The STIHL TS 420 is a light and convenient 3.2 kW cut-off saw with a 350 mm cutting wheel for use on all types of jobs. The innovative long-life air filter system with cyclone air routing ensures an extremely long filter service life and increases service intervals. Low vibration levels makes working with this model less strenuous.
The TS 500i is equipped with STIHL’s fuel injection technology which provides a simplified starting procedure - no choke, just purge and pull. It combines precision, efficiency and user-friendliness with cutting-edge technology. The X2 low-maintenance air filtration system allows filters to enjoy a long service life and ensures effective engine protection. Its electronic water control remembers the last setting used - water flow adjusts easily while in operation and no water at idle. So you can focus on what matters most - your work.
*Withoutfuelandcuttingwheel.
For over 90 years, STIHL has been a world market leader and innovator in outdoor power equipment. German engineered products featuring the latest pioneering technologies make STIHL the preferred choice for professionals, consistently providing uncompromising quality. STIHL products are only available at independent STIHL Dealers who provide personal advice and expert service. Thank you for the continuous support and for making STIHL the brand you trust.
* “#1 Selling Brand in Canada” is based on an independent market share analysis of gasoline-powered handheld outdoor power equipment from 2016. Source: TraQline Canada.
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(800) 265-2827 or (519) 429-3966 Fax: (519) 429-3094
EDITOR I Patrick Flannery pflannery@annexweb.com (226) 931-0545
SALES MANAGER I Ed Cosman ecosman@annexweb.com (519) 429-5199, (888) 599-2228, ext 276
Canada- 1 Year $42.00 (plus 5% GST - $44.10) U.S.A. - 1 Year $60.00
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Millennials
C&T goes party...Brandt invests in Saskatoon...CRA Insurance changes hands... New blood at Weber...
Tier
Solid
DRIVEN BY DEMAND At Shediac Rentals and Sales, the customer drives the bus.
Trowels, grinders, hammers, saws and more... 22
Incredible
No mystery to Millennials
Just think of young people as smarter versions of yourself.
Still lots of expert talk about millennials. No seminar program at a large event is complete without sessions telling us how to motivate them, how to retain them, how to find them and how to sell to them. What do they want? What do they like? One pictures a curious crowd of baby boomers peering through the glass at a captive millennial in a zoo, wondering what it eats.
I don’t think the habits of millennials can be all that exotic since they are, at the end of the day, simply young people. You know, like we all were at some point in the distant past. Many of the complaints and observations I’ve read about millennials are simply reruns of the same comments every generation has made about the one following. Compared to us, the young people are always lazy, irresponsible, intellectually shallow and focused on all the wrong things. Some of this is accurate, as young people are young people and by definition still have much to learn. And some of it is unfair and, dare I say, motivated by jealousy.
My observation of young people coming out of schools today is that they are superior to us in almost every respect. Smart, good-looking and remarkably healthy emotionally. Fewer problems with law-breaking, violence and substance abuse. Better educated. They lack only experience. Yes, the period of adolescence has been extended in this age of plenty and
ON THE WEB:
Submit your nominations for Top 10 Under 40
Do you know a Millennial who is making a difference at a Canadian rental store? You can nominate them online for recognition in our Top 10 Under 40 special feature, appearing in the August print edition. Just hit the link at the top of our home page.
Plug in to the Rental Mart
Preparations are already under way for the 2018 Canadian Rental Mart with a new venue, a new-look website and never-before seen training opportunities for you and your staff. Follow canadianrentalmart.com for details and updates all year.
by Patrick Flannery
few millennials are as committed to mortgages, careers and families as we were at the same age. Is this a sign of weak character or greater intelligence? People today can expect to live almost 10 years longer than they could when I was in my 20s. It sure makes more sense to me to use that time to extend your period of freedom and fun when you are young than to extend your time in the retirement home at the other end.
So I think that rather than being different from us, millennials are presented with a different set of circumstances. Here’s a quote from Frank Martin, University of South Carolina head basketball coach: “You know what makes me sick to my stomach? When I hear grown people say that kids have changed. Kids haven’t changed. Kids don’t know anything about anything. We’ve changed as adults. We demand less of kids. We expect less of kids. We make their lives easier instead of preparing them for what life is truly about. We’re the ones that have changed.”
I think that’s pretty much dead on. So if kids haven’t changed, why are business owners having such a struggle reaching them? It’s because the kids’ circumstances have changed and they are, as I opined above, smarter, better balanced and possessing a clearer sense of their own selfinterest. They are not going to accept unpleasant working conditions because of some hard-work ethic designed to benefit the employer and not the employee. They are not going to sacrifice their experience today in order to get ahead at a company because they have no illusions about loyalty. They know they will likely jump from company to company for many years before settling into a long-term position. They don’t trust employers to reward loyalty with loyalty and understand that the financial and economic conditions around a business will determine whether they have a job or not. And they have options.
Bottom line: they value their time highly and won’t be taken advantage of. The millennials are the same as we are and want all the same things. They are just a heck of a lot better at getting them. CRS
C&T ADDS EVENT RENTALS
C&T Rentals & Sales has launched an Event Rental Division led by Kelly Dwyer, daughter of C&T founder, Ed Dwyer. This new division was launched in Winnipeg in April of 2016 and is located at 115 Scurfield Blvd. This newly renovated facility was C&T’s initial general equipment and tool location. C&T Event Rentals offers a variety of high-end event rental products including chairs, tables, dishes, cutlery, linens and more.
“I saw a need for more varieties of upscale event products with the capability to supply larger quantities in a growing Winnipeg market,” said Dwyer. “Clients had to go to one store for one colour of chair and an alternative store for another and then struggle to find the correct quantities they required in the busy summer season. Our vision is to work with other event rental stores in Winnipeg and not have event products brought in to the Winnipeg market from out of province.”
Dwyer has a business administration diploma from Red River College in Winnipeg. She is currently the Manitoba national director for the Canadian Rental Association board of directors and has been active the rental industry for the past seven years.
“Now that our clients know that we exist, our Event Rental business just keeps getting busier and busier each week” Dwyer says. “It’s been great!”
