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EDITOR I Patrick Flannery pflannery@annexbusinessmedia.com (226) 931-0545
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4
EDITORIAL
Information is like water. It can be directed, but not easily stopped.
14
UNITED WE STAND
New store owners Candace and Matt Parlette get support from the industry.
6
INDUSTRY NEWS
Dube retires...ARA revenue forecast...Cooper expands... changes at Finning...
20 EASY MONEY
Most of what you rent needs fuel. Why not rent a tank?
12 EQUIPMENTWATCH CROSS-CANADA RATE REPORT
18 PRESIDENT’S MESSAGE
We’re reaching out to young professionals. by Mike Maltby
17 AT YOUR SERVICE Service staff need to put on a happy face. by Russ Dantu
30 SAFETY FIRST AND LAST Protecting employees’ mental health is important, too. by Jeff Thorne
Information control
Information is like water – it resists being dammed.
Our sister publication, Rock to Road, recently published a column by the president of the Manitoba Heavy Construction Association criticizing the Manitoba government for refusing to release information on how much needs to be invested in infrastructure in the province. The association knows the province has this information, but the province has invoked a clause in the Freedom of Information and Protection of Privacy Act that allows it to withhold data if it might “reveal advice, analyses or pending policy or budgetary decisions.”
The Freedom of Information Act is one of the more Orwellian oxymorons in Canadian government vocabulary. It’s actually a long list of conditions under which governments can refuse to share the information we all bought and paid for. But I digress... It isn’t hard to imagine why Manitoba might want to hide this information. If the number needed for infrastructure investment is X, and the budget allocates less than X, then they can accurately be criticized for not looking after the province’s roads, rail lines, harbours and so on. If the number is more than X, they can be criticized for overspending and wasting money. We can assume that the number is not exactly X for two reasons: one, if it were, they wouldn’t try to hide it and, two, government budget priorities are more related to politics than the actual needs of society.
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by Patrick Flannery
See what I did there? Absent an actual explanation for why the government won’t release the data, I speculated and reached a conclusion the government probably wouldn’t like. That’s what we journalists get to do when people refuse to answer questions. Which is why sophisticated information managers understand that the best approach is to offer as much transparency and truth about their organizations as possible.
This principle is, I must say, poorly understood by many organizations and companies I work with. There’s a constant effort to control the message; to only allow information into the open that is carefully crafted to achieve the desired effect. This could be seen as wise in theory, but in practice the result is much less information becoming public. That’s because every utterance must be run through a gauntlet of approvals before it can see the light of day. Few organizations devote enough resources to communications to push information past the red tape very quickly. They calculate that it’s better for the world to hear nothing about them than to hear something possibly derogatory.
Oscar Wilde said the only thing worse than people saying bad things about you is when they say nothing at all. Any organization that wants to flourish in this society of instant communication and short attention spans is well advised to keep up a steady outgoing flow of information. Excessive paranoia about the message dams that flow, while allowing unpredictable leaks to spring up around the edges.
Anyway, in the spirit of providing great information, I’m excited to debut our new Canadian Rental Rate Report in this issue. EquipmentWatch – a construction sector research firm I’m sure you are already aware of – has kindly agreed to share some of its Canadian-specific data on heavy equipment rental rates with you, the readers of this magazine. As useful and reliable information goes, it doesn’t get much better than this. And be assured, it represents only the tip of the iceberg of what EquipmentWatch has. I strongly recommend checking out their information products for all your benchmarking and budgeting needs. CRS
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COOPER EXPANDS AGAIN
Cooper Equipment Rentals has opened two new branches in Ontario. Late this summer, the Toronto-based rental store chain opened its second trench safety division – its second in Ontario. The new 8,000-square-foot division is located in the unit next door to Cooper’s Kitchener branch.
With half an acre of outside storage, the company now has plenty of room for a wide array of trenching equipment. Cooper also opened a branch in Oshawa this summer. This branch is a 15,000-square-foot facility with a 1.5-acre yard and a large showroom stocked with a full fleet of tools and supplies. Located close to central Oshawa, the branch is anticipated to make reliable equipment rentals easy for customers anywhere in the city.
FINNING SHUFFLE
Finning International has announced that Juan Carlos Villegas, president of Finning Canada and COO of Finning International, will retire at the end of the year following a distinguished career with the company. Kevin Parkes, currently managing director of Finning U.K. and Ireland, will assume the role of president of Finning Canada. Assuming the role of managing director of Finning U.K. and Ireland will be David Primrose, currently Finning Canada’s executive vice-president of core industries. Villegas was appointed president of Finning Canada in 2013. Prior to that appointment, over the course of his 20-year career at Finning, Villegas served as COO of Finning International, president of Finning South America, vice-president of power systems for Canada, vice-president of mining for South America and vice-president of operations for Chile.
“Juan Carlos has been an integral part of Finning’s executive team and has created an extraordinary legacy for us in the work he did to rejuvenate the Canadian operations and grow our South American business,” said Scott Thomson, Finning International CEO. “His passion and commitment to our customers, employees and partner Caterpillar was evident in his ability to execute his compelling vision. We are very grateful to Juan Carlos and wish him the very best.”
In other Finning news, Finning Canada has signed an agreement to become the exclusive dealer of MultiDocker in western Canada. MultiDocker is a leading manufacturer of hydraulic material handlers for the forestry, scrap recycling and bulk handling industries.
“We are delighted to be the exclusive dealer for MultiDocker, a company with over 30 years’ experience in manufacturing and distributing cargo handlers world-wide and a recognized leader in the customization of these products to meet individual industrial sector needs,” said Primrose. “The addition of MultiDocker to our product offerings will enable us to provide our customers with a complete array of industry-specific solutions to meet all their materialhandling needs.”
This partnership with MultiDocker is a natural fit given the base machine is produced by Caterpillar and many of the parts are standard Cat components that complement the Cat product portfolio. The products are also compatible with Finning’s sales and service network. In addition to meeting demand in western Canada for the full line of rubber and track handlers, customers will also benefit from the after-sales support, parts and service Finning provides. Finning will sell and provide parts and service for the full line of MultiDocker machine models from the latest diesel engines to electrically driven units.
