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4
EDITORIAL:
It’s a zoo out there Common wildlife of the trade show season. by Patrick Flannery
28 Regional shows
We zip across the country to find out what is coming up at the CRA regional trade shows.
10 Canadian Rental Mart 2012
Your guide to Canada’s meeting place for the rental industry.
34
Shhhhhhh…
The importance of noise abatement in lawn care equipment.
27
Legalese
Our inaugural column from CRA legal counsel, Deryk Coward.
38
Q&A: Justin Friesen
Western Financial explains the CRA protected self-insurance program.
Industry News
32 CRA President’s Message
The biggest rental industry merger ever, Kubota comes to Home Depot, Call gets the call, Byers takes the east 646
Incoming president Ed Dwyer explains the CRA’s structure.
George’s Corner
Make your trade show trip a money maker, not a time waster. By George
Olah
It’s a zoo out there
Remember, they are more frightened of you than you are of them.
Trade show booths are great places to see some of the most exotic fauna this fair land has to offer. See how many of these species you can spot at the Canadian Rental Mart and your regional shows this season.
SILENT GLARER
Crouched unmoving in the depths of his booth, the Silent Glarer fixes his withering gaze on each hapless creature that wanders by, hoping to freeze his prey into immobility with the sheer ferocity of his malevolent stare. Making no attempt to lure prey closer or to disguise his intention to pounce, the Glarer may wait for days before some unwise attendee overcomes his instinct to flee and blunders into his pamphlet-lined trap.
SQUAWKING IDLERS
Never solitary, Squawking Idlers congregate in huge, noisy, intimidating crowds of five, 10 or more near the centre of large, well-appointed booths. So enthralled are they with their own loud internal conversations that they often completely fail to notice the presence of easy prey right in the same booth. Just what goes on in these raucous gatherings is a mystery to science, but it appears completely unrelated to any kind of business activity.
The Canadian Rental Association has launched its redesigned website at the old address, www.crarental.org, and is giving visitors a chance to win cash if they submit their feedback.
Construction equipment manufacturers anticipate overall business to close out 2011 with double-digit increases over last year in the U.S., Canada and worldwide. Growth is expected to continue but at a slower pace for 2012 through 2014, according to the annual business outlook survey of the Association of Equipment Manufacturers.
by Patrick Flannery
BIG-BREASTED DISTRACTION
The natural beauty and eye-catching strutting and posing of the Big Breasted Distraction is always welcome; however, BBDs are so spectacularly showy that they tend to attract swarms of predators so intent on capturing the BBD itself that they neglect to hunt for their normal prey: good deals for their businesses. Once captured, conversation with the BBD often proves to be so unappetizing that the predator will usually head off elsewhere looking for a more nourishing meal. BBD numbers have fluctuated as a result of political climate change, but many booth owners have come to regard them as a pest, and their numbers may soon be in decline again.
THE PHANTOM
Completely invisible, undetectable by scent or sound, the very existence of the Phantom is a matter for debate among trade show experts. The only evidence it leaves is its booths, which appear as if by magic, stand empty day after day, then vanish as quickly as they came. Some theorists suspect the Phantom has evolved beyond the need for normal business interactions, but others feel that if it is not already extinct, it soon will be.
VIBRATING NOISEMAKER
The Vibrating Noisemaker seeks to subdue its prey with powerful waves of sound produced by an array of cunning devices on its booth. Its call can be a numbing continuous drone, a startling screech or whine, a sudden series of sharp bangs or some combination of all these. The sounds are repeated over and over throughout the show day until either darkness falls or the noisy device is smashed to flinders by enraged nearby exhibitors.
BARTENDING HORS D’OEUVRE
The Bartending Hors d’oeuvre is one of the most beautiful and sought-after sights to be seen at any trade show. Partaking of its fermented beverages and sweet or salty nuggets of edible material, it is almost impossible not to smile when you enter the booth of this gregarious exhibitor. Sadly not as common as in the past, it is to be hoped that trade shows everywhere will encourage the proliferation of this most popular of show creatures. CRS
Why is this pump buried in sand?
Because it’s designed to!! Be it’s
UNITED RENTALS ACQUIRES RSC HOLDINGS
United Rentals has announced a deal to acquire RSC Holdings for $1.9 billion, the largest merger ever in the North American rental industry. United is saying the combined company is expected to have enhanced growth prospects and a more attractive business mix. The transaction is expected to generate over $200 million of annual cost savings, with additional revenue and cash flow upsides. Executives hope the transaction will be accretive to United Rentals’ cash EPS in the first full year after closing and provide significant value to United Rentals and RSC stockholders. The new board intends to authorize up to $200 million in stock buyback after the deal closes.
United Rentals will acquire RSC in a cash-and-stock transaction valued at $18 per share, or a total enterprise value of $4.2 billion, including $2.3 billion of net debt. The boards of directors of both companies have unanimously approved the proposed transaction and recommended that their respective stockholders approve the proposed transaction.
The companies say the proposed transaction will create a North American equipment rental company with a more attractive business mix, greater scale and enhanced growth prospects. The combination is also expected to accelerate United Rentals’ growth with industrial customers as well as provide a lower cost base and a less volatile revenue profile to better position the company through all phases of the business cycle. The new United Rentals should be well-positioned to benefit from increased rental penetration and the continued strength of the industrial sector, serving customers across a variety of industries and benefiting from a recovery in construction activity. United Rentals and RSC have already begun working on a plan to facilitate a smooth integration of the businesses and realization of over $200 million of potential cost savings.
Michael Kneeland, president and CEO of United Rentals said, “This transaction marks a transformative moment in our company’s history. Combining the experience and resources of two top-performing equipment rental companies creates an exceptional company. The new United Rentals will build upon the best practices and management teams from both companies to deliver superior customer benefits and enhanced value for our stockholders. With the best talent in the industry, we have a tremendous opportunity to become the supplier of choice for customers throughout North America.”
Erik Olsson, RSC’s CEO and president, said, “RSC has a strong track record of profitable growth and we are proud of what we have built. At the same time, I am confident that by partnering with United Rentals we can accomplish far more than either company could have achieved on its own, including significant synergies. As a result, the transaction delivers significant value to our shareholders. Our similar customer-centric cultures and commitment to operational excellence will provide even greater value to our customers and facilitate a smooth integration. I look forward to helping to lead the integration process during a transition period.”
Upon the close of the transaction, three of RSC’s independent directors will receive seats on United Rentals’ existing board of directors.
Kneeland and Jenne Britell, United Rentals’ chairman, will remain in their positions at the combined company.
WINCO MAKES ITS CALL
Ralph Call, chairman and CEO of Dyna Technology, has named Daniel Call president and COO of Winco and Winpower of Le Center, Minn. Daniel has been working as vice-president of sales for the past two years. Winco credits him with bringing structure and energy to its sales effort. Dyna Technology is projecting 15 to 20 per cent growth for 2011.
Dan has a bachelor’s degree in accounting from Utah State University. He spent eight years in the Army Reserves, including a year in Iraq, and was honorably discharged as a Staff Sergeant. He spent two years in Brazil on a church proselytizing mission and speaks Portuguese. Dan is married to Laura Thiel and has two children, Katelyn and Andrew, with another expected in January 2012.
2012 marks Winco’s 85th year as a manufacturer of portable, standby and PTO generator systems up to 150 kilowatts that are sold throughout the U.S., Canada and in some international markets. Winpower manufactures diesel- and gas-power systems ranging from 12 kilowatts to 350 kilowatts.
Dyna Technology was established in 1996 as a holding company with various other business interests. Winco and Winpower are wholly owned subsidiaries of Dyna Technology.