NEW LEADERS AT WEBER
Weber MT has announced its new leadership team for Weber MT North America. Todd DeWindt joined the Weber MT management team on March 13 as the North American sales director.
DeWindt is a former employee of Yanmar and Terex and has more than 20 years’ experience in the construction equipment industry, from dealership to regional management at the manufacturer level. He understands the business and how dealerships operate. DeWindt has always covered very large territories with multiple dealerships as well as national accounts. He is excited to be part of a family-owned manufacturing company that makes quality and customer service its top priority. Angela Ellingwood has been promoted to marketing operations director for North America at Weber MT headquarters in Bangor, Maine. With more than 15 years’ experience in leadership, marketing and international business, Angela is excited about this new role. The goal is to ensure end-to-end marketing optimization in a more accountable manner.
“Since marketing and operations are intertwined and so closely connected, conflict within these two areas could cause inaccurate demand and supply, inefficiencies and unsatisfied customers,” Ellingwood says. “With customer service being our number one goal, these two areas must be in synch to improve the company’s competitiveness and profit.”
The idea of this new leadership structure is to close the loop between sales and marketing/operations. Both DeWindt and Ellingwood are looking forward to increasing brand awareness of Weber MT North America-wide through strategic collaboration of both divisions. They know that Weber MT’s success depends on the customer’s success, so gaining a greater understanding of shared values and cultivating long-term partnerships will be a key part of this transformation.
WESTERN FINANCIAL BOUGHT BY WAWANESA
Trimont Financial – a subsidiary of The Wawanesa Mutual Insurance Company – has agreed to acquire Western Financial Group and Western Life Assurance from Desjardins Financial Corporation for a total transaction value of about $775 million. Western Financial administers the Canadian Rental Association’s protected self-insurance program. The transaction includes Western’s primary business units: its brokerage network, Western Financial Group Insurance Solutions, Coast Capital Insurance Services and Western Life Assurance. It is subject to standard closing conditions, including regulatory approvals, and is expected to close in the third quarter of 2017.
“Wawanesa has a long history of supporting the success of insurance brokers, and this investment reflects our continued commitment to the broker channel,” said Wawanesa’s president and CEO, Jeff Goy. “Today’s announcement will ensure that Western Financial Group remains a trusted, familiar local broker in communities across Western Canada.”
Goy noted that Western’s brokerage network will continue to offer customers a broad range of products from a wide range of insurers and will continue to operate under the Western Financial Group name. There are no plans to close or relocate any of Western’s existing brokerage locations. All of the Western companies will continue their respective regular operations.
“Western is a great organization with a great team behind it. We want to thank them for their commitment and continued hard work. We are also pleased that ownership of Western will remain in the cooperative-mutual sector, given Wawanesa’s shared values and customer focus,” said Denis Berthiaume, Desjardins Group’s COO. “Within Desjardins, we remain committed to our other distribution networks and partnerships across the country and focused on growth with them,” he added.
INDUSTRY NEWS
LARRY MCCOURT 1953-2017
Larry McCourt the former owner of City Rentals passed away March 9. Larry was a long time rental professional who started his career with Capital Equipment back in the late 1970s. Larry was very well liked and respected by his employees, customers, suppliers and competitors in the industry. He contributed greatly to local charities and service clubs in his community. After his tenure at Capital Equipment Larry held several senior positions within other rental companies such as City Equipment, Cooper Equipment and United Rentals. In 2005, Larry started his own very successful rental company along with Scott MacKinnon called City Rentals. City was subsequently acquired by Cooper Equipment Rentals where Larry continued to work in a senior management role until his retirement in late 2015.
BRANDT MAKES MAJOR INVESTMENT IN SASKATOON
The Brandt Group of Companies has entered into a binding agreement with U.S.-based industrial liquidator for the former Mitsubishi Hitachi Power Systems Canada facility in Saskatoon, Sask. The entire 22-acre parcel, located in the city’s Hudson Bay Industrial area, along with its 208,000 square-foot manufacturing facility and all of its highly specialized equipment will make the transition to local ownership for an undisclosed sum. It is believed that Hitachi has invested hundreds of millions of dollars in the world-class gas turbine and wind generation equipment manufacturing facility since its construction in 1988. The plant features the largest machining and fabrication equipment in Canada and has produced power generation equipment for customers around the world, including SaskPower.
“We realized that it was critically important for us to move quickly,” says Brandt president, Shaun Semple. “When we learned that the Hitachi assets were going be broken up and sold off in spring, we had to act fast or the province would lose a world-class facility and the ability to produce large-scale green energy products.
With almost 400 workers already out of work as a result of the plant’s decline and final closure in October 2016, an auction and liquidation would have assured long-term unemployment for the highly skilled local workforce. With Brandt already constructing a world-class engineering facility in Regina and looking at further expansion possibilities in that city, the Saskatoon facility presents an excellent additional opportunity for growth and diversification. It is our plan to reintroduce green energy technologies such as wind turbines to assist SaskPower with its mandate to diversify beyond traditional fossil fuels. We will be sitting down with the provincial government, the city of Saskatoon and SaskPower to see what can be done to save this valuable asset. But, we’re just getting started; there is a lot of work still to be done to guarantee a successful outcome.”
The acquisition of this facility will bring Brandt’s manufacturing footprint in the province to over 500,000 square feet, split evenly between Regina and Saskatoon.
“Except for Brandt’s new engineering centre, currently under construction, we have temporarily suspended our other expansion plans in Regina until our manufacturing future planning is complete and a number of development issues are worked out,” concludes Semple.
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Recognizing the next generation of the Canadian rental industry!
Canada is full of young, skilled and knowledgeable people who are driving the rental industry forward. From mechanics and store managers, sales representatives and event planners, they are the best and brightest in our industry. Join us as we celebrate the future of rental in Canada.
The Canadian Rental Service Top 10 Under 40 will recognize the achievements of the newest generation of rental industry owners and workers. Strong work ethics, leadership by example and efforts to grow the quality of our industry will be acknowledged.
WHO CAN BE NOMINATED?
Anyone who works in an equipment or event rental operation in Canada who will be under the age of 40 as of December 31, 2017.
ACROSS THE INDUSTRY, from equipment and party rental businesses to equipment suppliers and service providers, we all face a single overarching challenge – finding the next generation of innovative, dedicated talent to drive the industry forward. Join us in celebrating that talent!
