October 2015
CED
Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership
Summit Preview n Customer Service How well it’s done can make or break a business.
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n Dealer Laws
AED’ sheds light on legal areas affecting distributors.
n Easy Wins
Blogging: You don’t have to pay someone to do it for you.
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GUIDANCE
SELECTING A 401K PLAN? DON’T GO IT ALONE. We guide you through every step of the retirement planning process. No surprises. Benefit from our expertise and our business relationships. Making the best use of your time and resources – it’s our specialty. Reduce the risk associated with being a plan sponsor and increase confidence in your retirement plan.
KNOWLEDGE SIMPLICITY
Sentry has been providing 401(k) plans and services for nearly 50 years. We will customize a plan to meet the needs of your equipment dealership and help control costs so you can focus on running your business. For more information or to receive a free review of your current plan, please contact your Sentry Account Manager or call 1-800-447-0633, option 1.
Endorsed by
This is a paid endorsement.
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Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. In New York, individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, NY. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. In New York coverage provided through policy form numbers: (Life insurance) 585-3000-01, 390-1000 (SLONY), 380-2244; (Disability) 685-9000-31; (Dental) 785-7000; (Group Annuity) 840-300(NY); (Individual Annuity) 380-440. Short-term disability insurance is not available in New York. 840-466
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Sell More Equipment Increase Your Profits Grow Business EPG Offers Total Dealer Fleet Protection Component failures can result in large capital expenses and can wreck a profitable sale. Protect your dealer fleet from these potential added costs with EPG Extended Service Protection Plans.
EPG Extended Service Protection Plans:
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Extended Service Protection Plans Dealer Corporate Package Loss Damage Waiver Physical Damage Insurance Dealer Fleet Protection Dealer E&O Certificate Tracking Service
Learn more about EPG at www.epginsurance.com or call 901-685-3100
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“Having a lender that understands this industry is important — to me and my customers.”
equipment Finance Inventory and fleet rental finance programs
Loans and leases for capital asset acquisition
The right equipment finance programs are critical to helping you sell equipment. So talk to an equipment finance company that has experience in and a commitment to the construction industry — one that has the stability and flexibility to support you through all economic cycles. Not only do we know the difference between a dozer and a grader, but we understand that making the purchase process quick and easy for your customers is essential. Whether you sell equipment in the U.S., Canada, or both, we can help.
Manufacturer subsidy programs
To learn more about what the Wells Fargo Equipment Finance team can do for you, start a conversation with us today by calling Sidney Sexson at 480-724-3407.
Retail finance programs
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© 2015 Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries. Equipment financing transactions are provided in Canada by Wells Fargo Equipment Finance Company. Wells Fargo Equipment Finance Company is associated with Wells Fargo & Company, a company that is not regulated as a financial institution, a bank holding company or an insurance company in Canada. WCS-1237914
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www.liugongna.com T O U G H W O R L D . T O U G H E Q U I P M E N T.
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LiuGong North America offers a full-line of machines including DRESSTA bull dozers.Rugged terrain, extreme climates, remote locations. LiuGong machines are developed to excel in the toughest conditions which makes them your true reputation builders. LiuGong, Dressta, their respective logos, as well as corporate and product identity used herein, are trademarks of Guangxi LiuGong Group Co., Ltd and may not be used without permission. Š 2014 LiuGong. All rights reserved.
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Raising the Mark
SMFL has now extended their global reach from Tokyo, Japan, its corporate headquarters, to the United States. We can help you and your customers with retail financing, capital and FMV leases, rental fleet financing and coming soon inventory floorplan products. TO LEARN HOW WE CAN HELP YOU RAISE THE MARK, PLEASE CONTACT Construction and Transportation Finance Group 277 Park Avenue, New York, NY 10172 Jeffrey Whitcomb, Executive Director | 212.224.5478 Bill Mattocks, Director, Program Manager | 212.224.4636
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Business Software for AED Members
Est. 1964 Next for Windows SQL GAAP Accounting Real Time Automation Predictive Parts Inventory Equipment Management Order Entry Purchasing Fleet Management Flexible Reporting Rental Management Service Dispatch Transportation Field Service Automation Equipment Attributes Multiple Branch/Company
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Mobile Application Suite CSSP eSign eSearch Quote2Sale Specialty Services Avalara Geo Locational Tax C-Tabs Paperless Billing Foresight BI Dashboards MeS PCI CC Tokens MeS 3rd Tier CC Processing GPS Telematics Barcoding
The Software For Equipment Dealers Call 713.939.1000 For More Information
ebssales@ebs-next.com
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PARTS PROGRAM
BRIDGING THE GAP BETWEEN EQUIPMENT DEALERS AND SUPPLIERS The AMAM (All Makes, All Models) Program is an internet based heavy equipment parts solution designed specifically to help equipment dealers increase market share by expanding the opportunity to provide parts and service for all makes and models of equipment. Our program aligns suppliers and manufacturers of heavy equipment parts with equipment dealers across the country. The easy to use interface allows dealerships to efficiently and cost effectively source parts for any machine. No more will dealerships have to turn customers away because they are unable to support equipment from other manufacturers.
AMAMLOGIN.COM | INFO@AMAMPROGRAM.COM | 877-344-2399 -Ad_template.indd 2
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SHOW YOUR TEETH. Diamond Mowers’ 60" Skid-Steer Forestry Head effectively mulches trees with diameters of up to 6" in seconds.
EVEN TREES OVER 14" DON’T STAND A CHANCE.
DIAMOND’S SKID-STEER FORESTRY HEAD • • • •
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{
We need your input on your dealership through YOUR perspective Help AED learn more about your interests and business by taking our quick, year-end survey.
}
Your input will greatly improve AED’s ability to deliver the best educational courses tailored when and how you, the member, want them. This survey takes less than 5 minutes to complete. By doing so, you’ll be providing us information about your training needs, allowing us to help you and your team succeed in every department. Please complete this survey (bit.ly/aedsurvey15) and share with your coworkers. Your input is extremely valuable for the continued success of AED. Sincerely,
Brian McGuire President & CEO Associated Equipment Distributors 630-468-5123 bmcguire@aednet.org
Please complete AED’s year-end survey: bit.ly/aedsurvey15 -Ad_template.indd 2
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See things differently, think differently™
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Each Issue Delivers The Content You Need Get one year (12 issues) of CED Magazine, your source for business development , industry issues and news. Subscribe online today at: bit.ly/cedmagsubscribe
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600 W 22nd Street, STE 220
Oak Brook, IL 60523
t: (630) 468-5118
f: (630) 468-5139
www.aednet.org
3/4/2015 11:20:27 AM
YOU WANT
SOLUTIONS AND OPTIONS
YOU GET IT HERE
WITH AED BUSINESS SERVICES AED HR Help Desk Call Counsel 888-412-8079 312-506-4480 www.askhrt.com www.koponairdo.com Manned by Karla Dobbeck (karlad@hrtechniques.biz) and her associates at Human Resource Techniques, Inc., the AED HR Help Desk allows AED members to get answers to simple questions or many employment-related issues free of charge. Call about any HR compliance or procedural issue, even sensitive personnel situations. Customized specific HR services are also available to member companies at a discounted rate of $125 per hour.
Call Counsel is AED’s new FREE legal hotline for AED members provided by Kopon Airdo, LLC, AED’s general counsel. Features of this member benefit: • Staffed by attorneys from the Chicago office of Kopon Airdo, LLC, with a network of attorneys nationwide. • Callers receive immediate guidance on commercial, employment, and litigation-based legal questions, enabling them to evaluate possible courses of action – and to understand the ramifications of such actions – when a legal situation arises or is looming. • Strict confidentiality is adhered to on all calls.
AED High-Profit Dealer Group 630-574-0650 rhenderson@aednet.org This is no ordinary Dealer 20 Group – led by its own participants and custom-sized to meet individual needs, your group will review operating results, but will also discuss key financial engineering techniques, banking terms and financing options, how to downsize the balance sheet based on your current sales levels, M&A opportunities, product line optimization, and more. AED’s flexible program matches noncompetitive dealers by company size and provides executive coaching, when requested, for better overall performance and value. AED Members Only: Starting at $350/month
Three new reasons your AED membership pays off! business services.indd 1
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advertisers’ index BidSpotter.com............................................................35
Liugong Construction Machinery N.A. .........................11
CDK Global Heavy Equipment ..............Inside Back Cover
PriSim .............................................................................41
Diamond Mowers........................................................29
RFE Distribution / AMAM ..............................................23
DIS Corporation .............................................................47
Ritchie Bros. Auctioneers ............... .....Inside Front Cover
eBS Mechdata, Inc.......................................................19
Sentry Insurance............................................................5
e-Emphasys Technologies Inc. ........................................1
Sumitomo Finance and Leasing Co...............................15
EPG Insurance, Inc. ........................................................6
Webasto Product North America.................................36
Glynn General Corporation ...........................................25
Wells Fargo Equipment Finance, Inc. .............................8
Infor...............................................................................2
Woods Equipment Company .......................................37
Leading Edge Attachments ...........................................24
XAPT Corporation.......................................... Back Cover
As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2013 by ASsociated Equipment Distributors. Construction Equipment Distribution (ISSN0010-7655) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523
October 2015 | Construction Equipment Distribution | www.cedmag.com | 47
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contents CED Magazine | October 2015
vol. 81 no. 10
www.cedmag.com
>> FEATURES
30
Cover story:
Summit Preview AED Summit & CONDEX is your starting line for a successful 2016, where you can attend dealer-specific education sessions, network with your peers from across North America, discover new product lines and business solutions for your dealership.
26
A Closer Look
A one-of-a-kind joint business relationship has driven significant growth in key industries by seamlessly addressing the broader needs of the client base.
22
Lack of Action by Congress
Despite problems with regulation and other government issues, dealers continue to invest in the future.
October 2015 | Construction Equipment Distribution | www.cedmag.com | 3
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up
>> EDITORIAL TEAM CED Magazine Director SARA SMITH ssmith@aednet.org Content, Layout, Design LocalLabs AED@locallabs.com
>> COLUMNISTS Mike Dexter AED Senior Regional Manager and Director of Member Engagement Christian Klein AED Vice President of Government Affairs Brian Rehg CEO, Blue Stingray Mike Christ Executive Service Corp. Troy Ottmer Doggett Equipment Services Group Steve Calechman Journalist
contents CED Magazine | October 2015
vol. 81 no. 10
>>COLUMNS
24 >> Washington Insider
AED publication sheds light on legal issues.
36 >> Workforce Solutions
New methods are helping generate more trained techs.
40 >> Canada
This skilled labor shortage affects all Canadians.
42 >> Easy Wins
Blogging is key, and it doesn’t have to cost you a dime.
43 >> Technology 101
API Technology allows easy sharing of information.
Erik Skogsbakken FirstMerit Bank Jay Lipsy McCombie Group
>> ADVERTISING CONTACTS Vice President of Sales JON CRUTHERS 800-388-0650 ext. 334 jcruthers@aednet.org Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 311 aramirez@aednet.org
>>PLUS
34 >> Strategic Survey Update AED’s Strategic Planning Survey is turning information into action.
46 >> Family Office Looking for an alternative capital solution? Family offices are organizations dedicated to managing the wealth of ultra-high net worth families.
Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org
Official Publication Since 1920 600 22nd Street, Suite 220 Oak Brook, IL 60523 630-574-0650 fax 630-574-0132 4 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> FROM THE CHAIRMAN
DON SHILLING
It Is All About the Future for AED The board looks for new ways to deliver AED’s services while future leaders discuss succession planning.
W
hat an exciting couple of weeks in August! I attended the AED summer Board of Directors meeting and this year’s Leadership Conference. I came away from both events excited about the opportunities AED has to serve our members. At the summer board meeting, we were engaged in the process of developing the future strategy of AED. The work we started there and the discussions we had emphasized the fact that AED has fine, timely and industry-specific educational, dealer and employee development products. Our challenge is to find the best way to deliver those products and services to our members. The compact dealer needs it quick and easy to consume so he can get back to work and serve his customers. The mid-range and specialty-sized dealer wants comparative information that helps him drill down and understand how they stack up to the competition. The heavy and multiline dealers wants both the online- and seminar-type training that is affordable and accessible for all areas
of his operation. They also see the benefit of networking with other dealers at the same time. Hopefully, as you may have witnessed over the past several months, the AED packaging is changing. The way AED delivers and what AED delivers is changing. This evolution is exciting, but not yet complete. Within a few more months we hope to engage all of our members in many forms of products and services they truly need. WE ARE VERY INDUSTRY SPECIFIC. These products are not “snake oil,” they are products that help your people learn the business. Succession planning At this year’s Leadership Conference, one of the hot topics was succession planning. Like life insurance, sometimes we don’t like to talk about succession. But in our industry, most of our members are smaller dealers, family-owned dealers or partnerships. Like it or not, with the capital we have invested we must engage in succession planning and we should start early.
BRIAN MCGUIRE | AED President & CEO
>> OFFICERS
BOB HENDERSON | AED Executive Vice President & COO
>> AT-LARGE DIRECTORS
DON SHILLING Chairman General Equipment & Supplies, Inc.
TODD BACHMAN Florida Coast Equipment, Inc.
WHIT PERRYMAN Vice Chairman Vermeer Texas-Louisiana
JAMES P. COWIN Cowin Equipment Co., Inc.
WES STOWERS Sr. Vice President Stowers Machinery Corp. DIANE BENCK Vice President West Side Tractor Sales Co.
LARRY R. MILLER Kelbe Bros. Equipment Co. Inc.
TODD HYSTAD Vice President Vimar Equipment Ltd.
MITCH NEVINS Bell Trucks America
DENNIS J. HELLER VP of Finance Stephenson Equipment, Inc. TIM WATTERS Immediate Past Chairman Hoffman Equipment Co.
