CedFeb2017MeetYourChairman

February 2017

CED

Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership

Meet Your Chairman

New AED Chairman Wes Stowers Is Lobbying for Change

n Imagine What You'll See!

CONEXPO-CON/AGG 's Tech Experience must be experienced

n The Journey of n The Art of A Technician Influencing People Journeyman technician You need more John Knapp is glad he listened to his dad.

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contents CED Magazine | February 2017

vol. 83 no. 2

www.cedmag.com

>> FEATURES

26

Meet Your Chairman

Wes Stowers, the new chairman of Associated Equipment Distributors. (AED), knows he’s got his work cut out for him this year, particularly when it comes to lobbying Washington D.C. on behalf of the industry and those it serves.

34

The Art of Influencing People You need more than equipment and/or technical expertise to achieve success.

44

IMAGINE What You'll See

The visitor at this year’s CONEXPO-CON/ AGG will have the opportunity to do more than imagine – they will experience a full-on view of what’s next in the advancement of the construction industry through the Tech Experience.

71

Journeyman's Journey One of the most valuable pieces of advice John Knapp ever received was from his dad, who told him, “If you learn a trade, you will never go hungry.”

February 2017 | Construction Equipment Distribution | www.cedmag.com | 3

contents

CED Magazine | February 2017

EDITOR'S DESK Sara Smith, Editor CED Magazine smith@aednet.org

vol. 83 no. 2

A

s we settle back into day-to-day work, I’d like to take a moment to reflect on this year’s Summit.

At AED, we aim to create an experience each year like no other. Where else can you hear from a true American hero who survived 9/11 at the World Trade Center... have dinner with Vice President Dick Cheney... and build permanent business relationships with equipment dealers and manufacturers? We hope you enjoyed the Windy City. If you missed out, you can see all the action from this year’s Summit in our March issue of CED. Summit could not have been a success without everyone who attended, so thank you. Please do take our quick feedback survey at www.surveymonkey.com/r/17aedsummit. We need your candid assessment to create an even greater experience in 2018. We look forward to seeing you at The Mirage, January 15-19, 2018 in Las Vegas! Register online today and save at bit.ly/2018summit.

>> EDITORIAL Editor SARA SMITH ssmith@aednet.org Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com

>> FEATURED COLUMNISTS Rep. French Hill, R- Ark. Eric Stiles Sentry Insurance

>>COLUMNS

Troy Ottmer Doggett Heavy Machinery Services LLC Steve Johnson Vice President, Foundation Operations Rex A. Collins Principal at HBK CPAs Heidi Bitsoli Freelance writer Karen Algeo Krizman Freelance writer

>> 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

22 >> Regional Report Make 2017 the year you invite your senator and representatives to your dealership

24 >> View From The Hill A Time for optimism and making America great again

30 >> Technician Recruitment What can we learn from other Industries?

32 >> Be A Sales Superhero The President Be a sales superhero and never utter these three deadly words again

38 >> The AED Foundation Donor Spotlight Caterpillar lays the Foundation for a Better Workforce

40 >> The AED Foundation Donor Spotlight Komatsu On Board with Educating Tomorrow’s Technical Workers

66 >> Captive Insurance, Part II Dealers can use captive insurance companies to manage risk, reduce taxes and create income

68 >> Problem Solved Service Shop Safety — Owning the Process

72 >> Risk Management Simple Slip-and-Fall at Workplace Can Spawn Multiple Complications

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 | February 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.

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.

>> FROM THE PRESIDENT

BRIAN P. McGUIRE

Bet on Your Future in 2017 With AED We hope you'll take advantage of these upcoming events to help your business succeed.

AED’s Summit & CONDEX was a great success for AED, and we know attendees benefited from having important one-on-one conversations with manufacturers in a setting that was dealer-focused. We are sure you enjoyed the exciting educational sessions, informative keynote speakers, networking with peers and potential clients and learning how to make a difference in your industry.

Although Summit & CONDEX has come to an end, that doesn’t mean the trade show season has.

CONEXPO/CON-AGG is right around the corner, and we look forward to seeing what Las Vegas has in store.

CONEXPO/CON-AGG is a great way for dealers to see the new products and technology that will be available to their organizations in the future. It’s also an ideal way to give manufacturers a better idea of what dealers will be needing from them, thus creating better working relationships. Not only that, but the expo provides dealers the chance to create new relationships with manufacturers, making more connections in a shorter amount of time than they would anywhere else, specifically with manufacturers that

can benefit their future.

AED will be taking a page out of CONEXPO’s book next year by moving our Summit & CONDEX to The Mirage in Las Vegas. If you enjoyed your time at Summit this year, if you want to see everything AED has to offer in one location, or if you just want to see what all the buzz is about, we want to see you there! Our team is already planning exciting features for next year’s event, and we look forward to providing you with another inspiring conference. Keep an eye on your email, and check out bit.ly/aedevents for great new features of the 2018 Summit & CONDEX. Attending floor shows provides many opportunities for dealers – we hope you'll take advantage of these upcoming events to help your business succeed.

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 WES STOWERS Chairman Stowers Machinery Corp.

DIANE BENCK Vice Chairman West Side Tractor Sales Co. MICHAEL D. BRENNAN Senior Vice President Bramco, LLC CRAIG DRURY Vice President Vermeer Canada Inc

ROBERT K. HENDERSON AED Executive Vice President & COO

>> AT-LARGE DIRECTORS

>> REGIONAL DIRECTORS

JAMES P. COWIN

MICHAEL LALONDE West Reg. Westrax Machinery, Inc. MATHEW ROLAND Midwest Reg. Roland Machinery Co. TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC JOHN RIGGS IV South Central Reg. J A Riggs Tractor Co. BRAD STIMMEL Southeast Reg. ASC Construction Equipment KAREN ZAJICK Northeast Reg. Norris Sales Co.

Cowin Equipment Co., Inc. PAUL FARRELL Modern Group Ltd. GAYLE HUMPHRIES 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.