DATA SHEET
IN NEW CONSTRUCTION IN CANADA – 2013 TO
RECENT CONSTRUCTION TRENDS
A look at the Statistics Canada construction investment numbers above gives a small snapshot of how the most important industry driving rental activity has moved over the last few years. Residential investment, including high-rises and multi-family units, moved ahead of nonresidential investment in early 2015 after two years of trailing. A look at the provincial breakdown shows the surges in Ontario and B.C. that fueled the jump even as
Alberta investment slumped. Non-residental investment has shown a gradual decline over the last four years as government stimulus programs put in place after 2008 have wound down.
The recovering importance of residential homebuilding might suggest rental stores would be well advised to stay stocked up on equipment for DIY renovation and small contractors going forward.
DRIVEN BY DEMAND
The Bruns use customer input to fuel Shediac Rentals
It’s been less than a year since Matt Brun left a career in the insulation business to open Shediac Rentals and Sales, but he already knows it was a good choice. “I just love my job,” he says.
“I’ve been in attics doing insulation, and it can be the worst.
by JORDAN WHITEHOUSE
I would rather work 60 hours here than 20 hours in a fibreglass-filled attic. And I think people can sense that when they walk in. It’s just all smiles.”
They can also probably sense that just by looking around the store he owns with his dad Eddie and runs with store manager Mike Leger. Outside, the new story-and-a-half building sits on a well-landscaped, grassed lot on Shediac New Brunswick’s Main Street. Depending on the day, there might be an ATV, a compact loader or a wood chipper out there. Inside, it’s bright, open and clean where you could find generators along one windowed wall, a table saw and power tools along another, and lawn care and fishing equipment not far away.
Visitors will also get a pretty quick sense that the new business decided on a tactic that wasn’t being used by the bigger, more specialized rental shops in nearby Moncton. “Ever since opening on July 1, Mike and I have talked to people in our town to find out what they need,” says Brun. “So if people come in, ask for something, we get it, instead of assuming what they need. If you try to force feed something from a different town, it’s not going to work. So for us, that’s meant such a blend of inventory, everything from lobster cookers to fishing shanties and construction tools. And it’s the same for sales: don’t try to sell something that your town doesn’t really need or that three people down the road have.” He estimates that half of their customers are homeowners and tourists, half are contractors.
Another reason why they don’t cater to a specific set of clients is that there isn’t another rental shop in Shediac. Which, not surprisingly,
was a big reason why Brun wanted to launch this business in the first place.
Before seeing that hole in the market, though, he had been looking around at businesses for sale for three or four years. “It’s a weird one, I know, but it’s actually one of my hobbies. If anything sounded good, I might have jumped into it. We looked at everything from campgrounds to golf courses. A lot of it sounded fun, but not very lucrative.”
A rental store, however, he thought, could be a solid business. The only problem was that there was no rental business to buy. Unfazed, Matt and his dad found an old house on a busy strip not far from the famous Parlee Beach and tore it down. In its place, they built a 3,500-square-foot building, about half of which is the storefront, the other half being storage for the business’s seasonally rotating inventory. They also built a large storage building behind. “A lot of people were saying, ‘Wow, building all of this is pretty elaborate for your first year,’” says Brun. “But if you look in Shediac, there was nothing to be rented. And if you look at my mortgage, it’s a lot cheaper than most rents because I did it myself and I had a background in it.”
That background included 15 years in his family’s insulation business, Excel Weatherseal Insulation, where Matt worked his way up from labourer to a job running the business with his dad. When he left, he had a solid list of business contacts to get him started at Shediac Rentals and Sales.
Those contacts weren’t everything, though, not by a long a shot, he says. “The tools I didn’t know too well in terms of where do you get a thousand
different tools from a thousand different places.” He found his answers with help from Nancy and Randy Crosby at Classic Rentals in Truro, N.S., and his broker at Rentquip, Dan MacIntosh. “They also helped me avoid certain mistakes that would be crucial in your first year. They told me to take it slow, listen to your clientele, and they told me about certain pieces of equipment to avoid, which, instead of listening to, I got into – but only because the clientele wanted it.”
Mike Leger has been huge, too, he adds, putting to good use his 30 years at Prime Fasteners, the largest distributor of pneumatic fastening equipment and
power tools in Atlantic Canada. It’s just the two of them here remember, both working upwards of 50- to 60-hour work weeks apiece.
“One thing I learned in business is that you have to keep a tight ship, so that’s why with two guys we work a lot,” says Brun. “But it’s like a family relationship and between the two of us it’s been going really well. I don’t think either of us would have done as well apart but together we complement each other and it works.”
The two had to delay opening for a couple of months in the spring of 2016, but ever since throwing open their doors on Canada Day, business has been good,
says Brun. “I thought in the wintertime it would slow down a little bit, but it’s picking up slowly and mostly because people are catching wind of us. More and more people are finding out about us, so it’s been very positive.”
They’ve been finding out about them through word-of-mouth and standard advertising, not to mention Brun’s knocks at their doors. He hasn’t yet finished his canvassing of local business that might need Shediac Rentals and Sales, but his intention is to hit every one, shake hands with the owners and tell them that he’s the new kid, willing to do almost anything.
Brun and his father purpose-built the store when they couldn’t find any good rental options in Shediac. Shediac is a great place to visit (try the lobster!) but the town’s permanent population is only around 6,000. Photo by Jordan Whitehouse
Once they call him back or stop by the shop on Main Street, the goal is to do whatever it takes to supply the equipment they need, whether that means getting it in-house or finding it at a nearby company, and showing them how to use it if need be.
The latter part of that goal can sometimes be a challenge since Brun and Leger are still learning the intricacies and best ways to use every piece of equipment they have. But, as most do-it-yourself homeowners know, there is a video out there for learning how to use almost anything. Realizing this, the two installed a large flat-screen television behind the counter where they can show how-to videos to people who need tips. “We had a guy who wanted to do the backsplash for his shower and had never done it before,” says Brun. “I had never done it before either, but we had all the tools. So we used a how-to video that he stayed to watch. He left very confident and came back to say that it worked like a charm.”
