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Serving the Canadian rental industry for 43 years.
4
EDITORIAL
There’s decent news for the rental industry in the 2019 federal budget.
16
SUCCESSFUL SUCCESSION
A family commitment to the rental business draws in the next generation.
14 PRESIDENT’S MESSAGE
Promoting safety in the industry is a primary mission of the CRA. by Dan Spencer
6
INDUSTRY NEWS
Terex sells Demag...Doosan gives Montabert back... Kunderman in at General... Manitou sets sail...
22
CUT CLEAN
When it comes to diamond blades for concrete cutting, one size does not fit all.
12 CANADIAN RENTAL RATE REPORT
EquipmentWatch’s year-overyear comparison of heavy equipment rental rates..
20
AT YOUR SERVICE
Trust is a critical part of the relationship between you and your customer. by Russ Dantu
30
SAFETY FIRST AND LAST
Distracted driving rules are the same on the road and the jobsite. by Jeff Thorne
A small budget bonus
The federal budget includes limited good news for
At the time of this writing the federal budget just dropped and it’s generally good news for the rental industry. The headline item was a shared equity mortgage program for first-time home buyers that could see lower-income buyers get as much as 10 per cent of the value on an interest-free basis. Anything that stimulates housing construction and home ownership trickles down to us. However, first-time homebuyers don’t tend to buy new houses, so the effect on construction may be small. If that 10 per cent is invested on renovations in an older home, however…
Apparently, Ottawa is going to send the money it collects in gas taxes directly back to municipalities without allowing the provinces to get their greasy paws on it first. I think reinvesting gas taxes into infrastructure was part of the original justification for them way back in the ‘70s, but like so many other taxes of this kind it simply morphed into a slush fund to boost provincial balance sheets. If this $2.2 billion turns into actual work on roads and sewers, that’s good business for the local rental store. And I have a feeling municipalities might be slightly more likely to use the money for its intended purpose.
There’s some assistance for skills training for workers, but it’s being delivered through Employment Insurance so it’s unclear how much it will benefit rental stores. The Canadian Federation of Independent Businesses certainly doesn’t like the plan. It says small business owners would have to give employees several weeks off in order for them to receive the assistance, with no guarantee that the training the employee receives would be relevant to their job duties. In any event, the budget says workers can get up to $250 per year to cover training to a lifetime maximum of $5,000. Not much, but better than nothing.
ON THE WEB:
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TEREX SELLS DEMAG
Terex has announced it has agreed to sell its Demag Mobile Cranes business to Tadano for an enterprise value of approximately $215 million. The Demag Mobile Cranes business manufactures and sells all-terrain cranes and large crawler cranes. Included in the transaction are the manufacturing facilities in Zweibrucken, Germany, and multiple sales and service locations. The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in mid-2019.
“The Demag Mobile Cranes business has been part of our company for almost two decades and produces world-class products,” said John L. Garrison, Terex chairman and CEO. “The dedicated Demag Mobile Cranes team members have made significant contributions to Terex and to the crane industry. The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities. We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag Mobile Cranes brand, technology, distribution network and team members.”
Commenting on the rationale of the deal, Koichi Tadano, Tadano representative director, president and CEO, said: “This is a strategic acquisition that offers Tadano
terex.com
considerable scope for growth. The addition of the well-respected Demag brand of all-terrain cranes and large crawler cranes extends our product lines and options for customers. The addition of the Demag-branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”
Garrison added, “In addition to selling the Demag Mobile Cranes business, Terex will exit the North American mobile crane product lines manufactured in our Oklahoma City facility. These changes will simplify our Oklahoma City operation, which will continue to produce telehandlers and re-manufactured units for our aerial work platforms segment and various products for our materials processing segment.” Garrison continued, “Although we are exiting the Oklahoma-based mobile cranes products, we will continue to sell parts, and offer service and support to our customers.”
Terex will continue to manufacture Terex rough-terrain and pick-andcarry cranes.
CHAIR-MAN MILLS BOUGHT BY PRIVATE EQUITY
McCain Capital Partners has announced it has partnered with management to acquire Chair-man Mills, Event Rental Group and Advanced Tent Rental. CMMC is a leading event rental provider and together MCP and management will build on the company’s long history and excellent brand to drive the next stage of growth.