JASON K. BLAKE AED Senior Vice President & CFO

JAMES A. NELSON KENNETH E. TAYLOR Ohio CAT

February 2017 | Construction Equipment Distribution | www.cedmag.com | 7

>> AED INSIDER AED Delivers Priorities to 115th Congress On January 3, Associated Equipment Distributors’ President & CEO Brian McGuire delivered a letter to the 115th Congress urging action on the construction equipment industry’s legislative priorities. The letter’s delivery coincided with the commencement of the new congressional session.

McGuire wrote, “Equipment distributors are ready for Congress and the administration to put partisan differences aside and immediately work together to enact growth-inducing, job-creating policies to ensure the country’s economic vitality for decades to come.” McGuire also outlined the association’s tax reform, infrastructure, workforce, energy, health care, and regulatory priorities.

Be sure to mark your calendars for the AED/EDA 2017 Washington Fly-In on April 4-6.

The AED Foundation Releases New Technician Workforce Research The AED Foundation has released a new study, The Equipment Industry Technical Workforce: Addressing The Technician Shortage 2017, a College Of William & Mary research study commissioned by The AED Foundation.

This research study focuses on Career and Technical Education (CTE), one of the main proxies by which skilled technicians receive training to prepare them for the skilled-labor workforce.

In the examination of CTE, this report seeks to identify the reasons for the collapse of high school CTE and the resulting effect on the economy. The report also identifies best practices at the secondary (and to a lesser extent, the postsecondary) education level in delivering successful CTE programs.

Next, the report provides a detailed overview of CTE funding levels from

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DOWNLOAD THE REPORT: Research Report Part I: bit.ly/AEDF2017Study

State Playbooks Part II bit.ly/AEDF2017Playbook

federal and state sources.

Finally, the report identifies key access points at the secondary and postsecondary education levels via individual state “playbooks”; AED members can use these playbooks as guides in contributing to closing the skills gap.

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>> AED INSIDER AED Commends Congress on Bipartisan Water Infrastructure Package Associated Equipment Distributors (AED) President & CEO Brian P. McGuire issued the following statement following congressional approval of the Water Infrastructure Improvements for the Nation (WIIN) Act. The legislation authorizes dozens of Army Corps of Engineers projects, such as building, maintaining and improving harbors, dams, locks and navigation channels, and provides resources to upgrade drinking water infrastructure in communities impacted by lead contamination.

“AED commends the House and Senate for coming together to pass the WIIN Act and making this important bill a priority before wrapping up work for the year. The WIIN Act is a win for everybody. It will target investment to necessary projects, create jobs and stimulate economic activity across the country, all while spurring construction equipment demand. Importantly, the infrastructure investment under the WIIN Act will also improve the movement of products and goods to market for American businesses and consumers. We look forward to House and Senate leadership, in conjunction with the next administration, working in a similarly constructive manner to invest in other types of critical infrastructure and create an environment conducive to long-term growth and job creation.”

A New Chapter for AED Advocacy Associated Equipment Distributors’ (AED) government affairs program is entering a new phase.

The law firm of Obadal, Filler, MacLeod & Klein (OFMK) and its predecessor firms have provided government affairs management and lobbying services to AED. The firm has helped build a multi-faceted advocacy program that has positioned The Association as a leading voice on policy issues affecting the equipment industry.

As the next step in the evolution of AED’s government affairs program, Daniel Fisher, who currently resides as senior director of government affairs for AED, has taken on the leadership role as vice president of government relations for The Association.

Fisher became an employee of AED effective Jan 30. As of that date, OFMK ceased to represent AED. “I’m honored to have had the opportunity to serve the equipment industry and work with AED’s staff, members, and allies over the years,” said OFMK Managing Member Christian Klein, who served as AED’s first vice president of government affairs. “Together we’ve accomplished a great deal and it’s fulfilling to see the continued progress of The Association’s government affairs program.”

“We thank Christian and OFMK for their dedicated and excellent service for so many

years. Under their stewardship, our association’s visibility on Capitol Hill has increased enormously and public policy has become a major part of AED’s value proposition,” AED’s President & CEO, Daniel Fisher Brian P. McGuire said. “We are happy that Daniel is joining AED’s team and look forward to building upon past successes as The Association’s advocacy program continues to be the voice of the construction equipment industry in our nation’s capital.”

AED’s achievements in the nation’s capital in recent years have included playing a leadership role in passage of the 2015 highway bill, renewal of bonus depreciation, permanent extension of Sec. 179, and positioning the association as a leading voice in the career technical education debate.

“I greatly appreciate the mentorship and opportunity provided by Christian and OFMK’s other partners,” Fisher said. “I’m looking forward to continuing the AED advocacy program’s success and building on our collective accomplishments.”

MEMBERSHIP MILESTONE AED Presents Medico Industries With Half-Century Award Medico Industries, located in Wilkes-Barre, PA, has been selling equipment for over 60 years, and for the past 50 have also been members of AED. To honor the occasion, Ben Yates, AED’s East Region Manager, presented Larry and Phil Medico with the Half Century Award, recognizing them for their continued support and participation.

In addition to representing Case, Wacker, Takeuchi and over a dozen other OEMs, Medico Industries also has business divisions in material handling, scrap recycling, and manufacturing, where they are subcontractors for the Department of Defense.

10 | www.cedmag.com | Construction Equipment Distribution | February 2017

>> AED INSIDER 2017 AED Chairman Wes Stowers, Executive Officers Installed at Summit AED recognizes volunteer leadership, welcomes new officers and directors to The Association and The AED Foundation boards.

AED’s 2017 Chairman Wes Stowers, along with five AED officers, were installed at the Chairman’s Inaugural ceremony on January 12 at AED’s Summit in Chicago.

The group will guide the association for the coming year as members of the Executive Committee.

Stowers is president of Stowers Machinery Corp., based in Knoxville, Tenn. and serves as the East Tennessee Caterpillar Wes Stowers dealer. Wes has been elected to the highest office of our association and will serve as AED’s Chairman. The active members of AED have indicated by their votes, and have instilled full confidence in his ability, integrity and competence to carry out this leadership role for the association. He accepted the gavel from installing officer Mike Quirk, an AED past chairman and vice president of operations at Wagner Equipment Co. Quirk also installed the following AED officers: Diane Benck, AED Vice Chair from West Side Tractor Sales Co. in Naperville, Illinois, Michael Brennan, AED Senior Vice President from Brandeis Machinery & Supply Company in Louisville, Kentucky, John Kimball, AED Vice President of Finance from Kimball Equipment Company in Salt Lake City, Utah, and AED’s newest vice presidents; Ron Barlet from Bejac Corporation in Placentia, California and Craig Drury from Vermeer Canada Inc. in Brampton, Ontario, Canada.