As for the future of Shediac Rentals
and Sales – and the industry in general – Brun sees technology like those how-to videos playing a bigger role in the business. He also sees a refinement of how he and Leger have tried to do things since the beginning. That is, renting and selling only the tools and equipment customers
need and making every customer feel welcome, whether they’re contractors, homeowners or tourists. “I’d be stupid to guess at the future of something that I’ve only just started, but the only thing I can do is try to be the nice place to go, try to cater to everybody and make everybody feel at home. We cosmetically made the store so that everybody would feel welcome. It doesn’t matter your gender or age. So our main focus is to try to keep that because the main problem with renting and selling tools and equipment is that people can feel intimidated. But if there is a regular-looking store that’s nice, with shiny paint, that has the how-to videos, the willingness to go out of our way to help –that’s what people want, I think.”
If he’s right, Shediac Rentals and Sales may have to grow. But that shouldn’t be a problem, says Brun. Though they don’t want the storefront or lawn area to become too cluttered, they do have ample storage space in the main building and the one behind. And if they have to store anything offsite in the future, that’s fine, he adds.
“We may not have the land to grow, but whatever it takes, I’m ready to do it.”
And no wonder. The more success he finds here, the more those days of insulating attics become distant memories. “We love our job, we genuinely do,” says Brun. “And when people walk in, we just hope they find it friendly and clean. We tell them right away that we’re just two guys, but that we’re here to help them and that if we don’t have all the answers, we’ll find them.”
Bright and welcoming – that’s the theme in the Shediac Rentals and Sales showroom.
Owner Matt Brun realizes homeowners can be intimidated by stores that look like a service garage. Photo by: Jordan Whitehouse
CRA PRESIDENT’S MESSAGE
SUCCESS LEADS TO SUCCESS
Better shows...better business...better shows.
by HANK MCINNIS, CRA PRESIDENT
Trade show season has come to an end and I must say I enjoyed every show I had the opportunity to attend. Before I go any further I would like to say thank you for doing an excellent job of putting together our Canadian shows to Nathalie, Jenna and Terra at our head office along with the local boards and associate members.
I had the pleasure of attending the Atlantic show, The ARA show and the Prairie show. All these shows have a couple things in common, the first being professional and very informative plus some great bargains. For me though the most important feature is the networking that goes along with the gathering on the show floor and includes the social events.
At the Atlantic show we had our banquet, followed by an entertaining evening from three local comedians. In Orlando there was the Canadian Hospitality night at Cuba Libre with over 450 in attendance. A new record for attendance and everyone was enjoying themselves. This was followed by our regional reception, another sold-out event. The ARA show also featured many social events, Universal Studios and Jay Leno just to name a few. After this I wrapped up my show season with a trip to Edmonton for the Prairie show and banquet.
All my life I have had people telling me how wonderful and friendly Maritimers are. Well, I can tell you that the same can be said for rental people all around the globe. Over the past few months I have had the pleasure of spending time in meetings and social events with people from an lot of different places. I attended the Global Alliance meetings and dinner, had meetings and lunch with the ARA and of course attended all the Canadian events.
In all the conversation I had the pleasure to be included in there was a common theme: the future of the rental industry. Two items that kept coming up were technology and the younger generation (that’s what we old people call you under-40s). As I see it these are really one in the same as you cannot excel in one without the other.
As far as technology goes I think the best teacher and promoters are the under-40’s. Yes, they are the future of this and every other industry out there so we need to embrace them. We need to tap into those young brains for ideas and direction. There are things we can share with the younger generation they have things to share with us.
I would challenge everyone out there to step up and join your local board, whether you are younger than 40 or over 40. Share your knowledge and ideas. Take the step, teach each other. Tells us what you want. Tell us what you think.
According to the ARA Rental Market Monitor the Canadian rental market forecast over the next five years is 5.3 per cent growth. If we work together and share ideas and knowledge I think we can beat that number. But only if we do it as a team.
If we rely on each other then the rewards will come in the form of better business results which will spin off into more happiness and fun at the events mentioned above. We can do this, you can do this. Contact your local board. Share your ideas, or volunteer. The feeling you will get from being part of a successful event or helping out someone makes it all worth it. Add in the knowledge you will receive and the friends you will make and you won’t stop smiling.
Over the next year I hope to meet many more of you and be reacquainted with the people I have already met. I look forward to listening to your stories of success and sharing mine with you. CRS
Hank McInnis is assistant manager at Atlantic – The CAT Rental Store in Dartmouth, N.S. He has been working in the rental industry for 13 years.
MIXED BLESSINGS
Tier 4 is good news and bad news for equipment owners.
In 1994 the United States Environmental Protection Agency (EPA) federally mandated higher standards for off-road diesel engines, better known as Tier 1,2,3 and 4.
by KRISTEN WILLIAMS, EXECUTIVE DIRECTOR OF THE INDEPENDENT EQUIPMENT DEALERS ASSOCIATION
These mandates have sparked ongoing dialog among equipment owners, manufacturers, and dealers. Everyone knew these new regulations would affect their businesses, but up until recently no one knew exactly how.
With Tiers 1 through 3, engine manufacturers were able to meet the EPA’s standards through advanced engine designs and, in most cases, without the use of exhaust gas aftertreatment. However, Tier 4 changed off-road diesel engines forever. The engine found in Tier 4 machinery is no longer the mechanical engine everyone is used to working on. They are now electronically controlled and make use of an engine control module (ECM) to regulate an aftertreatment system that is responsible for controlling soot and nitrous oxide gas released into the environment. These changes mean new machinery will
produce almost 90 per cent less pollution than previous models. However, all the new technology found on Tier 4 equipment is creating concerns for equipment owners, especially those with large fleets like rental companies. In addition, the average price of new Tier 4 models have increased by as much as 20 per cent over previous Tier 3 units.
EFFECT ON THE USED EQUIPMENT MARKET
For Canada’s rental industry, Tier 4 standards could have both a positive and negative impact on business. Rental companies are paying more to add new equipment to their fleet, but used inventory is retaining its value better than it has in the past. According to a recent worldwide member survey conducted by the Independent Equipment
Equipment dealers are split on whether Tier 4 equipment will retain its value better or worse than older designs. A lot depends on whether the market settles on a favourite design or continues to build engines with several different approaches.
