indoor spaces. ASHRAE Standard 62-1989, for instance, states, “Relative humidity in habitable spaces preferably should be maintained between 30 and 60 per cent to minimize growth of allergenic and pathogenic organisms.” (Section 5.11).

There are high-efficiency temporary air-quality systems available on the market that offer numerous advantages when it comes to controlling temperature, humidity, and air quality. A specific, tailored strategy needs to be established based on the customer’s project details and location. The benchmark for the IAQ control goals should be based on the specifications of the future building’s permanent systems. The temporary system’s design should be effective enough to maintain constant control, with minimal fluctuations. When choosing air-quality equipment, look for a supplier with

real life experiences and testing that translates into techniques that are field-proven with data to support their value in the field. For instance, at Cavalier, we have documented proof that we have improved product quality by means of reducing casework and millwork rejected from construction sites and increased schedule efficiency by reducing drying times for drywall taping and other curing products, as well as mitigating shrinkage and expansion problems for drywall and flooring. From staff productivity to air quality after owner occupancy, all areas of the project benefit from improved site air quality.

We have outlined several techniques that have been tested and proven successful with the recent completion of multiple test pilot projects. In each case, optimal curing environments ensured the construction schedule remained intact, building deficiencies were very low and staff productivity was increased. For temperature control we recommend an indirect-fired heating system using air-to-air or glycol and cooling systems using a chiller or an air-cooled industrial system. Dehumidification requires refrigerant or desiccant systems, and for humidification you should prefer high-pressure misting systems or steam. To improve air quality, HEPA filter the air using HEPA filter ducts with construction air barriers and HEPA filter boxes.

Make sure the equipment you select provides real solutions to all of the above areas. Remember, requirements can vary dramatically by region. The IAQ strategy for Vancouver is entirely different from Toronto. The fact is, if you review regional weather history across Canada, you won’t find a single area that is room temperature and 35 to 50 per cent humidity at any time of the year. Your air-quality equipment provider should be able to implement a program at your regional level to control all of these factors.

By controlling the construction environment in line with the permanent building specification, the building materials cure in a proper manner. Changes in humidity and temperature during the curing process result in expansion and contraction of building materials, which can cause deficiencies in the building’s finish. High-end finishes such as millwork, flooring and wood cabinetry can be highly affected by temperature and humidity swings. Joint compound drying time can vary from as long as three to five days at high humidity and low temperature, to as fast as two hours at lower humidity and higher temperatures.

Obviously, the difference between five days and two hours is going to have a significant impact on your customer’s bottom line. If you can illustrate the impact of IAQ on your customer’s project, you could talk yourself into a lucrative rental.

Hospitals have documented that infection control during the construction process is necessary to reduce the risk of infection to patients after the project is complete. HEPA filters can be used to create negative air barriers in line with CSA Z319 specifications, either to protect active areas of the hospitals that need to be re-modeled, or to filter exhaust air to hospital add-ons. An excellent practice with HEPA filters is to attach them to duct work during the entire construction process.

Because the air is filtered to 99.997 per cent, there is no risk of contamination. Because the system circulates filtered air, the amount of time for duct cleaning at the end of the project is drastically reduced. Air distribution throughout the structure is also improved as filtered air is moved through the permanent ducting system.

It should be noted that forced mechanical ventilation has positive effects on IAQ. By forcing a portion of outside air your customer can maintain a positive pressure within the control area. This translates into increased surface temperatures, high air quality, and better air movement within the structure. However, only a portion of outside air should be used: one to two air changes per hour.

Cavalier Industries has developed significant expertise in IAQ over numerous projects. To get help engineering an IAQ project for your customer, go to cavalierind.com and open our IAQ white paper in the Applications section. Fill out the worksheet and submit - one of our engineers will be in touch.

Talk to your contractor customers about indoor air quality when they come in to rent other equipment. You could find additional opportunities, and your customers will appreciate the benefit to their projects. CRS

Charity Auction and Reception. Those between the ages of 18 and 40 are invited to attend the Young Professionals Network reception.

The chance to win $2,500 –and more. ARA members will be receiving a special memento in the mail to bring to the ARA Store on site in New Orleans to enter a draw for $2,500. Also, attendees will have the opportunity to win an iPad Air at the ARA Member Resource Center.