KENNETH E. TAYLOR Ohio CAT
A. ROY KERN, JR. Foundation President Equipment Corporation of America
The manufacturers we represent, our vendors and our lenders all appreciate a well thought-out succession plan, just like your family appreciates you taking the time to create a will, estate plan and buy life insurance. If that proverbial bus hits you in the morning, you will be ready and so will your business. Having a succession plan in place at your business can lift a huge burden off your shoulders. It can give you a road map for the future. It can give you security and a little peace of mind. It was exciting to see our future leaders engrossed in the succession planning material, asking the tough questions and ready to demonstrate they are willing to go home and be “future leaders.” As one of the gray-haired guys getting ready to exit the industry in the near future, it was my pleasure to see that AED is moving the industry in the right direction and these future leaders are figuring out how and what resources are needed to solve future problems. n
COREY VANDER MOLEN Vermeer MidSouth, Inc.
>> REGIONAL DIRECTORS RON BARLET West Reg. Bejac Corp. CRAIG DRURY Eastern Canada Reg. Vermeer Canada Inc. RYAN GREENAWALT Midwest Reg. Alta Equipment Co. TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. CHRISTOPHER PALMER Northeast Reg. Wood’s CRW Corp. GILES POULSON Rocky Mountain Reg. Faris Machinery Co. JOHN RIGGS, IV South Central Reg. J A Riggs Tractor Co. JAY RODES Southeast Reg. Wilson Equipment Co., LLC
October 2015 | Construction Equipment Distribution | www.cedmag.com | 7
Happening
www.cedmag.com
Register Now! AED’s Summit & CONDEX is right around the corner, so register now and mark your calendars! Gaylord National Resort & Convention Center Register today at bit.ly/summit16 Mark your calendars for Jan. 19-22.
Current events and news for the equipment distribution industry Get Social with AED! Connect with AED on our new social media platforms.
Mention us on Twitter @AEDSocial
10 » AED hp 14 » Industry Beat 17 » Ready to Order 20 » Data Trends
Like us on Facebook @ Facebook.com/AEDSocial October 2015 | Construction Equipment Distribution | www.cedmag.com | 9
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>> AED hp
Join AED in San Antonio, Texas for our new Branch Manager Seminar Don’t miss this opportunity to network and learn strategy with top-performing branch managers within the Industry This program will reset your perspective by giving you ideas, suggestions and tools to become a top-performing leader. Participants will continue to make money while driving the goal of keeping and creating more customers. As the leader for your branch location, you are responsible for people, assets, business relationships and profitability. This course is designed to address skill sets, processes, techniques and even the time management skills to become a top-performing branch manager. Register today.
Day One:
The Branch Manager as a True Leader • The differences between a leader and a manager • Taking a personal assessment of your strengths and areas for improvement as a leader • Establishing a change plan for yourself as an example to your dealership team The Anatomy of a Dealership Location • Financial priorities and responsibilities • Operational priorities and responsibilities • Key performance indicators for each profit center How to Examine & Evaluate Current Processes within each Department to Improve • Communication • Operational efficiency • Customer satisfaction • Financial performance
Determining a “Most Important” Project List • How becoming an excellent time manager can drive results! Making Meetings Interesting/Informative/Effective
Day Two:
Recruiting/Hiring/Training New Associates at your Dealership • Best practices for recruiting and hiring • The importance of profile assessments • Establishing a solid on-boarding process for new hires Managing Conflict in the Workplace • Resolving conflict with associates and customers • Building a culture of trust in your organization The Importance of Customer Satisfaction Surveys Case Studies & Role Plays
Sign up now and book your travel.
If you have questions, call 630-468-5126. Visit bit.ly/aedbranch to register today! Members: $895 Nonmembers: $1,595
10 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> AED hp
Cruthers: New VP of Sales Excited To Be Part of Energized Team When he began his new role in late September as Associated Equipment Distributors’ vice president of sales, Jon Cruthers admits there wasn’t much down time. Cruthers got to work right away in the new role and has been preparing for the annual AED Summit slated for January in Washington, D.C. He “jumped right into” sales-related activities focused around the summit. That means gaining sponsorships, getting booth spaces sold and arranging hospitality suites, which many members use as venues to meet with dealers who are members of the association. In his new role, 45-year-old Cruthers is responsible for sales-related activities for the association, including event sponsorships, the annual AED summit and trade show, and advertising and marketing for the monthly Construction Equipment Distribution magazine. He is also charged with creating advertising opportunities for AED’s monthly newsletters and website as well as “all aspects of advertising sales for incoming businesses coming into the association to allow it to provide benefits in terms or services and support.” Before coming to AED, Cruthers spent 22 years at Seimens Corporation, a multinational engineering company based in Europe, as a sales manager in a number of different salesrelated roles. He was involved in sales, business development and marketing activities in industrial manufacturing focused businesses. The job with AED allows him to put his experience in industrial manufacturing to use. “I bring a pretty new perspective of what’s happening within the manufacturing industry,” Cruthers said. “It was an opportunity to get involved with an association, which has an engaged membership, to help provide them the support they need to help grow their business.” He said AED is made up of a “very focused team,” that’s also very energized and working toward a common goal: To help AED members grow and stay informed. He can be reached at 630-468-5127 and by email at jcruthers@aednet.org.
AED Visits South Plains College in Levelland, Texas Steven Johnson, AED vice president of foundation operations, and Kristen Crooks, AED regional manager, visited South Plains College in Levelland, Texas, in September. The college’s diesel service technology department is working with local AED dealers toward meeting AED’s Technical Standards in order to achieve AED accreditation. College faculty and representatives from supporting dealers met during the visit to discuss the current status of the accreditation initiative, as well as moving the initiative forward. Attending were Rob Blair, dean of technical education, and Whitney Owens, the department chair for diesel service technology. Dealer representatives included Dean Key, Yellowhouse Machinery; Karen Buenrostro, Warren CAT; Amanda Haack, Vermeer Texas-Louisiana; Dustin Thane, Ditch Witch Southwest; and Brad Sibert, Cisco Equipment. Shortly after returning to AED’s Oak Brook, Illinois, offices, AED was notified by Owens
that a Title V financial grant application for the college had just been approved. The diesel service technology department will benefit because a portion of those monies will help the program obtain needed resources such as wheel loader, excavator and backhoe training materials. In turn, the school is better able to serve the needs of both students and local equipment dealers. AED’s Technical Standards, now in the eighth update, were completed in 2014. They are an equipment industry statement of what students graduating from a two-year-degree college program in diesel equipment technology should know at graduation. For each update, representatives from AED members - dealers, manufacturers and technical colleges - meet to review the standards. In 2000, the first college diesel equipment technology program received AED accreditation. Today, 39 programs at 29 colleges have been AED accredited.
Whitney Owens, department chair for Diesel Service Technology at South Plains College, and Steve Johnson, AED vice president of Foundation Operations, met in September to discuss AED’s accreditation initiative.
12 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> AED hp
Don’t Miss It Mark Your Calendar For details and to register, visit the AED online store at aednet.org or call 800-388-0650. Nov. 17-19 The Four Pillars of the Sales Profession Drury Inn & Suites Dayton North, Dayton, Ohio Nov. 18-19 Branch Manager Seminar Hotel Valencia Riverwalk, San Antonio, Texas Jan. 19-22 Summit & CONDEX Gaylord National Resort, Washington, D.C. April 27-29 2016 Financial Symposium Loews Hotel, New Orleans, Louisiana
June 8-9* Washington Fly-In The Willard InterContinental, Washington, D.C. Aug. 23-26 Leadership Conference Four Seasons Las Vegas, Las Vegas, Nevada Sept. 14-16 Executive Forum Location to be announced Chicago, Illinois
Top 10 Reasons Why AED Management Certificates Are Important to Your Company’s Success There is no such thing as a brief explanation on how to manage well. The skill, knowledge and discipline needed to manage an equipment dealership branch or department demand exposure to ideas and best practices. These individuals need to manage all aspects of people, sales, customers, finance and operations. Managing well also requires experience and the ability to apply these best practices effectively. The AED Management certificates focus on developing these skills within your employee. Here are the top 10 reasons why these certificates are important: 1. AED certifications are awarded based on successful completion of industry-specific education focused on optimal performance and dealer profitability. 2. AED certifications enhance the credibility of your company and underscore its commitment to your customers. 3. AED-certified managers understand your expectations and have the knowledge and skills to fulfill them. 4. AED certification education helps managers to know how to prevent and/or handle problems that can occur with your employees, customer relationships and managing financial issues and operations. 5. AED certifications provide relevant, targeted knowledge
and ensure that your managers’ skills and best practices are in alignment with the current trends and standards of the constructon equipment industry. 6. AED certifications foster a professional attitude and motivate managers to seek excellence because they understand how their role impacts the entire business. 7. AED certifications provide industry-based standards by which performance can be measured. They provide a means to ensure that your managers have had consistent and effectiveeducation. 8. AED certifications are a tangible investment in managers’ education and job excellence, and send a clear message to them that dealer management values their contributions and is interested in their personal and professional growth. 9. AED certifications are valuable in specifying job requirements, identifying skills and knowledge gaps and developing individual performance improvement plans. 10. AED certifications provide managers with a national credential recognized by the equipmentdistribution industry. The AED Foundation offers certifications for branch operations, service, parts andrental management. Learn more about how you or your employee can become an AED certified manager! Contact Rebecca Lintow at 630-4685113 or rlintow@aednet.org. October 2015 | Construction Equipment Distribution | www.cedmag.com | 13
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>> INDUSTRY BEAT
Terex Utilities Hosts 37th Annual Hands On Training Event More than 40 people from around the world, including participants from Australia, Brazil, Chile, Peru and the United States, recently attended Terex Utilities’ 37th annual Hands On Training seminar from Aug. 17-19 at the company’s facilities in Watertown, South Dakota. Representing 30 companies, the participants of this year’s three-day Hands on Training event gained valuable training on the proper operation and application of Terex® digger derricks, aerial devices and auger drills. The 2015 Hands on Training event gave attendees, who include fleet managers and engineers, safety managers and administrators, vehicle supervisors, shop managers, linemen and mechanics, the opportunity to rotate through six different training stations. At each station, participants learned more about the equipment, and as weather permitted, they had the opportunity to perform actual jobs with the equipment at Terex Utilities’ outdoor training facility under direct supervision of Terex trainers. In addition, the trainers demonstrated other operations and procedures not covered in the six stations, including pole removal techniques, multi-parting winch line lifting and proper equipment setup. Work concepts, such as the company’s Work Zone Capacity standard for spec’ing digger derricks, as well as new products such as the General 80 digger derrick with fiberglass 4th section, were also integrated into this year’s event.
Caterpillar CEO: U.S. Manufacturing on Verge of ‘Exciting’ Era Caterpillar Chairman and CEO Doug Oberhelman recently appeared on CNBC’s “Squawk Box” with Honeywell CEO Dave Cote and said the U.S. is on the verge of a renaissance in manufacturing. Caterpillar has a long history of innovation and using cutting-edge technology to provide customer solutions. New breakthroughs there and at other large manufacturers could change the face of global manufacturing “We are seeing a lot of things happening inside our factories that are really cool,” Oberhelman said. “It’s exciting.” Oberhelman’s overall message was what he said he tells employees every day: Innovation is key, now and in the future. The Caterpillar CEO went on to say new laws and regulations around the world are another key to the promised manufacturing renaissance, as laws directly affect a company’s operations and fi nancial future. Oberhelman told CNBC that the manufacturing sector needs pro-growth policies, including trade agreements. “We need access to markets,” Oberhelman said. “If
foreign markets are opened even further, and if the international playing field is level, we can expect even more opportunities for Caterpillar.” Oberhelman highlighted the importance he puts on the U.S. Export-Import Bank, which he said supports the company’s customers and suppliers around the world. Failure to reauthorize the Ex-Im Bank may likely cede business to Caterpillar’s overseas competitors, Oberhelman said. While many international economists would argue the Export-Import Bank doesn’t level the playing field and rather gives the U.S. an unfair balance-of-trade advantage, Oberhelman said the bank is key to their business. Purchases of Caterpillar products are often contingent upon Ex-Im Bank fi nancing, Oberhelman said, because if customers can’t get fi nancing from the U.S. Ex-Im Bank, they can get comparable fi nancing from the export credit agencies in other countries, which benefits Cat’s competitors.
14 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> INDUSTRY BEAT RDO Equipment Named Sakai America Dealer of the Year Sakai Heavy Industries recently named RDO Equipment Co. as the Sakai America Dealer of the Year. RDO Equipment, representing Sakai in Central Texas, Arizona and Southern California, received the award based on metrics that include both volume and total sales. In addition to Dealer of the Year, the highest level of recognition, Sakai also recognized four top regional dealers in the Northeast, West, Midwest and Southeast. “We are pleased to be the Sakai dealer of the year and appreciate the recognition. Sakai complements our overall product offering and has been a contributor to our rental growth and market strategy,” RDO Vice President Daryl Shelton said. “Sakai makes reliable products that are well-received by our customers who purchase and/or rent for their fleets.” Denver Weinstiger, vice president of Sakai Sales and Product Support, said, “Sakai has had an outstanding year thanks to the hard work and personal commitment of our dealers. We strongly commend Daryl Shelton and his team in Texas and Dennis Howard and his team in the Southwest for their efforts in promoting Sakai for RDO.”
Cummins Executive Charged with Leading Foundation Cummins, Inc. named Mary Titsworth Chandler as the executive director of corporate responsibility and CEO for the company’s foundation, effective Dec. 1. “Corporate responsibility is one of Cummins core values, and is very important to me personally,” said Tom Linebarger, chairman and CEO of Cummins. “Over the past several years, I have worked closely with Mary on corporate responsibility, especially as the leadership sponsor of TEC: Technical Education for Communities. Through our work together, I have experienced Mary’s energy and endless idea-generating approach. Mary is deeply committed to our communities, especially the opportunities for jobs and improved lives that we work to provide to the most disadvantaged.” The Cummins Foundation is the global giving arm of the Indiana-based firm, which designs, manufactures, distributes and services diesel and natural gas engines and related technologies worldwide. The foundation makes grants primarily in Cummins’ communities around the world and for projects that engage Cummins employees. Since joining Cummins in 2011, Chandler has helped lead the development of policy and strategic programs related to corporate responsibility, including designing a metrics-based approach to TEC: Technical Education for Communities, the company’s global initiative that targets technical skills gap through local vocational education programs. Her accomplishments over the past four years as the Cummins’ corporate responsibility director of Global Strategic Investments and Policy is what led to her new appointment, Linebarger said. “I am excited to work with Mary to ensure that corporate responsibility continues to thrive and that Cummins and our employees are always serving and improving our communities – it’s a big part of who we are as a company and a global citizen.”