Tier 4 regulations may drive up the price of your used, non-Tier 4 equipment in the short term. But in the long term, they are likely to cost you money with higher maintenance requirements and possibly poor resale value.
Dealers Association (IEDA), its members see a significant increase in demand for pre-emission (Tier 3 and older units) machinery and they predict the trend to continue for the next several years. Some of the equipment categories seeing the highest
demands include excavators, backhoe loaders, wheel loaders, dump trucks, dozers and compact equipment. For many of these categories, used equipment prices have increased as much as 20 per cent in the last couple years, primarily because low-hour
units are getting harder to find. Kevin Fox, IEDA’s president and owner of DeWitt Equipment in Barrie, Ont., says the Canadian used equipment market is following the same trends seen in the United States and other parts of the world. “From rental stores to contractors, everyone is hanging on to their older machinery longer than they have traditionally done in the past, and that’s causing a shortage in the used equipment market,” Fox explains. “With the higher prices on new equipment, we’re seeing more contractors buying preowned machines, creating a higher demand. It all adds up to higher values on used equipment.”
Greater demand for used equipment is good news for sellers, but it is unwelcome news for buyers. While the IEDA predicts pricing on pre-emission equipment to stay strong for years to come, there will be a point in the future when the value of these older units will drop quickly. “These inflated prices will not last forever, and no one wants to be the one who overpaid when values start to go down,” adds Fox.
CAUSE OF THE DELAY
In the United States, all equipment manufacturers were required to make the switch to Tier 4 at the end of 2015. Canada operated on a slightly delayed timeline. However, most manufacturers have already ushered in Tier 4 models to the Canadian new equipment market.
While the increased upfront investment and an unfavourable currency exchange rate has a lot to do with the delay in
AN OPTION FOR EVERY JOB
fleet owners embracing Tier 4, many are putting off purchasing new equipment out of maintenance and service concerns for these new machines.
“Speaking with equipment fleet owners, there is a lot of concern about diagnosing and repairing these engines,” says Cori Petersen, a director at the IEDA and owner of Headwater Equipment Sales and Rental in Coalhurst, Alta. “Right now, there is a lack of qualified mechanics to work on Tier 4 machines, so
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work that used to be performed by service techs at a rental store now involves having to call a new equipment dealer or a manufacturer. That of course means service and repairs are costing them more, which increases the total cost of owning that machine. Also, since there is a lack of people to work on Tier 4 equipment, fleet owners are experiencing longer than normal downtimes because they have to wait for service.”
Another reason for the delay in embracing Tier 4 equipment is simply because many small to mid-size construction companies are slow to adopt any new technology. It’s a trend that has held true for many, many years.
SHIFTING MARKET
With all the reasons behind the market’s delay to switch to Tier 4 machinery, eventually these new electronically controlled diesel engines will gain acceptance. “We already see a shortage of quality pre-emission equipment in some categories,” says Fox. “At some point, there will not be any good machines left and everyone who is holding out on buying Tier 4 machines will have to accept the new technology. By then, I think we’ll also have a lot more trained mechanics who are able to work on them.”
While not widely seen yet in Canada, there are some projects in the United States now requiring contractors to use Tier 4 compliant equipment or pay a fine. Currently, these projects are typically government related and will certainly have an impact on companies working in the public sector and the rental companies that are supplying equipment to them.
SELL HIGH – BUY HIGH
Petersen says that just like contractors, rental companies have made the decision to hang on to their existing (pre-emissions) machines longer than they normally do. “At this point, many rental stores have concluded that the added costs for Tier 4 models, and the added maintenance and service costs associated with Tier 4 engines just aren’t worth it,” he adds.
For rental stores hanging on to their equipment longer, they must decide when they’ve reached the tipping point, meaning at what point does the higher value of their current equipment outweigh potential maintenance costs they will likely incur as their fleet ages and racks up hours. If they wait too long, they risk seeing the values of these older units drop because they wind up with
2017-03-31 7:47 AM
more hours than what used equipment buyers are willing to pay for, or the market could shift on them in favour of Tier 4 models.
Of course, whenever they sell, rental companies will pay more for similar replacement machines. It’s a reality that every new equipment buyer is going to have to face at one point or another. “The cost of doing business for rental stores is going to get more expensive,” says Petersen.
PREDICTING THE FUTURE
The IEDA survey regarding the impact of Tier 4 machines on the market also asked members about the future resale value of these machines. IEDA member responses were mixed. Around half surveyed feel like Tier 4 machines will continue to hold the higher values that owners paid to purchase these units. The other half of respondents believe the first few model years of Tier 4 machines will not hold their values well.
“It’s difficult to predict what’s going to happen,” says Fox. “A lot of engine manufacturers are using different ways to treat pollutants, so the aftertreatment systems vary by make and model of machine. It’s hard to imagine that all of these approaches will survive over time. At some point, one approach or another will be the way everyone does it. And machines that use technology that the industry didn’t embrace will likely not hold their value very well.”
IEDA members are also concerned about how Tier 4 machines will hold their value over a lifetime, which involves being bought and sold multiple times. After accumulating more
hours than what markets in Canada, the United States or Europe will bear, these machines are then exported to developing countries where they will live out their usefulness. However, this cycle may not hold true for Tier 4 machines since they require low sulfur diesel, currently not something widely available in developing parts of the world. The lack of a clean fuel source will damage the engine and aftertreatment system on Tier 4 machines. So,
ABOUT THE INDEPENDENT EQUIPMENT DEALERS ASSOCIATION (IEDA)
Established in 2002, the Independent Equipment Dealers Association is a selfregulating body of independent dealers who pride themselves on being reputable, highly qualified professionals in the used equipment market worldwide. Standard Members buy and sell equipment on a wholesale and retail
“Speaking with equipment fleet owners, there is a lot of concern about diagnosing and repairing these engines,” says Cori Petersen
sellers will have to add some type of conversion kit when selling to these countries. The extra expense to convert these machines will certainly have an impact on how well they sell throughout their complete lifecycle.
