October 2012
www.cedmag.com
Cutting Through the Campaign Noise Duck the mudslinging and dig down to something that really matters: voting records. Find how your members of Congress voted on AED’s top legislative issues – it’s all here.
Plus: n What could a vet do for you? n Hazmat heartburn – one dealer’s personal story n Where’s Waldo, the nonperforming sales wonder? Since 1920 Official Publication of
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Contents
Editorial Team Executive Editor and Director of Programs Kim Phelan
october 2012
kphelan@aednet.org
Vol. 78, No. 10
Contributing Editor
Features
Joanne Costin pr@aednet.org
Control your gizmos – they’ve got a lot to offer as long as you’re in charge.
from the cover
Editor’s Note 7
To South Dakota and beyond!
Graphic Production eva Belmonte
On the Numbers 53
design@aednet.org
Gorilla 1, meet Gorilla 2. And here’s your new rental habitat.
eva@neggie.net
Columnists
Business Outlook 55
Garry Bartecki
Nothing dramatic, but a construction bulb begins to burn brighter.
AED Vice President of Finance
Christian Klein AED Vice President of Government Affairs and Washington Counsel Eli Lustgarten ESL Consultants Jerry Randecker & Chris Sitter Jordan-Sitter Associates
Columns
From the Chairman 5
Tips for Tapping into the Veteran Workforce 22 So many positive attributes come with hiring a veteran of the armed services or Reserves – just be aware of your full commitment.
Ron Slee
Cutting Through the Campaign Noise 28
Business owners like you shoulder a burden to choose what’s best for family, business, and employees – AED shows you how senators and representatives voted on top equipment industry issues.
Aftermarket 57
Standard rates and flat rating: You can run but you can’t hide.
View From the Hill 59
Proposed tax hike takes aim at small business.
departments Inside AED 8
R.J. Slee & Associates
Advertising Contacts
Groundwork 13
Industry Beat 14
Play It Safe 20
dgordon@aednet.org
Advertisers’ Index 63
Advertising Sales Manager
Dealer Data 64
Vice President–Sales/ Publisher David W. Gordon 800-388-0650 ext. 334
Albert J. Ramirez 800-388-0650 ext. 311
Plus: Forum Photo Recap 10
aramirez@aednet.org Production Manager martin cabral 800-388-0650 ext. 313
Hazmat Heartburn and How to Avoid It 40
mcabral@aednet.org
600 22nd Street, Suite 220 Oak Brook, IL 60523 630-574-0650 fax 630-574-0132 www.aednet.org
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A small-business equipment dealer shares the story of a shipping debacle in order to spare other AED members a similar, expensive plight.
Nowhere to Hide: Surviving the Recovery by Deploying an Efficient Sales Force 46 The loss of a poor salesman is offset by the performance of the good ones – until now. Are you willing to blow their cover?
Highlights from the 2012 AED/Infor Executive Forum
Got Techs? 44
What the recruitment scene looks like when dealers don’t participate.
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From the Chairman President & CEO TOBY MACK Associated Equipment Distributors Oak Brook, Ill.
Electronic Gizmos Have Taken Over
Executive Vice President & COO Robert Henderson Associated Equipment Distributors Oak Brook, Ill.
Sure they have benefits, but tech tools do have a way of controlling us rather than the other way around.
Officers
Chairman Lawrence F. Glynn CMW Equipment, St. Louis, Mo.
Vice Chairman Mike Quirk Wagner Equipment Co., Aurora, Colo. Sr. Vice President Timothy J. Watters Hoffman Equipment Co., Piscataway, N.J. Vice President Garry Frelick Douglas Lake Equipment, Langley, BC Vice President Don Shilling General Equipment & Supplies, Inc. Fargo, N.D. Vice President of Finance Michael D. Brennan Brandeis Machinery & Supply Co., Louisville, Ky. Past Chairman Dennis E. Kruepke McCann Industries, Inc., Addison, Ill.
At-Large Directors Paula Benard C.N. Wood Co., Inc. Woburn, Mass. Rick Dahl Metrolift, Inc. Sugar Grove, Ill. Gregg R. Erb Erb Equipment Company, Inc. Fenton, Mo. Dennis J. heller Stephenson Equipment Inc. Harrisburg, Pa. Mike Rooney Thompson Tractor Co., Inc. Tarrant, Ala. Michael J. Savastio Groff Tractor & Equipment, Inc. Mechanicsburg, Pa.
Regional Directors Bruce A. Bowman, Upper Midwest Reg. Star Equipment, Ltd Des Moines, Iowa
Rick Van Exan, Eastern Canada Reg. Toromont Industries Ltd. Concord, ON Patrick McConnell, West Reg. Clyde/West, Inc. Portland, Ore. Mark Romer, Southeast Reg. James River Equipment, Inc. Ashland, Va. Jeffrey Scott, Rocky Mountain Reg. Intermountain Bobcat Salt Lake City, Utah Gerald W. Tracey, Northeast Reg. Tracey Road Equipment Inc. East Syracuse, N.J. gary D. Vaughn, South Central Reg. OCT Equipment, Inc. Oklahoma City, Okla.
By Larry Glynn
In 1977, when I was hired by Cummings, McGowan & West (we now do business as CMW Equipment) as a field salesman, the sales manager handed me a phone card and told me he expected me to find a public phone and call in at 10, 2 and 4 every day. When you showed up at the office, the secretary would hand you a pile of phone messages on pink slips. The customers or manufacturers expected a return call sometime within the next day or two. Some time in the late 1980s, I got my first car-mounted mobile phone with the little antenna you had to take off every time you went through the car wash. In the mid 1990s, I got my first laptop, carried it around with me on all my travels but never really used it because the content and interface with others wasn’t there yet. Then came the truly mobile phones for every salesperson with the costs coming down year after year. And now we have evolved into a whole new world. We have iPhones, Blackberries, laptops, and tablets. The question now becomes, How do we control all of this instant communication and the new level of expectation? At least now you can pretty well figure out where you stand with your customers. If you are lucky enough to have their mobile numbers, do they answer your calls? Respond to your texts? How long does it take before they call you back, or do they call or text you back at all? When customers or manufacturers want to contact you, the response time they expect is sometimes unreasonable. The customer doesn’t get the equipment from you on a rental because you didn’t get back to him or her within the hour? The younger the person you are dealing with the more unreasonable the response time expectation might be. Unfortunately, it may take some time in the business for them to learn that doing things right is better than doing things fast. That goes for salesmen, too – I have had younger reps who believed that they were doing their
job by spending most of their time reading or sending e-mails or electronic quotes. They are no longer employees of CMW. The manufacturers and other service suppliers have gone way overboard sending out notices and correspondence to their dealers. There is no way I can read all the e-mails I get every week, nor do I believe many of my cohorts who are successful spend that valuable selling time looking at the screen. I emphasize with our sales force the only time that really matters in the winning sales process is the time spent in front of the customers or on their jobs. I try to spend time with at least one customer every work day that I can. Let’s not forget the liability of reading e-mails and texting while driving between sales calls – all in the name of trying to make those important calls and keep up with the electronic communications. We have all done it. We instructed everyone not to do it, but it goes on. I pray no one has an accident or gets hurt because of these temptations of the gizmos. And thank goodness for rumble strips along the shoulders of the highways! What about the content, and what are your employees really doing with all this technology? Personal phone calls, personal e-mails, jokes, dirty pictures, not to mention fantasy teams or March Madness. How can management possibly control content of all the company-supplied electronics? The world is changing and we have to keep up. I don’t claim to have all the answers to these questions but I have to admit, the best thing about the Blackberries and iPhones is being able to text and read e-mail during boring meetings. The next meeting you attend, see what the attendees think of the program by which way their faces are looking – out or down.
Larry Glynn (larryg@cmw-equip.com) is President of CMW Equipment in St. Louis, Mo.
October 2012 | Construction Equipment Distribution | www.cedmag.com | 5
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Editor’s Note
A CED Road Trip and a South Dakota Soap Box Introducing my new Native American nickname: ‘Likes to Talk a Lot.’ By kIM pHELAN
I like get out of the office now and then, and stretch my editorial limbs a little – and in September, I hit the dealer meet-and-greet jackpot. First, I was privileged to visit with a number of members during Executive Forum. I believe we generated some buzz with our economic and market analyses, our political assessments, plus an array of provocative discussions, including perspectives on how North America will cope with Tier-4 equipment once it enters the used market. Between you and me, I’ve been told that a major OEM is solving the anticipated dilemma with a plan for de-tiering kits that will enable dealers to prepare T-4 equipment for export to lower-tier nations – talk about a necessary evil! Then, I attended a dinner meeting of the Illinois Equipment Distributors (IED), learning, with them, about the need for more careful attention to the rental contract, and separately, about the latest target for predatory attorneys: retirement plan fiduciaries. So serious are these issues that both topics will be further explained at the AED Summit in January, where all of you can benefit from understanding how to minimize your risks. A Summit convention brochure is on its way to your desk, even as you peruse the magazine now. Next, I got on the road and visited three dealer members in Des Moines, Iowa: Logan Contractors Supply; a branch of Road Machinery Services; and the headquarters facility of Star Equipment. Thanks, you guys, for so hospitably welcoming me and giving me some insights into your unique, diversified, and profitable operations! The reason I was passing through
Des Moines is that I was heading important directions for the United – yes, this is the kind of dedicated States. Call me crazy, but I tend to editor I am – to none other than pay attention to informed industry Yankton, S.D., to help road-buildingeconomists and analysts, and the equipment manufacturer KPI/JCI/Astec picture they paint today is, frankly, celebrate its final Road Connection not one picture at all – but two. rally at the Kolberg Pioneer plant, Scenario 1 is positive construction where they graciously tolerated a few industry turnaround and upward remarks from yours truly about the growth; Scenario 2 is more sluggish two-year federal highway reauthoriwallowing, the “change” we got and, zation, MAP-21. I had never been to heaven help us if we get another South Dakota before, and so I drew helping. I’ll leave it to your astute an industry comparison to someone powers of deduction to decode what most people commonly associate I’m trying to say here. with that state: Crazy Horse. AED (and that includes me) urges An aside: I shared my fascination you to remain vigilant in your engagewith some of that warrior’s female ment with elected officials, now esperelatives, whose names I most sincerely cially when candidates are actually envy – Red Eagle Woman, for exlistening! Please don’t misunderstand ample; Red Leggins (whatever that me when I (from Chicago) ask: Can means); Kills Enemy; and my personal you multiply your own vote? (legally!) favorite, They Are Afraid of Her. But I believe, indeed, you can. Do your alas, had my parents been attuned to kids “get” this stuff? Do your emNative American monikers back in the ployees understand the facts and Middle Ages when I was born, they’d what’s at stake? If we keep politics have probably selected another name taboo, get ready for some more bad from the Crazy Horse family tree: like business juju. White Cow! I closed my Yankton monologue But I digress. with a reminder about this so-called Why did I weave Crazy Horse into Fiscal Cliff we’ve all been hearing my little speech? Because he was about. I haven’t fallen off a cliff lately, both fierce and focused in battle – but it doesn’t take a genius to figure and my friends, if ever there were a out that this is something that hurts time when we needed a figurative – a lot. Please take a gander at the model for our own political (and voting records of your members of business) behavior, I say now is the Congress (provided here in this issue), time, and he strikes me as a darned vote your conscience, and please good metaphor. Besides, I’m a trained don’t be bashful about persuading journalist, so it’s all good. others to hit the polls responsibly. We, too, must prepare to be fierce Thanks for reading, and voting. and focused in how we engage in Kim Phelan (kphelan@aednet.org) the democratic political process and is the executive editor of Construction with the candidates, both presiEquipment Distribution and director of dential and congressional, who are programs for AED. going to determine some frightfully October 2012 | Construction Equipment Distribution | www.cedmag.com | 7
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Inside AED
The Future of Affordable Energy: Straight Talk from an Energy Insider AED Summit keynote speaker John Hofmeister offers new solutions to bring about investment in energy infrastructure. Built for 200 million people, the current U.S. energy infrastructure is now supporting 300 million people. Out of date and in need of rebuilding, existing systems are in need of solutions now, according to this year’s Summit keynote speaker John Hofmeister, former president of Shell Oil, author, and founder of the not-for-profit organization Citizens for Affordable Energy. Hofmeister will discuss viable solutions and the path for reaching them. Having worked in energy-related John Hofmeister industries for 35 years, he will assess U.S. energy policy from an insider’s perspective. How will we avoid impending lines at the gas pump and recurring blackouts? “For us to succeed in the 21st century we need every form of energy including coal, oil, wind, nuclear, natural gas, solar, biofuels, hydropower, geothermal and hydrogen. We can’t keep the lights on by 2040 if we don’t seriously transform the existing system,” said Hofmeister. Improving infrastructure and applying new alternatives for moving energy from producers to consumers is vast in scope. But Hofmeister believes educating citizens, business leaders and politicians with real data and a can-do determination will move the mountains. “We are living on the cusp of unprecedented prosperity,” said Hofmeister. “The capital investment to rebuild the U.S. energy system for the 21st century will require not billions but trillions of dollars over the next 20 or 30 years.” The money will come from private investors. “Money can be shifted over to invest in the kinds of projects needed to rebuild the energy system,” explained Hofmeister. Through his organization, he wants to share information on the reality we face in a nonpartisan, nonpolitical way. He believes a citizen democracy is strong when real data invigorates people to act on what they know. Why not let the market determine what the best fuels are based on economics? Oil’s status as a strategic commodity stems from its virtual monopoly over transportation fuel. How can the market provide viable choices that are affordable, efficient and sustainable for the short- and long-term future? He doesn’t think the answers will come from politicians. “The problem is that government has taken over the industry’s ability to do what the market needs.” A better plan can come through grass roots engagement. With the energy industry being a lubricant to the economy, everyone is vested. An open fuel standard can create new markets and jobs when people understand its benefit and are galvanized to act. Attend AED Summit to learn more about Hofmeister’s practical, easy-tounderstand advice on all forms of energy, and solutions you wouldn’t expect from a former oil executive. Visit www.aedsummit.com.
Proposed New Members TVH Parts Company Olathe, KS
CNH Capital Insurance Agency, Inc. New York, NY
This list is published each month as required by AED bylaws. Comments on the applicants should be directed to AED President Toby Mack at 800-388-0650 ext. 326 or jtm@aednet.org.
Summit Schedule Tuesday, Jan. 15
7 a.m. - Evening • Hospitality Suites Noon - 5 p.m. • Registration 8:30 - 10:30 p.m. • The AED Foundation’s Cabaret Night Benefit (separate ticket required)
Wednesday, Jan. 16 7:15 - 8 a.m. • Continental Breakfast 8 - 10 a.m. • Welcome/General Session 10 a.m. - 3 p.m. • CONDEX 10:30 - 10:45 a.m. • CONDEX Centerstage* 11:30 - 11:45 a.m. • CONDEX Centerstage Noon - 1 p.m. • Lunch in CONDEX 10 a.m. - 5:30 p.m. • Hospitality Suites 12:15 - 1 p.m. • CONDEX Centerstage 1:30 - 1:45 p.m. • CONDEX Centerstage 2:15 - 2:30 p.m. • CONDEX Centerstage 3 - 5:15 p.m. • Concurrent Seminars 5:30 - 7 p.m. • Welcome Party
Wednesday, Jan. 16 6 - 7 a.m. • 1st Source Bank Fun Run 8 - 10 a.m. • Chairman’s Inaugural Breakfast 10 a.m. - 6 p.m. • Hospitality Suites 10 a.m. - 2 p.m. • CONDEX 10:30 - 10:45 a.m. CONDEX Centerstage 11:30 - 11:45 a.m. CONDEX Centerstage Noon - 1 p.m. • CONDEX Centerstage 1:15 - 1:30 p.m. • CONDEX Centerstage 2 - 3:15 p.m. • Economic Keynote 3:30 - 5 p.m. • Concurrent Seminars 6 - 9 p.m. • AED’s Viva Las Vegas Party featuring the Ritchie Bros. Reception and Live Auction, plus live music (Frank & Dave) and the MTU Ice Cream Parlor *New for 2013 - CONDEX Centerstage is a new, short educational venue where you can get up close and personal with 2013 Summit speakers. Attendees can take advantage of bonus content and preview the afternoon sessions without leaving the CONDEX floor..
8 | www.cedmag.com | Construction Equipment Distribution | October 2012
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Inside AED
AED/Infor Executive Forum Called Best Yet A full gamut of issues confronting equipment dealers today was addressed during the day-and-a-half program in September, which also provided executives with numerous peer and supplier networking opportunities.
Ed Sullivan, chief economist at Portland Cement Association, painted two recovery scenarios based on election outcome.
Larry Kaye, Script International, showed how rental contributes to the bottom line in high-profit dealerships.
Attorney Jim Hendricks warned what type of employee behaviors are now considered protected concerted activity by the NLRB.
Congressman Peter Roskam (R-Ill.) explained the impending “Fiscal Cliff” if Congress does not act.
AED Vice President of Government Affairs Christian Klein and AED President & CEO Toby Mack brought Rep. Roskam’s remarks into focus, discussing AED priorities and necessary actions.
AED’s 2012 Chairman Larry Glynn welcomed attendees and reminded them about the value of the upcoming Leadership Academy for future dealer leaders.
Frank Manfredi (left) moderated a panel about Tier-4 equipment and the future of exporting used machines. He was joined by (l-r) Tom Rhein, Rhein Associates; Neal Winberg, Kiewitt; and Peter Blake, Ritchie Bros.
Forum moderator Patrick Balson, Lincoln Professional Group, closed the program with important reminders about cash flow.
10 | www.cedmag.com | Construction Equipment Distribution | October 2012
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Ed Steenman gave an encore presentation about savvy use of Internet marketing, giving executives the big picture on the “Zero Moment of Truth.”
Entertaining and educational, TV political analyst, author and speaker Paul Lisnek discussed negotiation tactics and also presented a luncheon keynote on the presidential election.
mark your
calendar
For information on any of these upcoming events, visit www.aednet.org or call 800-388-0650. Oct. 2-3 - Test Drive: The Business War Game for Distributor Operations Presented by Jeff Lefebvre/David Semb - PriSim Business War Games | Oak Brook, Ill. Oct. 11 - Webinar: Managing and Motivating Your Employees in Today’s New Reality 10-11:30 a.m. CDT | Presented by Christine Corelli Oct. 11-12 - CFO Conference for Financial & Nonfinancial Managers: Understanding the Rental Market Oak Brook, Ill. Oct. 15 - Webinar: Parts Management - Tele-selling 11 a.m.-Noon CDT | Presented by Ron Slee Oct. 15 - Webinar: Parts Management - Basic Inventory Control | 2-3 p.m. CDT | Presented by Ron Slee Oct. 16 - Parts Management - Warehousing 11 a.m.-Noon CDT | Presented by Ron Slee Oct. 16 - Webinar: Parts Management - Pricing 2-3 p.m. CDT | Presented by Ron Slee Nov. 5-6 - Parts Management Unit I: When It’s Right (WIR I) Presented by Ron Slee | Chicago
Red Cavaney, ConocoPhillips, answered many questions about U.S energy independence and shale oil development.
Nov. 7-8 - Service Management Unit I: When It’s Right (WIR I) Presented by Ron Slee | Chicago Nov. 12-13 - Parts Management Unit III: Realizing Market Potential (RMP) Presented by Ron Slee | Palm Springs, Calif. Nov. 14 - Service Management Unit III: Realizing Market Potential (RMP) Presented by Ron Slee | Palm Springs, Calif. Nov. 13-15 The Four Pillars Of The Sales Profession for Dealers Presented by Ron Slee | Dayton, Ohio
Market analyst David Raso, ISI, gave his forecast using strong data from the dealer perspective.
Dec. 3 Webinar: Parts Management - In-store Merchandising 11-Noon CST | Presented by Ron Slee Dec. 3 Webinar: Parts Management - Purchasing and Expediting 2-3 p.m. CST | Presented by Ron Slee October 2012 | Construction Equipment Distribution | www.cedmag.com | 11
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10/1/12 6:00 PM
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Groundwork Officers
Chairman Chris Pera Eastern HighReach Company, Inc. Horsham, Pa.
Vice Chairman A. Roy Kern Equipment Corporation of America Coraopolis, Pa. President Bob Henderson The AED Foundation Oak Brook, Ill. John Crum Treasurer Wells Fargo Equipment Finance, Inc. Pittsburgh, Pa. Immediate Past Chairman Walter Berry Berry Companies, Inc. Wichita, Kan. AED Board Representative Don Shilling General Equipment & Supplies Inc. Fargo, N.D. Executive Director Steve Johnson The AED Foundation Oak Brook Ill.
Directors
Gary Bridwell Ditch Witch of Oklahoma Edmond, Okla. Mike Festing-Smith NORTRAX, Inc. Tampa, Fla. Mike Hayes Komatsu America Corporation Rolling Meadows, Ill. Michael Hinrichsen Caterpillar, Inc. Peoria, Ill. Timothy Kramer Kramer Ltd. Regina, SK Dr. Wayne Longbrake Former Dean, Penn. College of Technology Williamsport, Pa.
AED Foundation Presents Cabaret Night Benefit Sentry Insurance sponsors a new event at AED’s 2013 Summit. Start your Summit experience at the Cabaret Night Benefit for The AED Foundation on Tuesday, Jan. 16, 2012, at the Las Vegas Hotel and Casino! Sponsored by Sentry Insurance, this event will provide nonstop entertainment through the music, comedy and impersonations of The Scintas. Sit back and relax with your customers, employees and friends as you enjoy are one of the most successful acts on the Las Vegas strip. From the moment they step on stage, you will recognize the value of their truly one-of-a-kind performance. By the time their show ends, audiences embrace The Scintas with laughter, applause and genuine awe. With a tremendous capacity to entertain and surprise, the typical Scintas show is anything but typical. You might think you’re buying a ticket to see The Scintas (and you will hear great music and hilarious comedy), but you’re also going to see Dino and Jerry, Johnny Mathis, Frank Sinatra, Ray Charles and a slew of other famous stars, singing the songs you love.
The Sixth Annual AED Foundation & Ritchie Bros. Auctioneers Live Auction Visit www.aedfoundationauction.com to view in detail the fabulous items and experiences that will be auctioned at AED’s 2013 Summit next January. See an item you can’t live without? Attend the Live Auction at the Ritchie Bros. Reception on Thursday evening, Jan. 17, in Las Vegas.
Sonja Metzler Ohio CAT Broadview Heights, Ohio Kenneth Silverman Volvo Construction Equipment Shippensburg, PA Keith Tippett Kirby-Smith Machinery, Inc. Oklahoma City, Okla. Duane Wilder Liebherr Construction Equipment Co. Newport News, Va.
Reserve a Table Cabaret Night provides a perfect entertainment opportunity for manufacturers and service companies. A table of eight priced at $1,000 is a complete entertainment package that includes VIP seating and 16 drink tickets. Individual event tickets are also available for purchase with your AED Summit registration for $95 per person. Reserve your table(s) today by contacting Rebecca Rakers at 630-468-5113, rrakers@aednet.org. All proceeds benefit The AED Foundation workforce development and professional education programs to better serve the needs of all AED members.
Donations of auction items are a great way to support The AED Foundation. To donate an auction item or for additional information, please contact Rebecca Rakers, manager of Sales and Development at 630-468-5113 or rrakers@aednet.org.
Fabulous Items and Experiences to be Auctioned at Summit • • • • • •
Exciting Adventures and Vacations Legendary Golf Trips Cutting Edge Electronics Designer Jewelry Wine Collections Executive Furniture
You can bid to win an amazing fishing trip donated by Ritchie Bros. Auctioneers
See more online at www.aedfoundationauction.com. October 2012 | Construction Equipment Distribution | www.cedmag.com | 13
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Industry Beat
Shell to Construct World’s First Oil Sands Carbon Capture and Storage Project
The technology is key to carbon dioxide reduction strategies. Shell will construct the first carbon capture and storage (CCS) project for an oil sands operation in Canada. The Quest project will be built on behalf of the Athabasca Oil Sands Project joint venture owners (Shell, Chevron and Marathon Oil) and with support from the governments of Canada and Alberta. CCS is critical to meeting the huge projected increase in global energy demand while reducing carbon dioxide (CO2) emissions, explained Peter Voser, chief executive officer of Royal Dutch Shell plc. “If you want to achieve climate change goals, CCS has to be part of the solution. We are helping to advance CCS technology on a number
Mining trucks in Ft. McMurray, Alberta, carry nearly 400 tons of material. The oil and sand is mixed with warm water and stirred to separate the oil from the sand. The heavy oil is then diluted for transmission by pipeline 493 kilometers south to the Shell Scotford Upgrader, located near Edmonton, Alberta. Quest will be one of the largest applications of carbon capture and storage (CCS) projects in the world.
of fronts around the world, but Quest will be our flagship project.” The Athabasca Oil Sands project produces bitumen, which is piped to Shell’s Scotford Upgrader near Edmonton, Alberta. From late 2015, The Quest CCS project will capture nearly one million tons per year of CO2 from the Scotford Upgrader located near Edmonton, Alberta, and transport it up by an 80-kilometer underground pipeline to a storage site north of the Scotford site. Here, it will inject it more than two kilometers underground into a porous rock formation called the Basal Cambrian Sands (BCS), which is located beneath layers of impermeable rock. Sophisticated monitoring technologies will ensure the CO2 is permanently stored. In 2011, Quest received the world’s first certificate of fitness for its storage development plan from Det Norske Veritas (DNV), an international risk management firm. To improve efficiency, up to 50 percent of project work will be done offsite at a construction yard yet to be selected. Shell will use third-party construction facilities in Edmonton, helping the continuing development of key construction capacity in the province. Large preassembled modules will then be delivered to the Shell site for installation. Both the Canadian federal and Albertan provincial governments have identified CCS as an important technology in their strategies to reduce CO2 emissions. The Alberta government will invest $745 million in Quest from a $2-billion fund to support CCS, while the Government of Canada will invest $120 million through its Clean Energy Fund. Shell has received the necessary federal and provincial regulatory approvals for Quest. Construction has begun and will employ an average of about 400 skilled trades workers over approximately 30 months.