Vermeer’s New Job Ready Program Boosts Used-Equipment Guarantees Vermeer recently launched its Job Ready program for the pre-owned equipment market, in which Job-Ready equipment receives a detailed inspection from a Vermeer technician, as well as comprehensive parts and labor coverage for major components. The Job Ready service contracts cover parts and labor for major components for 12 months, or 10,000 bales from the date of purchase, whichever occurs first. Currently, the Job Ready program is available on select baler models that fall within a seven-year model range and have baled less than 20,000 bales.
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>> READY TO ORDER
Ditch Witch Responds to Challenge with New Tier 4 Drill Challenged to design Tier 4-compliant equipment, horizontal directional drill (HDD) engineers at Ditch Witch®, a Charles Machine Works Company, did more than simply meet compliance requirements. It met power demands and used it as an opportunity to design additional features inspired by customers’ input. The new Ditch Witch Tier 4 HDD models further increase customers’ underground project productivity and competitiveness. Tier 4 engines are available on all models with the JT60 and JT100 coming in early 2016. For example, the SaverLok® System within the new Tier 4 HDD models maintains the industry’s tightest connection between the drill pipe and drive system to protect against drill pipe wear and tear. Heavy-duty anchor systems, open-top vise wrenches, improved HDD tooling, more intuitive operator interfaces, and more easily accessible service points simplify operation and servicing. Engineers included a controller area network (CAN) system in many models as well as integrated remote displays to improve the operator’s ability to control and monitor equipment performance. The Volvo EC60E is the With the ability to bore through rock without a mud motor, Ditch Witch® All Terrain drills meet the job-site need to deliver the maximum amount of power Perfect Fit for Any to the bit, and to simultaneously drill and steer though mixed soil conditions Application and rock. For more information, visit www.ditchwitch.com.
Doosan Introduces Tier 4-Compliant DX180LC-5 Excavator with Machine Updates and Improved Fuel Savings Doosan’s new 129-net-horsepower DX180LC-5 crawler excavator has been added to the Tier 4-compliant lineup, featuring improved performance, operator comfort, fuel economy and jobsite durability. The Tier 4-compliant model replaces the interim Tier 4 (iT4) DX180LC-3 crawler excavator. The Doosan DX180LC-5 complies with Tier 4 emission standards with modified diesel engines and after-treatment technologies. The engine is optimized for use with a high-pressure common-rail (HPCR) fuel delivery system and a cooled exhaust gas recirculation (CEGR) system. It utilizes a diesel oxidation catalyst (DOC) to reduce particulate matter (PM) and selective catalyst reduction (SCR) after-treatment to reduce nitrogen oxides (NOx). Additionally, a variety of after-treatment systems have been implemented as part of Tier 4 compliance, such as DEF, which is used with SCR technology. For more information, visit www.doosan.com.
The newest compact crawler excavator from Volvo Construction Equipment is built for comfortable, efficient and versatile operationon any job site, from confined spaces to major construction projects. Equipped with a Volvo Tier 4 final engine and adjustable hydraulic flow, the machine offers a 10-percent increase in swing force and lifting capacity, as well as a 20-percent increase in power — all while boasting an 8-percent improvement in fuel efficiency as compared to the prior series model. With a compact design, heavy-duty arm and offset boom, this versatile and powerful excavator is suitable for any application. For more information, visit www.f.com.
October 2015 | Construction Equipment Distribution | www.cedmag.com | 17
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>> READY TO ORDER Komatsu America Corp. Introduces New PC45MR-5 and PC55MR-5 Hydraulic Excavators Komatsu America Corp., a leading global heavy equipment manufacturer, has introduced the new PC45MR-5 and PC55MR-5 hydraulic excavators, two machines with tight tail swing radii, swing booms and convex sliding doors that hug the machine to help with work in tight spaces. Featuring 2.19-liter, 38-horsepower, EPA Tier 4 final, 4D88E-7 engines, the new PC45MR-5 and PC55MR-5 use up to 5 percent less fuel than their predecessors with no loss to performance or productivity. “The PC45MR-5 and PC55MR-5 are designed for versatility, maneuverability, comfort and low operating costs,” said Kurt Moncini, Komatsu America product manager. “For most confined-area job sites with construction, utility, landscaping or similar applications, this is the right tool for the job,” Moncini said. The new Tier 4 Final engine is not only more fuel efficient, it has an after-treatment system that requires no diesel exhaust fluid (DEF). The Komatsu diesel particulate filter (KDPF) and other after-treatment components are also specifically designed to work in harmony with the engine for added efficiency and long life. For more information, visit www.komatsuamerica.com.
Atlas Copco’s Dynapac F800T Offers High Visibility, Enhanced Productivity Atlas Copco’s new Dynapac F800T tracked paver joins the company’s 10-foot highway class paver range. The new paver meets Tier 4 Final emission regulations and enhances productivity through operator comfort and optimal visibility. The operator has high visibility of the paving surface with the paver’s dual, swing-out operator platforms. The dual operator platforms swing out from each side to give the operator a clear view of the worksite. The platforms also eliminates operator fatigue from prolonged leaning that can occur when an operator strains in a stationary seat to get a clear view of the work surface. Ergonomically-designed control panels allow the operator to focus on paving and look out for nearby workers. All control and operational switches are grouped according to purpose and frequency of use, which allows the operator to quickly adjust paving settings without hampering production or risking safety. The F800T is equipped with a six-cylinder, Cummins diesel engine that meets Tier 4 Final emission standards and minimizes ownership costs. The six-cylinder engine reduces strain on engine components that typically occurs with fourcylinder engines, which as a result minimizes maintenance costs and servicing downtime. For more information, visit www.atlascopco.com.
JCB Unveils the 3CX Compact Backhoe, Packs Power Into Machine 35 Percent Smaller JCB pioneered the backhoe loader concept in 1953, introducing many innovative features to the market. And, in a rapidly changing world, its new 3CX Compact represents the latest in backhoe innovation. Designed to give you big performance in small areas, it’s perfect for urban working and restricted construction sites. A tight turning circle and switchable steering modes allow it to work in a single carriageway with minimum disruption and maximum productivity. Ease of use, controllability and legendary JCB build quality is also standard on the 3CX Compact backhoe. For more information, visit www. jcbna.com. 18 | www.cedmag.com | Construction Equipment Distribution | October 2015
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(2000=100) from its August reading of 126.2. The Momentum Index is a monthly measure of the first (or
- TELESCOPIC − 0.6% BACKHOES 0.0% initial) report for nonresidential building have been0.9% shown to lead construction − 0.6% 0.9% 0.9% BACKHOES −projects−in planning, 0.0% which 0.9% AWP - AWP TELESCOPIC BOOMSBOOMS
RENTAL RATE RENTAL RATE RENTAL RATE INDEX
1.4 1.4 spending 1.4 for nonresidential buildings by a full year. The impetus behind September’s gain was a 12.0%1.4 1.4 1.4 1.4 increase from month in institutional building planning. State and local budgets, which 1.4 1.4 1.4 the previous 1.4 1.4 finance 1.35 1.35 1.3 1.35 1.35 1.3 1.3 1.3 1.3 1.3 1.24 projects institutional category, continue to recover from their recessionary weakness. this 1.24 many 1.4 1.4 1.4 in the 1.4 1.4 With 1.4 1.35 1.35 1.3 1.35 1.35 1.3 1.3 1.3 1.3 1.3 in a sawsupport, planning for new institutional buildings has trended upward over the past year, although 1.24 1.24 1.4 1.2 1.4 1.4 1.2 1.2 1.4 1.2 1.4 1.4 1.2 1.2 1.35 1.35 1.35 1.3 1.3 1.3 Commercial 1.3 pattern. construction, on the other hand, is at a more mature stage1.35 of its recovery 1.3 and1.3 1.24 1.24 tooth 1.2 1.2 1.2 1.2 1.2 1.2 1.35 1.4 1.3 1.1 1.35 1.351.8%1.35 1.4 1.4 planning has been relatively more stable. Planning in the commercial category increased in September. 1.3 1.3 1.1 1.1 1.3 1.1 1.4 1.4 1.3 1.3 1.1 1.1 1.24 1.4 1.24 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.35 1.35 1.0 1.3 1.35 1.35 1.2 1.0 1.0 1.3 1.3 1.0 1.3 1.2 1.2 1.2 1.0 1.0 1.3 1.3 1.2 1.2 1.24 There were a total of eight projects entering planning in September with a value that exceeded $100 million, 1.24 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 1.0between 1.0 split equally commercial and institutional projects. In the commercial building sector,1.0 a $330 1.0 0.9 0.9 0.9 1.2 0.9 1.1 1.2 1.2 0.9 0.9 1.2 1.1 1.1 1.1 1.2 1.1 1.02011 2014 2015 20151.2 2011 2012 2012 2013 2013 2014 2014 2015 2015 2013 2014 alteration 2015 2012 million office building for Fannie Mae2012 in Washington DC and2014 a $150 million of an 1.1 office 1.02011 2012 1.02011 014 2012 2013 2015 2011 1.02011 1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.9 complex 1.1 in Plano TX entered2012 planning.2012 Within the institutional building2014 sector,2015 a $400 million hospital in2011 2012 1.02011 1.1 2014 2015 20151.1 2012 2013 2013 2014 2014 2015 2015 2013 2014 20151.1 2012 1.02011 2012 1.0 1.0 1.1 014 2011 2013 2011 1.02011 1.1 1.0 0.9 0.9 0.9 0.9 0.9 0.9 Rockford IL2011 and a $230 million clinic 2012 addition in Weston FL entered 2014 2015 2015 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2013 2014 September 2015 20112015 2011 2012 2012 014 2013 2014 planning. 2015 0.92011 2012 1.0 0.9 0.9 0.9 1.0 1.0 1.0 0.9 0.9 1.0 1.0 Momentum 5.8% 2014 higher2014 in September to 133.52011 1.42011 2012 2012 2013 2013 2014 2014 2015 2015 2011 2011 2012 2012 2014 2015 The 2015Dodge 2011 2012 Index 2012 moved 2013 2015 014 2011 1.4 2013 2015 1.4 1.4 1.4 FORKLIFTS 1.4 1.34 SKIDDodge STEERS − 0.2% - HI-REACH − The0.2% 1.34 − Momentum 0.2% 1.2% 1.2%1.34 1.34 - HI-REACH −of 126.2. 