GLENMOR TO CARRY ASV
ASV Holdings has added GlenMor Equipment to its dealer network. The Prince Albert, Sask.,-based dealer will offer all ASV Posi-Track compact track loaders including the new RT-40, the VT-70 and the RT-120 Forestry. The company will also carry ASV’s full line of skidsteer loaders.
“GlenMor Equipment is a pillar in the Prince Albert community,” said Jim Haroldson, ASV district sales manager. “The company has a reputation for excellent customer service, as well as experience with ASV equipment.”
GlenMor Equipment offers new and used equipment sales and rental equipment, specializing in products and accessories for acreage maintenance, construction, farm and recreation.
“We’ve been proud supporters of our region’s construction and agriculture industries for more than 35 years,” said Bryce Floer, GlenMor Equipment owner. “We serve our customers by offering high-quality, dependable equipment like the ASV line of products, which we know always perform well in challenging conditions.”
Juan Carlos Villegas
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INDUSTRY NEWS
POR ACQUIRES PARTY SOFTWARE PIONEER
Point of Rental Software has acquired PartyCAD, a specialized computeraided 3D design program for the events industry. On June 28, Hank Hufnagel, who built the software that became PartyCAD back in the early 1980s, passed away, leaving responsibility for the program up to his son, Pete. By selling to Point of Rental, Pete believes users will get the great overall experience they’re used to, working with another company that’s known for its customer service.
“[Hank’s] customers meant a lot to him,” said Pete Hufnagel. “I want to do right by those customers who brought him joy and helped support our family for so many years.”
“We’re honoured to have the opportunity to continue Hank’s legacy,” said Point of Rental CEO, Wayne Harris. “Customer service was his number-one priority and that will continue as Point of Rental takes over PartyCAD. We look forward to working with users to create new features and integrations with the rest of Point of Rental’s software products.”
Point of Rental is working with Hufnagel to ensure a smooth transition. PartyCAD users can get more information at pointofrental.com/PartyCAD.
RENTAL REVENUE TO DOUBLE GDP GROWTH: ARA
The American Rental Association’s second quarter forecast is predicting rental revenue growth across Canada and the U.S. at more than double the rates economic forecasts predict for national gross domestic product. In Canada, the forecast is for US$5.4 billion in revenue in 2018, up 4.4 per cent, with 4.8 per cent growth in 2019, 4.7 per cent in 2020, 3.8 per cent in 2021 and 2.7 per cent in 2022 to reach $6.159 billion. The Organization for Economic Co-Operation and Development predicts two per cent GDP growth in Canada in 2018. The ARA, for the second quarter in a row, is projecting larger increases in revenue almost across the board for the equipment and event rental industry than it did in the previous five-year forecast released in May. The July 2018 forecast from ARA Rentalytics calls for total U.S. rental revenue of $53.04 billion in 2018, up 7.6 per cent, and then growing 5.8 per cent in 2019, 5.9 per cent in 2020, 5.1 per cent in 2021 and 4.7 per cent in 2022 to reach $65.4 billion. The May forecast called for total U.S. rental revenue of $52.3 billion in 2018 growing to $64.1 billion in 2022.
“ARA’s second quarter forecast shows continued strong growth in rental revenues over the forecast period. Growth rates for 2018 and 2019 look particularly strong in all segments of the equipment and event rental industry with growth rates forecast at more than double the rate of GDP growth,” says John McClelland, ARA’s vice-president of government affairs and chief economist.
While the near-term outlook is particularly strong, McClelland said the out-years of the forecast could be subject to change due to the potential impact of tariffs on the economy and construction projects.
“Coupled with the increases in equipment prices that are almost inevitable after the imposition of tariffs on steel and aluminum, the equipment and event rental industry could face a challenging economic climate beginning in 2020 and beyond,” McClelland says.
According to ARA Rentalytics, construction and industrial equipment rentals continues to account for the bulk of revenue in equipment and event rental and now is expected to reach $37.15 billion in 2018 in the U.S., up 8.3 per cent over last year. U.S. general tool rental revenue in 2018 is forecast to be $12.49 billion, up 5.4 per cent. U.S. party and event revenue is expected to reach $3.4 billion in 2018, up 8.8 per cent. The ARA also forecasts total investment in equipment by rental companies to reach $13.9 billion in 2018, up 7.8 per cent over 2017.
CATERPILLAR TO SELL OFF FORESTRY BUSINESS
Caterpillar has announced that it has entered into a preliminary agreement with Weiler to sell the Cat purpose-built forestry business. The sale is subject to negotiation of a final agreement, the closing of which is expected by early 2019.
“We remain committed to supporting our forestry customers and the forestry industry,” said Tom Pellette, Caterpillar Construction Industries group president. “The sale of the purpose-built forestry business enables Caterpillar and Weiler to serve the complete forestry industry while providing customers with the same outstanding sales and service support they’ve come to expect.”
Caterpillar will continue to provide forestry excavators designed for log loading, processing and other forestry applications, in addition to supplying core Caterpillar equipment to the forestry industry. Weiler will design and manufacture purpose-built forestry products, which will be available through the Cat and Prentice dealer networks. The proposed sale includes the purpose-built forestry product line consisting of wheel skidders, track feller bunchers, wheel feller bunchers, knuckleboom loaders, and related operations facilities including the manufacturing plant and warehouse in LaGrange, Ga., the demonstration and training center in Auburn, Ala., and the legacy Prentice parts distribution center in Smithfield, N.C. Founded in 2000, Weiler has a long-standing history of successfully manufacturing purpose-built equipment distributed through the Cat dealer network.
INDUSTRY NEWS
BERTRAND SUCCEEDS DUBE AS PRESIDENT OF ACCES LOCATION
Harold Dube, president and founder of Acces Location in Beloeil, Que., has decided to retire. On July 25 he closed the sale of his shares to Luc Bertrand, vice-president, as well as other shareholders in the company: Fonds regionaux de solidarite FTQ and Yvan Blais. Until the end of 2018, Dube will stay alongside Bertrand as a mentor to ensure a smooth transition. In the new year, he will continue on, as needed, in the capacity of advisor to the new president.