Congressman Patrick Meehan Visits Stephenson Equipment U.S. Rep. Patrick Meehan (PA-07) toured Stephenson Equipment’s Prospect Park, Pa., facility on Aug. 6, 2012. “It’s businesses like Stephenson’s that will be affected by the tax increase slated to take place in January,” said Rep. Meehan. “The uncertainty in our tax code is really hurting small businesses and Congress needs to act to ensure we don’t raise taxes on small businesses, the backbone of our economy.” Pictured left to right: AED Senior Director of Government Affairs Daniel Fisher; Vice President Matt Essig; President Dennis Heller; Congressman Pat Meehan (R-PA); and Executive Vice President and CFO Bob Criste Photo courtesy of Construction Equipment Guide.
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Industry Beat (“Industry Beat” continued from page 14)
States Offered $473 Million for Transportation Projects Governors and other state-level policymakers must decide by Oct. 1, 2012, how they will use the $473 million in transportation funding the Obama administration released in mid-August. The funding comes from the rescission of unobligated earmarks from past appropriations bills. Every state except for Wyoming will be eligible to receive funding, which must be obligated by the end of the year. Using a formula established in an AED commissioned study by Professor Stephen Fuller of George Mason University, AED estimates the new funding could create approximately $30 million in construction equipment market opportunity.
New Fuel Standards Released for On-Road Vehicles – Underscores Need for More Sustainable User Fees to Support Highway Trust Fund New standards will increase fuel economy to the equivalent of 54.5 mpg for cars and light-duty trucks by Model Year 2025. When combined with previous standards, this move will nearly double the fuel efficiency of those vehicles compared to new vehicle. According to the Department of Transportation, the program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels. While increasing fuel economy is a laudable goal, by reducing per-mile fuel consumption the new standards will put additional pressure on the Highway Trust Fund (HTF). Gas tax and other highway user fees paid into the HTF are already insufficient to sustain current federal highway investment levels. AED is therefore urging Congress and the president to create additional HTF user fee revenues as part of the upcoming tax and budget reform debate.
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Industry Beat
SANY Debuts New Excavator Factory SANY is calling its new excavator factory near Shanghai, China, “the world’s largest and most advanced excavator factory.” The $815.5 million factory can produce an excavator a minute. It uses a computerized production-management system for maximum efficiency, managing the entire process, from raw steel plate to structural welding, to components and final assembly. Excavator structures and components are transported automatically from underground tunnels to optimize production.
AED Member Firms Among Fastest Growing in U.S. For the second year in a row, WTP Advisors, a global tax and business advisory firm was named one of the fastest-growing companies in America by Inc. magazine. In Inc. magazine’s 500|5000, an exclusive ranking of the nation’s fastest-growing private companies, WTP Advisors placed among the top 23 percent of firms. Other AED member 500|5000 honorees include Navman Wireless and Naperville-based customer experience firm, SatisfYd.
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October 2012 | Construction Equipment Distribution | www.cedmag.com | 17
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Industry Beat (“Industry Beat” continued from page 17)
In the News
Screen Machine’s Cohen Speaks at Republican National Convention
Steven Cohen, president of Screen Machine Industries, based in Ohio, addressed the nation on Wed. Aug. 29, at the 2012 Republican National Convention in Tampa, Fla.
AED Anniversary Awards
AED’s Executive Vice President Bob Henderson (center) presented a 50-year award to Riggs CAT in Little Rock, Ark. Vice President & General Manager Sean O’Keane (left) and President John Riggs IV accepted the plaque.
Power Motive, a division of Wagner Equipment Co., received its 50-year membership award – pictured left to right: Wagner Vice President of Product Support Mike Quirk, and Power Motive’s president and vice president, Bob Davis and Mac Blount.
CERF Inc. has signed a nonbinding letter of intent to acquire a private oilfield equipment rental company located in Alberta, Canada. The current management team of the oilfield rental company is expected to manage and grow the new business unit. The closing of the transaction is subject to the parties entering into a definitive share-purchase agreement, and usual closing conditions. AED has selected WTP Exchange, for the second year running, as its Preferred Provider for Like-Kind Exchange (LKE) services. WTP Exchange is an affiliate company of WTP Advisors, an award-winning global tax and business advisory firm. Under Internal Revenue Code Section 1031, no gain or loss is recognized when companies sell business property and acquire property that is like-kind. For AED members, this means that dealers that routinely dispose of heavy equipment and vehicles can realize substantial benefits from an LKE Program. The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) recently announced more than $1.5 million in grants to 22 states to strengthen and support pipeline damage prevention programs. Excavation damage is the No. 1 cause of pipeline accidents resulting in fatality or injury and can cost states millions of dollars in repair work and property damages. Since 2002, excavation damage resulted in over $190 million in property damage nationwide. Intermountain Bobcat recently opened a new 12,500-square-foot facility in West Valley City, Utah, with easy access off Hwy. 21. The building, which houses sales, administrative offices, parts and rental, features open ceilings and sustainable materials such as stained concrete floors. The service shop was built for efficiency and
comfort, with glass roll up doors and floor-to-ceiling windows to bring in natural light. Photo by Rich Fredericks. Terex has named SES, Inc. as a full line distributor of Terex compact construction equipment and Terex Fuchs material handlers. SES serves customers in the Greater Chicago area and Northwest Indiana.
Colorado Congressional Hopeful Joe Coors Visits Wagner Equipment
Wagner Equipment Co., the Caterpillar dealer based in Aurora, Colo., hosted Republican congressional candidate Joe Coors at their headquarters on Sept. 10. Coors is running in Colorado’s 7th congressional district against incumbent Democrat Ed Perlmutter. Pictured left to right: Mike Quirk, vice president of Product Support and AED’s vice chairman; Joe Coors; Bruce Wagner, president and CEO; and Scott Wagner, regional sales manager.
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Industry Beat
Genesis Attachments has appointed Murphy Tractor & Equipment Co. as its exclusive dealer for Western Missouri, Kansas, Nebraska and Southern Ohio. Murphy, one of John Deere’s largest North American construction equipment dealer organizations, is headquartered in Park City, Kan., and has 28 locations throughout the Midwestern states of Iowa, Kansas, Missouri, Ohio, Pennsylvania and Nebraska. Doosan Portable Power has named Leppo Equipment, headquartered in Tallmadge, Ohio, an authorized dealer of mobile generators and lighting systems. Leppo Equipment has branch locations in Canton, Bedford Heights, North Ridgeville, Wooster and Youngstown, Ohio. SANY has been named one of the three most innovative companies in China by “Fortune China” magazine. SANY Heavy Industry Co. jumped to the third spot from its rank of 13 in the 2011 listing. “Fortune China,” the Chinese language version of the global business magazine published by Time Inc., recently honored 25 companies for innovation. Sixteen firms were new to the list in 2012. Sullair Corporation announced that United Technologies reached an agreement with the private equity firms of The Carlyle Group and BC Partners for the purchase of Hamilton Sundstrand Corporation’s Industrial businesses, including Sullair Corporation. BC Partners and Carlyle have formed a limited partnership and will jointly oversee management of Sullair. This transaction is expected to close in the fourth quarter, upon completion of all required approvals. Atlas Copco announced a reorganization of the production of road construction equipment in Karlskrona, Sweden, to create a more competitive production unit with stronger future growth potential. The planned activities will require an investment of about
MSEK 30, and unfortunately also a reduction of the workforce. Caterpillar opened its new state-ofthe-art hydraulic excavator facility in Victoria, Texas. The 1.1 million-squarefoot operation represents a $200 million investment by Caterpillar to increase excavator capacity and production in the United States. The company has already hired about 225 new employees in Victoria, and plans to continue hiring based on demand for products made in Victoria and as it ramps up production with additional models to be produced at the new facility.
SmartEquip, Inc. has entered into an agreement with Oldcastle Materials, Inc., to join the SmartEquip Network. Utilizing SmartEquip technology will provide Oldcastle with real-time product, parts, and service support for its equipment fleet, as well as procurement capabilities to automate electronic purchasing with its suppliers. Metso has named Foley, Inc. as an authorized distributor, representing Metso crushing and screening products for the contractor and recycling customer segments in the state of New Jersey. Vijayakumar (Vijay) Palanisamy has been appointed product marketing manager for Atlas Copco’s Road Construction Equipment in the U.S. He will be responsible for the marketing strategy and product and product development Vijay Palanisamy objectives for the Dynapac rollers and paver product lines throughout North America.
Ross Gjerde was named product line manager for top hammer equipment at Atlas Copco Construction Mining Technique Ross Gjerde USA. Ray Shelor has accepted the position of product line manager for downthe-hole (DTH) equipment at Atlas Copco Construction Mining Technique USA, effecRay Shelor tive immediately. Both Gjerde and Shelor will report directly to Gene Mattila, business line manager, rock drilling tools. Justine Manning has been appointed to the position of CRS Inventory Control and Customer Support at Atlas Copco Construction Equipment, Commerce City, Colo.
Justine Manning
Terex Utilities has appointed Don Anderson as the company’s vice president and general manager. Anderson will have overall responsibility for Terex Utilities including equipment and parts, sales, product development, manufacturing and aftermarket support, as well as supporting functions. He will also share responsibility with Jacob Thomas, president of Terex Latin America, for the Terex Ritz business based in Brazil. Jim Lohan will serve as the new vice president of Sales and Marketing. Astec Industries, Inc. announced that Dr. J. Don Brock has resigned from the role of president but will continue to serve as chief executive officer. Appointed to the position of president and chief operating officer is W. Norman (Norm) Smith. Most recently Smith served as group vice president, Asphalt, a title which Benjamin Brock now holds. Richard J. Dorris was named Group Vice President, Energy.
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Play It Safe
Professional Protocols in the Service Department Protect Customers and Your Company Inspect and document before any machine leaves the shop. By Randy Dombrowski
Running a first-class service department presents numerous challenges – hiring and maintaining qualified staff, preventing workplace injuries, managing field service work, staying profitable and keeping your customers happy. One key item often overlooked with all those responsibilities is strong recordkeeping and proactive service practices. When a customer brings in equipment for repair, your service team has the duty to not only complete the needed repair, but to verify the equipment is free of other recognized hazards and is safe to operate. Consider the following hypothetical case: The Event A customer brings in a piece of industrial equipment to repair a tire problem described as “slowly losing air pressure.� Three weeks after the service was performed, the equipment was involved in a construction site accident, and the operator sustained multiple fractures and closed-head
injuries. The follow-up investigation found the tire repair had failed and the brake system on that wheel was also inoperable. It was confirmed the brake condition was covered in a prior manufacturer recall, which was not discovered during the service visit. The case was settled for millions in total damages. Furthermore, the dealer gained a reputation for poor quality service, resulting in loss of future income and sales business. Issues and Risks The investigation into this case identified several issues. It was found there was only very basic documentation kept on service order forms. Additionally, the dealership did not routinely conduct post-service testing of repaired equipment, review for outstanding manufacturer recalls or conduct general inspections to identify hazardous mechanical conditions or missing safety features. The lack of a formal and documented service approach directly contributed
to the accident and spelled disaster for this dealer. Prevention Strategies Dealership service operations require professional action beyond the specific service requested. Recent jury decisions have placed a higher responsibility on dealerships because of their professional and technical expertise. Dealers have the responsibility to alert and warn customers of equipment defects or potentially dangerous conditions that should be discovered during a service appointment. The service department can help protect your dealership by: n Clearly documenting service tickets with reported symptoms and/or requested services. Additionally, each service ticket should document any post-service work actually performed and indicate that those services were verified as completed by a specific employee (signed/dated). n Perform a basic post-service inspection of each vehicle serviced to
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Play It Safe
identify and document openly visible mechanical conditions that could cause operation of the equipment to be hazardous. If such conditions are identified, document the service ticket accordingly and discuss with the customer before releasing the equipment. If the customer waives recommended repairs, require a signature acknowledging your recommendation. n Research all machinery or equipment taken in for service or maintenance to identify any recall or retrofit notices outstanding from the manufacturer. If outstanding notices are found, discuss the issue with the owner. If safety devices such as missing guards or inoperative equipment are identified, these should also be discussed. If the customer refuses repair of any of these items, document the necessary repairs as “refused” on the service order. The customer must then sign the service order. n Never make modifications to equipment or machinery without the written approval of the manufacturer. Such modifications could make operation unsafe, possibly resulting in injuries or property damage. n If a repair will potentially affect the structural integrity or safety features of a unit, verify the acceptability of doing so with the manufacturer. If the manufacturer indicates such a repair is acceptable, confirm this approval in the form of a registered letter, confirmed fax, or e-mail. Retain this documentation with the purchase order for the repair. Proactively managing the service process along with defined and followed recordkeeping practices can help protect your dealership. Following the above best practices is not a guarantee that a customer’s equipment will not fail after service. But if an unfortunate event does occur and the finger gets pointed in your direction, you can at least have confidence your service team performed their duties professionally and you have the records to prove it. n
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, nor the best practices applicable to any particular individual or entity. Legal obligations may vary by state and locality, and best practices are unique to specific items and situations. No one should act on the information contained in this document without advice from a local professional with relevant expertise. As the endorsed P&C carrier for the AED, Sentry Insurance offers superior coverage options and services to meet your dealership needs. Randy Dombrowski is Sentry’s lead account executive responsible for maintaining the AED/Sentry relationship.
Randy Dombrowski is an account executive for Sentry Insurance – a provider of Property & Casualty coverages for the dealership industry. You can reach Randy at randy.dombrowski@ sentry.com with any questions.
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Tips for Tapping into the Veteran Workforce
Human Resources
Learn the pros and cons, opportunities and obligations involved in hiring veterans and members of the Reserve. By Joanne Costin
Currently, the overall unemployment numbers for veterans are better than that of the general population. The August figures (released in early September) from the Bureau of Labor statistics calculate unemployment for all vets 18 and over at 6.6 percent, lower than the national average of 8 percent. However, it’s a completely different scenario for younger veterans. Among male vets ages 18-24 the unemployment rate recently jumped to 19.9 percent, while the unemployment rate for nonvets in this category was 16.3 percent. In addition, with more than one million service members projected to leave the military between 2011 and 2016, the poor jobs picture for young veterans could very well get worse. Government has taken aim at the problem and over the past year unemployment has dropped more than a full percentage point among veterans. On Nov. 21, 2011, the federal government introduced new incentives to encourage employers to hire vets. The Returning Heroes Tax Credit offers a credit of 40 percent of the first $6,000 of wages (up to $2,400) for employers who hire veterans
Know the Law Employers can legally ask an applicant about their military status, but employees are only legally bound to inform employers of their military status if they are in the Guard or Reserves and are mobilized for active duty. Companies that ask a prospective candidate about veteran status, but subsequently do not hire the candidate, may be subject to allegations of discrimination.
who have been unemployed at least four weeks. A credit of 40 percent of the first $12,000 of wages (up to $4,800) is available for employers who hire veterans who have been unemployed longer than six months. The credits are set to expire Jan 1, 2013. At the same time, the Work Opportunity Tax Credit for veterans with service-connected disabilities was continued and a Wounded Warrior credit of 40 percent of the first $24,000 of wages (up to $9,600) was added for firms that hire veterans with service-connected disabilities who have been unemployed longer than six months. In addition, the Act established the Veterans Retraining Assistance Program, a collaborative effort between Department of Labor and Veterans Administration, which will provide retraining assistance to 99,000 unemployed veterans from July 2012 through March 2014. The private sector has also mobilized in support of veterans. In March of 2011, the U.S. Chamber of Commerce’s National Chamber Foundation launched Hiring Our Heroes, a nationwide initiative to help veterans and military spouses find employment. Through job fairs and a nationwide network of 1,600 state and local chambers of commerce, the organization hopes to create a movement across America to bring jobs to service men and women and their spouses. To date, Hiring Our Heroes has hosted more than 255 hiring fairs in 49 states, Puerto Rico, and the District of Columbia. More than 10,400 vets have found employment through the program, which is supported by a national advisory circle that includes leading employers in the equipment industry such as Caterpillar and Toyota. Other programs such as Helmets to Hardhats also seek to help military personnel (continued on page 24)
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Human Resources
(“Tips for Tapping into the Veteran Workforce” continued from page 22)
find jobs within the construction industry. For employers, there are two types of military personnel you may hire, veterans and members of the active reserves or National Guard. Members of the Reserve and National Guard balance civilian careers with a part-time military career. Since the Gulf War, there has been a significant shift in the use of reserve forces. “We are leaning more on our Reserve and Guard forces to support our combat forces than we were in the past,” said John Michels, a former Air Force aircrew member and military lawyer (JAG). He is now a partner with the law firm Lewis Brisbois Bisgaard & Smith in Chicago. Legal Obligations of Employers Employers who hire members of the active reserve need to comply with the Uniformed Services Employment And Reemployment Rights Act (USERRA), which protects the job rights of individuals who voluntarily or involuntarily leave employment positions to undertake military service. USERRA also prohibits employers from discriminating against past and present members of the uniformed services, and applicants to the uniformed services, as well as having specific requirements for dealing with returning service members who are disabled because of active-duty injuries. “Employers need to understand that they are going to have an obligation to rehire these folks, even though they may be leaving for many months to go back on active duty,” said Michels. The employer must maintain health coverage for 30 days and offer up to 24 months of health
Free Resources to Reach Veterans
Some job boards that focus on veterans are free of charge to the employer: 1) The Employer Partnership of the Armed Forces (www.employerpartnership.org) makes connections between more than 3,000 interested companies and veterans that have been vetted, screened and trained by the military. 2) Hero2Hired (www.h2H.com) posts job openings that reach qualified candidates who are actively seeking employment. You can automatically post all of your jobs using either H2Hs API or your job integrator. 3) The Veterans Job Bank of the National Resource Directory (www.nrd.gov) is a collaboration between the Department of Defense, Department of Labor and the Veterans Administration. It allows employers to post position notices to their own company website or other job boards. Positions tagged with a special “Veterans Job Bank Widget” created by Google, will pull the position notice from the company website or other job boards.
Vets bring a strong work ethic, good technical training, and discipline to Modern Group, says President and CEO Dave Griffith.
coverage while they are in the military. While the employer’s obligation to pay stops when the employee leaves, some employers voluntarily make up the difference between military pay (which is often lower) and civilian pay. Veterans with disabilities are protected by the Americans with Disabilities Act. The Act requires employers with 15 or more employees to provide qualified individuals with disabilities an equal opportunity to benefit from the full range of employment-related opportunities available to others. It prohibits discrimination in recruitment, hiring, promotions, training, pay, social activities, and other privileges of employment. It restricts questions that can be asked about an applicant’s disability before a job offer is made. “Employers are required to attempt to accommodate the disability if you can,” said Michels. “If it is an undue hardship or the person can’t perform the essential elements of the job with an accommodation, then they are not qualified for the position.” Michels believes that with an aging workforce, accommodating disabilities will be more common among both veterans and nonveterans. “Employers are going to have to understand that they have to accommodate the things that happen to people when they get past a certain age.” Veterans in Dealerships Modern Group, with locations throughout New Jersey, New York, Pennsylvania, and Delaware, has a long tradition of considering individuals for employment and supporting candidates who are on active reserve. They currently have approximately 27 staff members who are veterans or in the Reserve. In May, CNN featured Modern Group in a report on veteran employment. During the last three or four years, Modern Group has tapped into a number of programs with vendors to help with military placements, primarily for technical positions. In addition to construction equipment, the company manages a forklift and power business. “It has been good for us, it has been good for business, it has been good for the veterans,” said Modern Group President and CEO David Griffith. “You are always out looking for talent and the military is a great training ground.”
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Human Resources
Griffith appreciates the organization, work ethic, good technical training and discipline that seem to be common attributes among those who have received military training. The company has not had any concerns about posttraumatic stress disorder (PTSD) among veterans. “We take everyone through a medical screening, which confirms that people have the ability to do the job and do the job safely,” said Griffith. “I have the same risk when I hire out of the general population.” “It’s like having a good relationship with a vocational school,” said Griffith. “You are going to go back there because you have success.” Modern Group supports active reserves by providing gap medical insurance coverage, and also by making up the difference between lower reserve pay and the employee’s current salary. The company works with the Wounded Warrior Project and other groups that support vets. According to Griffith, a controller (now retired) who had been an active member of the reserves had a good understanding of military terminology and was successful in identifying and recruiting qualified veterans for Modern. Word of mouth also works for the dealer. “Once you get guys working here who are in the military, word of mouth helps you a lot,” said Griffith. Sunstate Equipment, which offers construction equipment rental throughout the Southwest, shared a similar
Employee mentoring is one way Sunstate helps vets, and all new hires, get acclimated to the company.
story based on their experience hiring personnel out of the military. The company demonstrates a commitment to hiring returning veterans in job advertisements on LinkedIn, The National Resource Directory, and Hiring Heroes, as well as several other publications that reach veterans. Approximately 13 percent of both recent hires and their total workforce are veterans. This year, of 165 hired, 21 are vets. “Sunstate Equipment has actively recruited returning vets as we have found that they understand the importance of functioning as a part of a team and are extremely hard working,” said Janet Barkley, a regional human resources representative for Sunstate Equipment. “Sunstate Equipment follows up with all new hires and managers and (continued on next page)
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Human Resources
(“Tips for Tapping into the Veteran Workforce” continued from page 25)
government incentives were not really a factor in their decisions to employ veterans.
there is no evidence of PTSD or other associated conditions with returning veterans,” explained Barkley. “Our policy is to assign mentors to help ease the transition to a new job for all new Sunstate Equipment employees. This helps ease all our new hires into the Sunstate Team, particularly those just returning to the private workforce.” The company also covers family insurance costs for employees on active duty. For Barkley, it hasn’t been difficult to translate military job descriptions to identify the types of candidates she is looking for. Their primary need has been for drivers and technicians who have worked on heavy equipment and trucks. For Sunstate Equipment and Modern Group, the
Employer Perspectives In a 2012 study, “Employing America’s Veterans: Perspectives from Businesses,” conducted by the Center for a New American Security, more than 87 individuals representing 69 companies were interviewed about the positives and negatives of hiring veterans. According to the study’s authors, Dr. Margaret Harrell and Nancy Berglass, the most frequent challenge to veteran employment was skill translation. “Many firms commented that veterans do not represent their skills and expertise in ways that are relevant to civilian companies and civilian companies do not know what kind of military skills to seek out, how to understand military jobs or how to discern the promising and highperforming veteran hires,” said the report. For example, a civilian employer may not fully recognize how the skills of a junior infantryman would transfer into a civilian work place. Hiring managers may not recognize that a person in this job would have the ability to plan and execute tasks in a high-stress, frequently changing environment; possess a demonstrated commitment to safety; hold dynamic risk-management skills; and have experience using and maintaining equipment worth millions of dollars. Nearly six in 10 employers cited negative stereotypes about veterans, including post-traumatic stress disorder (PTSD) as a deterrent. About one third of companies interviewed were concerned about deployments. While the study documented challenges to hiring veterans, it also cited many of the same positives reported by the construction equipment dealers we interviewed. Leadership and teamwork skills were the most commonly cited reasons for hiring veterans, according to the study. Employers also perceive veterans to be trustworthy, dependable, drug-free and to have a strong work ethic. Other employers, especially those that emphasize safety, appreciate experience following established procedures. In addition, some, like Modern Group and Sunstate Equipment, value occupational skills. With business improving and special incentives for hiring veterans, there is a good opportunity for dealers to sharpen their approach to recruiting veterans. The most common outreach strategies include Base Visits/Transition Assistance Program (TAP), military career fairs, partnerships, and employment websites. Thinking beyond those whose skills may not be an exact match for a dealer, may help tap into new sources of talent. n
How to Get the Tax Credit You Deserve Whether your company is a C-Corp. or S-Corp., don’t wait until the end of the year to think about tax credits. According to Joan Vines, senior director Compensation and Benefits Tax, BDO, failure to recognize the credits as an ongoing task needing attention for several months after hiring a qualifying individual is a common mistake. “The income tax preparer who touches the tax return information at year-end will not be able to maximize the credit because it is unlikely that they are involved early enough in the process to comply with approval deadlines. A system that verifies the collection of Form 8850 from each potential employee needs to be established and a person within the company needs to be responsible for completing the employer’s section of the form and timely mailing to the state agency. In addition, a system is needed to follow up with the state on delayed responses to ensure that approval is received for all eligible employees.” Step 1. Verify the worker meets the requirements. Worker identifies as a veteran by completing a Form 8850 and signed under penalties of perjury. Step 2. Report to the state with 28 days. The Form 8850 must be completed by the employer and sent to the WOTC (Work Opportunity Tax Credit) Coordinator within your State Workforce Agency within 28 days of the veteran’s start date. Step 3. Follow up with the state on any delayed responses. Step 4: Calculate the credit. Form 5884 is used to figure the credit. This becomes a part of the general business credit claimed on Form 3800 filed with the employer’s tax return.