0.2% 1.2% 1.2% 0.9 SKID STEERS 0.9 0.9 0.9 0.9 Index (2000=100) fromFORKLIFTS its August reading Momentum Index 0.9 2014 20151.34 20151.34 2012 2013 2014 2014 2011 2012 2012 2013 2013 2014 2014 20151.3420151.34 2012 014 2013 20151.3020151.30 1.42011 1.4 1.42011 1.42011 2012 1.42011 1.42011 2012 1.3 1.3 1.3 1.3 1.3 1.3 (Year 2 000=100) 1.30 1.30 1.4 1.4 1.4 is a monthly measure of the first (or initial) report for nonresidential 1.4 1.4 1.4 1.34 1.34 1.34 1.34 1.3 1.3 1.3 1.3 1.3 1.3 1.30 1.4 1.30 1.4 1.2 1.4 1.4 1.2 1.2 1.2 1.4 1.4 1.2 projects 1.2 Sep-‐15 Aug-‐15 % Change 1.34 1.34 1.34 1.34 building in planning, which have been shown to lead construc1.3 1.3 1.3 1.3 1.3 1.30 1.3 1.30 1.2 1.2 1.2 1.2 1.2 1.2 1.4 1.3 1.1 1.4 1.4 1.4 1.3 1.3 1.1 for nonresidential buildings by a full year. The impetus 1.3 1.1 1.1 1.4 1.4 Dodge Momentum Index 133.5 126.2 5.8% 1.34 1.3 1.3 1.1 1.1 1.34 tion 1.34 spending 1.34 1.2 1.2 1.2 1.2 1.2 1.2 1.30 1.30 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 1.0 1.3 1.0 1.2 1.3 1.3 1.0 September’s 1.0 Commercial Building 142.0 139.5 1.8% 1.3 1.2 1.2 1.2 behind gain was a 12.0% increase from the previous month 1.3 1.3 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.0 Institutional Building 122.9 109.7 12.0% 0.9 0.9 0.9 in institutional building planning. State and local budgets, which finance 1.2 0.9 1.1 1.2 1.2 0.9 0.9 1.2 1.1 1.1 1.1 1.2 1.2 1.1 1.1 1.02011 2012 2014 2015 20151.0 2011 2012 2012 2013 2013 2014 2014 2015 2015 2012 2013 2013 2014 2014 2015 20151.0 2012 1.02011 1.02011 2012 014 2011 1.0 2011 0.9 0.9 0.9 0.9 0.9 0.9 many projects in the institutional category, continue to recover from S ource: D odge D ata & A nalytics 1.0 1.0 1.0 1.1 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2012 1.02011 1.1 1.02011 1.0 1.12011 2012 1.12011 0.9 014 2015 2012 2013 2014 2015 2012 2013 2014 2015 1.1 1.1 0.9 0.9 0.9 Jun 2015 /category May2015 2015 2012 Jun 2015 / Jun /2014 2011 &2014 2012 &1.0 2013 Jul 2013 2013 Jun 2014 2013 2014 2015 20150.92011 0.92011 2012 2012 2014 2015 their 2015 recessionary 2011 weakness. 2012Planning 2013 2011 2012 2013 014 2011 1.0 2012 2013 2014 2015 in the commercial 2011 2012 0.9 1.0 0.9 0.9 0.9 1.0 1.0 0.9 0.9 20151.0 2014 2015 2015 2011 2011 2012 2012 2013 2013 2014September 2014 2015 2015 2011 2012 2012 2013 2013 2014 2014 2015 2015 2011 2011 2012 2012 014 1.4 1.4 in September. 1.4 increased 1.8% For more information, visit Dodge Data1.4 &2011 Analytics at www.construction.com. 1.4 1.4 0.9 0.9 0.9 0.9 0.9 0.9 1.4 2014 2015 20151.4 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 1.4 1.4 AWP ARTICULATING BOOMS − 0.5% 1.2% FORKLIFTS WAREHOUSE/INDUSTRIAL − 0.8% 2.0% 1.4 014 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 AWP -1.3 ARTICULATING BOOMS − − 1.3- WAREHOUSE/INDUSTRIAL 1.3 −0.5%0.6%1.2%0.9%FORKLIFTS BACKHOES − 0.0% 0.8%0.9% 2.0%1.4 AWP - TELESCOPIC BOOMS 1.3 1.3 1.3 1.4 1.4 1.4 1.4 1.4 1.4 1.21 1.4 1.21 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.17 1.17 1.17 1.17 1.4 1.2 1.4 1.4 1.2 1.2 1.2 1.4 1.4 1.2 1.2 1.21 1.4 1.4 1.21 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.35 1.35 1.17 1.17 1.3 1.17 1.17 1.3 1.3 1.2 1.2 1.2 1.2 1.24 1.2 1.2 1.21 1.21 1.4 1.4 1.4 1.4 1.3 1.1 1.4 1.4 1.4 1.3 1.3 1.1 1.1 1.3 1.1 1.4 1.4 1.3 1.3 1.1 1.1 1.17 1.35 1.35 1.17 1.17 1.3 1.17 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.24 Physical 1.2 1.21 1.4 1.2 1.21 The charts below show physical utilization by equipment category. utilization is the percentage of fleet cost which is 1.4 1.4 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.35 1.17 1.17 1.35 1.17 1.17 1.3 1.3 1.0 1.3 1.3 1.2 1.0 1.0 1.3 1.3 1.0 1.3 1.2 1.2 1.0 1.0 1.241.2 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 “On1.1 1.1 1.21 on-rent a given period. Physical utilization is cost weighted. Rent” and “In Fleet” status are determined on a nightly 1.1 1.35during 1.35 1.4 1.21 1.3 1.1 1.4 1.4 1.3 1.3 1.0 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.24 1.17 1.17 0.9 1.17 1.17 1.2 1.2 0.9 0.9 1.2 0.9 1.2 1.1 1.2 1.2 0.9 0.9 1.2 1.1 1.1 1.1 1.2 1.2 1.1 1.1 1.1 Jun 2015 / May 2015 Jun /2012 Jun /2014 1.0 2014 2015 basis 20151.0 2011 a2012 2012 2013 2014 2015if it 1.0 2011 2012 2013 2014 2015 2011 2012 1.1 1.1 2011 & 2012 2012 & 2013 Jul 2013 Jun 1.0 seven days week, 365 days a year. A unit is “On Rent” is at a job site earning rental revenue. A unit is “In Fleet” if it is a2015 014 2011 1.0 2013 2014 2015 2011 2012 2013 2014 2015 2011 1.0 1.35 1.35 1.0 1.3 1.2 0.9 1.0 1.0 1.3 1.3 1.2 1.2 0.9 0.9 0.9 0.9 0.9 1.1 1.0 1.1 1.1 2014 2015 20151.1 2011 2012 2012 2013 2013 2014 2014 2015 20151.241.1 2011 2012 2013 2014 2015 2011 2012 2012 1.1 1.0 1.0 1.0 1.1 1.1 014 2011 2011 2012 2013 2014 2015 2011 1.0 1.0 1.1 1.0 0.9 rental owned by the client. Units out for repair and refurbishment are considered “In Fleet.” 1.0 1.0 0.9 0.9 0.9asset0.9 0.9 0.9 0.9 0.9 1.2 1.1 1.2 2014 2015 2015 2011 1.2 2011 2012 2013 2013 2014 2014 2015 2015 1.1 1.1 2011 2012 2013 2014 2015 2011 2012 014 2011 1.0 1.0 0.9 2014 20151.0 2012 2013 2014 2015 2011 2012 2012 2013 2013 2014 2014 2015 20151.0 2012 1.02011 2012 1.02011 2012 0.9 0.9 0.92011 1.0 1.0 0.9 0.9 / May 2015 2012 Jun /Gary Jun & 0.9 2013Asset1.0 Jul 2013 /2014 Junat 2013 Source: Rouse Services. Contact McArdle gmcardle@rouseservices.com, (310) 363-7520 0.9 0.9 2014 2015 20112015 2012 2013 2014 2014 2015 2015 - TELESCOPIC 2011BOOMS 2012 2013 2014 2014 2015 2015 2011 2011 2012 2012 014 2012 2013 2011 2012 2013 − 0.6% 0.9% − BACKHOES AWP 1.0 1.1 1.4 1.4 2014 2015 20151.42011 1.4 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 1.0 1.0 1.1 1.1 1.4 1.4 0.9 0.9 0.9 0.9 ### 0.9 0.9 0.9 1.4 20150.9 1.4 0.9 1.4 2015 2014 2015 2011 2012 2012 2013 2013 2014 2014 2015 1.4 1.42011 2011 2012 2013 2014 2015 2011 2012 2014 20151.42011 1.4 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2012 1.4 1.4 014 2011 2012 2013 2014 2015 2011 2012 1.26 0.9 1.0 0.9 0.9 1.26 1.0 1.0 1.3 1.3 1.3 1.3 1.3 1.3 1.4 20151.31 1.4 1.42011 2014 1.4 2012 2013 2014 2015 2011 GENERATORS 2012 2014-3.1% 2012 1.4 1.42011 1.35 1.4 AWP 1.3120151.31 1.31 1.3 1.4 1.4 AWP - SCISSOR LIFTS − 0.4% 1.9% − 2013-2.1% 1.3 -FORKLIFTS SCISSOR LIFTS − 0.4% 1.9% GENERATORS − -2.1% -3.1% 1.26 1.4 1.4 1.4 1.24 1.26 1.3 1.3 1.3 0.9% 1.3 BACKHOES − 0.0% 0.9% 1.4 1.3 1.3 1.3 1.34 1.34 SKID STEERS − 0.2% 1.2% 1.4 - HI-REACH − 0.2% 1.2% 1.4 0.9 0.9 0.9 1.4 1.4 1.4 1.31 1.2 1.2 1.2 1.35 1.4 1.4 1.4 1.312015 1.31 1.2 1.2 1.2 1.3 20151.31 1.30 1.3 1.4 1.26 1.4 1.4 1.26 2014 1.3 2011 2012 2013 2014 2015 2011 2012 2013 2014 2011 2012 1.4 1.4 1.3 1.24 1.3 1.3 1.3 1.3 1.3 1.4 1.4 1.2 1.2 1.34 1.34 1.4 1.2 1.3 1.31 1.3 1.3 1.31 1.2 1.2 1.2 1.31 1.4 1.35 1.31 1.2 1.2 1.3 1.3 1.3 1.301.2 1.26 1.4 1.4 1.26 1.4 1.4 1.4 1.4 1.24 1.4 1.3 1.3 1.3 1.1 1.1 1.1 1.4 1.4 1.4 1.3 1.3 1.3 1.1 1.1 1.1 1.34 1.34 1.35 1.2 1.2 1.2 1.3 1.3 1.3 1.31 1.31 1.3 1.3 1.2 1.2 1.2 1.31 1.4 1.2 1.35 1.24 1.24 1.31 1.4 1.4 1.2 1.3 1.3 1.1 1.1 1.301.2 1.4 1.3 1.1 1.4 1.2 1.4 1.4 1.4 1.2 1.2 1.24 1.1 1.1 1.1 1.1 1.1 1.34 1.34 1.2 1.35 1.2 1.2 1.26 1.1 1.3 1.0 1.0 1.0 1.3 1.26 1.3 1.3 1.3 1.3 1.3 1.0 1.0 1.0 1.3 1.2 1.2 1.2 1.3 1.3 1.2 1.2 1.2 1.24 1.24 1.1 1.301.3 1.1 1.4 1.2 1.1 1.4 1.2 1.2 1.31 1.31 1.2 1.2 1.1 1.31 1.31 1.1 1.1 1.1 1.35 1.0 1.0 1.1 1.1 1.3 1.3 1.2 1.2 1.0 1.35 1.3 1.2 1.4 1.3 1.3 1.0 1.0 1.0 1.1 1.4 1.4 1.3 1.3 1.3 1.1 1.1 1.0 1.0 1.0 1.24 1.24 1.34 1.34 1.24 1.1 1.1 1.1 1.2 0.9 0.9 0.9 1.2 1.2 1.2 1.2 1.2 1.2 0.9 0.9 0.9 1.2 1.1 1.1 1.1 1.2 1.2 1.2 1.1 1.1 1.1 1.0 2015 1.020151.0 1.35 1.301.0 1.4 1.0 1.3 1.1 1.0 1.4 1.3 1.0 1.0 1.1 1.1 1.0 2014 2011 2012 2013 2014 2015 2011 2012 2013 2014 2011 2012 2012 1.1 1.1 014 2015 2011 0.9 2012 2013 2014 2015 2011 0.9 2012 2013 2014 2015 1.2 2011 0.9 0.9 0.9 1.24 1.24 0.9 1.0 1.2 1.1 1.1 1.0 1.0 1.2 1.3 1.1 1.2 1.2 1.3 1.3 1.2 1.2 1.2 0.9 0.9 20121.0 0.9 1.0 1.0 2011 2012 2013 2014 2015 2011 2013 2014 2015 2011 2012 2013 1.0 1.1 1.0 1.0 1.1 1.1 1.1 1.1 1.02011 1.1 1.02011 1.1 1.02011 1.1 2014 2015 2011 2012 2012 2013 2013 2014 2014 2015 2015 2011 2012 2013 2014 2015 2011 2012 1.1 1.1 1.1 014 2012 2013 2014 2015 2012 0.9 2015 0.9 1.35 1.0 1.0 0.9 1.3 1.2 1.0 1.0 1.0 0.9 1.3 1.2 0.9 0.9 0.9 0.9 1.02011 1.020110.9 1.1 1.1 2012 0.9 2013 2012 2013 2014 2013 2014 2015 20141.24 2012 2013 0.9 0.9 1.02011 1.2 1.1 1.120112012 1.1 1.2 1.2 1.1 20141.24 2011 20122013 2012 20132014 2013 2014 2015 2014 2015 1.1 1.1 2011 2011 2012 014 0.9 2015 2011 2011 1.0 0.9 2015 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 2014 2015 2015 2011 2012 2013 2014 2015 2011 2012 2012 2013 2014 2015 0.92015 20151.0 2011 2012 2012 1.0 0.9 0.9 0.9 0.9 0.9 2011 1.2 2011 1.2 2012 0.9 2013 2012 2013 2014 2013 2014 2015 2014 2015 2011 1.120112012 0.9 0.9 2012 1.1 2014 2011 2012 2012 2013 2013 2014 2014 2015 2011 2011 2012 2013 2012 014 20122013 20132014 2014 2015 2015 2011 2011 1.4 0.9 2015 0.92015 1.0 1.0 1.0 0.9 2015 1.0 2015 2015 2011 1.4 2011 2012 2012 2013 2014 2015 1.0 1.0 1.0 1.1 1.4 1.0 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 1.1 1.1 1.4 1.4 1.4 0.9 0.9 2011 0.9 2012 2013 2014 2015 2011 0.9 0.9 20120.9 2013 2014 2015 20110.9 2012 2013 0.9 0.9 0.9 0.9 1.30 1.4 2015 1.0 1.1 1.4 1.302015 2015 2015 2011 2011 2012 2012 −2012 2013 0.2% 20141.2% 2015 2015 1.4 1.0 2014 2011 2012 2012 2013 2013 2014 2014 2015 1.1 2011 2012 2013 2014 20151.42011 2011 2012 2014 2011 2012 2013 2014 2011 2013 2014 2015 2011 1.4 1.42011-1.4 1.342015 SKID STEERS FORKLIFTS HI-REACH 014 2011 1.4 2012 2013 2014 2015 2013 2014 2012 −2012 1.4 0.9 2015 0.9 1.0 0.9 0.9 0.9 1.0 1.0 0.9 0.9 0.9 1.3 1.3 1.3 1.3 2012 2011 1.42011 2015 1.4201120151.3 2011 2012 2013 1.30 2011 2012 20151.4 2011 2012 2013 2012 2013 2014 2013 2014 20151.30 2015 2014 2012 2013 2014 2013 2014 2015 2014 20151.30 2014 20151.3 2011 2012 1.4 1.42011 2012 2013 1.4 1.4 1.4 1.34 1.4 0.9 1.0 1.4 0.9 1.3 1.3 1.0 1.28 1.28 1.4 1.4 1.3 1.3 1.28 1.28 1.3 1.3 1.3 1.3 1.30 1.30 0.92012 0.9 0.9 1.30 2015 1.4 2011 1.3 2012 2013 2014 20151.4 2011 2013 2014 2015 1.4 1.4 1.2 1.4 1.4 1.2 1.2 1.2 FORKLIFTS 1.34 1.4 1.4 1.2 1.22.0% 1.4 1.42011 WHEEL 1.4 1.4 1.3 2014 1.3 2015 2011 2012 2013 2014 2015 2012 2013 2014 2015 2011 2012 1.28 1.28 1.4 1.4 AWP ARTICULATING BOOMS − 0.5% 1.2% WAREHOUSE/INDUSTRIAL − 0.8% 1.3 1.3 1.3 1.28 1.28 1.34 1.3 SKID STEERS − 0.2% 1.2% 1.2% 1.3 EXCAVATORS − 0.3% 2.2% LOADERS − -0.1% 2.7% 1.3 1.3 1.30 0.9 0.3% 2.2% WHEEL LOADERS − -0.1% 2.7% 1.30 1.2 1.3 1.4 1.4 1.2 1.2 1.30 0.9 1.3 EXCAVATORS − 1.3 1.2 1.2 1.2 1.3420151.4 1.2 1.2 1.3 20151.30 2011 1.2 2012 2013 2014 2011 2013 2014 20151.30 1.28 1.42012 1.4 1.28 1.4 1.4 1.3 1.3 1.28 1.4 1.3 1.1 1.28 1.4 1.4 1.4 1.4 1.3 1.3 1.1 1.1 1.3 1.1 1.34 1.21 1.4 1.4 