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December 2014

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Data Man Public Works Fleet Manager Michael Brennan represents a breed of customers who rely on telematics and strong partnerships with their dealers.

Plus: 26 Members make politics personal 30 Turn up your business beat at CONDEX 56 Meet the guys who donate genius

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Contents

Award Winning

DECEMBER 2014 Editorial Team Executive Editor and Director of Programs KIM PHELAN kphelan@aednet.org

Vol. 80, No. 12

Nothing beats sticking up for your customers.

FEATURES

Editor’s Note 7 The new wave of customer expectations.

Contributing Editor JOANNE COSTIN pr@aednet.org

On the Numbers 63

Graphic Production EVA BELMONTE design@aednet.org eva@neggie.net

The owner’s year-end checklist

Aftermarket 65 Hit this dozen and you’ll never be disappointed.

Columnists GARRY BARTECKI Financial Consultant to the Construction Equipment Industry CHRISTIAN KLEIN AED Vice President of Government Affairs ELI LUSTGARTEN ESL Consultants RON SLEE R.J. Slee & Associates

Washington Insider 67 Congressional Makeover Positions Distributors for Success 22 AED Vice President of Government Affairs Christian Klein analyzes industry implications of midterm election results.

Makin’ It Personal 26 AED members broke all records on PAC contributions and personal involvement to to support pro-industry candidates all over the country.

Vice President–Sales/ Publisher DAVID W. GORDON 800-388-0650 ext. 334 dgordon@aednet.org

DEPARTMENTS Inside AED Groundwork Industry Beat Advertisers’ Index Dealer Data

8 12 14 71 72

CONDEX: Get Out On The Floor 30 2WWDZD %ULHÀQJ 'LYHV into Hot Issues for Canadian Distributors 44

Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 311 aramirez@aednet.org

600 22nd Street, Suite 220 Oak Brook, IL 60523 630-574-0650 fax 630-574-0132 www.aednet.org

Building on the success of AED’s first Ottawa Briefing.

Plus: Play It Safe20 HazCom Compliance

FROM THE COVER

Advertising Contacts

Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org

COLUMNS

From the Chairman 5

Industry Trailblazer 54 A tribute to Ron Slee Data Man: A Public Works Perspective 34 Michael Brennan, an AEMP certified equipment manager, runs Manatee County’s fleet by the numbers – are you ready to help telematics-savvy customers like him?

Open to Suggestions 52 Kirby-Smith Branch Manager Bruce Taylor has an unusual side job and a gift for getting into your mind.

Foundation’s Work – and Volunteers – Are The Real Deal 56 KISS Makes Everything Better: Keep It Simple Sweepers 60 A Closer Look at Stewart-Amos

December 2014 | Construction Equipment Distribution | www.cedmag.com | 3


Please visit us in CONDEX Booth 209


From the Chairman President & CEO - BRIAN MCGUIRE Associated Equipment Distributors Oak Brook, Ill.

For Some Real Fun, Jump into AED Advocacy

Executive Vice President & COO ROBERT HENDERSON Associated Equipment Distributors Oak Brook, Ill.

OFFICERS

There’s nothing like going to bat for your business, your industry, your customers, and your state – but beware: it can be addicting.

Chairman - TIM WATTERS Hoffman Equipment Co., Piscataway, N.J.

Vice Chairman - DON SHILLING General Equipment & Supplies, Inc. Fargo, N.D. Sr. Vice President - WHIT PERRYMAN Vermeer Equipment of Texas, Inc. Irving, Texas Vice President - RICK VAN EXAN Toromont Industries Ltd. Concord, Ont., Canada Vice President - WES STOWERS Stowers Machinery Corp. Knoxville, Tenn. Vice President of Finance MICHAEL D. BRENNAN Brandeis Machinery & Supply Co., Louisville, Ky. Past Chairman - MIKE QUIRK Wagner Equipment Co. Aurora, Colo.

AT-LARGE DIRECTORS

TODD BACHMAN Florida Coast Equipment, Inc. Boynton Beach, Fla. RON BARLET Bejac Corp. Placentia, Calif. DENNIS J. HELLER Stephenson Equipment Inc. Harrisburg, Pa.

LARRY R. MILLER Kelbe Bros. Equipment Co. Inc. Butler, Wis. MITCH NEVINS Four Seasons Equipment, Inc. Houston, Texas MIKE ROONEY Thompson Tractor Co., Inc. Tarrant, Ala.

REGIONAL DIRECTORS

RYAN GREENAWALT Midwest Reg. Alta Equipment Co. Wixom, Mich.

TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. Burnaby, B.C. PATRICK W. MCCONNELL West Reg. Clyde/West, Inc. Portland, Ore. CHRISTOPHER PALMER Northeast Reg. Wood’s CRW Corp. Williston, Vt. GILES POULSON Rocky Mountain Reg. Faris Machinery Co. Commerce City, Colo. JAY RODES, Southeast Reg. Wilson Equipment Co. Lexington, Ky. RICK VAN EXAN Eastern Canada Reg. Toromont Industries Ltd. Concord, Ont. GARY D. VAUGHN South Central Reg. OCT Equipment, Inc. Oklahoma City, Okla.

BY TIM WATTERS

What a great time it is to be an active member of AED! Why? Well, notwithstanding all the phenomenal updates and services our new president, Brian McGuire, is executing at the industry level, the new macro political environment is giving AED some unprecedented opportunities to help foster great economic change in the U.S. Consider that we’ve just been through an historic election, one whose results could visibly alter both what and how things get done in Washington, D.C. (at least for a short while). But let’s be realistic: Change will only come if we engage with our Republican congressmen – the guys whom we have supported for many years – and demand that they get down to business and work with the president to move the nation forward. Now is our chance to get legislation drafted that will fund highway building for a solid six years and really give the economy a healthy shot in the arm. We’re also in a great position to convince our elected representatives and senators to approve the Keystone XL project and reform our pathetic tax code. Winning elections is fun, but look, Congress has to make the agreements necessary to govern this country and get our legislation passed. You’ll see quite a lot written on advocacy in this December issue of the magazine – and one thing that I am very impressed with is the dozens of AED dealer executives across the country who jumped into grassroots activity this fall like kids into a pile of leaves! Remember what I said about this being a great time to be an active member in this association? It’s about to get even better: In 2015, our new regional managers will coordinate another 60 visits by members of Congress to AED-member dealerships, giving lawmakers a first-hand look at the important role our industry plays in their districts. But there’s a lot more to be done.

Our association is leading the charge on numerous fronts, and they need every one of us to engage in the whole democratic and legislative process. It’s a lot simpler – and more fun – than you may think, and our government affairs team in Washington, led by Christian Klein, is ready to help you become a grassroots pro. First, keep yourself informed by reading the newsletters and alerts that come out from AED, giving you the industry insight behind what you see in the media. Visit aedaction.org once in a while, too, which is a great resource on all the public policy issues AED is working on. You should join AED’s new Advocacy Action Group and take a stronger leadership role in your state. And attend the AED Fly-In (or Ottawa Briefing), where you get to mix it up all over Capitol Hill with your reps and senators. Then bring it all home by inviting your lawmakers for a visit to your dealership. They love meeting your employees, they love climbing into our machines for great photo opps, – and you will love the fact they’ll remember you and listen to you the next time you call their office. PS: One More Thing I want to thank you for the privilege of being your AED chairman this year – I will be writing to you one final time next month, but I want to tell you how honored I am to have been given this very cool job for 2014. Wishing you and your family all the joy of the holiday season and a very healthy and prosperous New Year!

TIM WATTERS (timwatters@hoffmanequip.com) is president of Hoffman Equipment in Piscataway, N.J.

December 2014 | Construction Equipment Distribution | www.cedmag.com | 5


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Editor’s Note

You Don’t Need a Cape Supporting telematics data analysis has jaw-dropping results, and this stuff is Hero 101 from now on.

BY KIM PHELAN

Listen to the story of Bubba and Bubba says to himself, “Now, how in data is like drinking from a fire hose. the Cyber-Dealer – a true story of the hell did they do that?” “What do you do with it?” Hoyle asked. tele-heroics. That little anecdote – told far funnier Consolidating data from multiple Once upon a time, oh, about 10 years (and without the “Cyber-Dealer” embrands complicates the issue. But back, a “good-’ole-boy” contractor, bellishment) by Chris Gaylor, president thanks to AEMP’s/AEM’s new telemaBubba, rented a 30-ton excavator from of Power Equipment Co. in Memphis tics standards, as well as third-party IT his local dealer, down Memphis way. – shows that even in its youth, telematproviders and dedicated dealer telemaNow, Bubba was unaware that Cyberics flexed a powerful muscle and was tics teams, those problems are shrinking. Dealer was piloting a new machineable to prevent tall problems in a single The power of telematics is health-monitoring program with his bound. Gaylor recounted the tale durclear. Puttman said the technology OEM, and this particular excavator haping his segment of a dealer panel at enables dealers to be proactive and pened to have a tracking device installed the AEMP Asset Management Sympoproblems become predictable. Instead on it. Bubba didn’t know anything sium in Nashville early last month – he of machines determining downtime about that new-fangled technology; fact shared the stage with Chris Rowan for you, telematics puts the power of is, not many people did back then. He from Thompson Tractor in Birmingham, scheduling downtime into every fleet just needed to move dirt, so off he went. Ala; Jim Hoyle from Scott Equipment’s manager’s hands. Literally. Rowan from It was the era of Tier-2 engines. AlNashville branch; and Ken Puttman Thompson illustrated that the power is though engines could burn clean fuels, from Honnen Equipment in Denver. in the palm of customers’ hands – he they were not always readily available, The whole conference took aim at difcited a customer who monitors maso machines were fitted with special chine data points from his smartphone; ferent angles and business benefits of fuel filters. But the filters were prone to he even used it as evidence of operator deploying telematics. clogging, so Cyber-Dealer determined The panel, which was organized and abuse and fired the guy. The power that one of the critical functions they of the data all ties back to money – moderated by AED’s Bob Henderson, would monitor was fuel pressure just reduced fuel costs and preventing was titled, “Taking the ‘No’ Out of past the filter. machine failure are the obvious biggies. Technology: The Promise, the Power – Sure enough, one day, Cyber-Dealer’s And what’s the promise of and Yes, the Problems – of Telematics.” service team saw that Bubba’s fuel telematics? I hadn’t looked at it this Besides fleet managers galore, pressure was running a fault code – way till Gaylor mentioned it: better manufacturers in attendance (in adthe filter was clogged and the machine dition to those who were attending a machine resale value. A huge range of was just about fuel starved and ready verifiable asset data, including any fault concurrent AEM conference down the to shut down. codes and complete service and PM hall) included Caterpillar, John Deere Cyber-Dealer made the call: “Hey history, is now available to put into the Construction & Forestry, Komatsu, Bubba, is your machine alright?” dealer’s marketing kit for every used/ Case, Ditch Witch, Vermeer, Link-Belt Bubba: “Yeah, it’s running fine.” rental unit. Cranes, LBX, JCB (from the UK), and Cyber-Dealer: “Well, in a few minutes Want to learn more about the Wacker Neuson. Excluding the four it won’t be. We’ve got a guy on the dealer’s role in telematics? We’ve got dealers who participated on the AED way with a fuel filter. When he gets the perfect breakout session for you at panel, I counted personnel from 11 there would you please let him have dealerships: One was a Komatsu dealer, Summit, Feb 10-13. Merry Christmas one and all, and access to the machine?” four were John Deere dealers (includthanks for reading. Bubba Thought Bubble: “What is ing Nortrax) and six were Cat dealers. this guy talking about?” In reverse order of the Three Ps in KIM PHELAN (kphelan@aednet.org) A few minutes later, along comes the panel’s title, here’s my summary of is the executive editor of Construction Cyber-Dealer’s service truck just as dealers’ “lightbulb” remarks: Equipment Distribution and director of Bubba’s excavator starts to splutter What’s the main problem with programs for AED. and shut down. telematics today? Sorting telematics December 2014 | Construction Equipment Distribution | www.cedmag.com | 7


Inside AED

%UDLQ *DLQ 'HDOHU 6SHFLĂ€F (GXFDWLRQ DQG 1HWZRUNLQJ 6WHDO WKH 6KRZ DW 6XPPLW On Feb 10-13, get set for big changes at AED’s annual convention at the Orlando World Center Marriott– register now at aedsummit.com Innovation. Progress. Education. These three words form the tagline for the AED 2015 Summit, but it might also say “This is not your father’s Summit.â€? Significant steps have been taken to elevate the AED Summit to add value and interest for more dealers and more managers within AED’s member companies. It began with the hiring of Sandy Reynolds, president of Meetings & Events USA. A 20-year veteran of association meeting planning, Reynolds is on a mission to make Summit an exceptional event for members. Her experience provides AED access to latest ideas in conference development, building upon AED’s core expertise in identifying issues critical to distributors. “Since the recession, two things have emerged as being critically important to association events: education and networking,â€? said Reynolds. “We learned if we want people to leave their office there has to be a compelling reason to attend.â€? Educational content at the 2015 AED Summit has been expanded to include four keynote sessions as well as six

concurrent breakout tracks focused on different aspects of the dealership. Tracks include Human Resources, Marketing, Sales/Customer Service, Financial/ Rental, Product Support and Executive. According to Reynolds, industry-specific education is not only more relevant, but provides an opportunity to connect with someone who performs your job for another dealership across the country. (continued on page 10)

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Proposed New Members Brandt Tractor Ltd. Regina, Sask.

Yellowhouse Machinery Amarillo, Texax

Nordco, Inc. Oak Creek, Wis.

This list is published each month as required by AED bylaws. Comments on the applicants should be directed to AED President and CEO Brian McGuire 800-388-0650, ext. 326. 8 | www.cedmag.com | Construction Equipment Distribution | December 2014


Please visit us in CONDEX Booth 624


Inside AED

“The goal is to have participation from managers of all dealer departments, especially among up-andcoming leaders who may have not had prior involvement with AED.” To up the networking component, AED is introducing the “CED Live” lounge, a think tank right on the floor of CONDEX. Here, attendees can relax and meet up with each other as well as industry innovators. A new mobile app will help connect attendees on the show floor and throughout the venue. Official After Hours events will be easy, relaxed places for

informal networking. And the Summit Celebration will be the place to be on Wednesday evening. “It will be a huge bash including dinner, entertainment and a live auction supporting The AED Foundation,” Reynolds said. The setting for the stepped-up AED Summit is Marriott’s stunning Orlando World Center Resort. With a wide array of meeting spaces, AED is confident this will be the perfect place to learn, make connections, and for many, stave off the cold of winter. For more information visit www. aedsummit.com.

Schedule-at-a-Glance Tuesday, February 10, 2015 7:00 am - 3:00 pm

Foundation Golf Outing

5:00 pm - 6:30 pm

Welcome Reception

8:30 pm - 11:00 pm

After Hours Networking

Wednesday, February 11, 2015 7:30 am - 8:30 am 8:30 am - 10:00 am

Continental Breakfast Opening General Session Keynote Presentation - Major Dan Rooney A Patriot’s Calling: Leadership, Teamwork and Sacrifice

10:00 am - 3:00 pm

CONDEX

12:00 pm - 1:00 pm

CONDEX Luncheon

3:00 pm - 4:00 pm

Concurrent Breakout Sessions

4:15 pm - 5:15 pm 5:30 pm - 6:30 pm

Concurrent Breakout Sessions Future Leaders Reception (by invitation only)

6:30 pm - 9:30 pm

Summit Celebration

7:00 pm - 7:30 pm 8th Annual Live Auction presented by AED Foundation & Richie Bros.

9:30 pm - 11:00 pm

After Hours Networking

Thursday, February 12, 2015 6:00 am - 7:00 am

First Source Bank Fun Run

8:30 am - 9:00 am

Continental Breakfast

8:00 am - 3:00 pm

Registration

9:00 am - 10:00 am

General Session Clyde Fessler, Retired VP Business Development Harley-Davidson Motor Company Rebuilding the Brand: How Harley-Davidson Became King of the Road

10:00 am - 2:00 pm

CONDEX

12:00 am - 2:00 pm

CONDEX Wine & Beer Tasting

12:00 pm - 1:00 pm

CONDEX Luncheon

1:30 pm - 2:30 pm

Concurrent Breakout Sessions

2:45 pm - 3:45 pm

Concurrent Breakout Sessions

4:00 pm - 5:00 pm

General Session Mark Fernandes, Chief Leadership Officer, Luck Companies Values Based Leadership: Igniting Human Potential in Organizations

8:30 pm - 10:30 pm

After Hours Networking

Friday, February 13, 2015 8:00 am - 10:00 am

Chairman's Inaugural Breakfast & Closing General Session Keynote Presentation - Tom Ridge, Former Governor of Pennsylvania America the Product and Its Brand: U.S. Global Engagement in the 21st Century

10 | www.cedmag.com | Construction Equipment Distribution | December 2014

AED Calling! We’re knocking on members’ doors, hearing your stories, and collaborating to help make AED GHDOHUV PRUH SURÀWDEOH

AED Regional Manager Ben Yates made a stop in the Northeast last month and visited with CN Wood President Paula Benard, Woburn, Mass. They discussed benefits of starting a New England area dealer group – several other local dealers have expressed interest in participating. The Regional Managers Team will be moving out in force in 2015 to pay visits to AED members all over the U.S. and Canada, and they’ll also help organize congressional visits to local groups and dealerships. The new and improved AED is all about listening to you, hearing your challenges, and rising to help solve dealer business concerns with industryspecific resources and advocacy. Want to talk to your AED regional manager? Western U.S. and Western Canada: Contact Phil Riggs, priggs@aednet.org 630-468-5128 Midwest U.S. and Eastern Canada: Contact Mike Dexter, mdexter@ aednet.org 630-468-5124, Eastern U.S: Contact Ben Yates, byates@aednet.org 630-468-5130 South Central U.S: Contact Kristin Crooks, kcrooks@aednet.org 630-574-0650, ext. 339


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For information on any upcoming AED events, visit www.aednet.org or call 800-388-0650. Dec. 9

Dec. 10

Feb. 3-6, 2015

Webinar: Service Management – /DERU (IÀFLHQF\

Webinar: Service Management-Shop Floor Scheduling

World of Concrete

11 a.m.-Noon CDT Presented by Ron Slee

11 a.m.-Noon CDT Presented by Ron Slee

Las Vegas, Nev. Feb. 10-13, 2015 2015 AED Summit & CONDEX

Dec. 9

Dec. 10

Webinar: Service Management – Flat Rating/Standard Jobs

Webinar: Service Management – Standard of Performance

2-3 p.m. CDT Presented by Ron Slee

2-3 p.m. CDT Presented by Ron Slee

Orlando World Center Marriott Orlando, Fla. April 20-25, 2015 Intermat

Paris-Nord Villepinte, France

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Groundwork OFFICERS

Chairman A. ROY KERN Equipment Corporation of America Coraopolis, Pa. Vice Chairman DENNIS VANDER MOLEN Vermeer MidSouth, Inc. Jackson, Miss.