AED’s 2017 officers, were elected by mail ballot to serve as the Chairman’s cabinet, and to assist him in conducting the affairs of the association during the coming year. Their duties are many and varied. Together with Chairman Stowers and AED’s President & CEO, Brian P. McGuire, they comprise the Executive Committee. They serve as ex-officio members of the board, and assist the Chairman with leadership and execution. In their right of succession, they may be called upon at any time to assume the gavel of the association.

The Association would also like to thank AED’s outgoing Chairman, Mr. Whit Perryman, who gave his time, experiences and business acumen over the course of an entire year that has benefited the association immensely.

New At-Large Directors

Steve Meadows, Berry Companies, Inc., in Wichita, KS James Nelson, Heavy Machines Inc. in Memphis, TN Paul Farrell, Modern Group Ltd. in Bristol, PA

New Regional Directors

Brad Stimmel of ASC Construction Equipment in Charlotte, NC is AED’s Southeast Regional Director Matthew Roland of Roland Machinery Co. in Springfield, IL, is AED’s Midwest Regional Director Michael Lalonde of Westrax Machinery, Inc. in Rancho Dominguez, CA, is AED’s West Regional Director

The AED Foundation Board

AED would like to recognize the dedicated volunteer leaders who serve on The AED Foundation Board.

The AED Foundation Executive Team

Chairman Dennis Vander Molen, President of Vermeer MidSouth, Inc. Vice Chairman John Riggs IV, President of J.A. Riggs Tractor Company Treasurer John Crum, Senior Vice President at Wells Fargo Equipment Finance President Robert K. Henderson, COO & Executive Vice President, AED Immediate Past Chairman A. Roy Kern, President of Equipment Corporation of America.

AED's 2017 Chairman, Wes Stowers, left, congratulates AED's 2016 Chairman, Whit Perryman, on an outstanding year.

New AED Board Liaison

Ron Barlet, President at Bejac Corp. in Placentia, CA.

AED Foundation Directors

James McCann, President & CEO at McCann Industries, Addison, IL Jeffrey Scott, President at Intermountain Bobcat, Salt Lake City, UT Jason Daly, Director, Customer Product Support at John Deere Construction and Forestry, Moline, IL Logan Mellott, Vice President & General Mgr. at Ritchie Bros., Morris, IL Shippensburg, Pennsylvania.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 11

>> INDUSTRY NEWS Boy Scouts' Northern Star Council honors Pederson for service On December 8, 2016, Jon Pederson was recognized for his years of volunteer service for the Northern Star Council of the Boy Scouts of America at their “Million Dollar Day for Scouting” breakfast.

Pederson is the president of RuffridgeJohnson Equipment Company. He grew up and resides in Kandiyohi County near Willmar, Minnesota. Jon has been very active in the Scouting program ever since his time as a Cub and a Boy Scout. He has continued his service as an adult, having held leadership roles locally, regionally and nationally.

Congratulations, Jon Pederson, on this exciting new award.

Jon Pederson, left, celebrates his award with a Scouting representative, center, and friend, right.

John Deere Collaboration With AGTEK Increases Customer Support and Simplifies Grade Control Workflow Process As contractors increasingly use 3D digital models and GPS technology when grading a job site, John Deere is joining forces with AGTEK — one of the civil construction industry’s leading providers of takeoff and 3D modeling software — to increase efficiency and ease the takeoff and modeling process across job sites of all shapes and sizes. The data integration simplifies the process of utilizing 3D design files when grading, enabling John Deere dealers everywhere to support customers implementing gradecontrol software into machinery.

“Collaborating with AGTEK allows our dealers to work closely with their customers to support the whole grade control workflow process. This includes cut-and-fill maps, demo models and state-of-the-art 3D views of their project,” said BJ Bauman, instructor of John Deere WorkSight. “John Deere customers can simply contact their dealer to support the takeoff process, which allows the customer to be more competitive. File conversions are also easily formatted to support SmartGrade demos with existing Trimble or Leica users. The AGTEK solution

aligns with our open architecture approach to grade control management as it’s capable of ingesting any 3D environment format.”

AGTEK’s takeoff and site modeling solution, Earthwork 4D, quantifies and provides unmatched field documentation across a wide variety of machinery.

The technology isn’t only accessible on construction equipment. Earthwork 4D uses internet keys, which let customers work from their office, truck or kitchen table for an even greater value in this connected world, further enhancing the power of John Deere WorkSight™.

12 | www.cedmag.com | Construction Equipment Distribution | February 2017

In addition, with John Deere and AGTEK working together, contractors have a simplified process to plan everything, from moving dirt to estimating how much equipment is needed for a project. With AGTEK’s WorkSight integration, contractors everywhere can reduce equipment and labor costs with a streamlined grade-control process that requires less manpower and less machinery when tackling a job site.

With added support from the John Deere network of dealers, contractors everywhere are capable of quickly adjusting 3D maps to keep construction projects moving forward, quickly.

“Every contractor is looking for a competitive edge, and utilizing AGTEK is an eye-opening experience for our customers.

It’s empowering them to use the latest and greatest in technology to attack the job the best way possible and give them a full grasp of the GPS experience,” said Mike Burns, grade control specialist, JESCO Inc. “We believe in the future of GPS technology as it allows us to put our customers in the best position to succeed; and John Deere working with AGTEK does just that.”

To learn more, contact your local John Deere dealer.

>> INDUSTRY NEWS KOBELCO Construction Machinery U.S.A. and KOBELCO Cranes North America to Merge in 2017

KOBELCO Construction Machinery U.S.A. and KOBELCO Cranes North America announce plans to merge under KOBELCO Construction Machinery U.S.A., effective January 1, 2017. The union of these subsidiaries in the North American market takes place following the KOBELCO Construction Machinery Co. Ltd. global construction machinery excavators and cranes merger that was announced in April 2016.

