April 2017
CED
Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership
Human Resources
Discover the secrets to recruiting, screening and your company’s culture
n Cemen Tech
Cemen Tech spreads the word about an innovative technology
n LDI AED launches
new Leadership Development Institute
n New Member Profile
Rapid International USA is excited to be a part of a growing industry
HE AV Y COULD BE EASY A R E YO U A F R A I D O F A N I N T EG R AT ED SYS T EM P R O J E C T, B E C A U S E Y O U A R E N O T S U R E W H A T YOU WILL GET IN THE END? IN NA X T YOU GET OVER 700 EQUIPMENT DEALERSHIP SPECIFIC BUSINESS PROCESSES I N A P R E C O N F I G U R E D E N V I R O N M E N T – O N DAY O N E! NA XT IS A COMPLETE EQUIPMENT DEALERSHIP S O L U T I O N F O R S A L E S , C R M , R E N TA L , S E R V I C E , P A R T S , P O W E R S Y S T E M S , P R O C U R E M E N T, FINANCE, MOBILE AND BUSINESS INTELLIGENCE. OV ER 2 0 C O U N T R I E S, OV ER 6 0 0 LO C AT I O N S, OVER 20,000 USERS. N A X T. A R E Y O U N E X T ?
Microsoft Dynamics 365 for Equipment Dealers
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2017
register online bit.ly/aedevents
2017 Leadership conference August 20-22, 2017 | Fairmont Sonoma Mission Inn & Spa | Sonoma, California
Are you a business owner or a manager who is: • Looking to develop the next generation of leaders for your family owned business? •
Interested in forming a deep, sustainable team to ensure that you and your organization will remain successful?
•
Searching for new technology trends within the equipment industry?
•
Learning critical leadership skills including dynamics of change in culture, laws of leading and discovering diverse forms of influence?
BUILDING BLOCKS to Developing a WINNING TEAM Developing QUALIFIED leaders and the effort it takes to acquire the RIGHT candidates can be a difficult process. AED’s Leadership Conference is designed specifically for the rising talent in your dealership. The emerging leaders will work among their peers to develop new skills for managing and leading productivity and to learn new techniques to take back to the dealership.
If so, join AED on Sunday, August 20 Tuesday, August 22 for an informational conference where attendees can expand their horizons and explore the future of their business on a whole new level.
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contents CED Magazine | April 2017
vol. 83 no. 4
www.cedmag.com
>> FEATURES
24
On The Cover
Cemen Tech hopes to spread the word about an innovative technology you’ve (probably) never heard of: When working on a project involving concrete, contractors often have to go through the hassle of calling their local ready-mix company, placing an order, and waiting around for the company to mix their concrete and deliver it to the construction site. But what if they didn’t have to do all that?
26
Leadership Development Institute The AED Leadership Development Institute will provide participants a rich learning environment that is tailored towards the need of your dealership.
A CED SPECIAL SECTION
HUMAN RESOURCES 28-38
Dive into this CED Special section to discover the top HR secrets geared towards the construction equipment industry.
46
Meet A New AED Member From its humble beginnings in a small work shop in Northern Ireland more than 40 years ago, Rapid International (originally founded under the name Craigavon Engineering) has gone on to become a leading manufacturer of mixing equipment for paving, civil and environmental contractors.
April 2017 | Construction Equipment Distribution | www.cedmag.com | 3
contents CED Magazine | April 2017
>> EDITORIAL Editor SARA SMITH ssmith@aednet.org Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com
>> COLUMNISTS Heidi Bitsoli
Freelance writer
Rep. Bradley Byrne (R-ALA.)
Steve Chacon Accruit
Rex Collins HBK CPA and Consultants
Christine Corelli
Christine Corelli And Associates
Steve Johnson
F
or dealerships and businesses alike, the human resources department plays a vital role. Not only are human resource professionals responsible for processing your payroll, they have an essential role in developing your company’s culture. The performance of an individual is largely driven by his or her work environment, and a driven, productive employee can only mean success for the company. This issue of CED will dive into the diverse world of human resources covering topics EDITOR'S like body language communication and recruiting for skilled technicians, DESK to hidden threats within the dealership and finance for the HR professional. We hope that you use this issue as a tool to gauge how your HR department is doing in today’s challenging environment. I also wanted to take this time to inform you that publication of AED’s membership directory is right around the corner! In fact, with your $39 subscription, you will receive AED’s exclusive 2017 Membership Directory in May. With the membership directory, you can locate factory-authorized dealerships that are members of AED, as well as manufacturers, specialized service firms, financial organizations, technical schools and more. If you would like any additional copies, please contact AED’s production and subscription manager, Martin Cabral. He can be reached at mcabral@aednet. org or 800-388-0650 ext. 5118. Sara Smith, Editor ssmith@aednet.org
AED Vice President, Foundation Operations
18 >> View From the Hill
Karen Algeo Krizman Freelance writer
Brian Shanahan Shanahan Design Inc.
Eric Stiles
Sentry Insurance
Troy Ottmer
Doggett Heavy Machinery Services LLC
Laura Wilkas
Monroe Tractor & Implement Co., Inc.
Ben Yates
AED regional manager
>> ADVERTISING
Vice President of Sales JON CRUTHERS 800-388-0650 ext. 5127 jcruthers@aednet.org Production Manager MARTIN CABRAL 800-388-0650 ext. 5118 mcabral@aednet.org Since 1920 Official Publication of
650 E. Algonquin Road, Suite 305 Schaumburg, IL 60173 630-574-0650 fax 630-457-0132
vol. 83 no. 4
The Evolution of the American Workforce
19 >> Regional Report
AED Technical Assessments are quickly taking root with AED dealers
20 >> Dealer Development
The AED Foundation offers programs and tools by which to meet and beat the competitive challenge for technician talent from other industries
22 >> Donor Profile
Vermeer Great Plains joins The AED Foundation
23 >> Preferred Provider Accruit
Does foreign equipment qualify for 1031 like-kind exchange treatment?
40 >> Leadership
Everything starts and stops with it
42 >> Problem Solved
The customer perception and redefining the customer experience
43 >> Taking Inventory
Making your annual parts inventory more efficient and less painful
44 >> Get Smart
Discover how to optimize today’s best practices for email campaigns
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 © 2016 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173 Phone: 630-574-0650. Periodicals postage at Schaumburg, Ill. 60173 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173.
4 | www.cedmag.com | Construction Equipment Distribution | April 2017
business services your aed membership provides solutions and options AED’s membership services and benefits are designed to enhance and develop the profitability and continuity of construction equipment dealers by providing tools and resources.
aed legal call counsel AED’s call counsel is a FREE legal hotline for AED members provided by Kopon Airdo, LLC — AED’s general counsel. Take advantage of this member benefit today, call 312-506-4480 or visit www.koponairdo.com.
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aed hr help desk AED’s 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. Contact Karla Dobbeck at Kdobbeck@askhrt.com or (888) 412-8079.
1/14/2016 2:40:14 PM
Experience The Chinese Equipment Over the past decade, Chinese infrastructure construction including transportation, energy and municipal facilities has ranked highly for quality and efficiency in many projects built around the world. Many of the builders of these projects have utilized Chinese-made construction machinery, which offers both good performance and low price. There are more than 20 leading manufacturers in China, including XCMG, Zoomlion, Sany, LiuGong, Shantui, SDLG, Lonking, SinoMach, NFLG, Yongmao, Jingong, CRCHI, CREEG, who produce a wide range of lifting machinery, earth-moving machinery, concrete machinery, road building machinery and tunnel machinery, which has played significant role in infrastructure construction in China as well as Asia, Africa, Latin America and Middle East.
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>> FROM THE PRESIDENT
BRIAN P. McGUIRE
AED Helps Members Take Good Care of Their Human Resource Professionals
Develop your human resource leadership skills at our Leadership Conference, this year in Sonoma, Calif., where up-and-coming industry talent will learn how to shape the future of their dealerships.
Human resource professionals are a vital part of the workplace running smoothly. They are responsible for ensuring the working conditions at the office are sufficient for workers. Making sure the office is a healthy and happy place will help increase efficiency and productivity in the workplace. All these aspects impact the work atmosphere and culture, which you want to be positive. They are also responsible for making sure employees are happy with their jobs. This includes hiring the correct people for a position, handling conflict between multiple employees or firing employees. When it comes to arguments, ensuring that you are giving feedback in the correct ways while defusing the situation before it becomes a full blown issue is important to office morale. Human resource professionals are responsible for making sure the correct people are in the position that works best for their skills. This is a very important role in the construction equipment industry where skilled labor is hard to find. Being able to recruit and find the right employees for the job, especially ones that are ready to take on the job at hand, is a challenge that they must face in this industry. Attracting talent isn’t easy, but skilled HR employees should be able to differentiate themselves, understanding your audience and packaging the position.
AED knows the importance of keeping your human resources professionals trained and educated on issues relevant to our industry. We provide many opportunities for professionals to grow in their positions to learn more about the industry or to help them grow into leadership roles. Develop your human resources leadership skills at our Leadership Conference, this year in Sonoma, California. Up-and-coming industry talent will learn how to shape the future of their dealership with this exciting and invigorating event. Attend this event from August 20-22 to gain the successful tools to bring back to your dealership. If you are looking for something more in-depth for your human resource managers, AED’s Leadership Development Institute (LDI) spans three sessions over a years’ time in July and November 2017 and March 2018. Participants of this event will strengthen core leadership abilities, deepen cross-functional knowledge and explore strategic connections across business lines. This unique seminar will combine multiple teaching styles including educational sessions with leading industry experts, assessments and one-on-one coaching. To learn more about these events or to register today, visit bit.ly/aedevents to train and help develop the leadership abilities of your human resources department.
BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at bmcguire@aednet.org. BRIAN P. MCGUIRE AED President & CEO
>> OFFICERS
ROBERT K. HENDERSON AED Executive Vice President & COO
JASON K. BLAKE AED Senior Vice President & CFO
>> AT-LARGE DIRECTORS
>> REGIONAL DIRECTORS
WES STOWERS Chairman Stowers Machinery Corp.
JAMES P. COWIN
MICHAEL LALONDE West Reg.
DIANE BENCK Vice Chairman West Side Tractor Sales Co.
Cowin Equipment Co., Inc.
Westrax Machinery, Inc.
PAUL FARRELL
MATHEW ROLAND Midwest Reg.
MICHAEL D. BRENNAN Senior Vice President Bramco, LLC
Modern Group Ltd.
Roland Machinery Co.
GAYLE HUMPHRIES
TODD HYSTAD Western Canada Reg.
CRAIG DRURY Vice President Vermeer Canada Inc
JCB of Georgia STEVE MEADOWS
RON BARLET Vice President Bejac Corporation
Berry Companies, Inc.
JOHN C. KIMBALL VP of Finance Kimball Equipment Company
Heavy Machines, Inc.
WHIT PERRYMAN Immediate Past Chairman Vermeer Texas-Louisiana DENNIS VANDER MOLEN Foundation Chairman Vermeer MidSouth Inc.
Vimar Equipment Ltd. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC
JAMES A. NELSON
JOHN RIGGS IV South Central Reg. J A Riggs Tractor Co.
KENNETH E. TAYLOR Ohio CAT
BRAD STIMMEL Southeast Reg. ASC Construction Equipment KAREN ZAJICK Northeast Reg. Norris Sales Co. April 2017 | Construction Equipment Distribution | www.cedmag.com | 7
>> FROM THE CHAIRMAN
WES STOWERS
The Stars Are Aligned For Positive Change And All We Need Is Your Involvement
Regulatory reform is all over the map, and that is why it is so important that we have a seat at the table. Otherwise, we could end up on the menu!
Are any of you confused about what is really going on in Washington these days? Tax reform, healthcare reform, regulatory reform and infrastructure spending – these issues are all on the front burner right now, and they are all critical to our businesses and to the industries that we serve. Most of our elected representatives truly want to hear our points of view, especially in the early stages of the legislative process. What would a significant tax reduction mean for you? What about LIFO and LKE? Is the $1 trillion infrastructure package for real? What about regulatory reform? It is all over the map, and that is why it is so important that we have a seat at the table. Otherwise, we could end up on the menu! AED’s governmental affairs program is already in high gear advancing the equipment distribution industry’s agenda on Capitol Hill. The 2016 election’s unexpected results defied all odds and have put several key issues in play that directly affect each of our dealerships and the thousands of our customers. Regardless of whether your candidates won or lost in November, the reality is that there are major legislative initiatives underway in our federal government, some of which could benefit our business and some of which could pose significant hardships. If there was ever a time to be highly engaged with your senators and congressmen in Washington, it is now. In early February, Daniel Fisher, AED’s newly appointed vice president of government relations, organized an intense two-day visit on Capitol Hill for several members of the AED board. We had the opportunity to meet privately with Senate Majority Leader Mitch McConnell, Senate Health, Education and Labor Committee Chairman Lamar Alexander,
House Rules Committee Chairman Pete Sessions, plus several other key congressmen already engaged in ongoing legislative initiatives. As I write this column for CED Magazine, preparations are well underway for this year’s Washington, D.C., Fly-In. There is so much at stake for our businesses in the agenda that is coming before Congress this year, which is why we must take every opportunity to make our voices heard. We should not underestimate the influence our industry can have if we speak with one voice through AED, especially in concert with other industry associations with whom we are allied. Our 2017 legislative priorities are very clear and are spelled out on AED’s website (aednet.org, click on “Government Affairs” and then click on “Voter Resources”). Any one of these legislative issues going in our favor would be of significant benefit to our dealerships and to our customers. This year it is possible that all or most could pass in some form through the legislative process. We must not waste this opportunity to ensure that our elected officials understand how their decisions on tax reform, regulatory reform and infrastructure could supercharge our nation’s economy and improve the well-being of every citizen. I urge you to invite your congressmen and senators to meet with you at your dealership. Your AED regional manager would be happy to help you do this. Show them firsthand the excellent jobs that we provide and the capitalintensive products that we all sell and service – it makes a lasting impression. We have never had the stars as well-aligned as they are this year for positive change – the time for action is now!
WES STOWERS is the 2017 chairman of Associated Equipment Distributors and President & CEO of Stowers Machinery Corp. 8 | www.cedmag.com | Construction Equipment Distribution | April 2017
>> AED INSIDER AED Tells Congress to Address Industry’s Skilled Worker Shortage
AED’s McGuire: Invest in Infrastructure to Fuel Prosperity, Jobs
PwC’s fifth US report and is our largest one yet. In it, we highlight family business leader’s views on a variety of issues, as told to us by 160 key decision-makers at companies across a range of industries. The US findings represent one component of PwC’s AED global survey of over 2,800 family PREFERRED business decision makers in 50 PROVIDER countries. As one of the largest surveys of its kind, we hope you’ll important research helpful in helping benchmarking the state of your family business with that of your peers. We’ve spoken to firms approaching their first generational transition, as well as those that measure their longevity in centuries. Despite economic turmoil, family businesses have continued to grow over the past year. What are the most pressing challenges facing family businesses today and what constitutes a well-functioning board for them? Find out in our latest report. Access the survey at www.pwc.com/us/en/private-companyservices/publications/family-business-survey.html
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Brian P. McGuire, president and CEO of Associated Equipment Distributors, issued the following statement regarding President Donald J. Trump’s address to a joint session of Congress. “With a new president and Congress, the bipartisan leadership failures of the past now present an opportunity for Democrats and Republicans to work together and provide long-term, robust investments to address the nation’s infrastructure needs. This evening President Trump laid out a bold vision for rebuilding America. Whether it’s new user fees or public-private partnerships, all options must be on the table to provide these long-overdue investments. “We as a nation must not continue to forsake our responsibility when it comes to the maintaining and improvement of our infrastructure. AED and its members are ready to work with President Trump and Congress to create economic prosperity and jobs across America.”
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seize new business opportunities and make the United States more competitive in the global economy. Businesses, schools and government officials must collectively commit to tackling the technical education crisis at all levels, and Congress can take a great step toward enabling that commitment by making workforce development a top priority.” AED has assumed a leadership role in Washington, urging lawmakers and the administration to make workforce development a primary focus, including by enacting important reforms to the Carl D. Perkins Career and Technical Education Act. To learn more about the hearing before the House Education and the Workforce Committee’s Early Childhood, Elementary and Secondary Education Subcommittee, visit edworkforce. house.gov/calendar/eventsingle. aspx?EventID=401349. Workforce policy was the top focus of the AED/EDA Washington Fly-In on April 4-6. To learn more about AED Foundation resources, visit aedfoundation.org/dealerresources.