Joanne Costin is a freelance writer and marketing consultant focusing on the construction industry. She can be reached at (847) 358-1413 or jcostin@costincustom.com.
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Cutting Through the Campaign Noise How the 112th Congress voted on AED’s biggest legislative issues By Josh Pudnos
As Election Day approaches, the American public is increasingly forced to digest uninspiring campaign rhetoric, hyperbolic accusations, and political mudslinging. Add to the mix the hundreds of millions of dollars spent by outside groups and Super PACs and it can be all too easy to forget the most important question to ask on Nov. 6: Do I approve of the way my lawmakers are voting on the House and Senate floor? There is added complexity for U.S.-based AED members. You are supposed to make your selection not only as a citizen doing his or her public duty but also as owners, executives, and employees of small and medium-size businesses. While your ballot should represent what is best for your family, it must also embody the smartest decision for your employees, your company, and the economic environment for the coming years. For better or worse, members of the 112th Congress cast votes with myriad distinctive considerations. Perhaps
your member voted “aye” on a bill despite an unfavorable environmental provision, or voted “nay” on largely beneficial legislation because it would set back a particular industry important to their district. Collectively, however, your lawmakers’ voting record paints a portrait of where they stand on each issue and how they can be expected to vote in the 113th Congress and beyond. AED has carefully selected the 10 House and Senate votes most important to the equipment industry to help you answer that all-important question: How are my elected representatives voting on issues that matter to my industry? The 112th Congress: A Quick Glance Following the 2010 elections, the country was as polarized as ever. The 112th Congress reflected the national mood and proved to be one of the most divisive and hyperpartisan to date. Gone were the days of moderates and
compromise. Also absent were the controversial earmarks that enabled critical legislation, particularly public works bills, to slide through without much objection. When the dust settled in November 2010, Republicans unseated more than 20 Blue Dog Democrats (members with some of the best AED Vote Chart scores in the past). Cleansed of their moderate members, Democrats in Congress were more left-leaning than prior years, and they made it clear they were going to fight to protect President Obama’s signature healthcare law, defend policies favoring strict environmental rules, support efforts making it easier to unionize, and attempt to make the “rich” pay more in taxes. While the GOP shaved the Democrats’ margin in the Senate to six and recaptured the House 241 to 191, the fundamental, rightward shift in the Republican Party set the tone for the 112th Congress. A quarter of House Republicans identified with the Tea Party, (continued on page 30)
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Explore Dealership Opportunities Move your business forward with trusted Wacker Neuson products. Ask how we can improve your bottom line. www.wackerneuson.com
y’s Industr
MOSTED TRRUamSmTer
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(“Cutting Through the Campaign Noise” cont. from page 28)
a fiscally conservative, antitax, decentralist GOP faction. Many of these were among the 87 freshman Republicans ushered into Congress with a commitment to fundamentally change how the government conducts its business. Avowed enemies of the federal deficit, big government, and any tax increase, tea partiers scrutinized every piece of legislation with federal funding; there would be no such thing as good spending. They came to Washington to shake things up and wanted to accomplish that by cutting federal government programs. While the Tea Party faction didn’t make up the majority of the GOP caucus, they proved to be a stubborn and nearly insurmountable block for the more established members and party leadership. The far-right positions held by many made it impossible to meet the Democrats half-way on virtually any realm of policy, dampening the spirit of compromise that has long been the cornerstone of successful legislation. Consequently, the 112th Congress will go down as one of the least productive legislative sessions to date. Those who watched the battle to reauthorize the federal highway program, a case study in Congress’ historic political dysfunction, saw this play out in unprecedented fashion. Democrats fought over frivolous environmental and labor provisions, while many Republicans questioned the federal government’s very role in a national transportation system. Though there were various reasons for Congress’ colossal inaction, the callous and extreme partisanship of the last two years cannot be overstated. The saving grace for statesmanship in the 112th Congress, and the members who had the best voting records on AED issues, proved to be the “moderates” in both parties. In the House, those with a 100 percent AED voting record are often some of the more established Republicans with a long history of reaching across the aisle to do what’s right for the country. They were joined by two Democrats, Reps. Jim Matheson (D-Utah) and Mike McIntyre (D-N.C.), a few of the remaining Blue Dogs. Likewise, the best rated senators
were centrists like Sens. Susan Collins (R-Maine) and Scott Brown (R-Mass.). Conversely, Tea Party heroes Sens. Jim DeMint (R-S.C.) and Rand Paul (R-Ky.) came in at just 40 percent, while some of the most left-leaning members of the House, such as Reps. Dennis Kucinich (D-Ohio) and Pete Stark (D-Calif.), scored less than 25 percent. How We Picked ’Em Most of the key votes selected by AED revolve around surface transportation reauthorization. AED was an ardent supporter of the reauthorization effort, leading the charge to restore certainty to the federal highway program. As such, we vehemently opposed efforts to weaken or kill the Highway Trust Fund (HTF), the lifeblood of the federal surface transportation programs. AED fought efforts that would add uncertainty to the regulatory burden or raise your costs of doing business. Thus, the association supported measures to overturn the Affordable Care Act and bills that would reform the way government agencies regulate how business is done in the U.S. AED also supported legislation that would position Congress to begin a serious debate regarding a comprehensive tax overhaul. Anticipating significant action on tax reform during the lame duck session following the 2012 election and in the 113th Congress, AED urged Congress to do everything necessary to bring about the critical changes to restore certainty, fairness, and simplicity to our complex tax code. As you examine the charts, you will notice a slight difference between the two chambers. This relates to differences in legislative rules and processes within the bodies. The House rules and the Republicans’ substantial majority made it much easier to pass legislation than in the Senate. So, for example, while the House passed the Clean Water Cooperative Federalism Act, the Senate never even considered it. An Informed Decision The vote charts are an objective measure of how lawmakers voted on issues important to the equipment
industry and are a small fraction of a member’s voting record. The charts do not include intrinsic factors you should consider when casting your ballot in the upcoming election, such as a candidate’s character, professional qualifications, or positions on other issues that matter to you personally. Furthermore, a candidate’s AED voting record should neither be read as an endorsement of any candidate, nor as a statement of opposition to a lawmaker’s re-election. As you analyze this information, it is important to remember that legislation is rarely ever simple or straightforward. While a bill may contain important provisions for the equipment industry, it can contain many unrelated issues that cause a member to vote no. For example, the MAP-21 conference report kept money flowing to federal highway and transit construction programs at current levels through the end of FY 2014 and provided important program improvements to speed up highway project delivery. However, your representative may have voted against it because provisions in the original MAP-21 legislation, such as expedited approval of the Keystone XL pipeline and a lift on the private activity bonds cap, were dropped from the bill. Pressure from leadership, particularly for junior members, can also be an important factor in how a member votes. Finally, remember that not all members served the entirety of the 112th Congress. In these circumstances, their vote totals may be skewed because they cast fewer votes than their colleagues. These charts provide a quick reference to allow you to see where your elected officials stood on issues that affect your markets and cost of doing business. When you encounter candidates on the campaign trail, use this information as a starting point for a conversation with incumbents about why they voted as they did and to inquire of challengers how they would have voted had they been in office. n Josh Pudnos is AED’s manager of Government Affairs. He can be reached at josh.pudnos@aednet.org.
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Election
AED Legislative Scorecard
House Votes
1. The Comprehensive 1099 Taxpayer Protection & Repayment of Exchange Subsidy Overpayments Act (H.R. 4) The Comprehensive 1099 Taxpayer Protection & Repayment of Exchange Subsidy Overpayments Act (H.R. 4) was the first and only legislation enacted to successfully overturn a portion of the president’s signature healthcare law, the Affordable Care Act. A provision in the law would have mandated companies to report every transaction with an outside vendor totaling more than $600 on an IRS Form 1099 beginning in 2012, creating a huge paperwork burden, particularly for small businesses. AED and our partners in the Small Business Coalition for Affordable Health Care made 1099 repeal a top priority and achieved a major victory when the House comfortably approved the measure, 314-112, and the Senate followed suit, 87-12. H.R. 4 became law on April 14, 2011. House Vote 112-1-162, March 3, 2011; Senate Vote 112-1-49, April 5, 2011 2. Clean Water Cooperative Federalism Act (H.R. 2018) The Obama administration’s Environmental Protection Administration (EPA) proposed to greatly expand regulation in a number of areas traditionally under
the purview of individual states. One of the more acute examples of this abuse of power was the EPA’s use of the Clean Water Act (CWA) permitting process to block coal mines in Appalachia; however, quarries, farmers, and commercial, residential, and infrastructure construction projects also receive CWA scrutiny and are potentially affected by EPA’s exploitation of its authority. Consequently, Transportation & Infrastructure Committee Chairman John Mica (R-Fla.) and Ranking Member Nick Rahall (D-W.Va.) introduced the Clean Water Cooperative Federalism Act (H.R. 2018). The legislation aims to restore the long-standing balance between federal and state partners in regulating the nation’s waters; preserve the system of cooperative federalism established under CWA, which gives states primary responsibility for water pollution control; and prevent EPA from second-guessing or delaying a state’s CWA permitting and water quality certification decisions if the state’s program was already sanctioned. AED partnered with the National Mining Association and led a lobbying coalition to help push the bill through the House, 239-194. However, the bill never received consideration in the Senate. House Vote 112-1-573, July 13, 2011. 3. Three Percent Withholding Tax Repeal (H.R. 674) The Tax Increase Prevention Reconciliation Act (TIPRA), enacted in 2006, included a provision requiring that, beginning in 2013, federal, state, and local governmental entities whose annual expenditures exceed $100 million withhold 3 percent of all payments made to any individual or company that has provided goods or services to the government. The onerous tax would have been based on revenues from government payments with no relationship to a company’s taxable income, therefore impinging on cash flow needed for day-to-day operations and effectively resulting in equipment distributors
making an interest-free loan to the U.S. Treasury. Consequently, repealing the withholding tax was one of AED’s top priorities since its enactment. Fortunately, Congress killed this provision before it took effect. The House approved repeal legislation (H.R. 674), 405-16, followed shortly by the Senate, 95-1. H.R. 674 was signed into law on Nov. 21, 2011. House Vote 112-1-815, Oct. 27, 2011; Senate Vote 112-1-204, Nov. 10, 2011. 4. PIONEERS Act (H.R. 3408) Equipment distributors across the country have benefited from market activity surrounding domestic energy production. Energy development proved to be a hot political issue in the 112th Congress, as debates over the growing shale energy sector and the pending Keystone XL pipeline project, grabbed headlines. The House took on the challenge to encourage the growth of domestic energy production with the Protecting Investment in Oil Shale the Next Generation of Environmental, Energy, and Resources Security (PIONEERS) Act (H.R. 3408). The bill aimed to expand offshore energy production, open a small portion of the Arctic National Wildlife Refuge (ANWR) for oil and natural gas production, encourage the development of 1.5 trillion barrels of oil shale in the Rocky Mountain West by clarifying rules for oil shale production, and approve the Keystone project. The legislation would have created 1.2 million jobs and raised more than $4.3 billion in new federal revenues. The bill passed the House on Feb. 16, 2012, with bipartisan support, 237-187, but was never considered by the Senate. House Vote 112-2-71, Feb. 16, 2012. 5. Surface Transportation Extension Act of 2012 (H.R. 4281) Unable to complete work on a new highway reauthorization bill, Congress once again found itself in a battle for a short-term extension of federal surface transportation programs. Despite the Senate passage of (continued on next page)
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Election (“AED Legislative Scorecard – House Votes” cont. from page 31)
a two-year highway bill (Moving Ahead in Progress in the 21st Century (MAP-21)), the House GOP caucus was divided on how to proceed, forcing its leadership to pursue another short-term extension. However, Democrats were adamant that the House should simply pass MAP-21 and many Republicans were against another extension at current investment levels, complicating passage. GOP leaders were twice forced to delay votes and round up necessary support. With just two days to spare before the sunset on the last continuation, the House passed an extension authorizing transportation programs through June 30, 2012, 266-158. The Senate followed suit, approving the measure by voice vote. House Vote 112-2-147, March 29, 2012. 6. MAP-21 (H.R. 4348) Despite Senate passage of MAP-21, the House had been unable to finish work on its long-term surface transportation reauthorization bill, forcing House leadership to devise a strategy to move the process forward that would garner the votes necessary for approval. The plan was to pass a three-month extension as a shell bill to force a conference committee with the Senate to negotiate a final deal. In addition to the three-month continuation of the federal highway program, H.R. 4348 contained provisions to approve the Keystone XL pipeline, provide more certainty to harbor maintenance projects, prevent regulating fly ash as a hazardous material, speed environmental considerations for surface transportation projects, and provide money to restore oil spill zones in the Gulf. Many of these issues would ultimately prove a challenge for negotiators on the conference committee. The House agreed to the legislation, 293-127, followed by Senate approval, paving the way for appointment of a conference committee to negotiate a final highway bill. House Vote 112-2-170, April 18, 2012 7. Motion Instructing Conferees to Limit HTF Funding As the surface transportation conference committee worked toward a final highway bill report, House members wanted to force votes on issues related to the bill to get lawmakers on the record for and against certain policies. In the House, members may file “motions to instruct conferees,” which are nonbinding “suggestions” by nonconference members for negotiators to take a certain position in conference. Many on the far right of the Republican caucus believed the federal government’s role in infrastructure investment should be severely limited and even abolished. To that end, Rep. Paul Broun (R-Ga.) offered a motion to instruct conferees to restrict FY 2013 Highway Trust Fund (HTF) spending levels to $37.5 billion. AED and the transportation industry opposed this legislation, as it would have set a precedent for restricting