Dube is pleased to leave the company in good hands, saying, “Luc has been employed at Acces Location since 2006. After only five years of service, he became my business partner. His knowledge, experience in the industry and leadership will enable the continuing and successful growth of the company.”
Bertrand and the entire team at Acces Location highlighted Harold Dube’s remarkable career, calling him a visionary who patiently built a company appreciated for the quality of its service and equipment. Known for his human qualities, his listening ear and incomparable generosity, Dube is highly esteemed by all. “Harold’s life and work have left a mark on Acces Location,” Bertrand said. Acces Location offers a wide variety of services for aerial equipment including rentals, training, sales, transportation, maintenance and repairs.
Harold Dube (left) and Luc Bertrand
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
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 equipment subtypes covered: 10
Number of participating rental companies: 70
Total number of rates collected:
50,912
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Call 1-800-270-0600 for the name of the Okada America, Inc. Distributor nearest you.
2019 Trade Show Dates
BC Regional Trade Show: January 18-19
Cloverdale Rodeo & Exhibition, Surrey BC
Atlantic Trade Show: February 8-9
Casino NB, Moncton NB
The ARA Show: February 17-21
Anaheim Convention Center, Anaheim CA
Prairie Regional Trade Show: March 8 -9
Edmonton Expo Centre, Edmonton AB
Quebexpo: March 26-27
Centrexpo Cogeco, Drummondville QC
CRA Hospitality Event
Sunday, February 17, 2019
Regular Members:
Don’t forget to register for the CRA Hospitality Event when you sign up for The ARA Show. Register today at arashow.org
Associate Members:
There are still sponsorship opportunities available! To register, visit www.crarental.org for more information
UNITED WE STAND
Georgina Rent-All gets by with a little help from friends.
When the new owners of Georgina Rent-All purchased this long-standing business with the intent to take it to the next level as quickly as possible, they were impressed with how accepting the area rental community was.
by JACK KOHANE
“Everybody has been great to us,” smiles Matthew Parlette, who co-owns the 1,200-square-foot shop with its accompanying small engine repair bay, together with his wife Candace. “The rental operators here have a lot of experience and business savvy and don’t mind sharing it with us new kids on the block.” That extends to referring customers to each other if one of them doesn’t stock an item. Though they’re newcomers to rental service, the Parlettes admit that gaining increased market share would be a far tougher road if not for the expert resources they have at their disposal.
Even citing location as a prerequisite for any thriving business, Georgina Rent-All has always defied the odds. Embraced by rolling hills of sweet corn and acres of wild blueberries on the rural outskirts of Keswick, a growing community of produce and poultry farms as well as commuters bound for Toronto, an hour south on Highway 404, this might not seem the ideal spot for a rental service shop. But what spurred the Parlettes to take a chance on buying Georgina Rent-All from its retiring owner was that they recognized this operation had a solid sales record since opening in 2005, servicing a burgeoning customer base of commercial accounts and affluent DIYers, providing small, medium and large equipment for a range of projects. Prior to that, the building (built in the late 1950s), complete with service bays, achieved something of iconic status among the locals as one of the few nearby auto repair shops. The potential, as the Parlettes saw it, was apparent. They took the plunge to independent
entrepreneurship in early 2018.
“The building has been here since this area was called cottage country,” smiles Candace, adding that this area has changed by leaps and bounds over the years. Much of that is due to Keswick’s close proximity to Toronto, as well as to the million-dollar, year-round cottages hugging the southern tip shoreline of Lake Simcoe, the province’s fourth-largest lake. Where there were once hunting and bait shops, today there are strip plazas, Walmarts and upscale subdivisions. The town of Georgina’s bedroom population is on the rise too, with a five-per cent increase since 2011 (currently about 45,000 inhabitants) according to the latest census. That bodes well for the continuing fortunes of Georgina and its rental service businesses. “We’re set to capture more of this growing market,” nods Candace, who originally hails from Illinois and then came to Toronto in 1996.
Courage and a can-do gumption have long been the hallmarks of Georgina. Sited kittycorner from the Parlette’s shop are the armoured tanks and cannons on display at the Georgina Military Museum, as well as the close-by log houses of the Georgina Pioneer Village commemorating its first settlers.
Striking out for the couple as they settled into their roles as retailers also meant striking up relationships with others in the know. “We picked their brains for information about running a business and we got plenty of support in return,” enthuses 40-something Matt. The couple now divides their time between their three young kids at home and working the customers
at the shop. Matt retains his demanding day job as a firefighter – he’s a 25-year veteran of Toronto Fire Services. He also helps out doing machinery repairs alongside their thick-bearded mechanic maven, Bob Davis.
To kick-start their learning curve, the Parlettes reached out to Bradford Rental. They proved very forthcoming with tips on running a tight rental ship and with product information. As smart networkers, the Parlettes leaned on and learned from, Dan and Gary Porter, owners of Bradford Rental Sales and Service (founded 1975), located 30-minutes southwest of Georgina. “You can’t buy
their level of know-how,” muses Matt. Asked why they offer their expertise on successful retailing to raw start-ups who might wrench market share away, Dan replies: “The bottom line is that we’re all in this game together. It’s mutually beneficial for everyone if we strive for unity. That’s our strength. And who knows, maybe I’ll need help from someone, someday. I trust they’ll be there for me too.”
Richard English, owner of nearby Black River Rental, understands what the Parlettes are going through as startups. “I opened my doors in Keswick six years ago, so I’m a fairly new compa-
ny too,” he says in a phone interview. “When I started out, I needed assistance too from people in the industry. They gave me gems of wisdom gained over years to help us along. And they gave us a break on mark-ups on tools and equipment we ordered from them. Hey, we’re all working together to service our community.”