★
RAN AR
The equipment industry’s skilled worker shortage is a major strategic challenge and is hindering economic growth, Associated Equipment Distributors’ (AED) President and CEO Brian McGuire told a House panel recently. In a letter delivered to House Education and the Workforce Committee leadership prior to a hearing on career and technical education (CTE), McGuire highlighted a 2016 AED Foundation-commissioned study that found the shortage of qualified equipment service technicians costs equipment dealers $2.4 billion per year in lost productivity and forgone economic opportunity. He also discussed a report released by The AED Foundation last month, which concluded that while skills-based learning will increase students’ lifetime earnings, most states have work to do to better prepare students for technical careers. McGuire wrote, “By making technical education a priority, Congress can help better prepare workers for well-paying careers, ensure that U.S. companies can
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April 2017 | Construction Equipment Distribution | www.cedmag.com | 9
>> AED >> AED INSIDER INSIDER Commercial Web Services If you missed out on our presentation at the Associated Equipment Distributors Summit in January, you can read all about in our feature on Big Iron Dealer! Check it out: theclutch.commercialwebservices.com/?p=3754
Ben Yates @AED_East Great having @RepRyanCostello out to discuss technical trades and investing in tomorrows skilled workforce at @Ransome1916
#AEDGetSocial Ben Yates @AED_East @waketechcc & their CE training programs for techs & operators. Most students have jobs secured before graduation #AEDaccredited – at Wake Technical CC Technical Education Building
Rapid International @rapidintl Rapid International Retweeted Big Iron Dealer This is excellent, we are looking for more Dealers too in the NE USA region find us @AEDSocial or @rapidintl
Jason K Blake @aedcfo Regional visit, promoting workforce development at Elizabethtown Junior College in Kentucky @AEDSocial
Jason K Blake @aedcfo AED Foundation working with John Deere Training Facility to promote and develop new workforce initiatives!
Would you like to see your company featured in our next issue of CED Magazine? Simply tweet us @AEDSocial and we’ll pick our favorites each month and publish them!
Ben Yates @AED_East Terrific update on infrastructure investment and tax reform from @ MarioDB today for FL @ AEDSocial members at #CONEXPOCONAGG
10 | www.cedmag.com | Construction Equipment Distribution | April 2017
Lisa M. Bennett @ mrslisambennett .@AEDSocial thanks for the support for our team @ PointofRental & our partners @SmartEquip! What a week @ conexpoconagg! #heavyequipment #ROI
Modern Group Ltd at United States Capitol. Modern Group Ltd CEO Paul Farrell Was on Capital Hill Today With The Associated Equipment Distributors Board of Directors to Speak Directly to Lawmakers on Our Industry's Top Legislative Priorities.
>> AED INSIDER Lake Oroville, ARTBA Study Underscore Public Safety Crisis Brian P. McGuire, president and CEO of Associated Equipment Distributors, issued the following statement regarding the situation around Northern California’s Lake Oroville and a new study by the American Road & Transportation Builders Association that found nearly 56,000 bridges across the country are structurally deficient. For his full statement on the Lake Oroville crisis visit http://bit. ly/2lLbCKq. “The new ARTBA analysis underscores the need for sustained and
substantial investment in our nation’s infrastructure. Whether it’s a decaying dam, a crumbling bridge or an inadequate electrical grid, Americans are depending on an outmoded infrastructure network, placing public safety and welfare at risk. The time for leadership in Washington is long-overdue. The quality of life for all Americans hangs in the balance as partisanship overshadows good policy and Congress delays on making decisions to invest in our country’s longterm future.”
Mark Your Calendars for These Upcoming AED Events Basic Rental Management Seminar 2017............................................................................ May 18-19 The Basic Rental Management seminar will be for those individuals and dealerships that have limited experience with managing a rental fleet (fewer than 50 machines). The course materials and discussions will include the formation of a profitable rental fleet, guidelines for establishing rental rates and understanding of operational processes that directly impact profitability. In addition, we will review the required personnel that is needed to properly support a rental fleet along with job descriptions and candidate profiles. Embassy Suites by Hilton Baltimore at BWI Airport 1300 Concourse Drive Linthicum Heights, MD 21090
Register online: bit.ly/aedevents Room Block Link: http://embassysuites.hilton.com/en/es/ groups/personalized/B/BALIAES-AED-20170517/index.jhtml
Equipment Dealer Business War Games 2017......................................................................June 5-6 This Dealer War Game event puts the “keys in your hands” through simulation. It’s your dealership and you have important decisions to make. Who will you hire, how will you train? Who is your target customer? Can you stock your inventory to sell, price competitively and still make a profit? Can your service department handle the demand? Will your bottom line stand up to the competition? Experience the rush of real competition and learn valuable strategy, financial, and business skills at the same time. Hilton Rosemont/Chicago O'Hare 5550 N. River Road Rosemont, IL 60018
Register online: bit.ly/aedevents Book your room here: http://www.hilton.com/en/hi/groups/ personalized/O/ORDHRHH-TES-20170603/index.jhtml
Leadership Conference 2017: Shaping the Future of Your Dealership........................ August 20-22 AED's Leadership Conference is designed specifically for attendees to get ahead in their career and to accelerate their future within the dealership. No other event will give you a more focused expertise on building and optimizing emerging leaders within the construction equipment distribution industry. Attendees will be able to walk away with ideas to implement within their own areas of responsibility and a gain greater sense to becoming a more effective leader. Who should attend? Attendees may be the designated successor or they could be a candidate for a key position in your succession plan. Reserve your spot today and receive $100 off your registration fee. If you have any questions, please contact your regional manager: Phil Riggs Western Regional Manager 630-468-5128 priggs@aednet.org
Mike Dexter Senior Director Canadian Engagement and Midwest Regional Manager 630-468-5124 mdexter@aednet.org
Ben Yates Eastern Regional Manager and Manger of Membership Services 630-468-5130 byates@aednet.org
Thomas Lunney South Central Regional Manager 630-468-5125 tlunney@aednet.org Fairmont Sonoma Mission Inn & Spa 100 Boyes Blvd. Sonoma, CA
April 2017 | Construction Equipment Distribution | www.cedmag.com | 11
>> INDUSTRY NEWS LiuGong Names Huang Haibo as New President
Guangxi LiuGong Machinery Co. Ltd. has announced the appointment of Huang Haibo as its new president, succeeding Yu Chuanfen. Huang assumed his new role starting in February 2017 and is responsible for the strategy implementation Huang Haibo and operations of the company. Huang Haibo is a strong leader with a deep understanding of the construction equipment business. He has been with LiuGong for 25 years and has progressed through a series of technical and leadership roles. Having served as president of LiuGong Machinery for three years, Yu Chuanfen will take on the roles of vice president with LiuGong Group, the parent company of LiuGong Machinery, and vice chairman of LiuGong Machinery. Yu successfully steered the company through challenging times and market transitions, and LiuGong is grateful for his innumerable contributions and his distinguished tenure as president over the last three years.
IROCK Releases Closed-Circuit Impact Crusher with Small Footprint, High Productivity IROCK Crushers, a leader in global sales of mobile screening and crushing equipment, introduces its TC-15CC tracked closed-circuit crushing plant, ideal for small to medium contractors. The unit boasts a relatively small footprint and is easy to maneuver from job to job or around the site. It features a large-capacity hopper for loading material with large wheel loaders and excavators. Its new apron release system minimizes material blockages, which enhances uptime. The TC-15CC can process a variety of soft to medium hardness materials, such as concrete, gravel, rock and sand to produce uniform, cubical product. IROCK’s hydraulically adjustable aprons are remote controlled and provide optimal management over material sizing. The remote-controlled apron release and the unit’s large crusher opening allow the operator to remove material blockages from the machine’s cab, which means less downtime. The track crusher features a fixed, Hardox® hopper with fold-up wings and a 15-cubic-yard capacity. It is paired with a 40-inch vibrating grizzly feeder, which has 3/4-inch AR 400 liners on the pan and sidewalls. Producers can set up the TC-15CC to produce as many as four products or just one for optimal productivity. The 5-foot by 12-foot heavy-duty,
high-energy screen works with two side-transfer conveyor belts for producing the multiple products. Users can simply rotate the return conveyor out to make the fourth product or keep it in place to return the oversize to the crusher to be re-crushed. The ability to return the top and bottom deck materials to the crusher enables as much as 20 percent more production than competitors’ machines. The boosted efficiency equates to greater production in less time, reduced labor costs, less fuel consumption and lower operation expenses. This feature is ideal for applications such as asphalt recycling, where contractors commonly need a consistent half-inch product. The return conveyor is mounted on a hydraulic swivel, allowing producers to use the conveyor for stacking material as high as 16 feet. The TC-15CC also features a 44-inch by 5-foot double deck pre-screen that incorporates heavyduty grizzly bars on top and screen media on the bottom. Like all its equipment, IROCK designed the TC-15CC to perform with minimal electrical components. This enhances dependability and minimizes downtime associated with programmable logic controllers, or PLC, systems. For more information, call 866-240-0201 or visit irockcrushers.com.
IN MEMORIAM Howard Klein, Owner of Valley Supply & Equipment, Dies at 71
Howard J. Klein Jr., 71, of Frederick, Maryland, passed away peacefully on Monday, February 6, 2017 at the Frederick Memorial Hospital following a courageous battle with cancer. He was the loving husband of Donna Klein. Born Jun 20, 1945 in Baltimore, Maryland he was the son of the late Howard and Muriel Klein. Howard was President and Owner of Valley Supply & Equipment Company Inc., which he founded in 1982.
Howard enjoyed deep sea fishing, golfing, boats, cars and traveling. He always enjoyed spending time with family and friends. He was an avid football fan and loved cheering on the Baltimore Ravens. Howard J. Klein Jr. In addition to his loving wife, Donna, he is survived by his two sons, Adam Klein and fiancé Sherry
12 | www.cedmag.com | Construction Equipment Distribution | April 2017
Castle and Brandon Klein and significant other Renee Mason, two grandsons, Ryan and Nate, his sister, Lois Gretsinger and brother, Walter Klein and wife Debbie. He will also be remembered by his numerous nieces, nephews and special friends. Memorial contributions may be made in Howard’s name to St. Jude Children’s Research Hospital, 501 St Jude Place, Memphis, TN 38105 or at www.stjude.org.
>> INDUSTRY NEWS
Komatsu Wheel Loader, Motor Grader and Forklift Lines Win 2017 Equipmentwatch Highest Retained Value Award Komatsu America Corp., a leading global heavy equipment manufacturer, has been named a 2017 winner in EquipmentWatch’s annual Highest Retained Value awards program, the industry’s only award based on residual values for heavy equipment. Komatsu’s WA320 wheel loader, GD655 motor grader and BX50 forklift lines are the model series projected to retain the highest percentage of original value after five years, among all competitors in their respective categories. “Our customers choose Komatsu products because they want a machine that will last, run problem-free and retain its value over the long haul,” said Josh Alters, senior manager, remarketing, for Komatsu America. “These awards are a team win. From engineering and design, to manufacturing, to our distributors who keep these machines on the job with regular maintenance, everyone at Komatsu contributes to the value of our products. We’re looking forward to more Komatsu machines making this list next year.”“The Highest Retained Value Award is indicative of excellence across a manufacturing organization,” said Garrett Schemmel, vice president of EquipmentWatch. “Product quality has the most obvious impact on an asset’s performance on the secondary market, but residual values are also highly impacted by brand affinity and fair original pricing. A manufacturer must excel on all three fronts in order to gain recognition as a Highest Retained Value Award winner.”
To create the 2017 Highest Retained Value Awards, EquipmentWatch analysts considered 12,536 models in their valuation database, which were then narrowed down to 156 series from 36 brands. Once the finalists were set, residual values were calculated at the series level by leveraging a database covering more than $412B in market activity to identify the winner in each category. To learn more about the winning models and program methodology, visit www.equipmentwatch.com/residual-value-awards. Komatsu America Corp. is a U.S. subsidiary of Komatsu Ltd., the world’s second largest manufacturer and supplier of earthmoving equipment, consisting of construction, mining and compact construction equipment. Komatsu America also serves the forklift and forestry markets. Through its distributor network, Komatsu offers a state-of-the-art parts and service program to support its equipment. Komatsu has proudly provided high-quality reliable products for nearly a century. Visit our website at www. komatsuamerica.com for more information. Komatsu® is an authorized trademark of Komatsu Ltd. Komatsu America Corp. is an authorized licensee of Komatsu Ltd. All other trademarks and service marks used herein are the property of Komatsu Ltd., Komatsu America Corp., or their respective owners or licensees. April 2017 | Construction Equipment Distribution | www.cedmag.com | 13
>> INDUSTRY NEWS
Pettibone Names Raffaelli VP and General Manager
Scott Raffaelli has been named the new vice president and general manager of Pettibone/Traverse Lift, LLC, a leading manufacturer of rugged material handling equipment for construction, oil and gas, railroad, and other applications. In his new position, Raffaelli will oversee all company activities, including engineering, operations, sales and Raffaelli aftermarket. Raffaelli has held previous roles over the past seven years – including vice president and director of manufacturing and continuous improvement – for the Pettibone Heavy Equipment Group, which includes Pettibone/Traverse Lift and two sister companies. Before that he spent six years in the aerial work platform division of Terex Corporation. Raffaelli has a Bachelor of Science degree in mechanical engineering from Michigan Technological University. “It’s an honor to be taking the reins at Pettibone,” said Raffaelli. “Our goal is to continue to carry on the legacy that Pettibone has established with its material handling products for over 135 years, while continually improving our internal processes and striving to provide innovative and high-value solutions for our customers.”
McCann Industries Celebrates 50 Years McCann Industries Inc. is celebrating its 50th anniversary this year. The company was originally founded as McCann Construction Specialties Company in 1967 by Richard McCann to sell contractor supplies. Today, Jim McCann is president and CEO of the company his father started from a garage in Villa Park, Ill. The company now has seven locations throughout Illinois and Indiana and has expanded its contractor supplies business to include heavy equipment, representing some of the finest brands available, including CASE, Takeuchi and Carlson Paving Products. “I’m humbled by the success our business has realized through the years. I understand it’s only been possible because we employ people that thrive in a culture that’s focused on exceeding our customers’ expectations every day,” says Jim McCann. Richard McCann funded the original McCann Construction Specialties Company with a $1,500 loan from his father-in-law. Within a year he expanded to a 3,000-squarefoot facility across the street, and two years later he moved to Addison. In 1976 he built the current facility there, which was expanded by 20,000 square feet 10 years later. McCann Industries Inc. acquired three CASE construction equipment dealerships in 1995 to provide a full range of equipment,
14 | www.cedmag.com | Construction Equipment Distribution | April 2017
contractor supplies and services for the construction industry. Jim McCann began working with the company as an outside sales representative in 1991 and has assumed progressively more responsibility over the past 26 years. Before he was named president in 2013 and CEO two years later, Jim served as rental manager, sales manager, and vice president of sales and marketing. McCann Industries Inc. now represents more than 400 suppliers and manufacturers. In addition to construction products and equipment sales, McCann also offers rental equipment, on-site and shop repair and maintenance services, and quick parts deliveries for any brand, any model.