an already underfunded federal infrastructure program. Fortunately, the House rejected the measure by a wide margin, 82-323. House Vote 112-2-378, June 8, 2012. 8. MAP-21 Conference Report Final Passage After nearly three years and 10 temporary extensions, the conference committee finally came to agreement on a final surface transportation conference report for House and Senate approval. The MAP-21 conference report authorized more than $40 billion annually for two years for highway contract authority, expanded Transportation Infrastructure Finance and Innovative Act (TIFIA) funding, streamlined the project approval process, provided transportation enhancement reforms, and consolidated programs within the Department of Transportation to restore accountability and transparency. MAP-21 will provide and sustain millions of jobs, and create roughly $7.2 billion in market opportunity for equipment dealers over the life of the bill. For years, AED concentrated efforts on obtaining certainty for equipment distributors through a long-term highway reauthorization bill. Working with allies on Capitol Hill and in the construction industry, and thanks to the active involvement of equipment distributors across the country, AED scored a major victory with passage of MAP-21. On June 29, the House agreed to the conference report, 373-52. Shortly thereafter, the Senate followed the House’s lead by voting favorably on the bill, 74-19. President Obama signed MAP-21 into law on July 6. House Vote 112-2-451, June 29, 2012; Senate Vote 112-2172, June 29, 2012. 9. Repeal of Affordable Care Act (H.R. 6079) Shortly after the Supreme Court upheld the controversial Affordable Care Act, the House put forward a measure to demonstrate defiance to the president’s controversial health care law. Republican House leadership proposed the Repeal of Obamacare Act (H.R. 6079) to scrap the sweeping health care law once and for all. A political and symbolic vote, it fell mostly along party lines, though five Democrats joined a united GOP caucus endorsing passage. The measure served as a reminder that the Supreme Court’s ruling would not end the debate on health care reform. AED supports and will continue to fight for real, market-based alternatives that cut costs and restore certainty to the marketplace. The measure passed the House 244-185, but never made it to the Senate floor. House Vote 112-2-460, July 11, 2012. 10. Job Protection & Recession Prevention Act (H.R. 8) With a slew of taxes set to expire at the end of 2012, AED and the business community urged Congress to tackle the
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issue of tax reform before “taxmageddon” became a reality. The Job Protection & Recession Prevention Act (H.R. 8) would give Congress more time to hatch a pathway to tax reform without devastating the economy. The bill provides a two-year alternative minimum tax patch (covering 2012 and 2013) and extends through Dec. 31, 2013 the tax cuts originally enacted in 2001 and 2003, including lower marginal rates; marriage penalty relief;
$1,000 child credit; 15 percent top rates on dividends and capital gains; estate tax at its 2012 parameters; and higher Sec. 179 small business expensing limits. Though it passed 256-171 in the House, the Senate refused to take up the legislation. House Vote 112-2-545, Aug. 1, 2012.
How the U.S. House of Representatives Voted on Select Issues Key
Vote numbers (across the top): 1. The Comprehensive 1099 Taxpayer Protection & Repayment of Exchange Subsidy Overpayments Act (H.R. 4) 2. Clean Water Cooperative Federalism Act (H.R. 2018) 3. Three Percent Withholding Tax Repeal (H.R. 674) 4. PIONEERS Act (H.R. 4348) 5. Surface Transportation Extension Act of 2012 (H.R. 4281) 6. MAP-21 7. Motion Instructing Conferees to Limit HTF Funding 8. MAP-21 Conference Report Final Passage 9. Repeal of Affordable Care Act (H.R. 6079) 10. Job Protection and Recession Prevention Act (H.R. 8)
Numbers before/after names signify district.
Symbols Y: Voted Yes (No position by organization) N: Voted No (No position by organization) + Voted With Us – Voted Against Us P Voted Present NV Did Not Vote I Not in Office
1
2
3
4
5
6
7
8
9
10
AED Vote Position
+
+
+
+
+
+
-
+
+
+
Score
Alabama Representatives
1
2
3
4
5
6
7
8
9
10
Score
11. Jerry McNerney (D-CA-11)
+
-
+
-
-
-
+
+
-
+
12. Jackie Speier (D-CA-12)
NV
-
+
-
-
-
+
+
-
-
50% 33%
13. Pete Stark (D-CA-13)
-
-
-
-
-
-
+
+
-
-
20% 40%
1. Jo Bonner (R-AL-1)
+
+
+
+
+
+
+
+
NV
+
100%
14. Anna Eshoo (D-CA-14)
-
-
+
-
-
+
+
+
-
-
2. Martha Roby (R-AL-2)
+
+
+
+
+
+
+
+
+
+
100%
15. Michael Honda (D-CA-15)
-
-
+
-
-
-
+
+
-
-
30%
3. Mike Rogers (R-AL-3)
+
+
+
+
+
+
+
+
+
+
100%
16. Zoe Lofgren (D-CA-16)
-
-
-
-
-
+
+
+
-
-
30%
4. Robert Aderholt (R-AL-4)
+
+
+
+
+
-
+
+
+
+
90%
17. Sam Farr (D-CA-17)
-
-
+
-
-
-
+
+
-
-
30%
5. Mo Brooks (R-AL-5)
+
+
+
+
+
-
-
-
+
+
70%
18. Dennis Cardoza (D-CA-18)
+
+
+
-
-
+
NV
+
-
NV
62%
6. Spencer Bachus (R-AL-6)
+
+
+
+
+
+
+
+
+
+
100%
19. Jeff Denham (R-CA-19)
+
+
+
+
+
+
+
+
+
+
100%
7. Terri Sewell (D-AL-7)
+
-
+
-
+
+
+
+
-
-
20. Jim Costa (D-CA-20)
+
+
+
+
+
+
+
+
-
+
90%
Alaska Representatives
1
2
3
4
5
6
7
8
9
10
Score
21. Devin Nunes (R-CA-21)
+
+
+
+
+
+
+
+
+
+
100%
Don Young (R-AK-AL)
+
+ NV +
+
+
+
+
+
+
100%
22. Kevin McCarthy (R-CA-22)
+
+
+
+
+
+
+
+
+
+
100%
Arizona Representatives
1
2
3
4
5
6
7
8
9
10
Score
23. Lois Capps (D-CA-23)
-
-
+
-
+
-
+
+
-
-
40%
1. Paul Gosar (R-AZ-1)
+
+
+
+
+
+
+
-
+
+
90%
24. Elton Gallegly (R-CA-24)
+
+
+
+
+
+
+
+
+
+
100%
60%
2. Trent Franks (R-AZ-2)
+
+
+
+
+
+
-
-
+
+
80%
25. Howard McKeon (R-CA-25)
+
+
+
+
+
+
+
+
+
+
100%
3. Ben Quayle (R-AZ-3)
+
+
+
+
+
-
-
-
+
+
70%
26. David Dreier (R-CA-26)
+
+
+
+
+
+
+
+
+
+
100%
4. Ed Pastor (D-AZ-4)
+
-
+
-
+
+
+
+
-
-
60%
27. Brad Sherman (D-CA-27)
-
-
+
-
-
-
+
+
-
-
30%
5. David Schweikert (R-AZ-5)
+
+
+
+
-
-
-
-
+
+
60%
28. Howard Berman (D-CA-28)
-
-
+
-
-
-
+
+
-
-
30%
6. Jeff Flake (R-AZ-6)
+
-
+
+
-
NV
-
-
+
+
55%
29. Adam Schiff (D-CA-29)
+
-
+
-
-
-
+
+
-
-
40%
7. Raul Grijalva (D-AZ-7)
-
-
+
-
-
-
+
+
-
-
30%
30. Henry Waxman (D-CA-30)
-
-
+
-
-
-
+
+
-
-
30%
8. Ron Barber (D-AZ-8)
I
I
I
I
I
I
I
+
-
-
33%
31. Xavier Becerra (D-CA-31)
-
-
+
-
-
-
+
+
-
-
30%
9. Gabrielle Giffords (D-AZ-8)
NV NV NV
32. Judy Chu (D-CA-32)
-
-
+
-
-
-
+
+
-
-
30%
33. Karen Bass (D-CA-33)
-
-
+
-
+
-
+
+
-
-
40%
-
-
+
-
-
-
NV
+
-
-
22%
-
-
-
-
-
-
+
+
-
-
20% 50%
I
I
I
I
I
I
I
Arkansas Representatives
1
2
3
4
5
6
7
8
9
10
Score
1. Rick Crawford (R-AR-1)
+
+
+
+
+
+
+
+
+
+
100%
34. Lucille Roybal-Allard (D-CA-34)
2. Tim Griffin (R-AR-2)
+
+
+
+
+
+
+
+
+
+
100%
35. Maxine Waters (D-CA-35)
3. Steve Womack (R-AR-3)
+
+
+
+
+
+
+
+
+
+
100%
4. Mike Ross (D-AR-4)
+
+
+
+
-
+
+
+
+
+
90%
36. Janice Hahn (D-CA-36)
I
I
+
-
-
+
+
+
-
-
36. Jane Harman (D-CA-36)
I
I
I
I
I
I
I
I
I
I
California Representatives
1
2
3
4
5
6
7
8
9
10
Score
37. Laura Richardson (D-CA-37)
+
-
+
-
-
+
+
+
-
-
1. Mike Thompson (D-CA-1)
-
-
+
-
-
-
+
+
-
-
30%
38. Grace Napolitano (D-CA-38)
-
-
+
-
-
NV
+
+
-
-
50% 33%
2. Wally Herger (R-CA-2)
+
+
+
+
+
+
+
+
+
+
100%
39. Linda Sanchez (D-CA-39)
NV
-
+
-
-
-
+
+
-
-
33%
3. Dan Lungren (R-CA-3)
+
+
+
+
+
+
+
+
+
+
100%
40. Ed Royce (R-CA-40)
+
+
+
+
+
+
-
+
+
+
90%
4. Tom McClintock (R-CA-4)
+
+
+
+
-
-
-
-
+
+
60%
41. Jerry Lewis (R-CA-41)
+
+
+
+
+
+ NV NV
+
+
100% 100%
5. Doris Matsui (D-CA-5)
-
-
+
-
-
-
+
+
-
-
30%
42. Gary Miller (R-CA-42)
+
+ NV +
+
+
+
+
+
+
6. Lynn Woolsey (D-CA-6)
-
-
-
-
-
-
+
+
-
-
20%
43. Joe Baca (D-CA-43)
+
+
+
-
-
+
+
+
-
-
60%
7. George Miller (D-CA-7)
-
-
+
-
-
-
+
+
-
-
30%
44. Ken Calvert (R-CA-44)
+
+
+
+
+
+
+
+
+
+
100%
8. Nancy Pelosi (D-CA-8)
-
-
+
-
-
-
+
+
-
-
30%
45. Mary Bono Mack (R-CA-45)
+
+
+ NV +
+
+
+
+
+
100%
9. Barbara Lee (D-CA-9)
-
-
-
-
-
-
+
+
-
-
20%
46. Dana Rohrabacher (R-CA-46)
+
+
+
+
+
+
-
+
+
+
90%
10. John Garamendi (D-CA-10)
-
-
+
-
+
-
+
+
-
-
40%
47. Loretta Sanchez (D-CA-47)
+
-
+ NV
-
+
+
+
-
-
55%
(continued on next page) October 2012 | Construction Equipment Distribution | www.cedmag.com | 33
28_Election_Feature_KP.indd 33
10/1/12 6:03 PM
House votes continued from page 33; see Key on page 33. 48. John Campbell (R-CA-48)
+
+
+ NV
-
-
-
-
+
+
55%
5. Mike Quigley (D-IL-5)
+
-
+
-
+
-
+
+
-
-
50%
49. Darrell Issa (R-CA-49)
+
+
+
+
+
+
-
+
+
+
90%
6. Peter Roskam (R-IL-6)
+
+
+
+
+
+
+
+
+
+
100%
50. Brian Bilbray (R-CA-50)
+
+
+
-
+
+
+
+
+
+
90%
7. Danny Davis (D-IL-7)
-
-
+
-
-
+
+
+
-
-
40%
51. Bob Filner (D-CA-51)
-
-
+
-
NV NV NV NV
-
-
16%
8. Joe Walsh (R-IL-8)
+
+
+
+
+
+
-
-
+
+
80%
52. Duncan Hunter (R-CA-52)
+
+
+
+
+
+
+
+
+
+
100%
9. Jan Schakowsky (D-IL-9)
-
-
-
-
-
-
+
+
-
-
20%
53. Susan Davis (D-CA-53)
+
-
+
-
-
-
+
+
-
-
40%
10. Robert Dold (R-IL-10)
+
-
+
-
-
+
+
+
+
+
70%
Colorado Representatives
1
2
3
4
5
6
7
8
9
10
11. Adam Kinzinger (R-IL-11)
+
+
+
+
+
+
+
+
+
+
100%
Score
1. Diana DeGette (D-CO-1)
-
-
+
-
-
-
+
+
-
-
30%
12. Jerry Costello (D-IL-12)
+
+
+
-
-
+
+
+
-
-
60%
2. Jared Polis (D-CO-2)
-
-
NV
-
+
-
+
+
-
-
33%
13. Judy Biggert (R-IL-13)
+
+
+
+
+
+
+
+
+
+
100%
3. Scott Tipton (R-CO-3)
+
+
+
+
+
+
+
+
+
+
100%
14. Randy Hultgren (R-IL-14)
+
+
+
+
+
+
+
+
+
+
100%
4. Cory Gardner (R-CO-4)
+
+
+
+
+
+
+
+
+
+
100%
15. Timothy Johnson (R-IL-15)
+
-
NV
-
+
+
+
+
+
-
66%
5. Doug Lamborn (R-CO-5)
+
+
+
+
+
+
-
NV
+
+
88%
16. Donald Manzullo (R-IL-16)
+
+
+
+
+
+
-
+
+
+
90%
6. Mike Coffman (R-CO-6)
+
+
+
+
+
+
+
+
+
+
100%
17. Bobby Schilling (R-IL-17)
+
+
+
+
+
+
+
+
+
+
100%
7. Ed Perlmutter (D-CO-7)
+
-
+
-
-
+
+
+
-
-
50%
18. Aaron Schock (R-IL-18)
+
+
+
+
+
+
+
+
+
+
100%
Connecticut Representatives
1
2
3
4
5
6
7
8
9
10
Score
19. John Shimkus (R-IL-19)
+
+
+
+
+
+
+
+
+
+
100%
1. John Larson (D-CT-1)
-
-
+
-
-
+
+
+
-
-
40%
Indiana Representatives
1
2
3
4
5
6
7
8
9
10
Score
2. Joe Courtney (D-CT-2)
+
-
+
-
-
-
+
+
-
-
40%
1. Peter Visclosky (D-IN-1)
+
-
NV
-
-
-
+
+
-
-
33%
3. Rosa DeLauro (D-CT-3)
-
-
+
-
-
-
+
+
-
-
30%
2. Joe Donnelly (D-IN-2)
+
-
+
+
+
+
+
+
-
+
80%
4. Jim Himes (D-CT-4)
+ NV +
-
-
-
+
+
-
-
44%
3. Marlin Stutzman (R-IN-3)
+
+
+
+
+
+
-
+
+
+
90%
5. Christopher Murphy (D-CT-5)
-
-
+
-
-
-
+
+
-
-
30%
4. Todd Rokita (R-IN-4)
+
+
+
+
+
+
-
+
+
+
90%
Delaware Representatives
1
2
3
4
5
6
7
8
9
10
Score
5. Dan Burton (R-IN-5)
+
+
+
+
+
+
-
+
+
+
90%
John Carney (D-DE-AL)
+
-
+
-
-
-
+
+
-
-
40%
6. Mike Pence (R-IN-6)
+
+
+
+
+
+
-
+
+
+
90%
Florida Representatives
1
2
3
4
5
6
7
8
9
10
Score
7. Andre Carson (D-IN-7)
-
-
+
-
+
+
+
+
-
-
50%
1. Jeff Miller (R-FL-1)
+
+
+
-
+
+
-
+
+
+
80%
8. Larry Bucshon (R-IN-8)
+
+
+
+
+
+
+
+
+
+
100%
2. Steve Southerland (R-FL-2)
+
+
+
-
+
+
+
+
+
+
90%
9. Todd Young (R-IN-9)
+
+
+
+
+
+
+
+
+
+
100%
3. Corrine Brown (D-FL-3)
-
-
+
-
-
+
+
+
-
-
40%
Iowa Representatives
1
2
3
4
5
6
7
8
9
10
Score
4. Ander Crenshaw (R-FL-4)
+
+
+
+
+
+
+
+
+
+
100%
1. Bruce Braley (D-IA-1)
+
-
+
-
+
+
+
+
-
-
5. Rich Nugent (R-FL-5)
+
+
+
-
+
+
+
-
+
+
80%
2. Dave Loebsack (D-IA-2)
+
-
+
-
+
+
+
+
-
+
70%
6. Cliff Stearns (R-FL-6)
+
+
+
+
+
+
+
+
+
+
100%
3. Leonard Boswell (D-IA-3)
+
+
+
+
+
+
+
+
-
+
90%
7. John Mica (R-FL-7)
+
+
+
+
+
+
+
+
+
+
100%
4. Tom Latham (R-IA-4)
+
+
+
+
+
+
+
+
+
+
100%
8. Daniel Webster (R-FL-8)
+
+
+
+
+
+
+
+
+
+
100%
5. Steve King (R-IA-5)
+
+
+
+
+
+
-
+
+
+
90%
9. Gus Bilirakis (R-FL-9)
+
+
+
-
+
+
NV
+
+
+
88%
Kansas Representatives
1
2
3
4
5
6
7
8
9
10
Score
10. C.W. Bill Young (R-FL-10)
+
-
+
-
+
+
+
+
+
+
80%
1. Tim Huelskamp (R-KS-1)
+
+
+
+
+
+
-
-
+
+
80%
11. Kathy Castor (D-FL-11)
+
-
+
-
-
-
+
+
-
-
40%
2. Lynn Jenkins (R-KS-2)
+
+
+
+
+
+
-
-
+
+
80%
60%
12. Dennis Ross (R-FL-12)
+
+
+
+
+
-
-
-
+
+
70%
3. Kevin Yoder (R-KS-3)
+
+
+
+
+
+
-
-
+
+
80%
13. Vern Buchanan (R-FL-13)
+
+
+
-
+
+
+
+
+
+
90%
4. Mike Pompeo (R-KS-4)
+
+
+
+
+
+
-
-
+
+
80%
NV
-
+
+
85%
Kentucky Representatives
1
2
3
4
5
6
7
8
9
10
Score
-
-
+
+
80%
1. Edward Whitfield (R-KY-1)
+
+
+
+
+
+ NV +
+
+
100% 100%
14. Connie Mack (R-FL-14)
+
+
+ NV NV +
15. Bill Posey (R-FL-15)
+
+
+
+
+
+
16. Tom Rooney (R-FL-16)
+
+
+
+
+
+
-
+
+
+
90%
2. Brett Guthrie (R-KY-2)
+
+
+
+
+
+
+
+
+
+
17. Frederica Wilson (D-FL-17)
-
-
NV
-
-
-
+
+
-
-
22%
3. John Yarmuth (D-KY-3)
+
-
+
-
-
+
+
+
-
-
50%
18. Ileana Ros-Lehtinen (R-FL-18)
+
+
+
-
+
+
+
+
+
+
90%
4. Geoff Davis (R-KY-4)
+
+
+
+
+
+
+
+
+
I
100% 100%
19. Ted Deutch (D-FL-19)
-
-
+
-
-
-
+
+
-
-
30%
5. Harold Rogers (R-KY-5)
+
+
+
+
+
+
+
+
+
+
20. Debbie Wasserman Schultz (D-FL-20)
-
-
+
-
-
-
+
+
-
-
30%
6. Ben Chandler (D-KY-6)
+
-
+
-
+
+
+
+
-
+
70%
21. Mario Diaz-Balart (R-FL-21)
+ NV +
-
+
+
+
+
+
+
88%
Louisiana Representatives
1
2
3
4
5
6
7
8
9
10
Score
22. Allen West (R-FL-22)
+
+
+
-
+
+
-
+
+
+
80%
1. Steve Scalise (R-LA-1)
+
+
+
+
+
+
-
+
+
+
90%
23. Alcee Hastings (D-FL-23)
-
-
+
-
-
-
+
+
-
-
30%
2. Cedric Richmond (D-LA-2)
-
-
-
+
-
+
+
+
-
-
40%
24. Sandy Adams (R-FL-24)
+
+
+
-
+
+
-
-
+
+
70%
3. Jeff Landry (R-LA-3)
+
+
+
+
+
+
+
+
+
+
100%
25. David Rivera (R-FL-25)
+
+
+
-
+
+
+
+
+
+
90%
Georgia Representatives
1
2
3
4
5
6
7
8
9
10
Score
+
4. John Fleming (R-LA-4)
+
+
+
+
-
+
-
+
+
+
80%
5. Rodney Alexander (R-LA-5)
+
+
+
+
+
+
+
+
+
+
100%
1. Jack Kingston (R-GA-1)
+
+
+
+
+
-
+
+
+
90%
6. Bill Cassidy (R-LA-6)
+
+
+
+
+
+
+
+
+
+
100%
2. Sanford Bishop (D-GA-2)
+ NV +
+
+
+
+
+
-
+
88%
7. Charles Boustany (R-LA-7)
+
+
+
+
+
+
+
+
+
+
100%
3. Lynn Westmoreland (R-GA-3)
+
+
+
+
+
+
-
-
+
+
80%
Maine Representatives
1
2
3
4
5
6
7
8
9
10
Score
4. Hank Johnson (D-GA-4)
-
-
+
-
-
-
+
+
-
-
30%
1. Chellie Pingree (D-ME-1)
+
-
+
-
-
NV
+
+
-
-
44%
5. John Lewis (D-GA-5)
-
-
+
-
-
-
+
+
-
-
30%
2. Michael Michaud (D-ME-2)
-
-
+
-
-
+
+
+
-
-
40%
+
6. Tom Price (R-GA-6)
+
+
+
+
+
-
+
+
+
90%
Maryland Representatives
1
2
3
4
5
6
7
8
9
10
Score
7. Rob Woodall (R-GA-7)
+
+ NV +
+
+
-
-
+
+
77%
1. Andy Harris (R-MD-1)
+
+
+
+
+
+
+
-
+
+
90%
8. Austin Scott (R-GA-8)
+
+
+
+
+
+
-
-
+
+
80%
2. C.A. Dutch Ruppersberger (D-MD-2)
+
-
+
-
+
+
+
+
-
-
60%
9. Tom Graves (R-GA-9)
+
+
+
+
+
+
-
-
+
+
80%
3. John Sarbanes (D-MD-3)
-
-
+
-
-
-
+
+
-
-
30%
10. Paul Broun (R-GA-10)
+
+
+
+
+
-
-
-
+
+
70%
4. Donna Edwards (D-MD-4)
-
-
-
-
-
-
+
+
-
-
20%
11. Phil Gingrey (R-GA-11)
+
+
+
+
+
+
-
-
+
+
80%
5. Steny Hoyer (D-MD-5)
-
-
+
-
+
-
+
+
-
-
40%
12. John Barrow (D-GA-12)
+
+
+
+
+
+
+
+
-
+
90%
6. Roscoe Bartlett (R-MD-6)
+
+
+
+
+
+
+
+
+
+
100%
13. David Scott (D-GA-13)
+
-
+
-
+
-
+
+
-
-
50%
7. Elijah Cummings (D-MD-7)
-
-
+
-
-
-
+
+
-
-
30%
Hawaii Representatives
1
2
3
4
5
6
7
8
9
10
Score
8. Chris Van Hollen (D-MD-8)
-
-
+
-
+
-
+
+
-
-
40%
1. Colleen Hanabusa (D-HI-1)
-
-
+
-
-
-
+
+
-
-
30%
Massachusetts Representatives
1
2
3
4
5
6
7
8
9
10
2. Mazie Hirono (D-HI-2)
-
-
+
-
-
-
NV
+
-
-
22%
1. John Olver (D-MA-1)
-
-
-
-
-
-
+
+
-
-
Score
Idaho Representatives
1
2
3
4
5
6
7
8
9
10
Score
2. Richard Neal (D-MA-2)
-
-
+
-
-
-
NV
+
-
-
22%
1. Raul Labrador (R-ID-1)
+
+
+
+
+
-
NV
-
+
+
77%
3. Jim McGovern (D-MA-3)
-
-
+
-
-
-
+
+
-
-
30%
2. Mike Simpson (R-ID-2)
+
+
+
+
+
+
+
+
+
+
100%
4. Barney Frank (D-MA-4)
-
-
+
-
-
-
+
+
-
-
30%
Illinois Representatives
1
2
3
4
5
6
7
8
9
10
Score
5. Niki Tsongas (D-MA-5)
-
-
+
-
+
-
+
+
-
-
40%
1. Bobby Rush (D-IL-1)
-
-
+
-
-
+
+
+
-
-
40%
6. John Tierney (D-MA-6)
-
-
+
-
-
-
+
+
-
-
30%
2. Jesse Jackson (D-IL-2)
-
-
+
-
NV +
+
NV NV NV
50%
7. Edward Markey (D-MA-7)
-
-
+
-
-
-
+
+
-
-
30%
3. Daniel Lipinski (D-IL-3)
+
-
+
-
-
+
+
+
-
-
50%
8. Michael Capuano (D-MA-8)
-
-
+
-
-
-
+
+
-
-
30%
4. Luis Gutierrez (D-IL-4)
-
-
-
-
-
-
+
+
-
-
20%
9. Stephen Lynch (D-MA-9)
-
-
+
-
+
+
+
+
-
-
50%
20%
34 | www.cedmag.com | Construction Equipment Distribution | October 2012
28_Election_Feature_KP.indd 34
10/1/12 6:03 PM
10. William Keating (D-MA-10)
+
-
+
-
-
+
+
+
-
-
New York Representatives
1
2
3
4
5
6
7
8
9
10
Michigan Representatives
1
2
3
4
5
6
7
8
9
10
Score
1. Timothy Bishop (D-NY-1)
+
-
+
-
+
+
+
+
-
-
1. Dan Benishek (R-MI-1)
+
+
+
+
+
+
+
+
+
+
100%
2. Steve Israel (D-NY-2)
+
-
+
-
+
-
+
+
-
-
50%
2. Bill Huizenga (R-MI-2)
+
+
+
+
+
+
-
-
+
+
80%
3. Peter King (R-NY-3)
+
+
+
+
+
+
+
+
+
+
100%
3. Justin Amash (R-MI-3)
+
+
+
+
-
-
-
-
+
+
60%
4. Carolyn McCarthy (D-NY-4)
+
-
+
-
-
+
+
+
-
-
50%
4. Dave Camp (R-MI-4)
+
+
+
+
+
+
+
+
+
+
100%
5. Gary Ackerman (D-NY-5)
-
-
NV
-
-
-
+
+
-
-
22%
5. Dale Kildee (D-MI-5)
-
-
+
-
-
-
+
+
-
-
30%
6. Gregory Meeks (D-NY-6)
-
-
+
-
NV
-
+
+
-
-
33%
6. Fred Upton (R-MI-6)
+
+
+
+
+
+
+
+
+
+
100%
7. Joseph Crowley (D-NY-7)
-
-
+
-
-
-
+
+
-
-
30%
7. Tim Walberg (R-MI-7)
+
+
+
+
+
+
+
-
+
+
90%
30%
8. Mike Rogers (R-MI-8)
+
+
+
+
+
+
+
+
+
+
100%
9. Gary Peters (D-MI-9)
+
-
+
-
-
-
+
+
-
-
40%
10. Candice Miller (R-MI-10)
+
+
+
+
+
+
+
+
+
+
11. Thaddeus McCotter (R-MI-11)
+ NV +
+
+
+
+
+
I
I
50%
Score 60%
8. Jerrold Nadler (D-NY-8)
-
-
+
-
-
-
+
+
-
-
9. Anthony Weiner (D-NY-9)
-
I
I
I
I
I
I
I
I
I
0%
9. Bob Turner (R-NY-9)
I
I
+
+
+
+
+
+
+
+
100%
100%
10. Edolphus Towns (D-NY-10)
-
-
+
-
NV
-
NV
+
-
-
25%
100%
11. Yvette Clarke (D-NY-11)
-
-
-
-
-
-
+
+
-
-
20%
+
12. Sander Levin (D-MI-12)
-
-
+
-
-
-
+
+
-
-
30%
12. Nydia Velazquez (D-NY-12)
+
-
-
-
-
+
+
-
-
40%
13. Hansen Clarke (D-MI-13)
-
-
+
-
-
-
+
+
-
-
30%
13. Michael Grimm (R-NY-13)
+
+ NV +
+
+
+
+
+
+
100%
-
-
40%
14. John Conyers (D-MI-14)
-
-
+
-
-
-
+
+
-
-
30%
14. Carolyn Maloney (D-NY-14)
+
-
+
+
+
-
-
15. John Dingell (D-MI-15)
-
-
+
-
-
-
+
+
-
-
30%
15. Charles Rangel (D-NY-15)
-
-
+ NV NV NV
+
+
-
-
42%
Minnesota Representatives
1
2
3
4
5
6
7
8
9
10
16. Jose Serrano (D-NY-16)
-
-
+
+
+
-
-
30%
1. Tim Walz (D-MN-1)
+
-
+
-
+
+
+
+
-
+
70%
2. John Kline (R-MN-2)
+
+
+
+
+
+
+
+
+
+
100%
3. Erik Paulsen (R-MN-3)
+
+
+
-
+
+
+
+
+
+
4. Betty McCollum (D-MN-4)
-
-
+
-
-
-
+
+
-
-
Score
-
-
-
17. Eliot Engel (D-NY-17)
-
-
+
-
-
-
+
+
-
-
30%
18. Nita Lowey (D-NY-18)
-
-
+
-
-
-
+
+
-
-
30%
90%
19. Nan Hayworth (R-NY-19)
+
-
+
-
+
+
+
+
+
+
80%
30%
20. Chris Gibson (R-NY-20)
+
+
+
+
+
+
+
+
+
+
100%
-
+
-
-
-
+
+
-
-
30%
NV NV
-
-
-
+
+
-
-
25%
+
+
-
+
+
+
-
+
70%
5. Keith Ellison (D-MN-5)
-
NV +
-
-
-
+
+
-
-
33%
21. Paul Tonko (D-NY-21)
-
6. Michele Bachmann (R-MN-6)
+
+ NV +
+
+
-
-
+
+
77%
22. Maurice Hinchey (D-NY-22)
-
7. Collin Peterson (D-MN-7)
+
+
+
+
+
+
+
+
-
+
90%
23. Bill Owens (D-NY-23)
+
8. Chip Cravaack (R-MN-8)
+
+
+
+
+
+
+
+
+
+
100%
24. Richard Hanna (R-NY-24)
NV +
+
+
+
+
+
+
+
+
100%
Mississippi Representatives
1
2
3
4
5
6
7
8
9
10
Score
25. Ann Marie Buerkle (R-NY-25)
+
+
+
+
+
+
-
+
+
+
90%
1. Alan Nunnelee (R-MS-1)
+
+
+
+
+
+
+
+
+
+
100%
26. Christopher Lee (R-NY-26)
I
I
I
I
I
I
I
I
I
I
-
2. Bennie Thompson (D-MS-2)
-
-
-
-
-
+
+
+
-
-
30%
26. Kathy Hochul (D-NY-26)
I
-
+
+
+
+
+
+
-
-
66%
3. Gregg Harper (R-MS-3)
+
+
+
+
+
+
+
+
+
+
100%
27. Brian Higgins (D-NY-27)
+
-
+
-
-
+
+
+
-
-
50%
4. Steven Palazzo (R-MS-4)
+
+
+
+
+
+
+
+
+
+
100%
28. Louise Slaughter (D-NY-28)
+
-
+
-
-
NV NV
+
-
-
37%
Missouri Representatives
1
2
3
4
5
6
7
8
9
10
Score
29. Tom Reed (R-NY-29)
+
+
+
+
+
+
+
+
+
100%
+
+
Score
+
North Carolina Representatives
1
2
3
4
5
6
7
8
9
10
1. G.K. Butterfield (D-NC-1)
+
-
+
-
-
-
+
+
-
-
40%
2. Renee Ellmers (R-NC-2)
+
+
+
+
+
+
+
+
+
+
100%
3. Walter Jones (R-NC-3)
+
+
+
+
+
+
-
+
+
+
90%
4. David Price (D-NC-4)
+
-
+
-
-
-
+
+
-
-
40%
5. Virginia Foxx (R-NC-5)
+
+
+
+
+
+
-
-
+
+
80%
100%
6. Howard Coble (R-NC-6)
+
+
+
+
+
+ NV +
+
+
100%
+
100%
7. Mike McIntyre (D-NC-7)
+
+
+
+
+
+
+
+
+
+
100%
+
100%
8. Larry Kissell (D-NC-8)
+
-
+
+
+
+
+
+
+
+
90%
9
10
Score
9. Sue Myrick (R-NC-9)
+
+
+
+
+
+
-
+
+
+
90%
+
+
+
100%
10. Patrick McHenry (R-NC-10)