“This is an exciting time for CMMC,” said John Van Schepen, president of CMMC. “The long-term, strategic commitment that MCP is making will enable continued investment in people, products and technology, and will further enhance our ability to deliver unparalleled service to the event and tent rental markets in the GTA and
COMING EVENTS
June 19 – 21
Canada’s Farm Progress Show Regina, Sask. myfarmshow.ca
“We are thrilled to partner with the great team at Chair-man Mills, Event Rental Group, and Advanced Tent Rental,” said MCP’s Zac McIsaac. “CMMC is the premier event rental provider in Canada and our partnership creates an excellent platform for future growth.”
COOPER BUYS PRIME RENTALS
Cooper Equipment Rentals, headquartered in Toronto, has announced that it has acquired Prime Rentals. Prime Rentals has two locations in Lethbridge, Alta., and nearby Taber. Prime was established in 1979. Owner Kim and Trina Tymko will assist in ensuring a smooth transition for the acquisition over the next several months.
“We are excited about the expansion of our operations in the southern Alberta market with the addition of Prime Rentals’ experienced team of rental professionals, well-rounded equipment fleet and excellent branch facilities,” said Darryl Cooper, president of Cooper. Doug Dougherty, CEO of Cooper, added, “This strategic acquisition strengthens our position in the important Alberta market and allows us to better support customers throughout southern Alberta. It moves us closer to our goal of establishing a national network of branches through which we can deliver best-inclass service to customers throughout Canada.”
Kim Tymko, president of Prime Rentals, said, “My wife Trina and I take great pride in the business our family has built and we are deeply committed to Prime Rentals’ employees and customers. We have every confidence that this transaction will provide meaningful opportunity for our employees and will allow Prime Rentals’ customers to continue receiving the high level of service to which they have become accustomed.”
DOOSAN CUTS MONTABERT LOOSE
Doosan Bobcat North America has transitioned its rights to U.S. sales, marketing and service of Montabert attachments to Montabert SAS, creating a direct link between the brand’s U.S. distribution network and its factory in Lyon, France. This change is the result of an agreement reached jointly by both parties to support Montabert SAS’s desire to get closer to its U.S. customer base.
“We appreciate the partnership we have had with Montabert over the past 10 years and wish them well in the future,” said Scott Park, president and CEO of Doosan Bobcat. “As of today, all U.S. rights to the Montabert brand, our dealer agreements and our service and sales staff become the responsibility of Montabert.”
To support the change, Montabert has been investing in new support facilities across the U.S. including:
• A state-of-the-art service centre that opened in March in Chattanooga, Tenn., for product support and the remanufacturing program
• A new distribution and customer centre that opened in April in the St Louis, Mo., area with over 50,000 square feet of warehouse space and offices
• A new facility under construction in Elko, Nev., to support customers on the west coast, planned for completion in 2020
“We are excited about the benefits achievable through complete system integration between the U.S. distribution centre and Montabert factory,” said Stephane Giroudon, Montabert sales director for the Americas, who will oversee the company’s U.S. operations.
“We have been working closely with Doosan Bobcat North America to make sure the process goes smoothly, especially for our customers, our valued network of dealers and our employees.”
Current sales and service contacts in the field remain the same.
A new online Montabert dealer portal was launched in April with full ordering capabilities, parts breakdowns, warranty systems and case management to further enhance the dealer experience.
KUNDERMAN JOINS GENERAL
General Equipment Company has announced Greg Kunderman has joined the company as national sales manager where he will have responsibility for the development and coordination of sales for national and independent accounts. He will also oversee long-term sales strategy development as well as General Equipment’s sales representative organizations for North America.
“We are excited to have Greg join our team,” said Dennis Von Ruden, General Equipment president. “Greg’s experience and connections in the rental industry and his ability to increase revenue streams in every organization he’s worked for in the past, will be a welcome contribution to our company’s long term strategy.”
Greg has over 25 years of experience in a sales and marketing capacity and looks forward to continuing his longstanding, professional relationships with customers and manufacturing representatives alike. Prior to joining General Equipment, he worked for Heat King, which manufactures and distributes glycol and forced-air heating equipment to the rental industry. Previous to Heat King, he worked for Frost Fighter, where construction heaters and portable air conditioners were produced and sold to both the rental industry and HVAC contractors. He served as national sales manager in both companies. Prior to Frost Fighter, Greg owned and ran his own business, Phillips Acoustic Services.
montabert.com
EXPERTS SAY INVENTORY MANAGEMENT CAN DELIVER EFFICIENCY
Everyone in the rental industry can attest to the importance of inventory management. Rental stores across the nation rely on inventory management systems to stay efficient, while serving Canadians with the equipment they need. According to Matt Brown, senior vice-president of Lawson Products, inventory management is a service that systematically maintains and supplies the flow of equipment to warehouses and rental companies. In doing so, companies are able to help their clients avoid delays caused by broken equipment and lack of stock.