KOBELCO Construction Machinery USA and KOBELCO Cranes North America have each made several advancements to continue their momentum of growth and commitment to the North American market.

By merging the two businesses, the company will take a leap forward as a comprehensive construction machinery manufacturer that provides superior product development, manufacturing capabilities, and enhanced sales support in the U.S.A. The newly combined organization will be represented by two strong dealer networks that are dedicated to delivering the best products, parts and services in the industry for both the excavator and the crane businesses. Both dealer networks will continue as independent networks serving their respective industries.

Headquartered in Katy, Texas, KOBELCO Construction Machinery U.S.A. will be led by new President and CEO Naoto Suzuki and will be comprised of three independent divisions: excavator, crane and manufacturing. Katsuhiko “Pete” Morita, named as vice president – excavator division, and Jack Fendrick, named as vice president – crane division, will lead their respective divisions from the Texas headquarters.

Hiroshi “Rocky” Morita is named vice president – manufacturing and will be based at the KOBELCO North American production facility in Spartanburg, S.C. “This consolidation will harness the strength of both businesses to build our capabilities as a whole,” says Naoto Suzuki. “It will further enhance our service functions, strengthen our product development capabilities, and reinforce our foundation in the North American market. We are very excited about the new opportunities the merger will provide KOBELCO Construction Machinery U.S.A. and we look forward to continuing our growth in this market.” For more information on KOBELCO Construction Machinery U.S.A. or KOBELCO products, please visit www.KOBELCO-USA.com, www.

KobelcoCranesNorthAmerica.com, or call 281-888-8430.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 13

>> INDUSTRY NEWS AEM and CECE Sign International Exhibition Partnership Agreement The Association of Equipment Manufacturers (AEM) and the Committee for European Construction Equipment (CECE) have signed a cooperative agreement that will help promote visibility for AEM exhibitions worldwide and a positive global business environment for exhibitors as well as visitors.

Sigrid de Vries, CECE secretary general, and Megan Tanel, AEM senior vice president, signed the CECE International Exhibition Partnership Programme agreement during AEM’s recent annual conference of member companies.

CECE represents the European construction equipment sector and its 13 national construction equipment manufacturing associations.

AEM is the North American-based international business group representing the off-road equipment manufacturing industry. A key

service is organizing global trade exhibitions, including CONEXPO-CON/AGG, held every three years in Las Vegas, USA. Under the agreement, AEM becomes a gold-level participant in CECE’s Exhibition Partner Programme, which provides promotional and other businessdevelopment services.

Construction equipment trade exhibitions play a vital role in encouraging and enhancing business relationships for manufacturers, suppliers, service providers and customers, and CECE explains it offers this coveted patronage to a limited number of leading sector exhibitions to fortify relations and contribute to successful trade fairs.

Bernd Holz, CECE president and director of Ammann Verdichtung GmbH and Ammann sales director Europe, stated: “AEM and CECE are key partners on the international

Sigrid de Vries, CECE secretary general, left, and Megan Tanel, AEM senior vice president, sign CECE International Exhibition Partnership Programme agreement during AEM’s recent annual conference of member companies.

stage with regard to cooperation on regulatory matters as well as fostering business opportunities through major trade exhibitions around the world. With the new partnership agreement, we underline and reinforce our long-standing relations,

keeping a clear focus on both our member companies’ needs. I’m looking forward to a successful partnership.”

For more information on CECE, visit www.cece.eu.

For more information on AEM, visit www.aem.org.

IronDirect Opens Its 100-Acre Customer Experience Center in NC

Facility to host live and virtual construction equipment demonstrations for customers, dealers, sales partners.

IronDirect®, an American company that offers a convenient online platform (IronDirect.com) for construction equipment buyers to acquire the machines, attachments, parts and services needed to reduce ownership costs and maximize uptime, today announced the grand opening of its 100-acre Customer Experience Center in Asheville, N.C. The state-of-the-art facility offers prospective customers, dealers and sales partners the opportunity to operate and evaluate premium and value-priced equipment from brands such as Paladin, Berco, Lonking, Shantui and Sakai, which are currently for sale online at IronDirect.com.

“We are pleased to open the doors of our Customer Experience Center,” said Joe Krider, IronDirect’s vice president for revenue and growth. “Our new center features new technologies, best-in-class equipment and industry expertise to deliver a great

experience for our prospective customers, dealers and sales partners to learn more about the benefits and convenience of the IronDirect e-commerce business model and how this is changing our industry. Visitors from around the world can inspect a wide range of machines, kick the tires and dig in the dirt – either in person or by leading their own virtual demonstration using the latest live video technology hosted by IronDirect. We

14 | www.cedmag.com | Construction Equipment Distribution | February 2017

are confident our experience center and its unique resources will provide potential buyers a memorable experience and allow them to gain a deeper understanding of the value and cost savings that come with every IronDirect purchase.”

Situated on a 100-acre property in the mountains of Asheville, N.C., IronDirect’s Customer Experience Center is a multipurpose facility capable of hosting onsite demonstrations and associated events for up to 300 people. The campus consists of upscale, modern buildings including a 9,600 square foot indoor product pavilion, scenic deck, grandstand, and multiple staged worksites that accommodate indoor, outdoor and virtual product demonstrations, classroom-style presentations and meetings, catered meals, and full scale photo and video shoots. Hours of operation are Monday through Friday (except holidays) from 9 a.m. to 5 p.m.

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>> INDUSTRY NEWS Komatsu Opens New Sales, Support Unit In NJ Komatsu America Corp., a leading global heavy equipment manufacturer, announced that the company has formed a new business unit (Komatsu Northeast) and will assume Komatsu’s trade territory for the state of New Jersey effective immediately. This includes all Komatsu construction, mining and utility equipment sales and rentals, parts, service and customer support activities.

Previously, the territory was served and supported by Binder Machinery Company.

“This investment, in addition to our ownership positions at Midlantic Machinery and Edward Ehrbar, reflect Komatsu America’s commitment to excellence in the Northeast region of the U.S.,” said Rod Schrader, CEO, Komatsu America. “I know with the extra support, and the team we have in place, we can

deliver unrivaled products, services and solutions that exceed customer expectations.”