+
+
+
+
+
+
-
-
+
+
80%
7
8
9
10
Score
11. Heath Shuler (D-NC-11)
+
-
+ NV +
+
NV
+
-
-
62%
+
+
+
+
+
100%
12. Melvin Watt (D-NC-12)
-
-
+
+
+
+
-
-
40%
+
+
+
+
+
+
100%
13. Brad Miller (D-NC-13)
-
-
+
-
-
-
+
+
-
-
+
+
+
+
+
+
100%
North Dakota Representatives
1
2
3
4
5
6
7
8
9
10
Score
1. William Lacy Clay (D-MO-1)
-
-
+
-
-
-
-
-
2. Todd Akin (R-MO-2)
+
+
+
+
+
+ NV NV
+
NV
30%
3. Russ Carnahan (D-MO-3)
+
-
+
-
-
NV
+
+
-
-
44%
4. Vicky Hartzler (R-MO-4)
+
+
+
+
+
+
+
+
+
+
100%
5. Emanuel Cleaver (D-MO-5)
-
-
+ NV
-
-
+
+
-
-
33%
6. Sam Graves (R-MO-6)
+
+
+
+
+
+
-
+
+
+
90%
7. Billy Long (R-MO-7)
+
+
+
+
+
+
+
+
+
+
8. Jo Ann Emerson (R-MO-8)
+
+
+
+
+
+
+
+
+
9. Blaine Luetkemeyer (R-MO-9)
+
+
+
+
+
+
+
+
+
Montana Representatives
1
2
3
4
5
6
7
8
Denny Rehberg (R-MT-AL)
+
+
+
+
+
+
+
Nebraska Representatives
1
2
3
4
5
6
1. Jeff Fortenberry (R-NE-1)
+
+
+
+
+
2. Lee Terry (R-NE-2)
+
+
+
+
3. Adrian Smith (R-NE-3)
+
+
+
+
100%
-
-
30%
Nevada Representatives
1
2
3
4
5
6
7
8
9
10
Score
Rick Berg (R-ND-AL)
+
+
+
+
+
+
+
+
+
+
100%
1. Shelley Berkley (D-NV-1)
+
-
+
-
-
-
+
+
-
-
40%
Ohio Representatives
1
2
3
4
5
6
7
8
9
10
Score
2. Mark Amodei (R-NV-2)
I
I
+
+
+
+
+
+
+
+
100%
1. Steve Chabot (R-OH-1)
+
+
+
+
+
+
-
-
+
+
80%
3. Dean Heller (R-NV)
+
|
|
|
|
|
|
|
|
|
100%
2. Jean Schmidt (R-OH-2)
+
+
+
+
-
+
+
+
+
+
90%
4. Joe Heck (R-NV-3)
+
+
+
+
+
+
-
+
+
+
90%
3. Michael Turner (R-OH-3)
+
+
+
+
+
+
+
+
+
+
100%
New Hampshire Representatives
1
2
3
4
5
6
7
8
9
10
Score
4. Jim Jordan (R-OH-4)
NV +
+
+
-
-
-
-
+
+
55%
1. Frank Guinta (R-NH-1)
+
+
+
+
+
+
+
+
+
+
100%
5. Bob Latta (R-OH-5)
+
+
+
+
+
+
-
+
+
+
90%
2. Charles Bass (R-NH-2)
+
+
+
-
+
-
+
+
+
+
80%
6. Bill Johnson (R-OH-6)
+
+
+
+
+
+
+
+
+
+
100%
New Jersey Representatives
1
2
3
4
5
6
7
8
9
10
Score
7. Steve Austria (R-OH-7)
+
+
+ NV +
+
+
+
+
+
100%
1. Robert Andrews (D-NJ-1)
+
-
+
-
-
NV
+
+
-
-
44%
8. John Boehner (R-OH-8)
S
S
S
+
S
S
S
S
S
S
100%
2. Frank LoBiondo (R-NJ-2)
+
-
+
-
+
+
+
+
+
+
80%
9. Marcy Kaptur (D-OH-9)
-
-
+
-
-
NV
+
+
-
-
33%
3. Jon Runyan (R-NJ-3)
+
+
+
+
+
+
+
+
+
+
100%
10. Dennis Kucinich (D-OH-10)
-
-
-
-
+
-
NV
+
-
-
22%
4. Christopher Smith (R-NJ-4)
+
-
+
-
+
+
+
+
+
+
80%
11. Marcia Fudge (D-OH-11)
-
-
-
-
-
-
+
+
-
-
20%
5. Scott Garrett (R-NJ-5)
+
+
+
+
+
+
-
-
+
+
80%
12. Pat Tiberi (R-OH-12)
+
+
+
+
+
+ NV +
+
+
100%
6. Frank Pallone (D-NJ-6)
-
-
+
-
-
-
+
+
-
-
30%
13. Betty Sutton (D-OH-13)
-
-
+
-
-
-
+
+
-
-
30%
7. Leonard Lance (R-NJ-7)
+
-
+
+
+
+
+
+
+
+
90%
14. Steven LaTourette (R-OH-14)
+
+
+
+
+
+
+
+
+
+
100%
8. Bill Pascrell (D-NJ-8)
-
-
+
-
-
+
+
+
-
-
40%
15. Steve Stivers (R-OH-15)
+
+
+
+
+
+
+
+
+
+
100%
9. Steven Rothman (D-NJ-9)
-
-
+
-
-
+
+
+
-
-
40%
16. James Renacci (R-OH-16)
+
+
+
+
+
+
+
+
+
+
100%
10. Donald Payne (D-NJ-10)
-
-
-
NV
I
I
I
I
I
I
0%
17. Tim Ryan (D-OH-17)
-
-
+
-
-
+
+
+
-
-
40%
11. Rodney Frelinghuysen (R-NJ-11)
+
+
+
-
+
+
+
+
+
+
90%
18. Bob Gibbs (R-OH-18)
+
+
+
+
+
+
+
+
+
+
100%
12. Rush Holt (D-NJ-12)
-
-
+
-
-
-
+
+
-
-
30%
Oklahoma Representatives
1
2
3
4
5
6
7
8
9
10
Score
13. Albio Sires (D-NJ-13)
+
-
+
-
-
+
+
+
-
-
50%
1. John Sullivan (R-OK-1)
+
+
+
+
+
+
-
+
+
+
90%
New Mexico Representatives
1
2
3
4
5
6
7
8
9
10
2. Dan Boren (D-OK-2)
+
+
+
+
-
+
+
+
+
+
90%
1. Martin Heinrich (D-NM-1)
+
-
+
-
-
-
+
+
-
-
40%
3. Frank Lucas (R-OK-3)
+
+
+
+
+
+
+
+
+
+
100%
2. Steve Pearce (R-NM-2)
+
+
+
+
+
+
+
+
+
+
100%
4. Tom Cole (R-OK-4)
+
+
+
+
+
+
+
+
+
+
100%
3. Ben Lujan (D-NM-3)
-
-
+
-
-
-
+
+
-
-
30%
5. James Lankford (R-OK-5)
+
+
+
+
+
+
+
+
+
+
100%
Score
(continued on next page) October 2012 | Construction Equipment Distribution | www.cedmag.com | 35
28_Election_Feature_KP.indd 35
10/1/12 6:03 PM
House votes continued from page 35; see Key on page 33. Oregon Representatives
1
2
3
4
5
6
7
8
9
10
24. Kenny Marchant (R-TX-24)
+
+
+
+
+
+
-
+
+
+
1. Suzanne Bonamici (D-OR-1)
I
I
I
-
-
-
+
+
-
-
Score 28%
25. Lloyd Doggett (D-TX-25)
-
-
+
-
-
-
+
+
-
-
30%
1. David Wu (D-OR-1)
+
-
I
I
I
I
I
I
I
I
50%
26. Michael Burgess (R-TX-26)
+
+
+
+
+
+
-
-
+
+
80%
2. Greg Walden (R-OR-2)
+
+
+
+
+
+
+
+
+
+
100%
27. Blake Farenthold (R-TX-27)
+
+
+
+
+
+
+
+
+
+
100%
3. Earl Blumenauer (D-OR-3)
-
-
+
-
-
-
+
+
-
-
30%
28. Henry Cuellar (D-TX-28)
+
+
+
+
-
+
+
+
-
+
80%
4. Peter DeFazio (D-OR-4)
+
-
+
-
-
+
+
+
-
-
50%
29. Gene Green (D-TX-29)
+
-
+
+
+
+
NV
+
-
-
66%
5. Kurt Schrader (D-OR-5)
+
-
+
-
+
+
+
+
-
-
60%
30. Eddie Bernice Johnson (D-TX-30)
-
-
+
-
-
+
+
NV
-
-
33%
Pennsylvania Representatives
1
2
3
4
5
6
7
8
9
10
31. John Carter (R-TX-31)
+
+
+
+
+
+
-
+
+
+
90%
1. Robert Brady (D-PA-1)
-
-
+
-
-
+
+
+
-
-
40%
32. Pete Sessions (R-TX-32)
+
+
+
+
+
+
+
+
+
+
100%
2. Chaka Fattah (D-PA-2)
-
-
+
-
-
+
+
+
-
-
40%
Utah Representatives
1
2
3
4
5
6
7
8
9
10
Score
3. Mike Kelly (R-PA-3)
+
+
+
+
+
+
+
+
+
+
100%
1. Rob Bishop (R-UT-1)
+
+
+
+
+
+ NV +
+
+
100% 100%
Score
90%
4. Jason Altmire (D-PA-4)
+
+
+
+
-
+
+
+
-
-
70%
2. Jim Matheson (D-UT-2)
+
+
+
+
+
+
+
+
+
+
5. Glenn Thompson (R-PA-5)
+
+
+
+
+
+
-
+
+
+
90%
3. Jason Chaffetz (R-UT-3)
+
+
+
+
+
+
-
+
+
+
90%
6. Jim Gerlach (R-PA-6)
+
+
+
+
+
+
+
+
+
+
100%
Vermont Representatives
1
2
3
4
5
6
7
8
9
10
Score
Peter Welch (D-VT-AL)
+
-
+
-
-
-
+
+
-
-
Virginia Representatives
1
2
3
4
5
6
7
8
9
10
Score
7. Patrick Meehan (R-PA-7)
+
+
+
+
+
+ NV +
+
+
100%
8. Michael Fitzpatrick (R-PA-8)
+
-
+
+
+
+
NV
+
+
88%
9. Bill Shuster (R-PA-9)
+
+
+
+
+
+
+
+
+
+
100%
1. Rob Wittman (R-VA-1)
+
-
+
+
+
+
+
+
+
+
90%
10. Tom Marino (R-PA-10)
+
+
+
+
+ NV +
+
+
+
100%
2. Scott Rigell (R-VA-2)
+
-
+
+
+
+
+
+
+
+
90%
11. Lou Barletta (R-PA-11)
+
+
+
+
+
+
+
+
+
+
100%
3. Robert Scott (D-VA-3)
-
-
+
-
-
-
+
+
-
-
30%
12. Mark Critz (D-PA-12)
+
+
+
+
-
+
+
+
-
+
80%
4. J. Randy Forbes (R-VA-4)
+
+
+
+
+
+
+
+
+
+
100%
13. Allyson Schwartz (D-PA-13)
-
-
+
-
-
+
+
+
-
-
40%
5. Robert Hurt (R-VA-5)
+
+
+
+
+
+
-
-
+
+
80%
14. Mike Doyle (D-PA-14)
-
-
+
-
-
+
+
+
-
-
40%
6. Robert Goodlatte (R-VA-6)
+
+
+
+
+
+
-
-
+
+
80%
15. Charlie Dent (R-PA-15)
+
+
+
+
+
+
+
+
+
+
100%
7. Eric Cantor (R-VA-7)
+
+
+
+
+
+
+
+
+
+
100%
16. Joe Pitts (R-PA-16)
+
+
+
+
+
+
+
+
+
+
100%
8. James Moran (D-VA-8)
-
-
+
-
-
-
+
+
-
-
30%
17. Tim Holden (D-PA-17)
+
+
+
-
-
+
+
+
-
-
60%
9. Morgan Griffith (R-VA-9)
+
+
+
+
+
+
+
+
+
+
100%
18. Tim Murphy (R-PA-18)
+
+
+
+
+
+
+
+
+
+
100%
10. Frank Wolf (R-VA-10)
+
-
+
+
+
+
+
+
+
+
90%
19. Todd Platts (R-PA-19)
+
+
+
+
+
+
+
+
+
+
100%
11. Gerald Connolly (D-VA-11)
+
-
+
-
+
-
+
+
-
+
60%
Rhode Island Representatives
1
2
3
4
5
6
7
8
9
10
Score
Washington Representatives
1
2
3
4
5
6
7
8
9
10
Score
1. David Cicilline (D-RI-1)
+
-
+
-
-
-
NV
+
-
-
33%
1. Jay Inslee (D-WA-1)
+
-
+
-
I
I
I
I
I
I
50%
2. Jim Langevin (D-RI-2)
+
-
+
-
-
-
+
+
-
-
40%
2. Rick Larsen (D-WA-2)
+
-
+
-
-
-
+
+
-
-
40% 100%
+
40%
South Carolina Representatives
1
2
3
4
5
6
7
8
9
10
Score
3. Jaime Herrera Beutler (R-WA-3)
+
+
+
+
+
+
+
+
+
+
1. Tim Scott (R-SC-1)
+
+
+
+
+
+
-
-
+
+
80%
4. Doc Hastings (R-WA-4)
+
+
+
+
+
+
-
+
+
+
90%
2. Joe Wilson (R-SC-2)
+
+
+
+
+
+
-
-
+
+
80%
5. Cathy McMorris Rodgers (R-WA-5) + NV +
+
+
+
+
+
+
+
100%
3. Jeff Duncan (R-SC-3)
+
+
+
+
+
+
-
-
+
+
80%
6. Norm Dicks (D-WA-6)
-
-
+
-
-
+
+
+
-
-
40%
4. Trey Gowdy (R-SC-4)
+
+
+
+
+
+
-
-
+
+
80%
7. Jim McDermott (D-WA-7)
-
-
+
-
-
-
+
+
-
-
30%
5. Mick Mulvaney (R-SC-5)
+
+
+
+
+
-
-
-
+
+
70%
8. Dave Reichert (R-WA-8)
+
-
+
-
+
+
+
+
+
+
80%
33%
6. James Clyburn (D-SC-6)
-
-
+
-
-
+
+
NV
-
-
9. Adam Smith (D-WA-9)
+
-
+
-
+
-
+
+
-
-
South Dakota Representatives
1
2
3
4
5
6
7
8
9
10
Score
West Virginia Representatives
1
2
3
4
5
6
7
8
9
10
Score
50%
Kristi Noem (R-SD-AL)
+
+
+
+
+
+
+
+
+
+
100%
1. David McKinley (R-WV-1)
+
+
+
+
+
+
+
+
+
+
100%
Tennessee Representatives
1
2
3
4
5
6
7
8
9
10
Score
2. Shelley Capito (R-WV-2)
+
+
+
+
+
+
+
+
+
+
100%
1. Phil Roe (R-TN-1)
+
+
+
+
+
+
+
+
+
+
100%
3. Nick Rahall (D-WV-3)
+
+
+
-
-
+
+
+
-
-
2. John Duncan (R-TN-2)
+
+
+
+
+
+
+
+
+
+
100%
Wisconsin Senators
1
2
3
4
5
6
7
8
9
10
Score
3. Chuck Fleischmann (R-TN-3)
+
+
+
+
+
+
+
+
+
+
100%
1. Paul Ryan (R-WI-1)
+
+
+
+
+
+
-
+
+
+
90%
4. Scott DesJarlais (R-TN-4)
+
+
+
+
+
+
+
+
+
+
100%
2. Tammy Baldwin (D-WI-2)
-
-
+
-
-
-
NV
+
-
-
22%
5. Jim Cooper (D-TN-5)
+
-
+
+
-
+
+
+
-
-
60%
3. Ron Kind (D-WI-3)
-
-
+
-
-
-
+
+
-
-
30%
60%
6. Diane Black (R-TN-6)
+
+
+
+
+
+
-
-
+
+
80%
4. Gwen Moore (D-WI-4)
-
-
+
-
-
-
+
+
-
-
30%
7. Marsha Blackburn (R-TN-7)
+
+
+
+
+
+
-
+
+
+
90%
5. F. James Sensenbrenner (R-WI-5)
+
+
+
+
-
-
-
-
+
+
60%
8. Stephen Fincher (R-TN-8)
+
+
+
+
+
+
-
+
+
+
90%
6. Tom Petri (R-WI-6)
+
+
+
+
+
+
+
+
+
+
100%
9. Steve Cohen (D-TN-9)
+
-
+
-
-
-
+
+
-
-
40%
7. Sean Duffy (R-WI-7)
+
+
+
+
+
+
+
+
+
+
100%
Texas Representatives
1
2
3
4
5
6
7
8
9
10
Score
8. Reid Ribble (R-WI-8)
+
+
+
+
+
+
+
+
+
+
100%
1. Louie Gohmert (R-TX-1)
+
+
+
+
+
+
NV
-
+
+
88%
Wyoming Representatives
1
2
3
4
5
6
7
8
9
10
Score
2. Ted Poe (R-TX-2)
+
+
+
+
+
+
-
+
+
+
90%
Cynthia Lummis (R-WY-AL)
+
+
+
+
+
+
+
-
+
+
90%
3. Sam Johnson (R-TX-3)
+
+
+
+
+
+ NV +
+
+
100%
4. Ralph Hall (R-TX-4)
+
+
+
+
+
+
+
+
+
+
100%
5. Jeb Hensarling (R-TX-5)
+
+
+
+
+
+
-
+
+
+
90%
6. Joe Barton (R-TX-6)
+
+
+
+
+
+
+
+
+
+
100%
7. John Culberson (R-TX-7)
+
+
+
+
+
+
-
+
+
+
90%
8. Kevin Brady (R-TX-8)
+
+
+
+
+
+
+
+
+
+
100%
9. Al Green (D-TX-9)
+
-
+
+
-
+
+
+
-
-
60%
10. Michael McCaul (R-TX-10)
+
+
+
+
+
+
-
+
+
+
90%
11. K. Michael Conaway (R-TX-11)
+
+
+
+
+
+
-
-
+
+
80%
12. Kay Granger (R-TX-12)
+
+
+
+
+
+
-
+
+
+
90%
+
+
+
-
80%
13. William Thornberry (R-TX-13)
+
+
+
-
+
+
14. Ron Paul (R-TX-14)
+
+
+ NV NV NV NV
-
+
+
83%
15. Ruben Hinojosa (D-TX-15)
NV
-
+
-
-
44%
16. Silvestre Reyes (D-TX-16)
+
-
+
-
17. Bill Flores (R-TX-17)
+
+
+
+
18. Sheila Jackson Lee (D-TX-18)
-
-
-
-
19. Randy Neugebauer (R-TX-19)
+
+
+
20. Charlie Gonzalez (D-TX-20)
+
-
+
+
-
-
+
+
-
-
+
+
-
-
40%
+
+
-
+
+
+
90%
+
+
+
+
-
-
40%
+
+
+
-
-
+
+
80%
-
-
-
+
+
-
-
40% 90%
21. Lamar Smith (R-TX-21)
+
+
+
+
+
+
-
+
+
+
22. Pete Olson (R-TX-22)
+
+
+
+
+
+
-
-
+
+
80%
23. Francisco Canseco (R-TX-23)
+
+
+
+
+
+
+
+
+
+
100%
House Changes During This Congress Ron Barber (D-AZ-8) Gabrielle Giffords (D-AZ-8) Dennis Cardoza (D-CA-18) Janice Hahn (D-CA-36) Jane Harman (D-CA-36) Geoff Davis (R-KY-4) Thaddeus McCotter (R-MI-11) Donald Payne (D-NJ-10) Mark Amodei (R-NV-2) Christopher Lee (R-NY-26) Anthony Weiner (D-NY-9) Kathy Hochul (D-NY-26) Bob Turner (R-NY-9) Suzanne Bonamici (D-OR-1) David Wu (D-OR-1) Jay Inslee (D-WA-1)
Elected June 12, 2012 Resigned January 25, 2012 Resigned August 15, 2012 Elected July 12, 2011 Resigned February 28, 2011 Resigned July 31, 2012 Resigned July 6, 2012 Died March 6, 2012 Elected September 13, 2011 Resigned February 9, 2011 Resigned June 21, 2011 Elected May 24, 2011 Elected September 13, 2011 Elected January 31, 2012 Resigned August 3, 2011 Resigned March 20, 2012
36 | www.cedmag.com | Construction Equipment Distribution | October 2012
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Election
AED Legislative Scorecard
Senate Votes
The Surface & Air Transportation Extension Act of 2011 extended surface transportation programs for six months (through March 31, 2012) and aviation and airport construction programs for four months (through Jan. 31, 2012). Approved by a voice vote on the floor of the House on Aug. 13, the Senate passed the measure on Aug. 15, 92-2. Senate Vote 92-6-2, Sept. 15, 2011.
4. Three Percent Withholding Tax Repeal (H.R. 674) See page 31, under House Vote 3.
1. Repeal the Job-Killing Healthcare Law Act Amendment
After substantial Republican gains in the 2010 elections, repeal of the Affordable Care Act was the Senate GOP’s top priority for the 112th Congress. Senate Republican Leader Mitch McConnell (R-Ky.) offered an amendment to the FAA Air Transportation Modernization & Safety Improvement Act to fully repeal President Obama’s signature healthcare bill. Though the margin of Democrats to Republicans in the upper chamber was narrower than in the previous Congress, the GOP did not have the firepower to win such a divisive political battle. The amendment fell short, 47-51, preventing its inclusion in the bill. Senate Vote 112-1-9, Feb. 2, 2011.
2. The Comprehensive 1099 Taxpayer Protection & Repayment of Exchange Subsidy Overpayments Act (H.R. 4) See page 31, under House Vote 1.
3. Surface & Air Transportation Programs Extension (H.R. 2887)
The absence of surface transportation and aviation authorizations overlapped in the 112th Congress, necessitating several temporary extensions for both programs.
5. FAA Air Transportation Modernization & Safety Improvement Act (H.R. 658)
More than four years and 23 shortterm extensions after the nation’s last long-term Federal Aviation Administration (FAA) authorization law expired, Congress finally completed work on a multiyear aviation law. The FAA Modernization & Reform Act (H.R. 658) provided $63.4 billion for the agency through 2015. In addition to setting agency policy and operations, the legislation set investment levels for the Airport Improvement Program (AIP), which awards grants for airport construction. The bill authorized the AIP at flat funding levels, $3.35 billion annually, providing certainty to airport construction markets that have had to deal with more than four years of uncertainty and an FAA shutdown over in summer 2011 that halted projects across the country. Following a lengthy conference committee process, the House passed and the Senate followed suit, 75-20, approving H.R. 658. Senate Vote 112-2-15, Feb. 6, 2012.
6. Keystone XL Pipeline Approval Amendment Much to the dismay of AED and other advocates for job and energy security, the administration rejected approval for the Keystone XL pipeline on
Jan. 18, 2012. As the Senate neared the completion of a surface transportation reauthorization bill (MAP-21), Republicans saw the measure as a vehicle for ancillary provisions, including consent for the Keystone project. The pipeline is expected to create up to 13,000 construction jobs and bring 830,000 barrels of oil per day to U.S. refineries. Sen. John Hoeven (R-N.D.), one of the leading advocates for the Keystone XL pipeline in the Senate, attempted to attach a provision to MAP-21 to give congressional approval to the project. While a majority of the Senate favored the amendment, 56-42, it fell four votes short of the necessary 60-vote threshold to be adopted, following intense lobbying of moderate Democratic senators by President Obama. Senate Vote 112-2-34, March 8, 2012.
7. Highway Program “Devolution” Amendment
Lawmakers advocating for the dismantlement of the federal highway program were not limited to the House. In fact, several Republican senators took the lead in pushing proposals to transfer to the states the primary responsibility of funding our nation’s roads and bridges. De facto leader of the Tea Party caucus, Sen. Jim DeMint (R-S.C.), attempted to attach an amendment to MAP-21 to devolve the federal highway program to the authority of the individual states. DeMint and others assert that states are better suited than the federal government to address their local transportation needs. AED and its allies have been making the case that a strong federal role is necessary to ensure adequate infrastructure investment and avoid a nation with a patchwork of roads, highways, and bridges. Additionally, federal transportation policy, programs, and resources need to support U.S. global competitiveness, international trade, interstate commerce, interstate passenger (continued on next page)
October 2012 | Construction Equipment Distribution | www.cedmag.com | 37
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Election (“AED Legislative Scorecard – Senate Votes” continued from page 37)
9. MAP-21 (S. 1813)
travel, and national defense, which are all compelling national interests. Following aggressive lobbying by the construction industry, the amendment failed 30-67. Senate Vote 112-2-36, March 13, 2012.
8. “State Opt-Out” Amendment
Similar to Sen. DeMint’s effort, Sen. Rob Portman (R-Ohio) offered an amendment to MAP-21 to reduce the federal role in surface transportation. Portman’s proposal would have permitted states the option to have all of their federal gas tax payments returned as a block grant for maintaining highway and transit funding, effectively allowing them to opt-out of the federal program. The Portman amendment is based on the same flawed logic as other infrastructure devolution initiatives. AED believes that without a strong federal role in transportation, there is no guarantee that states would prioritize transportation investments that support national interests over more localized needs. The amendment did not gain enough support to be attached to MAP-21 and was voted down 30-68. Senate Vote 112-2-43, March 13, 2012.
Led by Environment & Public Works Committee Chairman Barbara Boxer (D-Calif.) and Ranking Member Jim Inhofe (R-Okla.), the Senate made highway reauthorization a priority. Moving Ahead for Progress in the 21st Century (MAP-21) (S. 1813) authorized investment for surface transportation programs for two years at current levels (plus an adjustment for inflation). The bill also streamlined the project delivery process and made it more difficult to divert road money to projects with little transportation value. Boxer and Inhofe’s determination and persistence resulted in Senate passage of S. 1813 on March 14, 74-22, as 22 Republicans joined a united Democratic caucus in support of the bill. The Senate’s swift action effectively forced the House to act and eventually agree to a conference committee. Senate Vote 112-2-48, March 14, 2012
10. MAP-21 Conference Report Final Passage See page 32, under House Vote 8.
How the U.S. Senate Voted on Select Issues Key
Vote numbers (across the top): 1. Repeal the Job-Killing Healthcare Law Act Amendment 2. The Comprehensive 1099 Taxpayer Protection & Repayment of Exchange Subsidy Overpayments Act (H.R. 4) 3. Surface & Air Transportation Programs Extension (H.R. 2887) 4. Three Percent Withholding Tax Repeal (H.R. 674) 5. FAA Air Transportation Modernization & Safety Improvement Act (H.R. 658) 6. Keystone XL Pipeline Approval Amendment 7. Highway Program “Devolution” Amendment 8. “State Opt-Out” Amendment 9. MAP-21 (S. 1813) 10. MAP-21 Conference Report Final Passage
Numbers before/after names signify district.