President BOB HENDERSON The AED Foundation Oak Brook, Ill. Treasurer JOHN D. CRUM Wells Fargo Equipment Finance Pittsburgh, Pa. Immediate Past Chairman CHRISTOPHER PERA Highway Equipment Company Zelienople, PA AED Board Representative WES STOWERS Stowers Machinery Corp. Knoxville, Tenn. Executive Director STEVE JOHNSON The AED Foundation Oak Brook Ill.

DIRECTORS

GARY BRIDWELL Ditch Witch of Oklahoma Edmond, Okla. JOHN COSGROVE Central Power Systems & Services, Inc. Liberty, Mo. MIKE HAYES Komatsu America Corp. Rolling Meadows, Ill. TIMOTHY KRAMER Kramer Ltd. Regina, Sask. DR. WAYNE LONGBRAKE Former Dean, Penn. College of Technology Williamsport, Pa SONJA METZLER Ohio CAT Broadview Heights, Ohio DAVID REILLY John Deere Construction Equipment Moline, Ill. KENNETH SILVERMAN Volvo Construction Equipment Shippensburg, Pa. MARK TEEL Caterpillar, Inc. Peoria, Ill. M. KEITH TIPPETT Kirby-Smith Machinery, Inc. Oklahoma City, Okla.

AED Foundation Celebrates 5H $FFUHGLWLQJ RI 7ZR 7HUULÀF Technical Schools The support of dealers and manufacturers proves critical to our community-based program success. Congratulations to State University of New York (SUNY) Cobleskill and Pennsylvania College of Technology, both recently re-accredited by The AED Foundation after meeting all requirements set by AED’s national “Standards of Construction Equipment Technology.” “The department is extremely pleased with and grateful for the level of support from our industry partners,” said SUNY Cobleskill Department Chair Doug Hammond. “We recognize that it Doug Hammond would not be possible to offer the educational product we are able to provide without the continued support from AED member dealers associated with the program.” Dean Colin Williamson of Heavy Construction Equipment Technology at Pennsylvania College of Technology also commented on the importance of AED accreditation to their success. Colin Williamson “The validation of the heavy equipment industry via AED, coupled with recommendations for improvement, is

a primary reason we can keep our programs relevant to the needs of employers,” he said. “AED has one of the most detailed self-evaluation and on-site visit processes of any program accreditor we have seen, which causes us to take a serious look at every aspect of our courses. This makes our programs that much stronger.” AED technical standards were first published in 1997 and now are in their eighth revision. The standards define what students should know upon graduating from an AED-Accredited two-year AS or AAS college degree program in diesel/ equipment technology. A true product of the equipment industry, the standards are regularly updated by an industry task force comprised of representatives from dealers, manufacturers and technical colleges. (See story on page 56). AED accreditation would be very difficult to obtain if not for the support of the equipment industry. The AED Foundation congratulates all involved on the achievement of AED’s rigorous technical standards for accreditation. Currently, AED accredits 36 diesel equipment technology programs at 26 colleges nationwide. To find out more about these schools, visit www.aedfoundation.org

Rip-Roarin’ Start – 2015 AED Foundation Annual Campaign Highjumps to One-Third of Goal In October the AED Foundation kicked off its yearly campaign, which supports the development of equipment-industry services and programs. We are happy to announce that one month into the campaign, we have already raised over $100,000! However we still have a long way to go to reach the $300,000 goal. We need your help. Please consider supporting The Foundation’s 2015 Annual Fund Campaign for workforce development. Your tax-deductible donation will enable us to continue serving your company’s professional development needs and solving the whole equipment distribution industry’s workforce crisis, one state and one community at a time. To invest in your future, please e-mail rlintow@ aednet.org or call 630-468-5113 to get a copy of the pledge form. Every contribution counts!

12 | www.cedmag.com | Construction Equipment Distribution | December 2014


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Industry Beat

Dodge Expects Construction Industry to See More Balanced Growth in 2015

More sectors come into play to support a stronger expansion. The 2015 Dodge Construction Outlook predicts that total U.S. construction starts for 2015 will rise 9 percent to $612 billion, a larger gain than the 5 percent increase to $564 billion estimated for 2014. “The construction expansion should become more broad-based in 2015, with support coming from more sectors than was often the case in recent years,” said Robert Murray, chief economist and vice president for Dodge Data & Analytics. “The economic environment going forward carries several positives that will help to further lift total construction starts. Financing for construction projects is becoming more available, reflecting some easing of bank lending standards, a greater focus on real estate development by the investment community, and more construction bond measures getting passed. While federal funding for construction programs is still constrained, states are now picking up some of the slack. Interest rates for the near term should stay low, and market fundamentals (occupancies and rents) for commercial building and multifamily housing continue to strengthen.” Commercial building will increase 15 percent, slightly faster than the 14 percent gain estimated for 2014. Office construction has assumed a leading role in the commercial building upturn, aided by expanding private development as well as healthy construction activity related to technology and finance firms. Hotel and warehouse construction should also strengthen, although the pickup for stores is more tenuous. Institutional building will advance 9

percent, continuing the moderate upward trend that’s been established during 2014. The educational building category is now seeing an increasing amount of K-12 school construction, aided by the financing made available by the passage of recent construction bond measures. Healthcare facilities are expected to show some improvement relative to diminished activity in 2014. Single-family housing will rise 15 percent in dollars, corresponding to an 11 percent increase in units to 700,000 (Dodge basis). It’s expected that access to home mortgage loans will be expanded, lifting housing demand. However, the millennial generation is only gradually making the shift towards homeownership, limiting the potential number of new homebuyers in the near term. Multifamily housing will increase 9 percent in dollars and 7 percent in units to 405,000 (Dodge basis). Occupancies and rent growth continue to be supportive, although the rate of increase for construction is now decelerating as the multifamily market matures. Public works construction will improve 5 percent, a partial rebound following the 9 percent decline estimated for 2014. Highway and bridge construction should stabilize, and modest gains are anticipated for environmental public works. Federal spending restraint will be offset by a greater financing role played by the states, involving higher user fees and the increased use of public-private partnerships. Electric utilities will slide 9 percent, continuing the downward trend that’s followed the exceptional volume of construction starts that was reported during 2011-2012. With more projects now coming on line, capacity utilization rates will stay low, limiting the need for new construction. Manufacturing plant construction will settle back 16 percent, following the huge increases reported during both 2013 (up 42 percent) and 2014 (up 57 percent) that reflected the start of massive chemical and energy-related projects. The complete report sells for $495.00.

Holt Cat Employees Bike to Raise $42,000 to Fight Multiple Sclerosis For more than a decade, employees from HOLT CAT, the Caterpillar dealer for South, Central, North and East Texas, have supported the fight against Multiple Sclerosis by participating in an annual 150-mile bike ride. On Oct. 11 and 12, HOLT continued that tradition with 18 riders participating in Bike MS: Valero Ride to the River 2014, raising approximately $42,000. The riders joined hundreds of other supporters on the 150-mile course, and were among the Top 10 fundraising teams, with participants representing HOLT’s San Antonio, Pflugerville, Irving, Fort Worth and Corpus Christi locations. According to the company, the HOLT riders have had a number of friends and associates who are directly or indirectly affected by MS. HOLT CAT also sponsored the first rest and refueling stop, with employees, friends and family members distributing refreshments to volunteers as they continued on their journey. (continued on page 16) 14 | www.cedmag.com | Construction Equipment Distribution | December 2014


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Industry Beat

Heavy Equipment Theft Rises 5 Percent in 2013 The National Insurance Crime Bureau’s (NICB) most recent report on heavy equipment thefts in 2013 shows an increase of 5 percent from 2012. This report, co-produced with the National Equipment Register (NER), examines heavy equipment theft data submitted by law enforcement to the National Crime Information Center (NCIC) and profiles that data according to theft state, theft city, theft month, equipment manufacturer, equipment style (type) and year of manufacture. In 2013, a total of 11,486 heavy equipment thefts were reported to law enforcement – compared to 10,925 reported in 2012. Texas ranked No. 1 in 2013 with 1,494 reported thefts. In second place was North Carolina with 913 thefts followed by Florida in third with 892 thefts. In fourth place was California with 734 thefts and South Carolina is fifth with 691. The top five cities with the most thefts were Houston, Texas (199); Oklahoma City, Okla. (111); San Antonio, Texas (82); Miami, Fla. (77); and West Palm Beach, Fla. (72). The three most stolen heavy equipment items in 2013 were mowers (riding or garden tractor), loaders (skid steer, wheeled) and tractors (wheeled or tracked). Heavy equipment manufactured by John Deere was the No.1 theft target in 2013 followed in order by Kubota Tractor Corp., Bobcat, Caterpillar and Toro. As for recoveries, only 21 percent of heavy equipment stolen in 2013 was found, making it a costly crime for insurance companies, equipment owners and rental agencies.

NICB urges equipment owners to incorporate theft prevention strategies into their business practices. The full report can be found at www.nicb.org. Theft Prevention Tips from NICB 1) Install hidden fuel shut-off systems. 2) Remove fuses and circuit breakers when equipment is unattended. 3) Render equipment immobile or difficult to move after hours or on weekends by clustering it in a “wagon circle.” Place more easily transported items, such as generators and compressors, in the middle of the circle surrounded by larger pieces of equipment. 4) Maintain a photo archive and a specific list of the PIN and component part serial numbers of each piece of heavy equipment in a central location. 5) Stamp or engrave equipment parts with identifying marks, numbers or corporate logos. 6) Use hydro locks to fix articulated equipment in a curved position, preventing it from traveling in a straight line. 7) Use sleeve locks to fix backhoe pads in an extended position, keeping wheels off the ground.

IN THE NEWS IronPlanet, an online marketplace for buying and selling used heavy equipment, has acquired Kruse Energy and Equipment Auctioneers LLC, an oilfield equipment auction business, extending its presence in the oilfield industry. According to the company, Kruse is a full service auction company that has conducted more than 90 percent of the energy auctions in the U.S. over the past 25 years. Co-founders David Long and Jim Ritchie will continue to operate the business, and both Long and Ritchie will join the IronPlanet executive committee. Kruse is based in Odessa, Texas, and Oklahoma City, Okla., and will operate as a whollyowned subsidiary of IronPlanet, maintaining its brand and employees.

Las Vegas-based Caterpillar dealer, Cashman Equipment, is now a Seeing Machines Limited dealer, responsible for delivery and support of operator fatigue monitoring technology. The Seeing Machines System continuously measures operator eye and eyelid behavior to determine the onset of fatigue and micro sleeps, and delivers real-time detection and alerts. The operator is not required to wear any special equipment. The system has resulted in an average 80 percent reduction in fatigue and distraction events. Jamie Foley, chief executive officer of Foley, Inc., announced that Ryan Foley has been promoted to president of Foley, Inc. In Ryan Foley’s 15-year tenure with the company, he has

served in a variety of capacities, most recently as vice president of Foley Rents. “Over the past five years, Ryan and his team have propelled Foley Rents to topquartile performance Ryan Foley among our CAT dealer peers. This promotion is in recognition of Ryan’s strengths and abilities, as well as my desire to have Ryan fully engaged as my partner in running our company,” said Jamie Foley. Liebherr Construction Equipment Co. has expanded its distribution footprint, announcing a new partnership with the Bejac Corporation. Bejac will have sales and service responsibility (continued on page 18)

16 | www.cedmag.com | Construction Equipment Distribution | December 2014


Industry Beat

Yancey Bros.’ 100-Year Success Story Founded in 1914 by brothers Goodloe and Earle Yancey, Yancey Bros. Co., began as the Yancey Hardware Company, selling hardware, picks, shovels and prison uniforms (stripes) to government agencies - especially county prisons - for road construction. From their Peachtree Street location in downtown Atlanta, Ga., the brothers became the first U.S. dealer for the Adams Mule Grader, a predecessor of today’s motor grader which was pulled by eight mules. Early successes brought expansion into a new location on Marietta Street and branch offices in Birmingham, Ala., Ft. Pierce, Fla., and Greenville, S.C. In 1918, upon hearing that the Holt Manufacturing Company’s Model 45 tractor could do the work of, “40 mules . . . or 40 horses and countless humans,” Goodloe and Earle traveled to Peoria, Ill. to ask Holt if they could represent the product in the Southeastern U.S. Holt preferred direct sales to end users and questioned the need for local distribution. Unable to secure a demonstration tractor, Goodloe and Earle left Peoria with only a photograph of the Holt Model 45 and a price quote of $4,750 per machine. Yancey’s first Model 45 delivery came later that year and within 12 months Yancey had sold all of the Model 45s in Holt’s inventory, based on the photograph. The following year, Goodloe and Earle were awarded Holt’s first jobber’s contract. In 1925 Holt merged with Best Tractor Co. to become the Caterpillar Tractor Company. Records show an original agreement date of Dec. 19, 1918, making Yancey Bros., the nation’s oldest Caterpillar dealer. In 1927 the two brothers split the territory with Goodloe operating the company for the 83 counties in the northern half of the state as Yancey Bros., Inc., and Earle operating out of Albany as the Yancey Tractor Company for the southern half of Georgia. Over the years, second and third generation Yanceys continued to grow the dealerships. The company is currently led by the fourth generation of family leadership. In 1994, Jim and Donna Yancey Stephenson, son-in-law and daughter to Yancey’s former president, Don Yancey, agreed to become the company’s primary stockholders. Today, Jim Stephenson serves as president and chairman of the board, while Goodloe Yancy III continues his 60 years of service as Chairman of the Board Emeritus. At a celebration back in May, Caterpillar CEO Doug Oberhelman commented on Yancey’s contribution to the

Goodloe and Earle Yancey convinced Holt Manufacturing that it should allow them to represent their Model 45 tractor. They sold all of the company’s units off of a photograph in their first year. “Holt boasted the Model 45 could do the work of, “40 mules . . . or 40 horses and countless humans.” Holt Manufacturing later merged with Caterpillar Tractor Company.

start of the company’s successful model. “To imagine a company for 100 years, under the same ownership, with the same name, as successful as it’s been for 100 years, is nothing short of a miracle,” said Oberhelman. “It says an awful lot about the family and about its leadership. I respect and appreciate the relationship between Yancey and Caterpillar so deeply. It’s really the biggest advantage Caterpillar has. We call on customers frequently, but we really don’t think the Caterpillar brand, the Cat brand, would be what it is without you.” As Jim In addition to celebrating their 100th anniStephenson versary in 2014, Yancey Bros. also celebrated leads Yancey 50 years of membership with AED. Jim StephenBros. into son, president and CEO of Atlanta-based the future Yancey Bros. recently accepted the award he says he from AED President and CEO Brian McGuire. will continue to focus on people. “Earning the trust and confidence of the people on your team and your customers has been a key to our success. It’s all about the people. That will be true 100 years from today, too.”

JCB Golf Tournament Raises $85,000 for The Lady Bamford Center JCB hosted its eighth annual Lady Bamford Center Golf Tournament on Oct. 18, raising approximately $85,000. Those funds will help the center in its efforts to provide early childhood education and social skills development to needy Savannah-area children from six weeks to five years of age. According

to Thom Peebles, vice president of marketing of JCB North America, this year’s event registered more teams than ever and included a successful silent auction. Lady Bamford Center offers priority admission to children from homeless and low-income families, as well as children with physical, mental or emotional challenges. December 2014 | Construction Equipment Distribution | www.cedmag.com | 17


Industry Beat

for the full line of Liebherr earthmoving and material handling equipment in the states of California, Arizona and Reno, Nev. Headquartered in Placentia, Calif., Bejac has six additional dealership locations in Sacramento, Fresno,

Redding, San Francisco/Oakland, San Diego and Phoenix, Ariz. Bejac focuses on providing complete solutions to the various markets they serve, including niche markets such as Demolition, Forestry, Scrap and Recycling.

MEMBERSHIP MILESTONES

Kevin Robbins (right), executive vice president, Ring Power Corporation, accepts the 25-year member award from Ben Yates, East region manager for AED, at Ring Power’s St. Augustine, Fla., location.

Carol Fellars, president of Reuter Equipment, (center) and Bernadine Gilmore, controller, accept a 50-year membership award from AED At-Large Director Ron Barlet, who is president of Bejac Corp.

Hoffman Equipment recently announced that Jeb Bartow has joined the company as a sales representative at the Piscataway, N.J., location. Bartow is selling the full line of equipment in Sussex, Passaic and Bergen counties. He specializes in JCB and Jeb Bartow Doosan machines. Volvo Group has streamlined its executive team from 16 to 10 as a result of the merger of three sales and market regions in the truck operation into a single global sales organization. Group Trucks Sales will be organized in seven regions with underlying market organizations. Three regional sales offices will be consolidated into a single global head office for sales located in Gothenburg. In conjunction with the merger of

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Industry Beat

IN MEMORY OF: of Torbjörn Holmström. The the sales organization, the head of Volvo CE and the head existing purchasing department of Volvo Financial Services will for the truck operation will also no longer be members of Group be moved from Group Trucks management. The head of Volvo Technology to Group Trucks CE will continue to report to the Operations. Volvo’s entire truck head of Business Areas and the operation will be organized head of Volvo Financial Services in three global organizations will continue to report to the Group Trucks Sales, with global Group’s CFO. Corporate Process responsibility for all marketing and IT will be relocated orgaand sales of trucks, as well as associated products and services, nizationally under the Group’s Chief Financial Officer (CFO). under the management of Joachim Rosenberg; Group Trucks Operations, with global LiuGong Dressta Machinery Co., Ltd., was awarded 2014 responsibility for all production, Top Chinese Investor in Poland. logistics and purchasing related LiuGong spent more than $50 to truck manufacture, under the million in acquiring HSW on management of Mikael Bratt; and Group Trucks Technology, Jan. 31. 2012, and it acquired Poland ZZN company in October with global responsibility for all 2013. It has provided 1,800 technology and product develjobs in Poland and is the largest opment related to truck manuChinese enterprise in Poland. facture, under the management

Industry Educator Alfred V. Morgan Founder and president of Morgan Business Associates, died on Oct. 9, 2014. His firm had provided consulting and training for many years in the light, medium, and heavy equipment industry. Born in Liberal, Kan., Morgan graduated from the University of Kansas, where he obtained a degree in marketing and psychology. While serving in the military he was assigned to a Nike Hercules Missile Site near Fairbanks, Ala. Upon his return to Kansas, he married Peggy Riley and settled in Downey, Calif. Morgan received an MBA from the University of Southern California. He held a variety of positions in manufacturing and banking before joining a consulting and training organization. He later served as president of Morgan Business Associates (MBA) for over 40 years and was involved in AED as well as other professional and trade associations. Alfred is survived by his beloved wife Peggy A. Morgan; daughter Trudie M. Safreno (Ty); sons Vance R. Morgan, Allen F. Morgan, and Bradley A. Morgan (Michelle).