For companies looking to sell their used machines to the buyers in the used equipment market, pricing in the future is a bit unknown. The IEDA and its worldwide membership network is committed to monitoring what’s is happening with equipment pricing so they can ensure the companies that do business with their members will continue to receive fair market value for used machinery when buying or selling.
level via the IEDA. Associate Members offer products and services to the core group. All members must apply for membership and be approved by the board of directors. CRS
Kristen Williams is the executive director for the IEDA. With a curiosity for learning and a passion for building relationships, she has led the IEDA to new heights and has seen a tenfold growth in membership since being hired in 2009. With a professional background in trade publishing and conference planning, Kristen has extensive knowledge and experience in the used equipment market.
STRENGTH EAST AND WEST
Excellent results at both Ontario and Prairie CRA shows
In the shadow of the big U.S. shows, the Canadian Rental Association’s regional events are still holding their own, proving there’s a need for Canadian rental operators to be able to visit their local suppliers and get together with their neighbours and peers.
by PATRICK FLANNERY
The Prairie banquet is always a good time. Back by popular demand, the Duelling Pianos showed off their ability to play just about anything the audience requests.
This year’s shows in Edmonton and Guelph, Ont., provided lots of opportunity to see the latest equipment, have great conversations with industry leaders and learn, learn, learn.
PERKY PRAIRIE
Things are stabilizing a bit in Alberta if the Canadian Rental Association’s Prairie show in Edmonton was any indication. The event attracted around 120 attendees to visit 56 exhibitors. As is usual for this show, the Saturday night banquet brought in an even bigger crowd to enjoy the DoubleTree Edmonton West’s fine fare and a rolicking return performance by the Duelling Pianos.
A well-attended Friday night social at Beercade got the show off to a relaxed start. Attendees in town the night before enjoyed a night of adult
beverages and classic arcade games at the downtown Edmonton location.
Notable on the show floor was a new XAS 88 towable compressor from Atlas Copco featuring a lightweight design with the internal components conveniently spaced for easy maintenance and designed to be accessed with minimal tools. New to the show was FenceFast showing off its StockAde gas fence stapler with a demonstration log right on the booth. The trend toward increasing automation on construction sites was observed by Cavalier’s Esko Bionics arm, an articulated arm that attaches to trailers or the railings on lift platforms and takes the weight of heavy breakers, drills and other hand-operated construction equipment. Cavalier’s T.J. Johnson demonstrated how the arm makes manoeuvring even a heavy breaker much easier, though T.J. is not the guy
you think is going to need the help.
American Rental Association president Mark Gilbertson of Fargo RentAll and CRA president Hank McInnis of The Cat Store were on hand touring the show floor and welcoming attendees at the banquet. Gilbertson noted that coming from chilly North Dakota, he felt right at home in Edmonton.
AWESOME ONTARIO
The Ontario Canadian Rental Association distinguished itself March 22 with a convenient and content-packed day of learning and networking for equipment and event rental operators. Over 50 attendees took advantage of the exclusive educational opportunity in Guelph, Ont.
Safety was very much the theme of the day, starting with a presentation by Lucie Giroux, manager of health, safety and environment for Contractors Rental Supply. Giroux laid out 10 elements of an effective safety policy, essentially giving a road map that store owners can use to create a good culture in their businesses.
Next up was Patrick Falzon from the Electrical Safety Authority to talk about powerline safety. His descriptions and photos of what can happen when equipment and tents contact power lines were...well...hair-raising. Anyone operating equipment needs to take the time before they start to look for power lines and make a plan to stay well away. Falzon had some useful tips on what to do if contact does occur: stay in the cab of your vehicle (unless it’s on fire) and don’t get out until a representative from the power utility says it’s safe. And stay away from the vehicle’s tires - they can explode for up to 24 hours after an incident!
Falzon also participated in the regulatory round table that included Mike Nelson and Varien Paron from the York Regional Police, Andy Brown from the Ministry of Transportation, Christopher Boccinfuso from the Ministry of Labour and Don Heyworth from the Technical Standards and Safety Authority. Constables Nelson and Paron had numerous tips on how to safeguard equipment and set up store security to assist police to recover stolen items. Placing your store decal or an identifying number somewhere inside the vehicle where a thief won’t know to look is a good way to help police identify it as stolen and belonging to you. Video cameras should be aimed at entranceways at head height, not looking down from the ceiling, and recordings kept for 30 days. Trying to buy equipment back when it appears on EBay or Kijiji is not a good strategy - better to call police and alert them to the post. And they made the point again that a customer keeping rented equipment past the agreed return date is not theft and therefore not a matter for the police; it’s breach of contract and needs to be pursued in civil courts.
Boccinfuso went over the newish working-at-heights rules, outlining when lift operators have to have training and when they do not. The rule of thumb is that as long as the operator’s feet are less than 10 feet off the ground, the MOL won’t charge. Tent erection sites do count as “construction sites,” but a homeowner can use lifts without restriction as long as he’s working on his own property without outside help.
Happy makes honest
Greater job satisfaction is an effective route to reducing employee theft.
by Russ Dantu
One of the biggest challenges businesses face today is employee theft. Why does this happen and what can be done to stop it?
The attitude some employees take is that it is sometimes easier to “borrow” a few packs of coffee than to stop at the grocery store on the way home. It is easier to “borrow” items –white out, pens, a stapler, a screwdriver, nuts and bolts – and sometimes return them or sometimes keep them. “Hey, I work hard for the company. It’s not like they aren’t making lots of money,” you can imagine them saying. “They can afford it? What harm am I really doing?” Obviously, I think very differently now but as a teenager I will admit I may have “borrowed” a few items when working in the trade show rental business.
Maybe you have caught an employee stealing something as simple as one of the items listed above. In general, I prefer a mild response to such incidents. I like to say we should play the odds that most employees know right from wrong and most are there to do a good job for you. It’s a small percentage that actually need to be fired.
The key to a successful, honest team is knowing what employees want, understanding their needs and treating them like gold. Now this doesn’t mean you have to coddle them but so many businesses are still of the old mentality: “Hey, they’re paid to work here. That should be enough!” Not anymore it isn’t. We need to change the way we look at hiring and keeping employees so we have a greater chance at success behind the counter and behind the scenes.
dime is easier than you think.