>> INDUSTRY NEWS Daniel L. Miller to Step Down as Manitou Americas CEO; Successor to Be Named
Manitou Group has announced that Daniel L. Miller, chief executive officer of Manitou Americas Inc. and president of the Compact Equipment Product Division, will leave effective April 30, 2017. Miller will remain active to assist with the transition while the company conducts an external search for his successor. Miller has been the chief executive officer of Manitou Americas Inc. since April 2010. He joined Manitou Americas in 2001 as director of operations, eventually becoming vice president of operations. Manitou BF, SA acquired Gehl Company in October 2008. Miller has been active in several industry and community groups, most recently serving as a board member for the industry trade group AEM in the CE sector. He also has been past president of the West Bend Chamber of Commerce in addition to serving on several other community and business boards. “I am grateful to have been able to contribute to this great company for over 15 years, and it has truly been a privilege to have had the good fortune to lead it for the last seven years. I am very proud of what we have been able to achieve with my Manitou Group colleagues around the world during a period of unprecedented challenges and opportunities,” said Miller. “However difficult this is, now is the right time for me to make this move as I engage in the next phase of my life. The talented leadership in place gives me great confidence about Manitou Americas’ ability for continued success to develop a sustainable and continued vision of growth for the company that will guide Manitou Americas well into the future.” “Dan has been a valued member of the Manitou Group leadership team, and his passion for the company and products will be missed,” said Michel Denis, Manitou Group CEO. “As we conduct an external search, we know it will take some time to find his successor, so we appreciate his willingness to remain for a period of time to help us with the transition. We wish him well as he embarks on this new chapter in his life.” Manitou Group is a world leader in the design, manufacture, distribution and servicing of all-terrain material-handling equipment for construction, agricultural, mining and industrial applications. The product range offerings include telehandlers; allterrain, semi-industrial and industrial masted forklifts; skidsteers, track loaders, and articulated loaders; access platforms; truck-mounted forklifts; and warehousing equipment and attachments. Through its core brands – Manitou, Gehl and Mustang – together with its international network of over 1,400 independent dealers, the group provides the best solutions while delivering the highest value for its customers.
Southeastern Equipment Joins National IPA
CAMBRIDGE, Ohio (February 10, 2017) – Southeastern Equipment Co. Inc. is pleased to announce the availability of Vacall sewer trucks and excavators, USB sewer truck nozzles, and Pearpoint pipeline inspection equipment at deep discounts through National IPA. The regional contract allows any government, nonprofit or educational entity to purchase these types of equipment from Southeastern Equipment in Ohio, Indiana, Michigan and Kentucky. Financing and leasing options are available, as is on-site delivery, operator training and service. “Southeastern Equipment is honored to be working with the National IPA to offer this selection of equipment,” says Charlie Patterson, president at Southeastern Equipment Co. “We look forward to providing equipment to these governmental agencies, educational institutions and nonprofit organizations to help them obtain the equipment they need through an efficient, economical process.” As a governmental purchasing cooperative, the National IPA meets legal requirements for competitive solicitation. Contracts are solicited, evaluated and awarded by a government entity that acts as the lead agency. Contracts utilize industry best practices, processes and procedures, ensuring maximum value and absolute security with complete transparency in the process. Contract #RH-15-034, awarded by the City of Rochester Hills, Mich., includes combination sewer cleaners, parts and accessories from Vacall, inspection equipment from Pearpoint and nozzles from USB. In addition to pre-negotiated discount prices, Southeastern Equipment Co. Inc. offers on-site delivery and operator training on machine purchases. Service is also provided by the dealer, along with financing and leasing options. For additional information on available models and pricing, contact Mike Zalewski at mzalewski@ southeasternequip.com. April 2017 | Construction Equipment Distribution | www.cedmag.com | 15
>> PRODUCT PREVIEW Panther T22 Now Available With Altec’s AC40-152S & AC45-127S One of Prinoth’s major customers, Altec Industries, recently announced that two of their biggest cranes, the AC40-152S and the AC45-127S, are now available mounted on the Panther T22. This provides customers access to hard-to-reach areas and the ability to employ the unit in the aerial mode of operation with 222 feet of working height and 1,200 pounds of platform capacity. Prinoth and Altec worked closely together on developing the unit to ensure both systems, the carrier and the unit, would have best-in-class safety, reliability and off-road performance. The quick-attach platform can be used on the main boom, the 49-foot telescopic jib or the 6-foot composite reach extension. The unit was designed to optimize deck space and allow easy access to the cab from anywhere in rotation. The workhorse AC45 is also available on the T22. More specifications can be obtained by contacting Altec directly. The Panther T22 is Tier 4 Final and offers 46,000 pounds of payload and is undoubtedly one of the largest tracked carriers on the market. Equipped with the innovative R.A.D. (rapid attach design) chassis – a Prinoth exclusive first designed specifically for the power utility industry – this vehicle can receive large cranes
or other sizable implements. With a ground pressure of only 4.39 psi at the maximum GVWR (gross vehicle weight rating), the unit will easily travel through mud or other soft soils to allow power utility companies to traverse even the hardest terrain.
Panther Series
The Panther crawler carrier series is comprised of the T6, T8, T12, T14R, T16, and T22 models, and can access difficult worksites without damaging the terrain, thanks to their low ground pressure design. While treading softly, they also carry the biggest payloads in the industry – from 5,443 kg (12,000 lb.) up to an incredible 20,865 kg (46,000 lb.) worth of equipment, materials and supplies. Their superior stability and floatability are valuable assets for those operating in challenging work environments such as mining, construction, oil and gas, and electric utility.
Prinoth
Prinoth is one of the world’s leading manufacturers of tracked vehicles. The state-of-the-art technology and innovative design of the products has set them apart, offering impressive efficiency and sustainability.
John Deere Updates Versatile 75G, 85G Excavators
Capable of working around congested job sites in efficient fashion, the updated John Deere 75G and 85G excavators boast new customer-inspired features, including handcontrolled proportional auxiliary hydraulics and the ability to be equipped with a hydraulic coupler that allows the machines to use backhoe buckets. “The standard hand-controlled proportional auxiliary hydraulics allow the operator to run attachments on the 75G and 85G at a desired speed. The operator can work very slowly for delicate work, like picking a piece of landscape stone or faster via full flow to open the thumb and drop debris,” said Mark Wall, product marketing manager, excavators, John Deere Construction & Forestry. “Couple that with the standard pattern changer, the rubber pads, the standard blade, and these machines come from the factory ready to work in a variety of applications.” The 75G and 85G boast a 57-horsepower Final Tier 4 diesel engine outfitted with a
diesel particulate filter (DPF) that cleans automatically without impacting the machines’ productivity. Like all G-Series excavators, the 75G and 85G include an unsurpassed operation environment with spacious, comfortable cabs and easy-to-use enhanced LCD monitors. A simple turn and tap of the rotary dial allows operators to select work mode,
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access operating info, check maintenance intervals, source diagnostic codes, adjust cab temperature and tune the radio. The cab includes a comfortable, fabric-covered adjustable suspension seat with ample legroom. The wide expanse of front and side glass, narrow front cab posts, large tinted overhead hatch and numerous mirrors provide all-around visibility.
Branch Management
2017
register online bit.ly/aedevents
2017 AED/AEM Equipment economic forum September 12 - 14, 2017 | Loews Chicago O’Hare Hotel Equipment Economic Forum brings together the industry’s top thought leaders and executives to discuss current and future challenges for equipment distributors and manufacturers. Topics such as market conditions and customer confidence will give you the chance to discuss financial issues that could arise in both areas and how they could affect your organization in the future. Political initiatives and insights will be presented, giving you foresight about the rising topics of conversation in government pertaining to dealers and manufacturers. Examining these topics with the top executives and thought leaders will broaden your horizons on these issues and give insight into the future of the industry.
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Engage With Industry Thought Leaders On Today’s Current Issues: • Two Days: The Equipment Economic Forum is an intensive two-day conference that is designed with your valuable time in mind. • 100+ Industry Attendees: Join your peer executives from the equipment industry to discuss challenges, threats and opportunities facing equipment distributors and manufacturers today and in the future. • 15+ Thought Leaders: The Equipment Economic Forum brings together the industry’s top thought leaders and executives to discuss current and future challenges for equipment distributors and manufacturers.
12/29/2016 10:57:38 AM
2/14/2017 9:43:49 AM
>> VIEW FROM THE HILL
REP. BRADLEY BYRNE (R-ALA.)
Examining the Evolution of the American Workforce It is clear our nation’s labor rules were designed for another era and no longer reflect the realities of the 21st century workforce.
Rep Byrne visits AED dealer member Beard Equipment in Mobile, Alabama.
A lot has changed since the 1930s. For example, in 1938, Franklin Roosevelt was president, and you could buy a loaf of bread for 10 cents. Since then, the internet was invented, more jobs are based in technology, and almost every American has a cell phone. Sadly, some of our nation’s most important labor laws, like the Fair Labor Standards Act, date back to the 1930s. One could argue that the needs of the workforce have changed a lot in just the past decade, but they have most certainly changed over the past 80 years. Clearly, something is still holding our economy back. Since 2009, the economy has grown at an average annual pace of just 1.5 percent. Wage growth remains largely stagnant, as the average hourly earnings of today’s worker are roughly the same as they were in 2009. Meanwhile, 7.6 million Americans are searching for work, and nearly 6 million individuals are working part-time hours when they really want full-time jobs. Our outdated labor laws and policies play a significant factor in limiting economic growth, and it is time we examine how to reform these important laws to allow for more flexibility for workers in the 21st century. This is a topic I covered earlier this Congress in my first hearing as chairman of the House Subcommittee on Workforce Protections. The American workforce has transformed dramatically since some of our labor laws were passed,
and the challenges facing workers and employers today are substantially different than they were in the 1930s. However, our labor policies have failed to adapt. These confusing and outdated labor policies are especially harmful to small businesses. Big businesses and large corporations often have entire divisions and lawyers set aside to figure out how to comply with rules and regulations. Smaller businesses, which make up the overwhelming majority of our economy, do not have the same resources. When small businesses suffer, American workers suffer. It is clear our nation’s labor rules were designed for another era and no longer reflect the realities of the 21st century workforce. That’s why it is so disappointing the Obama Administration missed an opportunity to streamline and modernize these important worker protections. Instead, the previous administration spent its time and resources advancing an extreme and partisan agenda that would stifle workplace flexibility and limit opportunities for career advancement. We must do better. Thankfully, we are in a new era now, and I am optimistic the Trump Administration will pursue policies that benefit American workers. President Trump has announced his nomination of Alexander Acosta to serve as Secretary of Labor. From his time on the National Labor Relations Board to his service as a U.S. attorney, Acosta has a clear record of protecting American workers and upholding the law. As chairman of the Workforce Protections Subcommittee, I am committed to working with Acosta to find solutions to update our labor and workplace laws and help bring them into the 21st century. Just as important, I want to find ways to eliminate confusion and uncertainty that make it harder for small businesses to grow and expand. We cannot accept the economic struggles of the last few years as the new normal. The American people have clearly spoken, and they expect their leaders in Washington to put the country on a better path and finally get the economy moving again, which means more and better-paying jobs. That is a top priority for me and our unified Republican government. I look forward to making a positive impact on behalf of workers in Southwest Alabama and across the country.
REP. BRADLEY BYRNE represents the first congressional district of Alabama. He serves on the House Education & the Workforce Committee and chairs the panel’s Subcommittee on Workforce Protections. Byrne is also a member of the House Armed Services Committee and the House Rules Committee.
18 | www.cedmag.com | Construction Equipment Distribution | April 2017
>> REGIONAL REPORT
BEN YATES
Measure, Then Manage
AED Technical Assessments are quickly taking root with AED dealer members who are using them, in conjunction with other tools, as prehire evaluations, to determine training programs, and as part of overall compensation assessment.
The old maxim “You can’t manage what you don’t measure” is an unavoidable truth in today’s equipment dealership, where margins on sales are shrinking and aftermarket support is the lifeblood for many organizations. And while there are multiple metrics to evaluate a technician’s production, getting a firm grasp on their working knowledge is a bit more difficult. Thankfully, The AED Foundation was aware of this need in 2013 and set out to develop a tool that would meet the needs of AED dealer members and the equipment industry. After forming a task force of 24 technical experts representing AED dealers, equipment manufacturers, and AEDaccredited technical colleges, and after multiple revisions, the AED Technical Assessment was born. AED Technical Assessments are quickly taking root with AED dealer members who are using them, in conjunction with other tools, as pre-hire evaluations, to determine training programs, and as part of overall compensation assessment. The Technical Assessment itself is a 160-question multiple choice test designed to measure technicians’ knowledge in six key subject areas – diesel engines, power trains, electric/electronics, A/C and heating, hydraulics/ hydrostatics, and safety/administration – which are deemed core fundamental areas in the equipment industry. The entire process is managed online, including ordering, assigning, test-taking and results reporting. After completing the 120-minute timed assessment, each test-taker receives a “percent correct” score for each of the above subject areas, as well as an overall score. There is no pass/ fail score for the assessment; however, you can compare the results of each test to those of other employees, to your collective company results, to the overall community results, or to those of students graduating from two-year equipment technology college degree programs. AED members pay only $50 per test unit,
which, according to Ron Barlet, president of Bejac Corporation in Placentia, Calif., is money well spent. “We have had numerous situations where the ‘experience’ did not match the test results, which would have cost us thousands of dollars of wasted resources in both time and money before we realized we had made a poor hire. These technical assessments are an essential tool for us when we evaluate skill sets and prescreen employees for our service departments. We’ve even started using it for supervisors, foremen, product support sales, and other positions that may require technical experience.” In addition to being used in pre-hire situations, they can be used with currently employed technicians to identify and assess skill gaps. “The AED Technical Assessment provides numerous benefits that help us maintain a quality technician staff. We are beginning to roll it out to our existing employees. We would like to ensure every one of our technicians has taken the assessment. It aids our trainers in knowing where our employees need additional training, and can help our managers identify top performers and those with increased aptitude.” The Technical Assessment is also a component of AED accreditation, which is a designation currently held by 42 postsecondary training programs throughout North America. These programs are training and developing the next generation of technicians, and they require each student to take the Technical Assessment at graduation. Stephen Murphey, program director at Florence-Darlington Technical College in Florence, S.C., said, “We’ve been using the AED Assessment for years to evaluate our students. It reinforces that we are teaching to industry standards and developing the type of highly skilled employee dealers need.” To learn more about the AED Technical Assessment and how your dealership can benefit from it, contact Rebecca Lintow at 630-468-5113 or rlintow@aednet.org.
BEN YATES is an AED regional manager and manager of Membership Services. Reach him at (630) 574-0650 ext. 5130 or byates@aednet.org. April 2017 | Construction Equipment Distribution | www.cedmag.com | 19
>> DEALER DEVELOPMENT
STEVE JOHNSON
More on Why Equipment Industry Career Promotion/Training Matters For the February issue of AED’s Construction Equipment Distribution magazine I wrote an
The AED Foundation offers programs and tools by which to meet and beat the competitive challenge for technician talent from other industries. Take advantage of them; they were developed specifically for AED members.
article titled “Technician Recruitment: What Can We Learn From Other Industries.” As a follow-up, in reading both U.S. government and industry analyses about the broader technical workforce, I am once again struck by the magnitude of the number of technicians needed by other industries that compete for talent with the equipment industry. In looking at the trucking industry, the U.S. Bureau of Labor Statistics’ (BLS) Occupational Outlook Handbook shows that 264,000 people are employed as “diesel service technicians and mechanics” in the United States. By definition, this includes workers that inspect, repair and overhaul buses and trucks, or maintain and repair any type of diesel engine. Over 30,000 additional positions will need to be filled by 2024. (Note that this category does not include those employed as heavy vehicle and mobile equipment service technicians.) BLS data for the automotive body and glass repair (collision repair) industries shows a population of 170,000 technicians, with a 10-year growth outlook of 9 percent. The trends in this industry are similar to those in the equipment industry: rising technician age, hiring of techs from
for heavy vehicle and mobile equipment service technicians. There are 187,000 technicians that inspect, maintain and repair vehicles and machinery used in construction, farming, rail transportation and other industries. The AED Foundation estimates that, due to both industry growth and technicians leaving the industry, the industry will need to hire an additional 20,000 technicians during the next five years. The AED Foundation offers programs and tools by which to meet and beat the competitive challenge for technician talent from other industries. Take advantage of them; they were developed specifically for AED members. Download student recruitment tools and reference materials from the Foundation website at www.aedfoundation.org. Collaborate with local industry stakeholders to execute a planned and ongoing recruitment strategy. Graduates of AED Foundation-accredited construction equipment technology postsecondary programs truly are
the competition, technician turnover and unfilled
the gold standard for well-qualified entry-level
shop positions.
equipment technicians. Ask the Foundation to
The technician situation for automotive service technicians and mechanics is on a much higher scale. BLS numbers show 740,000 workers with
show you how to get involved with your local high school and college technical programs. Your support of The AED Foundation is critical
a need for 40,000 additional technicians in the
as we work to contribute to equipment dealers’
next 10 years. One competitive issue is stated right
and industry success. If you really want to make
in the BLS handbook: most automotive service
a difference in technician career promotion and
technicians and mechanics work in well-ventilated
recruitment, consider donating to the Foundation’s
and well-lit repair shops.
2017 fundraising campaign.