Please visit us in CONDEX Booth 200 December 2014 | Construction Equipment Distribution | www.cedmag.com | 19


Play It Safe

Are You Compliant With OSHA’s HazCom Changes? Don’t make the mistake of thinking it doesn’t apply to dealers. BY ERIC STILES

By now, you have no doubt learned of OSHA’s revision to their Hazard Communication Standard (commonly referred to as HCS or HazCom), which was published in the Federal Register on March 26, 2012. This standard was updated to incorporate elements of the Globally Harmonized System of Classification and Labeling of Hazardous Chemicals, or GHS for short. GHS was originally developed by the United Nations and is an internationally recognized criteria for the classification of chemical hazards and a standardized approach to labeling and Safety Data Sheets. This method for classifying chemical hazards and conveying information will be more effective and provide further improvements to protect employees in the workplace. The updated requirements for Safety Data Sheets will also enable employers, workers, health professionals, and emergency responders to access the product information more efficiently and effectively, thus increasing their utilization. You may think this regulation doesn’t apply directly to your dealership, but you would be wrong. It impacts all businesses that use chemicals in the workplace, and will include paintrelated material, cleaning solvents and products, and even aerosol cans. %HQHÀWV RI 7KLV 5HYLVLRQ The new standard covers over 43

million workers who produce or handle hazardous chemicals in more than five million workplaces across the country. According to OSHA, the improvements are expected to prevent over 500 workplace injuries and illnesses and 43 fatalities annually and will also: Enhance worker comprehension of hazards, especially for low and limitedliteracy workers, reduce confusion in the workplace, facilitate safety training, and result in safer handling and use of chemicals Provide workers with efficient access to information on the Safety Data Sheets Result in cost savings to American businesses of more than $475 million in productivity improvements, fewer Safety Data Sheet and label updates and simpler new hazard communication training Reduce trade barriers by harmonizing with systems around the world 0DMRU &KDQJHV WR WKH 6WDQGDUG The three major areas of change are in Hazard Classification, Labels, and Safety Data Sheets. Hazard classification: The definitions of hazard have been changed to provide specific criteria for classification of health and physical hazards, as well as classification of mixtures. These specific criteria will help to ensure that evaluations of hazardous effects are consistent across manufacturers, and

20 | www.cedmag.com | Construction Equipment Distribution | December 2014

that labels and safety data sheets are more accurate as a result. Labels: Chemical manufacturers and importers will be required to provide a label that includes a harmonized signal word, pictogram, and hazard statement for each hazard class and category. Precautionary statements must also be provided. Safety Data Sheets: Will now have uniform 16-section format that will better organize chemical data and potential health hazards from improper use. :KDW <RX 1HHG 7R 'R The revised Hazard Communication Standard (HCS) requires that workers be trained on the new GHS label and Safety Data Sheets changes by Dec. 1, 2013. If you haven’t completed this documented training yet, it’s important to do so immediately in order to stay in compliance with OSHA. Dealerships will need to continue updating their Safety Data Sheet inventory when new ones become available. They should also provide training on the new label elements and update their programs if new hazards are identified. Some other compliance timelines include: Obtain new label elements and Safety Data Sheets on all hazardous chemicals used in your facility by June 1, 2015. By June 1, 2015: Your Safety Data Sheet Book must contain the new


Play It Safe

safety data sheets, which are in compliance with the GHS standard. (Tip: Reach out to your vendors providing chemicals to you or contact the chemical manufacture to obtain these new safety data sheets.) By June 1, 2016: Update alternative workplace labeling and hazard communication program as necessary, and provide additional employee training for newly identified physical or health hazards. The most important takeaway from this legislation update is worker protection, which is at the core of the GHS strategy. Performing updated training will be an opportunity for your dealership to reaffirm how important employee safety is to your business. Take the time to cover the new requirements but also express your desire to create the safest work environment possible along with outlining your expectations that each employee follow your safety procedures and report any hazards to management. For additional information please see the OSHA’s hazard communication safety and health topics web page at: http://www.osha.gov/dsg/hazcom/ index.html Property and casualty coverages and safety services are underwritten, issued and/or administered by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. This document is made available by Sentry Insurance a Mutual Company and its subsidiaries and affiliates (collectively “SIAMCO”) with the understanding that SIAMCO is not engaged in the practice of law, nor is it rendering legal advice. The information contained in this document is of a general nature and is not intended to address the circumstances of any particular individual or entity. Legal obligations may vary by state and locality. No one should act on the information contained in this document without legal advice from competent and licensed local professionals. THE INFORMATION CONTAINED IN THIS DOCUMENT IS DISTRIBUTED BY SIAMCO “AS-IS”, WITHOUT ANY WARRANTIES. SIAMCO WILL HAVE NO LIABILITY TO ANY PERSON OR ENTITY WITH RESPECT TO ANY LOSSES OR DAMAGES CAUSED, OR ALLEGED TO HAVE BEEN CAUSED, DIRECTLY OR INDIRECTLY BY THIS DOCUMENT, REGARDLESS OF WHETHER SUCH CLAIM IS BASED ON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND FOR PROPERTY DAMAGE AND DEATH) OR OTHER GROUNDS.

ERIC STILES is Sentry’s lead account executive responsible for maintaining the AED/Sentry relationship. As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs.

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Congressional Makeover Positions Distributors for Success

Election Analysis

AED PAC shattered election records – here’s what members’ grassroots work will mean for the equipment distribution industry in 2015. BY CHRISTIAN A. KLEIN

The 2013-2014 election cycle was the most successful in the history of AED’s government affairs program. Considerable credit goes to the 68 equipment industry leaders who stepped up to the plate and supported AED’s Political Action Committee (AED PAC) over the past two years.* The more than $150,000 they contributed to AED PAC in 2013 and 2014 allowed us to support a record 73 House and Senate candidates around the country. Much of that money was delivered in 2014 by AED members personally at 50 “ImPACt” meetings with candidates. Those meetings are critical to building AED’s grassroots organization and strengthening the relationship between candidates, equipment dealers, and AED. Of course, a banner year for AED’s political program does not guarantee success on the lobbying front, but it has dramatically raised the visibility of the equipment industry in the eyes of candidates and congressional leaders. Knowing that our members are an

important economic and political force “back home” will at a minimum ensure that AED’s positions get a fair hearing on Capitol Hill. Whether we win or lose on the issues will depend on how aggressively and effectively we make our case and how engaged dealers around the country are in our grassroots efforts. What’s Next? At the time of this writing, still early November, the dust from the election was still settling, and not all the races had been called. That being said, we can already draw a few conclusions from the midterm election results. More moderate Rs will make Boehner’s job easier. Next year, of the 435 members of the House of Representatives, approximately 245 will be Republicans. That’s the biggest House majority since the Truman administration. Having more GOP votes will make House Speaker John Boehner’s (R-Ohio) job easier because he will not have to rely on every

Republican member to gather the 218 votes needed to pass legislation. Also significant is the fact that at least 18 of the new members of Congress are Main Street Republicans, who hold less extreme views about the role of government than their tea party colleagues at the other wing of the GOP conference. McConnell faces tough balancing act. Republicans are also now in charge on the other side of Capitol Hill. The GOP’s new Senate majority means control of the agenda and committee chairmanships, but incoming Senate Majority Leader Mitch McConnell (R-Ky.) still has his work cut out for him. Although on paper he has 54 Republican votes, several are tea party adherents like Sen. Ted Cruz (R-Texas), who have demonstrated a propensity to buck their own party’s leaders. That means McConnell will likely have to reach across the aisle and work with moderate Democrats on some legislation. Since he has promised a less authoritarian approach than current (continued on page 24)

22 | www.cedmag.com | Construction Equipment Distribution | December 2014


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Election Analysis

(“Congressional Makeover Positions Distributors for Success” continued from page 22)

Majority Leader Harry Reid (D-Nev.), McConnell may be a more successful and effective leader. Say goodbye to moderate Democrats. The big losers in this year’s elections were moderate Democrats. Ironically, this year’s election outcomes will strengthen the Democratic Party’s liberal wing on Capitol Hill. Several House and Senate Democrats with good voting records on business issues were defeated, while others read the electorate’s mood early and decided to retire. For evidence of the waning strength of centrist Democrats, look no further than the House Blue Dog Democrat coalition. A decade ago it was an important political force that could make or break legislation. But eight of the 113th Congress’ 19 Blue Dogs won’t be returning next year, leaving the once-influential group on life support. Handed the car keys, GOP must now prove it can drive. The last Congress was the least productive in U.S. history and punted a number of issues to next year. With presidential elections on the horizon, the GOP has a short window in which to act in a number of key policy areas, including fixing the federal highway program and improving the tax code. Last year’s government shutdown undermined confidence in the GOP’s ability to govern. Now it is up to the party’s leaders on Capitol Hill to show they can. Changes on House And Senate Transpo Committees Sen. Jim Inhofe (R-Okla.) will be the next Senate Environment & Public Works (EPW) chairman. Inhofe formerly held the EPW gavel and has strong conservative credentials, a good working relationship with Sen. Barbara Boxer (D-Calif., and the committee’s top Democrat) and experience shepherding a highway bill to enactment. That should allow him to hit the ground running both to build support for a Highway Trust Fund revenue fix and to pass new multiyear road, bridge, and transit legislation. Although Rep. Bill Shuster (R-Pa.) will keep the House Transportation & Infrastructure (T&I) Committee gavel, there will be important changes on the Democratic side of the committee. Rep. Nick Joe Rahall (D-W.Va.), currently T&I’s ranking Democrat, lost his re-election bid in a stunning upset. Rahall has served on T&I for close to 40 years and has good working relationships on both sides of the aisle. He has an independent streak and has been willing to fight back against the Obama administration’s regulatory excess. 24 | www.cedmag.com | Construction Equipment Distribution | December 2014

ImPACTful Investments How did AED PAC-supported candidates do on Election Day 2014? Extremely well. Of the 73 candidates who received AED PAC contributions this cycle, only 11 lost (either in contested primaries or on Election Day). Of the eight candidates who lost on Nov. 4, six were pro-business Democrats (most of whom had strong ties to AED members in their home states), one was a Republican House incumbent, and the other was a strong GOP candidate in a Democratcontrolled open seat. Our PAC money this cycle was split between 64 House and nine Senate candidates from 29 states. In addition to supporting individual candidates, AED also contributed this cycle to the Republican Main Street Partnership and the New Democratic Coalition, which respectively work to elect centrist Republicans and Democrats to Congress. While most of the AED PAC contributions were in the $1,000 to $2,500 range, some candidates received more than others. The top AED PAC support recipient was Rep. Cory Garder (R), who successfully challenged and beat an incumbent Democrat for one of Colorado’s U.S. Senate seats Rep. Cory Garder in one of the most watched races of the cycle. (R-Col.o) was the top recipient of AED PAC A former congressional staffer and two-term support this cycle. congressman, Rep. Gardner is perceived as one of the brightest rising stars in the Republican Party. He is a champion for responsible energy development and has close ties to AED members in his home state. He also grew up working at his family’s equipment dealership. Between his general election and primary, Gardner received $7,000 from AED PAC (the maximum allowable to a candidate per election cycle is $10,000 - $5,000 for the general and $5,000 for the primary). AED’s longstanding philosophy is that whenever possible, PAC contributions should be presented by AED members directly to candidates “back home” in their state or district. These ImPACt meetings help strengthen the ties between elected officials and equipment industry leaders. Put another way, the ImPACt program is the glue that cements relationships between the dealers and their lawmakers. AED PAC 2013-2014 Election Cycle Results Total number of candidates receiving AED PAC support Total contributed by AED PAC to candidates and partisan committees Number of Republican vs. Democrat candidates receiving AED PAC support Dollars contributed to Republican vs. Democratic candidates and committees Number of House vs. Senate candidates supported by AED PAC

73 $148,000 59 Republicans 14 Democrats $123,000 to Republicans $25,000 to Democrats 64 House/nine Senate

Dollars contributed to House vs. Senate candidates

$112,000 House $21,000 Senate

Number of winning vs. losing candidates supported

59 won/11 lost

Number of candidates who received support at ImPACt 2014 PAC check delivery meetings with AED members

49

Number of AED members and staff who supported AED PAC this cycle

68

Total contributed by AED members and staff to AED PAC this cycle Dollars rounded to the nearest $1,000

$151,000


Election Analysis

Rahall’s most likely successor is Rep. Peter DeFazio (D-Ore.), now the longest serving Democrat on T&I and the current ranking member of the House Natural Resources Committee. Unlike Rahall, DeFazio is more of a main stream Democrat whose views on regulatory policy are generally in line with the Obama administration. However, DeFazio is a fierce infrastructure supporter and has a strong independent streak as well. For example, he bucked his party’s leadership and voted against the 2009 stimulus bill because he thought it didn’t spend enough on roads, bridges and transit.

PAC Picks: How AED Chooses Candidates AED PAC is the lynchpin of the association’s political program. Federal law prohibits AED from using its general revenues (e.g., your dues payments) to support congressional candidates, but the law does permit associations like AED to set up a PAC to collect personal contributions from individual industry executives and association employees. Those PAC dollars are then used to help elect House and Senate candidates who share AED’s policy priorities. Simply put, the AED PAC allows the equipment distribution industry to speak with a single voice in the political process. AED uses a number of factors to determine whether to support any given candidate, including: Whether the candidate is committed to AED’s federal policy priorities, including strong federal infrastructure programs, tax policies that encourage capital investment and entrepreneurship, a strong energy sector, and commonsense regulatory policy Membership on House or Senate committees with jurisdiction over AED’s policy priorities Strong relationships with AED members in the candidate’s home state

Tax Committees Boast Strong Leadership New leadership on the tax committees on both sides of Capitol Hill means the tax reform debate is on hold in the short-term. But both Rep. Paul Ryan (R-Wis.) and Orrin Hatch (R-Utah), respectively the presumptive incoming chairmen of the House Ways & Means and Senate Finance Committees, have considerable depth on tax and budget issues, which means the process could get underway quickly as soon as new committee staff is in place. In the days immediately following the election (when this article went to press) it was still unclear whether Congress would deal with expired tax provisions – including Sec. 179 and depreciation bonus – during the lame duck session immediately after the election or take up the so-called “extenders package” in early 2015.

Regulatory Overreach Goes Under the Microscope The Obama administration’s aggressive regulatory agenda was one of the major factors that motivated Republican voter turnout. We are certain to see more aggressive executive branch oversight by House and Senate committees and legislative efforts to stop the implementation of some controversial new regulations, particularly through the appropriations process. Among the regulatory proposals likely to get the most scrutiny are those associated with the Obama administration’s war on coal and the expansion of the Environmental Protection Agency’s water jurisdiction.

Fast Action on Keystone? One of the most immediate policy consequences of the election results may be on an energy issue. The Obama administration has been dragging its feet for years on the approval of the Keystone XL pipeline. We are assuming that when the dust settles, the GOP will control 54 Senate seats. Add to that number the six returning Democrats who say they support Keystone and you have what looks like a filibuster-proof majority in favor of getting the project underway. It is not unlikely that one of the first bills the

Risks and Opportunities for Dealers in the New Environment The GOP’s Senate takeover is generally good news for many of the issues AED members care about, particularly tax, regulatory, and energy policy. However, Republicans’ track record on transportation policy is cause for concern. For example, House Budget Committee Chairman Ryan has proposed cutting highway funding as part of his budget plans. Additionally, 54 House Republicans are co-sponsors of a bill to eliminate the federal highway program and 28 Senate Republicans voted in

new Congress sends the president will deal with Keystone.

favor of similar legislation this summer. Perhaps most significant, the turnover on Capitol Hill means that there are many new members of Congress who know little or nothing about how equipment distributors are affected by highway, bridge, and water investment, Sec. 179 and depreciation bonus, like kind exchange, last-in, first-out accounting, technician hours of service rules, energy development, and a host of other issues that impact equipment markets and costs of doing business. It’s up to us – AED and its members – to begin the education process for new lawmakers quickly and aggressively. Thanks to all the distributors around the country who made this the most successful election cycle ever for AED. Now it is time to roll up our sleeves and work together to make 2015 one of the most successful from a policy standpoint. * AED PAC accepts contributions only from eligible AED employees and from owners and executives of AED dealer member companies that have given prior solicitation approval in accordance with the requirements of the Federal Election Campaign Act.

CHRISTIAN KLEIN is AED’s vice president of Government Affairs in Wahsington, D.C. He can be reached at caklein@ aednet.org.

December 2014 | Construction Equipment Distribution | www.cedmag.com | 25


AED Grassroots

Makin’ It Personal Members took charge of election outcomes with active participation in AED ImPACt events to support pro-equipmentindustry candidates.

Rep. Steve Womack (R-Ark., second from right) accepts AED PAC support from AED Foundation Vice Chairman Denny Vander Molen and the Vermeer MidSouth team.

Throughout the 2014 midterm election cycle, AED government actions (or inaction) affect your company. ImPACt meetings are critical to building AED’s grassroots members stepped up to the plate to ensure that the voice organization and strengthening the relationship between of the industry was heard. candidates, equipment dealers, and AED. From California to New York and everywhere in Thank you to all those that participated in AED ImPACt between, candidates filed into AED member facilities and events and helped make the program such a success in local group meetings to interact with equipment distribu2013-2014! AED’s Washington Office looks forward to an tors, learn about the issues that impact your primary even better ImPACt 2016. product markets and cost of doing business, and receive For more information, please contact AED’s Washington AED PAC support for their campaigns. Office at 703-739-9513 or aeddc@aednet.org. Whether candidates were Democrat or Republican, incumbent or challenger, congressional leadership member or rank-and-file lawmaker, distributors were concerned only with ensuring the 114th Congress is stocked with leaders who understand the construction equipment industry, and are committed to passing pro-industry legislation. The 2014 election cycle was highlighted by the prominence of the ImPACt program. AED members participated in 50 in-person ImPACt 2014 meetings with candidates. The cornerstone of AED’s political program, ImPACt events allow AED members to meet with lawmakers and candidates in their districts and states and present them with AED PAC support and matching personal contributions. Candidates gain a better appreciation for Congressman John Barrow (D -Ga., seco AED PAC chec what equipment distributors do and learn how federal nd from le k from of Georgia te am.

Republican candidate Doug Ose (R-Calif.) accepts AED PAC support from AED Board member Ron Barlet at Bejac Corporation in Sacramento. 26 | www.cedmag.com | Construction Equipment Distribution | December 2014

ft) receives an Gayle Humph ries (center) and the JCB

Congresswoman-elect Elise Stefanik receives PAC support from employees at Tracey Road Equipment. Left to right: Vic Natali, David Holzwarth, Brian Larose, John Delong, and Dan Donaldson. (continued on page 28)


Michael Brennan, (right) Brandeis COO and executive vice president, hands off the mic to Sen. McConnell at the last big media rally of the new Senate Leader’s campaign.