1.3 1.3 1.1 1.1 1.30 1.3 1.3 1.3 1.2 1.2 1.3 1.3 1.2 1.2 1.2 1.2 1.17 1.17 1.2 1.30 1.30 1.28 1.2 1.30 1.2 1.4 1.2 1.4 1.4 1.30 1.4 1.3 1.3 1.28 1.28 1.4 1.4 1.1 1.1 1.2 1.2 1.4 1.3 1.1 1.1 1.28 1.4 1.1 1.1 1.34 1.211.1 1.34 1.1 1.1 1.3 1.0 1.3 1.3 1.3 1.2 1.0 1.0 1.3 1.0 1.3 1.2 1.2 1.3 1.3 1.0 1.0 1.3 1.2 1.2 1.2 1.3 1.3 1.30 1.17 1.17 1.2 1.2 1.30 1.30 1.2 1.4 1.2 1.4 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.34 1.21 1.1 1.1 1.1 1.1 1.0 1.0 1.4 1.3 1.3 1.0 1.1 1.0 1.28 1.28 1.4 1.4 1.3 1.3 1.3 1.0 1.3 1.3 1.0 1.0 1.1 1.1 1.2 1.2 1.3 1.28 1.2 1.2 1.0 1.0 1.17 1.30 1.30 1.28 1.17 0.9 1.2 1.2 1.2 0.9 0.9 1.1 1.2 0.9 1.2 1.1 1.1 1.1 1.2 1.2 0.9 0.9 1.2 1.1 1.1 1.1 1.21 1.2 1.2 1.1 1.1 1.4 1.3 1.1 1.4 1.0 2015 1.020151.0 1.3 1.1 1.1 1.02011 1.0 1.0 1.0 2015 1.0 2014 2015 2011 2012 2012 2013 2013 2014 2014 2015 2011 2012 2013 2014 2011 2012 2012 1.1 1.1 1.0 1.34 014 2011 2012 2013 2014 2015 2011 1.17 1.17 1.0 1.3 0.9 0.9 1.2 1.2 0.9 1.0 1.0 1.3 1.3 0.9 1.2 1.2 1.2 0.9 0.9 1.2 1.2 0.9 1.1 1.1 1.2 0.9 0.9 1.1 1.30 1.30 1.02011 1.0 1.1 1.0 1.0 1.1 1.1 1.0 1.0 1.1 1.0 1.1 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2012 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2012 1.1 1.0 1.0 1.1 1.1 1.211.12011 0.9 014 2015 2011 0.9 2012 2013 2014 2015 2012 2013 2014 2015 0.9 2011 0.9 1.0 1.1 1.1 1.0 1.3 1.2 1.0 1.3 1.2 0.9 1.0 1.0 0.9 0.9 0.9 0.9 1.17 1.17 0.9 0.9 0.9 1.2 1.1 1.0 1.0 1.1 1.2 1.2 1.1 2014 2015 2015 2011 20122013 2012 20132014 2013 2014 2015 2014 2015 2015 1.1 1.1 1.0 1.12011 1.12011 2011 2015 2011 2012 2011 20121.0 2013 2012 2014 2013 2015 2014 2012 2013 014 20112012 1.1 2011 2012 2013 2014 2015 2011 2012 1.0 1.0 1.0 0.9 2014 0.9 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.9 1.0 1.0 0.9 0.9 0.9 0.9 1.2 1.1 0.9 1.2 1.1 2014 2015 2011 20122013 2012 2013 2013 2014 2014 2015 2015 2011 2015 2011 0.9 2011 2012 2013 2012 2011 2014 2015 2011 2012 0.9 2013 2012 2014 2013 2015 2014 2011 2012 014 20112012 1.02011 1.02011 2011 2015 2015 2012 2012 2013 2013 2014 2014 2015 2015 1.0 1.0 1.1 1.0 2014 2012 2013 2013 2014 2014 2015 2015 2011 2012 2013 2014 2015 2011 2012 1.02011 2012 1.0 0.9 2015 0.9 1.1 1.1 1.0 0.9 0.9 0.9 0.9 0.9 20120.9 0.9 0.9 0.9 0.9 0.9 0.9 20112015 2013 2014 2015 2011 2013 2012 2014 2013 2015 2014 1.0 1.02011 2011 1.1 2015 2015 2011 2012 2012 2012 2013 2013 2014 2014 2015 2015 1.42011 2014 2011 2012 2012 2013 2013 2014 2014 2015 2015 1.1 2011 2015 2011 2012 2011 2012 2013 2012 1.4 2015 2014 2011 2012 2013 2014 2011 2012 2013 2014 2015 2011 2012 1.4 2015 014 2012 2013 2014 2015 0.92011 1.0 0.9 1.0 0.9 0.9 0.9 1.0 0.9 0.9 0.9 2015 1.420112015 2011 20122011 2012 2013 2011 2012 2011 2012 BOOMS 2013 2014 2015 2015 FORKLIFTS 2014 2012 2013 2014 2013 2014 2015 2014 20151.4 2015 2013 2014 2015 2011 2012 1.42011 2011 2013 2012 2014 2012 2013 AWP ARTICULATING − 0.5% 1.2% WAREHOUSE/INDUS 1.0 0.9 1.0 1.4 1.4 1.4 0.9 1.3 0.92012 0.9 2015 1.3 2011 0.9 2012 2013 2014 20151.3 2011 2013 2014 2015 1.4 2015 1.4 2015 1.4 1.4 1.4 1.4 1.4 1.21 2014 1.4 2015 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 1.3 1.3 1.26 filings 1.3 1.3 0.9 UCC on 12 earthmoving units. 0.9 1.3 1.3 1.17 1.4 1.2 1.2 1.2 1.4 1.31 1.31 2015 2011 1.4- WAREHOUSE/INDUSTRIAL 2012 - SCISSOR 2013 LIFTS − 2014 20151.4 2011 2013 2014-2.1% 2015-3.1% 1.42012 GENERATORS 1.4 1.4 % 1.2%1.4 FORKLIFTS − 0.8% 2.0% 1.21 AWP 0.4% 1.9% − 1.3 1.3 1.3 1.26 1.3 1.3 1.3 1.3 1.3 1.17 1.2 1.4 1.4 1.4 1.4 1.31 1.31 1.2 1.2 1.2 1.21 Aug - Sep - 1.17 Oct - 1.2 Nov - 1.4 Dec - Jan Apr - May -1.21 1.21 1.2 Grand 1.4 1.4 1.3 1.3 1.1 1.1 1.26 1.4 1.3 1.1 1.3 1.3 1.3 Feb - 15 Mar 1.3 1.17 Description Jun - 15 Jul - 15 1.31 1.3 1.2 Equipment 1.2 1.2 1.4 1.31 1.2 1.4 1.2 1.2 1.2 1.2 1.21 1.21 1.21 1.1 14 14 14 14 15 15 15 15 Total 1.26 14 1.1 1.1 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.1 1.1 1.1 1.3 1.17 1.0 w w w 1.0 1.17 1.3 1.2 1.2 1.0 1.3 1.2 1.31 1.31 e tainc as l. yc toim cs.com 1.2 1.2 1.2 w w1.3 w . r o u s1.2 e. raonuasl 1.2 y 1.21 1.21 1.1 1.1 1.4 1.1 1.3 1.1 1.4 1.3 1.1 1.1 1.1 1.1 1.21 175 1.0148 Dump Trucks 118 111 123 107 145 98 123 142 169 150 1,609 1.17 1.26 1.0 Articulated 1.0 1.0 1.0 1.0 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.17 1.21 1.21 0.9 0.9 0.9 1.2 1.2 1.1 1.1 1.2 1.31 1.31 1.1 1.1 1.1 1.1 1.1 1.1 1.17 1.02011 1.0 1.0 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 1.0 1.0 1.0 1.0 1.3 1.2 1.0 460 1.3 1.2 Dozers 366 369 466 346 472 251 348 512 379 431 453 4,853 0.9 Crawler 0.9 0.9 0.9 0.9 0.9 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.21 1.21 1.020112015 1.02011 1.02011 1.1 1.0 1.0 1.0 2012 2013 2014 2015 2011 2012 2013 2014 2015 2012 2013 1.0 1.1 1.0 2014 1.1 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 1.17 0.9 0.9 0.9 14 0.9 0.9 0.9 0.9 1.2 1.1 1.1 Crawler 11 10 2014 2015 13 0.92011 4 1.2 19 17 15 2012 25 2014 203 1.02011 2012 2013 1.0 1.0 2012 1.02011Loaders 2015 0.92011 2012 2013 2013202014 40 2014 2015 2015 15 0.92011 2012 2013 1.1 1.1 1.02011 2012 1.1 2014 2012 2013 2014 2013 2014 2015 2011 2013 2011 2012 1.0 2015 1.0 2015 0.9 0.9 0.9 2015 1.0 0.9 0.9 0.9 1.02011 2012 2013 2015 2011 2012 2013 1.1 2015 1.42011 20151.42011 2012 2013 2013 2014 2015 2015 1.0 2014 2015 2011 2012 Hydraulic 2012 2013 2014 2013 2014 2014 2015 1.12011 2013 2015 10,550 2012 Excavators - Crawler, 820 745 933 707 9882012 1,052 614 2012 8712014 1,062 840 2014 1,035 1.4883 1.0 1.0 1.0 0.9 0.9 0.92011 0.92011 0.9 0.9 2015 2015 0.9 2012 2013 2014 2015 2014 2015 2011 2012 2012 2013 2013 2014 2014 20150.9 2015 2011 2011 2012 2013 2014 2011 2012 0.9 1.02011 2012 1.42011 1.42011 1.42011 0.9 2013 201440 2015 2012 1.4 2013 2014 22 2015 2012 2013 1.0 1.4 1.4 1.26 Excavators Wheeled, Hydraulic 34 20 25 49 31 13 25 31 27 26 343 0.92012 0.9 1.3 2015 1.3 2011 0.9 2012 2013 2014 20151.3 2011 2013 2014 2015 1.30 1.4 1.4 1.4 2015 1.31 1.42011 1.4 2014 1.4 2015 2011 2012 2013 2014 2012 2013 2014 2015 2011 20121.4 1.4 AWP SCISSOR LIFTS − 0.4% 1.9% GENERATORS − 1.26 0.9 0.9 1.3 1.3 1.3 1.3 1.3 1.3 1.30 Excavators 976 2014 974 1.31 1,072 1,215 1,421 994 1,326 1,527 1,391 13,830 1.42011 1.4 1.2 Mini 1.2 769 1.4 1.2 20151.26 2012 2013 20151.4 2011 2014 1,3711.26 2015 1.42012 794 2013 1.4 1.4 1.26 1.4 1.28 1.28 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.30 1.31 1.31 1.4 1.4 1.2 1.2 78 1.4 1.2117 1.4 1.4 1.2 1.2 1.9% 1.261.2 GENERATORS − -2.1% -3.1% 1.26 1.26 109 Graders 114 0.3% 71 100 128 101 97 LOADERS 98 120 105 1,238 1.28 1.28 1.3 1.3 1.4 1.4 1.4 1.3 1.3 1.3 1.1 Motor 1.1 1.1 1.3 1.3 1.3 EXCAVATORS − 2.2% WHEEL − -0.1% 2.7% 1.30 1.4 1.4 1.31 1.2 1.2 1.31 1.2 1.2 1.2 1.2 1.2 1.2 1.26 1.26 1.28 1.4 1.28 1.3 1.3 1.3 1.1 1.4 1.4 1.3 1.3 1.1 1.1 1.1 1.1 1.1 Scrapers Conventional 14 5 10 4 12 9 4 6 6 12 7 15 104 1.26 1.0 1.0 1.0 1.31 1.2 1.2 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.26 1.26 1.1 1.30 1.4 1.4 1.28 1.28 1.3 1.3 1.1 1.1 1.31 1.1 1.1 1.1 1.1 1.1 1.0 1.31 1.0 1.0 1.0 Skid-Steer 1.0 1.0 1.3 1.2 1.2 1.2 1.3 1.3 1.2 1.2 Loaders 736 997 1,180 1.2 1,186 1.11,872 1,414 878 1,005 1,138 1,162 1,100 1.2 965 13,633 0.9 0.9 0.9 1.1 1.1 1.2 1.1 1.1 1.1 1.1 1.1 1.26 1.26 1.0 1.0 1.0 1.28 2012 1.28 1.3 1.02011 1.3 1.0 1.2 1.2 1.0 1.0 1.0 2013 2014 2015 2011 2012 0.9 2013 2014 2015 2011 2012 2013 1.31 0.9 0.9 1.2 0.9 Tractor 1.1 Loader 1.1 471 1.1 1.2 1.2 1.1 Backhoes 1.1 334 372 450 0.9 355 411 402 2012 3582014 352 345 2014429 0.9 360 1.0 1.0 1.0 1.0 1.020112015 1.02011 1.0 1.0 2014 1.1 2011 2012 2013 2014 2015 2011 2013 2013 2015 2015 4,639 2011 2012 1.1 1.1 2012 2013 2014 2015 2012 2011 2012 2013 0.9 0.9 0.9 1.2 1.2 1.1 1.1 0.9 0.9 0.9 0.9 0.9 1.02011 1.02011 1.0 2015 2012 2013 2015 2011 2012 2013 2013 2014 2015 2015 1.02011 1.0 2014 2012 2013 2014 2013 2014 2015 2011 2013 2015 1,667 2011 2012 1.1 1.1 20112015 2012 2015 94 201485 129 158 223 103 2012 1302014 170 140 2014 147 1.0 115 2011 2012 2013 0.9 Loaders 0.9 1732012 1.1 0.9 0.9 < 80 HP 1.0 1.0 0.9 0.9 Wheel 0.9 0.9 1.02011 20122011 2012 2013 1.02011 2012 2011 1.1 1.1 2015 2012 2013 2012 2013 2014 2013 2014 2015 2014 2015 2014 2012 2013 2014 2013 2014 2015 2014 2015 2011 2015 2015 2011 2012 20112015 2011 2012 2013 1.0 0.9 0.9 0.9 1.0 1.0 0.9 0.9 1.4 1.4 Loaders > 80 HP 2012 2013 559 635 2014 830 1,004 701 518 2012 631 716 592 2014 714 0.9614 8,264 2011 1.4 750 2015 0.9 Wheel 2011 20150.9 2011 2012 2013 2014 2015 2014 2015 2011 2012 2013 2014 2015 2011 2013 2015 2012 1.0 1.0 0.9 0.9 1.30 1.42011 2011 2012 2015 2011 2011 2012 0.92012 2013 2013 2014 2014 2015 2015 2012 2013 0.9 0.9 2015 1.4 2011 2012 2013 2013 2014 2014 20151.4 Grand Total 4,182 4,408 5,326 4,489 6,536 5,950 3,812 4,628 5,633 5,152 5,716 5,101 60,933 1.3 1.3 1.3 1.4 1.4 1.30 2014 1.4 2015 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 1.4 2015 1.4 2015 0.9 0.9 1.2820151.3 1.3 Supplied 1.42011 by EDA, Charlotte, N.C. 20151.30 2012 2013 2014 2012 2013 2014 20151.30 1.3 1.30 1.42011 1.4 1.4 1.2 1.2 1.4 1.2 1.3 1.3 1.28 1.3 1.30 1.3 0.3% 2.2% WHEEL LOADERS − 1.4 1.4 EXCAVATORS − 1.30 1.30 1.3 1.2 1.2 1.2 1.28 1.3 1.3 1.28 2015 1.4 1.30 1.3 1.3 1.1 1.1 1.4 1.30 1.4 1.3 1.1 1.4 1.2 20 | www.cedmag.com | Construction Equipment Distribution | October 1.4 1.2 1.2 1.2 1.2 1.28 1.3 1.30 1.30 1.1 1.3 2% WHEEL LOADERS − -0.1% 2.7% 1.28 1.30 1.1 1.1 1.2 1.2 1.0 1.0 1.0 1.3 1.3 1.2 1.2 1.3 1.2 1.4 1.28 1.3 1.1 1.4 1.3 1.1 1.1 1.1 1.2 1.2 1.0 1.0 1.28 1.30 1.30 1.1 1.0 1.28 1.1 1.1 0.9 0.9 0.9 1.0 1.2 1.2 1.1 1.1 1.0 1.2 1.3 1.1 1.2 1.2 1.0 1.02011 1.02011 1.3 2011 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 w w w . r o u s e a n a l y t i c s . c o m 1.1 1.1 aed data1 1015.indd 1 10/12/15 2:13 PM 0.9 0.9 0.9 1.0 1.28 1.0 1.02011 1.2 1.02011 1.02011 1.2 0.9 1.1 1.1 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 0.9 1.1 1.1 1.1 0.9 1.02011 1.02011 2015 0.9 2012 2013 2014 20150.9 2012 2013 2014 2015 2011 0.9 2012 2013 2014 2015 2011 0.9 2012 2013 2014 2015 2012 2013 1.0 1.0 0.9 0.92011
>> DATA TRENDS
Dodge Momentum Index Jumps in September ROUSE ANALYTICS
Rouse Rate Index™
The Rouse Rate Index™ tracks rental rates relative to January 2011 for the top equipment categories of major rental companies. The index measures average rental rates weighted by 2011 activity as a % of January 2011 rates. ROUSE ANALYTICS
RENTAL RATE INDEX
Rouse Rate Index™
µ¶ The Rouse Rate Index™ tracks rental rates relative to January 2011 for the top equipme
Physical Utilization of Four Rental Units
companies. The index measures average rental rates weighted by 2011 activity as a % elative to January 2011 for the top equipment categories of major rental ental rates weighted by 2011 activity as a % of January 2011 rates.