CHAMBERLIN TOPS AT HUSQVARNA CONSTRUCTION
Steve Chamberlin has been named president of Husqvarna Construction Products. He will be responsible for leading the sales, marketing, product management, customer service, technical support, finance and human resource teams in North America.
Chamberlin has been a part of the Husqvarna team since 2007 and brings over 30 years of experience in sales, marketing, operations and management. He previously held the role of vice-president, Husqvarna Construction Products North America.
KUBOTA WORKING WITH COMPACT POWER
Kubota Tractor has announced a strategic partnership with Compact Power Equipment Centers allowing it to offer select construction equipment for rent within various locations of The Home Depot Tool Rental. Since 2008, Compact Power has provided customers with towable rental equipment for a variety of projects, which now includes Kubota’s K008-3 excavator and BX25 tractor/loader/backhoe.
The K008-3 and BX25 are currently available in approximately 100 Home Depot locations nationwide including The Home Depot flagship store in Georgia, as well as stores in Tennessee, South Carolina, Texas, Florida and Mississippi. Compact Power hopes to place Kubota equipment in each of its 280 current locations, with a 2012 expansion goal of more than 400 additional locations.
“Our partnership with Compact Power makes Kubota available to an entirely new customer base of rental users,” said Tim Bauer, Kubota national accounts manager. “During these uncertain economic times, the rental option serves customers who are hesitant to invest in equipment ownership, conserving their cash flow and lines of credit.
Kubota says it plans to penetrate all levels of the rental market, working with large players in the industry, regional rental companies and expanding rental departments within Kubota dealerships nationwide. “With people choosing to stay in their homes longer, we’re seeing a large portion of rentals going towards property improvement projects,” said Andy Lewis, director of marketing for Compact Power. “Our partnership with Kubota takes us to a new level. At Compact Power, we pride ourselves on providing top tier equipment and Kubota’s reputation lends further credibility to our dedication to quality. Kubota’s K008-3 excavator and the BX25’s ease of operation and functionality make them highdemand rental items. And, just as importantly, their durability and ease of service ensure rental readiness. Having the equipment serviced and operational at all times is a key requirement of The Home Depot.”
ONLINE REGISTRATION AVAILABLE FOR THE CANADIAN RENTAL MART
Online registration is available for those planning to attend the Canadian Rental Mart, taking place March 6 and 7 at the Toronto Congress Centre. Attendees can register for free at www.canadianrentalmart. com . This marks the first time the Rental Mart has offered online registration. Attendees can also register by contacting Barb Comer at 1-888-5992228, ext. 235.
Free registration entitles attendees to access all exhibits, events and seminars at the Rental Mart for both days. The 2012 edition of the show will include educational seminars by George Olah and Mark Peart, equipment and product displays from dozens of industry suppliers, the CRA Ontario banquet and awards, the ROOTY award presentation and a special appearance by HGTV star, Bryan Baeumler. Hundreds of rental operators from across Canada are expected to attend, as well as CRA and ARA executives and board members.
Registration has been deliberately kept simple, with only the attendee’s business category required in addition to basic contact information.
CRA BUSINESS LEADERSHIP PROGRAM LAUNCHED
The Canadian Rental Association has launched a new program, the Canadian Business Leadership Program. Through this program, CRA members will have a chance to travel to other rental businesses across the country and learn valuable leadership skills.
The CRA is dedicated to building relationships, aiding the rental industry and assisting our members in business and personal growth,” executive director, Mandy Wellnitz, said. “For those reasons, the CRA has created this program to continue with these goals. This leadership program will build personal and business relationships and create new leadership opportunities within the rental industry. It will allow for travel within Canada and the building and sharing of knowledge among industry professionals. Our vision is to develop leadership skills our members.”
The program is similar to the American Rental Association’s International Rental Business Leadership program, which has seen several job-shadowing exchanges between American and Canadian rental operators and operators from Australia through the Global Rental Alliance. The CRA program will operate only within Canada.
CRA ONTARIO MEETS AT HY-COR
The Canadian Rental Association Ontario got together on Nov. 16 for its monthly member’s meeting. As has been the tradition, the event moves around the province to allow members from various areas to participate. This meeting was held at the Hy-Cor office in Komoka, Ont., just west of London. Neil Courneya and his staff of Randy Luke and Cindy Fillion, along with Neil’s wife Ellie, greeted the attendees.
Ontario president Mike Maltby opened the meeting. After dinner Couneya gave an overview of the product lineup his company provides. Hy-Cor has expanded from its traditional safety gear, glasses, gloves and harnesses to now include the complete line of Ericson electrical products, including mobile power distribution centers, contractor quality cord sets, specialty lighting equipment and a range of GFCI testers.
One of the highlights of the meeting was the 1916 Ford Model T that Dale Brinklow, CRA Ontario first vicepresident, picked up that afternoon and had in the yard.
The next Ontario event will be held at Atlas Copco in Mississauga on Jan. 18. Plans are also in place for the gala banquet held in conjunction with the Canadian Rental Mart trade show. The banquet, which will feature Bryan Baeumler, host of TV shows Disaster DIY and House of Bryan , will take place Tuesday, March 6, at the Toronto DoubleTree Hotel after the trade show closes for the day.
High jumps with high risk.
Optimum vibration with total control and choice.
Productivity Partnership for a Lifetime.
This high performance series of compactors distinguishes themselves every day. Easy handling. Universal application. High maneuverability. Thanks to infinitely variable hydraulic forward and reverse action, this machine moves quickly on the job, even uphill.
Ideal for rental operators, the compact and foldable engine cover makes servicing easy and provides excellent protection, too. Although the AVP 5920, 4920 and 3920 stand head-and-shoulders above the competition, the price is reassuringly down-to-earth. For sales and service contact your local Ammann dealer.
Alberta – Williamson Equipment Ltd.
tel: 780-450-0055
gwill@williamsonequipment.com
British Columbia – Parker Pacific tel: 800-665-9901
Nissan Forklift Corporation has announced Lewis Byers will become its business development manager for the east region.
Bringing 23 years of sales and operations experience in the materials handling industry to the position, Byers is responsible for business development for 19 Nissan Forklift dealers in the east region of the United States and Canada. His territory stretches from Newfoundland south to Miami, Fla.
“We are happy to welcome Lewis to the Nissan Forklift team,” said Rick Green, director of sales.
“His in-depth experience in the industry and his sales background make him a valuable asset to the dealers that he works with in our east region.”
Byers earned his bachelor’s degree in business administration and marketing from the University of North Florida. He resides in Jacksonville, Fla.
CANADIAN
RENTAL MART
The meeting place for Canada’s rental industry.
Some people are E-mail People. That is, they only exist as e-mails that turn up from time to time in your inbox. The Canadian Rental Mart is your chance to turn the E-mail People you know into real, flesh-andblood people with whom it is possible to have a relationship.
by PATRICK FLANNERY
THE PLACE TO MEET
This spring there is one place where you can find everything for your business. The 2012 Canadian Rental Mart will feature equipment for lawn and garden maintenance, construction, lift and access, drainage and water management, cutting and grinding, concrete, heating, lighting and more. Major software vendors will be there showing off the latest information and products to make your operation run smoothly. And party and event rental operators will find more for them than ever before. The chance to connect with your industry only comes once every two years.
Don’t miss the Canadian Rental Mart.
THE CANADIAN RENTAL MART FIVE Ws
What: Canada’s national trade show for the rental service industry, featuring 4000 square feet of show floor, educational seminars, awards, special guests and networking opportunities. The CRA Ontario banquet is held across the street in conjunction with the show, and Canadian Rental Service’s ROOTY award will be presented on the show floor.
When: March 6-7, 2012. The Canadian Rental Mart is held every two years.
Where: Toronto Congress Centre, 650 Dixon Rd., Toronto, Ont.