Brandeis Hikes McConnell Up to ‘Offensive Coordinator’ Kentucky dealer hosted the final, major media rally of Sen. McConnell’s campaign, sets sights on big win for coal. BY KIM PHELAN

One of the midterm elections’ most powerful outcomes was the GOP’s capture of the Senate, which catapulted Sen. Mitch McConnell (R-Ky.) into the seat of Senate Majority Leader. And AED-member Brandeis Machinery, the Louisville, Ky.-based Komatsu dealer owned by Bramco, played a pivotal role in the victory. Recognizing the full potential of what a McConnell win would mean for the equipment and coal industries, as well as for the state of Kentucky, Michael Brennan, Bramco COO and executive vice president, reached out to the senator’s campaign staff in August to invite him to the company’s headquarters. The result was a double-whammy: two events rather than one, including the campaign’s final big rally and major media event the Friday before Election Day. McConnell staffers opened the Oct. 31 event to the public – so combined with Brandeis employees, customers, friends and family, some 250 people swarmed into the dealership’s service shop where the high-energy rally was covered by ABC, NBC, CBS, Fox News, PBS, PBC, and the AP. “It was a hugely popular event for our employees and customers,” said Brennan. “There was lots of music and clapping and cheering; a real positive for everyone!” Brennan, who is also the AED Executive Committee’s vice president of Finance, introduced the senator and emphasized his company’s and customers’ hardships under the administration’s “war on coal.” Sen. McConnell himself then talked about the battering coal has suffered under President Obama’s regulatory policies – and assured the audience of his commitment to help repair the crippling economic damage in Eastern Kentucky’s coal-mining towns. From January 1, 2012 to January 1, 2014, Eastern Kentucky has lost half of its coal production and more than 7,000 direct coal mining jobs, says Kentucky Coal Association President Bill Bissett. “For every one direct mining job lost, Kentucky loses at least three other indirect jobs, and that includes jobs at Brandeis,” said Bissett. “This economic damage hurts employers dependent on the mining of coal and puts at risk the low-cost, reliable electricity that has allowed Kentucky’s manufacturing base to survive the recent economic downturn.” It was in the coalfields where Sen. McConnell made his first appearance with Brandeis. Early in October, he visited the distributor’s Stanville, Ky., branch where about 75 employees and customers eagerly gathered to

show their support. Brennan noted how much time the senator devoted to conversations and to shaking the hand of every single attendee. One of them was KCA’s Bissett, who told CED: “With coal being the main issue of the campaign and which candidate could be the better advocate for coal production and usage, any connection to President Obama or the former Senate Majority Leader Harry Reid was a negative factor in the race. KCA followed this race very closely. With Leader McConnell being the chief adversary to President Obama’s anticoal agenda, he clearly made this case to the voters of Kentucky and won re-election by more than 56 percent against his opponent, who received less than 41 percent of the vote.” Relationships Pay Off The relationship-building Brennan has long cultivated through personal visits to the senator year after year during AED’s annual Fly-In is finally going to pay big dividends. “He said at the rally that he is going from the defensive coordinator to the offensive coordinator. He’s going to be calling the plays,” Brennan recalled. “And we are putting our plays into his playbook.” Going forward, it’s all about the access – direct access to the ear of the Senate Majority Leader. And Brennan has become a great conduit for AED to communicate legislative priorities as well. Right at the front burner of those priorities is funding and passing a multiyear highway bill, and AED is not wasting any time making the “ask.” Just before December CED hits the mail, on Dec. 3 AED President and CEO Brian McGuire will join Brennan on Capitol Hill to meet with Sen. McConnell and six other association allies who, together with AED, comprise the Highway Materials Group. Stay tuned as we follow the action; and meanwhile, why not create a little action in your own state – contact AED’s government affairs office (caklein@aednet.org) for help coordinating a lawmaker visit to your dealership. December 2014 | Construction Equipment Distribution | www.cedmag.com | 27


AED Grassroots

(“Makin’ It Personal” continued from page 27)

AED’s Senior Vice President Whit Perryman of Vermeer Texas-Louisiana (right) presents AED PAC support to Rep. Pete Sessions (R-Texas)

AED Board M ember Todd Bachman of ment (right) Florida Coas meets with Re t Equippublican cand Curbelo (R-F idate Carlos la.).

t ImPACt even es in an AED at ip ic rt pa .) rn (R-Col . Doug Lambo Springs team Congressman .’s Colorado Co t en pm ui Eq r ne ag with W

Bobcat of Omaha executives Don Partridge (left) and Dave Goodsell (right) welcomed Rep. Lee Terry (R-Neb.

ipates in an AED (R-N.J.) (right) partic Rep. Leonard Lance any with AED mp Co t en ipm an Equ ImPACt event at Hoffm Watters. 2014 Chairman Tim 28 | www.cedmag.com | Construction Equipment Distribution | December 2014

Rep. Andy Barr (R-Ky.) meets with Brandeis Machinery & Supply Co.’s leadership – President and COO Gene Snowden (right); and David Coultas, Brandeis vice president of Regional Sales.

AED Chairm an Tim Wat te rs (left) and (right) of Hof Musya Tuman fman Equipm yan ent Co., host LoBiondo (R Rep. Frank -N.J.).

AED’s Regional Director Mike Dexter (left) and Ken Dean from SouthWestern Association (right) present Rep. Sam Graves (R-Mo.) with AED PAC support during a Kansas City Associated Equipment Distributors ImPACt event.


AED Grassroots

AED 2014 Chairman Tim Watters, president of Hoffman Equipment Co., (left) delivers AED PAC support to Rep. Chris Gibson (R-N.Y.).

The JCB of G eorgia team presents Bu with AED PA ddy Carter (R C suppor t fo -Ga.) r his successf ul congressio nal campa

ates in an Im left) particip om fr in w nd Co co se on (left), Byrne (R-Ala., Mike Thomps Rep. Bradley on Tractor’s ps ft) and AED le om Th om fr ith d w PACt event Cowin (secon ie m Ja t of Thomp’s en ny id es mpa utive vice pr ec Equipment Co ex , ey on r Mike Ro Board membe ght). (ri r to ac Tr son

Brandeis Machinery & Supply Co. executives host an AED ImPACt event for Sen. Mitch McConnell (R-Ky.) at the company’s Stanville branch in the Kentucky coalfields region. Pictured with the senator left to right: Michael Brennan, Brandeis executive vice president and COO (and AED’s Vice President of Finance); Charles Leis, Brandeis CEO, and Brandeis CFO Michael Paradis.

ign.

Rep. Nick J. Rahall (D-W.V., at right) receives AED PAC support from West Virginia Tractor Company’s Gary Grady.

The West Side Tractor team meets with Re center with tie) during an p. Peter Rosk AED ImPACt am (R-Ill., event.

December 2014 | Construction Equipment Distribution | www.cedmag.com | 29


Get Out On The Floor

Attachments Buyers Guide

Here are 25 short notes to help you get into the beat of CONDEX 2015. Exhibitors are gearing up to bring dealer products and services to Orlando – register now and check out the full list of participating companies at aedsummit.com.

Sell More Equipment, Parts and Service! www.adiagency.com • Booth 406

What sets us apart at ADI Agency is our ability to to apply strategic programs to overwhelmingly meet the needs of manufacturers, dealers, and customers that occupy this industry. Our aim to help you sell more equipment, attachments, parts, and labor has resulted in the development of our Protect My Iron® Extended Protection Plans, and Loyalty Bound® Digital Marketing Services. Acting as a true business partner, these tools will enable you to sell more of your core products – the equipment, parts, and service that keep you thriving. Our dedication drove us to work tirelessly to create ground-breaking, time-saving, money-making solutions for dealers and OEMs like you. Expand your customers’ purchasing options with extended protection plans, and watch your website thrive as your top salesman with real time analytics, capture leads with contact forms and offers, and inspire continued loyalty with a Loyalty Rewards Platform.

Broadcasting Live: $4 Billion in Auction Products www.bidspotter.com • Booth 624

BidSpotter.com specializes in online auctions providing bidders from around the world with the ability to browse sale catalogs and place bids over the Internet in real time with live audio and video feeds delivering the auction room atmosphere. BidSpotter hosts approximately 1,700+ auctions annually and bidders are able to participate in live webcast, timed online, and catalog only auctions. BidSpotter offers more than $4 billion worth of products, has a database of 400,000 active buyers, and online bidders account for 34 percent of sales. Established in early 2001 and headquartered in Gig Harbor, Wash., BidSpotter is part of the ATG Media family, a pioneer in the online auction industry offering a series of global market platforms bringing together buyers and sellers. errs. As the leader in broadcasting live interactive industrial, agriculture and construction auctions, Bidspotter is dedicated d to to providing customers with top-tier service and the best online bidding experience.

What’s Good for the Buyer Is Good for the Seller www.catauctions.com • Booth 221

Cat Auction Services is quickly becoming the first choice for people looking to sell equipment. Why? We work with you in a way in which everyone succeeds. Our years of experience have taught us that what is good for the buyer is good for the seller. We equip buyers with TA-1 inspection reports done by Cat certified technicians so we can say “buyer-be-informed” instead of “buyer beware.” We know that auctions are part of a larger relationship with customers – a purchase doesn’t just end with a hammer and someone yelling “Sold!” We stay with you to provide financing, parts and service, and so much more – all the things you have come to expect from Cat. Explore our site and learn what Cat Auction Services can do for you no matter what stage of business you are in. 30 | www.cedmag.com | Construction Equipment Distribution | December 2014

(CONDEX Preview continued on page 32)


REGISTER NOW


CONDEX Preview

More Customer Service, In the Palm of Their Hand cdkglobal.com/heavyequipment • Booth 501

MyDealer is an optional product targeted to expand the usage of smartphones and tablets for our dealers’ clients. We look to develop small individual apps to assist dealer clients in doing business with the dealer more efficiently and have access to key information. MyDealer is device-agnostic and will help extend the business system out to the end user like what eServices has done. Features available with MyDealer: • View/maintain My Profile • View My Equipment (including option to update hours) - Submit email to request service appointment - Submit email to say interested in selling • View My Outstanding Invoices • View My Rented Units (including ability to mark off rent) • View Dealership News • View Alerts from Alert Management (if using the PFW Alert Management product) • View Equipment Available for Sale by Dealership • View Rental Units Available from Dealership • View Help • Change/Reset Password

Reach Everyone in Your Region – They’re All Reading CEG www.constructionequipmentguide.com • Booth 523

Construction Equipment Guide (CEG) is a national publication and website providing industry news; articles on construction equipment, projects and legislation; auction coverage; business profiles and events and more. CEG’s biweekly newspapers consist of four regional editions – Northeast, Southeast, Midwest and Western. CEG’s website, www.constructionequipmentguide. com, is a one-stop source for news, used equipment searches, equipment dealer locators, upcoming auctions, construction videos, online editions of its print editions and more. Founded in 1957, CEG is based in Fort Washington, Pa., and is a proud member of the Associated Press.

50-Year Leader in Equipment Dealer Business Solutions www.ebs-next.com • Booth 517

The Next for Windows SQL Solution encompasses all dealers, renters, repair centers, and distributors’ needs, in one easy-to-use system, comprising: Real-time Integrated Accounting, Intelligent Inventory, Rental Management, MFR Interfaces, Customer Relationship Management, Warranty, Preventive Maintenance, Paperless Field Service, Easy Scheduling, Time Management, Job Costing, Transportation and Dispatch. Now, eBS is happy to release its new Cloud Solution for Next for Windows SQL – all of the solutions and none of the IT. Also new to eBS is our Customer Self-Service Portal (CSSP) and our Mobile CRM Applications both available to enhance your Business. We have dedicated our lives to your business – and firmly believe that anyone that does not specialize in your business has no business asking for it. For more information, call 713-9391000 or e-mail ebssales@ebs-next.com.

PosiGrab Hydraulic Coupler: Easy to Use, Better Safety Features www.escocorp.com • Booth 608

ESCO Corp., a leading global provider of wear parts and attachments for the mining and construction industries, offers an advanced hydraulic coupler that gives machine operators a simple connection to attachments and provides greater site safety. The ESCO PosiGrab coupler features both front and rear locks that are mechanically engaged through the full working cycle. The natural position of the coupler is locked and only opens using forced hydraulic pressure. The connection and release of an attachment, including the visual confirmation that the locking mechanisms are engaged, is done without the operator leaving the safety of the cab. Along with the safety and ease-of-use benefits, the PosiGrab coupler was engineered to reduce stress on attachments and machines. 32 | www.cedmag.com | Construction Equipment Distribution | December 2014

(CONDEX Preview continued on page 34


JOIN OUR TEAM! Earning a proďŹ t is easy when you carry Hyundai Construction Equipment. The attraction is simple: Hyundai delivers your customers competitively priced prod products with a long list of standard features. All backed by a category-best total coverage warranty: 3-year/3,000-hour full machine and 5-year/ tota 10,0 10,000-hour structural. To get the inside story on how to become a Hyundai Dea Dealer, contact us at becomeadealer@hceamericas.com.


CONDEX Preview

Affordable Hydraulic Breakers, Best Hammer Service www.gorillahammers.com • Booth 801

For years, GORILLA has sold and supported its own line of quality hydraulic breakers. GORILLA breakers’ visual design empowers the customer to perform their own maintenance and repairs and make it easy to notice issues before they become major problems. Additionally, nearly all repairs and maintenance, including nitrogen charges, can be performed in the field. These features and their low purchase price, make GORILLA Hydraulic Breakers the most affordable, supported breakers available. Our company enables customers to make one call for all of their hammer needs, regardless of make or model. Our parts department either stocks or can source OEM or OEM-quality new or inspected used parts for nearly every breaker ever made. As a Solida master warehouse, GORILLA stocks “throughhardened” demolition tools for nearly every breaker in the market. Our factory authorized, fully equipped service department enables us to provide the best hydraulic hammer service available.

PowerTilt Grabs Hold of Almost Any OEM Attachment

www.helac.com • Booth 723

Please visit us in CONDEX Booth 315 34 | www.cedmag.com | Construction Equipment Distribution | December 2014

The new Helac PowerTilt hydraulic pin grab coupler option provides more choices in addition to the existing half hitch, Universal (Wain-Roy/ CP), and brand specific couplers. As with the other options, the pin grab coupler still allows the PowerTilt to rotate up to 180 degrees side to side. The variable pin center design allows easy pick up and change of the widest range of OEM attachments. The Helac PowerTilt hydraulic pin grab coupler option makes it easier for the operator to change attachments from the security and comfort of the cab. The coupler provides both a front and rear safety locking mechanism to secure both attachment pins. No separate, manually inserted, safety pin required. The hydraulic pin grab coupler option is available for 5- to 30-ton excavators and loader backhoes, with 18 PowerTilt pin grab coupler combinations to choose from.


CONDEX Preview

Help Customers Come at the Job From Any Angle www.indexator.us • Booth 525

Indexator Rototilt attachments combine continuous rotation, 40-degree side tilt in each direction, and a hydraulic quick coupler all in one package. It allows a bucket or other attachment to be rotated and tilted at the same time, making it simple to operate around or under obstacles, and for any type of ground contouring. The unique combination of continuous rotation and side tilt lets you approach your job from any angle. Rototilt is available in six models covering excavators and backhoes from 1.5 to 30 ton capacity. The flexibility of the Rototilt allows an excavator or backhoe to operate in extremely tight work areas and perform functions that would normally require specialized equipment, multiple machines, or additional manpower. Rototilt allows the operator to perform new tasks and work more efficiently in all types of conditions or situations.

More Organized, More Safe Out on the Field

WORK IN A MORE STABLE ENVIRONMENT WITH PIERCE STRADDLECARRIER.

www.knapheide.com/products/ mechanics-trucks • Booth 607

Knapheide’s KMT2 Mechanic Truck comes equipped with a variety of compartments to store your equipment and help you stay organized on the jobsite. The Master Locking System keeps your tools and equipment safe and secure while giving you peace of mind. The KMT2 employs a 10,000pound maximum capacity crane to take care of all the heavy lifting. Knapheide’s KMT2 is available in 11-, 13-, or 14-foot body lengths and many different compartment configurations. The next time your jobsite requires a heavy-duty crane body, call on Knapheide’s KMT2 Mechanic Truck. Learn more about Knapheide Mechanics Trucks at Knapheide.com/products/ mechanics-trucks.

(CONDEX Preview continued on page 38)

Pierce straddlecarriers offer three times the productivity of sided loading methods while radically enhancing operator visibility. In addition to increased productivity, our straddlecarriers minimize railcar damage and improve operator safety. All with minimal capital investment, as opposed to other railcar unloading systems. Operate more efficiently with Pierce equipment…purpose-built right here in North America.

WWW.PIERCEPACIFIC.COM 800.760.3270 PORTLAND, OREGON EDMONTON, ALBERTA JACKSON, MISSISSIPPI

December 2014 | Construction Equipment Distribution | www.cedmag.com | 35



Please visit us in CONDEX Booth 306


CONDEX Preview

Pettibone Cary-Lift 154 With New Performance Benchmarks www.gopettibone.com • Booth 511

The new Pettibone Cary-Lift 154 delivers the traditional load handling benefits of the Cary-Lift product line, while introducing new performance benchmarks to meet the evolving needs of end users. Featuring a cost-reduced, streamlined redesign and enhanced operator comfort, the 154 offers simplified maintenance and more productivity in a variety of material handling applications. The new 154 retains Pettibone’s unique overhead lift arm design, giving the operator full front visibility when lifting, placing or transporting loads. A sloped engine compartment improves line of sight to the rear as well. The addition of wider lift arms and front balers provides greater load stability, while hydraulic frame sway control continues the Cary-Lift’s heritage of exceptional load manipulation. A quick attach system increases the machine’s versatility, with fork frames, pipe and pole balers, log balers and scrap balers all available as attachments.

More Pipeline Contractors Asking for Pipe Gator www.lapipegator.com • Booth 820

Pipe Gators’ premiere product is the PG-325, currently the only attachment in the pipeline industry of its kind in the world. Its efficiency and safety features set it apart from any other tool or procedure on the market. With capabilities of undermining up to 42-inch pipe, it is versatile enough to handle any diameter at hand. Utilizing the gators efficiency to its full potential has proven to accelerate production and provide a level of safety that is unmatched by any other tool or procedure currently implemented in common practice in the pipeline industry. Currently, Pipe Gator is a requirement for some of the top companies in the United States to bid and perform any maintenance on their lines. Pipe Gator is quickly becoming a common request due to its efficiency, and the overall level of safety it brings to the operation.

Close Sales Faster With Financing

Powerful Integration to Maximize Your Selling Effectiveness www.relevantcrm.com Booth 202

WITH OUR TEAM SELLING APPROACH, YOU SELL THE EQUIPMENT AND WE STRUCTURE THE DEAL.

Programs for new & used heavy construction equipment t $Pmpetitive rates t 8JEF $SFEJU 8JOEPX t 'MFYJCMF 5FSNT t 'BTU 3FTQPOTF t 'JSTU $MBTT 4FSWJDF

(800) 875 875-0326 0326 www.directcapital.com Please visit us in CONDEX Booth 619 38 | www.cedmag.com | Construction Equipment Distribution | December 2014

One integration we’ll feature at CONDEX is our Solutions Connector for Microsoft CRM. Our integration between DIS’ Solutions ERP product and MSCRM offers: • Sales reps will have easy access to Solutions ERP data from within CRM • Solutions data exposed in CRM includes: customers, machines owned, inventory, warranties, work orders, financial summaries, accounts receivable amounts, and much more! • Search by many types of criteria such as customers with aging or high hour in-service equipment See how Relevant CRM can help you maximize selling effectiveness.