µ¶
The Dirty Dozen -
µ¶
8 8
8
>> DATA TRENDS
Source: Equipment Watch, www.equipmentwatch.com
EquipmentWatch INDEX TM | May 2015 in Review | Monthly Heavy Equipment Intelligence
www
EquipmentWatch INDEX TM | September 2015 in Review | Monthly Heavy Equ EquipmentWatch INDEX TM | September 2015 in Review | Monthly Heavy Equipment Intelligence
October 2015 | Construction Equipment Distribution | www.cedmag.com | 21
EquipmentWatch INDEX TM | September 2015 in Review | Monthly Heavy Equipment Intelligence Data_Trends_OCT (1).indd 2
www.EquipmentWatch.com 10/12/15 4:32 PM
www.E
May said UEDA also will be embarking on efforts to better educate those preparing for careers in the diesel-tech field. “The biggest thing is just getting more people interested in the field,” May said. “Whether we train them ourselves or they go through school, we just need more guys interested in the field.” That additional interest is another reason
MORE EQUIPMENT. BRANDS. MARKETS.
UEDA is helping to get the college’s program accredited. “We want to locally get our AED involved with the career centers, even at the high school
WAIN-ROY® Tractor Loader Backhoe and Excavator
and junior high levels, just to increase the
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awareness and get these guys interested in this
Large Excavator, Mining/Mass Excavation and Wheel Loader
field at an earlier age,” May said. “The pay is good, and that awareness is not at that early age.” To increase awareness, May said the AED, along with the community college, is planning
GANNON® Compact Excavator and Tractor Loader Backhoe
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to have a career-day event in spring 2016. “We are going to invite the counselors from junior highs and high schools to come and at least get them aware of what we do and what we are after,” May said. May said it likely will “take a couple of years” before the college’s two-year degree program
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receives AED accreditation. “That is a big commitment on our part,” May said. “We are going to be working directly with them every step of the way to work them through the process of getting accredited.” n October 2015 | Construction Equipment Distribution | www.cedmag.com | 37
aed diesel 1015.indd 2
10/12/15 2:23 PM
>> WASHINGTON INSIDER
CHRISTIAN KLEIN
Updated AED Equipment Distributor Laws Publication Now Available AED exclusive provides insights into controversial laws affecting equipment dealers.
AED’s exclusive publication sheds light on legal areas affecting distributors.
E
quipment distributors and manufacturers operate in a complex legal environment. Merely being successful in the business of selling, renting and servicing equipment is no longer enough to guarantee a company’s survival. In order to protect their business, responsible owners and employees must keep a constant eye on product liability, employment, workplace safety and contract and environmental issues. AED’s Washington office prepares the association’s State Equipment Distributor Laws publication every two years to shed light on at least one legal area affecting distributors: state laws governing the relationship between
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equipment distributors and manufacturers. State equipment dealer protection laws have always been controversial. Supporters argue the bargaining relationship is unbalanced, that dealer contracts are controlled by the manufacturers and that protective statutes are needed to ensure a minimum code of fairness for both parties. These proponents urge that without legislative relief, substantial legal and financial risks are inequitably shifted to dealers. Opponents of the statutes argue with equal passion that legislative action in this area represents inappropriate and unnecessary government meddling. They contend the vast majority of dealership agreements are fair for both parties and that restricting a manufacturer’s ability to freely choose the best dealers for their products can hamper efforts to improve the quality of their distributor networks and customer service. Finally, they argue that entering into a dealer contract is a purely voluntary act on the part of both parties; if a distributor does not like the contract’s terms, he or she can always refuse to sign it and find another manufacturer’s product line to carry. Both sides of the argument have merit, but regardless of your position on dealer statutes, one simple fact is undeniable: The number of state dealer laws throughout the country is steadily increasing. The first edition of the publication, published in 1990, contained 43 statutes from 38 states. This edition contains more than 70 statutes from the 48 states that currently have some law on the books affecting equipment dealer-manufacturer relations. As of summer 2015, only Hawaii, the District of Columbia and New Jersey had not enacted dealer laws specific to the equipment industry.
24 | www.cedmag.com | Construction Equipment Distribution | October 2015
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There are many ways for equipment manufacturers to market their products, including company stores or franchises. However, historically, no channel to market has proven to be as effective and consumer-sensitive as independently owned and operated distributorships. Legislatures should take great care before intervening in this successful free market process. Because of the deep divisions that exist over dealer statutes, AED’s long-standing policy is to maintain neutrality on the issue of their enactment. Thus, the compilation AED produces every two years does not constitute an endorsement of any particular statute or, indeed, of a legislative solution to the challenges inherent in the complex relationships between manufacturers and dealers. Our book is designed solely to inform AED’s membership about developments in dealer protection legislation around the country and give all in the equipment industry a better sense of their rights and responsibilities under the law. The new publication is current as of August; statutes adopted or amended since the last edition was released in 2013 are as follows: - Louisiana amended Title 51, Chapter 2, Part 1-a by changing and adding sections 481, 481.1, 483.1, and 490.1. These provisions expand the scope of the statute to include forestry equipment and provide further details on termination and cancellation of agreements, remedies, indemnification and liability. The amendments and additions became effective on Aug. 1, 2015. To see the full text of the enacted legislation visit 1.usa. gov/1OaatUn. - Maine amended Title 10, Part 3, Chapter 208-B, Section 1293-A to prevent a manufacturer from recovering costs where it reimburses a dealer to avoid violating provisions of the statute related to coercion and interference in the dealership. - Oregon amended Title 50, Chapter
646A, Sections 300, 312 and 322 to add clarifying language to definitions; amend language relating to the termination, cancellation or failure to renew a retailer agreement; and provide grammatical clarity to the remedies clause. AED’s biennial publication includes each state’s distributor laws, the legislative history for each law, Web links to online resources and summaries of court decisions that interpret the statutes. The book also includes a chart summarizing the major provisions of each state’s dealer statutes, including whether a statute requires good cause for termination, requires manufacturers to repurchase equipment from terminated dealers or requires manufacturers to give dealers advance notice of termination. The analysis also indicates whether states allow manufacturers to terminate distributors immediately, without advance notice, or requires manufacturers to give distributors time to correct the problem that led to termination. Finally, the chart points out whether a statute establishes procedures to govern requests by distributors to transfer their dealerships to family, employees or third parties, or has special provisions regarding return of surplus parts or dealer warranty work. Dealer member companies who choose to utilize the publication as a reference should note that while AED has made every effort to ensure the accuracy of the information contained in the publication, the chart and the reprinted statutes are provided merely to give distributors and manufacturers a basic sense of their general legal rights and responsibilities. It is distributed with the understanding that AED is not engaged in rendering legal, accounting or other professional services. If you require legal advice, consult a competent professional. n
CHRISTIAN KLEIN (caklein@aednet.org) is AED’s vice president of government affairs. He can be reached at 703-739-9513.
Glynn General Extended Protection Plans Your Competitive Advantage in a Competitive Market
Glynn General Benefits 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 VicePresident PresidentSales Operations Slade Rowland 912-638-4320 Slade Rowland 912-638-4320 Southeast/East Territory Manager Vice President Sales Greg Schultz 678-697-2715 Rick Stacy 404-791-9382 Midwest Territory Manager Eastern Territory Manager Ed Semara 414-975-5353 Greg Schultz 678-697-2715 Central Territory Manager Midwest Territory Manager Michael Raley 817-301-7984 Ryan Carter 847-226-6265 West Territory Managers Western Territory Managers Jeremy Cockroft 970-946-8132 Jeremy Cockroft 970-946-8132 Brian Freitag 970-946-8133
Brian Freitag 970-946-8133
October 2015 | Construction Equipment Distribution | www.cedmag.com | 25
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>> REGIONAL REPORT
MIKE DEXTER
AED Midwest Equipment Dealers Meet With Members of Congress
Outreach to legislators and education professionals helps to create a favorable business climate for AED members.
One of our goals is to get 40 members of Congress to visit AED-member facilities and develop an understanding regarding the needs of these companies and their employees.
M
y work as a regional manager for Associated Equipment Distributors might best be described as one of coordination, communication and education. I’ve recently had the pleasure of bringing together local AED member dealers with legislative leaders and education providers to discuss topics important within the heavy construction equipment industry. Such outreach is important for encouraging a favorable business climate that benefits AED’s members. One of our goals is to get 40 members of Congress to visit AED-member facilities and develop an understanding regarding the needs of these companies and their employees. Such meetings can promote the importance of the country’s basic infrastructure and the need to keep it strong. Keeping the infrastructure strong doesn’t just support the work of AED members. It is simply right for everyone. In recent weeks, there have been four congressional visits at member dealers in the Midwest region. For example, Congressmen Mike Bost of Illinois and Steve Chabot of Ohio, chairman of the U.S. House of Representatives’ Small Business Committee, visited Roland Machinery Co. in Cartersville, Illinois. This and other round-table type discussions in similar settings can cover topics important to AED members including tax write-offs, highway bills, bonus depreciations and Section 179. Another important endeavor is outreach to schools and educating the future employees essential to a healthy construction equipment industry. Recently, one of my stops was at a union hall involved in such training. By working with educators like those in this Illinois-based program, we increase the presence of AED accredited training, fostering uniformity of training and giving our members consistency. By encouraging education providers to embrace
AED accreditation, our association can help ensure that well-trained, quality employees are readily available for our members for years to come. Bringing in our member dealers for these discussions will continue to be an important part of what we are doing. Fostering communication between AED and among our members is part of what I have been doing in recent weeks and what I will continue to do throughout the Midwest region. Recently, I’ve coordinated local meetings among members including one in Louisville, Kentucky, and another in Des Moines, Iowa. Bringing together local members to discuss topics important within the heavy construction equipment industry helps AED better understand the needs of members. It also allows us to, in turn, convey information to our members. In the coming months, I will be meeting more members, promoting educational advancement and working to inform congressional leaders by bringing them in to meet member dealers throughout Michigan, Ohio, Kentucky, Kansas, Missouri, Illinois, North Dakota, South Dakota, Iowa, Minnesota, Wisconsin and Indiana. I hope to meet with some our member dealers in eastern Canada and even set up meetings with governmental representatives there as well. Meanwhile, I encourage members from the Midwest region to make plans to attend the AED Summit 2016 in Washington, D.C. The summit will take place from Tuesday, Jan. 19, to Friday, Jan. 22, at the Gaylord National Resort and Convention Center. It will feature exciting events, exhibits, speakers and more. Registration for AED Summit 2016 is now open. Visit www.aednet.org/summit/ to learn more. I look forward to working with my region’s members and encourage you to contact me if I can assist in any fashion or if you have questions. n
MIKE DEXTER is the Midwest regional manager and director of member engagement for AED. Prior to his association work, Dexter had a long career in manufacturing, including a stint as plant manager for Dayton/Superior Corp., where he was responsible for a staff of 55 and an $8 million budget. He can be reached at 630-468-5124. 28 | www.cedmag.com | Construction Equipment Distribution | October 2015
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2016 AED SUMMIT & CONDEX Gaylord National Resort & Convention Center AED Summit & CONDEX is your starting line for a successful 2016, where you can attend dealer-specific education sessions, network with your peers from across North America, discover new product lines and business solutions for your dealership.