In addition to working their supplier network hard to re-establish those key relationships, some of which had waned over former times, the Parlettes sought out financial counsel. They took their business case to the South Lake Community Futures Development
Jumping into the rental business has been a new adventure for Candace and Matt Parlette, but the advice from other local stores and help from local economic development organizations has helped a lot.
Corporation (CFDC), a federally-funded, not-for-profit, community-based initiative that provides business loans to new start-ups and existing businesses.
Candace proudly wears her new Rent-All t-shirt emblazoned with the snazzy logo and the words: How May I Help You? “Our team members will be wearing these shirts and we’re planning to offer these tees and baseball caps for sale to customers and as giveaways
for upcoming community events and in-store promotions. We’re also involved in the local Welcome Wagon initiative that will introduce us to new residents to Keswick. It’s our goal to keep us topof-mind to customers for their rental needs.”
As part of their business outreach to the community, the Parlettes are sponsoring internships in the small engine repair programs and courses provided
at Toronto-based Centennial College of Applied Arts and Technology and Georgian College in Barrie, Ont., and the Georgina Trades Training school. It’s their way of giving something back, and to help promote the trades to young people.
Using local Welcome Wagon initiatives to introduce Georgina Rent-All to new Keswick residents’ social media is another first for the Parlettes as they seek innovative ways to get their message out to new and existing customers. Recognizing the importance of getting a presence on the internet, they’ve crafted a new corporate website. It’s the company’s first foray on the internet and spotlights information about the Rent-All shop’s history, location, contact details, owners’ bios, sales events of used and new equipment, supplier lists and their roster of services. Hitting the cyberspace ground running, the Parlettes have widening footprints on Facebook, Twitter and Instagram. “We’re writing educational blogs about how to use our rental lines and to announce local events and community news,” says Candace. They’re also getting into party rentals, including tables, chairs and tents. ”We’re exploring all avenues,” she adds.
But no exploration is needed to predict the weather. A cold Canadian winter is a sure bet for years to come. Banking on a long and frigid ice-fishing season, one that’s sure to lure enthusiasts from far and wide to snag buckets of Lake Simcoe trout, whitefish, perch and pike, Georgina Rent-All is offering the SnowDog line of utility task machines. “We’re an outdoorsy community here. These machines get folks into the wild, over ice, snow and woods to get where they’re going. It’s a new line for us, but we’ll try it out starting in the fall.” It shouldn’t be a long wait for the icy grip to set in and the fish to bite.
“There’s a lot of stresses for people starting out in business, even one with a good track record like ours,” notes Matt. “But we’ve had a lot of help and input from those who understand where we are coming from and where we want to be. We’re very thankful.” With this kind of industry support, Georgina Rent-All looks to be around for a long time to come.
by Russ Dantu
Marriott meltdown
As I write this, I’ve just returned from competing in the semi-finals of the World Championships of Public Speaking that was held in Chicago in August. I placed third in my heat, which leaves me in the top 30 speakers in the world for Toastmasters International for 2018 in this contest. Considering over 35,000 people compete each year, I am fairly happy with this showing, although I placed in the top 10 in 2015!
We were staying at the Marriott Marquis which itself is beautiful – everything you would expect from a Marriott property. The rooms were nicely done with all the amenities you would think this hotel chain would have, except for a swimming pool, which I found quite odd. Marriott properties have always boasted about providing service excellence. I’ve stayed in many over the years and for the most part, I have been happy. Being that this is a brand new property that just opened late last fall, I expected it to be an exciting place to work where team members would be smiling, have great energy and be bending over backwards to ensure the customer experience was a positive one.
The front desk and housekeeping staff all seemed to be OK, but the restaurant staff was awful, to put it bluntly. We did have two wonderful servers there, one of which was the daytime supervisor who wasn’t supposed to be looking after us but she did, and the other was an evening server. The rest of them didn’t smile, didn’t seem to want to be there and walked around at a snail’s pace. The complete environment was disturbing and getting proper service from most there was not happening. Everyone from the hostesses, bartenders, wait staff and bus boys seemed to be very unhappy. We noticed this from the first time we ate there and the four subsequent times we did as well. There wasn’t much of a selection close by for eating, so we found ourselves taking a cab downtown for several meals because we got tired of being an inconvenience to the hotel staff.
It is rare that I don’t tip, unless the service is extremely bad, and I was very close on several occasions at this property. My tips were
minimal, except when I had exceptional service from the two employees mentioned. We did chat with the supervisor who took notes and responsibility for her team, which impressed me. She said they all worked very hard but she would be having a meeting with them to bring our comments to their attention. Before you assume it may have just been my wife and I being too picky, please let me say that many people we spoke to at the convention were not impressed with the service.
This got me thinking about the rental business. Like many hotels, you might only see a customer come through once for a special event or occasion. Whatever the experience you give them will determine if they use your services again (should the need arise somewhere down the road) or whether they will recommend you to their friends or associates.
Customers pay good money to rent our products or services and if we don’t take care of them each time they do so they won’t be customers for long. That will certainly be the case if I ever stay in Chicago again. The Marriott Marquis was a huge letdown and at $300 per night Canadian, that should not happen and I would definitely stay elsewhere.
In your particular market, there are always choices as well. Educating and inspiring your employees to make the customer feel like a million dollars each and every time they walk through your door is ongoing work. Never assume it is happening. Check in on your employees and your supervisors regularly to make sure they are delivering what you expect them to deliver. Check in with your customers to make sure they are happy.
If you fail to do this, you will only realize there is a problem when you start seeing a decrease in your numbers. By then, it could be too late. By being proactive, you can eliminate any issues and remain at the top of your game. 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
CRA PRESIDENT’S MESSAGE
YOUTH MOVEMENT
No gimmicks, just great networking.
by MIKE MALTBY
Young professionals are the future of our industry and developing next year’s leaders, as well as leadership for decades to come, is something about which all associations including the Canadian Rental Association spend a considerable amount of time thinking. I’ll be blunt: over the years, most efforts to appeal to younger rental people have failed and the perception has been that younger people are just not interested in joining associations anymore. The term “not engaged” gets thrown around a lot in these discussions.