CONDEX Preview

All Makes, All Models (AMAM): Your Defense Against Sales Lost to the Internet www.rfedistribution.com • Booth 401

The AMAM solution brings a state-of-the-art parts and service quoting system to your team’s fingertips and aligns your dealership with the digital market space. Our All Makes, All Model solution allows your dealership to save time and money, while increasing your market share by providing parts and service for all makes and models of equipment. The AMAM program allows your parts and service teams to quickly and cost-effectively find the parts your customers are looking for. You’ll save money on parts by buying direct from qualified suppliers or manufacturers and save time by not having to remember where to find the best deals for each part, component, and service. Our program brings your customers back to the dealership and eliminates shopping the Internet by helping you provide competitive prices, support, and superior products and services.

Stop and See the New DisplayPro Media Digital Signage System www.rockanddirt.com • Booth 603

Rock & Dirt will demonstrate DisplayPro Media, its digital signage system, at CONDEX 2015. The service – tailored for sellers of heavy equipment, trucks and trailers – features inventory ads or other content paired with local weather. “We currently have monitors at three locations, and we are looking to add more,” said Richard Lindley of Thompson Tractor Company. “The system enhances the dealer experience for our visitors and provides another outlet to promote our inventory and dealer specials.” With a 40-inch, flat-screen monitor and small interface box, the system requires only an Internet connection. Full-screen and side bar ad content is managed off-site by Rock & Dirt, which also provides the weather data.

‘Best In Class’ Customer Experience Management Requires Deeper Plan of Action

Unsurpassed Ripperformance! “Bedrock Sharcs” ock

Bedr

with the excavator rock ripping

TM

TM

“SHanks on an ARC" technology

www.satisfyd.com • Booth 618

SATISFYD INC., has executed on a number of customerfacing training workshops for parts and service personnel with impressive results that we can quantify and document. We use both employee and customer feedback to drive specific curriculums that can be immediately applied. At SATISFYD, we like to talk about the business of improvement in 3 buckets: 1. Data Collection/Feedback 2. BI (Business Intelligence) or analysis and reporting with metrics 3. Professional Development for customer-facing staff (CONDEX Preview continued on next page)

(Highest Capacity)

Multi-DigNRip Bucket

6 to 9 times the force of a standard 5 tooth bucket 4 times faster than a hammer

eading dge

Hi-Cap Multi-Ripper Bucket

Rips the sides and bottom of the trench flat with no depth limitation

Hardox 400 construction - Available for all excavators and backhoes

"Leader in Excavator Rock Ripping Attachments" Operators Claim: ttachments, www.digrock.com "the best attachment sales@leattach.com ® Inc. 866-928-5800 or 508-829-4855 I ever bought!"

December 2014 | Construction Equipment Distribution | www.cedmag.com | 39


CONDEX Preview

More Compact, Less Expensive: Screen Machine’s Triple Deck Screen 622TH www.screenmachine.com • Booth 305

Screen Machine Industries, a leading American manufacturer of portable crushing and screening equipment, unveiled its new triple deck screen at the 2014 ConExpo trade show in Las Vegas. The triple-deck screen on the 622TH Spyder screening plant features a triple-shaft shaker mechanism with a unique direct feed arrangement that can be a significant benefit in many applications, where a more compact, less expensive screening plant is required. The 622TH also features a Caterpillar C4.4TA, 127 HP power plant for reliability and worldwide service.

Selecting A Retirement Plan? Don’t Go It Alone www.sentry.com • Booth 301

As a bundled service provider, Sentry Insurance covers all aspects of a 401(k) plan, making it easier and more affordable for you. Providing a top notch, customized 401(k) plan for your business is our priority. We understand the importance of controlling your costs and easing your administrative burden so you can focus on running your business. Sentry’s retirement plan includes: Diverse Plan Options • Traditional 401(k) • Roth 401(k) • Safe harbor 401(k) • Profit sharing • Money purchase • Investment-only

6LPSOH (IÀFLHQW 'HVLJQ LQ %UHDNHUV Crawler Drills www.soosan.co.kr/eng/ • Booth 309

Please visit us in CONDEX Booth 808 40 | www.cedmag.com | Construction Equipment Distribution | December 2014

Soosan USA Inc., owned by Soosan Heavy Industries Co Ltd, the largest and oldest manufacturer of hydraulic breakers in Korea, was established in Schaumburg, Ill., to serve North American market in September 2014. Soosan offers a complete range of breakers and other attachments for skid-steer loaders, backhoe loaders and excavators ranging from 0.8 to 80 metric tons. Simple yet efficient design is the hallmark of Soosan Breakers, and its performance has been proven in many different regions across the world for the past 30 years.


Please visit us in CONDEX Booth 607


CONDEX Preview

Tackle Tough Sweeping Jobs With Stewart-Amos www.stewart-amos.com • Booth 310

The S-4XL is a full-featured, mechanical broom street sweeper mounted on a non-CDL chassis. It offers an oversized 4.5-cubic-yard hopper, variable 12-foot dump height, 330-gallon water tank, and 10- to 11-foot sweeping path. A 3-shaft elevator system extends useful chain life and reduces maintenance. Four massive “X” style lift scissors ensure exceptional hopper stability when dumping wet, unbalanced or sticky loads. An extended-reach dump door makes the dump procedure faster, cleaner and safer. The S-4XL is easy to operate, simple to maintain and extremely cost effective to own. We invite you to visit our website to learn more about the XL and our other unique street sweepers, or call 717-514-6119.

A Coupler That’s Virtually Maintenance-Free www.stricklandus.com • Booth 707

Strickland Manufacturing’s TwinLock range of hydraulic couplers are manufactured from high-tensile (AR400) steel for maximum durability and have an ultra-low profile design, hence reducing breakout force loss. They host only two moving parts, no grease fittings and all the components are fully enclosed from dirt and debris making them a virtually maintenance free coupler. They also have two independent locking systems as well as a curl to open feature for maximum operational safety. They are available for 8- to 45-metric ton excavators and all TwinLock couplers ship with machine specific wet kits and cab controls for easy installation.

Lightweight, Portable Bagging Machines Fit in Your Customer’s Pick-up Truck www.thesandbagger.com • Booth 325

The Sandbagger LLC has provided bagging machines to many different industries around the world. We’ve been helping communities and businesses with all of their bagging needs since 1993. Located outside of Chicago, Ill., The Sandbagger LLC is owned and operated by Tim Vandergrift. We sell varied bagging machines and bags for sand, mulch, soil, compost, worm castings and more! Whatever your bagging needs are, The Sandbagger machines can meet them. All of our machines come with a one-year warranty that covers parts and labor, but we at The Sandbagger know that your machine will give you many years of bagging use without any trouble.

Undercarriage Repair Equipment for Construction, Mining Industries www.wtcmachinery.com • Booth 311

WTC Machinery LLC is the world leader in supplying and supporting undercarriage repair facilities. We are proudly manufactured in the USA, and our origins are in undercarriage repair, serving the global mining and construction industries. And undercarriage remains our prime specialty today. We offer a complete selection of track presses and track handling machinery, electric torque wrenches, welding equipment and hydraulic cylinder repair stands. In addition to the large equipment we also offer a full line of portable pin presses for field repair. The multiple size offering enables us to tailor a service package for each specific need. Be it mining, construction or agriculture, WTC has the equipment you need to service your undercarriage. In addition to the equipment WTC has over a century of experience in house, which means quick and accurate support no matter the age of your equipment.

AED Names WTP Exchange a ‘Preferred Provider’ Four Years in a Row www.wtpexchange.com • Booth 402

Associated Equipment Distributors (AED), North America’s trade association for construction equipment distributors, has selected WTP Exchange for the fourth year running as its Preferred Provider for Like-Kind Exchange (LKE) services. “Without bonus depreciation, many of our members will see taxable income spike this year unless they take advantage of an LKE program,” says AED President and CEO Brian McGuire. “As our Preferred Provider of LKE services, WTP Exchange is the right firm to provide the solution.” WTP Exchange provides LKE tax consulting services and Qualified Intermediary (QI) services.

42 | www.cedmag.com | Construction Equipment Distribution | December 2014



A Closer Look

Chris Alexander, Minister of Citizenship and Immigration, detailed a federal government plan that is designed to shorten the online application approval time for prospective immigrants.

‘Informative and Important’ – 2WWDZD %ULHÀQJ Dives into Hot Issues for Canadian Distributors

In the shadows of Parliament Hill, the equipment industry and allied organizations convened in late October for AED’s first public policy conference. A powerful dimension of the economy, equipment companies are facing severe workforce shortages. BY TOM VAN DUSEN

The reviews are in for the first AED public policy conference in Canada – The Ottawa Briefing –and they’re unanimous: the meeting was a hit with everyone in attendance. Featuring a variety of prominent guest presenters, including Chris Alexander, Canada’s Citizenship and Immigration Minister, the briefing explored the equipment distribution industry’s top priorities: skilled labor shortage, infrastructure project delays, and tax irritants. “They’re powerful themes led by the federal government… and the government will have to be pushed on them,” said participant and presenter Wally Butler, CFO of Mazergroup of Manitoba and Saskatchewan, the largest New Holland dealership group in Canada. And the hottest topic of the Oct. 30 meeting was the shrinking workforce and that’s what occupied most of the briefing’s time and attention. Chartered accountant Butler said its “paramount” that the Canadian immigration system be streamlined to meet the need for skilled workers. Meanwhile, he said, some Western Canadian equipment companies are trying to make the industry more attractive to young local workers 44 | www.cedmag.com | Construction Equipment Distribution | December 2014

and are offering incentives such as scholarships to help generate interest. In the agricultural sector, he continued, most operations are smaller and rural based. The challenge is not simply to acquire qualified workers but to keep them in the face of manpower competition from the mining and energy sectors. Vermeer Canada’s Craig Drury mentioned the need to educate young people on the sophistication of the heavy equipment industry, that becoming involved in the sector is as “sexy” as becoming a doctor or a lawyer. Participants were intrigued by Canada’s latest approach to boosting the skilled labor pool as outlined by Minister Alexander, an engaging former diplomat once based in Russia and Afghanistan, who opened the meeting with a presentation on his government’s efforts to expand the country’s skilled workforce. Shortage of labor is critical, and as Director of Government Relations and Public Affairs for the Canadian Construction Association Bill Ferreira pointed out, his sector alone will require more than 300,000 new workers by 2022. Ferreira, who is former director of Government Relations with the


Public Policy

Wally Butler, CFO of New Holland distributor Mazergroup, Manitoba and Saskatchewan, shares thoughts during a roundtable discussion.

educational certificates and employment experience. The incentive for applicants not to fudge credentials will be the fact that, if found out, they’ll be bounced out of the immigration line forever. What Alexander called “an exciting new chapter in the immigration system, the biggest reform in 40 years,” will be retroactive in that it’ll target new arrivals already in the country in addition to ones on the waiting list. Asked where most immigrants to Canada originate these days, Alexander said about 250,000 a year come from Asia, with more than ever from India, Latin America and the Middle East.

Forest Products Association of Canada, underlined that the longer the government takes to get a handle on immigrant ,JQLWLQJ WKH <RXQJ worker reform, the more global competition picks up the Sarah Anson-Cartwright, Director of Skills Policy with the slack. In a related issue, ways have to be found to make the Canadian Chamber of Commerce, echoed other speakers existing workforce more productive. in calling for getting young people informed about career “We can’t afford to lag behind,” Ferreira insisted, adding possibilities in the equipment and construction industries. that, overall economically, the current government has been As a model, Anson-Cartwright pointed to Germany where doing “a hell of a job.” she said employers are “embedded” in the education system. CCA’s priorities include increasing apprenticeship opportu- Author of a number of studies on the workforce crisis, she nities, worker mobility, innovation and productivity. Incenwarned that the government’s online worker pool won’t tives are a necessary part of the package: “The government succeed if immigrants don’t buy into it. can’t simply wave a magic wand and make these things Her colleague Hendrik Brakel, CCC senior director of happen.” Economic, Financial and Tax Policy, questioned if Canada Alexander agreed that it’s been a major challenge for is ready for a resurgence of global growth. In addition to his government to help provide the necessary workers in a lagging in workforce expansion and infrastructure projects, surging economy with what amounts to a zero population “massive investment” is needed across the board, including in growth other than through immigration. Satisfying specialized heavy equipment. trades’ demand has been particularly difficult. Related issues are the fact most jobs are extremely techno- (OHFWLRQ 7LPH LV WKH 5LJKW 7LPH logically advanced these days and that people won’t relocate AED Vice-President of Government Affairs Christian Klein as readily as they did 30 to 40 years ago. For example, several observed that the people gathered for the Ottawa Briefing high-level skills are needed to operate a modern piece are feeling the impact of the worker shortage every day. of heavy equipment that was once manually driven; and Several speakers pointed out that, with the Canadian governthe technical skill to service today’s machinery is, as every ment heading into an election year in 2015, the time couldn’t distributor knows well, exceedingly complex and advanced. be better for the industry to promote its concerns. “We have momentum and we have no intention of losing ([SHGLWLQJ 4XDOLÀHG ,PPLJUDQWV it,” said AED president and CEO Brian McGuire. Admitting the existing temporary foreign workers program In pre-election mode, the government is likely to dish is “woefully under-subscribed,” the minister said the government’s latest strategy is to acquire skilled, permanent help from the immigration pool on a much faster track than the current norm. Effective next month, those desiring to move to Canada will be invited to build an online employment qualification profile as part of their application. Entry into the country will be expedited based on qualifications offered and prospective employer demand, the minister said. He added that employers are being encouraged to post and refine their needs as part In addition to lagging in workforce expansion and infrastrucof the new system. ture projects, massive investment is needed across the board, Alexander predicted the streamlined immigration system including in heavy equipment, said Hendrik Brakel, CCC Senior will reduce the average time it takes to become a permanent Director of Economic, Financial and Tax Policy. immigrant from one year to six months. What will amount to an immigrant job bank will emphasize language ability, (continued on next page) December 2014 | Construction Equipment Distribution | www.cedmag.com | 45


Public Policy

(“Ottawa Briefing Dives into Hot Issues for Canadian Distributors” continued from page 45)

economic issues. Canada is picking up 95 percent of the tab for the new crossing that handles one-third of trade between the two countries. “We need 21st century infrastructure in place at WindsorDetroit,” he stated. He also said he was grateful to AED for work done in supporting the 1,179-mile Keystone XL pipeline project designed to transport crude oil from Alberta to Nebraska. He hoped the “political challenge” of selling Keystone in the U.S. will soon become easier.

out “feel good measures” such as infrastructure money, security upgrades and tax cuts, said presenter Eric Miller, vice president of Policy, Innovation and Competitiveness with the Canadian Council of Chief Executives. A former Industry Canada representative at the Canadian Embassy in Washington, D.C., Miller added that “enormously important” senior bureaucrats and ministerial staff should also be part of lobbying efforts because of their influence on policymakers. Under the Building Canada Plan, the government has 7KLV LV -XVW WKH %HJLQQLQJ committed $70 billion to public infrastructure funding AED President and CEO Brian McGuire reminded attendees over the next decade. In addition, the government will that construction and development simply wouldn’t move enter the election year with a $3 billion budget surplus – forward without the necessary equipment, which AED money to spend. members supply, and he indicated the association will use its The Province of Ontario alone has committed another high-profile position to become more vocal about its priori$130 billion over the next 10 years to infrastructure, the first ties in both Canada and the U.S. time such a long-term plan has been implemented, said Scott In the meantime, he called on participants to lobby their Pegg, director of Intergovernmental Policy for the Ontario respective Members of Parliament, to invite them to attend Ministry of Economic Development, Employment and dealership events for an inside look at what the industry Infrastructure. The program will create 110,000 jobs a year has to offer. It’s part of the MPs’ job to get to know major over its duration. employers in their constituencies, he said. Infrastructure project delays have been a major setback Ottawa Briefing participants delivered enthusiastic in Canada, said Janet Annesley, vice-president, Canadian appraisals during a roundtable at the end of the meetAssociation of Petroleum Producers in Ottawa and Atlantic ing. Feedback from Cam Tyhurst, Ottawa based general Canada. A former Shell Canada Energy senior manager of manager of Nortrax, summed up the sentiment, citing Stakeholder Engagement, Annesley cited four green-lighted “top-notch speakers” as the main attraction of the session Canadian pipeline projects not yet underway. that featured a working lunch and a sky-high reception Concerning the election year, Annesley isn’t worried with a view of the city at the end of the day. Like the over political parties – the Liberals in particular – and other others, Tyhurst was impressed AED organizers were able agendas taking over government. They should be seen to book a Canadian cabinet minister to welcome industry leaders and kick off the session. as “empty vessels” to be filled with the viewpoints of the McGuire said that there’s no mystery in the fact the industry, she says. government would agree to assign a minister to take part in the Ottawa Briefing – it’s a clear indication the equipment 0RGHOHG RQ UHFXUULQJ VHVVLRQV ZLWK 8 6 industry represents a “vital component” of the Canadian government and sector leaders held in Washington, D.C., economy. AED’s Ottawa Briefing was prepared in cooperation with The only Quebec participant, Jean-Yves Grand, Montreal the North American Equipment Dealers Association and based general manager of corporate sales for Hewitt Equipthe Canadian Construction Association. ment, was effusive in his praise. Happy that he decided to make the two-hour trip to Ottawa, Grand said that, while “Don’t make them your enemy,” she cautioned, adding challenges for the industry were clearly identified, the overall that Canada must preserve its status as one of the world’s outlook seems to be positive. most stable investment climates. It’s just the beginning of things to come, McGuire said, citing AED as “very powerful” on both sides of the border, a &RPPRQ *URXQG fact that will be evident at the AED Summit Feb. 10-13. Challenges aside, “in a world of trouble, North America stands out as the place to be for global business,” said TOM VAN DUSEN JR. has written for daily and weekly newspapers in Canada for Alexander early in the day. more than 40 years. A freelancer based near And the minister discussed the importance of AED Ottawa, Ont., his specialties include the general high-priority projects that are of great mutual importance to economy, politics, agriculture and the environCanada and the U.S. Alexander emphasized the planned $4 ment. He can be reached at 613-445-3407, billion Detroit-Windsor international bridge – replacing the tomvandusen@sympatico.ca. 85-year-old structure now in place – is one of Canada’s top 46 | www.cedmag.com | Construction Equipment Distribution | December 2014


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Data Man

Contractor Connection

A Public Works Perspective When it comes to making decisions about the Manatee County fleet, Michael Brennan looks to the numbers. He likes PM agreements and multiple OEMs. Are you in sync with what he’s saying? BY JOANNE COSTIN

Like many local government agencies, Manatee County, Fla., continues to face great fiscal challenges brought on by the Great Recession. According to its website, the county’s operating budget for 2015 is $527 million, an increase of $7.8 million over fiscal year 2014. However, that budget is $63.6 million lower than it was in

48 | www.cedmag.com | Construction Equipment Distribution | December 2014

2007. Property taxes are $65 million lower than 2007. In addition to making budget cuts, the county has been using funds from its reserves to make ends meet. All of this is top of mind for Michael Brennan, CEM, who, as fleet manager for Manatee County, is charged with acquiring, managing and maintaining the county’s fleet of


Contractor Connection

more than 1,335 vehicles – everything from sedans, trucks and buses to street sweepers, backhoes, excavators and off-road dumps. In addition, there are 1,100 pieces of small engine and turf equipment that are cared for by Brennan’s staff of 35, who operate out of four separate facilities. “We have held our costs down, our chargeback prices down, and have done everything we can to stay within budget,” said Brennan. “Being a governmental organization, we are two years behind the general economic revenue recovery.” While a countywide staff cut of more than 300 and reduced county services has lessened the workload for Brennan and his crew since the recession began, they have undertaken a number of other cost-saving measures.