From the perspective of an inventory management company, Brown believes the first step in serving a rental equipment manufacturer is identifying a strategy to help the
company become more efficient. For manufacturers, being efficient means providing more equipment to clients, instead of dealing with a backlog of broken-down rentals. When serving manufacturers, Brown confirmed inventory management services are capable of maintaining the correct product levels, ensuring rental companies can get their product out to customers quickly.
In essence, inventory management services can be used to keep track of faulty rentals, which in-turn prioritizes the distribution of working equipment to customers. Inventory management companies make sure rental stores have the right parts and supplies for their individual needs by tracking usage patterns.
MANITOU LOOKING AT SHIPPING WITH SAILBOATS
The Manitou group, the global leader in rough-terrain handling, has confirmed its support for the Neoline maritime project to transport its machines to the American market. This future innovative and environmentally responsible line is part of the group’s CSR approach. The Neoline Ro-Ro cargo project, powered mainly by sails, plans to use 100 per cent clean, free and renewable energy: the wind. With 80 per cent of its revenues earned internationally, the Manitou group plans to transport more than 1,000 machines by ships from Europe to the U.S. in 2019. This new solution will optimize the dynamics of its international transport flows, efficiently distributing all of its machines and components around the world more efficiently with less environmental impact.
Augustin Merle, transport and logistics manager at the Manitou group, said, “It is essential for the Manitou group that we have access to transport solutions that are both efficient and responsible. Neoline’s proposal is a perfect fit for our operational needs. It is also viable in terms of energy consumption, saving an estimated more than 4,000 tons of carbon dioxide per year. With this service, we will maintain similar delivery times, while optimizing pre-routing from our factories in Grand Ouest to the port of Nantes-Saint-Nazaire.”
Neoline is developing a highly-fuel efficient transatlantic transport line, thanks to innovative sailing vessels that will specialize in rolling and oversized goods. With start-up expected in 2021, this line will connect St-Nazaire with the American east coast and Saint-Pierre & Miquelon.
Michel Pery, president of Neoline, says, “We have
With this strategy, popular products are easily identified and given highpriority when inventory needs to be re-stocked. Having a constant excess of their highest-selling products equates to consistent business for rental companies.
Serving the need for on-site repairs across Canada has been in popular demand, Brown said. Especially in Alberta, where the large-scale, immobile rental equipment used in oil fields demands a steady flow of parts to remote locations. Rather than suffering from delays to get rentals fixed, inventory management companies supply their client’s mobile trucks that fix equipment on-site.
- by Alan Downward
developed this transatlantic line dedicated to rolling and oversized freight with cargo shippers like the Manitou group. In particular, we plan to equip our vessels with movable decks whose dimensions and resistance are perfectly suited to the machines of the Manitou group. As a strategic shipper of our future line, the support shown by the Manitou group is a concrete step forward towards the commissioning of our vessels.”
To provide a maritime transport solution that is equal to today’s environmental challenges, Neoline is developing industrial-scale sailing freight services that are clean, customized, competitive and meet the logistical needs of shippers. Led by a team of maritime professionals, this shipowner project is making it possible to design vessels that are capable of reducing up to 90 per cent of emissions, compared to traditional cargo on an equivalent route. The Neoline vessel will use primary wind propulsion, in conjunction with economical speed and optimization of the energy mix. This 136-meter Ro-Ro vessel with 4,200 square meters of sails combines technical maritime transport solutions with solutions from sport sailing in an innovative way. This type of transport is efficient both logistically and economically, with exemplary energy savings. The development plan expects to build two ships of this model, with a commissioning goal of 2021.
TARIFFS TO COST U.S. $290 BILLION
With tariffs continuing to take a toll on U.S. businesses, farmers, communities, and families across America, a new report released by IHS Markit outlines the impact of tariffs on the equipment manufacturing industry and the broader U.S. economy.