The new unit will support Komatsu’s long-term strategic plans to grow and strengthen the distribution channel

by getting closer to the customer.

Komatsu intends to represent a variety of complementary product lines in this market, to fully leverage future growth and customer satisfaction opportunities.

Substantially all employees, facilities, and customer support infrastructure from Binder Machinery will be retained. No other transaction terms will be disclosed.

For more information, visit the website at www.komatsuamerica.com.

Fraley AEC Solutions Tightens Market Focus, Rebrands as Fraley Construction Marketing Fraley AEC Solutions, launched in June 2014 to provide marketing and communications services to the architecture, engineering, and construction (AEC) industry, has narrowed its market focus to the construction industry. The consultancy will rebrand and begin operating as Fraley Construction Marketing, effective Brian M. Fraley January 1, 2017. The ownership, management, team, services, and contact information remain unchanged.

“Fraley Construction Marketing is essentially doubling down on the construction market, which has been our core area of expertise,” said owner Brian M. Fraley. “The truth is that most marketing agencies and consultants, even those that claim to occupy this niche, serve multiple market sectors. This will be a bona fide construction marketing pureplay.”

Fraley has not only provided marketing, communications, and editorial services to construction firms during his 20-plus year career; he has also worked alongside

them in various capacities on such issues as government agency and political liaison, construction safety, payment, designbuild, transportation funding, specification changes, and more.

Streamlining the focus from three distinct market segments to one will allow Fraley Construction Marketing to better serve its clients. “The construction industry is very complex in its own right, from construction equipment dealers and manufacturers, to contractors, to material suppliers, technology firms, and more,” said Fraley. “Narrowing our focus to the construction industry that 86 percent of our clients occupy will allow us to more deeply understand the challenges they face.”

16 | www.cedmag.com | Construction Equipment Distribution | February 2017

ARDCO Articulating Multi-Purpose Truck Tackles Countless Applications Following in the tradition of the K 4x4 and K 6x6 off-road transportation platforms, the next generation Articulating Multi-Purpose Truck (AMT) from ARDCO features a modular backend platform that offers the ability to customize attachments to suit any work environment, from urban construction projects to extreme off-road projects.

Adaptable to numerous applications, the powerful and rugged AMT is highlighted by a convenient, easy-touse universal attachment system that is designed to accept a wide array of equipment. Available configurations include a flat bed, water tank, fuel tank, service and lubrication bed, utility bed, personnel carrier and many more.

Multiple tire choices and other custom options help further configure the machine to various work conditions.

The AMT can navigate difficult terrain and work in any environment, including construction, desert, forest, mountains, arctic, swamp and railroad.

>> INDUSTRY NEWS Join AED at the Member-Exclusive Pre-CONEXPO Reception Meet AED at the Mirage when you arrive in Las Vegas for the AED Members-Exclusive Pre-CONEXPO Reception being held Monday, March 6 from 4 – 7 p.m. in The Mirage’s St. Croix room.

This reception will allow AED members to celebrate the week that awaits over libations, appetizers and entertainment.

The reception is free to attend for employees of AED

member companies and offers a great environment for Association members to come together before CONEXPO begins.

RSVP online at LINK or by contacting: Phil Riggs at 630-465-3622 or priggs@aednet.org Mike Dexter at 630-468-5124 or mdexter@aednet.org.

Your CONEXPO-CON/AGG See you in Vegas! guide begins on Page 44

EquipmentWatch Names Finalists for 2017 Highest Retained Value Awards The finalists for the 2017 Highest Retained Value Awards have been revealed. Now in its second year, the program recognizes those model series which have the highest projected residual value after five years across 28 construction, lift and access, and agricultural equipment categories.

Finalists were chosen from over 12,000 models maintained by EquipmentWatch analysts. John Deere leads all manufacturers with 28 nominations, followed by Caterpillar

with 24 and CASE (representing both the CASE IH and CASE Construction Equipment brands) with 18 nominations.

First-time finalists include Bell, Claas, Custom Equipment, Haulotte, Kobelco, Kubota, Mayville, Takeuchi and Terex.

“The ability of an asset to hold its value throughout its service life is, in many ways, the ultimate measure of worth,” says Garrett Schemmel, vice president and market leader, EquipmentWatch. “The Highest

Retained Value Awards are the only industry benchmark that relies on data-driven residual values to confirm and project an asset’s value.

This increases confidence in new and used equipment purchases, and ensures buyers that they’re adding a piece of equipment that has historically proven performance and value.”

Winners will be announced on February 20, just weeks before CONEXPO-CON/AGG in Las Vegas. Learn more at equipmentwatch. com/residual-value-awards.

FINALISTS: HIGHEST RETAINED VALUE Backhoes

Caterpillar 420

Dozers – Track Large Dozers – Track Small Drum Compactors

Caterpillar D8 Caterpillar D10 Caterpillar D6 Caterpillar D5 Caterpillar CS-56 Bomag BW211

Excavators – Compact Caterpillar 305 Excavators – Crawler Large Caterpillar 390

Deere 310

Excavators – Crawler Medium Caterpillar 336 Excavators – Crawler Small Caterpillar 320 Loaders – Compact Track Deere 333

Deere 35 Komatsu PC8000 Deere 350 Deere 160 Bobcat T650

Loaders – Skid Steer Large

Bobcat S650

Deere 320

Loaders – Skid Steer Small Loaders – Wheel Large Loaders – Wheel Medium Loaders – Wheel Small Motor Graders Rear Dumps

Bobcat S70 Caterpillar 980 Caterpillar 930 Caterpillar 908 Caterpillar 140 Caterpillar 740

CASE SR130 Deere 844 Deere 544 Deere 444 Deere 772 Volvo A40

CASE 580

Terex TLB 840

Deere 850 Deere 1050 Deere 700 Komatsu D61 Caterpillar CS-44 Dynapac CA2500 Takeuchi TB230 Bobcat E32 Volvo EC700 Deere 800 Kobelco SK350 Bobcat E85 Caterpillar 289 Caterpillar 262