As a member of the Young Professionals group within the CRA, I can assure you that my generation and the generations that follow me will always receive a benefit from joining an active association. But, like everything, we all get out what we put in. If you are a member of the joint CRA/ARA Young Professionals Network, the best thing you can do, at minimum, is to attend a local, national or international event.
Some of the fault for our failure to attract the younger generations rests squarely at the feet of the leadership of not only our own association but associations just like ours across the industry. For too long, Young Professional events have centered around social activities and fun events because that is what the older leaders thought would engage us. For whatever reason the leadership forgot about the “professional” portion of the Young Professional Network and thought that we would see value in being handed arcade tokens and being set loose for a couple hours. When that didn’t work they tried some other gimmicky programs that were equally a waste of time. But I will give them credit for trying something new and those events did at least get the ball rolling.
Progressive associations like the CRA and our American sister organization have adapted. The current CRA/ARA Young Professional Network is much heavier on the professional section of its title. If you can spare the time away from your business, you should definitely check out the Young Professional Conference. This year it has been expanded to offer both an east coast and west coast option. I promise no one will hand you any tokens! Instead you will learn about lean management during “Introduction to Lean.” This education workshop will teach you how Lean practices from the world of manufacturing can make major changes in the business you work in.
If you can’t take the time away from your business to attend the conference, then come on out to your next members meeting. I know the name sucks (who wants to go to another meeting?) but the networking opportunities alone will be worth it.
If you’re of the age I like to call “Not A Professional Person of Youth,” or NAPPY if you prefer, but know of someone who is, then there are things you can do to help us engage with them.
The easiest thing to do would be to email or call membership services and have that person added to our Young Professional Network. This will give them access to the conference as well as exclusive content and events.
The other big support you can be to both our Young Professionals and your association would be to encourage them to attend a local event. The insight and networking opportunities will be well worth the time investment. CRS
Mike Maltby is vice-president of Ingersoll Rent-All in Ingersoll, Ont. Mike has been a fixture at CRA Ontario events since beginning his time with the association in 2006, and looks forward to connecting with CRA members nationally in the coming years.
EASY FUELLING, EASY MONEY
If it needs fuel, it needs a fuel tank.
Easy money is hard to come by for most businesses. Yet, in the equipment rental industry, many companies pass up easy money year after year by not offering a product that a majority of their customers need at one point or another: fuel tanks.
by JOHN CLEARY key accounts manager for rental, Western Global
Approximately 98 percent of energy consumed at construction sites comes from diesel, making fuel tanks an easy upsell for equipment rental companies.
Regardless of the equipment, if it runs on diesel it will eventually require refuelling. Since 98 per cent of energy consumed at construction sites comes from diesel, offering customers a convenient, cost-effective solution for refuelling should be a no-brainer, especially if there’s an opportunity to earn easy money in the process. However, since tanks are not always perceived as a core rental product, this opportunity is often overlooked. Before investing in a fleet of fuel tanks, here are a few things to consider.
DECEPTIVELY HIGH ROI
The fact is, fuel tanks have ROI potential that far exceeds most other construction rental equipment. They have a low purchase price,
minimal cost to own and typically experience high rental rates. Additionally, fuel tanks require little maintenance outside of statutory two-and-a-half- and five-year inspections, as they have no moving parts such as gearboxes, hydraulics or engines.
To demonstrate the ROI potential for rental tanks, here’s a scenario using actual data from a large rental company.
Rental Company X purchased 25 tanks of varying capacities at about $5,500 each. The parts, labour, maintenance and inspection costs per tank, on average, were $129 per year. That brings the 10-year cost to own to about $6,790. Considering a 10-year-old tank retains about 40 per cent of its original value when sold at auction — a $2,200 value in
Find specs or locate a dealer KubotaEngine.com/Power With a GL Series g enerator from Kubota, all maintenance locations can be accessed f rom a single, larg e access panel on the side of the g enerator: oil g aug e, oil f ilter, oil f ill, f uel f ilter, water tank, battery and air cleaner. Spend less time on upkeep and more time keeping up with the work. How’s that for a one-sided argument?
TECH TIPS
Fuel tanks have ROI potential that far exceeds most other construction rental equipment, thanks to a low purchase price, minimal cost to own and high rental rates.
this case — the total yearly investment per tank is only $459. Meanwhile, the company rents the tanks for $500 per month with a 70-per cent utilization rate, generating average annual revenue of $3,741 per tank — about 800 per cent more than the cost to own. Multiply that by 25 tanks rented over 10 years before being re-sold and the potential revenue easily exceeds $930,000.
Returns like this are virtually unheard of with other rental equipment. And, considering the value and convenience that rental tanks provide customers, they aren’t a hard sell at the counter.
DEVELOP A PLAN
While many rental companies already embrace the high ROI of tank rentals, those looking to add fuel tanks should start by completing some homework. A good place to start is by having conversations with existing clients about their current refuelling methods and any frustrations they face. Also, speak with local fuel vendors to explore opportunities for business partnerships and options for getting set up to sell fuel on site — another complementary revenue source.
Once the decision is made to add rental tanks, it’s important to determine rental prices, as well as rates for pumps, fuel and any other services. In addition, ensure that all appropriate legal, licensing and regulatory steps are in order for handling and transporting tanks as well as selling fuel.
Finally, create a strategic marketing and sales plan and ensure all employees are trained and fully understand the benefits, features and value of tank rentals. To help employees determine whether to suggest a fuel tank, make it simple. Some companies incorporate reminders within the computer system, complete with a pop-up box to prompt associates to recommend a tank when a customer rents certain equipment. Another simple rule: If a customer rents two or more pieces of equipment for two or more weeks, a fuel tank should be suggested as part of the rental. Also, adding reminder decals near the fueling points on diesel equipment can help get
customers thinking about the benefits of a tank early in the process.
Once a business plan is set, find tanks that will make rentals as easy and profitable as possible.