Who: You! The Canadian Rental Mart draws over 650 rental store owners, managers and employees from right across Canada. Almost 100 of Canada’s top equipment suppliers to the rental industry will be exhibiting. HGTV host Bryan Baeumler will be on hand to sign posters,
present the ROOTY award and rub shoulders with attendees at the CRA Ontario banquet. Industry veterans George Olah and Mark Peart will present the seminars. The Canadian Rental Mart is presented by Annex Business Media, publishers of Canadian Rental Service magazine. Primary contacts for the show are CRS sales manager Ed Cosman, and editor Patrick Flannery. Why: In this age of electronic communication it has become more important, not less, to reinforce business relationships with faceto-face meetings. The Rental Mart is your chance to connect with your peers from across the country, to pick up valuable insights and knowledge, and to visit the suppliers on which your business depends.
GETTING THERE
The Toronto Congress Centre is located at 650 Dixon Rd., quite close to the airport and the 401 and 427 highways. The DoubleTree Hilton is across the street. Parking at the Congress Centre is free.
The Toronto Congress Centre is only a short taxi ride away from Pearson International Airport. If you get a rental car, simply bear right on Airport Road as you leave the airport. It turns into Dixon Road as you pass under the 427 and takes you right to the Congress Centre, which will be on the left.
SHOW ITINERARY
Tuesday, March 6 8:30 – 9:30 a.m.
• Educational seminar “Renting Safe and Profitable: How to Meet Your Safety
The 2012 Canadian Rental Mart will have almost100 exhibitors in 40,000 square feet of show floor, including 10 first-time exhibitors. There are also more exhibitors from the party sector than ever before.
Obligations and Still Remain Viable,” by George Olah, meeting rooms, DoubleTree Hilton
10 a.m. – 6 p.m.
• Show floor open
2:30 p.m.
• HGTV host Bryan Baeumler appearance and poster signing at CRA booth
3:30 p.m.
• ROOTY award presentation at Canadian Rental Service booth
6 p.m.
• CRA Ontario cash bar at DoubleTree Hilton
7 p.m.
• CRA Ontario Murder Mystery
banquet and awards with special guest Bryan Baeumler
Wednesday, March 7
8:30 – 9:30 a.m.
• Educational seminar “Enhancing Your Lawn and Garden Rental Profits,” by Mark Peart, meeting rooms, DoubleTree Hilton
10 a.m. – 4 p.m.
• Show floor open
REGISTRATION
Registration is absolutely free and just a click away at www.canadianrentalmart. com. Or contact Barb Comer, 888-5992228, ext. 235, bcomer@annexweb.com.
Booth #: 413, 415 WEBER MT, INC. 45 Dowd Rd. Bangor, ME 04444 Phone: 207-947-4990
Booth #: 414 WESTERN FINANCIAL GROUP INSURANCE SOLUTIONS 777 Portage Ave. Winnipeg, MB R3G 0N3 Phone: 800-665-8990
Booth #: 512 WOODBRIDGE EQUIPMENT PARTS INC. 7-7075 Tranmere Dr. Mississauga, ON L5S 1M2 Phone: 905-673-8969
EVENTS
Feb. 5-8
The Rental Show New Orleans, La. www.therentalshow.com
Feb. 25
Atlantic Regional Trade Show Moncton, N.B. www.crarental.org/tradeshow
March 4-8, 2014
ConExpo-Con/Agg and IFPE Las Vegas, Nev. www.conexpoconagg.com
March 6-7
Canadian Rental Mart Toronto, Ont. www.canadianrentalmart.com
March 13-15
World of Asphalt Charlotte, N.C. www.worldofasphalt.com
March 17
Prairie Regional Trade Show Saskatoon, Sask. www.crarental.org/tradeshow
SHOW LOCATION
This year the Canadian Rental Mart show will be held at the Toronto Congress Centre, 650 Dixon Rd. Toronto ON
HOTEL INFORMATION
The headquarters hotel for the Canadian Rental Mart will be the luxurious DoubleTree International Plaza Hotel. This facility is right across the street from the show. Please make your reservations directly with the hotel.
Phone
Toll Free: 800-668-3656
Group Name
Group Code
Rate: $139.00
CANADIAN RENTAL MART SHOWCASE
Your guide to the great products on display.
PRODUCT SHOWCASE
FOUR-SEASON
WALK-BEHIND BROOM
Booth 718
www.easternfarmmachinery.com
The MB walk-behind broom is a four-season machine. Users can confidently move six inches of snow in the winter. In the spring, use it for de-thatching lawns, sweeping roadsides, paths, tracks, parking lots, golf course greens and cart paths. The MB walk-behind broom is useful in the summer for cleaning construction sites, backfilling or even preparing for parking lot striping. In fall, it is the perfect leaf clean-up tool. Features include a 25-inch diameter brush; three- and four-foot broom widths; a powerful, 9.5-horsepower, overhead valve, all-season, Kohler engine; differential unlock at the handle bars for easy manoeuvrability; five forward and two reverse speeds; a direct-centre drive for the broom with no
belts or chains; and a swing release located at the handle bars.
TAILORED INSU RANCE SOLUTIONS
Booth 313
www.westernfgis.ca
Western Financial Group Insurance Solutions, in partnership with the Canadian Rental Association, is the provider of a specialized insurance program with risk management services for CRA members across Canada. It specializes in helping Canadian associations, buying groups and independent businesses save money while providing the right level of coverage through specialized group insurance programs. Western Financial is here to help rental operators with their insurance needs and help reduce their insurance costs.
The following insurance coverages exclusively designed for CRA members are now available: property, rental equipment off-premises, liability, business interruption, crime, equipment breakdown, equipment re-rental, and
theft by conversion coverage.
Western Financial strives to understand rental businesses and the risks they face. In conjunction with the CRA, it has created a specialized insurance program for the industry. Western Financial will work with individual operators to determine the right level of coverage to meet their particular needs. They will provide consistent and ongoing Canada-wide sales and service support.
Through the CRA insurance program, CRA members have the benefit of strength in numbers with preferred group rates. Each member can realize immediate premium savings and long-term rate stability. The program will provide an opportunity for returns of premium paid directly to participating members during low-claiming years.
All participating members will have a representative review current coverage limits, including building evaluations, and provide coverage recommendations.
FULL-FEATURED DIAMOND SAW
Booth 606
www.mkdiamond.com
MK Diamond Products offers the MK-101 Pro 24
JCS diamond tile and marble
saw. The MK-101 Pro 24 JCS has all the same features of the MK-101 Pro 24 and adds an integrated stand designed to provide easy transportation and setup. The stand has integrated gas shocks that help handle the weight of the saw during setup and breakdown. The MK-101 Pro 24 JCS features a durable neoprene tablemat that will not deteriorate and guarantees a long service life. The over-moulded tablemat grips tile firmly to ensure precise cuts and protects the table surface from scratches and dents.
The saw includes features the professional desires with a multi-position motor post and cutting head for convenient cutting of various tile sizes. The variable height cutting head allows for plunge cuts and use of blades smaller than 10 inches in diameter. The blade guard is
wide enough to accommodate six- and eight-inch profile wheels. This 10-inch wet cutting tile saw, with a 5/8-inch arbour, produces a 3 ¾-inch depth of cut, a 24-inch length of cut and diagonally cuts 18-inch material. The heavy-duty Baldor electric 1 ½-horsepower, 120-volt, fully enclosed, high-torque, fan-cooled motor is the power behind the blade and delivers long, reliable service.
The MK-101 Pro 24 JCS is made in the U.S.A. with a one-year limited warranty.
Accessories included with MK-101 Pro JCS include a 10-inch MK-225 HotDog Blade, water pump, cutting kit and side extension table.