JCB 3C Komatsu D65 CASE 650 Volvo SD115

Hew Holland B95 Komatsu D155 Deere 650 CASE SV212

Volvo EC35 Caterpillar 349

CASE CX36 Deere 600

Komatsu PC360 Volvo EC480 Komatsu PC138 Kobelco SK140 CASE TV380 Kubota SVL90

New Holland L220 Gehl 4240 Bobcat S510 Volvo L150 Komatsu WA500 Volvo L90 CASE 621 Komatsu WA200 Volvo L50 Caterpillar 12 CASE 865 Bell B30 Terex TA300

CASE SV300

CASE CX350 CASE CX160 New Holland C238 Gehl R190

Volvo MC60 Caterpillar 966 Komatsu WA320 CASE 521 Komatsu GD655 Komatsu HM400

Caterpillar 226 Kawasaki 90 Hyundai HL757 Hyundai HL740 Deere 770 Deere 250

February 2017 | Construction Equipment Distribution | www.cedmag.com | 17

>> INDUSTRY NEWS Forecasting the Impact of Tier 4 on the Used Construction Equipment Market According to a recent survey of Independent Equipment Dealers Association (IEDA) members, the EPA’s Tier 4 mandates are driving up the demand for non-Tier 4 used construction equipment, and this trend is predicted to continue for the next several years.

For many equipment categories, used equipment availability is outpacing demand, but for other categories, including excavators, backhoe loaders, wheel loaders, dump trucks, dozers and compact equipment, IEDA members are seeing resale pricing increase by as much as 20 percent. Also, more than 50 percent of survey respondents noted that quality used equipment is getting harder to find.

The IEDA membership base is comprised of equipment dealers from around the world specializing in used construction and mining equipment sales. Since the EPA implemented new standards more than two decades ago, the IEDA’s staff and members have kept a close eye on how used equipment availability and pricing would be affected by each new standard.

“Our members buy and sell used equipment globally, which makes them well aware of market trends,” says Drew Van Brunt, IEDA president and owner of Global Tractor Company in Colleyville, TX. “As a group, we make it a

point to share trends we see in the market with each other, as well as with used equipment buyers and sellers. The current used equipment market is strong, but it will be affected by Tier 4 machines in the near future.”

In this most recent survey, most members are still unsure how Tier 4 machines will hold their value when these models hit the used equipment market. Of the members surveyed, 37 percent believe Tier 4 machines will not retain their value as well as non-Tier 4 equipment, but many others believe Tier 4 machines will have better resale value because many projects demand the use of Tier 4 compliant equipment. If more construction projects demand the use of Tier 4 machines, the residual value of non-tier 4 machines will drop significantly.

Currently, there are only a few Tier 4 machines in the used equipment market; IEDA members predict that the market is four to eight years away from being dominated by these newer machines. At that point, non-tier 4 machines will be harder to come by, and pricing on Tier 4 machines will become steadier.

For more information about the IEDA and its members, please visit www.iedagroup.com or contact IEDA Executive Director Kristen Williams at Kristen@iedagroup.com.

McCann Industries Adds Carlson Paving Equipment McCann Industries Inc. is pleased to announce that the company now offers Carlson Paving Products road building equipment at all of their locations. Carlson machines are ideal for all road construction projects and include commercial pavers and accessories. Parts and service are available for all models.

“We are excited to

introduce our customers to the Carlson paving line,” said Jim McCann, president at McCann Industries. “These machines are not only easy to operate and maintain, but their reliability and quality is unmatched in the industry.

Along with our other lines, we now have everything required for any road building project.”

The Carlson asphalt paving

line is constructed from a single piece frame and heavy-duty components for a longer machine life cycle and superior quality. McCann will also provide parts, service and accessories for Carlson commercial pavers.

The full line of Carlson road building products is immediately available at every McCann location.

IN MEMORIAM Rocco Christofano Rocco Christofano, 96, of Oak Brook, Ill., passed away on December 18, 2016. Rocco was predeceased by his loving wife Anne of 63 years.

Rocco was the loving father of Martin (Connie) Christofano, Roxanne (Greg) Pilat, and Dr. Barbara Santucci; devoted grandfather of Michael Pilat, Laurie Christofano, Christopher Pilat, Jennifer Pilat, and Joseph Christofano.

Rocco’s career spanned many years with M. Christofano and Son Inc., specializing in sewer and water main construction from 1946 to 1973, and D. Diorio and Sons Co. and Carlo V. Santucci Inc. from 1973 to 1983. During his career in the underground construction industry, he provided complete water main and sewer construction in such communities as Oak Lawn, Alsip, Oak Forest, Country Club Hills, Chicago, Itasca, Lake Forest, Du Page County, Western Springs, and Lyons as well as numerous other suburbs. Rocco was a member of the Local 150 Operating Engineers for over 70 years. During his career, he took great pride in the work that he completed and the relationships that he established with his clients and employees. He will forever be remembered as a true friend and business colleague to many.

LiuGong President Nominated for 2016 China Top Quality Manager Award Yu Chuanfen, president of LiuGong Machinery Co. Ltd., was nominated as the 2016 China Top Quality Manager by China Quality Association and All-China Federation of Trade Unions.

The China Top Quality

Manager election campaign was initiated by China Quality Association and All-China Federation of Trade Unions in 2005. It aims to honor entrepreneurs and quality control experts who actively promote advanced quality

18 | www.cedmag.com | Construction Equipment Distribution | February 2017

management concepts, modes, tools, and methods during the implementation of national quality power strategy.

Mr. Yu has worked in LiuGong for almost 20 years. He started his career as an engineer in LiuGong and was promoted

to president in November of 2013. Under his leadership, the company implemented comprehensive quality management strategies and maintained a stable operation and rapid development in the changing economy.

GO ANYWHERE. DO ANYTHING. Empower your customers to conquer even the most inaccessible jobsites imaginable with the Terramac family of crawler carriers. Thanks to their rubber tracks, these machines boast a low ground pressure that protects sensitive ground conditions. Both the RT9 and RT14 are easily customizable with a range of attachments from hydroseeders to welders, while the RT14R offers a dump bed and 360-degree rotation for precision even in confined spaces. Each carrier is backed by our highly trained service and support professionals, so you’ll stay up and running no matter how difficult the job.