The report, “The Economic and Industry Impact of Protectionism Tariffs on the Off-highway Equipment Sector,” estimates the impact of the Trump administration’s Section 232 and Section 301 tariffs. Several of the report’s key findings speak to the significant, long-term impact on the U.S. economy. It found placing tariffs on about $265 billion of imports will hurt the U.S. economy, largely from the direct effect of higher prices, yielding average lost GDP of $29 billion a year for 10 years. The effect on employment is negative; the tariffs will suppress domestic job gains by 260,000 over 10 years.Consumers will pay higher prices and reduce their real spending by $23 billion per year throughout the forecast horizon (ending in 2027). The report also highlights specific impacts on the equipment manufacturing industry. Tariffs will increase costs of producing U.S. agriculture and construction equipment by six per cent; with its higher steel-related product content, the costs of producing U.S. mining equipment will increase seven per cent. Total loss in employment related to diminished output of all off-highway equipment is projected to end the forecast period with a loss of 20,700 jobs. Equipment manufacturing executives have attributed the increasing costs of manufacturing in the United States to the Trump administration’s tariffs. There are currently tariffs on $250 billion dollars’ worth of imports from China to the U.S. Separately, tariffs or quotas on steel and aluminum imports have also raised the cost of manufacturing equipment.
EquipmentWatch is a trusted source for heavy equipment data and intelligence, producing leading database information products for the construction equipment industry. It is a world leader in heavy construction research and serves more than 15,000 professional, high-volume users of construction and lift-truck data. Find more heavy equipment intelligence at equipmentwatch.com.
Cross-Canada Rate Report
A look at average national rental rates
The Cross-Canada Rate Report is provided to Canadian Rental Service as a free service to the Canadian rental industry. Rate data shown are national averages generated by quarterly surveys of 325 Canadian rental stores. For in-depth analysis and a chance to interact with EquipmentWatch researchers, tune in to the next Counter Talks webinar. See canadianrentalservice.com for details.
Number of rental companies: 55
Number of stores: 342
Number of rates collected for the 10 subtypes: 55,220 CrawlerMounted Hydraulic Excavators
CRA PRESIDENT’S MESSAGE
HELPING YOU WORK SAFE
CRA members can access a wealth of safety resources.
by DAN SPENCER
Spring is finally here and on behalf of the Canadian Rental Association I would like to remind you that May 6 to 10 is the North American Occupational Health and Safety week. This is a great reminder to take necessary precautions to keep yourselves, your employees and your customers safe.
As most of the equipment and event rental industry are in the middle of the chaos of the busy season, businesses will experience accidents and injuries both at their stores and in the field. It is important to remember that safety precautions are not complicated and can be easily implemented. Below you will find some important occupational health and safety tips.
The question is “Are you doing your due diligence?”
According to OH&S legislation in Canada, due diligence is the level of judgement, care, prudence, determination and activity that a person would reasonably be expected to do under given circumstances. Applied to occupational health and safety, due diligence means that employers shall take all reasonable precautions, under the particular circumstances, to prevent injuries or accidents in the workplace. This duty also applies to situations that are not addressed elsewhere in the occupational health and safety legislation. Reasonable precautions are also referred to as reasonable care. It refers to the care, caution, or action a reasonable person is expected to take under similar circumstances.
Employers must do what is “reasonably practicable.” Reasonably practicable has been described by the Labour Program (Canada) as taking precautions that are not only possible, but that are also suitable or rational, given the particular situation. Determining what should be done is usually done on a case-by-case basis.
Dan Spencer has worked in the rental industry for 11 years and has been actively involved with the CRA locally and nationally for the past eight years. He resides near Antigonish, N.S., with his wife Heidi and their two chocolate labs, Keppoch and Cali.
To exercise due diligence, an employer must implement a plan to identify possible workplace hazards and carry out the appropriate corrective action to prevent accidents or injuries arising from these hazards. How can you avoid or decrease incidents? Train the supervisors to ensure they are competent, as defined in legislation. Ensure that managers and supervisors take the following steps:
• Talk to new employees about safety during orientation training
• Meet regularly with staff to discuss health and safety matters
• Inspect areas of the workplace under their responsibility and respond promptly to unsafe conditions and activities
• Pay attention to routine and non-routine activities, ensuring that employees understand the hazards and the preventative measures to be followed
As a CRA member, on our website crarental.org in the Members Only corner, you will find at no charge under Safety a library of forms, checklists and resources that will help you implement safe work practices. There you can find an onboarding checklist for supervisors; safe work practices for towing equipment on a customer’s site; a list of seven common accident causes; skid-steer, telehandler and excavator checklists; a primer on driving blind spots; and procedures to follow in a motor vehicle accident.