Symbols Y: Voted Yes (No position by organization) N: Voted No (No position by organization) + Voted With Us – Voted Against Us P Voted Present NV Did Not Vote I Not in Office
AED Vote Position
1
2
3
4
5
6
7
8
9
10
+
+
+
+
+
+
-
-
+
+
4
Score
Colorado Senators
1
2
3
4
5
6
7
8
9
10
Michael Bennet (D-CO)
-
+
+
+
+
-
+
+
+
NV
77%
Mark Udall (D-CO)
-
+
+
+
+
-
+
+
+
NV
77%
1
2
3
4
5
6
7
8
9
10
Score
NV +
+
+
+
-
+
+
+
+
88%
Connecticut Senators
Score
Alabama Senators
1
2
3
5
6
7
8
9
10
Score
Jeff Sessions (R-AL)
+
+
+ NV +
+
-
+
+
+
88%
Richard Shelby (R-AL)
+
+
+
+
+
+
+
+
+
+
100%
Richard Blumenthal (D-CT)
-
+
+
+
-
-
+
+
+
+
70%
Alaska Senators
1
2
3
4
5
6
7
8
9
10
Score
Delaware Senators
1
2
3
4
5
6
7
8
9
10
Score 80%
Joseph Lieberman (I-CT)
Mark Begich (D-AK)
-
+
+
+
+
+
+
+
+
+
90%
Thomas Carper (D-DE)
-
+
+
+
+
-
+
+
+
+
Lisa Murkowski (R-AK)
+
+
+
+
+
+
+
+
+
+
100%
Chris Coons (D-DE)
-
+
+
+
+
-
+
+
+
+
80%
Arizona Senators
1
2
3
4
5
6
7
8
9
10
Score
Florida Senators
1
2
3
4
5
6
7
8
9
10
Score
+
Jon Kyl (R-AZ)
+
+
+
+
+
-
-
-
+
70%
Marco Rubio (R-FL)
+
+ NV +
+
+
-
-
-
-
55%
John McCain (R-AZ)
+
+
+ NV +
+
-
-
-
-
55%
Bill Nelson (D-FL)
-
+
+
-
+
+
+
+
80%
+
+
Arkansas Senators
1
2
3
4
5
6
7
8
9
10
Score
Georgia Senators
1
2
3
4
5
6
7
8
9
10
Score
John Boozman (R-AR)
+
+
+
+
+
+
-
-
+
+
80%
Saxby Chambliss (R-GA)
+
+
+
+
+
+
-
-
+
+
80%
Mark Pryor (D-AR)
-
+
+
+
+
+
+
+
+
+
90%
Johnny Isakson (R-GA)
+
+
+
+
+
+
-
-
+
+
80%
California Senators
1
2
3
4
5
6
7
8
9
10
Score
Hawaii Senators
1
2
3
4
5
6
7
8
9
10
Score
Dianne Feinstein (D-CA)
-
+
+
+
+
-
+
+
+
+
80%
Daniel Inouye (D-HI)
-
-
+ NV +
-
+
+
+
NV
62%
Barbara Boxer (D-CA)
-
+
+
+
+
-
+
+
+
+
80%
Daniel Akaka (D-HI)
-
-
+
-
+
+
+
+
60%
+
-
38 | www.cedmag.com | Construction Equipment Distribution | October 2012
28_Election_Feature_KP.indd 38
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e
%
%
e
%
%
e
%
%
e
%
%
e
%
%
e
%
%
Idaho Senators
1
2
3
4
5
6
7
8
9
10
Michael Crapo (R-ID)
+
+
+
+
-
+
-
+
NV
-
Jim Risch (R-ID)
+ NV +
+
-
+
-
+
-
-
Illinois Senators
1
4
5
6
7
8
9
10
+
-
+
+
+
2
3
Score
Richard Burr (R-NC)
+
+
+
+
+
+
-
-
-
+
70%
66%
North Dakota Senators
1
2
3
4
5
6
7
8
9
10
Score
55%
Kent Conrad (D-ND)
-
+
+
+ NV +
+
+
+
+
88%
John Hoeven (R-ND)
+
+
+
+
+
+
+
+
+
+
100% Score
Score
Richard Durbin (D-IL)
-
-
+
+
+
70%
Ohio Senators
1
2
3
4
5
6
7
8
9
10
Mark Kirk (R-IL)*
+
+
+
+ NV NV NV NV NV NV
100%
Sherrod Brown (D-OH)
-
+
+
+
-
-
+
+
+
+
70%
Indiana Senators
1
2
3
4
Score
Rob Portman (R-OH)
+
+
+
+
+
+
-
-
-
-
60%
5
6
7
8
9
10
Richard Lugar (R-IN)
+
+
+
+
+
+
-
-
-
+
70%
Oklahoma Senators
1
2
3
4
5
6
7
8
9
10
Dan Coats (R-IN)
+
+
+
+
+
+
-
-
-
-
60%
Tom Coburn (R-OK)
+
+
-
+
+
+
-
-
-
NV
55%
Iowa Senators
1
2
3
4
5
6
7
8
9
10
Score
James Inhofe (R-OK)
+
+
+
+
+
+
-
+
+
+
90%
Charles Grassley (R-IA)
+
+
+
+
+
+
-
-
+
+
80%
Oregon Senators
1
2
3
4
5
6
7
8
9
10
Score
Tom Harkin (D-IA)
-
-
+
+
-
-
+
+
+
+
60%
Jeff Merkley (D-OR)
-
+
+
+
-
-
+
+
+
+
70%
Kansas Senators
1
2
3
4
5
6
7
8
9
10
Score
Ron Wyden (D-OR)
-
+
+
+
+
-
+
+
+
+
80%
Pat Roberts (R-KS)
+
+
+
+
+
+
-
-
+
+
80%
Pennsylvania Senators
1
2
3
4
5
6
7
8
9
10
Score
Jerry Moran (R-KS)
+
+
+
+
+
+
-
-
+
-
70%
Bob Casey (D-PA)
-
+
+
+
-
+
+
+
+
+
80%
Kentucky Senators
1
2
3
4
5
6
7
8
9
10
Patrick Toomey (R-PA)
+
+
-
+
+
+
-
-
-
-
Rand Paul (R-KY)
+
+
-
+
-
+
-
-
-
-
40%
Rhode Island Senators
1
2
3
4
5
6
7
8
9
10
Score
Mitch McConnell (R-KY)
+
+
+
+
+
+
+
-
-
+
80%
Jack Reed (D-RI)
-
+
+
+
+
-
+
+
+
+
80%
Louisiana Senators
1
2
3
4
5
6
7
8
9
10
Score
Sheldon Whitehouse (D-RI)
-
+
+
+
+
-
+
+
+
+
80%
David Vitter (R-LA)
+
+
+
+ NV
+
-
-
+
+
77%
South Carolina Senators
1
2
3
4
5
6
7
8
9
10
Score
Mary Landrieu (D-LA)
-
+
+
+
+
+
+
+
+
+
90%
Jim DeMint (R-SC)
+
+
-
+
-
+
-
-
-
-
Maine Senators
1
2
3
4
5
6
7
8
9
10
Score
Lindsey Graham (R-SC)
+
+
+
+
+
+
-
-
-
-
Susan Collins (R-ME)
+
+
+
+
+
+
+
+
+
+
100%
South Dakota Senators
1
2
3
4
5
6
7
8
9
10
Score
Olympia Snowe (R-ME)
+
+
+
P
+
+
+
+
+
P
100%
Maryland Senators
1
2
3
4
5
6
7
8
9
10
Score
Barbara Mikulski (D-MD)
-
-
+
+
-
-
+
+
+
+
60%
Benjamin Cardin (D-MD)
-
+
+
+
-
-
+
+
+
+
70%
Massachusetts Senators
1
2
3
4
5
6
7
8
9
10
Score
Scott Brown (R-MA)
+
+
+
+
+
+
+
+
+
+
100%
John Kerry (D-MA)
-
+
+
+
+
-
+
+
+
+
80%
Michigan Senators
1
2
3
4
5
6
7
8
9
10
Score
Score
80%
Score
50%
40% 60%
John Thune (R-SD)
+
+
+
+
+ NV +
+
+
+
Tim Johnson (D-SD)
-
+
+
+
+
-
+
+
+
+
80%
Tennessee Senators
1
2
3
4
5
6
7
8
9
10
Score
Lamar Alexander (R-TN)
+
+
+
+
+
+
+
-
+
NV
88%
Bob Corker (R-TN)
+
+
+
+
+
+
-
-
-
-
60%
Texas Senators
1
2
3
4
5
6
7
8
9
10
John Cornyn (R-TX)
+
+
+
+
+
+
-
-
-
-
60%
Kay Bailey Hutchinson (R-TX)
+
+
+
+
+
+
-
+
+
+
90%
5
7
8
9
10
Score
Carl Levin (D-MI)
-
-
+
+
+
-
+
+
+
+
70%
Utah Senators
1
2
3
4
Debbie Stabenow (D-MI)
-
+
+
+
-
-
+
+
+
+
70%
Orrin Hatch (R-UT)
+
+
+
+ NV
+
6
Minnesota Senators
1
2
3
4
5
6
7
8
9
10
Score
Mike Lee (R-UT)
+
+
-
+
-
+
NV NV NV -
-
Score
-
83%
-
-
40%
Amy Klobuchar (D-MN)
-
+
+
+
-
-
+
+
+
+
70%
Vermont Senators
1
2
3
4
5
6
7
8
9
10
Score
Al Franken (D-MN)
-
+
+
+
-
-
+
+
+
+
70%
Patrick Leahy (D-VT)
-
-
+
+
-
-
+
+
+
+
60%
Mississippi Senators
1
2
3
4
5
6
7
8
9
10
Score
Bernard Sanders (I-VT)
-
-
+
+
-
-
+
+
+
+
60%
Thad Cochran (R-MS)
+
+
+
+
+
+
+
-
+
+
90%
Virginia Senators
1
2
3
4
5
6
7
8
9
10
Score
Roger Wicker (R-MS)
+
+
+
+
+
+
-
-
+
+
80%
-
+
+
+
+
+
+
+
+
+
90%
Missouri Senators
1
2
3
4
5
6
7
8
9
10
Score
NV +
+
+
+
-
+
+
+
+
88%
Claire McCaskill (D-MO)
-
+
+
+
-
+
+
+
+
+
80%
Washington Senators
4
5
6
7
8
9
10
Score
Roy Blunt (R-MO)
+
+
+
+
+
+
+
+
+
+
100%
80%
Montana Senators
1
2
3
4
5
6
7
8
9
10
Score
Max Baucus (D-MT)
-
+
+
+
+
+
+
+
+
+
90%
Jon Tester (D-MT)
-
+
+
+
+
+
+
+
+
+
90%
Nebraska Senators
1
2
3
4
5
6
7
8
9
10
Score
Mike Johanns (R-NE)
+
+
+
+
+
+
+
-
-
+
Ben Nelson (D-NE)
-
+
+
+
+
-
+
+
+
+
Nevada Senators
1
2
3
4
5
6
7
8
9
10
Score
Jim Webb (D-VA) Mark Warner (D-VA)
1
2
3
Maria Cantwell (D-WA)
-
+
+
+
+
-
+
+
+
+
Patty Murray (D-WA)
-
-
+
+
+
-
+
+
+
+
70%
West Virginia Senators
1
2
3
4
5
6
7
8
9
10
Score
John Rockefeller (D-WV)
-
+
+
+
+
-
+
+
+
+
80%
Joe Manchin (D-WV)
-
+
+
+
+
+
+
+
+
+
90%
80%
Wisconsin Senators
1
2
3
4
5
6
7
8
9
10
Score
80%
Herb Kohl (D-WI)
-
+ NV +
+
-
+
+
+
+
77%
Ron Johnson (R-WI)
+
+
+
+
+
-
-
-
-
50%
5
-
John Ensign (R-NV)
+
+
|
|
|
|
|
|
|
|
100%
Wyoming Senators
1
2
3
4
6
7
8
9
10
Harry Reid (D-NV)
-
-
+
+
+
-
+
+
+
+
70%
John Barrasso (R-WY)
+
+
+
+ NV
+
+
+
-
-
77%
Dean Heller (R-NV)
I
I
+
+
+
+
+
-
+
+
87%
Michael Enzi (R-WY)
+
+
+
+
+
+
+
-
-
80%
Score
New Hampshire Senators
1
2
3
4
5
6
7
8
9
10
Kelly Ayotte (R-NH)
+
+
+
+
+
+
-
-
-
-
Jeanne Shaheen (D-NH)
-
+
+
+
+
-
+
+
+
+
80%
New Jersey Senators
1
2
3
4
5
6
7
8
9
10
Score
Robert Menendez (D-NJ)
-
+
+
+
+
-
+
+
+
+
80%
Frank Lautenberg (D-NJ)
-
-
+
+
+
-
NV
+
NV
+
62%
New Mexico Senators
1
2
3
4
5
6
7
8
9
10
Score
Jeff Bingaman (D-NM)
-
+
+
+
+
-
+
+
+
+
80%
Tom Udall (D-NM)
-
+
+
+
+
-
+
+
+
+
80%
New York Senators
1
2
3
4
5
6
7
8
9
10
Score 70%
+
Score
60%
Charles Schumer (D-NY)
-
-
+
+
+
-
+
+
+
+
Kirsten Gillibrand (D-NY)
-
+
+
+
-
-
+
+
+
+
70%
North Carolina Senators
1
2
3
4
5
6
7
8
9
10
Score
Kay Hagan (D-NC)
-
+
+ NV +
+
+
+
+
+
88%
Senate Changes During This Congress John Ensign (R-NV): Resigned May 3, 2011 Dean Heller (R-NV): Appointed May 9, 2011
*Sen Kirk suffered a major stroke early in 2012 and has been recovering out of Washington since that time
October 2012 | Construction Equipment Distribution | www.cedmag.com | 39
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10/1/12 6:03 PM
Hazmat Heartburn and How to Avoid It
Regulatory
One dealer’s run-in with the federal hazardous materials transportation rules and what you need to know to stay of out trouble. By Patrick McConnell
Recently our company had the misfortune of experiencing the federal Hazardous Materials Regulations (HMR) “up close and personal.” This small business (about 50 employees) learned a painful lesson through a combination of bad luck and an incomplete awareness of the HMR. The result was a substantial civil penalty. I hope that our experience will prompt you to take preventive measures rather than waiting to become a fish in the barrel. Before relating our sad story let me impress you with how much I’ve learned. First, the rules are based on the statute formerly known as the Hazardous Materials Transportation Act, 49 United States Code (U.S.C.) §§ 5101–5128. They span over 1,000 pages in Title 49 Code of Federal Regulations (CFR) parts 171-180. (Yes, the HMR are available on-line free of charge; just search “49 CFR hazardous materials” on Google.) You don’t need to read all 1,000-plus pages, but being familiar with their structure and potential application to your business is essential. The HMR are different from the hazardous waste and disposal rules issued by the EPA, state and local authorities, which focus on environmental issues. The HMR address transportation-related issues only. They are issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA), an agency of the U.S. Department of Transportation. However,
What is “ORM-D?” According to Wikipedia, ORM-D is a marking for mail or shipping in the United States that identifies other regulated materials for domestic transport only. Packages bearing this mark contain hazardous material in a limited quantity that presents a limited hazard during transportation, due to its form, quantity, and packaging.
they are enforced by the agency responsible for regulating the particular mode of transportation (i.e., the Federal Aviation Administration when transported by air, Federal Railroad Administration when transported by rail, etc.). The primary purpose of the HMR is to ensure safety when transporting these materials. Therefore, portions of the HMR (i.e., parts 171-173) apply to all modes of transportation and specific rules cover shipment by rail, vessel, air and public highway. These can be found in parts 174-177, respectively. In spite of the HMR’s broad scope, it’s not that difficult to determine whether a material is considered hazardous for shipping purposes. The best place to start is 49 CFR § 172.101 (from now on I’ll just cite the section number since all references are to Title 49 CFR). That section contains the Hazardous Materials Table and it summarizes the requirements that apply to any hazardous materials (hazmat) transportation. The table is arranged alphabetically, and while many of the items have chemical or other scientificsounding names there are also very basic ones like Paint and various Petroleum Products. If the item is listed, the table points you to the other regulatory requirements as well as any exceptions that may apply. A second excellent resource is the transportation section of the product’s Materials Safety Data Sheet (MSDS), which alerts you that the item is a hazmat by listing the proper shipping name, UN classification, packing group, and other particulars. The HMR apply if you are a hazmat employer; your employees who perform any of the pre-transportation functions listed in § 171.1(b) are hazmat employees and other employees may also be covered. Both terms are essential to your understanding of HMR; they are defined in § 171.8. If your dealership prepares and ships hazmat only once in a while or every day, you are a hazmat employer. Consequently, your hazmat employees must be trained in
40 | www.cedmag.com | Construction Equipment Distribution | October 2012
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10/1/12 6:06 PM
Hazmat Tips at a Glance
Note: This is not intended to be an exhaustive list; however, the requirements referenced below are applicable to most hazmat shipments. All regulatory citations are to Title 49 CFR. 1) Review the Hazmat Table (§ 172.101) to see if the specific material you want to ship is listed. If so, it is a hazmat subject to the HMR. 2) Before preparing a hazmat shipment for transportation make sure that your hazmat employees have received the required training (§ 172.700). 3) Determine the mode of transportation to be used and review the applicable rules (parts 174-177) in addition to those referenced below. 4) Consult the Hazmat Table again to determine: (a) The hazmat description and proper shipping name (Column 2) (b) The specific requirements for - (i) classifying (Column 3), (ii) identifying (Column 4), (iii) determining the packing group (Column 5), and (iv) labeling (Column 6) (c) The special provisions (Column 7 and § 172.102) that may apply (d) Any packaging exceptions, including whether the item may be shipped as a consumer commodity (Column 8A) (e) The applicable quantity limitations for passenger aircraft/rail and cargo aircraft (Column 9); and (f) Any unique requirements for vessel stowage (Column 10) 5) Consult the applicable sections of part 172 to determine the - (a) Marking requirements (subpart D); (b) Shipping paper requirements (subpart C); (c) Placarding requirements (subpart F); (d) Emergency response information (subpart G); and (e) Training requirements for your hazmat employees (subpart H) 6) Review the general requirements for shipments and packagings (part 173)
accordance with 49 CFR subpart H, which begins with § 172.700. Training consists of general awareness/familiarization, function-specific training, safety training and security training. Recurrent training is also required, and needless to say, all of it must be appropriately documented. A variety of different rules apply to any hazmat shipment. For example, there are requirements to properly classify, describe, mark, label and package the particular material, as well as to prepare shipping papers and provide emergency response information. Many of these requirements are shown in the Hazmat Table (by referencing the appropriate section of the HMR); others have to be hunted down. A Series of Unfortunate Events Our case started innocently enough. We received several cans of touch-up paint from a manufacturer and stocked them in inventory. Subsequently, a customer in Hawaii requested them and so we placed the original cans in a similar outer packaging. We thought the shipment would go
Regulations
by vessel – the UPS website stated it would go via “ground;” however, UPS sent it by air. By the time the package reached the customer, (actually there were two other boxes containing parts the customer had ordered), the boxes and some contents had been damaged, and one of the four cans of paint had leaked. The customer refused delivery, and that’s when the proverbial poop hit the fan, because when UPS took back the shipment, someone noticed that the paint box did not have the required ORM-D label to indicate its hazmat contents. And because it had shipped air rather than ground/vessel, it was now a matter for the FAA. (See related sidebar on page 42.) Now, it won’t come as much of a surprise to anyone that air and rail shipments are more stringently regulated and in many cases there’s even a difference between what may be shipped on a passenger versus a cargo airplane. But the HMR cover all modes of transportation and the specific requirements depend mostly on the risk associated with the shipment. Paint is considered hazmat because it is a flammable liquid, although in certain cases it can be re-classed and shipped as a consumer commodity (items for personal or household use – also defined in § 171.8) and shipped in limited quantities. The HMR contains exceptions from many of the requirements for consumer commodities; however, they are still considered hazmat and therefore are regulated. In virtually every case of an undeclared hazmat shipment, or at least those that become enforcement cases, the government finds out about them because the containers are damaged and the shipments leak. The HMR requires the transportation providers to report such incidents. (Only a very small percentage of undeclared shipments are discovered because most of them never leak. And even if the damage was caused by the carrier, the investigating agency focuses on how the material was prepared for shipment rather than how it was handled.) After receiving an incident report, a government investigator goes to the scene and takes pictures showing the package, marking and label (or the absence thereof), the damage incurred during or after shipment, etc. Other evidence, such as shipping documents, personnel statements, the applicable MSDS and other documents are assembled into what the FAA (in our case) calls an Enforcement Investigative Report (EIR). You typically receive notice from the transportation provider, which does its own investigation. The next thing you know, a certified letter arrives from the enforcement agency explaining what occurred, requesting further data and inviting you to submit any other information. In the FAA world, this is known as a letter of investigation. We took this quite seriously and, among other things, informed the enforcing agency that we would no longer ship paint or any other hazmat. Nevertheless, about a year later we received a Notice of Proposed Civil Penalty. We (continued on next page)
October 2012 | Construction Equipment Distribution | www.cedmag.com | 41
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10/1/12 6:06 PM
Regulations
Case of the Missing Sticker By Kim Phelan
Maybe a private detective could unravel the mystery of the shipping debacle experienced by ClydeWest, but at the end of the day, the Federal Aviation Administration penalty has been meted out, and some details surrounding the discovered violation will probably never be brought to light. Today, as a result of AED’s legal counsel and a compromise negotiated with the FAA on behalf of the dealer, a painful $47,250 fine was reduced by half; and, weary from the ordeal, Clyde-West President Pat McConnell is ready to move on. As for Jason Kopacz, the shipping manager for the dealership’s Portland, Ore., branch who prepared the customer’s order for shipment to Hawaii, frustration is felt all the more acutely because he’s certain he placed an ORM-D label on the package containing paint, and the fact that it’s missing in the photographs of the box is extremely vexing for a guy who’s been doing shipping and receiving for 25 years, and nine years at Clyde-West. He’s also dismayed that the package went by UPS “Air” when he clearly selected “Ground” as the mode of transportation, assuming ocean vessel not airplane would take the boxes he sent over the Pacific. It was UPS that made the switch, unbeknownst to Kopacz. His theory is that the paint package made the air travel without incident, but was likely damaged in the UPS truck in Hawaii, en route to the customer. It was that damage that set the wheel of misfortune spinning. When the damaged, paint-tainted package arrived to the customer, it was refused (as was the broken windshield that was also being delivered). Now that the hazmat contents were revealed and the ORM-D sticker conspicuously missing, the investigation and reporting protocols ensued – and Clyde-West became the low-hanging fruit for an easy, virtually indisputable federal regulatory citation and fine. At what point the ORM-D label was separated from its box is anyone’s guess. With singed fingers from the incident, the dealership has indefinitely suspended shipping of paint and other hazmat material, a blow both on its customer service and revenue. It’s tough to identify a “lesson” as a result of the whole affair, since Kopacz is convinced he played by the rules by correctly labeling the shipment and selecting a credible option of “Ground,” on the UPS computer menu. Nevertheless, he offers a caution for other dealer parts departments. “Double check everything,” he said. “Cross all your t’s, dot all your i’s; make two phone calls if you have to. If it’s going to mean that the shipment’s going to be a day late because you’ve got to check on something, then that’s just the way it’s got to be – no rushing anything out because the salesman is in a hurry or the customer’s in a hurry. Just take your time and make sure it’s done right.”
(“Hazmat Heartburn and How to Avoid It” continued from page 41)
hired outside regulatory counsel with experience in these cases and several months later reached a settlement agreement with the government. Our lawyer referred to undeclared hazmat enforcement cases as “shooting fish in a barrel.” The government need only prove that the company committed a “knowing” violation. No need to prove that a company intended to violate the rules (although intent could be grounds for criminal prosecution). For civil penalty cases, the enforcing agency need only establish that you knew what you shipped. We all learned in Civics 101 that “ignorance of the law is no excuse” and that is certainly true when it comes to the HMR. We offered mitigating evidence during the informal resolution process and the FAA was flexible but only to a point. The final result was still painful. The government doesn’t mess around with these cases. The law provides maximum civil penalties of $50,000 for most HMR violations and virtually all undeclared shipments involve many alleged violations. To put this in perspective, the maximum civil penalty for a non-hazmat, aviation safety violation is $25,000. So, while we are very disappointed that the FAA hit our small company pretty hard, it was nowhere near the maximum that could have been imposed. The government is not looking to put anyone out of business by bringing these cases, but it does want to send a clear message. The best advice I can provide is to avoid a similar mistake – so make a list of all materials that you ship that may be considered hazmat. Then consult the Hazmat Table and, if the item is listed, do not prepare or offer it for shipment unless you are certain that you are in compliance with 49 CFR. When we evaluated our situation we determined that we would not ship hazmat, period. Instead, we will require customers to pick up paint or similar material at our centers and if that isn’t feasible (as with our customer in Hawaii) we will facilitate a direct shipment from the manufacturer. You may reach a different conclusion but, if you do, be sure that all your hazmat employees have received documented training and that you comply with the specific requirements associated with each different material and specific shipping methods. n Patrick McConnell is president of Clyde-West, Inc., the Volvo dealership based in Portland, Ore.
Marshall Filler, a managing member at the law firm of Obadal, Filler, MacLeod & Klein, PLC in Alexandria, Virginia and expert in federal hazmat issues, assisted in the preparation of this article. If you have questions about hazmat issues, Marshall can be reached at marshall.filler@potomac-law.com. Patrick McConnell
42 | www.cedmag.com | Construction Equipment Distribution | October 2012
40_McConnell_Feature_KP.indd 42
10/1/12 6:06 PM
Finance programs designed to keep your equipment moving
The right equipment finance programs are critical to helping you sell equipment. So work with an equipment financier that knows the difference between a dozer and a grader and continues to offer consistent, professional service year after year. Whether you sell equipment in the U.S. or Canada, or both, we can help. Choose finance programs that make sense for you and your customers, including: • Inventory and fleet rental finance programs • Retail finance programs for your customers • Loans and leases for capital asset purchases such as service and delivery vehicles for your business • Manufacturer subsidy programs Ready to learn more? Call today. Sidney Sexson, Senior Vice President Wells Fargo Equipment Finance 480-784-9667 • sidney.p.sexson@wellsfargo.com wellsfargo.com/construction © 2011 Wells Fargo Equipment Finance, Inc. All rights reserved. All applications are subject to credit approval. Canadian coverage provided by Wells Fargo Equipment Finance Company, a company that is not regulated as a financial institution, a bank holding company or an insurance holding company in Canada.