For contrast, let’s look at the BLS numbers
Visit bit.ly/2017aedfcampaign.
STEVE JOHNSON is vice president of The AED Foundation. Reach him at sjohnson@aednet.org or 630-468-5134. 20 | www.cedmag.com | Construction Equipment Distribution | April 2017
EMERGING LEADERS COuNCIL S
making strides By Laura Wilkas Monroe Tractor & Implement Co., Inc.
"The meetings give us the power to step back and view the problem from the outside. You can’t see the full picture if you’re standing on it."
Eric Olsen Mega Machinery
Emerging Leaders Council member
ince its infancy just three Summits ago, the Emerging Leaders Council has come into its own. Whether it’s the networking opportunities, collaboration sessions, or just the chance to see familiar faces or meet new friends at AED functions, this next generation of likeminded leaders is making traction both personally and for the betterment of AED. The Emerging Leaders Council evolved from an idea into what it is today based on AED’s dedication and desire to bring new and relevant content to its members. “The idea came about as an effort to re-engage with the next generation of executives and owners in the equipment distribution business, resulting in a reliable peer network of like-minded individuals while providing AED with a new perspective on how to better serve their demographic,” reflects Phil Riggs, AED’s Western Regional Manager. With six formal meetings under its belt, the Council is guided by its mission and is currently led by Chair Laura Wilkas of Monroe Tractor and Vice Chair Jamie Carson of Road Machinery. The group meets twice a year, at Summit and at Leadership Conference. Over the past three years, membership has grown to approximately 25. We value quality and participation over quantity, but that doesn’t mean we aren’t looking for new members. AED’s regional managers make suggestions as they meet prospects that fit the dynamic of the group. “I make a point to identify and suggest those who are Gen Xers and Millennials with strong ties to their respective dealerships, in many cases because it is a family-owned business. Some of them have already ascended to leadership roles in the company and others are being prepared to do so,” shares Ben Yates, AED’s Eastern Regional Manager. Outside the walls of their respective dealerships, members are provided with a platform to share and learn new ideas, validate their own frustrations and even create relationships with competitors. New member Eric Olsen of Mega Machinery looks forward to “creating stronger relationships within this industry,” because Olsen recognizes that “together we can influence the direction of our respective industries to where we all benefit.” The group shares its passion to deliver and has even humanized the word competitor. “I have a whole new network to share ideas with and also reduce the stress of thinking, ‘I am the only one getting this wrong.’ I have learned that many of my competitors are actually really great people that face the same challenges I do every day and are just trying to make their dealership that much better, just like I am,” says Vice Chair Jamie Carson. Members also benefit greatly. Meetings are split between AED and dealership topics, making for great discussion. “It is nice to see that across the country, many are experiencing the same pains, frustrations and successes that my business is, and it is great to bounce ideas off of each other. It allows us to hear what has already been tested and succeeded or failed. It makes it that much easier to make a decision to better the business with facts and proven processes,” shares Jon Shilling of General Equipment and Supplies, Inc. Alex MacAllister of MacAllister Machinery says it’s about sharing “new ways of thinking and working that are different from what our company does. Which in turn helps us figure out best practices and become a more efficient, profitable company.” Whether you are looking to solve problems quicker, learn from those raised in the industry, or gain a new understanding of how things can be done, one thing is true for all: “The meetings give us the power to step back and view the problem from the outside. You can’t see the full picture if you’re standing on it,” says Olsen when asked how he has benefited from being a member of the group. Although many in the group represent second, third or even fourth generation family dealerships, there are also many who are not. The combination of the two types of leaders, with their insights and perspectives, brings unparalleled value that is instrumental in building this next generation of leaders within the industry and in AED.
LAURA WILKAS is the marketing manager for Monroe Tractor & Implement Co., Inc. She serves as chair of AED's Emerging Leaders Council. April 2017 | Construction Equipment Distribution | www.cedmag.com | 21
Vermeer Great Plains Supports The AED Foundation The Kansas-based equipment dealer pleased to have The AED Foundation fighting for their needs By Heidi Bitsoli
Scott Ryals is vice president of operations for Olathe, Kansas-based Vermeer Great Plains, which employs approximately 80 people and is comprised of five branches that cover all of Kansas, Oklahoma and the western half of Missouri.
F
or Scott Ryals of Olathe, Kansas-based Vermeer Great Plains, being a contributor to The AED Foundation has its advantages. Ryals joined Vermeer Great Plains' team in 1983. “I started out sweeping floors and washing equipment,” he said of his earliest duties, “and worked my way up.” Now Ryals is vice president of operations for the full-service The AED Foundation equipment dealer that employs approximately 80 people Donor Spotlight and is comprised of five branches that cover all of Kansas, Oklahoma and the western half of Missouri. Your donation fuels the Vermeer Great Plains first opened its doors in 1964. work that allows The AED The company is a full-service – with an emphasis on the Foundation to develop a dealer model for success. The customer service aspect – dealer that sells, leases, trains and future of dealerships depend maintains Vermeer Navigator horizontal directional drilling on how we come together to machines and equipment, Commander rock trenchers, build our industry's workforce. utility trenchers, brush chippers, stump cutters, tub grinders, Thank you, Vermeer Great horizontal grinders, compost turners, mulch coloring Plains, for investing in the systems, and vibratory plows and trailers, as well as serving future of our industry! as an authorized Vac-Tron Equipment dealer. Technicians are To contribute to The AED graduates of the Vermeer Corporation’s Service Technician Foundation annual campaign, Certification Program. visit bit.ly/2017aedfcampaign. Ryals admits that at the beginning, he was basically just a young kid interested in making some money. He stayed on at the store through high school and while studying at Wichita State University. Now, with his 30-plus-year tenure at Vermeer Great Plains, Ryals boasts an unusual distinction in today’s career-hopping and company-shifting world: “I’ve never had another job outside of this company,” he explains. “I went from grunt to safety director” (when adhering to safety standards was really taking off, he adds). From there he went into sales. “I didn’t think I would be into sales, but I tried it after one guy didn’t work out,” and he admits he did pretty well in the new role. Through some economic ups and downs Ryals stayed on, eventually becoming a store manager and now a minority owner in addition to his vice president role. Along the way he earned his pilot’s license and bought a small plane. Today he flies to and from branches, literally flying over parts of the Great Plains to oversee the dealership. One challenge that continually arises is that of education. Vocational education is a struggling, and sometimes dying, part of curriculum, though the skills and training are still valued – and badly needed – in the industry. “Dealerships (that have ties to) good training or college-accredited courses tend to do better” when filling employment gaps with skilled workers. “More vo-tech training in high school would be good. When that went away it hurt us a lot.” Many think a four-year degree is the way to go these days, but that’s not always the case, Ryals says. There’s a strong need for the right skill set, for those with mechanical, hands-on or trouble-shooting training. Fast-forward to today – as a proud supporter of The AED Foundation, Ryals takes advantage of educational offerings, finding the information, networking and education to be of value. That’s in large part what brought Vermeer Great Plains to AED and The AED Foundation. These days “we’re a bit bigger and can talk to managers and have (Vermeer’ Great Plains') young guys come to meetings and get training. By taking part, we can see what other dealers are doing.” Getting to know other dealers and creating those friendships and connections is a huge advantage, Ryals adds. From here, the goal is to become more involved, to be more proactive with AED and The AED Foundation. Taking advantage of the available educational opportunities is another ambition. “I hope we can continue to send more employees from Vermeer Great Plains to conferences – for everything from learning opportunities to getting to meet people from all over.” The different perspectives of industry peers offer fresh takes and glimpses into trends and concerns in the industry.
22 | www.cedmag.com | Construction Equipment Distribution | April 2017
>> LIKE-KIND EXCHANGES
STEVE CHACON, ACCRUIT
Does Foreign Equipment Qualify for 1031 Like-Kind Exchange Treatment? Equipment owners must carefully engage with their entire team, including their tax advisor, qualified intermediary, and asset/project managers, to ensure that the equipment is spending at least 50 percent of its time within the United States.
Non-recognition of gain related to exchanges of property has been part of our country’s tax law for nearly 100 years: first, as part of the Revenue Act of 1921 (under Section 202) and then under Section 1031 as part of the 1954 amendment to the tax code. Its longevity speaks to the effectiveness of like-kind exchanges (LKEs) as an important tool for asset owners that aren’t cashing out of their equipment, but rather seeking a way to maximize their investment by using the equity to purchase replacement assets. For the majority of equipment owners conducting like-kind exchanges, the idea that Section 1031 is part of U.S. tax law is so obvious it doesn’t usually warrant any extended thought. Furthermore, most equipment owners who conduct LKEs sell and buy equipment that spends its entire useful life in the United States of America, removing the need to address any special planning related to foreign property. But what about those U.S. taxpayers who need to sell equipment that has been or is currently located outside of the country?
About Foreign Property
Section 1031(h)(2)(A) lays out special rules for foreign personal property. It states, “In general – Personal property used predominantly within the United States and personal property used predominantly outside the United States are not property of a like kind.” The theory is that foreign and domestic depreciation rules are so dissimilar that they render the property not like-kind under Section 1031. For 1031 purposes, it’s critical that any property that spends time on foreign soil be properly qualified as predominantly used in the United States.
Determining Predominant Use: The 168(g)(4) list
Section 1031(h)(2)(D) contains a special rule for certain property. This rule states, “Property described in any subparagraph of Section 168(g)(4),” including certain aircraft, transportation equipment, and vessels, “shall be treated as predominantly used within the United States.” This is good news, as it removes any doubt relating to the assets listed. Generally, if the equipment is listed here it can qualify for like-kind exchange treatment. However, if an equipment owner’s asset(s) are not listed within Section 168(g)(4), additional testing must take place.
Outside of the 168(g)(4) list
Outside of Section 168(g)(4), Section 1031(h)(2)
(B) details the time periods, or testing windows, for determining whether or not relinquished or replacement equipment is predominantly used within the United States. In the case of relinquished equipment, the code allows for a two-year lookback period that ends on the date of the transfer of the old equipment. There’s a similar testing window for the replacement equipment: two years from the date of acquisition. For relinquished or replacement property held less than two years, Section 1031(h)(2)(C) allows for the testing window to be shortened to the actual time period that the equipment was owned. There is no strict requirement that the old and new equipment be held for at least two years. After establishing the testing windows, the equipment owner must begin the testing process. It’s important to note that Section 1031(h) does not give any definition as to predominant use and gives no guidance on how to apply the test. This leaves equipment owners, and their tax advisors, to reference the Regulation Section 48-1(g) (1)(i) for testing. This section states, “The determination of whether property is used predominantly outside the United States during the taxable year shall be made by comparing the period of time in such year during which the property is physically located outside the United States with the period of time in such year during which the property is physically located within the United States. If the property is physically located outside the United States during more than 50 percent of the taxable year, such property shall be considered used predominantly outside the United States during that year.” In other words, for equipment not listed on the Section 168(g)(4) list, predominant use within the United States likely means the equipment is located within the United States more than 50 percent of the time during the testing window described under Section 1031(h)(2)(B) and (C). Equipment owners must carefully engage with their entire team, including their tax advisor, qualified intermediary, and asset/project managers, to ensure that the equipment is spending at least 50 percent of its time within the United States. If taxpayers are careful to use equipment predominantly in the United States, they can realize the tax deferral benefits of a like-kind exchange. If you have questions about this or any other 1031 matters, don’t hesitate to call me at 303-865-7316 or email stevec@accruit.com.
STEVE CHACON, CPA, CES, is Vice President of Exchange Service Operations, Accruit. Reach him at 303-865-7316 or email stevec@accruit.com. April 2017 | Construction Equipment Distribution | www.cedmag.com | 23
Cemen Tech Hopes To Spread Word About An Innovative Technology You’ve (Probably) Never Heard Of By Megan Mattingly-Arthur When working on a project involving concrete, contractors often have to go through the hassle of calling their local readymix company, placing an order, and waiting around for the company to mix their concrete and deliver it to the construction site. But what if they didn’t have to do all that? What if they could have their concrete made when and where they wanted it, and for less money? These are the questions Mark Rinehart, director of sales and marketing for Cemen Tech, hopes to have more people asking as he spreads the word about one of the most intriguing technologies you’ve (probably) never heard of. The Indianola, Iowa-based company was founded in 1969 to market the “Concrete Mobile,” the very first mobile or volumetric concrete mixer. Unlike traditional concrete mixers that homogenously combine ingredients for concrete before delivery, volumetric concrete mixers hold the dry and wet materials separately, measure them by volume, and mix them on-site and as needed. “Our equipment produces concrete in a way that’s completely different from the traditional process of hiring the local readymix company to mix and deliver it to you,” Rinehart says. “Our solution allows you to produce the exact amount of concrete you need – where you need it, when you need it, and for half the price. This technology gives users complete control over their concrete with no waiting. It’s a more versatile, flexible solution that eliminates the need to wait on others to get the job done.” That’s not all Cemen Tech offers. In the nearly 50 years since its founding, Cemen Tech has not only improved its volumetric concrete mixing technology, they’ve also greatly expanded and diversified their product line. “We provide the widest range of solutions available to the concrete industry, as well as the most diverse product line,” Rinehart says. “We also offer solutions for many different types of applications that use concrete, and we’ve built those solutions around the application and the customer’s need for concrete. But it’s our aftermarket support that makes us an industry leader – having the parts on the shelf when customers need them, or our six service technicians that travel around the world helping customers maintain their equipment.” Cemen Tech operates in more than 50 countries and even supplies equipment to several countries’ military branches. It’s safe 24 | www.cedmag.com | Construction Equipment Distribution | April 2017
to say Cemen Tech has quietly taken the world by storm. Maybe a little too quietly, according to Rinehart. “We have a product that has tremendous benefits for our customers, but there’s still a large percentage of people in the industry that haven’t heard of us,” he says. “Many people don’t know that they have an alternative solution for producing concrete or that this technology offers extreme return-on-investment potential for contractors, as well as municipalities, purchasing concrete.” The lack of representation in North America has led Cemen Tech to do something they’ve never done before: move to a dealer-based model in the United States and Canada. This marks a big step in the company’s history and an exciting opportunity for dealers with an affinity for technologies. “We’re bringing distribution to the U.S. and we’re excited to find the right partners to help us take this ‘new’ tech (that’s 48 years old) to people who don’t even know it exists,” says Rinehart. “Throughout our company’s history, all of the members of our sales
force have lived in Iowa. We’ve had international dealers for more than 20 years, but we’ve never had dealers in the U.S. until now. So it’s an exciting time for us and an exciting opportunity for dealers.” Cemen Tech hopes to connect with dealers in the Western U.S. and the South this quarter. For more information on Cemen Tech or the company’s distribution opportunities, call 800-247-2464 or visit cementech. com. Cemen Tech is also on Facebook, Twitter and LinkedIn.
GIVE YOUR CUSTOMERS
CONTROL EMPOWER YOUR CUSTOMERS BY OFFERING THE BEST CONCRETE PRODUCTION EQUIPMENT POSSIBLE. Adding Cemen Tech volumetric mixer technology to your product line gives contractors and municipalities full control over their projects. When they control their concrete production, they also control their labor, schedule and profits. Handcrafted in the United States, Cemen Tech mobile and stationary concrete mixers have been used in 52 countries for almost 50 years. Complement your current products with a new offering for your existing customers that has minimal competition, provides a tremendous ROI and has the ability to revolutionize the construction industry.
CONSTRUCTION EQUIPMENT SUPPLIERS WANTED.
VISIT CEMENTECH.COM OR CALL 515.962.6785 TO LEARN MORE ABOUT DEALER OPPORTUNITIES
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3/8/2017 8:59:27 AM
Introducing AED's
LEADERSHIP DEVELOPMENT INSTITUTE This way to success The first cohort of AED’s Leadership Development Institute will meet in Chicago July 12-14 and Nov. 8-10, 2017, and March 7-9, 2018. Cost for the year-long program is $4,995 and includes the following: Eight days of in-person training with industry experts, leaders and executive development professionals Regular reflective and insightful assessments to help participants realize their own strengths and weaknesses One-on-one coaching to develop individualized development plans, as well as track progress and monitor goals A capstone project with suggested improvements providing immediate ROI to the sponsoring companies Four webinars For more information, contact your AED regional manager, call 630-574-0650 or email info@aednet.org.