CHOOSE TANKS DESIGNED FOR RENTAL
Not all tanks are designed for rental. Choosing tanks that are can be the difference between revenue and regret. While round tanks are common due to low manufacturing costs, they’re not as rental-friendly as new cube tank designs. Cubeshaped rental tanks are often built and approved for being transported while full. Round tanks, meanwhile, need to be emptied and cleaned before moving. Transporting full tanks also eliminates the need for the initial fuel delivery once tanks arrive at a customer’s site. And when the rental is complete, cube tanks can be collected with fuel still on board, which can often be reclaimed by the rental centre.
Tanks designed for rental should also be easy to load and secure on a truck bed or trailer. Some tanks feature four-way forklift pockets for simple loading and unloading as well as crane hooks built into the tank frame. The sturdy steel frames on some cube tanks allow them to be stacked, too, so they take up considerably less space at the rental yard than round tanks of the same capacity.
Another tip to ensure success is to work with a tank manufacturer that simplifies the buying and renting process for rental centres. Some leading manufacturers deliver tanks rental-ready with all meters, pumps, vents and other accessories installed, reducing labour and setup costs for rental dealers. Some manufacturers will even work with rental companies to develop successful promotional strategies, including marketing ideas and proven solutions for increasing rental rates. For example, the manufacturer might customize a tank to prominently display the rental company’s name and logo or even powder-coat it in branded colours, which turns each tank into a mobile billboard that will spend a majority of its time at jobsites in front of potential customers.
To determine the demand and better gauge customer interest, it may be best to start with a small inventory of tanks before making a more significant investment. More often than not, however, rental managers end up asking themselves why they left easy money on the table for so many years.
So, if you’re in the business of renting diesel-powered equipment and are not taking advantage of the additional revenue available with tank rentals, it may be time to consider making fuel tanks one of your company’s core rental products. CRS
ABOUT WESTERN GLOBAL
Western Global is an international designer and manufacturer of industry-leading tanks and equipment for fuel and fluid handling. Building on a legacy that spans five decades, Western Global offers a wide range of solutions for the safe transportation and storage of fuel, diesel exhaust fluid, lubricants and more. Because every application is unique in its operational storage needs, Western Global engineers industry-specific solutions to ensure success in all of your business endeavors. Learn more at western-global.com or connect on social media: Facebook, Twitter, YouTube and LinkedIn.
New and cleaner engine technology makes your customers’ experience better.
ENGINE SHOWCASE
BETTER IN ALL CATEGORIES
8 vanguardengines.com
Vanguard has introduced the first in a complete line of all-new single-cylinder horizontal shaft commercial gasoline engines built from the ground up based on customer input. The new line of engines includes an advanced version of TransportGuard, Vanguard’s single ignition and fuel shutoff designed to prevent oil dilution during transport, and is backed by the support of 40,000 servicing dealers worldwide. The 6.5-gross-horsepower Vanguard 200 was designed to address customer needs, such as improved starting, less noise and vibration, reduced maintenance and better service and support. It performs well in each of those categories, boasting easy cold weather starting down to -20 F, 15 per cent less vibration and 40 per cent quieter performance than other models. Common maintenance activities such as air filter and oil changes have been significant-
ly reduced in the Vanguard 200. The integrated cyclonic air filtration system comes standard and extends air filter maintenance intervals to up to 600 hours while oil change intervals are a recommended 200 hours. This means half as many air filter and oil changes as required by other brands, resulting in reduced maintenance costs and downtime. All power levels are stated as gross horsepower at 3,600 RPM per SAE J1940.
SPECIAL FOR RENTAL
8 perkins.com
Perkins has launched a new range of Perkins Syncro engines designed specifically to address the unique challenges of the rental market. The Perkins Syncro 1.7 liter is a three-cylinder turbocharged option. The Perkins Syncro 2.2 liter four-cylinder engine comes in two options, one turbocharged and the other turbocharged and aftercooled. The Perkins Syncro 1.7 provides 39 horsepower with a maximum torque of 20 newton-meters at 1,800 RPM, with rated
speeds up to 2,800 RPM. The Perkins Syncro 2.2 liter turbocharged aftercooled model has been boosted to 50 67 horsepower with a maximum torque of 208 Nm at 1,800 RPM. The turbocharged-only model offers up to 48 horsepower. All three engines meet U.S. Environmental Protection Agency Tier 4 Final emission standards. Design features make these engines particularly suited to the rental industry. They have a high-pressure fuel system that gives a clean combustion burn. This means the engine doesn’t require a diesel particulate filter or the addition of diesel exhaust fluid. Instead, the Perkins Syncro 1.7 and 2.2 liter engines use a simple, rear-mounted diesel oxidation catalyst after-treatment, which is service-free, meaning there is no machine downtime. It requires no regeneration or additional operator functionality – end users of skid steer loaders, aerial work platforms, lift booms, wheeled loaders, hydraulic excavators, rollers, and others can simply turn the machine on and get the job done.
In North America, Perkins offers rental houses the Perkins Rental Support Program that is fully customizable to improve rental fleet maintenance and return on
investment. The program provides Perkins engine training, engine diagnostic capability and expertise to support Tier 4 engines and minimize downtime. Perkins Syncro 1.7 and 2.2 liter engines are made at Perkins’ Griffin, Ga., manufacturing plant.
OUTSIZED TORQUE
8 hatz-diesel.com
Hatz has introduced its new liquid-cooled three-cylinder diesel 3H50T engine in the fan-to-flywheel version as well as in the open power unit variant. The new engine model in the performance class under 19 kilowatts extends the product range of H-series engines that were specially developed by Hatz for current and future requirements on power, performance, reliability and international exhaust gas standards. With a displacement of only 1.5 liters and a maximum torque of 130 Nm the Hatz 3H50Tachieves superior torque for its class. The Hatz 3H50T achieves its output without an intercooler. It features a very compact
RENTAL TOUGH.
For more information on Hilti products and rental market, call 1-800-363-4458.
Hilti. Outperform. Outlast.