JOINTLESS TRACK TECHNOLOGY
Booth 512
www.xtracplus.com
X-Trac excavator rubber track distributed by Woodbridge Equipment is available for all OEM brands of mini-excavators, compact track loaders and other specialized equipment. In addition, nonmetal core track is available for Terex/ ASVCAT and skid steer solid tires. X-Trac standard metal core track incorporates jointless technology to ensure superior strength and durability. Short pitch tracks are enhanced with a patented bi-directional lug pattern and thicker reinforced edges, which results in longer life, effective traction and bi-directional driving ability. In addition, X-Trac is guaranteed to fit properly. X-Trac rubber track is warranted against any material and workmanship defects. Mini-excavator track is warranteed for 18 months and compact track loader track for 12 months.
Booth 102
A
www.questplastics.ca
ARE YOU PROTECTING YOUR EQUIPMENT?
PRODUCT SHOWCASE
buried line tapes, Better Barriers barricade tapes are made in Canada from polyethylene resin to deliver performance with a focus on the environment. All Quest Plastics aboveground tapes contain the additive Reverte, which allows for degradation of the film in landfill conditions. Reverte initially catalyzes the oxo-degradation of the polymer chains and then promotes the growth of microbial colonies to expedite the second biodegradation stage. The tape is compliant with ASTM D6954-04. Custom barricade tapes are available to meet particular requirements.
LOW-VIBRATION
HYDRAULIC BREAKERS
Booth 1117
www.atlascopco.ca
Hydraulic breakers are becoming an increasingly popular choice within the rental industry, and Atlas Copco offers an attractive solution: the SBU series of hammers. Suitable for installation on miniexcavators and backhoes ranging from 2.8 to nine tons, the SBU range is also specially configured to handle the higher levels of back pressure generated by skid steers. The solid body design is well known for its superior performance and reliability; low vibration and noise; and exceptionally easy maintenance. Atlas Copco will have the SBU
220, along with its entire range of Construction Tools, on display at the Canadian Rental Mart.
CHOICE IN PAYMENT PROCESSING
Booth 205
www.solutionsbycomputer.com
Solutions by Computer will demonstrate its Card Payment Gateway, a payment processing module for credit and debit card that gives Enfinity system users the option of three different payment processing vendors to choose from. Benefits to rental operators include non-proprietary integration, with the flexibility to shop three payment processors for competitive quotes and customer service capabilities; PCI-compliance, which means no card information is stored on Enfinity, removing the system from the scope of PCI requirements; and signature capture, which automatically applies to both card and contract.
With SBC’s Card Payment Gateway customer cards are automatically used for subsequent invoices on the same contract and settlements are processed automatically overnight. SBC has continuously served the rental industry with leading rental management technology since 1982. Windows-based Enfinity, introduced in 2005, has earned multiple awards for innovation including the American Rental Association’s New Product Spotlight award and Rental
Equipment Register’s Innovative Product Award for software. SBC also serves the industry with Unixbased CounterPro, and Saas software subscription options for both systems.
A CUTTING TOOL INSTITUTION
Booth 614
www.brunnercanada.com
In 2012, Brunner Canada will celebrate 130 years of continuous operations under the ownership and control of the founding family. Brunner products are divided into three major categories: tools used for the demolition or cutting of concrete and stone; drill steels and carbide tipped bits, which are used to drill blast holes in quarries, mines, and construction projects; and small chipping and electric hammer tools, which are used by the general construction trade.
CONNECTIONS SOLUTIONS FOR ALL APPLICATIONS
Booth 1110
www.nationalhose.ca
Stucchi is an ISO 9001certified manufacturer of hydrau-
lic quick disconnects. Its solutions-based approach meets the demanding requirements for a variety of applications spanning multiple markets, including construction, agriculture, automation, chemicals, offshore and land-based oil and gas, pulp and paper, plastics and public utilities.
Stucchi also manufactures and designs flat-face quick disconnects and connectunder-pressure technology. Its solutions-based profile includes the series APM, an ISO 16028 push-to-connect, flat-face nipple, as well as the Saturn Block, a modular pressure relief valve system designed to interact with numerous brands of skid steers.
IMPROVED SOD CUTTING
Booth 519
www.gcduke.com
The Ryan Jr. sod cutter from G.C. Duke includes new and improved features. New rubber isolation mounts provide a 75 per cent reduction in hand and arm vibration for more comfortable operation. The new, pneumatic, rear castor wheel with lockout allows curved landscape cutting with high precision. The Ryan Jr. is available in 12- or 18-inch sizes with a Honda engine.
PRODUCT SHOWCASE
POWERFUL SURFACE PREPARATION
Booth 1006
www.squarescrub.com
Powerful, heavy and durable, the EBG-28 from Square Scrub boasts 216 pounds of weight to help penetrate multiple layers of finish. A 50-foot, 14-gauge power cord with a lighted hospital plug, a smooth and powerful 3,450 r.p.m., 1.5-horsepower motor, eight large isolators and Americanmade parts make this machine reliable and able to tackle the biggest job. The six- by two-inch, non-marking foot makes this machine easy to move on any surface. It comes with a dust containment kit. Add an optional, two-piece handle and the EBG-28 becomes easily transportable in nearly any vehicle. An optional hour meter is available, as well.
IDEAL FOR TRENCH WORK
Booth 413
www.webermt.com
The versatile CR 6 from Weber MT is ideal for trench work at 18 or 24 inches and can be extended to 28 inches. The enclosed V-belt and self-adjusting clutch are included safety features. This compactor weighs 905 pounds and generates 11,250
pounds of centrifugal force. The 24- by 34-inch base plate is fully extendable. The CR 6 uses a Hatz 1 B 40 electric start diesel engine with an optional Compatrol compaction meter. The Compatrol option is also available on the CR 6 H. Compatrol controls the vibration of the base plate, increasing or decreasing vibration based on the soil conditions. The results are displayed on the control panel and tell you when optimal compaction is reached. This creates less rework and no overcompaction. The user can achieve uniform compaction due to because continuous measurement allows weak points to be quickly identified. No area remains uncontrolled with the Compatrol, allowing for quality assurance in such confined sites as trenches or backfill areas.
CORDLESS ROTARY HAMMER
Booth: 219
www.hilti.ca
Professionals can experience battery power at its best with the comfort and convenience of the new TE 6-A36-AVR cordless rotary hammer drill. This powerful 36-volt cordless rotary hammer features Hilti cordless power care technology that protects the battery, switch and motor, for increased durability. The TE 6-A36 sets the standard for impressive battery capacity with less weight.
Thanks to a redesigned hammering mechanism, the TE 6-A36 provides superior drilling performance up to 5/8-inch in diameter. Featuring an ergonomic grip design and best-inclass performance-to-weight ratio, this hammer drill takes long periods of repetitive drilling in concrete and masonry in stride and drills far more holes per battery charge than other cordless rotary hammers.
One way to make ’em pay
Builders’ liens can protect you from unscrupulous customers.
by Deryk Coward
Dealing with customers who refuse to pay their bills can be a very frustrating experience for most rental companies. Fortunately, there is an underrated but powerful tool to assist you with the collection of unpaid accounts. This tool is called a builder’s lien (also known as a construction lien).
A builder’s lien provides those who supply labour, services and/or materials to a construction project certain rights that are typically not available to other creditors. A builder’s lien secures a claim for payment on work completed or materials supplied to a construction project. Typically, when a lien is registered in the applicable land title office, it becomes a charge against the title to the land or property involved in the construction project, thereby allowing the lien claimant the ability to secure payment for work done or materials supplied.