The AED Leadership Development Institute will provide participants a rich learning environment that is tailored towards the need of your dealership. By Karen Algeo Krizman ssociated Equipment Distributors (AED) will launch a new Leadership Development Institute this summer that will call on the next generation of leaders – as well as dealership owners and current executives – to step up their game. The year-long program will consist of three two-and-a-half-day learning sessions in Chicago, plus regular homework assignments, interactions with executive coaches, webinars and a cumulative capstone project that will lead to AED certification. “Our participants are likely to be either next-generation owners or top talent in the dealerships – people who are recognized for having the potential to take on broad management responsibilities,” said Patsy Svare, president of The Chatfield Group, which partnered with AED to develop the program. “It’s an intense program.” The institute is essentially a mini MBA program in leadership. Participants will be expected to dedicate time, energy and commitment to the program, attend all three in-person sessions, connect with their peers, and participate fully in and out of the classroom. At the center of the program is the capstone project. “(Participants) are going to be doing an assessment of the dealership across all functions, reporting on that and presenting back to their colleagues on what they discovered, and then taking on some of the best opportunities to make improvements; and we’re not talking about the chicken-feed improvements,” Svare said. “We’re talking about improvements that really have an ROI.” To complete their capstone projects, LDI attendees will interview leaders of all the departments in their organizations to find out how things are working and uncover potential opportunities for improvement. “Basically they will be doing a SWOT analysis across the various business functions and bringing that research back in a brief executive presentation (in
A
Instructors scheduled to teach at this year’s LDI: ▶ Rex Collins, principal at HBK CPAs & Consultants. Collins works closely with dealers on a wide range of transaction work services, including creative tax planning and financial statement issues. He also consults with them on such areas as operations, government regulatory compliance, valuations and M&A feasibility studies. ▶ Larry Kaye, CEO of Script International, who specializes in rental businesses. ▶ Maureen Murphy, partner at the legal firm Kopon Airdo in Chicago, who represents commercial and not-for-profit organizations. ▶ Patsy Svare, principal at The Chatfield Group and a specialist in organizational effectiveness, talent management and leadership development. ▶ Ed Wallace, president and chief relationship officer at Relational Capital Group. Wallace is also on the Executive Education faculty at Drexel’s LeBow College of Business and Villanova University’s Human Resources master’s program. the second in-person session),” Svare said. For their final presentations, participants will focus on what improvements they have either recommended or actually implemented at their organizations based on their SWOT analysis. “Between Session 1 and Session 3, that capstone project has them busy in their individual dealerships finding opportunities, documenting the nature of the business so their peers and colleagues can say, ‘Oh, I get it,’” Svare said. “They’ll be challenging each other and then by Session 3 they’ll come back with some payback that’s either improved by that point or actually implemented.” AED has held various other leadership development sessions over the years, but none as massive as this one. “AED has heard from many of its members about the need to develop next-generation talent,” Svare said. “The owners and principals are reaching a stage in their careers where they’re thinking about either transitioning leadership, or even transitioning ownership. So AED is responding. We’ve put a lot of thought into this. The Association leaders believe this is a program that will make an enormous difference and breathe new life into dealerships that are wondering how they will be able to transition as they face tremendous change in the industry.” At a cost of $4,995 per participant (not including airfare to the in-person sessions and accommodations), the program is a significant investment. “Are the executives of the dealerships willing to invest and send their best people away for three three-day trips in the course of the year, and when they come back to work they’re still going to have homework?” Svare asked. “Will the owners and executives of the dealers see and express their confidence in these leaders that they will in the course of a year learn a lot, grow a lot and come back to them with a real return on their development investment?” Svare believes that the ROI on the Leadership Development Institute will more than make up for the initial cost.
LDI
“We’re setting high expectations all around for this program,” Svare said. “We’ve got top-quality instructors who are well known within AED or are well known in general.” In addition to top-notch classroom instructors, each participant will be supported throughout the year by an executive coach who will create an individual development plan with them. “The executive coaches are people who have worked across many industries,” Svare said. “They are well qualified. They are certified or PhDs, people who have worked as coaches helping managers at all levels, really all the way up to chairmen of large corporations, helping them develop their capabilities as a leader. “(Participants) will talk to their coaches every month. And the coach will be cheering them on, holding their feet to the fire, challenging them with provocative questions, giving them tips and acting as a sounding board so that throughout the year they have a confidential executive coach they can work with so that by the end of the series they’ve learned a lot in another way.” Participants also will learn while back on the job. “That’s where the top executive has a role to perform,” Svare said. “Yes, they are investing some cash and some time in the development of their leaders. But when these people come back to work, the top execs are going to see some changes in behavior. They’re going to see their people trying some new things, some of which will be great and some of which might fall with a thud.” In the end, Svare thinks the program will be a win-win for both the dealerships and the attendees. “I’m confident this will make a huge impact,” she said. “(Dealerships) are facing tremendous industry changes, consolidation and challenges of all sorts. This is a leadership response that AED is providing to help leaders think about not only how do we survive, but thrive as we face all these changes.” April 2017 | Construction Equipment Distribution | www.cedmag.com | 27
HUMAN RESOURCES A CED SPECIAL SECTION
Your Organizational Culture:
Is It Friend or Foe?
By Jennifer Kaukeinen, RN MS-HSA Have you ever heard the saying, “Culture eats strategy for lunch”? What does that mean? Every project I work on is impacted by the culture in that organization. Culture is one of those “soft” words that we use all the time, but when you get right down to it, it’s hard to nail down exactly what it is. Many leaders and teams confuse culture with brand identity. Serving customers is typically the primary driver behind any business, and with that comes an emphasis and focus on the “customer experience.” People outside of an organization who speak about a company are describing its brand and reputation. What employees say from the inside of the organization is what reflects the company’s culture. If you had to use one word to describe what it’s like to work in your company, what would it be? What do you say about work when you get home at night? What are the unwritten rules at your workplace that everyone knows they must follow in order to be accepted? Any scenario that is preceded by the statement, “That’s the way we do things around here” represents the culture in your organization. Most people think the CEO and the highest-level leaders in the organization create the culture. To some extent that is true. What the leaders value, and what they do (not necessarily what they say) strongly influences culture. At the same time, the true culture of the organization comes out when the CEO leaves the room. How people treat one another in each moment, each conversation, and each interaction, time after time, reflects the culture. Here are some examples of organizational culture: intense, laid back, friendly, toxic, top-down, informal, driven, fun, resultsoriented, fear-based, competitive, fair. Too often culture is not given formal attention, and definitely not to the same degree as strategy. It seems that setting goals and announcing them should get the job done. Even if the goals are the right ones and they have been well communicated, the working environment (culture) supports or detracts from success. Adding to the complexity of this phenomenon, many organizations and leaders are delusional when it comes to understanding the culture, believing it is what they want or hope it to be instead of what it actually is. The truth is, whatever your organization’s culture, it is either contributing to your competitive advantage or detracting from it. If the way things are done is getting in the way, what can be done? 28 | www.cedmag.com | Construction Equipment Distribution | April 2017
HUMAN RESOURCES
The first step: get clear about what it is really like to work in your company. This can take some courage. Delving into organizational culture typically uncovers things that people have intentionally kept underground. Begin asking questions. What one word would you use to describe the work environment? What type of person fits in here? How would you describe your relationships with your peers? Your boss? Getting to the real answers requires a safe space. It is best to have a neutral person asking these questions, someone not seen as an authority. In many instances, representatives from human resources are good at this. Being clear and honest about the culture that actually exists provides a catalyst for almost every other aspect of organizational life, from recruitment of new hires to policies and procedures and the organizational structure. Healthy organizations identify the actual culture – without apology – and
people inside have a consistent experience. A great example is how the founder of Amazon, Jeff Bezos, speaks: “Our culture is friendly and intense, but if push comes to shove, we settle for intense.” Imagine the advantage recruiters and managers have by being able to screen new hires against their love or loathing of intensity. Potential candidates can make an informed decision knowing that they need to be comfortable showing strong feelings, be highly concentrated and to the point, and not shy away from direct communication. Creating business strategy without attending to the organization’s culture almost always undermines results. Successful organizations put time and resources into ensuring that the internal culture fully supports the business goals and strategy. Part two of this series in the next issue will provide practical ideas to help leverage culture as a competitive advantage.
The truth is, whatever your organization’s culture, it is either contributing to your competitive advantage or detracting from it.
JENNIFER KAUKEINEN, RN, BS, MS-HSA is an experienced coach and organization change consultant. Jennifer has over 25 years of healthcare clinical, operational and executive leadership experience that influences her coaching practice. She can be reached at jenk@rchcweb.com. April 2017 | Construction Equipment Distribution | www.cedmag.com | 29
HUMAN RESOURCES
Valuable, work-based learning opportunities provide practical experience for students and enhance the workplace.
Help Us Help You: The Need For Skilled Technicians T
Debra Mader Miller Vice President for Institutional Advancement, Pennsylvania College of Technology
here’s no question about the need for highly qualified and skilled heavy equipment technicians. But how can we partner to find this talent? What can industry do to hire and retain good employees? At Pennsylvania College of Technology, our long-standing tradition of partnerships with business and industry helps us recruit good students and, ultimately, helps to provide industry with the highly qualified skilled employees needed in the workforce. Help Us Help You! Recruiting good technicians starts by identifying good prospects. Employers play an important role by helping to identify good prospective students and connecting them to educational programs that teach the advanced technical skills needed in the workplace. Equally important are the life skills and soft skills – how to communicate, the importance of safety, good work ethics and professionalism. As members of the heavy equipment industry, it is helpful to get involved with both secondary and postsecondary schools and continue to communicate the critical need for skilled technicians. Connect with your local high schools and career and technical centers to communicate the need for technicians to teachers, counselors, parents and students to increase their awareness of the opportunities in the industry. Offer tours of your facilities or visits to job sites to generate interest in an exciting and rewarding career. Become familiar with the postsecondary educational opportunities that are available to help these prospects acquire the necessary skills
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HUMAN RESOURCES to successfully obtain careers in heavy equipment, and direct students to the educational programs that offer the level of education to meet your needs. At Penn College, recruiting students involves efforts by our entire campus. Our alumni and industry representatives also play a significant role in educating prospective students and their parents about the need for skilled technicians and the viable careers that are available. Identifying and connecting good prospects to Penn College is an important step in this process. At Penn College, our admissions office, in cooperation with our faculty, welcomes prospective students to campus. Regularly scheduled campus tour days, including weekends, allow students and their families to visit the campus, tour the labs and learn more about our programs and available services. These visits provide the opportunity to speak with the faculty, learn about financial aid, tour campus housing and hear how students can get involved both inside and outside the classroom. Our admissions representatives visit high schools and participate in college fairs throughout the year to recruit students into these highly sought-after career paths. We hold an Open House on campus twice a year to welcome families and provide the opportunity for them to explore areas of interest.
Employer relationships with the students
Just as in other aspects of a successful business, it’s important to develop relationships with potential employees. Gone are the days when good candidates were out “pounding the pavement” looking for work. It’s a competitive environment for recruiting skilled technicians, so it’s important to treat the process in a mutually respectful way and cultivate relationships. There are a number of ways to establish and build relationships with potential employees. Summer Internships While helping students gain experience in a real-life environment, internships can also provide an opportunity for the students to learn the culture of your business, and for you to determine whether the student would be a good candidate to recruit for a full-time
Komatsu D37EX-23 Dozer on loan from Anderson Equipment Company.
position following graduation. We often refer to internships as the ultimate interview. Student Sponsorship Consider sponsoring someone from your geographic area by helping them to pay for a portion of their education. Develop an agreement with them to work with you during breaks and over the summer while in school, and consider including a postgraduation commitment. Competitive Scholarships Establishing scholarships at the colleges from which you recruit will help students pay for their education. While the process may vary from school to school, most colleges will work with you to define the selection criteria that will best meet your needs. The scholarship selection criteria could give priority to students from your geographic area who are enrolled in the relevant majors, students with leadership qualities, and/ or students with academic excellence. The college will determine the recipients based on these criteria and will notify the student that they have received the scholarship through your generosity. I encourage employers to make the effort to reach out to their scholarship recipients and continue to build the relationship by taking them to dinner or offering summer or part-time employment – getting to know them on a more personal level. Continuing to develop the relationship could result in candidates for full-time employment.
Increase your corporate identity
Participate in College Career Fairs While most employers recognize the need to attend career fairs when they have position openings, many see the advantage of attending even if there are no current position openings; they participate just to meet and talk with students to keep their company in front of these students for future
consideration. Recruiting technicians is a competitive process, and there are new students each year, so it’s important that your company isn’t forgotten. It is always beneficial to have someone with you who has experienced the same educational environment as the students you are trying to recruit, so bring along some alumni. Offer to Speak in the Classroom or Provide Lab Demonstrations Faculty are often looking for opportunities to bring the latest innovations into their classrooms or labs. I encourage you to get to know the faculty and offer your assistance by providing your industry expertise and demonstrating new equipment. Help With Equipment Needs It is very expensive for higher education to offer quality programs that teach the skills needed in the heavy equipment industry. You can help significantly by providing state-of-the-art equipment to your partner schools through donations and/or equipment loans. Not only will you increase your brand recognition among the students, the product exposure will increase the students’ skill level and familiarity with the products you manufacture or the products you use in your business. This familiarity could ultimately save you time and money by your not having to invest as much into training new employees. Also, students develop brand loyalty, which could influence future purchasing decisions once they are in the workforce. Equipment and technology donations make it possible for students to gain a leading edge in applied technology. Continued on Page 47
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April 2017 | Construction Equipment Distribution | www.cedmag.com | 31
HUMAN RESOURCES
A New Value Proposition for Leaders By Ed Wallace “My business is built on relationships!” Most executives and managers will tell you that strong human relationships are critical to their success. They say they also need their team members and employees to be great at developing and maintaining relationships, collaborating, innovating, advocating for company goals and keeping the organization functioning effectively. These leaders would say human relationships—as opposed to digital or what I like to call “‘ethereal”’ relationships—are central to their ability to influence and inspire individuals to achieve their organization’s mission. Whether it’s external or internal business relationships, we need to understand how people think and act, what it takes for someone to want to listen to you, help you, work for you, work with you, and even buy from you. Candice Bennett and Associates Inc. recently conducted a survey of Fortune 500 executives across all business functions. It found that 89 percent of executives believe the strength of customer and employee relationships is the main reason they achieve their performance objectives every year. However, the survey goes on to indicate that only 24 percent of corporate leaders formally think about relationships from a process perspective. Therefore, very few leaders take any kind of structural, systematic approach to doing this.
Relational Leadership
I find it paradoxical: if relationships are so important, why are leaders unable to display “‘intentionality” toward them? The answer is due to the fluid, unpredictable nature of business relationships that makes companies struggle with just how to capitalize on their potential. In fact, many business leaders view developing business relationships as an instinctive mind-set rather than an approach based on beliefs, new skills and a repeatable process. I’ve heard the phrase, “We focus on hiring and growing people with the most magic”—and they hope that magic will rub off on everyone else. The common result is a haphazard, almost accidental process of relationship development. In other words, they do the best they can with relationships as the opportunities come along, and then they hope for the best. However, there is a solution
to overcoming the risks of this approach, and it begins with the way leadership’s value proposition is evolving. In my recent book, “The Relationship Engine,” I quote Tom Feeney, president and CEO of Safelite AutoGlass, who said, “It is no longer enough to merely direct action; today we must inspire and empower belief which requires us to build more trusting relationships with people than ever before. This applies to leading people within your organization and it applies to becoming a leading brand. Customers no longer buy what you sell; they buy what you stand for. Relevant and sustainable brands are those that build love, loyalty and trusting relationships with their customers and employees.” Wow, this was the first time I
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ever heard a CEO use the word “love” in their description of leadership! Such is the paradigm shift for Safelite’s leaders. Their job descriptions now contain phrases like “Think People First” and “Caring Heart” to describe required characteristics and expected interactions with both associates and customers. To date, this leadership “transformation” is evidenced (quantitatively and subjectively) by their rapid growth and strengthening business results. Safelite’s “relational leaders” strive to become the kind of people that other people enjoy working with and focus on winning every day through the impact they have on other human beings. Then what exactly is a “relational leader”? First, this is not an exclusive club for senior
HUMAN RESOURCES executives. Anyone can be a relational leader, unlike many leadership models that focus mainly on management and highpotential employees. I continue to marvel at the relational leaders I meet at all levels throughout companies and even a few who are not part of organizations at all. Second, a relational leader’s value proposition is to create a superior experience for others as the key driver of business performance. That experience can manifest itself anywhere from working on a corporate strategy all the way down to greeting someone you run into in the company parking lot. Finally, relational leaders “competitor-proof” their organizations and themselves through a consistent, intentional focus on investing in the relational capital—the distinctive value created by people in a business relationship—needed to drive performance in today’s quickly commoditized business environment.