If you want to achieve these things, please consider the following survey from Inc.com. Many business owners and managers think it’s all about money but once we are paying our employees a respectable salary or hourly wage relative to what they are doing in the industry there are still many other factors that contribute to employee satisfaction.
• Feeling proud of what they do (contributing and impactful)
• Being treated fairly
• Respecting and trusting their boss
• Being listened to
• Having a personal life
• Being coached, not managed
• Seeing bad employees let go
• Having job security
• Being part of a winning team
• Being appreciated regularly (not once a year) If you want to be known as the leader in
We should play the odds that most employees know right from wrong.
Building a cohesive, effective and honest team takes time but the benefits are plentiful: less employee turnover, better culture, stronger teams, happier employees…the list goes on. Creating a simple strategy that won’t cost you a
your specific industry, not just in customer satisfaction but also employee satisfaction, treat your employees better than your competition does. By doing these simple things, you will make them feel like they are truly a part of your company’s success. That will lead to less employee theft. Chances are also in your favour that your employees will respect you more and treat your customers like gold. That’s a great formula for a healthy bottom line. CRS
CONCRETE PRODUCTS
Atlas Copco’s new family of BG walk-behind power trowels includes three main models: an edger, a standard robust workhorse and a high-capacity model for fast results on large areas. Blade diameters are 24, 37, and 47 inches, respectively. Compared to the previous range, the new models have some important differences. There are two options for pitch adjustment and all versions feature QuickStop for maximum operator safety, foldable de-vibrated handles and a maintenance stand. With QuickStop, blade rotation stops immediately. Walk-behind power trowels are often equipped with a centrifugal clutch that unfortunately allows handle spin of up to 540 degrees from the moment the handle is released until the rotation is completely
QuickStop doesn’t kill the ignition when the trigger is released, allowing the speed to be adjusted without damaging the belt and clutch. The TP models offer standard twist pitch for more accurate adjustment, while the QP versions are equipped with cog pitch for fast pitch setting. The pitch adjustment is conveniently located close to the operator’s hand. All BG power trowels are equipped with a palm trigger in robust steel and foldable de-vibrated handles. Unique to Atlas Copco power trowels, there is also a maintenance stand for easy access. For a fast, simple blade change or other service task, simply flip the machine up on the maintenance stand.
BUILT FOR RENTAL contec.bartellglobal.com The Alpha nine-inch floor
CONCRETE PRODUCTS
grinder is Contec’s smallest grinder with performance proven in the rental industry. Powered by 110V single phase, the grinder’s performance is comparable to three-phase machines while weighing only 93 pounds. Operation is dust-free due to an integrated dust port. The Alpha runs at 1,680 RPM with a variable speed option and a flexible drive coupling. A wide variety of tooling is available for cutting and coating removal. The Alpha features a carry handle for easy transport and the capability to grind close to walls.
MECHANICAL OR POWER STEERING
wackerneuson.com
Wacker Neuson has paired its popular 48-inch ride-on trowel with a new electronic fuel injection engine that
offers added power, speed and fuel economy. The mechanical-steer CRT4837V and power-steer model CRT48-37V-PS are both powered by a 37-horsepower Briggs and Stratton Vanguard air-cooled gasoline engine with the latest EFI technology. The engine features an automotive-style EFI system that delivers fuel more efficiently where and when it is needed, resulting in an easy starting, quicker throttle response with high blade speed capability and improved fuel economy. Add this new engine to Wacker Neuson’s proven trowels designed for high productivity and operator comfor, and concrete contractors receive a winning combination to achieve high quality professionally finished slabs and floors. The CRT 48-37V mechanical steer is available with a patented torsional assist steering system that is easy to operate and reduces operator fatigue. A rigid,
heavy-duty frame leads to more responsive steering and excellent feedback from the concrete condition. Optimum manoeuverability is achieved due to the balanced power-to-weight ratio and ergonomic twin lever controls. The CRT3837-PS model uses a patented electronic steering system that combines hydraulics and electronics to create a true power steer unit. The CRT-PS system was designed to produce the results of a hydrostatic machine matched with the responsiveness of a mechanical steer while improving operator comfort. Using simple joystick controls, the CRTPS handles and performs like a lightweight finishing machine and at the end of the day, the operator sees superior finishing results without fatigue.
EUROPEAN QUALITY
lackmond.com
Lackmond Products, a leading supplier of diamond tools, carbide tools and equipment, recently entered into a joint venture with BB Plus Tec, a leading European manufacturer in the drilling and fastening market since 1969, to market and sell their core drills and rigs, core bits, rail saws and manual tile cutters in North America. The new equipment will be marketed under the under the Beast and BB Plus Tec brands. Lackmond’s new Beast/BB
Plus Tec core drills, rigs and bits are manufactured in Europe and made with the highest quality raw materials using the most advanced manufacturing technology. The BCR130/5BG is a handheld core drill with a back grip making it ideal for drilling vertical holes. The BCR130/5MG is a handheld core drill with a mid-grip which provides the operator comfort when drilling horizontal holes. The BCR300/12 is a mast-mounted core drill rig and is excellent for drilling conduit holes. All Beast/BB Plus Tec core drills are extremely powerful and loaded with countless features including an LED motor overload protection system.
KEEPS USERS COMFORTABLE
hilti.ca
Hilti is expanding its SDSmax rotary hammer portfolio with the introduction of the Hilti TE 50-AVR SDSmax rotary hammer with chiseling. Designed to be powerful and lightweight, the Hilti TE 50-AVR delivers superior performance in multiple applications, including hammer drilling in concrete, masonry and stone. It can also make quick work of light- and medium-duty chiseling in masonry and concrete.