Outsourcing is another strategy the department has used to save money. About 30 percent of the equipment maintenance work is outsourced, including engine overhauls and work on undercarriages and exhausts, painting and glass work. Shop overflow is also outsourced. “If I can’t get that piece in the door and under repair within three days, I will typically outsource that back to the dealer,” said Brennan. Data drives decision-making at the Manatee County fleet shop. “I love having the data from our system,” Brennan exclaims. “Data really tells you where you are at. That is the only way you really know if you are making progress and going in the right direction.” The No.1 benchmark for Brennan is fleet availability, which this last fiscal year ran at 94.9 percent. Parts availability is another key measurement. “My parts staff supplied 82 percent of the parts with two hours,” added Brennan. For this important metric Brennan relies greatly on his dealers.

Manatee County Fleet Earns National Recognition Brennan relies heavily on the data generated from a sophisticated equipment management software system (Faster Web from Faster Asset Solutions) to guide his decisionmaking. The results of the team’s efforts earned them the 2013 Fleet Master of the Year award from the Association of Equipment Management Professionals (AEMP). The award recognizes Population: 322,823 excellence in financial management (finanArea: 893 square miles cial management, acquisition, warranty Largest Metro area: Bradenton and performance guarantees); information Number of Vehicles: 1,335 busses, trucks and construction equipment management (benchmarking, life-cycle Number of Small Engines and Turf Equipment: 1,100 costing, specifications and technology); Replacement value of equipment: $86. 5 million policies (safety, employee training, environEquipment Maintenance and Support Staff: 35 mental and human resources); and controls (outsourcing, parts management, preventive maintenance, Brennan views dealers as part of his team. “The OEMs and shop and facilities management). They also received who can supply the parts when we need them are reliable the award in 2009. – those are the ones you are going to continue to go back A wide array of machines support the varied activities of to,” said Brennan. He’s pleased with the parts support the county – a landfill operation, road maintenance, storm he gets from his dealers and reports that almost 95 water maintenance, infrastructure, water treatment plants, percent of the parts he needs he can get overnight sewer treatment plants, mass transit, parks and recreation, from local distributors. and more. Each division is equipped with a minimal essenAnother key metric is repairs generated by PMs (prevential level of vehicles and equipment to accomplish their tive maintenance services). Brennan finds that identifying tasks, and additional equipment is available from a central issues when machines are undergoing routine maintenance pool of county-owned equipment. In doing so, charges for minimizes downtime. Brennan also monitors and updates short-term equipment use are billed to the project itself PM programs regularly to keep up with new technologies rather than the operating budget. “The rental pool operand potential issues. ates just like a private business,” said Brennan. The Faster Web software program also allows the county to capture labor in real time as technicians are How Times Have Changed working. Over the past year the technical productivity rate Gone are the days when an expensive piece of construction was 80 percent. machinery was automatically replaced with a new machine. “We are rebuilding a lot more equipment for a second Purchasing Considerations life versus buying new,” said Brennan. Rebuild work on When purchasing equipment, Brennan evaluates current machines valued at more than $200,000 is being contracted equipment needs but also what the machine is going to be out to OEM dealers. The end result is a 50 percent cost doing five years down the road. reduction on capital cost and a full five-year warranty “If operations are going to change two or three years significantly reducing future maintenance financial risk. down the road and that piece of equipment may become

Manatee County Florida

(continued on next page)

December 2014 | Construction Equipment Distribution | www.cedmag.com | 49


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Contractor Connection

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&RQWDFWV LQ \RXU 5HJLRQ **& DGPLQLVWUDWLYH FODLPV RIĂťFH ORFDWHG LQ 6W 6LPRQV ,VODQG *D Vice VicePresident PresidentSales Operations Slade Rowland 912-638-4320 6ODGH 5RZODQG Southeast/East Territory Manager Vice President Sales Greg Schultz 678-697-2715 5LFN 6WDF\ Midwest Territory Manager Eastern Territory Manager Ed Semara 414-975-5353 *UHJ 6FKXOW] Central Territory Manager Midwest Territory Manager Michael Raley 817-301-7984 5\DQ &DUWHU West Territory Managers Western Territory Managers Jeremy Cockroft 970-946-8132 -HUHP\ &RFNURIW Brian Freitag 970-946-8133

%ULDQ )UHLWDJ Please visit us in Suite 21657

(“Data Man: A Public Works Perspective� continued from page 49)

obsolete, I don’t want to buy it.� He doesn’t hesitate to rent specialized machines. To find out what’s new on the market they will attend two or three trade shows per year, as well as research products online. Brennan considers fuel consumption as a major factor when selecting heavy construction equipment. Supportability is also a factor. “We have some equipment I cannot have down more than 24 hours. We have other pieces, if they go down, I can put a backup machine in place. You have to take all these things into account and criticality – how is it going to impact your overall organization operations. Then you can determine which is the best piece with overall costs coming in on top of that.� Despite being tied to the governmental bidding process, Brennan feels they have a lot of say in what brands are purchased. You really need to go out and determine what is going to best fit your organization. “No one organization I know of is single vendor, single-manufacturer oriented,� said Brennan. “When you put all your eggs in one basket you may have a problem down the road.� They currently deal with more than 100 different manufacturers. Technology Needs an ROI While Brennan doesn’t describe himself as an early adopter of technology, there are about 45 machines in his fleet are equipped with onboard telematics. He receives alerts to engine malfunctions and uses it to monitor fuel consumption and even operator behavior. The county also initiated an automated fueling system that tracks fuel usage and mileage wirelessly. For nonmandated technology to be adopted, Brennan looks for ROI. “There is a cost to bring in technology, so we need to know what is the benefit and what’s the ROI.� With

50 | www.cedmag.com | Construction Equipment Distribution | December 2014

technology advancing at such a fast pace, Brennan feels one can easily fall behind on the technology curve, and finding training for his workforce is a big challenge. He appreciates dealers who open training opportunities to his staff. Within their central facility, an area has been set aside to accommodate group training or online training. In addition, technicians attend manufacturer training. Four generations of technicians on the shop floor has created unique challenges. “Each generation has a different idea on how things should be done, and a different work ethic,� added Brennan. “You have to find training understandable to each generation to meet the organizations common needs and goals.� Brennan believes many of his biggest challenges are shared by his dealer partners — from recruitment of technicians to budgeting and being cost-effective. He currently has open positions and expects the difficulty of recruiting technicians to increase in the future. The Value of CEM Designation Being a certified equipment manager has proven to be invaluable to the county fleet manager. “Every penny put into fleet operations has to be justified.,� said Brennan. “Whether you are simply talking to people or presenting a budget or business case, people know they are talking with someone who knows the industry, and has the credentials to be successful.� And while another fleet manager might be content to rely on opinion, Brennan knows better. He’ll stick with the data. „ JOANNE COSTIN is a freelance writer and marketing consultant focusing on the construction industry. She can be reached at (847) 340-4075 or jcostin@costincustom.com.


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A Closer Look

Open to Suggestions Meet Bruce Taylor, branch manager for Kirby-Smith and a guy with an unusual side-line. BY STEVE CALECHMAN

Bruce Taylor has worked with heavy construction equipment for over 25 years. His reason for getting into the business was pretty simple. He needed a job. In 1988, he was just out of the Air Force, married and with a young child. He had moved from his native Chicago to Phoenix, where winters call for air conditioning, and, in the pre-Internet searching days, he looked in the newspaper and answered a company’s ad looking for a mechanic. That was his field in the military, so he got the job and started working on aerial lifts. Over the years, he moved into field service, followed co-workers to other companies, until he landed in Tulsa, Okla., in 2001 as the service manager for Kirby-Smith Machinery. In 2007, he became the branch manager, the position he still holds, where he’s in charge of over 60 employees and a fleet that includes dozers, wheel loaders, haul trucks and cranes. Along with his career, Taylor found something else in Phoenix, something that’s given him not only an outlet from the everyday grind but also another career someday when he’s ready to step back from the equipment business. It’s hypnotism. Taylor, 51, performs on stages around the Great Plains and practices as a licensed hypnotherapist, helping clients gain some understanding and mastery over a problem, be it quitting smoking, losing weight or managing pain. While his sideline isn’t a secret to his colleagues, Taylor tries to keeps the two worlds separate. Still, he says, the two halves don’t fight, as the skills for one can’t but influence and help the other. When Personality and Job Meet Up The service end of the industry seemed like the right landing place for Taylor. As a Midwesterner, he says that he tends to be direct and unambiguous with his words, 52 | www.cedmag.com | Construction Equipment Distribution | December 2014

perfect for that department. The shop floor is not about slow deliberation or a constant stream of phone calls from happy people. The reality is something more like this: Stuff breaks and it needs to be fixed immediately before the next thing breaks. It’s high stress, but Taylor didn’t mind that environment. “I’m a problem solver,” he said. Service puts a premium on being able to juggle many things and not being rattled when a day’s plan is outdated before 9 a.m. That ability eventually got him promoted to Kirby-Smith’s branch manager, where the entire operation of the office was under his control. The problem was that skill to do effective triage and emergency surgery wasn’t necessarily an asset in his new position. At first, he defaulted to what had worked in the past. An employee would come to him with an issue, and he’d fix it. In the short-term, it was a decent plan, but he says that it wasn’t a sustainable or particularly smart one, because, “They’re in my office the next day with another problem. If I don’t teach them, I’ll be a very busy guy.” Taylor says that the concept that he had to become more of a director/coach came somewhat early after his promotion. The transformation, though, didn’t follow as quickly. He knew that he had quality people and he had to allow them to run their respective departments, but it wasn’t until into his second year in charge that he was able to actually pull back and make the key change of listening more than he talked. He says that he already had that ability, but that his hypnotism background helped him with the transition and helped him become a better leader by giving him a focus and an appreciation for what came with his position. “My words have an effect on people,” Taylor said. And so, he needed to show some care in their selection. Just like with his clients, the problems might be similar, but his employees have individual personalities and distinct ways of


Manager Spotlight

accepting what’s given. His challenge was, and continues to be, to find the best delivery method, because, as Taylor says, “It’s not a one size fits all.” Being In The Right Crowd Taylor says he has always been interested in how the mind works and in self-help philosophies. But hypnotism held no allure. He got into by accident in the mid-1990s. He was living in Phoenix, divorced from his first wife and hanging around with single friends who liked to do single-people kind of things. One was going to a comedy club to see a hypnotist. Taylor went along, although he thought that the power of suggestion was all part of the act, he says. His friend who was sitting next to him became one of the volunteers and followed the hypnotist’s suggestions. With that, Taylor says that his attitude shifted and he started to consider that the practice was legitimate. He began to study on his own, ordering books and reading, and he liked what he was discovering. Hypnotism was about understanding the mind and gaining a superior focus where all distractions are shut out. And with that focus – a kind of getting into the zone, in sports parlance – change can happen because what a person believes becomes his or her reality, Taylor says. It remained a self-contained interest until his second and current wife, Chardale, encouraged him to become certified. In 2004, he took a course; practiced on her, which is not recommended; failed a lot; but kept at it, he says. That year, Taylor became a hypnotist. The following year, he became certified as a hypnotherapist. Taylor has a private office just outside Tulsa, where sees up to seven people per week on nights and weekends for a myriad of issues – smoking is the most common – and helps them by getting them relaxed, into a suggestible state and allowing their minds to focus. The side work satisfies him in a few respects. Like with his day job, he can be a kind of guide. “I like helping people improve their lives,” he said. “It’s a wonderful gift I’ve been given.” While being a branch manager and hypnotherapist are titles that he likes to keep distinct, there’s inevitable and unavoidable crossover. There’s the need to listen and individualize. There’s also the need to focus. Taylor says that in both realms, he has to be able to read the room and take in what a person is saying and showing. Visual people say, “I see.” Auditory people say, “I hear.” Both guide him to give the most effective advice. He believes in self-talk – again, reality is what the mind believes – and he says that it’s a necessity for a stuck client or employee. When people start saying how something can’t be done, Taylor says that he’ll try to redirect the conversation and ask what can be done and offer up to 100 reasons why it’s possible. Otherwise, self-defeat is inevitable. “If you think you can’t, you’re absolutely right,” he said.

Customer Application? One particular aspect of his Kirby-Smith work that has been aided by hypnosis is with customer interaction. Like with a client, everything starts with the initial contact and establishing immediate confidence and belief. With hypnosis, if a person doesn’t initially accept that it’s going to work, it won’t. For customers, they need to hear concern and engagement right away. Taylor says that it’s easy to fall into patterns, become bored and do just enough. A person can get by with that approach, but, ultimately, remaining static isn’t effective, because success at work can be more about the customer’s perception of what happened than what actually happened. Any company can have the requisite equipment to fulfill an order and technical skill to address an issue. The tiebreaker is often how a customer feels when everything is finished. “This is a huge relationship business,” Taylor said. “If you solve the problem, but you’re a jerk, they won’t come back.” A Positive Future Taylor has a couple other motivations for doing hypnotism and hypnotherapy. He has four grown children, ages 22-28, along with two grandchildren. He wants to enjoy them and be able to travel with his wife. All of those pursuits require funds, and he says that he hasn’t done a good job with retirement planning. His hypnotherapy practice provides supplemental income now and a future source of money that won’t be physically taxing. “It’s not hard to sit in a chair as an old guy,” he said. The ability to help people and earn money are no small things. But there’s another undeniable aspect to being a hypnotist. Being on stage is fun and it feeds Taylor’s longstanding nature as a class clown. One grade school teacher did some foreshadowing with the comment that “Bruce is excellent at class participation even when the class is not supposed to be participating,” he said. He travels to Las Vegas to study with professionals. And he does gigs at schools, clubs, casinos and corporate functions around Oklahoma, Kansas and Missouri. During his 90-minute shows, Taylor says that he’s made audience volunteers engage in dance contests, believe their shirts were on inside out and must be adjusted, and snuggle with their neighbors for needed body heat. It’s an escape for him. It’s an escape for the audience, and Taylor says that it’s not a bad use of his time and energy, too. “Sometimes people take life too seriously. It’s good to have a mental vacation,” he said. “It’s just as much fun for me, as well. It’s a blast.” STEVE CALECHMAN is a freelance journalist in the Boston area. He’s a contributing editor for Men’s Health and his work has appeared in The Boston Globe Magazine, The Old Farmer’s Almanac and Delta’s Sky magazine. December 2014 | Construction Equipment Distribution | www.cedmag.com | 53


A Closer Look

Industry Trailblazer: Teaching ‘Turns My Crank’ The incomparable Ron Slee steps into his next chapter. Thanks for everything, Ron! BY KIM PHELAN

If you’ve ever been lucky enough to meet doing was pushing the envelope before anyone else was Ron Slee or sit in on one of his classes or webinars, you thinking about things like automation, data collection, already know he’s more than one of your run-of-the-mill flat rating, barcoding and more. He feels like he took the smart guys. Besides having done the hands-on, hard work arrows and scars on his back and likes to think of this new of the industry’s product support jobs – as well as pioneerweb-based learning resource as an ironic twist to all that ing work in “data processing” – for big-line OEM dealers he helped develop 45 years ago – and that the managers like Cat and Volvo, Ron consumes books and news journals he trains today are in a safe zone for growing as product like glasses of water (or make that Scotch) and starts to support leaders. lose his grip when he’s not in the company of industry colleagues and dealer managers who “keep it real” for him. More Innovation to Come But in addition to being one of the construction equip- The new chapter in Ron’s career includes eight “live” classes ment industry’s most experienced and well-liked product in 2015, 80 new webinars, and 14 new self-study courses support trainers and consultants, Ron is remarkably, even that will eventually be translated in 10 different languages deviously, ingenious – and apparently always has been. by 2016. He’s also developing a new “financial fitness” He tells an anecdote from his youth that he got a job program for dealers, where executives can submit confidenplaying piano in a Canadian nightclub, underage in his tial data and have it evaluated in a graphic score – red light late teens, so he could hang around college girls in a bar for “stop what you’re doing;” yellow light for “be careful;” and not get arrested. and green light for the old “’atta boy gold star.” Dealers Ron’s a teacher at heart, and AED has benefited from will be able to choose from more than 200 measures and his talent since the mid-’90s when began writing for CED receive their selected evaluations at whatever frequency they magazine, and later teaching seminars at AED annual want, be it quarterly, semiannually, etc. Not surprising (to meetings. He became a CED columnist around 1998 and this editor, anyways,) Ron also has a new 21-book series he’s has been one of the association’s most prolific webinar gearing up to produce: “Things I Learned in the Dirt.” and self-study creators. He joined AED in 1994 when AED’s then-president, Jay Paradis (Brandeis Machinery), “guilted” How Does He Do It? him into it because it was the industry from which Ron was That’s easy: Ron’s daughter, Caroline Slee, is now a partner making his living. in the family business and she’s selling Learning Without This issue of CED magazine features Ron’s last contribuScars like gangbusters. She’s a teacher and writer, like her tion as a regular columnist, and 2015 will be the first in father (but has the good looks of mother Marlene); she also many years that AED won’t be offering his webinars and live has untenable drive and perseverance – the 38-year-old is a classes. But not to worry, the practical parts and service best cancer-survivor who recently did a 6K, 2,000-foot elevation practices he teaches will still be available. Ron has launched climb with her kids. a new online training business, “Learning Without Scars” Ron says what he’s most proud of, to date, is having (learningwithoutscars.com), where manufacturers and achieved his potential. dealers can continue accessing the same level of industry “I think the other thing that I’m extremely pleased with content – applicable for “all the leading OEM brands and is how many people in the industry I’ve touched,” he said. their dealers” – for which he is renowned. “There’s thousands and thousands of people that I have touched through classes, through conventions – and taught What’s With That Scars Stuff? something. I’ve seen the lights go on in people’s eyes and Ron says that early in his career, so much of what he was that really turns my crank.”

54 | www.cedmag.com | Construction Equipment Distribution | December 2014


Please visit us in CONDEX Booth 807


A Closer Look

Foundation’s Work – and Volunteers – Are A lab lesson is in progress at State University of New York at Cobbleskill, during an ETL visit that resulted in the school’s AED-reaccreditation.