Our Health and Safety Shared Interest Group is not only committed to keeping you informed of the common hazards but also to provide you with continuous educational tools that will help you in keeping your employees and business away from the day-to-day risks. I encourage you periodically to visit our website and to browse through the material provided- it will definitely help you and your business! CRS
SUCCESSFUL SUCCESSION
Al-Cha
Rentals
passes from parents to daughter and strength to strength.
In the late 1980s, André Blais was at a career crossroads. However, as you might have already guessed, he decided to go into the rental industry. His careful planning and skilled management has led to the strong ongoing success of this independent business, which is now being guarded and guided by his daughter, Chantal.
by TREENA HEIN
“The decision to get into rentals started with a desire for a change in lifestyle,” André explains. “After 15 years of working for the mining industry in various regions of Canada, my wife, Catherine, and I decided to settle down and raise our family in a farming community near Pembroke, [Ont.] Catherine had already been taking temporary nursing assignments in Pembroke and had no difficulty in finding work, but I needed to find a new career.”
André’s uncle, the late Merrill Blais, introduced him to the rental industry, having been the successful owner of Sturgeon RentAll Sell-All in Sturgeon Falls, Ont., for many years. “This type of business was appealing to me and I felt it was something I’d be good at,” André explains. “I already had experience in sales, managing employees and planning tool and equipment maintenance, as well as preparing and controlling operating budgets.”
Merrill suggested that, because of his lack of experience in small business, André should consider buying into a franchise rather than starting an independent business. He agreed that would be for the best and went with Joe Rent-All until 2003 (more on that later).
At the time of start-up, André faced three main challenges: obtaining financing, finding an affordable building in a suitable location and finding the right employees. Financing was hard to come by, says André, “mostly
because I was unknown to the local banks and because I had no real experience in small business. I presented my case to a half a dozen lending institutions before finding someone who would entertain my business plan.”
In terms of the right location, André spent months researching in order to get it right. He studied traffic patterns, mapped out potential customers, viewed buildings for rent and looked at land for purchase as well. The ideal location appeared to be along the main corridor between Pembroke and Petawawa, Ont., (Petawawa is the site of an historic Canadian Army base, now called Garrison Petawawa, and its population has grown to rival Pembroke’s in recent years). In addition, this area was distant from the only other competitor in the area, a Rentalex outlet at the other end of town.
“The cost of renting any of the few available commercial rental spaces along this corridor seemed way out of line,” André recalls. “By this time, we were already mid-way through the rental season and we still had no building or equipment. We made the decision to construct our own building and start up early in the spring. I was fortunate in that my father, Clarence, was retired, had some building experience and was willing to give me a hand.”
A new challenge came when the time came to hire staff. André needed employees who were trustworthy, good with the public, could
operate and repair all sorts of tools and equipment, make deliveries and so on, while having the qualities needed to help lead other future employees. With that tall order in hand, he inquired with the local federal government job office but didn’t have much luck. One day, a man came by with his resume and André hired him. He stayed 10 years. “From there, it was word-of-mouth, with people who needed work hearing we were hiring and approaching us,” says André. “We’ve also used various local employment programs over the years, notably Job Connect through Algonquin College.”
After all André’s careful planning, it’s no surprise that when he opened
in May of 1990, the business took off. It grew so quickly that within two years, André increased the original 1,600-square-foot building by another 1,600 square feet. And more expansion was to come.
1997 – A BIG YEAR
In 1997, André opened a satellite location in Petawawa. However, two years later, due to a few different reasons, he closed it. In the meantime, the Rentalex across town went out of business, so André purchased its inventory and leased the location as another satellite of his Joe Rent-All for about two years. Due to rental costs, André closed it and decided to add another 3,000
square feet to the original location. The space mostly went to new office space and for displaying and stocking party rental items.
Returning for a moment to 1997, it was also that year when Catherine introduced a party goods division into the company. “It was very successful for quite a few years,” notes Chantal. “Now that Mom wants to retire, the plan is to sell our party goods as I don’t have a strong interest in that aspect of the company. I would rather use the space to expand our small engine repair activities.”
Chantal had been involved with the business since she was 11 or 12, helping count inventory and “pushing a broom.”
The Blais family has been drawn into rental from all different directions: André from mining, Catharine from nursing and Chantal from aviation. But they’ve all found a happy home at Al-Cha.
Albert Blais, Chantal’s brother, is an IT professional living in Toronto. He handles the information technology side of the business and is considered part of the team.