Events & Tents. Those in party/ special event rental can register for a separate one-day workshop on Feb. 21 designed just for them. It includes 15 educational sessions covering tenting, operations, sales/ marketing and more, as well as a trends forecast, closing session featuring virtual tours of three rental businesses and networking reception.

The keynote session, sponsored by Ditch Witch, will include association highlights from ARA’s officers and the Rental Hall of Fame induction prior to Manning’s presentation.

A New Orleans native, Manning is a 13-year Pro Bowl selection and has earned his place among the NFL’s greatest quarterbacks. In two seasons with Denver, Manning has led the Broncos to consecutive 13-win seasons while throwing for an NFL-best 100 touchdowns in the regular season and playoffs. For the 2013 season, he received his fifth MVP Award from the Associated Press and was named “Sportsman of the Year” by Sports Illustrated. Manning is only the third quarterback in NFL history to lead multiple teams to the Super Bowl. During his first 14 NFL seasons in Indianapolis, he led the franchise to its first World Championship in 36 years, earning Super Bowl MVP honours. Manning is a graduate of the University of Tennessee, where he led the football team to an SEC championship.

Only those with a full registration for The Rental Show will receive a ticket for the keynote session. Full registration will be available to ARA members at a special rate of $119 for a limited time, with online registration opening in early September at TheRentalShow.com. Also included with full registration are the three days of trade show from Feb. 23-25 and the educational seminars on Feb. 22, 24-25. CRS

CRA PRESIDENT’S MESSAGE

SOLUTION OBSESSED Rental people just have to help.

As we head into the heart of winter, for many this is a season to catch our breath, reflect on the year gone by and plan for the challenges coming at us in the upcoming year. Depending on which part of the country you call home, your biggest challenge in the next year could be changes in transportation regulations, labour-force issues, a slow economy or the dropping exchange rate. You might face several of these at the same time. While there is never a single solution that will solve all of these problems, there are resources out there you can tap into. If you have been around for some time you have probably already checked into what the Canadian Rental Association and American Rental Association have to offer their members for support. People new to the rental world have probably noticed that suppliers and even fellow store owners are great sources of information and are willing to share. OK, perhaps the stores in your local area may not be the best place to ask for assistance because of the competition factor; however, if you place some distance between yourself and the person you are asking for help, you will be quite amazed at what rental people are willing to share with you.

Providing solutions is built into the DNA of rental people and they simply cannot ignore a request for help with a problem. I have spoken to many rental people throughout the continent and have been taken aback at the vast amount of information they will provide and how they readily they share the benefits of their experiences, both good and bad, in order to help you avoid making their errors. So if you have questions that you cannot find the answers to through your standard sources, I would suggest asking a fellow rental owner.

One great place to do that is at your regional CRA trade show and The Rental Show, hosted by the ARA in New Orleans, Feb. 22 through 25 [see page 24]. Finding another Canadian on the vast show floor of The Rental Show could be a challenge, but your association gathers all your fellow Canucks conveniently together in one place at its (in)famous Canadian Hospitality Event for a night of networking, tale-telling and re-hydration. The 2015 Rental Show Hospitality Event will take place Feb. 22 from 7 to 10 p.m. at the River Room of the Hilton New Orleans Riverside. CRA Regular and Associate members are welcome and invited to wear your best Mardi Gras attire!

On the CRA front, with the many challenges of the past year now behind us, we are looking forward to focusing on improving our level of service to all members across the country. Our website upgrades continue with the aim of providing members with a quick reference point for upcoming events and details on association happenings at your local level as well. Other board committees are actively engaged in streamlining all aspects of the association’s activities in order to provide the best value possible for your businesses. We invite your input and suggestions at all levels and try to implement as many ideas as we can to improve. I trust that you have seen some improvements in the past year and will continue to do so as we move forward into 2015.

In closing, I would like to thank all of our members, both regular and associate, for their support during my time serving as president. It was a great pleasure meeting so many of you during the tours of some of your stores and during the various trade shows and other events in the past year. I would encourage you to provide the same ongoing support to Mr. Mintenko and our head office staff throughout 2015. Happy renting! CRS

Marc Mandin is COO of 4-Way Equipment Rentals in Edmonton and national president of the Canadian Rental Association.

– Jeff Campbell, St. Thomas Rent-All

PRODUCT SHOWCASE

MOBILE CONTROL

8 texadasoftware.com

Texada Software has launched the FleetLogic Asset Management tracking platform. FleetLogic is an application that provides powerful asset tracking and data management tools in the palm of your hand, through your mobile device.