What’s Missing?
So why are leaders missing the relational mark? My experience, through many years of research into business relationships and working with over two hundred fifty companies and organizations, has shown me that there are five identifiable principles that lead to intentional relationship development and, not surprisingly, superior performance. They are at the very heart of the practice of the most successful leaders at all levels in organizations and life. The Five Principles of the Relational Leader are as follows: 1. Display Worthy Intent 2. Care About People’s Goals, Passions, and Struggles 3. Make Every Interaction Matter 4. Value People Before Processes 5. Connect Performance to a Purpose Figure 1 The Five Principles of the Relational Leader Relational Agility These principles form a system of beliefs for high performers that relational leaders follow and apply intentionally. I define this intentionality as the way relational leaders coordinate a principled, purposeful and practical relational approach. This results in a competency that I call relational agility that allows them to bridge the generational gaps that exist today between Boomers, Gen Xers and Millennials; navigate the corporate maze; and collaborate with people to harness their collective talent, thought and effort. Through
my experiences and research, I know they can be learned, practiced and improved, bringing a surprising level of precision to relationships in organizations. This begins with the first principle, known as Display Worthy Intent: putting the other person’s goals and values at the forefront of each business relationship, creating an exceptional experience for others. Relational leaders then apply the remaining principles to create relationships that immunize them against all competitors both within and outside their organizations. Also, this new competency of relational agility allows relational leaders to create/ advance relationships at three defined dimensions based on the goals they are pursuing together: Colleague: relationship of businesspeople who have not worked on common goals previously Professional Peer: relationship of working together as peers despite different roles or
hierarchy in the business relationship Advocate: career-spanning relationship Figure 2, above, provides an illustration of how to apply relational agility to these three dimensions: We all create plans and strategies for many aspects of life: education, careers, building a home, retirement, and even playing games with our children. So why leave the development of important business relationships largely to improvisation or magic, when even magicians have a disciplined process to accomplish their illusions? Relational leaders deliver on the new value proposition for leadership through a strategic, intentional focus on their business relationships using the five principles and the process that I’ve shared in this article. Companies that “invest in relational capital” will be the long-term winners in today’s complex business environment. Everything can be commoditized, digitized or outsourced, except for relationships!
April 2017 | Construction Equipment Distribution | www.cedmag.com | 33
HUMAN RESOURCES
Body Language Communication: Hands Down, the Feet Finish First
By Eliot Hoppe id you know that our brain speaks to our hands more often than to any other body part? This occurs because we constantly gesture with our hands as we communicate. Have you ever caught yourself talking on the telephone and using your hands to emphasize a point or conclude a statement? Of course, we all have. When have you ever given directions to someone without using your hands? Imagine someone telling you, without any expression and in a monotone voice, “Oh yes, go west, down two blocks, until you see a large brick building on the left. Turn right, and then left. You’ll see the hospital straight ahead. Good luck, take care, bye!” It’s nearly impossible to direct someone verbally without reinforcing our message with gestures like pointing or even facing the right direction. In the world of communication, we need to focus intently on decoding the silent messages behind the words. Our body language, however, can communicate as effectively as words – maybe even more than words, some might argue. Imagine giving a gift to someone you care about. As they begin to open the box, you ask them eagerly, “Well . . . do you like it?” And then they roll their eyes and say, “Yes!” What will you believe: what you just saw or what you just heard? Your body movements, facial expressions and gestures either complement or contradict your words. Incongruent behavior is the main reason we sometimes get a negative “gut feeling” about others. To avoid projecting those signals with your hands, here are three communication pitfalls to avoid when interacting with others.
D
No Hand Movement
If you keep your hands glued to your sides or stuffed deep in your pockets, listeners are apt to interpret that you are not interested in or committed to the conversation – or that your nerves are getting the best of you. Instead, use your hands to make purposeful, confident gestures. Try to keep both of your hands above your waistline, between your shoulders, and use them to punctuate important points. Powerful gestures suggest intelligent thought and will give your listeners confidence in your message.
Fidgeting
Not all hand and body movements are good gestures. Jingling coins, tapping your nails on the desk, or popping your knuckles is both annoying and distracting. These fidgeting movements will tell your audience that you are nervous, lacking polish, or outright unprofessional. A little awareness goes a long way in counteracting this type of nervous energy. The next time you catch yourself, make a conscious effort to replace these nervous tics with more controlled and confident gestures.
Excessive Hand Movement
Gestures exude confidence, intelligence, control and competence – unless they are overdone. Using too many gestures can make your message seem contrived or artificial. Use your hands to emphasize key points in your messages, but do not let your gestures overshadow your words. Furthermore, make certain that your gestures match up with your spoken words. When your hand gestures contradict your message, listeners will doubt your sincerity and honesty. Now, let’s not forget about the feet. Unlike the hands, the feet receive the least amount of attention from the brain, generally speaking. But they do receive a lot of attention from the brain if the body is in “fight, flight or freeze” mode when feeling threatened, uncomfortable or anxious. What’s really fascinating is that the feet can reveal interest and disinterest in others. Take, for instance, a conversation between two people who are very interested in each other. Upon observation, you will probably note that their bodies and feet are pointed toward each other, slightly off-set; and if standing, the feet are comfortably shoulder width apart. When people are seated, sometimes you’ll observe an individual with one leg crossed over the other knee with the foot pointed toward the other person. A female will slowly bob her foot from the ankle in an up and down motion or rotate slowly in a circular motion when engaged or interested in the speaker. Men will usually touch the ankle area when interested in the other person. You might observe a display of interest by a subtle unconscious move like bending over to pull up a sock, or slowly touching or rubbing the crossed ankle when seated in a figure four position. Both are unconscious nonverbal indicators of liking and interest. 34 | www.cedmag.com | Construction Equipment Distribution | April 2017
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Of course, there are other nonverbal signs that comprise the cluster of gestures and body movements indicating interest. These include a genuine smile, a head tilt, open posture, nodding, touching, and open wrist displays, to name just a few. So how can you tell when the other person is bored with you or ready to move on? It’s a subtle move where unconsciously the direction of the foot is repositioned to point toward a window, exit or door. This subtle move can reveal disagreement with what is being said, an interest in moving on to another point, or a desire to physically exit and move on. Additional indicators of disinterest include paying attention to the other listeners, smoothing or picking at clothing, and micro facial expressions. “Masked movements” such as looking at a watch can also tip you off. If someone looks at their watch, immediately ask them what time it is. If they have to look at the watch again, you know the first look was an unconscious “masked move” of disinterest. Taking the time to learn how to decode the emotions revealed through body language is a solid investment in yourself and your communication skills. Always remember to pay close attention to the hands and feet of the person you are communicating with, because their actions may reveal much more than words ever can. ELIOT HOPPE teaches how to decode buying signals, communicate with ease and influence without words. Eliot has trained internationally and his message is clear - Influence includes verbal and non verbal language and whether we are selling our ideas, thoughts, services or products, everyone needs to be persuasively irresistible in their communication, to remain collaborative and competitive in today’s marketplace. Reach him at eliot@paramountlearning.com.
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3/1/2017 11:18:46 AM
HUMAN RESOURCES
Employment Law: Hidden Threats Within the Dealership
By Maureen A. Murphy The employment law landscape continued to change during 2016, and many interesting developments lie ahead for 2017
Sick Leave
Several states and local jurisdictions are enacting laws granting employees unpaid sick leave, or requiring employers to expand existing sick leave policies to additional family members. In Illinois, employers must now allow employees to use personal sick leave benefits for absences due to an illness, injury, or medical appointment of the employee’s child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent. Other states and localities – California, Connecticut, Massachusetts, Oregon and Washington D.C. – have passed laws requiring employers to provide minimum amounts of paid sick leave to employees. The following cities also have paid sick leave laws: Chicago, Los Angeles, Minneapolis, New York, Philadelphia, Pittsburgh, San Diego, San Francisco and Seattle.
Medical Marijuana
Marijuana is still outlawed at the federal level, but states have continued to pass laws allowing for both medical and recreational use. This is challenging for employers, as it is unclear whether, and to what extent, employees have protections under the Family Medical Leave Act (FMLA) or the Americans with Disabilities Act (ADA). Generally, an employer may enforce its drug testing policies and take adverse action against an employee who tests positive. However, employers should do so with caution. The following states passed ballot measures in 2016 in favor of medical marijuana: Arkansas, Florida, North Dakota, Ohio and Pennsylvania. Louisiana no longer requires a prescription for medical marijuana, but requires only that medical marijuana be recommended by a physician.
Sexual Orientation and Transgender Legal Issues
Sexual orientation continues to be a hotly contested issue. In Hively v. Ivy Tech Community College, a college instructor alleged she was denied full-time employment six different times and was eventually terminated because she is a lesbian. The issue here 36 | www.cedmag.com | Construction Equipment Distribution | April 2017
was whether she is protected under Title VII’s meaning of “sex” in the context of discrimination based on sexual orientation. An appellate court decision is pending. Legal issues specific to transgender individuals are also drawing great attention. In March 2016, the state of North Carolina made national headlines when it passed a “bathroom law.” The law regulates access to public facilities and requires that individuals use the facilities that correspond to the sex identified on their birth certificates. This law has been temporarily halted by the courts, and it is unclear at this point how the law will develop. However, there is some indication that courts are closer to recognizing gender identity as a protected status.
“Ban the Box” Laws
Many states have adopted legislation that precludes employers from asking about an applicant’s criminal history on employment applications. Employers should not ask any questions about a person’s criminal history until after an offer of employment is made. Requiring that a person successfully pass a background investigation as a contingency for an offer of employment is an acceptable practice.
Wage and Hour Issues
The battle for determining whether employees are exempt or nonexempt according to the Fair Labor Standards Act is playing out in the auto dealership context. In Encino Motorcars, LLC v. Navarro, et al, 136 S. Ct. 2117 (2016), the case involved whether service advisors at an auto dealership were eligible for overtime. The dealership argued that service advisors were exempt under the FLSA’s “salesman” exemption. The service advisors argued that the Department of Labor’s (DOL) 2011 guidance that service advisors were not exempt meant that they were entitled to overtime. The Supreme Court decided that the DOL’s guidelines should not get deferential treatment by the courts, and remanded the case for reconsideration to the lower courts. As you can see, the employment law landscape continues to change at a rapid pace, and there does not appear to be any slowing down of proposed legislation. If you are concerned about your company’s employment practices in light of the changing laws, it is best to reach out to counsel.
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3/13/2017 1:08:49 PM
HUMAN RESOURCES
Finance for the HR Professional By Mark Robilliard erhaps one of the most famous adages in business is “people are our greatest asset.” The saying takes on special weight in the construction equipment industry. In our industry more than most, the assets are big and impressive and chunky and indisputable. And yet even in the face of the most impressive yellow beasts, all those diggers and graders amount to nothing without the people in the equipment dealerships: selling them, repairing them and financing them. Yes, people still top machines as assets. This makes HR managers the custodians of the greatest assets in the business. The equipment on the front yard of the business may be worth tens and hundreds of thousands, but without the right staff, people policies and practices in place, the long-term future of the business will amount to nothing. Equipment dealerships, like many other businesses, are becoming more and more human-capital intensive. By this we mean the value that people can add (or destroy) in the business, because of their skills, is growing. Take engine repair. As engines and repair equipment have become increasingly computerized, taking care of them has become an increasingly skill-intensive and higher-order task involving computer analysis and diagnosis. Since HR managers are central to the vitality of a business, it’s essential that they are also at the heart of its financial conversations. The HR manager must· Understand what the CFO and CEO want to achieve financially. He or she must understand what determines profit, what margins are being achieved, what expenses are being incurred and curtailed, what returns are being generated for the owners, and so on. ▶ Consider financial implications when managing the HR function. It’s no good meeting a head count reduction target if all the eliminated positions are low-cost roles, which only pushes up the average cost per employee. ▶ Be comfortable engaging with the other business functions when it comes to finances. They may need help structuring sales commissions appropriately together with the sales team. They may need to meet with the finance team to assist with budgeting. They may need to provide HR input to the operations team about job allocation or overtime rates. This last point is especially important. When it comes to finances, effective communication and engagement is essential. Everyone in the business must be able to communicate effectively about finances and understand how the finances of the business work, at least enough to know the impact of their own role on profits. As an HR professional, you should take the lead in modeling powerful financial communication. This
P
doesn’t mean that you need to become a financial expert. You only have to know enough to be able to ask pertinent questions and understand the answers. The good news about improving the financial communication in your business is that doing so is much easier than you think. When people don’t understand what an accountant is saying, it’s mostly because they don’t understand a few key words that accountants use. You’d be surprised; even accountants themselves don’t realize how loosely they use the key terms. There are just five main terms that you need to fully understand. Using a new tool called the BaSIS Framework, we’ll get you clear on them right here. ▶ Assets are the valuable things the business has. Nothing is valuable except assets. Not even revenue. ▶ Liabilities are obligations to lenders. They are not “money owed.” They are measured in money terms, but they aren’t money. You can’t see an obligation like you can see money. ▶ Equity is the obligation to the owners. The business wants to owe the owners more. That’s why it exists. If you like, equity is the “good obligation.” ▶ Revenue is a verb concept, not a noun thing. Revenue isn’t money. Confusing revenue and money is the biggest misunderstanding in financial conversations. Revenue is what the business does to get money. Revenue is value-generating activity. In your case, it would be sales, rental revenue, financing fees and the like. ▶ Conversely, expenses are value-sacrificing activities. When the value of your inventory asset is depleted because of sales activity, that loss in value is expensed. There are two key financial reports that you must understand: the balance sheet and the income statement. The balance sheet tells you what the business has and to whom it is obligated for those things. (Everything is owed to either lenders or the owners.) The income statement tells you how the business performed: how much value it generated and how much it sacrificed while attempting to grow the assets to benefit the owners. And that’s it, there’s nothing else except those two reports: what you have and how you did. Having said that financial communication is one of your key leadership roles as an HR professional, here’s your homework: take the diagram and sit down with someone from your finance team and talk about what each element looks like and how big it is in your business. You’ll be building bridges within your organization like never before.
MARK ROBILLIARD is the Co-founder and CEO Americas of Color Accounting International. The company runs workshops that improve employee’s business savvy, for greater engagement and profitability. More information at ColorAccounting.com. 38 | www.cedmag.com | Construction Equipment Distribution | April 2017
Business Etquette 101: Be In The Know-How By Joe Boes In my session, The Polished Professional, presented at the AED Summit earlier this year, we discussed the value of soft skills and how they impact one’s professionalism. Etiquette sometimes gets a bad rap, as it can sound stodgy and pretentious. Rules that are socially or morally prescribed seem intrusive to our sense of individuality and freedom. However, the concept of etiquette is still essential, especially in the business world. Etiquette must be learned – it is not something one knows instinctively. According to a study conducted by the Stanford Research Institute, Harvard University and the Carnegie Foundation, 85 percent of your professional success is attributed to your social skills, or what I refer to as “polish,” and only 15 percent to your technical knowledge. When an employer/ recruiter compares two equally qualified candidates, the one with skills of polish will have a competitive advantage. Since polish is so important, how much time have you invested in the understanding of this skill? Hopefully your journey has exposed you this expertise. The problem is, many of us have never heard of or considered it, and when we enter the professional world, we are expected not only to know of this skill, but to perform well according to its standards. We touched on a variety of areas in my presentation: Emails: Make them easy to read using bullets, links, etc.; use “reply all” to facilitate communication; make the subject line descriptive and meaningful; use keywords to make it easier to search later; and maintain threads to keep like info together. Cell phones: Do not talk loudly in public; don’t answer your phone during an important meeting or interview; and do set your phone on “silent” when in public, such as in a restaurant or movie. Business meetings: Mingle with others before the meeting starts; be on time; sit appropriately; come prepared; do not have your phone out; dress appropriately. But the area in which I have particular expertise is dining. An article in the Chicago Tribune entitled “Hire Ground” stated that “Corporations are calling in etiquette experts to polish new recruits and senior managers
alike to better reflect a proper business image while at-table.” This is an issue because today a large amount of business is conducted out of the office, and meetings are often held while dining. Are you and your company losing business because of less-than-polished behavior? The answer could be yes, and you may not realize it. As the saying goes, “You don’t know what you don’t know.” “A meal is not about the value of the food, but about the value of the business that is won or lost over a meal. Even in today’s relaxed
corporate environment, poor manners are never looked upon favorably. People do notice and we speak loudly about ourselves as we demonstrate to others our professionalism . . . or lack of it.” Most rules of etiquette involve common sense and consideration of other people. Emily Post, whose name is synonymous with proper etiquette and manners, once stated, “Manners are a sensitive awareness of the feeling of others. If you have that awareness, you have good manners, no matter what fork you use.”