The Real Deal

Real people with real jobs and lives sacrifice their time and talent for The AED Foundation’s workforce programs. Result: More technicians are entering the heavy equipment field, and they will be job-ready for the real dealer world of equipment repair. BY LORI TOBIAS

As the corporate manager in charge of training and safety for Arizona’s Road Machinery LLC, Augie Sacadat often made it a point to stop in and visit with the folks involved in Central Arizona College’s Diesel and Heavy Equipment program. He offered them training materials and insight and visited with Garrett Hurt, the professor of the program. Soon, the conversation turned to Hurt’s desire to see his program accredited by AED, and Sacadat, a volunteer with AED Foundation Technical Standards Task Force, was glad to help. But it wasn’t easy, he recalled. “It was difficult for them because they are a smaller college and don’t have a lot of financial assistance,” said Sacadat, now the senior technical communicator for KirbySmith Machinery in Oklahoma City. “It was hard for them to meet all the requirements. But two years ago, the small college was able to achieve The Foundation’s Annual Campaign for 2015 supports the powerful work that benefits the industry and your company. Currently one-third of the $300,000 goal is met – please pledge generously to keep the work going! Call Rebecca Lintow, (630) 468-5113.

56 | www.cedmag.com | Construction Equipment Distribution | December 2014

all the rigorous standards and earn the accreditation. For Sacadat, it was one of those light bulb moments: “‘Yep, this is why we do this.’ I really felt proud of them that they were able to do that,” said Sacadat, who has worked with the Foundation for more than a dozen years. “Getting certified is an accomplishment. It elevates his program. Instead of being a common, ordinary diesel program this is a program certified by AED. It’s not easy to obtain.” But it is well worth it. Just ask Garrett Hurt. “We became accredited in the fall of 2012 and since then my enrollment is up 75 percent,” Hurt said. And while those numbers are certainly welcome, the relationship with AED is about far more than a head count, he said. “The AED has been a godsend to our program and any diesel program,” Hurt said. “Their mission in life … is to get schools accredited. It is awesome. The AED effort has a whole-hearted genuine interest in making programs better. The people I work with, the people who volunteer their time to look at our programs, they have taken our program here at CAC and moved it to the next level. They come here and say, ‘How can we help you?’” In a nutshell, that’s what it’s always been about.


Workforce

Missions Accomplished – Continuously Founded in 1990, The Foundation set itself two missions: to offer industry-specific education along with workforce development, said Rebecca Lintow, manager of sales and development for The AED Foundation. They do that largely through two purely volunteer-driven programs – one sets the technical curriculum standards for accreditation; the other makes sure the technical colleges adhere to them. “The Foundation has this elaborate accreditation program and we rely on local dealers, manufacturers and technical schools to partner together for the industry to support the schools at the local level,” said Lintow. “The reason that is important is it is a way of ensuring that the graduates who come out of those programs are actually learning skills and are walking away ready to step into a dealer’s service department with the right skill-set. “There is also a group of about a dozen evaluation team leaders who are very experienced and highly skilled, who take the time to travel to the technical colleges that have applied for accreditation,” she added. “They will spend days observing the students, interviewing teachers. The Foundation truly couldn’t do what we do without the volunteers.” The Bar is High Some may question how high the bar is set for those standards, but Terry Marohl, Diesel Department chair and associate professor at North Dakota State College of Science, insists they absolutely must be the real deal. There’s no time for anything else. “It’s important that what we have in the standards book is something we can address in the classroom,” Marohl said. “We have limited time to teach various things. There can’t be much fluff in there. If I have students who graduated AED-accredited programs and go to dealerships and can’t do basic fundamentals, we missed the boat. Standards help to set and ground what we teach within our program.” And it’s working, said Bill Brensel, an evaluation team leader formerly with Quinn CAT. “I think we’ve been able to improve the education process at every school I’ve visited,” he said “We see a lot of things, especially coming from our backgrounds in the industry, that they don’t see at the academic level. We’ve made some very positive recommendations to programs so they can continue to grow and do a better job at training entry-level technicians. “One of the schools I recently visited was struggling with the component requirement in AED standards of having engine-driven hydrostatic in order for students to train on electro-hydraulic components, Brensel continued. “They were struggling with how to utilize it best. We were able to give them real positive ideas on how they could make it work, things they could do with it.”

The Volunteers Who Make It Work AED proudly recognizes the dedicated industry and academic volunteers who use their vast talents and generous donations of time to make workforce development from The AED Foundation the effective, successful program that it is. Thanks largely to these volunteers, hundreds of well-trained young technicians are entering rewarding careers throughout the equipment distribution industry every year.

Evaluation Team Leaders Bill Brensel Retired, Quinn Caterpillar Ivan Bullock Program Coordinator Idaho State University Diesel Technology /On-Site Power Generation Technology John Gilligan President B & L Equipment Inc. Doug Hammond Department Chair State University of New York at Cobleskill Diesel Technology Dr. Wayne Longbrake Former Dean, Pennsylvania College of Technology Terry Marohl Department Chair North Dakota State College of Science Diesel Technology Dennis Massingham Former Associate Professor of Diesel Technology University of Alaska Anchorage Diesel Technology Program Steve Rayburn Program Head, Diesel Technology Programs College of Western Idaho Dustin Schilling Diesel Instructor Alexandria Technical & Community College Glenn C. Williamson Retired Owner, Caprock Vermeer

(continued on next page)

December 2014 | Construction Equipment Distribution | www.cedmag.com | 57


Workforce

Technical Standards Task Force Task Force Chair Rich Jilek - Consultant, Beaird Group

(“Foundation’s Work – and Volunteers – Are The Real Deal” continued from page 57)

Two-Way Street The partnerships work both ways. Not only does industry benefit, but so too the teaching staff from various colleges involved. Doug Hammond, the department chair of the Diesel Technology program at the State University of New York at Cobleskill sits on both the Standards Task Force and is also an Evaluation Team Leader. His programs were first accredited in 2004. “It helps us to be more focused on what we should be doing [academically],” Hammond said. “AED has been the driving force, helping to pull institutions like mine to get feedback on what we can do. It has given us some credi-bility. That’s why I get involved.

Steve Deller Product Support Manager West Side Tractor Paul Anderson Product Support Development Manager Ziegler CAT

Dealers Jason Mahrer - Service Manager, Fargo General Equipment & Supplies Augie Sacadat - Senior Technical Communicator Kirby-Smith Machinery Dennis Fawcett Product Support Manager MacAllister Machinery

Rich Hoffmeyer Product Support Manager McCann Industries Mike Bond Training Mgr. Product Support Roland Machinery Manufacturers Brian Stringer - Supervisor Mining Technical Support Deere & Co.

Members of the Technical Standards Task Force convened this fall to update The Foundation’s rigorous standards, which are the basis for AED school accreditation.

Bobby Oldham General Service Manager Sany

(continued on page 71)

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Workforce Michael Robson Senior Training Manager Komatsu America Corp.

Garrett Hurt Div. Chair, Engineering Technology Central Arizona College

Don Shilling President General Equipment & Supplies

Jim Hemmings Technical Training Manager Volvo Construction Equipment

Ivan Bullock Program Coordinator Idaho State University Technical Training Committee

Scott Tinker General Service Manager Stowers Machinery Corp.

Al Vander Linden - Service Manager Vermeer Corp. Schools Doug Hammond Chair and Associate Professor State University of New York at Cobbleskill Ed Frederick - Department Chair State Technical College of Missouri Gary Wenter Lead Instructor Reedley College

Technical Training Committee

Deven Wilson Media Producer, Construction/Forestry Tech Deere & Co.

Glenn Williamson Retired Owner Caprock Vermeer

Mike Hayes - Director Service Marketing Komatsu America Corp.

Terry Marohl Department Chair North Dakota State College of Science

Steve Hitch Global Manpower Development CAT ThinkBIG, Caterpillar

Dan Moore President R.W. Moore Equipment Co.

Please visit us in CONDEX Booth 707 December 2014 | Construction Equipment Distribution | www.cedmag.com | 59


KISS Makes Everything Better: Keep It Simple Sweepers

A Closer Look

Stewart-Amos Starfire S-4 is used to dump road millings on a Maryland jobsite. Most models don’t require drivers to have a commercial drivers license.

Customers and dealers love Stewart-Amos’ formula for street sweeper success – talk to them yourself at AED’s CONDEX show during the 2015 Summit, Feb. 10-13 in Orlando. BY JOANNE COSTIN

Combining dirt, heat and water with electronics and hydraulics is a recipe for disaster in the world of machinery. But that’s the life of a street sweeper. Frank Chulick laughs at what someone once told him about street sweepers. “Frank, there are really only two types of sweepers – those that are broken and those that about to be broken.” As the president of Stewart-Amos Sweeper Company, a manufacturer of street sweepers, he knows all too well the realities surrounding these machines. “We design our sweepers with uptime in mind. They are easy to operate and maintain,” said Chulick. It wasn’t difficult for the manufacturer to think about being in the customer’s shoes. Long before the company manufactured street sweepers, they rented them to their customers. Founded in 1938, Stewart-Amos, Harrisburg, Pa., still rents sweepers and distributes crushing and screening equipment to the aggregates industry in the Mid-Atlantic states. But since 2002, it has also been manufacturing street sweepers for the industry. According to Chulick, Stewart-Amos entered the street sweeper business when they became unhappy with their sweeper supplier. For their innovative street sweeper rental fleet they wanted a product that would maximize uptime and keep customers happy. Since Stewart-Amos was doing the maintenance work on the rental machines, their design focused on ease of maintenance. They combined their talents in engineering, fabrication and manufacturing with the capabilities of sweeper specific personnel brought on board to spearhead the product line. Design criteria included mounting the unit on a non-CDL chassis, which reduced labor costs for their customers. By 2004, the street sweeper business had

60 | www.cedmag.com | Construction Equipment Distribution | December 2014

grown to the point that a separate company was formed just around the manufacturing business. At the same time, they began a search for dealers. Alban CAT has represented the Stewart-Amos sweeper line for two years, with sales topping more than $1 million in 2014. Alban’s Technical Products Manager Ed Asper likes the simplicity of the product. “I believe in KISS. Customers like the fact that it is a simple unit,” said Asper. “The way they have designed it, it is easy for even the operator to diagnose. You can tell instantaneously whether you have an electrical issue or hydraulic issue.” According to Chulick, key end-markets for the company’s street sweepers include municipalities, highway/ heavy contractors and contract street sweepers, with about a 50-50 split between public and private.

Stewart-Amos President Frank Chulick stands in front of a Stewart-Amos sweeper alongside Service Manager John Bacco. With a background in distribution, the company places a strong emphasis on dealer support.


A Closer Look

“It’s very complementary to most people selling rolling stock,� said Chulick. The fact that sweepers generate a good parts business is another reason to consider adding it to the mix. About half of the dealers representing Stewart-Amos use them in their rental fleets.

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AED Dealers Are Their Silver Bullet *DOD[\ 5 5HJHQHUDWLYH LQFKHV No A unique distribution strategy has helped *DOD[\ 5 5HJHQHUDWLYH LQFKHV No Stewart-Amos carve out a niche in a highly competitive market. Most sweepers are sold *DOD[\ 5 ;/ 5HJHQHUDWLYH LQFKHV No through municipal houses, yet Stewart-Amos targets AED dealers. He finds their focus on service and support is ideal for the product line. sweeper manufacturers are moving. But both Chulick “Our machines are primarily suited for the contractor and Asper believe that sophisticated technology is not market and AED-style dealers, so it makes for a good what customers are looking for. Instead, Stewart-Amos is marriage,� explained Chulick. He believes the more tradifocusing on things that matter to customers. tional street sweeper dealers don’t have the same support “The S-4XL can lift to any dump truck on the street, structure as the AED dealers. “The marketplace is looking but it’s still under a CDL requirement,� said Asper. “That for alternatives and we are providing it,� he added. is huge. Contractors don’t have to worry about a log Asper concurs. “It’s a natural need if you want to be book or maintaining 10-hour-off records.� that one-stop shop and keep your customer base happy.� Sales have been primarily to highway/heavy contractors, Outlook for Sweepers but Asper believes they can be successful in other markets Demand for street sweepers is on an upward trend. One as well. Alban CAT investigated several sweeper suppliers of the reasons is that more states are requiring contracbefore deciding on Stewart-Amos. In addition to the prodtors to sweep after milling and before paving. In addiuct simplicity, the proximity of the Harrisburg location was tion, there are an increasing number of environmental another plus. Parts are typically available within 24 hours. regulations that impact sweepers. Street sweeping is an effective way for municipalities to keep pollutants out of The Sweeper Line the air and water supply, and in some areas it’s required. Stewart-Amos offers a full range of both mechanical and While the municipal market for sweepers declined regenerative sweepers. Each of the mechanical sweepers during the recession as tax revenues fell off, Chulick is incorporates a “three-shaft elevator system� that mininow seeing some pent-up demand for sweepers among mizes chain wear, slashes maintenance costs, and ensures municipalities. “The market for the next couple years more effective sweeping of all types of debris – especially should be strong and growing,� he added. bulky materials. Most Stewart-Amos sweeper models are Chulick says Stewart-Amos has to offer better sweeper built on non-CDL chassis manufactured by Isuzu, Freightperformance and better value to their customers. “Our liner and International. competitors have been in the market a long time,� said Asper is especially pleased with two machines: the Chulick. “We have to be better. Otherwise, why would Galaxy R-6XL and the Starfire S-4XL. The R-6XL is a anyone switch after all these years?� regenerative air vacuum sweeper with 6-yard capacity Satisfying dealers like Alban CAT is also part of their and the S-4XL is a mechanical broom street sweeper. formula for success. Either machine can be mounted on a Freightliner M2 “I couldn’t be happier,� said Asper, when asked if it 25,500-pound non-CDL chassis or a Hino 25,500-pound was easy to do business with Stewart-Amos. “They are chassis. The S-4XL features a 4.5 cubic yard hopper, up to small enough to make changes on the fly, and large enough they are getting recognition.� 12-foot variable dumping height, and 330 gallons of dust Dealers who are interested in representing Stewartsuppressing water. Both models have excellent sweeping Amos sweepers should contact Frank Chulick at 717performance, and the company incorporates heavy-duty 901-2312 or fchulick@stewart-amos.com. For more components to protect electrical and hydraulic systems information, please visit their website at stewart-amos. from water and dirt. com and visit them this February at CONDEX in Orlando. The company’s simplistic approach to the product design is in contrast to the direction some competitive It’s that simple. „

December 2014 | Construction Equipment Distribution | www.cedmag.com | 61


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On the Numbers

10 Actions to Prepare for a Healthy Business Year By taking a personal, in-depth assessment of assets, people and data, owners will take the guesswork out of 2015 planning. BY GARRY BARTECKI

I recently sat in on a presentation by Ken Simonson, who is the chief economist for the Associated General Contractors of America. I figured if anyone has current input about your industry it is this guy, and he did provide an understandable presentation about what and why things are happening the way they are in the construction world. Unfortunately, most of the slides showing projected revenues for 2015 were kind of flat lines. Still some revenue growth but not much; growth in the 1- to 10-percent range seems to be the general consensus. The areas of growth are the energy fields, work on ports as a result of the Panama Canal expansion, and multifamily housing. There is also some additional activity in manufacturing and warehousing. The public sector seems to still be in recession mode. You can get a copy of the presentation by e-mailing Ken at simonsonk@agc.org – use it while finalizing your 2015 strategy. Since the industry seems to be doing better it may be time to look over your operation, take some time to study the balance sheet and what is in it, calculate your debt covenants to see how much wiggle room you have, and finally do a performance review of the income statement (use the 2014 CODB to start the process) to find ways to get the whole organization back into a “normal” status going forward. If I had to suggest specific steps to take they would be: 1. Make sure you understand 2014’s results and any nonrecurring transactions in ‘14 that will not repeat in ‘15.

2. Spend time with department heads to get their thoughts on 2015. You may also want to chat with some line folks to get their input as well. 3. You personally should visit the customers that provide 80 percent of your revenue. That should work out to be the top 20 percent of the customer list. Run a report listing 2014 customer revenue to date and go from there. In fact, run a threeyear comparison of that report to see who has made the list and who fell off the list. 4. Review your credit and collection policies and update as necessary. 5. Get a receivable list and go over it line by line to find out what all those strange numbers mean. There are probably some bucks available on the list you should get, or there may be customers on the list who should no longer be there. Believe me, an aggressive credit and collection policy pays for itself, saves a lot of time, and keeps cash in the bank account. 6. I hate to do this: Get both a parts and a new and used inventory list (including a work-in-process list). Now let’s see how much cash we have tied up in old parts and junk. While you’re at it, check your turnover for all inventory accounts and compare that to the CODB as well. 7. Ask your HR department for an active employee list and compare those employees who generate income against those who don’t. Ask your peers to prepare a similar list so you can compare results. Calculate that percentage of

income producers as a percentage of total staff and use that calculation to see if you are overstaffed because procedures are out of date or the system is not being utilized properly. 8. I assume you are in the rental business in some shape or form. If so, get a list of rental equipment along with time and dollar utilization figures for each rental unit. Use the list to see what goes, what stays, and what gets added to the fleet for 2015. And remember, you have to look at RTS and RTR categories separately. Rental is a risky business in terms of cash management, so make sure you know what you are doing in this area. 9. Ask your CFO for a cash flow statement similar to the one you find in your annual audit report. How are we doing? There are three sections in that report: operations, investing and financing. Are you making money from operations or just because you are selling off assets? 10. Finally, go through your individual departments for the last three years and also compare the results against the CODB numbers. There’s money in that data – yours for the taking. I would make this a quarterly function because if folks know you are looking things have a way of getting cleaned up before you see it. It’s magic. GARRY BARTECKI (gbartecki@comcast.net), founder of Dealer-Rental Success LLC, is a financial consultant to the equipment industry. He can be reached at 708-347-9109.