One of the main reasons a builder’s lien remains an effective tool for collecting on an outstanding account is because it is a charge against land. As a result, the lien stands to impede the landowner’s ability to sell the land or obtain additional financing for the project at hand. This alone can persuade a landowner to ensure all outstanding accounts are paid in full.
provincial lien legislation may 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 registration of a builder’s lien. These requirements should be discussed with your lawyer. In Manitoba, for example, the applicable legislation provides that a lien claimant must proceed with the filing of a Statement of Claim in court within two years of the lien being registered against the property. One of the reasons behind this requirement is to prevent lien claimants from being able to endlessly tie up properties without ever suing to recover the monies they allege are owed.
Please also note that provincial lien legislation differs from province to province, and therefore, in the event that a builder’s lien is required, it is always advisable to discuss the matter as soon as possible with legal counsel entitled to practise
A builder’s lien remains an effective tool for collecting because it is a charge against land.
Suppliers of materials can include renters of equipment, providing the equipment is used on the particular construction project. Therefore, renters of equipment can often be entitled to file a builder’s lien.
It is important to note there are strict timelines that a lien claimant must adhere to, in order to ensure proper registration of a builder’s lien. Failure to adhere to the strict timelines as provided in the applicable
law in your province in order to determine the best course of action. CRS
Deryk Coward articled with D’Arcy & Deacon in 1996 and was called to the Manitoba bar in June of 1997. He is a partner with the firm, practising primarily in the area of general civil litigation, personal injury, insurance, debtor-creditor and labour and employment law. Coward is legal counsel for the Canadian Rental Association.
REGIONAL ROUNDUP
Connect with success at your local CRA show.
The Canadian Rental Association’s regional trade shows are the lifeblood of the association, and this industry. Almost every major rental operator in this country got started by attending a local show and finding the vendors and business tips that led to success.
by PATRICK FLANNERY
Getting out to your local show will help support your local distributors, your association and you. Canadian Rental Service contacted regional show organizers from across the country to get a sneak peek at what is coming up this show season.
ATLANTIC REGIONAL TRADE SHOW
When: Saturday, Feb. 25
Where: Ramada Crystal Palace, Moncton, N.B.
Contact: Hank McInnis, 902-481-3455
The Atlantic show draws rental operators and vendors from all over the Maritime provinces to centrally located Moncton. The Crystal Palace is a new venue for the 2012 show, featuring easier access for exhibitors and a
larger floor for exhibiting bigger equipment. Also, it is located across the street from the largest mall in Moncton and has an amusement park attached, so attendees are encouraged to bring the whole family. The Atlantic show includes a dinner and social night with entertainment on the Friday before the show. Entertainment in the past has included casino gaming, magic shows and comedians. A regional award will be presented at the social night recognizing dedicated service to the Atlantic rental industry.
QUEBEXPO
When: Tuesday, March 27, and Wednesday, March 28
Where: Centre des Congrès de l’Hôtel des Seigneurs, St-Hyacinthe, Que.
Contact: Benoît Légaré, 418-849-7394
RIGHT: Any show where you have a chance of winning an award called the Dickie Doo is worth attending. Three locals converge on Saskatoon on March 17.
Getting together without good food and drink is illegal in Quebec, so Quebexpo is the place for some serious socializing. Mark your calendar for a trip to St-Hyacinthe, March 26 and 27.
Located in St-Hyacinthe for easy access from both Montreal and Quebec City, Quebexpo kicks off with a breakfast meeting of the Association Location du Quebec. “Increasing friendship” is the goal of the 2012 Quebexpo, according to Quebec national director Paul Ravary, and to that end there will be open bars on the show floor from 5 to 7 p.m. on the first day and from 5 to 9 p.m. on the second. This edition of the show will feature some larger equipment on display in the lobby of the convention hall, as well as many draws for attractive prizes.
PRAIRIE REG IONAL TRADE SHOW
When: Saturday, March 17
Where: Prairieland Exhibition Centre, Saskatoon, Sask.
Contact: Brad Williams, 306-931-7880
The Alberta, Saskatchewan and Manitoba locals combine forces to host the Prairie show in Saskatoon. Prairieland Centre has proven to be an excellent venue with easy access for larger equipment. The banquet and social are planned for the Saturday night after the show, and anyone with Irish heritage will have a special reason
to celebrate as the show falls on St. Patrick’s Day. The coveted Dickie Doo award will be bestowed upon a worthy member at this time, along with recognition of hard-working members and suppliers from each provincial local.
B.C. REGIONAL TRADE SHOW
Between the time Canadian Rental Service goes to press and its arrival in your mailbox, the B.C. show happens. To find out what occurred in the 2012 edition, check out the show wrap-up on www.canadianrentalservice.com.
CANADIAN RENTAL MART
When: Tuesday, March 6 to Wednesday, March 7
Where: Toronto Congress Centre, Toronto, Ont.
Contact: Barb Comer, 519-429-5276
Yes, the Canadian Rental Mart is a national show, but it also does double duty as the Ontario regional show in the years when it occurs. The CRA Ontario holds its annual banquet during the show where it recognizes outstanding members from the prior year. In odd-numbered years, the CRA Ontario hosts its own table-top show.
The unmatched portability of the X AIR SC70 breaker system offers a powerful alternative for any rental company.
CRA PRESIDENT’S MESSAGE
HELLO, CRA MEMBERS
Your association is part of an international network.
by ED DWYER, CRA PRESIDENT
Iam honoured to have been elected president of our Canadian Rental Association. Thank you for your support as we work together to raise the standard. We are in a great industry and our CRA has got to be one of the best industry trade organizations in the country.
The CRA was established in 1965 and is made up of seven provincial rental associations, better known as locals. These are: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and the Atlantic local that includes all the Maritime provinces. In all, there are over 900 rental stores from across Canada that are members of the CRA. We also have over 200 Canadian supplier members.
Each of the seven provincial locals is made up of volunteers who are elected to be local president, vice-president, etc. The locals put on social and networking events and deal with issues that come up provincially. They also elect a provincial director to represent them on the CRA national board.
The CRA national board is made up of provincial directors and executive committee members. The national board meets semi-annually and has monthly conference calls to deal with national issues and projects. Our national committees have been very successful in putting together a number of valuable services and programs for members, for instance, our very own, world-class, member-owned, insurance program. Thanks to our committee volunteers we have a brand new website and very successful trade shows in each region. The CRA also boasts a national advertising campaign featuring Bryan Baeumler of House of Bryan , Disaster DIY and Leave it to Bryan .
The executive gives direction to the staff at CRA head office. The CRA head office is located in Winnipeg and is led by our executive director, Mandy Wellnitz, and our bilingual membership services co-ordinator, Pascale Lambert. It is staffed on a fulltime basis to assist you in any way. Please visit our new website at www.crarental.org to see all the exclusive services that are available to you as a member.
Ed Dwyer owns and operates C & T Rentals in Winnipeg, Man. He is a past president of the Manitoba Rental Association and also an active member of TAB (The Alternative Board).
When a rental store becomes a member of the CRA, it also becomes a member of the ARA. The ARA is made up of 10 regions, with Canada being Region 10, the second largest region in the association. We are represented on the ARA national board by our region 10 director, who is elected for a three-year term. The ARA has a membership of over 7,500 rental stores. Being a member of the ARA has tremendous advantages for you. The ARA has a staff of over 60 people working in its head office, and they are there to help you, too. Visit the ARA website at www.ararental.org and use your password to go to the Member’s Only section. I am sure you will say, “Wow!”
The Canadian Rental Association is a member of the Global Rental Alliance. The GRA was formed in 2003 and now includes seven countries. The Alliance holds conference calls during the year and meets annually at the ARA Rental show, which this year will be held in New Orleans, Feb. 5 to 8. The purpose of the GRA is “To increase the profile of equipment rental worldwide and increase membership value to the respective membership associations.” Please visit their website at www. globalrentalalliance.com.