In 2003, however, after graduating from a business program, she moved to North Bay. That year, André decided to exit the Joe Rent-All franchise and go independent, mostly because the franchise fees heavily outweighed the benefits his business was receiving from them. André opened his independent, using the name Al-Cha Rentals, which is the legal name he operated under while being franchised and derived from a shortened version of his children’s names, Albert and Chantal.
For her part, Chantal had had a few different jobs in North Bay and, after about a decade, she was doing logistics and procurement in the aviation field, a position she really enjoyed. “Then in 2012, Dad decided that he wanted to retire and he asked me if I wanted to take over,” she explains. “It was not an easy decision. I took two months to hash it over. I loved my job, and it would be really hard to leave my friends. But in the end, I wanted to make sure my Dad’s legacy carried on.”
Upon arrival in the spring of 2013, she started re-learning the computer system and began doing some of her father’s tasks. André and Chantal worked side by side for approximately eight months before he completely let go of the reins. Chantal managed the company for a few years before finalizing the purchase in February,
2016. “It’s always a risk to buy a business, no matter what industry you’re in, but I had a good staff and a good support system. If you have that, you’re well on your way,” Chantal says. “I have always been careful to appreciate that some of the employees have been here for many years and that their experience should be respected. And I still call my Dad for business advice and for help maintaining the building and he’ll come in if I’m in a pinch. My brother, Al, is an IT specialist who lives in Toronto, and he manages our website. He is always there to provide remote IT support for the computer system.”
CURRENT OUTLOOK
In terms of profitable opportunities, Chantal is keen to expand rentals and to also grow what her father had started back in 2010: selling parts and doing repairs for various tools and pieces of equipment. “One of our longstanding employees, Terry Raymond, – he’s been with us 26 years – has been spearheading this ever since,” she says. “It grew fairly quickly for the first couple of years and then, in 2015, more manufacturers approached us to take on their warranty repairs. Our main mechanic, Rob Brisson, is currently doing the majority of the repairs on customer equipment. We have another employee (Liam Whitelock) who has just finished his second year in the small engines course and is eager to finish his apprenticeship. Our newest employee, Mike Donnelly, will also be going though the apprenticeship program to help him
pte7x5slopepro_noflash_1718-01-031:10PMPage1
grow within the company. We’re a certified warranty center for Toro, Honda, Dewalt, Milwaukee and many more.”
Things are looking very positive for Al-Cha Rentals, especially because Chantal has learned much from her father’s success. “He’s shown me how to deal with some of the more difficult situations and iron things out smoothly rather than burning bridges,” she says. “Taking over the business was a good choice for me.”
CRS
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Chantal sees great opportunity in the repair side of the business. They’ve become the certified warranty centre for many of the lines they carry. www progressiveturfequip com /SLOPE-PRO/rental
AT YOUR SERVICE
It has to be a win-win
by Russ Dantu
A customer we’ll call “W.R.” came to me as a referral from a business coach I have known for about 10 years. I thanked her and went to work with the new customer. Something seemed a bit strange right from the beginning as he was hesitant to divulge who he had dealt with before, even though he was very unhappy with the results. When I see a red flag, I always investigate.
When I finally found out who it was, I immediately called my competitor, Joe (it’s good to be friendly with competitors), to ask him about W.R. I actually see this competitor quite a bit so we are fairly open with each other if we see something cool in the marketplace or if there is an issue that needs to be shared. Joe informed me that he chased this customer for a year for him to pay and pick up the finished product. Joe tried to deliver to him or meet with him but the guy just said he was busy or out of town. He eventually did get paid but W.R. told Joe he no longer needed all of the sizes he ordered because one of his employees quit. Most logical people understand that once you embroider a logo on apparel, we cannot take it back. Joe told W.R. this and he reluctantly took it.
I set out some boundaries with W.R. after telling him about my discussion with Joe. His version was slightly different but he did say it was about eight months before he picked up the order. We agreed he would pay in full when the order was placed and if there were any issues, I gave him my word, I would fix the situation. Everything went smoothly on his first order. He placed a second order for some safety vests with two logos. One on the front and one on the back. I completed the order and he picked them up. He was supposed to bring back one sample to me but forgot it, so I agreed we would meet up in the next week or two. A month later he calls me to say that I shorted him one vest out of the six that were ordered. I check my paperwork from the supplier: six pieces. I checked my invoice from my embroiderer: six pieces. I called him back and said, “W.R. I have checked again and everything was correct on my end. It’s not really fair for you to come back one month later and say I am missing one
piece. It would be like me going into a retail store, buying six t-shirts and coming back a month later to tell them they forgot to put one in the bag. They would laugh at me!”