Visit Terramac.com to learn more about joining the Terramac dealer network.

RT9

RT14

RT14R

>> PRODUCT PREVIEW Komatsu America Corp. Introduces PC650LC-11 Hydraulic Excavator Komatsu America Corp., a leading global heavy equipment manufacturer, has introduced the new PC650LC-11 hydraulic excavator.

With an operating weight between 140,456 lbs (63,710 kg) and 145,284 lbs (65,900 kg), the PC650LC-11 maintains the powerful productivity and transportability of the previous model, while improving fuel efficiency, cab design, and serviceability.

Additionally, the PC650LC-11 is equipped with the latest KOMTRAX® technology. Data such as fuel levels, diesel exhaust fluid (DEF) levels, operating hours, location, cautions and maintenance alerts are relayed to the web application for analysis. A new Operator Identification System provides up to 100 ID codes which can be used to track and report on key machine operating information for various applications, operators or jobs. A new Auto Idle Shutdown function helps reduce idle time as well as operating costs.

Standard features of the new PC650LC-11 include: Tier 4 Final Certified Engine Technology ▶ A 436 net horsepower hp. (325 kW), Komatsu SAA6D140E-7, EPA Tier 4 Final emissions certified engine. ▶ Integrated, selective catalyst reduction (SCR) system that uses diesel exhaust fluid (DEF) to meet EPA Tier 4 Final regulations for NOx emissions. ▶ Variable geometry turbocharger (VGT) and an exhaust gas recirculation (EGR) valve for more precise temperature and air management control, as well as longer component life.

Highly Efficient Hydraulic System ▶ All major components, including the engine, hydraulic pumps, motors, and valves exclusively designed and produced by Komatsu. ▶ Integrated design, using a Komatsu open center load sensing hydraulic system, features three working modes to match performance in a wide variety of applications. ▶ Additional hydraulic system enhancements reduce hydraulic loss, improving efficiency. ▶ Hydraulically driven, reversible cooling fan varies fan speed in response to coolant, hydraulic oil, and ambient air temperatures, creating better efficiency and a quiet work environment for the operator.

Operator Environment ▶ Comfortable, quiet work environment to help operators maximize productivity. ▶ ISO-certified cab, specifically designed

for hydraulic excavators, strengthened by a reinforced box structure framework. ▶ Cab mounted on viscous isolation dampers for low vibration levels. ▶ Standard, heated air suspension highback seat, with new, fully adjustable armrests for improved comfort. ▶ Standard AM/FM stereo radio, plus auxiliary input, for connecting external devices to play music through the cab speakers. ▶ 12-volt power ports incorporated into the cab. ▶ Enhanced, high-resolution, seveninch LCD color monitor displays information in 33 languages, for global support. ▶ Operator can select up to three working modes to match machine performance to the application. ▶ Monitor panel displays DEF fluid level, ecology guidance, operational records, fuel consumption history, and utilization information. ▶ New display combines vehicle information with wide landscape view from standard rearview camera, allowing operator to easily view working area directly behind the machine.

Convenient Maintenance and Serviceability ▶ Handrails on both sides of the upper structure for easier access. ▶ Large, easy-to-reach, 16.4 gallon (62.2 liter) refill capacity DEF tank, in a lockable compartment, provides 2:1 diesel-to-DEF refill ratio. ▶ Hydraulically-driven fan can be manually reversed to simplify cleaning the cooling assembly. ▶ Radiator and hydraulic oil coolers mounted side by side, for easy maintenance and service. ▶ Standard 24-volt lubrication pump with hose reel to ease grease-fitting maintenance. ▶ Exclusive Komatsu EMMS (Equipment

20 | www.cedmag.com | Construction Equipment Distribution | February 2017

Management Monitoring System) continuously monitors all critical systems, enables preventative maintenance, and provides troubleshooting assistance to minimize diagnosis and repair time.

The PC650LC-11, whether rented, leased or purchased, is covered by the Komatsu CARE® program for the first three years or 2000 hours, whichever comes first. Komatsu CARE includes scheduled factory maintenance, a 50-point inspection at each service and up to two complimentary Komatsu DPF exchanges and up to two DEF tank flushes in the first five years.

Visit the website at www.komatsuamerica. com for more information.

>> PRODUCT PREVIEW John Deere Adds 844K-III and 844K-III Aggregate Handler to Lineup A pillar in mining and quarrying operations, the John Deere wheel loader family welcomes the addition of the 844K Series-III and the 844K Series-III Aggregate Handler configuration. The workhorse machines offer customers increased uptime and the ability to sell more material more efficiently to improve their bottom lines.

“The 844K-III is designed to take on the toughest aggregate and material-moving applications in the world. We worked closely with our customers to design these productive machines to be even more rugged and reliable,” said John Chesterman, product marketing manager, production class four-wheel drive loaders, John Deere Construction & Forestry. “The Aggregate Handler configuration of the 844K-III can load out 24 short tons of non-heaping, lower-density processed matter in just two passes into on-road dump trucks. Heavier heaping materials achieving 12-plus tons is not a problem.”

The new wheel loaders offer a 13.5L John Deere PowerTech™ Final Tier 4 diesel engine that delivers exceptional power at 380 horsepower for the 844K-III and 401 horsepower for the Aggregate Handler configuration. The models are equipped with a standard five-speed transmission with torqueconverter lockup in gears two through five. This feature increases acceleration, speeds and cycles, and optimizes power and fuel efficiency during transport, roading, and ramp climbing.

Other Series-III updates include more robust plumbing with additional bulk heads, which improves service and uptime by minimizing hose rubs. Over three dozen steel tubes replace 81 feet of hoses.

The Aggregate Handler configuration is purpose built for two-pass loading with increased power, larger tilt cylinders, higher hydraulic pressure and increased counterweighing to handle bigger material-handling buckets (9.3 cubic yard/9.8 cubic yard), reduce fill time in processed aggregates and ultimately conserve fuel in applications. New enhanced performance buckets boast a narrower integrated spill guard and curved side cutters to improve load visibility and load retention. The Aggregate Handler option cuts loading time by 30 percent with reduced fuel consumption by eliminating that third pinch pass.