I have set a personal goal to bring in at least 10 new CRA members during my term as president. I would encourage each CRA member to set your own goal to increase our membership. If you are not a member of the CRA and are interested in joining, give me a call at 1-204-489-0003 and I will walk you through the process. If you are a CRA member and know a business owner who should be in the CRA but is not, I ask you to please pass along the contact information to me so that I can encourage him or her to join. CRS
by JIM CHLIBOYKO
THE NOISE OVER NOISE
Balancing noise, performance and price.
When choosing your stable of lawn care equipment, you may want to give some thought to how noisy it is. Especially in suburbs, people today are less tolerant than ever of loud leaf blowers, lawn mowers and chainsaws. The good news is, new technology may make it easier than before to balance performance, cost and noise.
In the world of landscaping equipment, the word leaf blower has almost become a curse word over the last 40 years. Leaf blowers have been banned in a large number of California towns, for example. The state’s first banning came as far back as 1975. One small-town campaign against the leaf blower was even documented in the austere weekly The New Yorker, in an article which detailed the Japanese birth of the leaf blower (initially used to spread pesticides in farmers’ fields) and, later, describing the struggle over leaf blower use in a leafy Oakland suburb.
One of the reasons behind the unpopularity of leaf blowers is the noise they make. Sound, as readers of community newspapers and letters to the editor know, is a common source of
complaints for unhappy suburbanites, whether it is coming from leaf blowers, lawnmowers or nearby airports. But whatever is making the noise, over the last few years people seem to have become less willing to tolerate any kind of noisy yard machinery.
To cite one example of noise bylaws in Canada, the City of Toronto’s chapter on noise is covered by a 15-page document. It covers the waterfront in terms of all potential conflict based on noise, including religious celebrations. However, it does not specifically cite any one piece of equipment. In comparison, leaf blower operators in Vancouver are only permitted to use their machines between 8 a.m. and 6 p.m. on weekdays and 9 a.m. and 5 p.m. on Saturdays.
RIGHT: No one wants to hear this when they are lining up a putt.
“Look at the drivers of what encourages change, especially with noise,” says David Schwartz of Stihl Canada. “In California, in part, and in California North [otherwise known as B.C.], regulation really focuses around blowers.”
But in terms of landscaping equipment, it is not just leaf blowers that make noise. Edgers, trimmers, lawnmowers, snowblowers, chainsaws – they are all examples of equipment we use in our yards, and whose tell-tale aural signature is a high-pitched, oscillating cacophony.
According to Health Canada, power landscaping equipment is one of the more common suburban irritants cited in a telephone poll commissioned by the agency, along with aircraft, trains and construction equipment.
Health Canada has also measured the problem: “Scientists measure the levels of different sounds with a unit called the A-weighted decibel (dBA). The A-weighting reflects how people respond to sound. In a typical community, noise starts to make people highly annoyed when the sound level outside their home is around 55 dBA. In comparison, the sound level on the shoulder of a major highway is between 80 and 90 dBA.”
The source of the sound that machinery makes is produced by either many moving parts or equipment that is prone to high vibration. Gas-powered machinery makes more noise, as does equip-
ment that is older and/or less maintained and lubricated than newer models.
It is an engine featuring overhead cam (OHC) technology that will give you a quieter piece of equipment, as compared to an engine with an overhead valve (OHV), or pushrod, design. The OHVtype of engine was created and tinkered with by automobile pioneers such as David Buick and the Chevrolet brothers. On an OHC engine, there are less moving valve train parts and the engine’s components are engineered for more direct motion; the camshaft is actually within the cylinder head, removing the need for pushrods. The engines themselves are more complex, but the performance is better and there also happens to be less noise.
But another way that landscaping equipment is changing is in the move to battery powered lines of equipment. Gas-powered equipment, not surprisingly, is a lot like a gas-powered car, and tends to be a lot noisier than its electric cousins. It could also be that in trying to create a cleaner, more efficient machine, a surprising by-product of such product evolution is quieter landscaping equipment.
“All the new models seem to be getting quieter and quieter,” said Burlingtonbased dealer Mark Peart. “It is all based on U.S. requirements and they are all getting quieter, as well.”
“I see people going towards more
battery-operated equipment,” says Ed Dwyer, owner of C & T Rentals in Winnipeg (and the new president of the Canadian Rental Association). “Stihl is coming out with electric trimmers and with a battery-operated chainsaw.”
As are many other companies. One of Stihl Canada’s recent press releases is headlined “No Gasoline. No Emissions. No Power Cord.” It might just as well have added “Less Noise.”
David Schwartz knows a thing or two about noise and equipment.
“Leaf blowers (the quieter models) use different fan wheels that produce less oomph. They use foam to deaden the airflow,” he says. “As far as the muffler goes, the bigger the muffler the quieter they will be.”
But it is not just a matter of slapping a muffler on something to quieten it down. Mufflers require some measure of precision, just like any other piece of equipment.
“With hand-held equipment, it is tough to put a big muffler on,” Schwartz says. “Too big a muffler and you lose performance, too small a muffler and you lose performance.”
Schwartz mentions that European regulations are also a driver for quieter equipment and, specifically, Germans (Stihl is a German company) are particularly focused on creating low-noise equipment.
But there are other advantages to the
TECH TIPS
new lines of quieter equipment. Advocates for battery powered equipment, rather than merely electric equipment, also cite having no cord or emissions to deal with as being collateral benefits.
“You climb in a tree with a 100-foot cord, or if you are working on a ladder, and you have a cord hanging down, that is not good,” says Ed Dwyer. “With battery powered equipment, you don’t have to worry about a cord.”
Dwyer also says going in the battery powered direction is a trend one is seeing in commercial equipment these days. There are other benefits to the low sound output of a battery-powered unit as well, he says. “Without the noise, operators can actually start that earlier in the day and go later. And with batteryoperated lawnmowers, there are no emissions and operating costs are way down. It is environmentally friendly. You see cars going that way, too.”
Manufacturers who are selling quieter equipment like to mention that the cranky neighbour is not the only one who needs to be satisfied with noise levels. There are other settings in which landscaping equipment is used, like rooftop gardens, hospital grounds, indoor landscaping areas, hospitals and parks. Condominium complexes are another setting that may be steering product development towards quieter landscaping equipment.
“It is definitely going quieter, especially with the condos. They do not want the noise,” says Peart. “You can work right next door to a guy’s bedroom, and he won’t know you’re operating anything.”
Another place where landscaping and noise sensitivity converge is on the golf course. “I’ve noticed battery-operated greens cutters on golf courses,” says Ed Dwyer, an avid golfer. “People are golfing and they do not want to hear a gaspowered edger going.”
Another advantage of using the battery-powered units is the education factor. Dwyer says when dealing with clients with a gas-powered unit, “You have got to give him mixed gas, you have got to talk to him about hearing protection –you have got to educate him.”
Schwartz differentiates between the casual equipment user and the professional. “Construction crews have not
seen the demand for low-noise equipment,” he says, citing the fact that crews are wearing hearing protection anyway. “On the jobsite, they want tools that will perform. The guys using our Cutquiks, for instance, do not care about noise.”
As equipment becomes more efficient, and quieter, some believe that quiet means less powerful. ”You’re paying the same price for less performance,” Schwartz says. But others say it all depends on the setting, the user, and the user’s goals. “Not with today’s technology,” Peart argues, saying he does not believe quieter necessarily means weaker. “It is more efficient; a more efficient use of fuel, of course. The whole thing is coming together from every angle.”
And, according to Consumer Reports magazine, though they’re specifically talking about leaf blowers, “The best handheld electric blowers have long beaten their gasoline-fuelled competitors with comparable power and less weight and noise.” However, the magazine follows this up on another page, writing, “For sheer power, you are likely to prefer a gas-powered backpack or wheeled blower. Nearly all the gas-powered blowers we tested meet the tougher new California emissions standards.”