ENGINE SHOWCASE
construction without DPF delivering significant benefits particularly for use in compact machines. With its low weight and small installation dimension the performance data of the engine even exceeds many older engines in the 19- to 37-kilowatt class. This gives many machine manufacturers an outstanding alternative for planning their compact machines with small engine compartments and for reasonably upgrading existing machines to EU Stage V – with simultaneous safeguarding of previous investments in design and development. The new Hatz 3H50T engine satisfies current and future emission regulations, also including EU Stage V as well as EPA Tier 4 final. Due to its modern design and construction the engine achieves the specified values even without an additional diesel particulate filter. This makes the engine suitable for compact machines with restricted space conditions in which a diesel particulate filter is not possible. The Hatz 3H50T emits an extremely low particle mass that also achieves only a tenth of the limit value without any further exhaust emission after-treatment such as exhaust gas recirculation or diesel oxidation catalyst. For EU Stage V this is 0.4 grams per kilowatt hour. The Hatz 3H50T OPU is a plug-and-play solution that is the ideal choice particularly for manufacturers of compact machines that need engines fully ready for installation. Major examples of use include lifting platforms, hydraulic systems, drilling machines and stationary applications such as pumps and alternators. With its integrated and optimal design of the radiator, hoses and cabling as well as the electronics, the Hatz OPU concept greatly simplifies design and installation.
PERFECT FOR COMPACT APPLICATIONS
cummins.com
The 2.8-liter Cummins QSF delivers performance at 74 horsepower, which is comparable to that provided by larger engines up to 3.6 liters in an envelope size that’s similar to 2.2-liter engines used at 49 horsepower. High-pressure common rail fuel injection together with full-authority electronic controls and a Cummins waste-gated turbocharger combine to deliver a very impressive peak torque of 221 foot-pounds. This advanced technology enables the QSF2.8 to meet the near-zero emissions standards of Tier 4 Final/Stage IV using only cooled exhaust gas recirculation and its proprietary diesel oxidation catalyst. The same QSF2.8 engine without DOC meets Tier 3/Stage III emissions regulations for regions where those standards apply. The DOC is truly “fit and forget” technology – a totally passive system that never needs any form of regeneration as required by a diesel particulate filter. It also gives equipment designers the flexibility to mount components separately from the exhaust muffler or as part of a combined catalyst-and-muffler unit. Specifically designed for compact four-cylinder applications, the CCC benefits from Cummins Emission Solutions’ vast experience with DOC technology. The compact design of the QSF2.8 includes the proprietary Direct Flow air cleaner, which takes up significantly less space than conventional cylindrical air filters,
and has enhanced dust-holding capacity, for longer service intervals. Innovative use of composite materials, together with a sculptured cast-iron block, give the QSF2.8powered equipment a significant weight advantage at just 507 pounds. Maintenance is made simpler through remote mounting of the electronic control module for rapid plugin diagnostics and data downloads using electronic tools such as the QuickCheck 5200.
STAGE V READY
8 deere.com
The PowerTech EWX industrial diesel engine from John Deere produces 50 to 74 horsepower. The engine is ready to work meeting EU Stage V emissions regulations. This means OEM customers currently using a John Deere engine with a diesel particulate filter won’t have to re-engineer their machines to meet the requirements of Stage V regulations. John Deere has been using DPF technology since Interim Tier 4/Stage III B and is well positioned to help customers transition to the EU’s Stage V standard. The company has extensive experience with the development and integration of DPFs in both John Deere and OEM equipment, with more than 425 million DPF hours in the field. Waste-gated turbochargers are designed to develop more airflow at lower engine speeds to improve lowspeed torque. The waste-gate control device bleeds off a portion of the exhaust flow at higher engine speeds. Waste-
gated turbos deliver improved transient response and higher peak torque without compromising engine envelope size. They also provide the lowest installed cost across a given power range. These engines utilize a catalyzed exhaust filter that contains a diesel oxidation catalyst and a DPF. The DOC reacts with exhaust gases to reduce carbon monoxide, hydrocarbons and some particulate matter. The downstream DPF traps and holds the remaining PM. Trapped particles are oxidized within the DPF through a continuous cleaning process called passive regeneration. Passive regeneration occurs during normal operating conditions when heat from the exhaust stream and catalysts within the exhaust filter trigger the oxidation of the trapped PM. If passive regeneration cannot be achieved due to low temperature, load, or speed, then PM is removed using active regeneration — an automatic cleaning process controlled by the exhaust temperature management system.
KEEPS GRASS OUT
8 kawasakiengineusa.com
Kawasaki has introduced an all-new engine and accompanying air filtration system. The FT730V-EFI is the first engine from Kawasaki to employ vortical air filtration, an air-intake methodology that significantly combats many of the ongoing issues faced by lawncare professionals as well as homeowners. VAF,
which provides longer engine life due to its inherent debris-cleaning effects, also requires less maintenance as the pre-filter and filter can run for up to 50 hours before requiring cleaning. The VAF technology incorporates air intake methodology that is engineered to focus on getting clean air into the engine without also introducing external debris, such as loose grass clippings. This advanced, high-efficiency air intake system uses centrifugal air movement to move heavy grass, dust, and debris away from the air filter, then ejects accumulated debris out of the engine through a duckbill debris ejection valve. Once the ejection process is completed only fine dust is left, which is easily trapped in the filter. The benefits of this system are many, with cleaner intake air contributing to longer engine life, reduced maintenance, and improved performance. Grass entering the cooling air path system under normal mower use is easily removed through the large cleanout ports located over cylinder heads. The cover for these clean-out ports is neatly integrated into the VAF cover. Kawasaki’s new FT730V-EFI system employs an integrated e-governor that immediately adjusts engine power-to-load for maximum cutting power at higher speeds, cleaner mowing when units are used in heavy turf, as well as minimizing the need for re-cuts. The same EFI system is currently available on three other Kawasaki engine models from the company’s FX and FS product lines. Kawasaki’s single, sealed ECU— the heart of the company’s EFI system — is sufficiently protected to avoid exposure to weather, dirt, and vibration.