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10/18/1111:35 3:06AM PM 7/21/11
Workforce
Got Techs? Chances are, you’d hire if you could. Here’s what happens when dealers stick to the stealing strategy rather than engaging in genuine technician development. By Steve Johnson
We’ve all heard the terms “industry cycle” and “economic cycle,” and experienced their ebbs and flows. One can define those cycles as the natural fluctuations of the industry and/or economy between periods of expansion or growth, and contraction or recession. Five years ago, our industry was reaping the rewards of the expansion segment of the cycle. Today, we all feel that we are way more familiar with the contraction segment than we wanted or hoped to be – ever. Many things are cyclical; in fact I’ve heard some people say that everything is cyclical, including technician supply and demand. However, I beg to differ when it comes to equipment industry technician recruitment and development. Sure, technician demand varies with the industry and economic cycles. However, to me it seems that over time the downturns only temporarily disguise a fundamental structural situation that remains much the same through the ups and downs: n Many career and technical schools struggle because of scarce program resources. n Federal and state governments, and other supporting organizations, must cut spending, and technical schools are not immune.
n Traditional
technical student prospect pools continue to dry up; there are no easy solutions. n Old industry and “vocational” career stereotypes persist. n The equipment technician workforce average age has increased. n In downturns, a number of techs leave the industry for a variety of reasons and don’t return. n Equipment dealers still can’t find enough qualified technicians. n The No. 1 strategy for finding techs when the demand hits is, “steal from your competitor.” As to the last couple bullet points, there are numbers that support the longer-term “scarcity of techs” outlook. For example, the Federal Bureau of Labor Statistics estimates that through 2020, for their data bucket titled “Mobile Heavy Equipment Mechanics, except Engines,” 10-year employment growth will be greater than 16 percent, with average annual job openings of 5,250. That doesn’t even include demand for techs in engines, ag, and heavy truck. Perhaps more to the point, we in the industry are now hearing the same workforce conversations people
44 | www.cedmag.com | Construction Equipment Distribution | October 2012
44_workforce_Feature_Index_KP.indd 44
10/1/12 6:08 PM
Workforce
had last time around; the same anecdotes – the same frustrations. We’re starting to experience the technician shortage again, with its implications for dealer operations and profitability. As our industry sector continues to slog through this slow recovery, those experiences will intensify. The AED Foundation has presented a number of articles in AED media about the importance and benefits of dealer engagement; working with local technical colleges and addressing technician recruitment issues to meet mutual needs. Let’s look at it a different way here and ask a question: “What can happen when dealers are not involved?” When Dealers Don’t Get Involved: Scenario 1 Let’s assume that U.S. dealer shop rates average $89.22 per hour, the rate reported in AED’s last workforce needs research survey. Let’s also assume that to service customer demand, another full-time technician needs to be hired but cannot be found, no more overtime is available, and the customer is forced to go elsewhere. What is the lost “opportunity cost” in service revenue to the dealer? The box below shows that analysis and the lost business – $154 million in potential service revenue gone. How easy is that to tolerate?
When You Have a Job Opening and Can’t Find a Technician What Does It Cost You? To determine the lost opportunity cost to the dealer when enough technicians can’t be hired to meet local market demand, assume an 80 percent recovery rate per week for a total of 36 hours that are billable. One technician at 80 percent efficiency (recovery rate) x 45 hours/week = 36 billable hours Therefore, 36 billable hours x $89.22 average U.S. retail shop rate = $3,212 billable Lost Per Week Extending this scenario further, After vacation, holidays, sick days, etc., the technician works 48 weeks, 48 weeks x $3,212 billable Lost Per Week = $154,176 in Service Revenue Opportunity Lost
When Dealers Don’t Get Involved: Scenario 2 As mentioned before, according to AED research, the No. 1 strategy for finding these scarce technicians is stealing from competitors. Now, maybe you can get one to jump ship for another $3 per hour; hopefully they know what they’re doing and they’re worth that. You hire this person. Now, what if your competitor offers $1.50 more per hour to get this tech back, or another competitor enters the bidding? This can turn into a vicious circle of technician job market churn, where the same technicians are moving employer to employer through a revolving door. Any good company-employee relationships become difficult to establish and maintain. The constant “learning curve” resulting from the revolving door has its own resulting dealer costs. Customers may perceive dealer instability when they see key contacts – in many cases the front-line technicians – changing all the time. In the end, it just drives up labor costs and doesn’t really benefit any of the dealers. When Dealers Don’t Get Involved: Scenario 3 All the time I hear stories from AED Accredited technical colleges that sound something like this: “A dealer manager called me up and said he needed two to three technicians.” Unfortunately, in many instances, the college program has to respond by saying all the graduating students are spoken for. Dealers who sponsored or assisted the students in different ways are now hiring them. Even if there are some hiring candidates remaining, do you want to only be able to hire whoever’s left? Unspoken in the conversation is what else the dealer missed out on: n The ability to observe the students when visiting the college and during internships and see who are the truly best candidates for employment at the dealership n The ability to develop relationships with the students and demonstrate to them how their dealership presents an excellent opportunity to start their careers and grow professionally n The ability to provide meaningful input about course and lab content, as well as subject area emphases such as diesel engine, hydraulics/hydrostatics, electric/electronics, power trains, A/C, heating – making sure dealer needs are met in course curriculum can be done through participation and/or school advisory board membership When Dealers Get Involved: A Fresh Scenario When a dealer becomes involved with a technical college, everything doesn’t just happen overnight. The process starts with student recruitment, proceeds through high school and/or college technical education, and continues through hiring and technician retention. The lead-time from starting student recruitment efforts to the dealer (continued on page 63)
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Nowhere to Hide:
Profit Improvement Report
Surviving the Recovery by Deploying an Efficient Sales Force Dealer sales account reps don’t all have to be spectacular – but they do have to be adequate. By Dr. Albert D. Bates
The American economy continues to grow at a rate that is somewhere between modest and anemic. Good economic news is almost always followed by bad news. The hope that a rising tide would lift all boats seems ephemeral. In a slow-growing market, the challenge is to somehow maintain sales momentum at a rate that exceeds the growth of the market as a whole. It is a difficult but not insurmountable task. This report looks at sales growth in a somewhat unconventional manner. It will do so by exploring two aspects of the sales equation: n The Sales Mandate – An examination of the relationship between sales growth and profitability n Cost of Goods Not Sold – Some specific suggestions for ensuring that the firm gets every dollar of potential sales. The Sales Mandate One of the central tenets of profit
improvement is that sales must grow faster than the expenses required to generate those sales. In particular, sales must increase faster than payroll expenses – including all salaries, commissions, bonuses, social costs (Medicare and FICA) as well as health insurance and retirement, usually a 401(k) program. The real requirement with regard to sales growth is for that increase in sales to be larger than the increase in payroll expense. This is what is commonly called a sales-to-payroll differential. A realistic target for the differential is 2 percent. If sales increases by 10 percent, then payroll could be allowed to increase by 8 percent to support the sales increase. As long as sales volume is growing at a reasonable rate, such as 10 percent, then the objective seems easy to achieve. When only a 5 percent increase in sales is possible, payroll must be controlled more aggressively, so that
only a 3 percent increase is allowed. It is extremely important to note that in terms of profitability the 10 percent sales growth/8 percent payroll growth model is really not that much better than the 5 percent sales growth/3 percent payroll growth model. Any time sales growth outpaces payroll growth (holding other factors constant), profit will increase appreciably. The challenge occurs when sales growth is very slow or even nonexistent. Theoretically, a 2 percent sales-topayroll differential can be generated even if sales are flat. With no sales growth, payroll would have to be reduced by 2 percent. There is the obvious potential for a death spiral in such a situation. Lower sales leads to lower payroll, which leads to poor customer service. Eventually, this leads to even lower sales. In the real world (where analysts fear to venture), life without sales growth is unthinkable. With a flat economy, (continued on page 48)
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The Knapheide Manufacturing Company 1848 Westphalia Strasse Quincy, Illinois 62305 ph: 217.222.7131 fax: 217.223.9836 knapheide@knapheide.com www.knapheide.com
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Profit Improvement Report Glynn General Extended Protection Plans Your Competitive Advantage in a Competitive Market
(“Nowhere to Hide: Surviving the Recovery by Deploying an Efficient Sales Force” continued from page 46)
Glynn General Benefits
growth must be taken out of a competitor’s share. Ultimately, the key to generating a continually higher level of sales growth is enhanced performance by the sales force.
n GGC’s underwriting partner is AmTrust International which is A rated by AM Best with over 100 years of collective underwriting experience in the Construction and Agricultural Equipment global markets. n GGC has over 27 years of experience administrating extended protection plans. This ensures competitive premiums while also providing fair and reasonable claims reimbursement. n GGC’s knowledge and experience allows for the creation of tailor made programs to meet any need you may have. n An internet accessible administrative system that is efficient and user friendly. n GGC reimburses parts at customer list price and labor at shop rate on all approved claims. n GGC’s program provides peace of mind for your customer knowing that their equipment is protected.
Coverage Types/Coverage Terms n GGC offers extended service protection plans for New and Used Equipment n Power Train, Power Train + Hydraulics, and Full Machine n Used Equipment terms available from 3 months to 2 years n New Equipment terms available from 2 years to 5 years
GGC’s Administrative System via the Web n GGC offers superior administrative capabilities via the internet through our user friendly website: www.glynngeneral.com. n Immediate turnaround of quotes. n Confirmation of the terms and conditions for all available service contracts. n Efficient enrolling of units with automatic invoicing. n User friendly claims processing resulting in satisfactory claims reimbursement. n Account access allowing for constant monitoring of your warranty program.
Contacts in your Region GGC administrative/claims office located in St. Simons Island, Ga Vice President Operations Slade Rowland 912-638-4320 Vice President Sales Rick Stacy 404-791-9382 Eastern Territory Manager Greg Schultz 678-697-2715 Midwest Territory Manager Ryan Carter 847-226-6265 Western Territory Managers Jeremy Cockroft 970-946-8132 Brian Freitag 970-946-8133
Cost of Goods Not Sold As long as the economy is growing briskly, an ineffective salesperson is a minor problem. A poor salesperson here, a poor one there; the good ones generate enough volume to cover up the problems. However, as the economy becomes less supportive of automatic growth, this scenario is no longer viable. Exhibit 1 looks at the profit impact of an ineffective salesperson for the typical member of AED. The first column of numbers demonstrates total company performance. As indicated in the CODB Report, it is a $35 million firm with a bottom line profit of $700,000 or 2 percent of sales. The only detail that might not be clear is that the sales force is being paid a commission equal to 10 percent of the gross margin dollars. In addition, there are other variable expenses equal
to 4 percent of sales volume. The second column simply assumes that there are 12 salespeople and that every territory is exactly equal in potential. Mathematically, all of the numbers in the first column have been divided by 12. The last column examines the profit impact of a salesperson who only produces 80 percent of what a typical salesperson would produce in the same territory. This is not 80 percent of the top salesperson, but the average one. As can be seen, the territory that should generate $58,333 in profit actually has lost $31,208. The difference between the profit the territory could have generated and what it actually generated is what the I have termed Cost of Goods Not Sold. This is a loss that is never seen on the income statement because the performance of the poor salesperson is offset by the performance of the good ones. All the firm tends to focus on is the aggregate results in Column 1. In the short run, in every territory, some sales volume is better than none. In addition, the costs of replacing a
Exhibit 1 - The Challenge of Under-performing Salespeople For the Typical AED Member Income Statement-$ Current Results Per Salesperson 80% Salesperson Net Sales $35,000,000 $2,916,667 $2,333,333 Cost of Goods Sold 27,475,000 2,289,583 1,831,667 Gross Margin 7,525,000 627,083 501,667 Expenses Sales Commissions 752,500 62,708 50,167 Variable Expenses 1,400,000 116,667 93,333 Fixed Expenses 4,672,500 389,375 389,375 Total Expenses 6,825,000 568,750 532,875 Profit Before Taxes $700,000 $58,333 -$31,208 Income Statement-% Current Results Per Salesperson 80% Salesperson Net Sales 100.0 100.0 100.0 Cost of Goods Sold 78.5 78.5 78.5 Gross Margin 21.5 21.5 21.5 Expenses Sales Commissions 2.2 2.2 2.2 Variable Expenses 4.0 4.0 4.0 Fixed Expenses 13.4 13.4 16.7 Total Expenses 19.5 19.5 22.8 Profit Before Taxes 2.0 2.0 -1.3
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Profit Improvement Report
salesperson are extremely visible. There are recruitment costs plus the fact that the salesperson will undoubtedly need time to ramp up to a desired level. Even then, the replacement may be no better than the original. These factors make firms extremely hesitant to make staffing changes with regard to sales. It is not the intent of this report to decimate the sales force. It is simply to state that generating higher profit is indelibly linked to generating a sufficient rate of sales growth. That growth can only be achieved in a sluggish economy if every salesperson is performing adequately. Not spectacularly. Only a few can reach that level. Adequacy should be expected from all. For outside salespeople, measuring performance accurately requires knowing the potential in each territory. Firms must spend at least some time evaluating account potential. Without this indicator firms can still intuitively distinguish great salespeople from typical, but will have real problems
determining whether the low-end performer is inadequate or is saddled with a less-desirable territory. For inside salespeople, life is much easier. It is only necessary to know the total number of customer contacts. Sales per contact is a simple, but effective ratio. Ensuring that sales performance is adequate also requires incorporating a specific set of metrics into the company’s management information system. In particular, it is essential to understand the extent to which the salesperson is maximizing the potential of every transaction. Two key factors have always been important in transaction analysis. The first is the number of line items sold per transaction. This measures performance with regard to add-on selling. The second is the average line value. This reflects the capacity for upselling. Without a system that can pinpoint these issues on a per-salesperson basis, improvement is simply not possible.
Moving Forward Sales growth must be maintained at a level that allows the firm to produce a sales-to-payroll differential of something in the 2 percent range. When (not if) the economy starts growing again, this will be easier to accomplish. In the meantime, firms need to use every tool available to ensure that the productivity targets of the sales force are being met. n Dr. Albert D. Bates is founder and president of Profit Planning Group. His latest book, Triple Your Profit!, is available at www. tripleyourprofitbook.com, as well as Amazon and Barnes & Noble. ©2012 Profit Planning Group. AED has unlimited duplication rights for this manuscript. Further, members may duplicate this report for their internal use in any way desired. Duplication by any other organization in any manner is strictly prohibited.
No News Is Good News You may not have heard of BOK Financial, but sometimes no news is good news. As a $26 billion financial services holding company with decades of construction equipment experience, we understand your challenges. At BOK Financial, we work with companies like yours every day throughout the U.S. to provide unique solutions to help your business grow. So skip the news, and give us a call. Or better yet, let us come see you.
Lending | Syndication 214.736.1054 | www.bok.com /construction
©2012 BOK Financial Equipment Finance, Inc. is a subsidiary of BOK Financial Corporation. Member FDIC. Equal Housing Lender
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Best Practices
Employees of James River Equipment’s Charlotte, N.C., branch receive recognition as SatisfYd’s top rated service department, based on customer satisfaction.
Success by Any Measure
What two best-in-class product support departments are doing to improve customer service By Joanne Costin
Would your customers recommend your dealership to a friend or colleague? Research has shown this to be a key question in measuring customer satisfaction, and in fact, some researchers say the answer could even predict your success. More than a 1,000 dealers routinely ask this question of their Parts and Service Department customers using the SatisfYd survey process. SatisfYd recently honored the top scoring Parts and Service Departments, so we caught up with the highest scoring dealers to learn the secrets of their success. Flint Equipment Company, Macon, Ga., Branch: Best Parts Department Good Relationships and Parts Availability Work Hand-in-Hand to Create Customer Satisfaction Customers of Flint Equipment Company’s Macon, Ga., branch voted a resounding “yes” when it came to recommending the dealership’s Parts Department – virtually 100 percent of the customers surveyed would recommend them. What’s the secret to getting and maintaining good scores? “There is no secret,” said Chris Cannon, president of Flint Equipment Co. “It’s blocking and tackling every day. It’s being consistently good managers and hiring good counter folks.” Flint Equipment uses customer experience surveys to identify less-than-satisfied customers. Results are forwarded to branch managers who work to resolve any
issues immediately. The company also examines results on a quarterly basis across all of the company’s locations. Manager of Product Support Operations Don Tracy credits the long-term relationships that Macon branch employees have with their customers as one of the primary reasons for their stellar survey results. “They interact very well with customers,” said Tracy. “It proves that staying in the same place and coming through for customers time and again allows you to develop relationships. It doesn’t matter what the problem is. Customers come back to you.” According to Tracy, successful parts personnel must not only anticipate parts needs based on machine population in their service area, but also recognize how failed parts interact with other parts on the machine and to determine what is needed. Macon’s parts counter salesperson Shane Densmore worked in the Macon branch since 1984 as service technician and field technician before transferring to parts in 2004. “It’s very difficult to find someone with that kind of knowledge,” said Tracy. According to Cannon, the biggest complaint among customers is parts availability. “Every dealer can’t have parts 100 percent of the time, so it becomes a difficult situation for the customer. There’s an expectation to have the part on the shelf,” said Cannon. The more diverse your product line and customer base, the bigger the challenge and investment needed to keep parts on the shelves. Since 2009, Flint Equipment has
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Best Practices
grown from five to 21 construction and forestry locations throughout Georgia, Florida, Alabama and South Carolina. Customers are involved in a wide range of vocations including forestry, road building, mining and government agencies. “There’s a very different stocking logic for Atlanta than there is for Perry, Fla.,” said Tracy. Each location is a stand-alone business unit managing their own parts operation. “You look at machine population. We know what parts sold, which ones are wear items,” said Cannon. “We capture all the calls that come in and that drives a calculation. We look at historical demand and then look forward based on machine population.” Tracy senses that customer expectations about parts are on the rise. “They expect us to have more parts, and they expect them to be cheaper.” As a result, the dealership is putting more focus on selling preventative maintenance contracts to help customers prevent unexpected failures. According to Tracy, many customers sold off surplus equipment during the downturn and now don’t have spare machines to turn to when a machine breaks down. This puts added pressure on both dealers and customers. To manage the inevitable out-of-stock part, Flint Equipment takes delivery on out-of-stock parts by 8 a.m., so they can get parts into the hands of customers sooner. More than 30 drop boxes for parts are also located throughout the territory. Technology is helping Flint Equipment diagnose machine problems faster and with more accuracy. Machines equipped with JDLink telematics have the capability to be monitored in real time for problems. In 2012, Flint Equipment took this a step further by employing John Deere’s Remote Service Advisor, a system that enables the dealer to access late model machines via satellite and perform certain diagnostics. “We can help the customer fix machines over the phone or send the right part to the jobsite immediately,” said Cannon. The system can also record the particular machine parameters to detect problems that only occur, for example, when the machine reaches 1,000 rpm. While it’s too soon to tell how this will impact customer satisfaction, Cannon is optimistic that the system will help Flint Equipment build loyalty in a competitive marketplace. James River Equipment, Charlotte, N.C., Branch: Best Service Department Investing in People and Resources during the Downturn Pays Big Dividends When John Shearer reviews the customer satisfaction surveys from SatisfYd, it’s gut-check time. “It’s one of the ways we can find out what’s going on with customers,” said Shearer, who is vice president of Product Support for James River Equipment. Recently there was reason to celebrate. The company’s
Charlotte, N.C., branch earned the designation of best Service Department for a construction equipment dealer in 2011, among nearly a thousand participating dealers. The honor was earned when 99.09 percent of customers responded that they would recommend the Service Department to others. Shearer credits the company’s continued investment in people and resources during the downturn as one of the reasons for its solid performance, particularly at the Charlotte location. “We were able to retain most of our technicians and we didn’t we didn’t have to gear back up when business picked up,” said Shearer. Product Support Manager Sheldon Edmonson concurs. “We did everything possible to keep our core together and even had some expansion during the downturn,” he said. “We continued with training and our customers saw the results of that.” Shearer also believes the branch’s focus on response time also had an impact. Over the past two years the branch cut response time by approximately 20 percent. The branch increased its field capabilities and created a new goal: to reach 95 percent of customers within four hours – up from 85 percent. “We raised the bar,” said Edmonson. The branch has already reached 90 percent. Edmonson credits the 21 Charlotte-based service technicians and managers who perform day after day for their achievement. “Our guys are very dedicated and committed to what they do. After hours, weekends, whatever it takes, they are dedicated to the customers,” he explained. Training plays a big role in the performance of the technicians. Inspections of machines brought in for service are rigorous. Service request forms are completed in great detail so they can spot problems before they cause unexpected downtime. “The worst thing you can do is fix the machine and then have something else go wrong with it,” said Shearer. According to Edmonson, the dealership spends more than $1 million dollars per year on training and invests heavily in service trucks, laptops and tooling. “Utilizing John Deere’s latest tool, Remote Service Advisor, will improve our response time and reduce downtime and costs for customers,” said Edmonson. A reputation for great service has also brought service business beyond John Deere machine owners. The company has strategically positioned itself to pursue service work for competitive machines. The dealership partners with technical schools to ensure a good supply of technicians. They currently offer 10-12 diesel technician scholarships annually. Students can earn an associate degree but must work for the dealer for two years to pay off their loan. “We don’t manage on a daily, weekly or monthly basis,” said Edmonson. “We are in it for the long term. That has separated us from the lot of competitors.” n
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What do High Performing Dealers have in Common?
They belong to Performance 20 Groups Historically 20 Group members, regardless of industry, perform at higher levels compared to their peers. Performance 20 Groups are focused groups of industry non-competing members who meet to compare best practices and share ideas in order to improve their operations’ productivity, efficiency, customer service, and profitability.
Now through AED’s partnership with Performance Inc., AED is now positioned to begin offering AED Performance 20 Groups to its members throughout North America.
If you’re driven to improve processes and sell more , then look no further than Performance 20 Groups. To learn more, simply email sheila.York@adp.com or call her directly at 703.889.6425.
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On the Numbers
The New Gorilla in the Room Rental is an amiable – and permanent – giant in the marketplace, and will perform best when dealers and manufacturers work together. By Garry bartecki
The 2012 Executive Forum, which took place the first week of September, was, from my perspective, one of the best in terms of providing timely information. As you can imagine, the planning information was presented using two scenarios depending on who wins the election and what Congress gets done regarding the Fiscal Cliff. Ed Sullivan, the chief economist at Portland Cement Association, presented a clear picture about projected construction work. Ed was the first speaker and he basically concluded that it is all about jobs and building consumer confidence and getting the Fiscal Cliff addressed. He also concluded that recovery in the construction industry will continue to be a slow process with a meaningful recovery in 2014-’15 if the Fiscal Cliff issue is resolved before the end of the year; he bumps recovery out till 2015-’16 if Congress again kicks the can down the road. David Raso was the last speaker at the event, and as a Wall Street industry analyst covering our industry, he basically arrived at the same conclusions that Ed Sullivan did. David, however, noted that inventory levels for both OEMs and dealers are creeping upward and that 2013 sales projections are far from spectacular. On the plus side, many dealers are saying, “My rentals are exploding!,” which I guess is a good thing – but could be a bad thing. This issue is what creates the new “gorilla in the room.” Actually, I think there are two gorillas. One has to do with how dealers profitably transition into the rental business, and the other has to do with
how OEMs react to what I believe is going to be a permanent change in the dealer landscape. What’s interesting is that after hearing about the expansion of dealers’ rental business, their next comment was about OEMs complaining that dealers aren’t ordering enough new equipment. Let’s take a reality check here: If the rental business is up, it is because contractors are not buying. Again, I believe this is a permanent change in the marketplace, and I have been saying it for years. And if this is even a short-term phenomenon, dealers have to add two issues or topics to their risk review profile: (1.) Rental Risk (2.) OEM Risk The rental risk is very real. It can cause problems with OEMs, banks, auditors and the IRS. Especially important is the amount of capital required to be in the rental business. While rental activities can reflect better profits and EBITDA numbers, the cash flow changes resulting from the rental business have to be carefully and properly projected and monitored. In short, this is a high-risk time to get more involved in the rental business. Obviously, OEMs are in the manufacturing business and they need a certain amount of volume to be able to spread their fixed costs to an extent where they have a competitively priced product. Cutting 20-30 percent of their business permanently, above and beyond the normal business cycle, will create significant scheduling issues for them. They will have to find ways to move product (sell into rental markets for example) or bring other valueadded products or services to the
market. If they do nothing, however, they may have to raise prices, which will then create problems for dealers. If there was ever a time when dealers and OEMs should be working together to maintain market share it is now, and it revolves around the rental business. There is going to be a lot of discussion and training required to do this properly and deliver outstanding customer service, because there is no denying the fact that if you lose a rental customer to another source you may lose them for good. Equipment dealers and rental companies have been a lifelong passion of mine. I started out as a young CPA working with lift truck dealers, and have since worked in auto leasing, auto rental, auto and powersports dealerships, equipment leasing and equipment rental. I think I can safely say I know both the dealer and rental businesses and what needs to be done to make them work together. In case you didn’t know, I put together an AED CFO/Rental Conference this year, which covered the issues above along with operations, pricing, tax issues, rental contracts, insurance and systems required to properly manage the rental fleet. If you missed the conference and cannot attend the repeat performance Oct. 11-12, please contact me, especially if your accounting or tax vendors are not intimately familiar with equipment rental. I will save you some dollars and reduce the aggravation factor with your banker. (www.aedu.org/715) Garry bartecki (gbartecki@ aednet.org) is AED’s vice president of Finance.
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Join other AED members and Keep More Money. AED and Veritas partner to deliver health insurance that helps control costs. Rising healthcare costs are not news. But a new health insurance program available exclusively to AED members is big news. The AED group medical captive program can deliver real savings to employer bottom lines. How do employers save? • Premium credits in good-performing years • National network of providers • Better decisions through access to medical claims information • Low administrative expense and complete transparency • Employee wellness program
Get more information about the AED health insurance solution and request a quote today. Call Doug Truax at 630.601.1502 or email doug_truax@veritasrs.com. Take control of your company’s health insurance costs starting now – and keep more money.
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Knowledge. Delivery. Truth.
6/15/12 1:05 PM
Business Outlook
While Industrial Activity Begins to Sag, Construction Spending Bulb Burns Modestly Brighter Eli Lustgarten
Residential and private nonresidential are on positive paths.