This new SDS-max rotary hammer features Active Vibration Reduction (AVR) that reduces vibrations by up
to 2/3 of competitor models. This helps keep users comfortable and productive all day long. The TE 50-AVR also has a detachable cord, which helps to reduce cord damage and wear. This cord simply snaps out if too much tension is applied, and it can easily be reconnected for quick field replacement of damaged cords. Weighing in at just 13.4 pounds, the Hilti TE 50-AVR is the lightest SDS-max rotary hammer in Hilti’s TE-Y class. While hammer drilling, the Combihammer has an optimal hole diameter range of ½ up to 1-1/4 inches but can drill holes up to 1 9/16-inch in diameter. The TE 50-AVR can also handle percussion coring applications up to 3 1/4-inch diameter. When the TE 50-AVR is outfitted with a Hilti TE-YD hollow drill bit and attached to the Hilti VC 20/40 vacuum, the user can virtually eliminate dust created during the drilling process and remove the need for subsequent hole cleaning when used with Hilti HIT-HY 200 or HIT-RE 500 V3 adhesive anchors.
WORKS WITH MULTIPLE SYSTEMS
generalequip.com
General Equipment Company’s SG24/GH gasoline-powered surface grinder was designed for targeted use
by contractors and homeowners alike and features various grinding systems for breaking up deposits, cleaning/ polishing concrete and tile, producing exposed aggregate slabs and other general concrete grinding applications. Powered by an industrial quality Honda 11-horsepower engine, the SG24/GH includes dual counter-rotating multi-accessory discs that rotate at 250 RPM and offer a maximum grinding width of 24 inches. The unique design balances forces to help reduce operator fatigue while enhancing machine control. Furthermore, an adjustable operator handle accommodates different user heights and preferences. A wide range of industry-standard interchangeable attachments are available, including grinding stones, scarifiers, wire brushes, the Scrape-R-Tach
coatings removal system, Diam-A-Tach diamond grinding stones and the Pro Polish concrete floor polishing system. Also, the counter-rotating discs can be removed to attach standard 10-inch diameter, multi-segmented dry diamond discs for other applications such as removing plastic overlays and epoxies. Caster wheel height adjusts to accommodate different multi-accessory requirements. The SG24/GH has a unitized, welded-steel plate frame, high capacity self-aligning ball bearings and V-belt/spur gear transmission for maximum durability and reduced maintenance. A three-inch diameter vacuum attachment port and safety/dust shield assembly kit also come standard.
CONSISTENCY AND SIMPLICITY
edcoinc.com
The Magna-Trap system is a new approach to concrete grinding surface preparation, equipment and tooling specifically
BUSINESS TO BUSINESS
designed for the rental industry. With both rental and retail opportunities, EDCO’s Magna-Trap system works well in virtually every concrete grinder surface preparation application. An investment in MagnaTrap brings same-surface preparation tooling across EDCO floor grinder and turbo grinder product lines. The system delivers a 90 per cent improvement in tooling changeover times compared to existing tooling systems. Increased application solutions are available through new tooling selections. Magna-Trap achieves consistency and simplicity in approaching surface preparation tasks and rentals with a decreased risk of lost rental revenues due to tooling burn out. Magna-Trap grinders are the same proven and rentaltough designs EDCO has manufactured for 58 years, updated with modern features making them more productive and versatile than ever before. EDCO’s vacuum systems remove air-borne dust particles and shorten cleanups while reducing worker’s exposure to dust and debris. Common shop vacs can not capture the large volume of dust created by high production surface prep equipment.
Success by committee SAFETY FIRST AND LAST
Proper organization of your safety committee is needed for effectiveness.
by Jeff Thorne
From coast to coast, most provincial and federal legislation requires that employers establish and maintain safety committees. What they are called may differ; Joint Work Site Committees in Alberta, Occupational Health Committees in Saskatchewan, Health and Safety Committees in Newfoundland and Ontario. Regardless of what they are called, they have an important role to play in today’s workplaces. Committees have a great opportunity to strengthen and improve an organization’s health and safety culture. They are an advisory body made of workers and management working together to establish and maintain healthy and safe workplaces. This typically gets achieved through workplace inspections, frequent meetings, administrative reviews and providing guidance and recommendations on health and safety issues that arise in the workplace.
So how do you know if your committee is effective? There is more to it than just simply looking at a reduction in incidents, illness or injuries as this data may be misleading due to lack of reporting and investigation. Here are some key factors to consider to ensure the success of your committee.
Set goals. Goals can be set through a terms-of-reference document. This document provides guidance to the committee to ensure the committee’s and the organization’s goals are aligned. Each organization needs to set health and safety goals and well-defined plans to achieve these goals. Goals for the committee should include legislative compliance, injury and illness reduction and supporting the organization’s health and safety program.
Set objectives. Objectives are specific ways that the committee will attain its goals. This is done through setting specific targets that can be measured and evaluated. Without setting goals and objectives, the purpose and path of
the committee can be lost quickly. Objectives should include visibility in the workplace, communication to identify and control hazards, recommending improvements to management, responding to health and safety concerns, reviewing injury and illness data, identifying trending issues and monitoring the effectiveness of health and safety processes and programs in the workplace.
Create rules for the committee. In doing this, you must consider different departments, process and shiftwork. In order for meetings to be effective, you must consider how many people you need as a minimum to hold your meeting and how many meetings each member must make during the year. For example, if you have six people on the committee and only three continuously show up, your committee is not going to be as effective as it could be.
Training of committee members – Almost every province requires committee members to be trained. In Ontario and New Brunswick members must attend a training program prescribed by their respective Occupational Health and Safety Acts.
Eliminate time wasters. A big part of being effective as a committee is making the most out of the time that you have to carry out your duties. A lot of time can be wasted and hazards can be overlooked when inspections and meetings are not carried out properly. Meetings need to be planned in advance, and distractions need to be eliminated. Put your phone away unless it is required to show other members a picture of what was identified during an inspection. If a presentation is being made, make sure that the technology used has been tested and everything is ready to go prior to the meeting as technological issues can waste valuable time. Make sure that an agenda is prepared in advance so all members are well prepared to discuss the topics at hand. CRS
CLASS LEADING 85’ (25.91 m) PLATFORM HEIGHT
DUAL CAPACITY RATING OF 750/500LBS (227/340 kg)
SJ85AJ LAUNCH READY!
34’ (10.36 m) UP AND OVER CLEARANCE
Launching the newest addition to its growing boom lineup, the SJ85AJ Articulating Boom fills out Skyjack’s offering in the core 40’, 60’ and 80’ boom classes.
Like all Skyjack booms, the new SJ85AJ is engineered with simple reliability in mind.