JOE BOES has worked at Indiana University for 25 years, with 12 years at the Kelley School of Business and currently as Assoc. Director for Student Administration at the School of Optometry. It was while at the Kelley School that he became interested in etiquette, particularly dining etiquette. In 2010 he completed The Etiquette Institute’s course of study in Business and Social Etiquette in St. Louis. Joe has conducted over 200 dining etiquette presentations and believes dining etiquette enhances one’s professionalism and is a “soft skill” that can be a powerful tool both professionally and personally. You are welcome to contact Joe at jboes@indiana.edu. April 2017 | Construction Equipment Distribution | www.cedmag.com | 39
Everything Starts and Stops With
LEADERSHIP I
n far too many businesses, leadership has fallen by the By wayside. Fierce competition has caused most equipment Christine Corelli dealers to have little, if any, time to think about their ability to lead. Rarely do they stop and consider how much more productive and profitable they could be if they paid more attention to this critical area of business. Progressive dealers, however, recognize that success starts and stops with an organization’s leadership. And any business is as strong, or as weak, as the leader at the helm of their workforce. There are five essential facets of dynamic leadership for business success. 1. Create the vision for the business and a smart competitive strategy to achieve goals. 2. Communicate that vision, the competitive strategy, and provide direction to the company. 3. Implement changes necessary to create and sustain success. 4. Sustain the momentum through employee motivation, reward, and recognition. 5. Execute competitive strategy.
Which is most difficult? Creating a vision is not that difficult. Creating a smart strategy is not so easy. Communicating can always be improved upon, and implementing change can be a real challenge. Interestingly, most business owners agree that the most difficult role of the leader is #4 – employee motivation. Dynamic leaders run their companies on a basic business fundamental that many seem to forget: Employee performance is the key to success and long-term business growth. Within the motivated employee are ideas, solutions to problems, and the ability to help your dealership develop a reputation for customer service excellence.
Employee Motivation
In an ideal world, every person you hire is self-motivated. The reality is it’s always up to the leaders in an organization to keep employees motivated for high performance. This is not an easy task, and much depends on how employees feel about their boss. The Boss vs the Manager vs a Dynamic Leader: Although these three roles are all supervisory in nature, they are distinctly different. Which one are you?
Boss
Simply put, a boss is someone who owns the company or someone with a title who tells people what to do. The boss passes out orders as easily as salespeople pass out business cards. “Get that tool!” “Put those parts away!” “Get those 40 | www.cedmag.com | Construction Equipment Distribution | April 2017
sales!” This approach is not very effective in today’s world. It’s considered outdated. A boss is simply that. A boss. Interestingly, the number one cause of job dissatisfaction and demotivated employees is working for a bad one! Bad bosses micromanage people, show favoritism, talk down to their staff and shoot down ideas. They are closed-minded and their doors are closed to new ideas and new ways of doing things. They don’t care about people, they only act as if they care, especially when executives visit their branch. Their employees see right through them. There should be a policy of “Zero Tolerance for Bad Bosses” in every company.
Manager
A manager directs, decides and interacts with his or her team to get things done.
Dynamic Leader
If you consider every great leader both past and present, all have two things in common: 1) They not only have a vision of where they want their business to go, but 2) they have the ability to influence others to go with them. They eloquently communicate their vision and have an innate ability to motivate, inspire and influence their team to do what needs to be done – and to do it well. Smart business owners display dynamic leadership and insist their GMs, branch managers, and parts and service managers do the same. By way of example, a well-known dealer and AED member who shall remain anonymous made this comment to an industry consultant and the author of this article. “If only we could get every branch to be as profitable and run as smoothly as this one.” The consultant stated, “It must be the branch manager! Show me a great store, and I’ll show you a great leader.” She was right. As she got to know the team, she learned that the branch manager was a dynamic leader who had an innate ability to motivate his entire team to provide the highest level of service – not only to customers, but to each other, internally. He became the role model for all branch managers.
Respect
Great leaders recognize that just because they have a title, they don’t automatically get respect. They have to earn it.
Values
“In the eyes of your employees and your customers, the extent to which you practice your values can be closely linked with their level of employee loyalty and your level of customer loyalty. They will infer what you value from your behavior
and your words. Excellent leaders actively demonstrate and communicate these values on a day-to-day basis.” Values are the beliefs and principles that guide individual behavior and form the foundation upon which an organization and all of its leaders operate. These play a strong role in leading by example. Honesty: The quality of showing truth in communication. Integrity: The soundness of moral character. Professionalism: Thinking and acting with the highest level of professionalism Ethics: Having and adhering to a set of principles of right and moral conduct. Respect: The quality of showing deferential regard for others in all situations. Disrespect is not tolerated. Excellence: Being the best at what you do. “Good enough” doesn’t exist. Teamwork: Being part of a team and not always the team leader. Teamwork is a strong part of their organization. Customer Focused: Focusing on keeping customers happy by keeping employees happy and committed to do so. Accountability: Holding themselves accountable to practice dynamic leadership and establishing accountability throughout their organization. The leaders and their staff know specifically what they should be accountable for. Health and Safety Taking the health and safety of employees and customers seriously. Family: Treating employees and customers as if they were family and allowing flexibility for employees to attend family functions. Continuous Improvement: Continuously improving in their own leadership performance and instilling continuous improvement in their company. Many dynamic leaders begin every meeting with a review of their core values. Some even ask employees to relate specifically how every value should be demonstrated. Some responses are, “Never stretch the truth or tell a lie to make a sale.” “Tell the customer the truth.” “Respect company property.” “Demonstrate safety by locking out and tagging out unsafe equipment.” What are your company’s core values, and how, specifically, should your people demonstrate them?
to have charisma. But they do have to possess admirable character traits. As you review the following list, think about which traits would most influence you to follow someone else’s lead, and then rate yourself: • Appreciative • Supportive • Caring• Creative• Disciplined • Fair • Hardworking • Humble • Inspiring• Demonstrating core values • Intelligent• Loyal• Passionate • Supportive• TrustworthySurveys have revealed that the three most important characteristics desired in a leader are 1) TRUSTWORTHY – They want to feel they can trust their leader, 2) SUPPORTIVE – They want to be supported by their leader, and 3) DEMONSTRATING CORE VALUES. The more of these traits you possess and demonstrate, the more likely you are to earn the respect of your team. If you win the respect of your team, they will not only want to follow your lead, but will also want to perform well for you. It is interesting to observe that leaders have different styles. As you review these six leadership styles, consider which best describes your own. Transformational leaders are capable of transforming entire organizations to assist in creating high performance and profits. Some companies call in a turnaround management specialist or industry consultant for help in this area, or they hire someone with a proven track record to transform their entire culture. Some are so dynamic and influential that they transform and reinvent the company and culture themselves.
Characteristics of Dynamic Leaders
Leaders who possess this style can also be described as charismatic bosses, but they are not very effective in today’s business environment. Hopefully, you do not come across as a leader
When thinking of leadership characteristics, we often think of successful people with charismatic qualities. Great leaders do not have
Creative, Experimental Risk Takers
This type of leader is a risk taker. Dealers who acquire or merge with other dealerships several times often have this style. They diversify their business and believe that risk taking, supported by meticulous planning, can strengthen their position in the marketplace. There are a multitude of leaders in the equipment distribution business who have made the decision to merge, buy other dealerships and expand their offerings.
Charismatic, Domineering Battlers
with this style. Charisma is cool, but not if you do all the talking at meetings and argue with your team.
Relentless Pursuers of Performance
Relentless pursuers of performance settle for nothing less than peak performance. They are driven to meet their goals, drive their people hard, and are competitive by nature. They cannot tolerate an average performer. We get it. They want to succeed. Sometimes they drive their people too hard and experience high turnover.
Servant Leaders
Leaders with this style believe that, after strategy, their main role is to serve their employees and help them to excel. Leaders who can be described as servant leaders hire only the best performers and provide them with the education, training, mentoring, coaching and tools they need to succeed. They work alongside them.
Situational Leaders
The Hersey-Blanchard Situational Leadership Theory is based on the belief that the best leaders are those who adapt their style to the individual, group or situation to get the results they want. Leaders with this style are in tune with what motivates and inspires each individual, understand their issues or challenges, and lead accordingly. Which Leadership Style Is Best? The answer may surprise you. Leadership style doesn’t matter. What matters most is the character of the individual! If the leader is respected and admired, people perform for them. In fact, The best leaders make people feel they are working with them and not for them.They are fair and supportive of their team. They care about their employees as much as they care about their best customers. Asking questions and listening to employees is how they keep them involved and engaged. Dynamic leadership and motivating employees requires a great deal more. As you interact with your employees, remember: Dynamic leaders motivate and inspire employees to follow their lead and deliver their best performance. They demand that other leaders in their company practice dynamic leadership, which ultimately improves their bottom line. For now, ask yourself this question: “Would you want to work for you?”
CHRISTINE CORELLI (www.christinespeaks.com) is the author of six business books. She is a conference speaker and workshop facilitator who has worked with numerous equipment manufacturers and dealers and has been a popular speaker at numerous AED events. Reach her at 847-477-7376. April 2017 | Construction Equipment Distribution | www.cedmag.com | 41
>> PROBLEM SOLVED
TROY OTTMER
Customer Perception: Redefining the Customer Experience Changing customers’ perception of your organization will not be possible if you don’t give them a positive customer experience.
As any business leader knows, in order to grow and prosper, in good times or bad, you must have a solid customer base, and you must be adding to this base every day. You will also need a strong, consistent, stable work force to maintain and grow your customer base. Defining the customer experience is a neverending task that every business leader struggles with. Some companies do this very well. For example, automotive dealers have truly redefined the customer experience, from selling the vehicle on the front end to providing service on the back end. Now, there is not just one single approach to this concept. But taking a hard look at how your competition outmaneuvers you and wins the deal is certainly a great place to start. Understanding, developing, and then implementing your improved customer experience plan is key to capturing new customers from the competition, not to mention keeping your current customers from going to the competition. What is the customer’s perception of your organization? I assure you, asking this question is hard to do. Why? Simple – the answer to the question may be hard to hear or accept. Let’s face it, it’s human nature to feel or think our customers are pleased with their interactions with our business. This is especially true if our sales revenue and/or bottom line financial performance is moving in a positive direction. Remember the old saying “You can’t see the forest for the trees”? Are your customers happy with your organization? Do they have a positive perception through their interactions with your employees or business policies? What happens when your sales revenue starts to slip, and your bottom line performance falls off? By the time you ask the question, it may be too late to react to your customers’ defection. Understanding your customer buying habits is very important, as is understanding how your competition goes to market with their products or services. So how do you improve your customers’ experiences, and ultimately their perception of your business? It’s simple, you start asking the hard questions, and you are open to and objective about the responses you get. Another old saying, “The
customer is always right,” really speaks volumes about a customer’s perception, or rather their decision to buy from you. Look, we all know the customer is not always right. Likewise, we, the business group, are not always right either. So how do we prevent these two scenarios or differences of opinion from creating what very well may turn into a negative perception for our customer? Customers must feel that they have the upper hand in the transaction. While price is important, it’s not the only driver to securing or retaining a customer. The customer’s relationship with your organization is extremely important as well. Often, this relationship resides with one or two people within the organization. This in itself is not a bad thing. However, are the details of this relationship and the expectations for the customer’s needs relayed to the rest of the organization? I would venture to say it’s not. I’ve written other articles about owning the relationship, and in order for this to happen, all of your employees must be aware of your customers’ needs as they pertain to their respective job function. Another area for improving your customers’ perception would be to review how your invoices to them are structured. Customers may give you a good rating on your sales process, but the odds are that they are less than pleased with the invoices they receive for rentals, parts or services rendered. Problem areas for customers would be charges for total labor, freight, hauling, shop supplies, environmental fees and the most painful one: charges not covered by warranty. These items can lead to a major disconnect with your customer, and this disconnect turns into a negative perception of your organization. So how do you correct their perception and improve their experience? You must review your processes as they pertain to billing with all your departments, and the education of your employees on these procedures is key as well. Improving your employees’ understanding of good business practices, combined with real world customer perception examples, is also important. Changing customers’ perception of your organization will not be possible if you don’t give them a positive customer experience.
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. 42 | www.cedmag.com | Construction Equipment Distribution | April 2017
>> TAKING INVENTORY
REX COLLINS
Making Your Annual Parts Inventory More Efficient and Less Painful
Most dealers conduct an inventory annually, though some employ an alternative approach called cycle counts, which involves counting items in segments; for example, dividing one annual inventory into 12 monthly counts.
Taking a physical inventory of dealership parts can be expensive. And, it is safe to say, not one of the dealership’s employees looks forward to this annual event. A physical parts inventory is, however, a necessary process, critical to the profitability of your parts department. So let’s look at how you can make the process more efficient and less painful.
Why take a physical parts inventory?
A physical parts inventory involves manually counting and accounting for all items in the parts department, every item on every shelf, every unit in every bin. Most dealers conduct an inventory annually, though some employ an alternative approach called cycle counts, which involves counting items in segments; for example, dividing one annual inventory into 12 monthly counts. Why take inventory? If you ask your office manager or controller, they might say because your CPA requires it. But there are much better reasons to take an annual inventory and ensure that it is accurate. Here are just three: 1. Accurate counts improve customer satisfaction. The purpose of an annual physical inventory is to verify that the quantity of each part on hand matches the quantity listed in your DMS. If your personnel can trust the accuracy of your DMS, they’ll be able to fulfill customers’ requests more reliably and more efficiently, then handle more orders and increase sales. 2. Accurate counts are required to manage inventory and place stock orders with manufacturers. DMS reports offer a variety of valuable information including what’s in stock, what’s likely to be sold and what you need to order. But the information is only valuable if your DMS records reflect actual parts counts. If not, you can easily wind up with the wrong quantities of the wrong products. 3. Inaccurate counts indicate loose internal controls, which can result in billing errors for parts as well as open your doors to theft.
How can you ensure an efficient, accurate inventory?
Most important to an efficient, accurate
inventory is planning – and planning ahead. Whether you conduct inventory in-house or hire an outside service, start planning 90 to 120 days before the inventory date. Other recommendations: 1. Avoid busy days or times of year like holidays, so whoever is taking inventory does not feel rushed or become distracted. 2. If you operate multiple locations, consider counting each on a different date. 3. Assign two people to a count team, one to count and the other to record. The more experienced team member is the best one to do the counting, since he or she will have greater familiarity with parts and part numbers. 4. Have required materials on hand, like clipboards, pencils and enough computer paper to run the many reports. 5. Clean the areas to be inventoried so the process is more efficient. 6. Choose from three inventory methods: a. Bar code readers, like scanning devices in grocery stores, are gaining popularity. They are easy, quick and increase accuracy by eliminating manual entries. They might also eliminate the need to create inventory teams, though a team is still advisable, especially if you suspect theft. b. Count cards are a low-tech option. Cards placed on each shelf reflecting the items designated for that shelf are filled out with quantities for each item. Blank cards are used to account for misplaced items, either ones that should be there and aren’t, or ones that shouldn’t be but are. c. Count sheets are the most popularly employed inventory method. Each sheet lists items by bin with a write-in area at the bottom of the sheet to add items not on the list but found in that particular bin. Having clear instructions for writing in parts will ensure that the right parts wind up in the right bins. We have compiled a list of things important to remember in preparing for and executing your annual parts physical inventory. Please contact us for a copy.