The summer of 2012 appears to have ended on a soft note for the industrial sector. The ISM PMI in the U.S. was 49.6 in August, the third straight month below 50. Europe remains mired in recession with the EU PMI at 45.1 and China continues to report weaker-thanexpected economic activity with the HSBC PMI for China at 47.6. Politics continue to plague Europe, China, and the U.S., and we are now hearing that some industrial end market demand has begun to plateau or soften, particularly heavy trucks, farm equipment, and mining equipment – especially coal. Even construction equipment rate of growth in 2H2012 has begun to ebb as rental company equipment purchases, which have accounted for more than half of industry demand this year, appear to have begun to trail off from the first half of the year. As we had previously speculated, we are now hearing anecdotal stories about manufacturers adopting a Waitand-See attitude in the second half of the year. Industrial activity has held at about recent levels and most previously announced capital spending programs have continued. There is a clear reluctance, however, to approve new programs of size, and programs in more cyclical sectors such as mining have been postponed or stretched. BHP Billiton, the largest mining company globally, recently announced that they have 20 major projects currently underway (production for 2015) implying that they are largely committed for F2013. But capital spending levels are likely to be flat to down modestly, and no new project approvals are expected over the next year. While the general outlook for industrial America may indeed be flat to
down for the next several quarters as activity plateaus and inventories are modestly reduced, construction activity may be the one area in the U.S. where the bulb may be getting a bit brighter. Construction spending has been the most challenged sector within the U.S. economy since the current recovery began in mid-2009. However, residential construction finally looks to be on a modest recovery path and private nonresidential spending also appears to be improving. The most recent blue-chip survey of economists targets 2012 housing starts at about 751,000, consistent with the most recent forecast of the National Association of Home Builders and 22.7 percent above the 612,000 reported in 2011. Further, housing is pegged by economists to rise nearly 20 percent to about 895,000 starts for 2013, (NAHB is at 903,000), indicating that as long as the domestic economy continues to muddle along, the recovery of housing should continue. We note that the level of housing starts likely in 2012, while up more than 22 percent, is still 50 percent below what most economists would consider to be a normal level of activity. The American Institute of Architects also recently revised its projection for nonresidential construction spending for 2012 to up 4.4 percent (original forecast in January 2012 was up 2.1 percent) with a further gain likely in 2013 of about 6.2 percent. The strength in spending is in private nonresidential, led by commercial construction (up 5.7 percent in 2012 and 10.2 percent in 2013) and driven by: n Increased industrial spending (up 12.9 percent in 2012 and 8.1 percent in 2013) n Hotels (up 9.5 percent in 2012 and 18.2 percent in 2013)
n Retail
spending (up 6.2 percent, 9 percent) n Office (up 4.7 percent, 8.7 percent). Institutional spending will show much more modest growth of 0.7 percent in 2012 and about 3 percent next year with public nonresidential spending flat to down 5 percent in both years, with likely weak high spending (+/- 0 percent) during the same period. The AIA forecast parallels our published outlook of spending in 2013-2018 to rise at least 6-10 percent in the private sector. Our view is that there will be new drivers over the next few years such as shale-based gas and oil, Panama Canal widening, and more elderly and kid-related spending. It is conceivable that we are at a major turning point within the domestic economy. As the industrial sector sags somewhat under the pressure of global politics, the construction sector level of activity may actually brighten somewhat. We are not arguing dramatic growth, but a more moderate, sustained upturn for the next few years. This is clearly critical for the health of construction equipment demand. The substantial recovery of U.S. construction equipment sales from 2010 to 2012 has been far stronger than underlying activity and represented a recovery of sales back to a level more consistent with current construction activity after the dramatic two-thirds decline from its peak in 2006 to the trough in mid-2009, helped by favorable tax policy to help offset regulatory-driven price increases. Eli Lustgarten (elustgarten@aol. com) is president of ESL Consultants, an industrial consulting firm.
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Aftermarket
Standard Times & Flat Rating What is everyone so afraid of with this approach to service?
By Ron Slee
Many years ago, I joined a dealership that had been running a flat rated operation since it started in the 1950s. That was the service paradigm that I grew up with – a planned service operation, assigning work to individuals with time expectations for most of the work. I didn’t see a job shop for a few years, and when I did I was stunned. How can you operate a repair and maintenance facility without using standard job codes to manage and measure performance and provide prices and completion dates to customers? I thought that there was no way that there would be means available to manage and supervise such an operation. I am more convinced today than ever that I was right then and continue to be right on standard times and flat rating. The next step in the progression for me was to be on a small committee of dealer and supplier personnel to review and design a major service management control system. This spanned establishing job code structures and time collection methods to use. This was plugged into the Service Department system design at the dealership. Standard times should be as common in dealer service operations as the system solution itself. That is true, but it also requires a few critical elements be in place. Job Codes If you are going to run a standard time operation, you have to be able to monitor the times taken to perform tasks and be able to adjust them based on your actual performance. That means a water pump removal and installation has to be done using the same job code in every location
and each time it is performed. The coding structure should be simple and consistent. It should cover a component code, an operations code and a sequence code. But it should be so simple that people can look at the code and easily tell you what it means. This code is not intended for engineers at a manufacturing plant – it is designed to be used by technicians in a service bay or on a field truck. Job Segments The work to be done must be broken down into manageable blocks of time. That means there will never be a job segment longer than eight hours nor one shorter than 30 minutes. The eight hours is simple enough to understand when you consider a schedule. If you think about an engine overhaul, which might take 40 hours, I don’t want to give that job segment to a technician. At the end of the day, I will ask if the work is on schedule and I will get back an opinion. But I don’t want an opinion – I want a Yes or No answer. This is critically important to managing a schedule to a completion date. Standard Times The next thing we have to provide is a standard time. This is an area that a large majority of people get wrong. This is not the average time it takes to perform the work. But let’s begin properly. The time taken to perform the work is when all the parts are with the technician before the work is started. The clock starts running with all parts present and man-hours being applied to the job. The technician performs the job and it is added to the work order, as well as updating the standard time files. Simple enough
isn’t it? I agree, but I want to go further. When you provide a fixed time for a job (which for the customer means a fixed price and completion date), you are assuming all of the risk for the job. With time and material work, the customer assumes all the risk and this is where they feel vulnerable. You know the feeling well: The shop is the black hole into which work goes, and we don’t know when it will come out or what the price will be. You have to apply a risk premium. Now we can provide meaningful quotations on all work performed. Now we can manage the function, provided we have strong scheduling systems. We can then provide completion dates that are going to be met. All the surveys on the Service Department that I have seen from AED tell us what the customers want from service: n Price n Responsiveness n Convenience n Quality Standard Times and Flat Rating answer all those needs. If the customers tell us they want it, shouldn’t we deliver it? I thought so. 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.
October 2012 | Construction Equipment Distribution | www.cedmag.com | 57
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View from the Hill
Empower – Don’t Punish – Job Creators Easing the regulatory environment and tax burden on small business must be Priority No. 1.
By Congressman Bill Johnson (R-OH)
There are many serious problems in Washington: The Senate refuses to consider a budget, the national debt continues to balloon, spending on food stamps and other social programs have skyrocketed, and the prospect of massive defense cuts has ended America’s ability to successfully fight a two-front war – the foundation of our defense strategy since World War II. But maybe the most troubling and far-reaching problem in Washington now is the Obama administration’s treatment, through its policies and rhetoric, of small business owners – America’s job creators. Small businesses serve as the engine of our economy, creating more than 60 percent of new jobs. They are manufacturers, restaurants, service stations, construction companies, high-tech startups – they are America’s innovators. They are risk takers. They create goods and provide services that people want. They employ tens of millions of Americans. And they are hurting. They are hurting because this administration is regulating them into the ground. According to the Heritage Foundation, President Obama has imposed new regulations on job creators costing them $46 billion annually on a variety of goods and services ranging from air conditioners, refrigerators, freezers, car emissions,
product labeling, higher minimum wages for foreign workers and health care mandates under Obamacare. Not surprisingly, the most expensive regulations come from the president’s Environmental Protection Agency (EPA), which cost businesses an additional $4 billion annually. And if these regulatory burdens and federal mandates aren’t enough, the president and some in Congress want to raise taxes on job creators that are finding ways to succeed. A recent Ernst & Young analysis of President Obama’s proposed tax hike indicates that the tax will hit thousands of small businesses, costing our economy more than 700,000 jobs. Why would we punish successful businesses? Why would we make it harder for them to expand, invest and hire more people? We may have gotten that unfortunate answer from the president recently. In a speech this summer, President Obama stated that, “If you’re successful, you didn’t get there on your own.” He went on to declare that, “If you’ve got a business, you didn’t build that. Somebody else made that happen.” I meet with small business owners regularly. I know that many small business owners work long hours, weekends, borrow against their mortgage, skip paying themselves so they can meet payroll
for their employees, and then pay the taxes that fund the roads, bridges, schools and fire departments in their community. The president’s statements show, at best, a complete lack of understanding how America’s economy works. At worst, it shows a callous disregard for job creators and taxpayers. There is much to fix in Washington, but freeing our job creators should be the top priority. The president should reconvene his White House Jobs Counsel that was charged with developing recommendations to spur job growth (which hasn’t met for six months), overhaul the regulatory process, scrap all plans for tax hikes and begin to work to create an environment in which small businesses can focus on innovating and growing again rather than complying with federal mandates, higher taxes and even more red tape. I look forward to working with AED members to get our nation’s small businesses growing and creating jobs. Congressman Bill Johnson (R-OH) is in his first term representing Ohio’s sixth congressional district. He serves on the House Natural Resources Committee, the House Foreign Affairs Committee, and the House Veterans’ Affairs Committee, where he is chairman of the Oversight & Investigations Subcommittee.
Attention Dealer Principals: Next Month is AED’s Leadership Academy Send the up-and-coming future leader of your company to this two-day event, Nov. 8-9, near O’Hare Airport. Conducted as a three-course workshop that connects ROI to all aspects of distributor operations, The Leadership Academy is taught this year by internationally acclaimed distribution expert Dr. Barry Lawrence, program director, Industrial Distribution, Texas A&M University. Call Ben Yates at 630-574-0650, ext. 338, or visit www.aednet.org/leadership. October 2012 | Construction Equipment Distribution | www.cedmag.com | 59
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New & Improved
Ditch Witch RT80 Quad Heavy Duty Ride-On Trencher Rough, uneven terrain poses no difficulty. With its power and compact footprint, the RT80 Quad is a machine contractors can rely on for any type of utility installation, short or long drops, on either tight or wide-open jobsites. Ditch Witch introduced the RT80 Quad heavy-duty ride-on trencher, a powerful and durable machine with a heavy-duty track system that provides outstanding traction and performance on rough and uneven terrain. The 83-hp RT80 Quad features a three-speed, shift-on-the-fly ground drive that provides the power necessary to tackle the toughest jobsites with the machine’s traversing vibratory plow, trencher, saw, and backhoe attachments. The RT80’s heavy-duty undercarriage and components allow utility installation in some of the toughest jobsite conditions. Its axle capacity offers a best-in-class static load rating of 39,000 pounds and a best-in-class 30,742 pound breakout. The machine’s track frames pivot about the centerline of the axle, a design that provides exceptional machine stability, especially in muddy conditions or when applying very high torque to pull through hard ground. And the chevronpattern design of the RT80 Quad’s track system helps reduce
mud buildup, resulting in improved traction in wet conditions and on slopes. For more information visit www.ditchwitch.com
Terex RS446D Reclaimer/Stabilizer Boasts Improved Efficiency, Higher Torque and Quieter Operation The new Terex RS446D Reclaimer/Stabilizer features a powerful 415 hp diesel engine that meets stringent Tier 4i and Stage IIIB emissions standards. A new engine configuration improves fuel efficiency over previous RS446 models and reduces noise levels to the operator’s ear by 5 dBA for improved operator comfort. With the machine’s two-stage engine drive and threespeed cutter transmission that increases breakout force, the RS446D rivals the performance of 500-hp-class machines, while saving up to 30 percent on fuel costs. With a standard cab and water system, the machine weighs 59,380 pounds. Maintenance time is reduced by a new hydraulically tilting hood and easy access to engine components including the oil filter, air filter, fuel filter and battery. Compared to the C Series, the RS446D increases torque to the mechanical cutter drive system. This, combined with three rotor speed selections, allows the operator to more effectively match cutter speed to the application, improving reclaiming and stabilizing efficiency. The RS446D offers a 96-inch cutting width and a maximum
20-inch cutting depth, depending on soil conditions. Four steering modes – crab, coordinated, front only and rear only – improve machine maneuverability and flexibility. For more information visit www.terex.com
60 | www.cedmag.com | Construction Equipment Distribution | October 2012
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New & Improved
Fecon Residential Geothermal Vertical Drill The new Geothermal Series GL300 vertical drill is for contractors and HVAC dealers installing ground loop heating and cooling systems. Fecon’s GL300 is equipped for up to 300-foot depth to provide high efficiency ground loops with lower grout costs as a result of the reduced hole volume of a 4-inch opening. The compact GL300 enables contractors to win jobs previously considered inaccessible due to equipment size or weight. The GL300 is just 194-inches long x 73-inches wide x 94-inches high, weighing 9,876 pounds. Low impact rubber tracks provide maneuverability to cross driveways or flat and hilly lawns. The GL300 tackles the high cost and inefficiencies of installing a geothermal heating and cooling system. A 46-hp crawler with load sense hydraulics to the drill mast, and a 99HP 300-CFM/200-PSI air compressor enable drilling of 4-inch diameter holes with greater speed and lower fuel consumption than many alternatives.
Ground
Engaging one Scoop at a Time
For more information visit www.fecon.com
Commercial Web Services Releases MobilePLUS for Dealers
woodsequipment.com 800-848-3447
Introducing
Commercial Web Services (CWS), a diviAccording to Gartner, "by 2013, more people will use mobile phones than PCs to get online," meaning consumers are accessing your website from their sion of Dominsmartphones more than ever. More recently, statistics show that 88% of those who look for local information on their smartphones take action within a day. ion Enterprises, Having a mobile website that accurately represents your brand is essential to has launched building consumer awareness, engagement, and growing your customer base. an enhanced Which is why we have introduced MobilePLUS, enhanced mobile websites for commercial truck dealerships allowing dealers to have more control over how version of its their brand is represented on the web. current mobile offering for dealerships. MobilePLUS has been created to give dealers more control over their brands’ representation on the Nmobile Web. D yNamiC F ormattiNg avigatioN B uttoNs C liCk-to -C all YouCWS offers the means may add or change up dealers to 8 The click-to-call buttonfor enhances the The design easily adapts to a mobile links to best represent your mobile visitor’s experience by making it device’s screen. Your content is a navigation functional, mobile dealership’s most popularbranded offerings. easy to call yourwebsite dealership. reformatted on the fly and repositioned based on mobile device size. that builds consumer awareness both online and offline. With MobilePLUS, consumers searching for the dealer’s D esigN l auNCh i CoN s upport business on their smartphones will Our team of design professionals will To complement the visitor experience, The set-up process is easy. create your mobile website that dealers will receive their own launch Simply because we build it for you! bereflects able to quickly access the dealeryour dealership’s brand. icon. This allows visitors to ‘bookmark’ your mobile website on their mobile ship’s website, easily find and read the home screen. information they need, simply click to call, and much more. 1
1. The Mobile Movement. http://www.youtube.com/watch?v=CjUcq_E4I-s&feature=player_embedded.
For more information visit www.commercialwebservices.com
Exceed Customer Expectations with MobilePLUS Call us today to get started or click here. Toll Free I 866.529.6008 Email I info@equipmentwebservices.com
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A Commercial Web Services Business
10/1/12 6:12 PM
New & Improved
Atlas Copco Launches New Range of Ride-On Trowels The BG740, BG910 and BG920 trowels feature mechanical drive for constant torque at any rotor speed, a throttle pedal that easily adjusts the speed of the dual rotors, and an independent, manual blade pitch that allows the operator better pitch control and accuracy. The new line is equipped with an electrically powered, water spray system that can hold up to six gallons. A service-friendly frame with an adjustable seat and raised foot pedals come standard. Operators have clear line-of-sight from the cockpit, and all ride-on trowels are equipped with lighting for poor light conditions. A lifting bridle was engineered for easy loading and unloading. The BG740 is equipped with a 22 hp Honda GX690 air-cooled gas engine with electric start and manual lever steering. Both 36-inch rotors are equipped with four blades and provide quick and easy handling. A high speed of 135 rpm creates a quality finish, and removable front and rear screens are available for engine protection and quick service. The BG910 has a 34 hp Briggs and Stratton air-cooled gas engine that offers high power with an electric start. The dual 46-inch rotors have five blades and a speed of 145 rpm for increased capacity and flatter floors. The BG920 delivers more power and torque with a 44 hp Kubota diesel engine that can reach a top speed of 140 rpm. The hydraulic power steering offers smooth, accurate results. The six-gallon diesel tank delivers approximately four hours of application. Each of the 46-inch rotors is equipped with five blades. For more information visit www.atlascopco.com
Introducing The Durasweeper Commercial Vehicle Rooftop Snow Removal Machine
The DuraSweeper SR100 is the only machine on the market that uses a poly wafer brush that spins at 200 rpm. The brush safely and quickly removes accumulated rooftop snow from virtually any vehicle rooftop enabling your fleet to comply with local and state laws.
For more information, contact Billy C. billyc@durasweeper.com Phone: 904-687-5658
www.durasweeper.com
Distributorship Opportunities Available
Doosan Introduces New Line of Dual Pressure Tier 4i-Compliant Portable Air Compressors Doosan Portable Power’s three new models of dual pressure mid-range air compressors — P425/ HP375WCU, HP450/VHP400WCU and P600/XP535WCU are built to withstand the most challenging applications and perform efficiently in the harshest environments. They are ideal for use in a variety of applications, including general construction, abrasive blasting and pneumatic tool applications, and are the perfect complement to any rental fleet. The two-in-one dual pressure units deliver airflow ranging from 375 to 600 cfm and pressures ranging from 100 to 200 psi, depending on the model. For more information visit doosanportablepower.com
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Workforce
(“Got Techs?” continued from page 45)
hire date can be three to four years. This means that time is of the essence. If a dealer isn’t working to develop a pipeline of well-trained entry-level technicians now, the recruitment “can” (qualified entrylevel techs available to hire) just gets kicked down the road. What If They Went Away? Sometimes we just assume that these college/diesel equipment technology programs will just continue to be there. Maybe they will, but maybe they won’t. I was once looking for new prospect college programs for AED Accreditation and found one that looked great on the Internet, “on paper” so to speak; it looked like it may not have far to go to meet our rigorous technical AED Accreditation standards. When I called to inquire and make some contacts, I was informed the program had been terminated. That may be an extreme outcome, but
other things can go awry too. Programs exist and thrive based on the student headcount in those programs and the quality of its graduates versus the costs of offering the program. In other words, is the program successful? Is it serving the needs of the employers who hire their graduates? On top of that, programs exist in an environment of federal and state funding reductions and general belt-tightening. So ask yourself: Do we want to see diesel/equipment programs subject to cutbacks and curriculum quality heading downward? Do we want to see these technical programs combined with automotive, ag and/or on-highway truck? Do we want to see them turn into technical programs that are supported by and serve the needs of those industries rather than ours? Our industry, including equipment dealers, has a real stake in ensuring the future availability of highly qualified new technicians specifically educated in diesel/equipment technology programs. For those who
are already actively engaged with technical college diesel/equipment programs and reaping the benefits, thank you. For others, I trust that you know that nobody is going to just step up to the plate and do it for us. It’s a challenge that we accept or reject, and then experience the consequences. I’ll just pose a final question: How can you be more involved in managing your own technician workforce destiny? Solving that puzzle is ultimately the objective of this article and the mission of The Foundation’s workforce development endeavors. If that rings home and you are interested, we can help. Please get in touch, and we’ll help you stop the vicious circle and instead get on a path of self-fulfilling profitability. n Steve Johnson is the executive director of The AED Foundation. He can be reached at 630-468-5134, sjohnson@aednet.org.
Advertisers’ Index ADP Inc. Dealer Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
PFW Systems Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
BOKF Equipment Finance Inc.. . . . . . . . . . . . . . . . . . . . . . . . 49
PriSim Business War Games, Inc.. . . . . . . . . . . . . . . . . . . . . . 56
Briggs & Stratton Corporation. . . . . . . . . . . . . . . . . . . . . . . . 27
Ritchie Bros. Auctioneers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
DIS Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
SANY Heavy Industry Co., LTD . . . . . . . . . . . . . . . . . . . . . . . . 9
Dura Sweeper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 EPG Insurance, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Glynn General Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . 48 Hydrema Exports A/S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Infor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Knapheide Manufacturing Company, The . . . . . . . . . . . . . . 47
Sentry Insurance Company. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Vacuworx International. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Veritas Risk Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Wacker Neuson Corporation. . . . . . . . . . . . . . . . . . . . . . . . . 29 Wedgelock North America. . . . . . . . . . . . . . . . . . . . . . . . OBC
Leading Edge Attachments. . . . . . . . . . . . . . . . . . . . . . . . . . 21
Wells Fargo Equipment Finance. . . . . . . . . . . . . . . . . . . . . . . 43
Liebherr Construction Equipment Co.. . . . . . . . . . . . . . . . . . 58
Werk-Brau Company, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . IBC
LiuGong Construction Machinery. . . . . . . . . . . . . . . . . . . . IFC
Woods Equipment Company. . . . . . . . . . . . . . . . . . . . . . . . 61
Lowe Manufacturing Company, Inc.. . . . . . . . . . . . . . . . . . . 17
XAPT Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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 © 2011 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 non-members. Office of publication: 600 Hunter Drive 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 Hunter Drive Suite 220, Oak Brook, Ill. 60523
October 2012 | Construction Equipment Distribution | www.cedmag.com | 63
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Dealer Data
June Construction Declines 10 Percent Pace of total construction starts returns to the lackluster activity reported at the outset of 2012. Monthly Construction Starts Seasonally Adjusted Annual Rates, In Millions $ Nonresidential Building Residential Building Nonbuilding Construction TOTAL Construction
Year-To-Date Construction Starts Unadjusted Totals, In Millions $
July 2012
June 2012
% Change
$138,135
$147,799
-7
154,032
163,728
-6
109,079
133,569
-18
$401,246
$445,096
-10
Source: McGraw-Hill Construction
Nonresidential Building Residential Building Nonbuilding Construction TOTAL Construction
7 Mo. 2012
7 Mo. 2011
% Change
$82,521
$96,582
-15
88,777
71,262
+25
91,607
85,944
+7
$262,905
$253,788
+4
Source: McGraw-Hill Construction
New York, N.Y. – Aug. 21, 2012 – New construction starts fell 10 percent in July to a seasonally adjusted annual rate of $401.2 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. After showing improvement during the spring, the pace of construction starts retreated over the past three months, with July coming in at the lower end of the recent range of activity. Nonbuilding construction, comprised of public works and electric utilities, fell sharply in July, while both nonresidential building and housing lost some of their earlier momentum. For the first seven month of 2012, the volume of total construction starts on an unadjusted basis was reported at $262.9 billion, holding on to a 4 percent gain compared to the same period a year ago.
“The construction industry is still struggling to gain upward traction, as construction starts continue to exhibit an up-anddown-pattern, stated Robert McMurray, vice president of economic affairs for McGraw-Hill Construction. “The public works and institutional building sectors are still being adversely affected by the tough fiscal climate facing the federal, state, and local levels of government. Commercial building, which seemed to be in the very early stages of recovery, is seeing its faint upturn become more tenuous with the sluggish employment picture. The upward potential for housing in the near term is also being dampened by the persistently hesitant U.S. economy. Overall, the construction industry remains stuck for now in an extended process of turning the corner.” See full story at www.cedmag.com.
The Dirty Dozen
UCC filings on 12 earthmoving units. Equipment Description
JUL 11
AUG 11
SEP 11
OCT 11
NOV 11
DEC 11
JAN 12
FEB 12
MAR 12
APR 12
MAY 12
JUN 12
Grand Total
Articulated Dump Trucks
32
46
34
43
41
54
50
35
44
63
86
57
585
182
236
194
236
289
313
279
159
213
278
240
262
2,881
6
4
5
5
4
3
6
5
4
12
4
1
59
356
372
381
367
388
554
564
286
418
494
554
559
5,293
Crawler Dozers Crawler Loaders Excavators - Crawler, Hydraulic Excavators - Wheeled, Hydraulic
20
22
21
22
25
44
35
14
21
21
17
30
292
347
411
433
448
393
506
646
386
458
662
704
610
6,004
55
89
108
107
90
100
102
79
88
85
100
104
1,107
9
7
8
5
4
6
5
3
10
2
10
69
Skid-Steer Loaders
652
819
825
869
1,205
1,457
1,198
729
808
867
949
839
11,217
Tractor Loader Backhoes
249
316
280
329
322
351
387
222
282
294
294
308
3,634
Mini Excavators Motor Graders Scrapers - Conventional
Wheel Loaders < 80 HP
43
38
44
46
68
82
55
43
33
36
55
41
584
Wheel Loaders > 80 HP
320
384
393
342
442
573
542
292
345
393
437
324
4,787
3,869 2,253
2,714
3,215
3,442
Grand Total
2,271 2,744 2,726
2,819 3,271 4,043
3,145 36,512
Supplied by Equipment Data Associates, Charlotte, N.C.
64 | www.cedmag.com | Construction Equipment Distribution | October 2012
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