W.R. then changed his tune. “Russ, I was mistaken. There were six vests in there but one was a small which was supposed to be a medium.”
I apologized for the error and arranged to retrieve the small and get a new medium one in. Something just didn’t seem right though, so I called Joe again. He checked his order from over a year ago as it was the same product I had sold W.R. The piece W.R. wanted to not pay for with him was a size small. The red flag went up again!
When I met with W.R. I asked him, “Are you sure this was a vest I did for you W. R.?”
“Yep, I only opened the box a month after you gave it to me so it couldn’t have come from anywhere else!”
When he handed me the vest from the box, I immediately held it up and said, “So, W.R., all the vests I did had two logos on it. This one only has one on it…just like the one Joe sold you and you tried to get him to keep. Anything you want to tell me?”
I usually give my customers the benefit of the doubt and for most I would gladly have brought in a medium vest and just moved on. What I didn’t like here was someone lying to me and trying to pull a fast one over on me.
W.R. was very upset that I was accusing him of lying but in the next breath said he made an honest mistake and then he turned and walked away.
Relationships with our customers and our suppliers need to be a win-win situation. If you see a red flag, investigate before you take on a new customer. It might not be worth your time to deal with them. The customer isn’t always right and sometimes we need to fire them! CRS
Russ Dantu is a 30-year veteran of the rental industry and has been delivering workshops, seminars and keynotes on customer servicce for over 15 years. For more information, visit russdantu.com or email russ@russdantu.com
CONCRETE CUTTING
APT’s lightweight, compact MHS 14 cut-off saw packs enough raw power to cut through concrete, asphalt and steel. With its open cutting-face design, the MHS 14 cut-off saw is easy to use, even in demanding conditions. Compared to belt-driven saws, the MHS 14 has a simple, direct-driven configuration for low maintenance. The weight of the MHS 14 is 26 pounds and features a disc size of 14 inches. The cutting depth is five inches with a maximum pressure of 2,500 psi. Revolutions are 2,500 up to 4,000 with a speed of 151 to 246 feet per second. A water kit is available to provide a supply of cooling water where needed. HIGH POWER-TOWEIGHT husqvarna.com
Heavy-duty cutting, impres-
sively durable design, easy starts and comfortable handling are all in one easy-tohandle package in the new K 770 power cutter from Husqvarna. Fit the blade, fill the tank, prime, choke and pull the cord is all the user has to do. Customers will appreciate the power of the 74 cubic centimetre engine, the high torque and the five-inch cutting depth. The Husqvarna K 770 offers a high powerto-weight ratio increasing the exactness and force of the cut, while the low weight and the vibration-damped chassis ensure comfortable handling during long work shifts. The spring-loaded, semi-automatic SmartTension technology makes it easy to ensure the drive belt is always kept in the correct tension, ensuring optimal power transmission as well as maximum life of the belt. And thanks to the
summer hardscaping projects
concrete cutting technology.
CONCRETE CUTTING
new heavy-duty cutting arm with a three-bolt joint, longevity and durability is enhanced in all conditions.
DIRECT DRIVE cp.com
Chicago Pneumatic (CP) cut-off hydraulic saws provide reliable cutting every time with the power to cut through the toughest materials from concrete to asphalt and steel. CP Saw 16 features a direct-drive configuration to reduce maintenance and has easy handling with an open cutting face to ease use even in demanding conditions. With the right blade, the saw will cut through concrete, asphalt and steel. Saw 16 is the biggest model in the CP cut-off saw portfolio, which also includes the smaller Saw 14. Without being connected to hoses, the weight of Saw 16 is 23 pounds and features a disc size of 16 inches. The cutting depth is 6.3 inches with a maximum pressure
of 2,500 psi. Revolutions are 2,000 up to 4,000 with a speed of 138 to 279 feet per second. A water kit is available to provide a supply of cooling water where needed.
FOR THE TOUGHEST CONDITIONS
hilti.ca
The Hilti DSH 900-X is a hand-held gas saw with an easy-starting 87 cubic centimetre engine (automatic choke), for cutting to depths of nearly six inches. The easy-start technology eliminates the manual choke for more first-pull starts and significantly reduces risk of flooding. Maintenance is simple, as each tool comes with a maintenance kit that includes spare starter cords, air filters, a spark plug and a fuel filter. Minor repairs and service can now be carried out simply and quickly on site. The innovative cyclone
tors is suitable for concrete products, slabs, natural stone and paving blocks.