Launching soon as a mobile app for iOS and Android, FleetLogic offers real-time location and status of assets; simplified, accurate and paperless equipment inspections; pickup, delivery, and exchange notifications for drivers; quick and easy filing of condition/customer damage photos; analytical tools to better understand fleet performance; taskfocused workflow for improved workforce productivity and efficiency; and time management tools that enable more accurate labour tracking.

FleetLogic integrates seamlessly with Texada’s cloud-based rental management software platform and is also available as a stand-alone app through the Google Play Store and the Apple App Store.

CUSTOMIZABLE FOR YOUR PROCESSES

8 flexrentalsolutions.com

Flex Rental Solutions provides customizable rental management software. Flex is web-based and works with all common operating systems and browsers –only a Flash plug-in is

needed. Built for real-world warehouse and inventory needs, a dedicated interface is provided for warehouse processes supporting real-time scanning with voice prompts. Flex offers powerful tools for modeling inventory the way you use it with virtual items, racks, kits and road cases. The equipment dashboard shows where gear is at the

moment and availability calculations are integrated with backorders and subrentals. Multiple users can work from the same pull sheet. Flex works with fixed equipment racks and racks that change from job to job. Free pick container logic makes it easy to prep cable packages and work boxes.

WORKS ON A WEB BROWSER

8 point-of-rental.com

Cloud by Point-of-Rental takes full advantage of cloud computing by providing reliable inventory and rental management software accessible through the Internet. Available by monthly subscription, Cloud’s features include uploading photos to track equipment condition, credit card processing and an integrated online storefront system that empowers customers to reserve items

and pay online. Equipped with Quickbooks exports, Cloud easily integrates with existing accounting software. The beauty of Cloud is that no extra hardware is needed – the software only requires a web browser. New transactions can be created with a simple-to-follow wizard, and existing transactions can by modified at any point. With many pre-defined filters available, Cloud’s Workbench shows active transactions at a glance and highlights any overbookings. Additionally, Cloud’s barcoding feature allows you to easily add items to a transaction with the item’s barcode, or create new customers by scanning a driver’s license. Cloud’s

OztEc concrete Vibrators Paper Shredders - ceiling grinders

• JENNY air compressors & Pressure Washers

flexible, easy-to-use design is an answer for all businesses that don’t need the robust functionality of the Enterprise product.

FOUR ADVANTAGES

8 solutionsbycomputer.com

Solutions by Computer (SBC) has continuously served rental operators since 1982 with rental, sales and service software. SBC’s flagship system, Enfinity, marries the user interface, database and applications software in a three-tier architecture that offers a number of advantages. Chief among these are speed, flexibility, adaptability and scalability. While Enfinity can run on a single computer system, and is affordable to do so, it also easily adapts to networks of hundreds or even thousands of computers and users. SBC offers Enfinity for purchase or SaaS subscription. Win-

dows-based Enfinity focuses on driving efficiencies and maximizing rental asset ROI. The system seamlessly handles precision inventory control by location, customer, jobsite, shop and service vehicle; pricing and discounts; quotes and reservations; transaction processing; sub-rentals; meters; accounts receivable; cash drawer; and custom Enlighten reporting, among other rental operations. Enfinity developers create real-time integrations that dovetail with rental operations. SBC maintains a full-time customer support department to provide assistance with system implementation, training and ongoing support.

• tErraMitE

• Square Scrub - floor preparation equipment

12 Aquila Crt., Toronto, Ontario M9W 5J2 Phone (416) 748-8045 • Toll Free 1-877-748-1130 Fax (416) 748-7922 • Toll Free 1-800-748-9989 E-mail: eastcan@rogers.com For Quebec: Erick Desormeaux • erick@equipdistribution.net Tel 514-249-9706/866-611-0843 Fax 514-221-3179/866-460-3179

compact loaders backhoes & Street Sweepers
tPi Fans, Heaters, Lights etc.
Courtesy of GreatEvents Calgary
Courtesy of GreatEvents Calgary
Tent-X-Span
Arabesque Theatre
Peak Marquee tent
Peak Marquee tent
Peak Pole Tent
Courtesy of Over The Top Tents Alaska
AYuen.Photo, Courtesy of The Calgary Parks Foundation
Courtesy of WJTL FM 90.3 Pennsylvania

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