NATURAL GAS SOLUTION
deutzamericas.com
With a legacy spanning six decades, the aircooled Deutz 900 series is renowned as one of the most reliable and trusted diesel power plants in the world. Deutz Corporation expands on this legacy with the all-new TCG 914 series, a turn-key gas version of this successful engine targeted for agricultural, oil and gas sectors and applications demanding extremely robust, reliable power for continuous-duty operation. Engineered
to operate using dry natural gas in three-, four-, or six-cylinder naturally aspirated or six-cylinder turbo- charged configurations, TCG 914 series gas engines accommodate power demands in the 32 to 114 horsepower range. TCG 914 Power Units include the basic engine with a belt-driven, high-efficiency cooling blower; a heavy duty skid base; and SAE 3 flywheel housing and 10-by-11.5-inch flywheel; a 12-volt electric starter and 12-volt alternator; a fully assembled and wired ignition system; an integrated programmable engine control unit; a Deutz safety shutdown control panel; and air intake manifold and catalytic converter for EPA-compliant versions and a heavy duty drytype air cleaner.
AUTOMATIC DECOMPRESSION
8 engines.honda.ca
As the world’s largest engine manufacturer, Honda is recognized for its expertise and leadership in developing and making high quality engines that provide superior performance in every condition. When customers choose a product powered by a Honda engine, they know they will get an engine they can count on, now and in the future. Honda offers a wide
Lightweight, popular Gen-Eye POD® from General Pipe Cleaners now offers optional Wi-Fi capability. The Wi-Fi transmitter lets you record video and photos from your inspections to your Smartphone or tablet, then send it on to your customers. Always easy on both back and budget, the compact package combines camera, reel and monitor all-in-one. You just grab it and go!
• drainbrain.com/en/products/gen-eye-pod/
variety of engines from a singlecylinder, 360-degree-inclinable 35cc model to a powerful twin-cylinder 690cc model. Honda’s overhead valve and overhead camshaft designs enhance combustion efficiency, help to reduce fuel and oil consumption and ensure excellent thermal balance. Also the durability, reliability and service life of the engine is extended. All Honda engines are equipped with OHV or OHC technology. To ensure your customers can start the Honda-powered products in your fleet all Honda engines are equipped with an automatic decompression system which enables easy starting. Honda stands behind all their engines by providing a three-year commercial warranty on all GX engines 100cc and larger.
LARGE DISPLACEMENTS
8 kohlerengines.com
Sized to fit compact installations, Kohler Command PRO CS engines help deliver the goods with an advanced overhead valve, slant-cylinder design and a steel-forged crankshaft all in one durable, efficient, and reliable little package. The integrated exhaust system and oversized mufflers enable smooth, quiet operation. Large displacements and a high-inertia flywheel provide peak torque performance.
OMISSION
The “Supplier Directory” that was mailed along with your September issue of Canadian Rental Service missed the following listing:
Heatstar by Enerco 4560 W . 160th Street Cleveland, Ohio 44135 (216) 916-3000 www .heatstarbyenerco .com
We apologize for the omission.
SAFETY FIRST AND LAST Body includes mind
by Jeff Thorne
We have all had bad days. You know, those days where work has piled up, deadlines are upon you, co-workers are complaining about everything without offering a solution, your supervisor or manager expects the world and the walls seem to be closing in around you and your performance is starting to slide. Employers need to look at mental health and its psychological components through the same lens as the physical environment.
There are thirteen psychosocial risk factors that have been outlined in detail in the Canadian Standards Association standard “Z1003-13 –Psychological Safety in the Workplace.”
1. Psychological support – Employees need to feel supported psychologically by co-workers, supervisors and managers. Failure to have support can lead to absenteeism, turnover and poor work and safety performance.
2. Organizational culture – Workplaces that exhibit trust, honesty and fairness focusing on a healthy culture assist in enhancing employee well-being. A poor culture can undermine the effectiveness of the most well-intentioned programs.
3. Clear leadership and expectations –When there is effective leadership and support employees have direction and purpose and know how they contribute to the organization.
4. Civility and respect – A civil and respectful workplace where workplace parties are considerate of one another leads to fairness, positive attitudes and improved morale. A workplace lacking this leads to conflict, unacceptable behaviours and dissent.
5. Psychological competencies – A good job fit must incorporate the physical and psychological demands of the job. When the job fit is poor, it can lead to job-related stress, energy depletion and poor productivity.
6. Growth and development – Employee encouragement, support and development of technical, interpersonal and emotional skills helps build confidence and enhances employee wellbeing. Employees that do not feel challenged can grow bored in their role and their performance will suffer.
7. Recognition and Reward – Employees receiving recognition for a job well done have more energy and commitment to achieving personal and organizational goals. Lack of recognition can lead to poor confidence and lack of trust.
8. Involvement and influence – Employees that have input become more engaged and take more pride in their work. Employees that don’t feel like they have a voice in their workplace feel alienated and this can lead to increased turnover.
9. Workload management – This is typically the biggest workplace stressor. Lack of the time and resources to complete a task leads to psychological risk. Increased demands without opportunities for control result in fatigue, stress and strain.
10. Engagement – Employees that are physically and emotionally engaged feel more connected to their work and are motivated to perform well. Negative engagement leads to turnover, poor morale and has a negative economic impact.
11. Balance – Achieving a work-life balance provides greater flexibility allowing employees to minimize work-life conflict. When this can’t be achieved, stress can accumulate. This imbalance can lead to anger, fatigue and mental withdrawal.
12. Psychological protection – Employees that feel psychologically safe are actively engaged in their role and feel protected. When they do not feel psychologically protected they are demoralized and disengaged and may perceive the workplace as unpredictable.
13. Protection of physical safety – Employees that feel physically safe through hazard identification, risk mitigation and training will feel confident, secure and engaged. Workers that don’t perceive their work environment as being physically safe will feel less secure and less engaged.
Mental health and wellness has become one of the most globally discussed topics in health and safety in recent years and employers need to be diligent and focused on this topic. CRS
Jeff Thorne is manager of training at Occupational Safety Group.