Register Online: bit.ly/summit16
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Register Online Today: bit.ly/summit16 The Top 5 Reasons to Attend Summit & CONDEX Register Now - Take Advantage of Our Early Bird Special!
• Have the opportunity to view new products & services for your dealership • Experience 4 world-class speakers including former President George W. Bush and Canadian Ambassador Gary Doer • Network with fellow dealers, current manufacturers and service providers all in one location • Choose from more than 30 educational courses covering topics such as product support, rental, customer service, marketing and many more • Meet with your manufacturers, share your goals and strengthen relationships with your current providers in hospitality suites
Education
AED Summit features more than 30 dealer-specific educational courses covering every department of your dealership. Engage in discussions, gain immediate feedback and share best practices. Take what you learned back to the dealership!
CONDEX
Meetings
Introduce your company’s latest and greatest products and services with an exhibit booth. Dedicated show hours maximize your investment. In fact, special learning events are scheduled on the CONDEX show floor to enhance traffic throughout both exhibit days.
Host an event for your entire dealer network. Present awards, share your goals and build trust. We can help you plan a unique gathering that meets all your expectations.
October 2015 | Construction Equipment Distribution | www.cedmag.com | 31
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Keynote Presentations A CONVERSATION WITH GEORGE W. BUSH THURSDAY, JANUARY 21 @ 6 PM George W. Bush served in the Oval Office for eight of the most consequential years in recent American history. He faced challenges from a terrorist attack to a global financial crisis, resulting in difficult decisions that will shape the nation’s course and world affairs for decades to come. Join us for this unique opportunity to listen to the conversation about his experiences as the 43rd President of the United States of America. Thank you to AED’s A Conversation with George W. Bush sponsors: Platinum Sponsor: Bronze Sponsors: • Amtrust North America • Vacuworx Global
• e-Emphasys • Liebherr Construction Equipment, Co.
• Amarillo National Bank • Perkins Engines
BEHIND AMERICAN SNIPER WITH KEVIN LACZ WEDNESDAY, JANUARY 20 @ 9 AM Kevin Lacz is a former Navy SEAL sniper, breacher and combat medic who served in Iraq with real-life American Sniper, Chris Kyle. With a rare combination of passion and humor, Lacz will share his journey from borderline college dropout to commended U.S. Navy SEAL. He will also discuss behind-the-scenes of American Sniper, peeling back the Hollywood veneer to offer a glimpse of true bravery, service and sacrifice. Thank you to AED’s Behind American Sniper with Kevin Lacz sponsor:
LESSONS IN LEADERSHIP WITH MARK KING THURSDAY, JANUARY 21 @ 9 AM Mark King is the president of Adidas Group North America and chairman of the TaylorMade Golf Company. Previously in sales, King quickly realized his experience as a sales leader didn’t fully prepare him for the daily battles of leading a global company in a tough market. Mark will reveal how he used the skills he mastered as a sales professional and how he acquired the other skills needed to successfully refresh and grow TaylorMade into a market leader. He will also share his experiences from starring in the television show Undercover Boss.
GARY DOER, AMBASSADOR OF CANADA TO THE UNITED STATES OF AMERICA In October 2009, Gary Doer assumed his responsibilities as Canada’s 23rd representative to the United States of America. Prior to taking up his current position in Washington, Ambassador Doer served as Premier of Manitoba for ten years. During his tenure as Ambassador, he has worked extensively with U.S. Governors to enhance Canada-U.S. cooperation on trade, agriculture, water protection, climate change and renewable energy.
32 | www.cedmag.com | Construction Equipment Distribution | October 2015
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Professional Education Sessions
Choose from more than 30 educational courses! n People Management
n Keys To Success For The Compact Dealer
n Maximizing Your Customers’ Parts & Service Experience
n Sales & The Customer Experience
n Rev Up Your Rental Revenue n Executive Leadership Development
n Customer Engagement in the 21st Century n It’s An Election Year: How the 2016 Elections Affect You
** Please note that topics are subject to change
Gaylord National Resort & Convention Center 201 Waterfront St. National Harbor, Maryland 20745
Reserve your room by phone: 877-491-0468 *Reservations must be canceled 72 hours in advance of arrival to avoid cancellation fee assessed by hotel
Room Information Room Rate: $275.00 + tax (* $18 daily resort fee) Room block cut-off date: December 29
Beware of Unofficial Housing Offers! Please be aware some third party travel companies may attempt to solicit you regarding housing for the 2016 AED Summit & CONDEX. Despite the fact that these companies represent themselves as the “official” housing source, they are not authorized by AED and may provide false information regarding the availability of rooms at the conference hotel.
Two Ways to Register Summit & CONDEX is AED’s annual convention designed specifically for equipment distributors with opportunities to see new products, meet with current and prosepctive business partners, attend educational seminars network with peers. Register Online: Register you and your team online by visiting bit.ly/summit16(link is case-sensitive).
Category
Dealer: Single Attendee Dealer: 2 Attendees Dealer: 3 Attendees Dealer: 4 Attendees Dealer: 5 Attendees Dealer: 6 Attendees Dealer: 7+ Attendees Spouse/Family Member/Guest Manufacturer/Service/Financial - Non CONDEX Participant Role CONDEX Exhibitor/Suite Participant
Member $900.00 $675.00 $440.00 $440.00 $600.00 $600.00 $550.00 $300.00
Non-Member $1,800.00 $1,350.00 $880.00 $880.00 $680.00 $680.00 $650.00 $550.00
$2,000.00
$2,000.00
$250.00
$250.00
Register By Phone: For more information and assistance contact your regional manager today, 630-574-0650
Register Online Today : bit.ly/summit16 October 2015 | Construction Equipment Distribution | www.cedmag.com | 33
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>> STRATEGIC PLANNING SURVEY
MIKE CHRIST
AED’s Strategic Planning Survey: Turning Information Into Action The goal is to create actionable items that will best serve members of AED.
The plan will identify the best directions to take AED on behalf of the heavy construction industry and improving our ability to serve members and advance the industry.
W
ork continues to progress with Associated Equipment Distributors’ (AED) Strategic Planning Survey. Soon, the project will give AED a threeyear strategic plan to serve as a functional road map, noting actionable items the association can undertake to improve its work and its service to members. Since the project began in March, Executive Service Corps of Chicago (ESC), a nationally recognized consulting resource for nonprofits, has been gathering information via interviews with AED’s leadership, board members and staff, as well as the association’s members or stakeholders. Current planning activities have moved to assimilating the information gathered from those interviews. AED executives recently have begun meeting to determine how to put this information to work for AED to create a more effective association for members going forward. The focus now is to create an overview of needs, then plan future action. Following a recent retreat, two work groups – each consisting of officers and AED senior staff members – have started to review all of the issues that came to light during the information-gathering stage. The groups are considering which steps to take next to keep AED relevant, helpful and proactive for its members well into the future. The groups are assessing which current AED practices are working and identifying what offerings can be improved in the future and finding ways to accomplish just that. Given the geographic diversity of participants, work will continue in upcoming weeks via conference calls, letting the groups prepare a
plan for action to present to AED’s board for approval. Then the finished project will outline the future plans and goals. We expect to see the rollout of actionable tasks starting in 2016. Overall, the Strategic Planning Survey seeks to continue to engage AED members, providing them with an understanding of AED goals and finding ways for them to be involved in the execution of the plan. The plan also will identify the best directions to take the association and its efforts on behalf of the heavy-construction industry well into the future, keeping it at least as relevant as it has been or – more likely – improving our ability to serve members and advance the industry. One likely result is a continuing expansion of the regional concept, allowing AED staff to interact with member dealers on a more personal level. AED regional representatives can use this regional focus to expand the national conversation, bringing important matters to the forefront of efforts for the benefit of all. ESC’s consultants applaud AED for being proactive and for planning for future growth. It’s a testament to AED’s commitment to the heavy construction equipment industry, as well as its member dealers, that the association recognized the importance of serving members and providing what they want and need. AED’s pursuit of the Strategic Planning Survey and efforts to roll out first-action items next year illustrate progressive thinking at its best. Watch for future updates on AED’s strategic planning survey. Also, make plans to attend the association’s national meeting, where more details will be revealed. n
MIKE CHRIST is the engagement manager at Executive Service Corps of Chicago. Visit ESC online at www.escchicago.org.
34 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> WORKFORCE SOLUTIONS
New Methods Employed to Generate More Trained Techs Dealer association is working with school to focus on having a modern workforce, achieve AED accreditation.
A
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s the Utah Equipment Dealer Association (UEDA) works with Salt Lake Community College to establish a pathway to achieving AED accreditation for the college’s current Diesel Systems Technology program, there will be a heavy-duty focus on readying a modern, trained workforce for the industry. “The biggest thing is the shortage of techs in our industry,” Ryan May, president of UEDA, said. “Even through the different cycles, the highs and lows, we’ve never had a time — at least in my history — that we’ve had too many techs. “There has always been a shortage,” May told CED Magazine. May said trying other methods to put more trained technicians in the field, such as formal education — rather than hiring untrained, unskilled technicians and providing them with on-the-job training, as has been the standard in the past — will go a long way toward plugging the shortage. With that goal in mind, UEDA and several other representatives from dealerships in the greater Salt Lake City area recently met with Salt Lake Community College officials who they will be working with hand-in-hand toward achieving the AED accreditation for the college’s Diesel Systems Technology program. “It is just not the tech school part of it. The reason we are teaming up with them is because they are building a new facility, and they are ramping up their end of it,” said May, who is also president of Century Equipment Co.
36 | www.cedmag.com | Construction Equipment Distribution | October 2015
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Co. May said UEDA also will be embarking on efforts to better educate those preparing for careers in the diesel-tech field. “The biggest thing is just getting more people interested in the field,” May said. “Whether we train them ourselves or they go through school, we just need more guys interested in the field.”
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That additional interest is another reason UEDA is helping to get the college’s program accredited. “We want to locally get our AED involved with the career centers, even at the high school and junior high levels, just to increase the awareness and get these guys interested in this
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receives AED accreditation. “That is a big commitment on our part,” May said. “We are going to be working directly with them every step of the way to work them through the process of getting accredited.” October 2015 | Construction Equipment Distribution | www.cedmag.com | 37
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>> PROBLEM SOLVED
TROY OTTMER
Examining Customer Service Processes on Regular Basis is Imperative to Success
Are you doing everything possible to hold onto your clients and to keep them happy?
The key for us in the service industry is to identify when we have a customer at risk.
I
t’s no secret that written words pertaining to customer service are not in short supply. There are many different approaches to customer service, and that is actually a very good thing because it is not - and should never be - a static topic or discipline. Due to our ever-changing economies and respective markets, customer service must be at the forefront for how we continue to maintain and ultimately grow our businesses. Customers are more aware of how businesses support their needs than ever before. In short, give the customer less-thanstellar service and they will remember that, and word will likely spread. Give superior customer service; you will have a loyal customer following. The simple fact is that customers today have tools at their disposal that were not here 20-plus years ago. Social media has changed how people in general interact, which translates into how customers interact with each other and with businesses they choose to do business with. In addition to social media, there are also search engines, such as Google, which I frequently use to look at reviews of vendors or stores that I may choose to do business with. I also use Facebook and other social media to review vendors and stores and check out customer reviews. It’s easy to see how customers who have one or multiple bad experiences with sub-par customer service can become a major issue via word of mouth, or become a permanent mark on various social media or Internet sites. So how do we manage this in a manner that allows us to correct our shortcomings with a customer? First we must be willing to identify when we have a customer that has received poor service. Yes, we may have done everything right and yet the customer’s perception is that you fell short. That is always a slippery slope when dealing with someone’s perception. The old saying, “Their perception is their reality,” is spot-on in describing someone’s right to
feel a certain way about any topic or subject matter. The key for us in the service industry is to identify when we have a customer at risk. This oftentimes is not brought to our attention until the customer has moved onto another vendor, and sometimes you will not notice this until you are reviewing descending sales trends. Either way, you have to identify the problem. Once you have identified the problem, how do you improve - or rather reinvent - your customer service program or process? First, we have to understand how we interface with the customers. What is the process by which we start the service request? How does the customer call in a service request? Is this done via the telephone, text, email or in person? When the customer makes contact and schedules a service request, are you: s Identifying the customer by name? s Asking for a call-back number? s Looking up the customer account information? s Asking the customer to describe the problem or issue they’re having? s Asking for the serial or VIN numbers? s Getting the physical address where the piece of equipment is located? s Finding out if the customer wants you to dispatch someone or do they want you to pick the unit up? The list of what you can ask for or gather could be anything you feel is appropriate for your respective businesses. The point is to examine how you interface with your customer on the front end, which is the most critical step toward improving your customer service program. This does not mean that your communications with the customer after the first step are less important. This simply means you need a good, solid foundation to start with. All interactions with the customer should leave the customer feeling as if they are your No. 1 customer. n
TROY OTTMER is vice president of Fixed Operations at Doggett Heavy Machinery Services LLC in Houston. Ottmer has worked in the equipment and automotive industry for 24 years. He can be reached at troy.ottmer@ doggettmachinery.com. 38 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> CANADA
CODIE TAYLOR
Skilled Labor Shortage Affects All Canadians Government implements initiatives to reverse the trend and attract laborers.