Evidently, even the workers operating the equipment benefit from efficiencies newly built into landscaping equipment. “Some of the equipment has iso-handles just to get rid of the vibration for worker fatigue,” says Peart.
From the manufacturer’s perspective, cost may yet prove to be a factor in how popular low-noise equipment sells.
Schwartz says, “Most of our tools have an optional low noise model. We carry them, and if people need them or want them, they can spend the money.”
Schwartz points out that different types of users have different expectations. Professional users want performance and fuel efficiency, while homeowners tend to be more motivated by a low price point. And he believes that while many people talk up the benefits of low noise equipment, the ultimate motivator is the one usually kept in the back pocket.
“Everybody’s really interested in low noise until they have to reach into their pocketbooks.” CRS
Ready to rent.
Start the year with new Husqvarna products including the DM 220 hand-held drill, K3000 Vac, DC 1400 wet/dry vacuum, AD 10 automatic drilling system and the FS 413 walk-behind saw. They’re sure to be a favorite of your customers — whether the weekend do-it-yourselfer or the professional tradesman. Husqvarna’s construction products are ergonomic, long-lasting and user friendly.
Here’s what the president and CEO of American Rental Association Insurance, Phil Kelling, had to say recently about the Canadian Rental Association’s Protected Self-Insurance Program: “I remember the beginning when the board of the CRA asked me how they could set up an insurance program similar to the one we use to serve U.S. members. We could not do it, but we were able to uncover a unique Canadian solution, the Protected Self-Insurance Program.
by PATRICK FLANNERY
“I have watched over the years as it grew and paid out dividends, and I am jealous. I only wish we had this capability in the U.S. The PSIP does everything that we can do –stabilize insurance rates, provide the best coverage and great service – and as a bonus it gives back to the CRA members and pays dividends to those insured. My only surprise is why more Canadian rental stores don’t take advantage of it.”
Canadian Rental Service asked Western Financial vice-president of commercial insurance Justin Friesen to tell us about this innovative program and explain why it has the Americans looking north in envy.
CRS : Just what does “protected self-insurance” mean?
Friesen : It means it is a partially memberowned program, as opposed to traditional insurance in which the independent businesses purchase their insurance through brokers who are really acting as a middleman between the client and the insurance industry. What the CRA insurance program offers is an insurance product that is tailored for the Canadian rental industry, and the representatives who administer this program have a very insightful knowledge of this industry and the risks that rental dealers face. They have been working with the CRA since, I believe, 1984, so it dates back quite a ways. But what happened in 2006 was the program
had grown to an adequate critical mass that would permit a unique structure, a less conventional structure, that would enable an element of self-insurance. Because of economies of scale and the amount of purchasing power that had risen, it had enabled this protected self-insurance model.
What protected self-insurance avails is, rather than paying all the premiums to insure in the insurance marketplace, which means various major insurance companies would fully control premiums, rental dealers are able to allocate a portion of their premiums to a member-owned, protected self-insurance fund, or loss pool. And what happens is, that loss pool comprises 45 per cent of all the premiums paid. The loss pool is only responsible for absorbing the first half million dollars of any one loss, so what you are doing is, you have a fund that is paid by members that is able to self-insure all these smaller, high-frequency, lower claims, and the insurance company is not even seeing the losses. There is still an element of insurance – we call it excess insurance – and what happens is the insurance company only responds in the event there is a large loss that gets over that half-million-dollar threshold. It really minimizes the impact that claims have on your insurance, because the less you can rely on the insurance market for your claim settlements or for the transfer
of risk, the more stable your insurance becomes. It is about taking control of your insurance. Collectively, as a group, taking control of your insurance, rather than fully succumbing to the vagaries of the insurance market.
CRS : So the premiums may not be lower, but they’re likely to be more stable?
Friesen : The premiums would inevitably be lower, especially when it comes to the value that is offered through a customized policy. The one really huge benefit is, because of this member-owned fund that is replenished every year as everyone’s policy renews, if this member-owned fund still has money in it, it is paid back to members in the form of a premium return. I can tell you, that in the past few years we have already returned over a million dollars back to the rental industry community because this program has performed so exceptionally well.
CRS : Nice.
rental operators the coverage they need. It has brought stability and ratings, and it has actually paid money back.
Friesen : It is a very strong statement. This program and this structure is tried and true. It is a very proven structure and it has done amazing things for the industry. It has given
Another thing we are doing as the administrator of this protected selfinsurance program is we are assuming a lot of the administrative responsibilities of the insurance company. We are taking it under one roof and controlling it. What is really important in this structure is effective risk management, because we understand if we
can control losses and help participants of this program to reduce losses and reduce claims, then ultimately what you are doing is enhancing the potential for members to get money back at the end of the year. So we are very diligent and proactively working with the rental industry to help reduce losses. We have a department headed by Ken Fingler, who’s our director of risk management, and he has a team of eight individuals that exclusively work on inspecting our clients’ properties, just helping them to ensure they are exerting a proactive protocol.
CRS : So Ken is going to go out and he is going to recommend where they could do better on safety.
Friesen : That’s right. Yes, safety measures, processes, procedures. It is often just about exerting the proper procedures and maintaining the proper logs, so that if an incident occurs, there is a basis to defend. This is the money of independent businesses but, collectively, a difference can be made. So if everyone is on the same page and understands they can benefit through the performance of this program, and
Justin Friesen
says, “I have a stake in this, this is my program,” there is a completely new attitude to managing risk.
CRS : What are some of the special circumstances that make rental a difficult industry to insure?
Friesen : I think what we’ve seen is over half of rental dealers that have insurance through the open market assume they have the right coverage. Their brokers might be good brokers, but the fact of the matter is the brokers just do not understand the particular exposures that are very unique to the rental industry. One of the most common is that rental dealers have equipment that is going off their yard, and what happens in most insurance policies is that coverage for equipment is excluded while off premises. Furthermore, even if they have a special equipment floater, there is also wording that stipulates that coverage is excluded while on rent. And so it is critical that policies have off-premises coverage. Now, there is no argument whatsoever that our policy has off-premises coverage. A lot of brokers think they are giving off-premises coverage to rental dealers, but they are not. There are wordings in there that will exclude coverage while it is on rent. So we have an off-premises rental equipment floater.
CRS : So what is going on out there is people are buying insurance, saying, “OK, my equipment is insured…”
Friesen : And it is not covered when it goes out on rent.
CRS : And the minute it goes out on rent, which is the only place it is going to get damaged anyways…
Friesen : That primary exposure is not being covered.
CRS : That has to be a huge problem.
Friesen : Yes. There is another exposure called theft by conversion. We sometimes call this the long-term rental that never ends. What happens is, because of the way contracts are written, if an individual rents a piece of equipment and simply never returns it, it is regarded as theft by conversion and there is no coverage for that unless it is specifically added to the policy. We provide coverage for theft by conversion on all policies. So equipment that goes out on rent and just simply does not come back because it has been stolen will be covered.
CRS : Other insurance companies, with all of their actuarial geniuses, must have looked at the rental industry and decided, no, there is no way we can make viable premiums and still cover the incredible amount of risk these people are taking by renting this equipment off their yards. How have you guys managed to get around that?