The Ox Ultimate UMTC nine-inch curve cutting diamond blade has a depressed center for cutting radii in concrete products and stone. It is ideal for decorative patio work. This “must have” blade for landscape contrac-
FOR WALK-BEHIND CUTTERS
diamondproducts.com
Mega Premium green cured concrete diamond blades from Diamond Products comes with a .437-inch diamond depth with additional diamond concentration for longer life. The blades deliver extremely long blade life,
especially in hard aggregates. Designed for the lowest diamond tool cost per inch foot in the industry, the blade has a one-inch arbor with a drive pin hole as standard. Custom arbor sizes and types are available. Additional blade sizes beyond what appears in the catalogue are available upon request. Mega Premium blades are for use on walk-behind saws. To ensure maximum performance, water is required to cool these blades during the cutting process.
FAST CUTTING
nortonabrasives.com
Norton Clipper high-speed saw blades provide handheld convenience and super fast cutting. Attuned to
BUSINESS TO BUSINESS
maket needs, they provide noise-dampening steel cores, universal arbors and leading grain technologies to deliver innovation for success. Products are available in better (Charger) and good (Classic) tiers. Norton Clipper Type 01/41 circular saw wheels are designed for blocks, medium-hard buidling bricks, paving slabs, concrete roof tiles and other medium-hard materials. Dimensions are seven by 3/32 by 5/8 diamond with a maximum speed of 8,730 RPM.
Distracted driving: workplace edition
by Jeff Thorne
Phones and vehicles don’t mix, even when they’re parked.
Forklifts, seatbelts and cellphones – just like they said on Sesame Street, “One of these things is not like the other.” I wrote previously about how distracted driving is now seen as the most common factor leading to motor vehicle accidents in Canada.
I’m sure that is no surprise. However, we have now seen this type of distraction spill into our workplaces and, in the first case of its kind in Canada, two forklift operators were prosecuted for using their cellphones while still in care and control of their forklifts at work.
The event in question occurred in Ontario at a large bottling corporation where the workers were employed in the production and distribution centre. The employer had visible signs posted and wording on monitors indicating that cellphones were prohibited. You may think that the workers were operating their forklifts while using their cellphones – on the contrary, the equipment was stationary. A co-worker witnessed the individuals allegedly sitting on their equipment, cellphones in hand, looking at them openly. The co-worker discussed his concerns and he felt that they were not taken seriously. The concerns were escalated to the point of a work refusal, at which point the Ministry of Labour got involved.
Based on the results of the investigation the inspector charged the workers for contravening section 28(2)(b) of the Occupational Health and Safety Act. This section states that no worker shall “use or operate any equipment, machine, device or thing or work in a manner that may endanger himself, herself or any other worker.”
This is where it gets interesting, as the evidence that was presented at trial confirmed that although they had cellphones in hand, they weren’t operating the forklift at the time the co-worker raised the concern. So, clearly, they were in contravention of company policy
but not the law, right? What followed was an extensive review of what it meant to “operate” the forklift. Similarly, the Highway Traffic Act was reviewed comparing provisions made in that Act to the Occupational Health and Safety Act to determine what it means to “operate.”
With much consideration and review, the justice of the peace held that there was no requirement for a worker to be on the forklift and driving it to constitute a contravention of the Act.
The court stated that using or operating any equipment, machine, device or thing includes using a cellphone or causing a cellphone to be used while the operator is situated off the forklift and standing on the warehouse floor while still maintaining care and control of the forklift, especially when the forklift had not been in a designated spot in the plant where forklifts could be left unattended safely. The court went on to further state that the individual’s inattention to their surroundings because of the cellphone use may endanger themselves, other forklift operators or pedestrians in the area, as they would not have been aware of potential hazards suddenly arising. The Act in Ontario is strict liability legislation and affords the accused the defence of due diligence. Ultimately the court rejected the evidence brought forward by the defendants and the two forklift operators were convicted.
This case clearly demonstrates the seriousness with which courts and regulators are viewing cellphone use in our workplaces. This case also demonstrates that workers have a right to refuse when cellphone use endangers a worker. The employer must ensure that when there are violations, they are dealt with and documented accordingly. Failure to document in these events may have the potential to lead to increased liability for the employer. CRS
Jeff Thorne is manager of training at Occupational Safety Group.