The solution will not come from government alone. Industry also needs to be better at attracting workers, particularly by offering more sought-after apprentice opportunities.
T
here are countless people with university and college degrees unable to find work or unemployed or underemployed, so it seems almost paradoxical that there would be an ever-increasing shortage of skilled laborers. Yet this is exactly the situation in Canada. Any keen observer of Canadian industry can foresee that there is a growing shortage of laborers entering the skilled trades. Without younger people entering the profession to replace those leaving it, the precarious situation only gets worse as the current workforce ages. Experts anticipate a shortage in Canada of close to 1 million tradespeople by 2020. The average age of a tradesperson in Canada reached 40 in 2007, four years older than it was in 1987. The average age of welders is 56; average framers and finishers are in their 50s. The controversial Temporary Foreign Worker Program (TFWP) was designed to fill in the gaps, but recent reforms to the program have made it more difficult for employers to find skilled foreign laborers, only compounding the problem. Not every sector will be affected in the same way. The construction, mining and petroleum sectors are examples of industries that will likely face a more acute shortage of skilled workers over the next few decades. Others will not feel the crunch as much. No matter the sector, it is safe to say that with fewer workers, there will be less of a need for equipment distributors. The government of Canada has been aware of the impending shortage for a number of years and has been working
to reverse it. Last year, former Employment Minister Jason Kenney told a skills summit, “A shortage of skilled workers will be one of Canada’s greatest future economic challenges,” and outlined measures he anticipated would incentivize people to enter the skilled trades. Some of the initiatives the Canadian government and their provincial counterparts have implemented include tax incentive programs to attract young Canadians to enter the skilled trades and expedited entry for foreign skilled laborers into Canada. Stressing the increasing demand for skilled laborers and high wages, governments have directed guidance counselors and employment officers to encourage job seekers to consider entering a trade. Ottawa created the Youth Employment Strategy in part to attract young job seekers to these well-paying jobs. The government of Canada also enhanced tax deductions and credits for apprentices and tradespersons, and is actively encouraging women to enter the trades. The government now provides tax deductions for employers to provide on-the-job training opportunities for apprentices. The solution will not come from government alone. Industry also needs to be better at attracting workers, particularly by offering more sought-after apprentice opportunities. It is imperative that the government works handin-hand with industry to come up with creative solutions for the long foretold shortage. At AED, we want to be a key partner with the government of Canada and will offer our assistance in an attempt to help address the need for skilled workers in fields that affect our line of business. ■
CODIE TAYLOR is a senior consultant at Bluesky Strategy Group. She can be reached at codie@blueskystrategygroup.com. Members of the Bluesky Strategy Group contributed to this report. 40 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> EASY WINS
STEVE CALECHMAN
Build Your Identity By Blogging Regularly Blogs can help create an ongoing conversation with your customers if done correctly.
Ultimately, you’re having an ongoing conversation with your audience.
S
ocial media and optimizing your website are topics we’ve discussed in the past in this column. This month, we will look at the role of the blog and delve into content, themes and how to approach each post in order to build your identity and distinguish your dealership from others. Michelle Phillips, president of Codefetti, a Web design and Internet marketing company, gives some advice: Stay regular. The often-said mantra holds: Be consistent. Writing regularly builds stamina, and ideas beget ideas. If all you can manage is once a month, that’s fine. Just maintain the schedule – there are fewer things that will make people leave your site and question your company faster than seeing the most recent post with a 2014 date. Think about length. Brevity is always appreciated, but 1,000 words is good target. Search engines and analytics notice longer pieces since they’re considered higher quality and more likely original. So what do you write about? Answer a relevant question. Start with what interests you. Seeing yourself as a customer maintains focus. Ask salespeople and service technicians what issues keep coming up and then keep a list of topics. You might never get to all of them, but having a backlog will prevent you from scrambling for a subject. Your company, your byline. You could hire a writer – a professional could be more efficient – but an outsider won’t be as invested as you are or able to better capture your voice. Authenticity trumps polish. You can minimize the publishing grind by mixing up
the rotation with contributions from outside experts and department staffers. Along with providing different perspectives, readers will get to know the individuals in your company. The power of generosity. The point of the blog is to be read. While that’s obvious, it can be forgotten in pursuit of customers. Resist the urge to sell. People know that you have product, and if they feel that every post is an eventual pitch, they’ll leave your site. You don’t have to completely avoid it, but try to maintain an 80/20 split of sharing knowledge versus selling; any self-promotion becomes more palatable since it is the exception. Your formatting options. You can have a slew of topics, but you want to avoid a sameness of presentation. Certain approaches inject variety and traditionally get traffic: sHow-to posts, coupled with always-helpful videos, establish you as the go-to expert. sA three-part series will help to spread out a larger topic. sBehind-the-scenes posts provide insight and further personalize your company. sReviews are another solid way to establish yourself as an expert. sLists generate comments for what’s mentioned and not mentioned. sThe occasional rant can be both controversial and endearing. Ultimately, you’re having an ongoing conversation with your audience. Make your copy solid and typo-free, and then publish it. You can always revisit something with an update, which is never a bad move since it builds trust and can bring an old topic back to prominence. n
STEVE CALECHMAN is a freelance journalist in the Boston area. He is a contributing editor for Men’s Health and his work has appeared in The Boston Globe Magazine, the Old Farmer’s Almanac and Delta’s Sky magazine.
42 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> SUCCESS STORIES ERIK SKOGSBAKKEN
Bank Tailors Financing For Company To Expand Rental Fleet This simple, cost-effective program helps an equipment distributor ditch a costly, cumbersome process.
The bank tailored a financial solution to streamline the documentation process and allow the company to grow its rental fleet to more than 50 units. .
A
company that manufactures industrial equipment for both sale and rental to its customer base recently came to FirstMerit Bank looking for financing options to expand its rental fleet. As is fairly standard in bank financing programs, the company’s current financial institution required each titled unit to be financed via a separate promissory note. The company had 25 rental units, which meant 25 sets of documents and 25 loan payments each month. Each time a new unit was put into or taken out of the fleet, a new note had to be drafted and signed or an existing note paid off. This documentation process quickly became cumbersome, costly and time-consuming for both the controller and owner of the company. In response to the company’s need and desire for a simpler, more cost-effective financing program with additional capacity, FirstMerit Bank tailored a financial solution to streamline the documentation process and allow the company to grow its rental fleet to more than 50 units. FirstMerit structured a revolving line of credit whereby all of the company’s rental units could be financed under a single-loan facility. Each rental unit was assigned a value (based on manufactured cost in this case) to arrive at a “borrowing base” type of structure whereby the value of each unit in the pool amortizes over a
mutually agreed upon time period that works for the customer. A customized collateral report format was created by FirstMerit to make reporting simpler. Each month the company updates the report only for new units added or units removed from the fleet. The company is then able to borrow up to the maximum total borrowing base value listed on the report each month. The company makes one payment each month of the interest only and can borrow additional principal or pay down principal whenever it chooses to do so. There are no prepayment penalties or loan fees associated with paying off or adding new units to the borrowing base. “FirstMerit took the time to understand our desires and frustrations and developed a complete financial package to support both our current banking needs and our growth plans,” the controller of the company said. “This package included a creative loan structure that saves us time and money. Our FirstMerit bankers have also been responsive to changes in our business, including the areas of treasury management and international banking. Overall, we feel that we have a true two-way relationship with FirstMerit and our banking team.” If you have any questions or would like additional information about this financing solution or how FirstMerit Bank can customize for your business, contact me at 847-391-6271 or Erik. Skogsbakken@firstmerit.com.
ERIK SKOGSBAKKEN is senior vice president of commercial banking at FirstMerit Bank.
44 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> SUCCESSION PLANNING
JAY S. LIPSEY
Family Office: Alternative Capital Solution Family offices are organizations dedicated to managing the wealth of an ultra-high net worth family.
Family offices are organizations dedicated to managing the wealth of an ultrahigh net worth family, usually with a net worth of at least $200 million.
T
here are many circumstances that lead an owner to decide it is time to sell or bring a capital partner into the business. A retiring owner may not have a willing successor or the younger generation may want to grow the business but lack sufficient capital to take it to the next level. While a business owner may desire to sell their business outright, very often earn-outs, seller notes and minority stakes mean that their professional and economic future are tied to the ongoing performance of their business, now under new ownership. Consequently, aside from aligning financial interests, business owners must carefully assess the cultural and personality fit of any prospective investor. Family office investors are a relatively unknown option that can offer both better compatibility and superior economics over the long term. Family offices are organizations dedicated to managing the wealth of an ultra-high net worth family, usually with a net worth of at least $200 million. The origins of their wealth most commonly stem from the sale or operation of a successful private business, providing them with an inherent understanding of the unique circumstances of family businesses. Many of these family offices choose to acquire or invest into closely held businesses with the goal of making more money than can be achieved via the public markets. Selling or partnering with a family office might be a better option if any of the following statements apply: 1. If what happens to your business, employees and community matters to you post-sale; 2. If you are going to have an ongoing interest and involvement in the business and care about partnering with someone who can add value; 3. If you require a creative, flexible structure outside of the “plain vanilla” asset sale. While obtaining a fair price is a major part of selling a business, owners must realize that buyers may have differing intentions. Strategic buyers and institutional firms often treat small- and mid-size acquisitions as candidates for downsizing (e.g., eliminating duplicate costs, etc.) or a quick flip.
Many prospective sellers place a premium on purchasers and partners who are likely to respect the knowledge and experience of various key stakeholders, including employees, suppliers and the community at large. Family offices will offer that respect because they come from family businesses themselves. Another advantage that family offices offer is that of a long-term perspective, fostering a multigenerational outlook for the company’s future. Rather than chasing quick, speculative profits, family offices are committed to patiently creating sustainable value by running the business the right way for long-term performance. For example, their conservative nature often translates into using minimal amounts of debt to ensure the resilience of the business during recessionary times. While some family offices consider a variety of sectors, most tend to prefer investments in industries generally where they initially made their money. Unlike traditional investment funds, which generally have dozens if not hundreds of investors, most family offices focus their attention toward the success of a limited number of companies. Family offices have the ability to structure a transaction in a relevant, personalized way: An agreement may allow for a staged buyout over time or for the original owners to repurchase. Many family businesses seeking growth capital are sensitive to “forced exit clauses,” which enable an investor to force a sale of the entire business after a stipulated amount of time. Traditional funds have a fixed lifespan and therefore require this clause to ensure they can return capital back to their investors. The family office has been a rising source of capital that can offer business owners a collaborative partner with parallel objectives. When owners place importance on the values behind their business rather than solely on the highest price that can be attained in today’s market, the family office can provide a superior long-term solution that better accommodates employees, communities and other stakeholders. n
JAY S. LIPSEY (jlipsey@mccombiegroup.com) is a partner with McCombie Group, a private investment firm backed by a network of family offices from across the Americas. 46 | www.cedmag.com | Construction Equipment Distribution | October 2015
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>> TECHNOLOGY 101
BRIAN REHG
API Technology Allows Easy Sharing of Information
The Application Program Interface helps software systems communicate, making it easier to get the latest data.
If employees already know their existing ‘legacy’ software, how can they be expected to keep up every time better software comes out?
L
et’s face it: Technology hasn’t made our lives simpler. So why do we keep using it? The truth is that the tasks we need to perform every day, especially in the business world, are increasingly complicated, and technology really does make those tasks easier to perform. Web-based apps have become an integral component in any thriving business, whether for maintaining customer relationships, paying employees on a large scale or keeping track of inventory. If employees already know their existing “legacy” software, how can they be expected to keep up every time better software comes out? This is where an Application Program Interface (API) comes in. An API is a set of routines and protocols that allow two software systems to easily share data via a common standard transfer method. This handy building block of
programming lets professionals utilize multiple software applications integral to running a company, without needing a computer science degree. Three years ago, my company was approached by a large global beverage supplier to consolidate data from three of their existing software applications and display that data on a user-friendly mobile dashboard. The dashboard would let their drivers quickly pull up logistics information on their phone or tablet and send those updates back to their existing systems. My team was able to complete this task using APIs. Because these different software applications could now communicate, my team could tie four different systems into one simple and usable dashboard. It’s still in use today and has received many feature updates over the last three years. APIs underpin technology’s growing trends, such as cloud computing and smartphone/tablet usage for businesses. The developers of these new systems encourage third-party programmers to enrich their software by building custom tools and features that directly interact with their applications. They are no longer threatened because they recognize the commercial benefit of this collaboration. Many larger companies create open-source APIs so we can do things like use Google maps on our website contact page or add a Facebook “Like” button directly to a company blog post. APIs untie the hands of business owners who understand the importance of technology. Ultimately, executives can have customized mobile dashboards, instantly giving them access to important data and information about company issues and so much more. Before purchasing your next software application, ask your IT department about the API. n
BRIAN REHG is CEO and founder of Blue Stingray, a Web and mobile application development agency. As a former software engineer with over 20 years of development experience, Rehg stays up-to-date on emerging business technologies and is an active member of several local business associations. October 2015 | Construction Equipment Distribution | www.cedmag.com | 43
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Keep Your Service Department Organized and Profitable Technician Scheduling can help streamline your Service department and improve customer service. • • • • • •
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Technician Scheduling: Another way we are driving Fixed Ops Faster Forward.
TM
Visit: cdkglobal.com/heavyequipment Email: sales.heavyequipment@cdk.com Call: 519.474.5212
Heavy Equipment © 2015 CDK Global, LLC / CDK Global is a trademark of CDK Global, LLC.
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