December 2014 | Construction Equipment Distribution | www.cedmag.com | 63


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Aftermarket

A Dozen Product Support Rules to Live By For my final column in CED, I leave you with these timeless goals that will always result in profitability. BY RON SLEE

This being the season of good cycle that is less than a week. There is tidings, following is what I call “The no justified reason that we can’t have Demanding Dozen,” a list of items, a true turnover greater than six times. which, if looked after properly, will True turnover does not count backproduce success. orders in the sales number. 1) Machine population. If you 7) Parts return on capital don’t know your machine population, employed (ROCE) > 90 percent. you don’t know your business. See The net income percentage of the the model in AED’s Product Support parts department multiplied by the Opportunities Handbook to determine inventory turnover is the calculation. your market opportunity based on the Don’t forget, all sales have to be at working machine population. customer retail prices. 2) Market segmentation. 8) Flat rate, standard time > 90 Understanding that your customer list percent of all shop work. We must is a critical asset of your company is give a fixed price and a completion one thing, it is another thing altogether date for the work – prior to starting the to have your customers segmented work. We cannot consistently do this according to opportunity and relation, without standard times and flat rates. as well as needs and wants. 9) Maintain labor efficiency > 3) Cover 90 percent of the 90 percent. This is the performance product support sales volume of the technician and the supervisor. with an assigned person. Have For all of the hours that a technician either a product support sales person is available to work we can realize 90 or an in-store sales person covering percent of the work hours multiplied all parts and service customers that by the labor rate in monies collected together represent 90 percent of the for the work done. parts and service sales volume. 10) WIP turnover > 52. The service 4) Product support customer group is subject to the same asset retention > 90 percent. With 90 management rules as the parts busipercent of the product support sales ness. With a turnover of 52 times there volume assigned to a specific individual, is less than one week of labor in WIP the expectation is that customer retenat any point in time. That is more than tion will be 100 percent for all of those enough time to close and invoice a job. customers. It is when the customer is 11) Labor quality < 15 hours not assigned to a sales person that we of acceptable service failure per are vulnerable to customer defection. technician per year. Many people 5) Parts availability – find every measure redo or service warranty as part for every customer the same a dollar value. One percent of labor day they order. This is my No. 1 Rule sales is normally the standard, and in the parts business. We must know 15 is my translation into maximum where the part is located and tell the acceptable hours. customer, every day. 12) Completion dates met 90 6) True parts inventory turnover percent+ on all shop jobs. One > 6. We have daily stock orders from of the biggest disappointments in my most major OEMs and a replenishment career is that I have not been able to

get completion dates viewed as one of the critical performance measures. If it were possible to offer a rebate, a reduction of $250 per half day over the missed completion date, I would do it. If the completion date was offered in that manner the market share in labor would rise dramatically. And for a true bakers’ dozen: 13) Have 50 percent of the active machine population on a maintenance agreement. If we had 50 percent market share in maintenance, our repair market share would also rise dramatically. Farewell Finally, after more than 18 years and over 200 columns and articles in this magazine, it is time to move aside and let the mantle of Product Support/ Aftermarket Commentator be passed along. In most everything that I do and have done I like to think of John Wooden, the legendary UCLA basketball coach, who said, “Success is having the peace of mind that comes from knowing that you made an effort to be the best you could be.” I thank all of you for your attention over the years and I wish you this same peace of mind. Au revoir. The time is now. RON SLEE (ron@rjslee.com) is the founder of R.J. Slee & Associates, Rancho Mirage, Calif., celebrating more than 30 years in business in the United States, a consulting firm that specializes in dealership operations. Ron also operates Quest Learning Centers, a company that provides training services specializing in product support, and Insight (M&R) Institute, a company that operates and facilitates “Dealer Twenty” Groups. Follow Ron on Twitter: @RonSlee; and read his blog at learningwithoutscars.com.

December 2014 | Construction Equipment Distribution | www.cedmag.com | 65


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Washington Insider

AED Canadian Policy Agenda Takes Shape DW 2WWDZD %ULHÀQJ Issues affecting the equipment industry on both sides of the border get prime attention. BY CHRISTIAN KLEIN

This fall, AED embarked on an exciting new chapter in the association’s Canadian government affairs program with our first-ever Ottawa Briefing. If the meeting results are any indication, AED is well positioned to play a more significant role in Canada’s capital and advance a policy agenda that will help strengthen equipment markets and improve distributor business conditions. In the four years since the U.S. and Canadian AED organizations merged, our association has methodically put the pieces in place to ensure longterm success in Ottawa. Among other things, we’ve joined the Canadian Chamber of Commerce (CCC) and Canadian American Business Council to give us exposure to Canadian policy issues and build relationships. We’ve also spent time on the ground in Ottawa introducing AED and our industry and getting to know important players in the process. Perhaps most significantly, we’ve staked out a leadership role in Washington, D.C., on issues that impact our members on both sides of the border, including lobbying for the Keystone XL pipeline, the new Detroit-Windsor, Ontario bridge, and Canada’s participation in the Trans-Pacific Partnership (TPP) negotiations. All have been priorities for the Canadian construction industry and business community, as well as the government in Ottawa. Our aggressive advocacy in D.C. has made AED friends north of the border, a fact that was apparent when the association hosted its inaugural Ottawa Briefing in October. The meeting featured an all-star lineup of speakers, chief among whom was Chris Alexander, Canada’s minister of

citizenship and immigration. Alexander, a young, dynamic former diplomat has rocketed up the political food chain after just three years in Parliament and is considered a future leader of the conservative party. He gave meeting attendees an overview of the Harper government’s policy initiatives to tackle Canada’s skilled worker shortage. The AED Ottawa Briefing also featured presentations by lobbyists from some of the most prominent policy advocacy organizations in the country, including the CCC, Canadian Construction Association (CCA), the Canadian Council of Chief Executives, and the Canadian Association of Petroleum Producers. A presentation by Ontario’s Ministry of Economic Development, Employment, Infrastructure about provincial road, bridge, and water construction issues rounded out the program. A consensus emerged that day around a basket of dealer public policy priorities. It’s no surprise Canadian dealers consider workforce the top priority. Ninety percent of members who responded to AED’s recent Canadian Public Policy Survey said they had trouble over the last two years finding technicians. That reflects a broader problem in Canada. Construction industry employment is growing 50 percent faster than Canada’s population and over the next 15 years, experts project Canada’s labor force will fall 4.5 million workers short of what’s need to maintain current economic growth rates. Pressuring the government to improve the immigration process and apprenticeship policies are top industry priorities.

As in the U.S., transportation and water infrastructure construction are major equipment market drivers. However, infrastructure also facilitates two other big markets for Canadian equipment dealers: mining and energy extraction. Canada is a heavy natural resource exporter and the existing infrastructure (roads, pipelines, export terminals, etc.) is simply inadequate to allow the nation to capitalize on current opportunities. Last year, the current government launched a new $53 billion/10year Building Canada Plan to start addressing the problem. But it’s clear the provinces and private sector are also going to have to step up and do more to invest. AED members can play an important advocacy role at all levels of government. Finally, Canada’s tax code uses outdated declining balance rules that draw out equipment cost recovery periods indefinitely and ensure machinery is never fully depreciated. The construction industry is pressuring the government to change the rules to allow purchasers to more rapidly write off equipment costs. Ottawa Briefing attendees agreed that changing the rules would encourage new machinery purchases and improve cash flow for dealers and customers alike. The next federal budget cycle and upcoming Canadian elections present important opportunities for AED and its members to make these issues top priorities for elected officials. Look for more activity on the Ottawa front in the months ahead. CHRISTIAN KLEIN (caklein@aednet.org) AED’s vice president of Government Affairs. He can be reached at 703-739-9513.

December 2014 | Construction Equipment Distribution | www.cedmag.com | 67


New & Improved

Kubota’s All-New R30-Series Wheel Loaders Low-noise cab plus a wide variety of attachments are available Kubota Tractor Corp. debuted its R30-Series Wheel Loaders including the R530 and R630 models, adding more features and power. The R530 is the most compact of the new R30-Series. Featuring a 51 horsepower engine, the R530 is larger in size than the prior model with a larger bucket and a maximum bucket breakout force of 7,761 pounds. The R630 is Kubota’s first entry into the 60-80 horsepower range, raising the standard for Kubota wheel loader performance, and opening up new markets and extended applications. With a 64.4 horsepower engine, the R630 delivers a maximum bucket breakout force of 10,415 pounds. Both models are available with ROPS / FOPS certified canopy or new air-conditioned cab. Kubota’s versatile R30-Series offers strength, comfort, and superior operator benefits. Each model has a highquality air-conditioned cab, wider entrance for maximum operator space, full suspension seat, and improved visibility. The cab offers lower noise levels, and a lower cab height allows Kubota’s R30-Series wheel loaders to fit in tighter spaces and under eaves. Both R30-Series models are equipped with a hydrostatic transmission (HST), and the R630 features an E-HST (electronic) transmission with four

modes – normal mode, attachment mode, power and Ecomodes. Normal mode is compatible with everyday load and carry operations. In attachment mode, the operator can independently control travel speed from flow to the attachments. To save on fuel, Eco-mode conserves fuel up to 15 percent over other modes, while power mode exchanges travel speed for an increase of about 40 percent in traction power to excavate or attack a hard packed pile with ease. The new R30-Series expands attachment selection with a new hydraulic skid-steer-style quick coupler and a hydraulic Euro-style coupler. A wide variety of Kubota attachments are available for both models. The R30’s hybrid link system provides the best features of the parallel link system and the Z-bar link system, enhancing pallet fork operation, and allowing Kubota customers to enjoy exceptional breakout force to power through tough applications. For more information visit www.kubota.com

Sandvik Launches the New QA441 ‘Doublescreen’ Sandvik Construction is proud to announce the launch of the new QA441 Doublescreen. This latest addition to the Premium range has been upgraded to encompass the many product refinements of the larger QA451 triple deck version in order to improve operation, efficiency and ease of maintenance. New features on the QA441 include a color-coded push button control system with sequential start-up for ease of operation as well as an updated feeder hopper and feeder drive system for increased throughput. To speed-up screen media changes, the QA441 includes hydraulic screen separation, new wrap-around walkways, a newly designed access ladder, optimized screen drives and hydraulic raise / lower facility on the main conveyor. The standard radio remote control and upgraded electrical system will also further enhance operator safety and control. Featuring the patented Doublescreen system, which is celebrating its 15th anniversary since its launch in 1999, this unique, world-class technology is a revolutionary design utilizing two high velocity screen boxes that work independently of each other; the primary screen works as a fines

extractor, while the secondary screen operates as a grader. Doublescreen advantages over competing products include greater material control, greater adjustability, increased accuracy and higher screening efficiencies, making this unit ideal for producing massive volumes of high specification products, without compromising on productivity. The QA441 is therefore ideal for large scale aggregates producers but lends itself to many applications including iron ore, topsoil, recycling, minerals, coal, sand and gravel. For more information visit www.sandvik.com (continued on page 70)

68 | www.cedmag.com | Construction Equipment Distribution | December 2014



New & Improved

Atlas Copco Reveals Streamlined Hydraulic Breaker Attachment Line Atlas Copco’s ES Range of hydraulic breaker attachments is an economical and userfriendly option for general construction projects and light demolition. According to the company, the compact, ES hydraulic breakers are easy to maneuver into tight spaces and provide good visibility, which speed up day-to-day construction, landscaping and renovation jobs. The new ES Range includes three models, the ES 60, ES 70 and ES 80. These models are remarkably narrow to promote good visibility and handling on worksites. The slim design also results in faster cleanup. For example, operators can cut narrow and precise trenches for plumbing installation applications without removing excess soil to accommodate the breaker’s size. The ES breakers feature Atlas Copco’s exclusive, solid body construction that combines percussion and mounting components in one uniform structure. This eliminates the need for external

fasteners, which allows rental center mechanics to quickly and easily replace worn bushings and seals, resulting in fast turnaround times for repairs and maintenance. A central lubrication point provides quick and easy access for greasing the breaker. The breakers also feature full-length floating bushings to ensure grease fully coats bushings and tool steel to minimize wear. The breakers enhance productivity with a nitrogen-gas assist system that works with the units’ hydraulic oil to accelerate the breakers’ pistons and achieve impact rates as high as 1,300 beats per minute. The three ES breakers attach to a wide range of carriers in weight classes that range from nearly 6,400 to over 26,000 pounds. Operators can use the breakers in conjunction with Atlas Copco’s tool steel, such as a moil point, chisel or blunt, to break through a variety of materials. For more information visit www.atlascopco.com

Please visit us in CONDEX Booth 711 70 | www.cedmag.com | Construction Equipment Distribution | December 2014


Workforce

heavy equipment technician programs and careers, which are viewed as blue-collar and thus not nearly as desirable as a four-year college. That It’s an organization that has some notion has led to the present shortage power within the heavy equipment of technicians. industry. Personally, for me as a profes“We are fighting the battle on sor, it helps to keep me connected with image and perception,” said Lintow. what other schools are doing and it “You have to persuade teachers and allows us to see best practices.” parents – and identify kids who have Those connections are important if natural talent and ability. A lot of these you’re going to stay current with the kids are told if they don’t go to fourconstant changes in the industry, said year college you’re a loser.” Marohl, who also volunteers on both Changing that perception needs to teams for The Foundation. start with counselors and parents, said “Equipment and technology change Steve Rayburn, program head of Diesel at a pace that is impossibly hard for Technology Programs at the College of schools to keep up with,” he said. “If Western Idaho. we are not communicating with the “I think we’ve done a disservice in industry to be current in what we are the advising arena for students,” he teaching we will soon be outdated and said. “You can send every gradunot meeting the needs of industry,” ate to a four-year college and even he said. “Industry partnerships with more. At the end of the day, only 20 schools are a way of bridging the gap percent of the jobs available require to help in this area.” bachelor degree or higher; 60 percent is skilled trade. Education needs to align itself toward jobs. Our programs Perception is Not Reality are targeted toward employment. Another aspect of The Foundation’s We have placed 100 percent of our mission is to change the perception of (“Foundation’s Work – and Volunteers – Are The Real Deal” continued from page 57)

graduates – even during the recession.” The effort to end the negative stigma may already be working, Hammond said. “What has changed for us is that the students, being in an associate degree program, show they have the ability for educational upkeep,” Hammond said. “I think these guys certainly enjoy bluecollar type of work. The students we are getting like that. The career path has changed the way Mom and Dad look at it. We have seen growth in the program. I’ve talked to a lot of instructors, and their numbers are strong. I think the interest in being a technician has been a popular one lately. This is a good living.” LORI TOBIAS is a journalist of more than 20 years, including time at the Rocky Mountain News as a columnist and feature writer and 10 years at The Oregonian. She currently freelances for numerous publications from her home on the Oregon Coast. She can be reached at ltwriter0815@gmail.com.

ADVERTISERS’ INDEX Arctic Snow & Ice Control, Inc. . . . . . . . . . . . . . . . . . . . . . . 55 BidSpotter.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 BOKF Equipment Finance Inc. . . . . . . . . . . . . . . . . . . . . . . . 47 CDK Global Heavy Equipment, formerly PFW . . . . . . . . . . . . 1 CDK Global Heavy Equipment, formerly PFW . . . . Cover Wrap Direct Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 38 DIS Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 e-Emphasys Technologies, Inc. . . . . . . . . . . . . . . . . . . . 36-37 EPG Insurance, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Glynn General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 50 HKX, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Hydrema Exports A/S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Hyundai Const. Equip. USA Inc. . . . . . . . . . . . . . . . . . . . . . 33 IHI/Compact Excavator Sales LLC . . . . . . . . . . . . . . . . . . . . . 70 IMEX Management, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Infor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Knapheide Manufacturing Company, The . . . . . . . . . . . . . . 41

Kobelco Construction Machinery . . . . . . . . . . . . . . . . . . . . 51 LayMor Sweepers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Leading Edge Attachments . . . . . . . . . . . . . . . . . . . . . . . . . 39 Loftness Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Lowe Manufacturing Company, Inc. . . . . . . . . . . . . . . . . . . 18 Okada America, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Pierce-Pacific Manufacturing Co. Inc. . . . . . . . . . . . . . . . . . 35 Ritchie Bros. Auctioneers . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SANY Heavy Industry Co., LTD . . . . . . . . . . . . . . . . . . . . . . IFC Sentry Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Solesbee’s Equip. & Attachments Inc. . . . . . . . . . . . . . . . . . 69 Stewart-Amos Equipment Co. . . . . . . . . . . . . . . . . . . . . . . . 11 Strickland MFG, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Unified Purchasing Group . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Wells Fargo Equipment Finance. . . . . . . . . . . . . . . . . . . . . . 15 XAPT Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OBC XL Specialized Trailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2013 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate — $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523 December 2014 | Construction Equipment Distribution | www.cedmag.com | 71


Dealer Data

Construction Starts in September Climb 10 Percent New construction starts in September advanced to a seasonally adjusted annual rate of $604.1 billion, according to McGraw Hill Construction. Year-To-Date Construction Starts Unadjusted Totals, In Millions $

Monthly Construction Starts Seasonally Adjusted Annual Rates, In Millions $ September 2014

August 2014

% Change

$604,125

$550,551

+10

Nonresidential Building Residential Building Nonbuilding Construction TOTAL Construction

Source: McGraw-Hill Construction, www.construction.com

Nonresidential Building Residential Building Nonbuilding Construction TOTAL Construction

9 Mo. 2014

9 Mo. 2013

% Change

$419,520

$398,546

+5

Source: McGraw-Hill Construction, www.construction.com

Monthly Sales Volume by Original Equipment Cost with Recovery %

This graph illustrates sales of used rental fleet by the major North American rental equipment companies for the last 24 months. Each month’s equipment sale volumes are expressed as a percentage of the total original equipment cost (“OEC�) sold in the highest volume month, with December 2013 representing 100 percent, (e.g., total OEC sold in June 2013 was approximately 60% of total OEC sold in December 2013). Actual sale $ volume is illustrated as the blue component of each bar in the graph. The recovery (i.e., sales $ as a percentage of OEC sold) is indicated within the bar for each month (e.g., June 2013 sales $ recovery was 52.6% of total OEC sold).

Source: Rouse Asset Services. Contact Gary McArdle at gmcardle@rouseservices.com, (310) 363-7520

The Dirty Dozen - 8&& ÀOLQJV RQ HDUWKPRYLQJ XQLWV Equipment Description Articulated Dump Trucks

SEP 13

OCT 13

NOV 13

DEC 13

JAN 14

FEB 14

MAR 14

APR 14

MAY 14

JUN 14

JUL 14

AUG 14

Grand Total

82

70

69

120

65

77

119

160

143

134

116

115

1,270

352

362

309

435

384

197

327

403

433

495

401

358

4,456

13

7

4

14

13

4

6

19

9

27

40

11

167

778

767

605

965

799

505

678

992

941

1,011

846

809

9,696

35

39

16

37

9

19

20

24

26

32

28

38

323

Mini Excavators

815

909

702

996

1,028

468

723

1,132

1,222

1,244

1,082

Motor Graders

105

121

97

110

83

85

125

107

134

125

89

113

1,294

6

6

1

6

3

8

3

16

13

1

8

14

85

Skid-Steer Loaders

912

1,238

1,319

1,632

1,115

723

879

1,112

1,126

1,084

791

716 12,647

Tractor Loader Backhoes

366

369

290

418

431

246

412

399

390

401

461

314

4,497

Wheel Loaders < 80 HP

78

86

94

131

134

70

105

108

109

96

103

91

1,205

Wheel Loaders > 80 HP

518

590

563

865

552

373

507

671

661

789

594

526

7,209

4,616 2,775

3,904

5,143 5,207

5,439

Crawler Dozers Crawler Loaders Excavators - Crawler, Hydraulic Excavators - Wheeled, Hydraulic

Scrapers - Conventional

Grand Total

4,060 4,564 4,069 5,729

Supplied by Equipment Data Associates, Charlotte, N.C.

72 | www.cedmag.com | Construction Equipment Distribution | December 2014

958 11,279

4,559 4,063 54,128


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