Friesen : One thing that really plays a huge role is the risk management, so the very fact that we understand the rental industry and we ask a lot of questions when someone is entering the program. We take a consultative approach to selling insurance, and our aim is really to help rental dealers understand what they are buying. But by reviewing the risk thoroughly and helping rental dealers understand risk, I think we have tremendously impacted the losses of this industry. The rental industry
has always been branded as an undesirable risk, and it tends to be one of these industries that gets hit very hard when insurance rates increase. The insurance industry circulates between hard and soft markets. I can say right now, we are probably at or nearing the tail-end of a soft market, where rates have been relatively low, but when the hard market hits – and it is typically outside market factors that are out of our control that cause an insurance market to increase – these so-called undesirable risks such as rental dealers get hit very hard. And in some cases they cannot even buy insurance. Most people in Canada who have been in the rental industry for 10 or 20 years will remember those days, and they may come again. But this program has proven very well. We can see because of the transparency that exists that there are surpluses at the end of policy years because the risk is being managed. We know the rental industry is not as undesirable a risk as people have made it out to be. Furthermore, when this hard market does hit again, where would you rather be? In the open market with a broker who does not necessarily understand your industry? With an insurance company that is not necessarily interested in writing your risk when the hard market ends? Or in a program that is pooled with hundreds of other members of your industry, that is performing exceptionally well?
When we talk to rental dealers, when we are able to get them on the phone and they really understand how this works, they are very impressed by it. I can tell you that when rental dealers join this program, they do not leave. Our retention is exceptional in this program.
CRS : Because you have to manage your risks so carefully, are there a lot of additional restrictions that some rental dealers might find onerous?
Friesen : You know what? I can say absolutely not. And once rental dealers understand the simplicity in exerting risk management and are offered the guidance in exerting this risk management, they are very willing to undertake it. I mean, they want to manage their business effectively. It is their greatest asset, so when it comes to managing risk, it is something they want to do, and they very much appreciate it. It is simple things, like, are you giving proper instructions on the use of your equipment? Is your maintenance schedule of the equipment being properly maintained so there are proper records? And a lot of these risk-management things, for instance, these ready-to-rent tags you can put on your equipment, these types of things are very helpful.
You know, it has a lot to do just with proper maintenance, proper instructions and fire safety. Our representatives will conduct an inspection of the premises and maybe there are simple housekeeping measures that maybe are just being overlooked just because you are there every day and you just do not notice it. You know, it is a third-party eye just to provide some assistance saying, “Hey, have you ever thought of that? Or have your fire extinguishers been checked recently?” Those types of things. CRS
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When the drill bit is matched to the power tool, holes can be drilled much faster. The new Hilti TE-CX hammer drill bit generation features an innovative helix design and special solid carbide head, optimized for each diameter range, achieving unbeaten drilling performance with the TE 6-A36-AVR.
The TE 6-A36-AVR batteries and chargers are also covered by Hilti’s lifetime service, a unique service agreement that includes two years of no-cost coverage. With Hilti tool fleet management, the tools and batteries are covered for three years, including wear and tear.
FAST GROUND THAWING
Booth 225
www.serioustoaster.com
Serious Thermal Products has introduced the new Complete Heat System for use with its Serious Toaster ground-thawing machines. The system features a heavy-duty cabinet that houses
everything needed to run up to five Toasters at one time, simplifying any application requiring more than one ground-thawing unit.
Rather than having to supply propane and electricity separately to each Toaster ground-thawing unit, the Complete Heat System maximizes convenience by supplying everything in one package. It includes storage to contain a 250-gallon propane tank (or “pig”), all necessary hoses to connect propane to five Toasters, a generator with extended gas tank, all electrical cords, and propane-tank heaters to keep the propane vaporizable in extreme cold weather conditions. Beyond the added convenience, the system also includes lockable cabinet doors to help prevent vandalism and tampering.
The Complete Heat System is skid mounted and includes an integrated lifting eye for portability. Depending on end-user preference, it can be either welded or bolted down to the bed of a trailer and easily towed from one jobsite to the next.
Serious Toaster ground-thawing
machines use a patented infrared technology to thaw frozen ground more than three times faster than similar products on the market. Each Toaster thaws up to 1.6 inches deep per hour in a two-foot by 10-foot area. They are ideal for work on underground installations, utility maintenance or any other winter application that requires excavation.
FULL RENTAL SOFTWARE SUITE
Booth 1109
www.texadasoftware.com
Systematic Rental Management (SRM) from Texada Software is a full-function package that effectively manages all rental operations from counter to customer with full web integration, complete financials and back-office and full fleet management from purchasing through maintenance to disposal. Streamlined workflow and improved efficiencies translate directly into benefits that positively impact your bottom line. Nothing risks revenue like making customers wait at the counter or on the jobsite. SRM offers reliable system performance and quicker contract generation, with fewer keystrokes, greater accuracy and less wait time. CRS
The Canadian Rental Mart trade show takes place every other year and draws rental equipment operators from
Canadian Rental Mart trade sh show ow takes es every ry other er year and draws l from across the area. In addition to some 200 h spaces, there is an educational seminar each as well as s a b(hdbh C diR lA i i ) d d
Plan to be a part of the show. There is still booth space available and we would love to have you as an exhibitor.
Welcome to the big easy
by George Olah
The beginning of the new year ushers in a slew of trade shows. It is truly remarkable how many people attend certain conferences just out of habit. Some of these events are valuable opportunities to learn about new products. Others offer nothing more than an excuse to get out of the office to spend a mindless day or two wandering about a bunch of equipment, or looking at presentations demonstrating how pink pieces of exotic cloth are able to suck up the equivalent of Lake Erie in a single wipe. Many attendees hope to score a free hat or pen — hardly a good business rationale for investing time and money.
Ask yourself what it is you really want out of a conference or trade show. Good conferences and trade shows provide notable keynote speakers offering something unique for attendees to listen to, take away and apply the information to their daily business operations. Presentations may have to do with life lessons, ethics, something the individual did during a time of conflict, a famous author or a special sports person spinning interesting stories that led them to win as part of a team. You are entitled to something more than the local mayor or councillor welcoming you to their city with the old boilerplate, “Thanks for showing up in my beautiful town.” Look for that really special speaker at the conference.
I have been known to attend many a conference simply because of a great golf course that was being featured as an off-site event. Ask yourself if using this rational to choose a trade show is actually worth your time and money to further your business. If you do like golf both for the sport and because you know how to do business on a course away from the office, then make sure that the conference picks a good one and not some farmer’s field turned into a par three mini putt, since that, too, would be a waste of time.
One way to squeeze the best out of a show is to sit down ahead of time and write down what you want to see while at the event. Use the show syllabus to find all the different manufacturers who will have what you want to see. Consider calling the sales personnel in the booths in advance to set up an appointment to
see them at the show booths. Don’t you hate travelling all the way to the show and then having to stand around waiting for the sales staff to answer your questions, or to find out that the technical person left for coffee break five minutes earlier?
Write down what questions you want to ask about the product, not just the price. Remember, when you are at the booth you will have difficulty getting your questions answered during a fasttalking salesperson’s presentation. And for goodness sake, don’t start complaining about your 20-year-old product at the booth. No one wants to listen to you right then. Record your answers in your book of questions for review later.
Don’t forget that a good deal on the trade show floor is not always such a great deal by the time you get it home, especially if you have to pay brokerage fees, exchange rates and freight to bring it back into your shop.
Do ask if what you are buying at the show is approved for use in Canada. Quite often, items are a good buy because they lack the approvals for use here. Then again, you may want to buy it and get the approvals yourself if you think it is worth it to your business. Make that part of your show checklist.
Deciding to attend trade shows and conferences must be done strategically. Competition in today’s business environment is fierce and money is tight. Don’t fritter away precious time and resources on snap decisions based on lastminute deals on air travel.
Prepare yourself in advance. Wear sensible shoes. Don’t overindulge the night before. Keep your smartphone GPS charged and handy. Do carry the geeky binder with your notes. Finally, don’t forget to bring back a fistful of free show pens so your office staff will believe you attended the best conference ever. CRS
George A. Olah has more than 35 years of experience in the training, marketing, and renting of commercial appliances and equipment. He is presently the general manager of operations at ABCO Equipment & Supplies, a family-owned rental company located in Weston, Ont.