REX COLLINS is a Principal at HBK CPAs and Consultants. He directs HBK’s National Dealership Industry Group, which provides tax, accounting, transaction and operational consulting exclusively to dealers. Rex can be reached at 317-504-7900 or at rcollins@hbkcpa.com. April 2017 | Construction Equipment Distribution | www.cedmag.com | 43
Get Smart
about your email marketing By Brian Shanahan While it is far from the trendiest marketing channel, email remains one of the most effective channels available to equipment dealers. The problem is that many dealers are not regularly reviewing their process to make sure it’s optimized for today’s best practices. This article is intended to share a few of the most important best practices that will help you assess and improve the state of your email marketing channel. Whether your goal is to generate leads, nurture prospects, build loyalty, or promote an event, email marketing is one of the most cost-effective tools for keeping your brand top of mind and driving positive results for your business. Fact: For every $1 spent on email marketing, the average return is over $38 (Source: DMA).
recipient, you are likely losing readers and driving them to unsubscribe.
Mobile Friendly
Many marketers make the mistake of assuming that their recipients are accessing their emails using a laptop or desktop computer. The truth is that 67 percent of consumers check their email using their smartphones. Furthermore, studies have shown that almost half of all emails that aren’t mobile friendly get deleted or never read.
and get your emails opened.
Calls to Action
All emails should have a specific purpose that can be measured with analytics. It does not matter if you can write like Mark Twain, if your call to action is not clear and concise, you will be disappointed with your results. No matter what action you want readers to take, tell them how to take action and make it obvious.
Track Results
Most modern email marketing
Provide Value
One of the first rules of marketing is creating value for your audience. When someone subscribes to your email list, it means you’ve gained their attention and trust. Make sure you respond by providing emails that deliver value in helping them solve their most pressing problems and challenges.
Segmentation
Email marketing is never a onesize-fits-all endeavor. Whether you segment by industry, equipment type, equipment age, or buying stage, segmentation is critical to your success. If your message is not relevant to each
Permission-Based
Make sure your email collection process clearly defines and documents the permission from each subscriber. Remember that any list from a third-party source, no matter how reputable, does not likely include permission to send them emails. Plus, studies show that a purchased email list is almost always useless, so a permission-based process is essential to your long-term reputation and ROI.
Send Frequency
From the onset, let your subscribers know what to expect in terms of send frequency, and be consistent. In some cases, at sign-up, it’s ideal to ask for their preferences on send frequency. Email subscribers are loyal to brands that consistently provide value and create engaging email content. If they think you are sending too often or your content is not helpful, they’ll be quick to unsubscribe or just ignore future emails!
Unsubscribe Options
Subject Lines
A good subject line gets your email opened, while a bad one gets it deleted. Regardless of the reader, they will first notice your subject line. What’s the point in writing a great email when your subject line is not convincing enough to get the email opened? Take the time to compose and test subject lines that grab attention, are not spammy,
platforms provide tools for tracking and reporting. At a bare minimum, your team should be monitoring the following for each email campaign: 1) Open rate; 2) Click rate; 3) Bounce rate; 4) Unsubscribe rate; 5) Complaint rate. Measuring and comparing campaigns will help you identify practices that drive continuous improvement and better results.
Like it or not, the unsubscribe button is a marketer’s best friend. Why? When a recipient clicks to unsubscribe, they are telling you that they no longer see value in your emails. High unsubscribe rates should drive a closer look at your content and segmentation. Trust me, by no means are these the only factors vital to email marketing success. A successful email marketing program takes experience and time to plan, implement, and build into an effective marketing channel.
BRIAN SHANAHAN is president of Shanahan Design Inc., a marketing and web development agency based in San Mateo, Calif. With over 20 years’ experience, Shanahan Design helps manufacturers, distributors and dealers evaluate and set strategic plans to grow sales. Services include growth strategy, lead generation, web development, content marketing, and consulting. To learn more visit www.shanahan-design.com or call 650-393-5966. 44 | www.cedmag.com | Construction Equipment Distribution | April 2017
>> EQUIPMENTWATCH
Number of Participating Rental Companies: 460 Number of Equipment Types Covered: 214 Total number of rates collected: 600,849
Fourth Quarter in Review: The 4th Quarter of 2016 was about even in terms of rates increasing or decreasing across heavy equipment rental markets. Weekly retail rental rates in the 4th quarter increased in six of the top ten equipment types as compared to Q3. Over the last three months of 2016, I.C. Pneumatic Tire Lift Trucks had the largest increase among the ten equipment types displayed below, and Standard Crawler Dozers had the largest decrease. Q4 also showed evidence that monthly rates are dropping more than the daily and weekly rates, which was not the case in 2016Q3’s update. The two smallest equipment types, Skid Steer Loaders and Electric Self Propelled Scissor Lifts, remained relatively even over the past quarter. The decrease across the board of the four largest equipment types could mean that there was not as much need for this equipment in the 4th quarter of 2016.
Daily Equipment Type Standard Crawler Dozers Crawler Mounted Hydraulic Excavators 4-Wd Articulated Wheel Loaders Single Drum Vibratory Compactors Telescoping Boom Rough Terrain Lift Trucks (Telehandlers) Compact Track Loaders Crawler Mounted Compact Excavators I.C. Pneumatic Tire Lift Trucks Skid Steer Loaders Electric Self Propelled Scissor Lifts
Weekly
Average Change from Previous Quarter
Average Rental Rate
-19.29%
$2,619
$771
-4.35%
$671 $437
Monthly
Average Change from Previous Quarter
Average Rental Rate
-14.23%
$6,414
$2,315
-8.26%
$6,226
-12.58%
-9.61% -1.88%
$2,108 $1,385
-7.25% -2.37%
$5,591 $3,622
-11.38% -7.31%
$554
13.73%
$1,464
4.20%
$3,566
-0.13%
$323
5.15%
$1,003
3.67%
$2,554
-1.12%
$292
7.13%
$920
2.80%
$2,306
-2.63%
$342 $257 $194
15.92% 2.38% 6.73%
$983 $792 $434
10.58% 0.65% 0.73%
$2,337 $1,985 $960
5.15% -4.05% -1.73%
Average Rental Rate $845
Average Change from Previous Quarter
-24.22%
Quarterly change in rates for the top ten subtypes by volume. These retail rental rates are an overall average by subtype and are derived from average rates advertised by distributors throughout the United States and Canada. All rates included were either publically advertised online or obtained through exclusive rental house partnerships.
aboutRate 7% Intelligence and 8% from thewww.EquipmentWatch.com 3rd quarter. Single Drum Vibratory EquipmentWatch Rental Update | 2016-Q4 in Review | Quarterly Rental Average Weekly Rate Trends The average weekly rental rate for the top five small to medium-sized equipment types over the past four quarters increased, with I.C. Pneumatic Tire Lift Trucks once again having the largest increase. These forklifts have been the only equipment type that has had a constant growth over the past year; we can speculate that either demand for this item has been growing for some time, or that larger forklifts are becoming more widely available. Compact Track Loaders remained the highest weekly rate out of the five sub types in the graph, while I.C. Pneumatic Tire Lift Trucks moved into the second highest weekly rate in the 4th quarter, surpassing Crawler Mounted Compact Excavators. Only one of the five largest equipment types saw an increase over the 4th quarter, with Telescoping Boom Rough Terrain Lift Trucks (Telehandlers) increasing by about 4%. Standard Crawler Dozers had the largest decrease, continuing its trend from the previous quarter with a 14% decrease in the 4th quarter. Crawler Mounted Hydraulic Excavators and 4-Wd Articulated Wheel Loaders also had somewhat large decreases, dropping by
Compactors remained relatively flat as compared to Q3.
Regional Variance
Region D was the closest to the overall average national rate, with a variance of only -0.09%, which was very close to the 3rd quarter’s rental update for this region. Region K once again had the highest average weekly rental rates of any region, and Region N once again had the lowest average weekly rental rates. There were only five regions with an average weekly rate below the national average and nine regions being above the national average.
Percent Change in Regional Variance from Q3 to Q4
The majority of regions saw an increase in the average weekly rate from Q3 to Q4, with only five regions dropping. Region M had the largest decrease of any region, dropping by about 18%, while Region B had the greatest increase, almost 18%. There were more regions that saw increases in regional variance than in the last update, with nine regions increasing. April 2017 | Construction Equipment Distribution | www.cedmag.com | 45
International USA excited to be a part of a growing industry
By Megan Mattingly-Arthur rom its humble beginnings in a small workshop in Northern Ireland more than 40 years ago, Rapid International (originally founded under the name Craigavon Engineering) has gone on to become a leading manufacturer of mixing equipment for civil, paving, and environmental contractors. The company has distributors all over the world, including the Commerce City, Colo.based Rapid International USA, Inc., which handles distribution in all of North, Central and South America. Rapid International USA, Inc. – itself founded 21 years ago – has done particularly well in recent years, thanks to growing market demand and an expanding product portfolio of high-performance equipment, such as the Rapidmix 400 CW Continuous Weigh continuous mixing plant. “I am proud to say we offer Fully Mobile, Fully Weighed, Fully Self-Contained highoutput twin-shaft continuous mixing equipment, with wi-fi capabilities, and a Rapid team of top-notch technicians, all of which ensure less downtime as one of our cost-effective means for civil, environmental and paving contractors”, said Andie Vandenhul, marketing and sales executive at Rapid International USA, Inc. A few of the benefits of Rapidmix Continuous Mixing plants are: ▶ Rapidmix can be erected in merely a few hours, without cranes. ▶ Savings are estimated upwards of tens of thousands of dollars because of this cost-efficient set up. “We offer the highest in mixer intensity among our competitors, which enables high-output and volume capability," Andie said. ▶ Additionally, Wi-Fi capability not only
F
allows customers to control and check on the plant’s production from anywhere but allows Rapid Techs the ability to log in for troubleshooting purposes. Finally, Andie said, “We provide responsive service that results in the reliability operators seek at a moment’s notice.” Well-performing equipment with built-in
customers’ shoes and answered their frustrations with Rapidmix to better serve the industry.” Rapid International USA, Inc. recently joined AED in celebration of several years of steady company growth. According to Andie, the company is pleased to support an organization that provides so much support to the industry. “We have acquired substantial growth and see that trend moving forward; supporting the industry is a valuable asset,” she said. "(AED has) a respectable and dominant position in the industry, and great strides are being made to strengthen it. We wanted to support the equipment industry and organizations that are ultimately valuable to everyone, even the end user who benefits from such economic growth, so we decided to join AED. The Rapidmix 400CW twin-shaft continuous mixing plant is also “As the main distributor in the Continuous Weigh, designed to be totally mobile and completely United States and internationally, self-contained with its own power source. It is also completely we strive to improve our team. self erecting, using the hydraulic system to change from its Many courses enable us to better travel mode into a fully operational plant in a few hours. prepare and manage our dealers. Other courses give us an inside perspective convenience features are one of the many advantages that have kept Rapid International on how to manage our distributorship to enable continued growth. This information USA, Inc. going strong through the years. isn’t just helpful to people like me, who The company offers parts and service have only been in the industry for the past support and boasts fully integrated work two years. Even if people have been in the teams comprised of engineers, operators, industry for 40 years, things have changed. technicians, and mechanics who understand (Professional education) is important to the the challenges their clients face. company,” she said. When asked what she most respects about To learn more about Rapid International Rapid, Andie said, “With mud on their boots USA, Inc.’s continuous mixing equipment, and about to throw their hats in at a less-thancall 303-853-0068 or visit www.rapidintl.com. par mixer, our Rapidmix engineers took it upon themselves to fabricate the Rapidmix, Rapid International USA is also on bringing the mixing industry the Rolls-Royce Facebook, Twitter @rapidintl, Google+, and line of mixing models. They have walked in our LinkedIn.
46 | www.cedmag.com | Construction Equipment Distribution | April 2017
advertisers’ index CDK Global......................................... Back cover Cemen Tech, Inc..............................................25 e-Emphasys Technologies Inc............................1 China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME)............................................................6 Global Sales Group / EZ Oil Drain......................9 PwC/Accruit.....................................................47 Screen Machine Industries LLC........................35 Sentry Insurance Company....... Inside back cover XAPT Corporation.................... Inside front cover
Continued from Page 31 Don’t stop there
Graduating from college and starting a new job often brings with it the anxiety of paying off any college loans that have been incurred, learning a new job, finding a place to live and enjoying life outside the workplace. Over the years, I’ve heard from a number of employers who have successfully developed employee-retention plans that address many, if not all, of these concerns. Your employees want to be fulfilled, both on and off the job, and if they are, the chances of retaining them should increase significantly. The relationship shouldn’t stop once the technicians are hired. Retention of good employees is as important as hiring. I encourage you to invest in your employees, both personally and professionally. Developing good onboarding and mentoring programs is essential to ensure that employees start off well and become comfortable with their work environment and their colleagues. Encourage good communication within your work teams to help the newly hired technician feel a sense of belonging. And help them grow through professional development and additional work opportunities and challenges to keep them engaged in a lifelong learning process. All of these efforts will help to instill a sense of loyalty to your company and pride in their work. While there’s no magic formula for recruiting and retaining skilled heavy equipment technicians, through our collective efforts we will continue to generate interest in the profession, help young people attain the skills they need to be successful, and invest our time, energy and resources in maintaining a successful path to a very rewarding career.
More Cash Flow, Less Taxes. Simple.
For 15 years, PwC and Accruit have supported AED members with Like-Kind Exchange services that reduce tax liability and increase business cash-flow. Learn how we can help you do the same!
Like-Kind Exchange Visit: Services
Accruit.com/1031
Or Call: (866) 397-1031 Like-Kind Exchange Services
April 2017 | Construction Equipment Distribution | www.cedmag.com | 47
>> RISK MANAGEMENT
ERIC STILES
Sentry Offers Tips for Preparing Your Business for Wildfires Q: How should I prepare my dealership if I’m in an area prone to wildfires?
Sentry Insurance's suggestions will help limit damage if your business falls victim to a wildfire.
A: Each year wildfires burn millions of acres and destroy hundreds of homes and businesses. If your company’s located in an area prone to wildfires, here are suggestions to help you limit the damage before and during a wildfire. We’ll start with some preparation: Look low: Move anything stored outside that’s likely to burn at least 50 feet away from buildings. Look high: Check roofs and gutters to ensure there are no leaves, tree limbs, pine needles or
other debris that could catch fire. Stock up: Have emergency supplies stocked and ready to go. That includes flashlights, batterypowered TVs and radios, and extra batteries. Remember first-aid kits, water, and nonperishable food, too. Plan ahead: Develop an emergency response plan specifically designed to handle a wildfire at your company. Practice the plan: Test your emergency plan each year so you and your employees understand how it works. When your plan’s ready, share it with emergency responders and community leaders to ensure everyone’s efforts are coordinated. And mark your address clearly on driveway entrances and buildings. If a wildfire does strike, safety’s key. Be prepared to evacuate quickly. And, if there’s time, there are some things you can do that might limit damage: Shift what’s inside: Close the window coverings. Move any supplies, furniture, or equipment that can easily burn toward the center of the building. Pull the plug: Disconnect equipment from power sources. Turn the valves: Shut off any sources of natural or propane gas, including pilot lights. Slow the flames: Use hoses or sprinklers to wet roofs, walls, and nearby landscaping. If your building is damaged in a wildfire, keep this in mind: Wait until it’s safe: Don’t enter the grounds until emergency crews clear the area. Watch your step: Stay clear of any downed electrical lines. Look for problems: Once you’ve been told it’s safe to go inside, check all areas of your building for any signs of fire damage. As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs. ERIC STILES is Sentry’s lead Account Executive responsible for maintaining the AED/Sentry relationship. Learn more at www.sentry.com.
48 | www.cedmag.com | Construction Equipment Distribution | April 2017
Let’s talk about attracting and retaining employees It’s no secret that a 401(k) plan can help you get and keep quality employees. But it has to be right for you, too. Through open, ongoing dialogue, you’ll benefit from our experience. And we’ll work together to identify the right solution for you. Don’t go it alone. Let us guide you, so you can invest more time boosting your bottom line. Right By You
Let’s get the conversation started. Learn more about how we can help you with retirement planning and increase confidence in your plan at Sentry.com
Property and casualty coverages and safety services are underwritten and provided by a member of the Sentry Insurance Group, Stevens Point, WI. 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. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. In New York coverage provided through policy form numbers: (Life insurance) 585-3000-01, 390-1000 (SLONY), 390-2003-SLONY; (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. 73-710A
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