The new models retain everything the industry values about the K-Series, including the Quad-Cool™ system with reversing fan, which provides wide-open access to both sides of the coolers for easy cleanout.

The John Deere exclusive integrated tire monitoring reports pressures and temperatures clearly on the monitor and remotely through JDLink™ Ultimate to help reduce tire wear and replacement cost.

In the operator station, standard productivity-enhancing features include joystick steering with integral forward/neutral/reverse, advanced LCD color monitor, sealed-switch module, ride control and hydraulic controls integrated into the deluxe heated seat.

Outside the machine, John Deere has slip-resistant steps, platforms and handrails to provide uninterrupted three-point access.

Fleet managers looking to get the most out of their 844K-III wheel loaders can rely on their John Deere dealers to provide Ultimate Uptime featuring John Deere WorkSight. With Ultimate Uptime, owners receive predelivery and follow-up inspections; five years of JDLink™ telematics, machine health prognostics and remote diagnostics, and programming

capability; and the ability to add dealer-provided uptime solutions to customize the package to individual needs.

To learn more, visit www.johndeere.com or contact your local John Deere dealer. The 844K-III Aggregate Handler will also be on display at CONEXPO-CON/AGG 2017, March 7 – 11, 2017, at booth N12525.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 21

>> REGIONAL REPORT

MICHAEL DEXTER

Make 2017 The Year You Invite Your Representatives to Your Dealership Thank you to the following members for hosting an event: ▶ West Side Tractor ▶ McCann Industries ▶ General Equipment ▶ Roland Machinery ▶ Ohio Cat ▶ Diamond Equipment ▶ MacAllister Machinery Co. ▶ KC Bobcat ▶ Miller-Bradford & Risberg ▶ Kelbe Bros. Equip Co. ▶ Ditch Witch Mid-States ▶ Bobcat Enterprise Inc ▶ Vermeer Canada

As we look back on 2016, let me reflect on some of the highlights. I want to thank you for hosting congressional meetings at your dealerships. Some people do not think they are important or don’t want to get involved in this process. But when I listen to members who have hosted a meeting for the first time, I often hear how surprised they were to see that the representative was so interested in hearing what they had to say, was engaged and seemed genuine.

While touring your facilities, members of Congress were extremely interested in what each of you does and what impacts you the most. During these meetings, some of the talk was about our elections and what will happen. Although we are all glad the election is over, some are pleased about the outcome and others are shocked. Many are unsure and trying to stay positive. Meeting with you and your organization has become extremely important to the members of Congress and their staff.

We have found that these meetings are very important in Canada as well. During our Ottawa Briefing, we met with different members of

Parliament (MPs) who talked to our group about engaging their MP to meet at their locations. MP Raj Grewal spoke to the group and thanked Craig Drury of Vermeer Canada for allowing him to visit his facility and talk to his people. While at a local meeting in British Columbia South Surrey, MP Dianne Watt spoke to the group and suggested that they attend Ottawa and invite their MP to their facility. “We want to hear from you,” she said.

I had the honor of sitting in a meeting with Speaker of the House Paul Ryan along with AED President Brian P. McGuire and Diane Benck from West Side Tractor. Discussion mainly focused on AED members’ needs, such as taxes and workforce. I believe meeting with the Speaker of the House for 30 minutes signifies what a difference AED is making.

Think about what is important for your business.

What can AED do to help? We strive to make this industry strong by working together. I would ask that you reach out to your regional manager to host a meeting with your representative, both in the states and in Canada.

MICHAEL DEXTER is AED Senior Director of Canadian Engagement. Reach him at mdexter@aednet.org.

22 | www.cedmag.com | Construction Equipment Distribution | February 2017

>> VIEW FROM THE HILL

REP. FRENCH HILL, R-ARK

A Time For Optimism And Making America Great Again Through Republican control of both the House and the Senate, the past two years in Congress were the most productive of the past eight.

We are entering an exciting and rare time in our country’s history. Only four times before has a Republican president been sworn into office with Republicans in control of the House and the Senate. This president has an opportunity to take the blueprint that we in Congress have laid out for him and truly “Make America Great Again.”

Over the past six months we have laid out our plans to create economic growth, tackle border security, enhance our national security objectives, fix the broken tax code, address the needs of citizens living in poverty, and restore constitutional authority granted to Congress under Article 1 of the Constitution.

We can be optimistic about our government moving forward, not just because of the historic makeup of our government in 2017, but also because of what was accomplished over the past two years.

Through Republican control of both the House and the Senate, the past two years in Congress were the most productive of the past eight.

We passed 740 bills out of committee (a 13 percent increase over the 25-year average). We passed over 600 bills out of the House, 212 of which were also passed in the Senate (an 84 percent increase over the previous Congress when Democrats were in control of the Senate), and 219 bills were enacted into law (a 22 percent increase from the previous Congress). Six hundred bills were passed on the House Floor (a 33 percent increase from the previous Congress, nearly a 30 percent increase over the 20-year average).

House-passed bills: ▶ Addressed the tragedy of veteran suicides (signed into law); ▶ Addressed the pervasive lack of accountability at the Department of Veterans Affairs (passed the House and was held up by Democrats in the Senate); ▶ Eliminated excessive regulations hindering economic growth of small businesses (passed the House and was held up by Democrats in the Senate); ▶ Lifted the 40-year ban on crude oil exports (signed into law); ▶ Blocked the president’s from closing the detention facility at Guantanamo Bay (signed into law); and ▶ Fully funded our military at the levels needed to win the Global War on Terror (signed into law).

Washington is rightly criticized for being too reactive and rarely proactive. However, already, we have outlined the challenges and have begun crafting real solutions designed to solve them.

But, as optimistic as I am about our plan for this Congress, I, like many of you, still remain frustrated with the rules and process – or lack thereof – in Congress. I have told the Speaker repeatedly that we need to go through regular order and move all appropriations bills.

Until we do, we can’t effectively advance policies that grow our economy, support our national security, and eliminate wasteful spending and unnecessary, overly burdensome regulations at our federal agencies.

In both years of this Congress, the House has passed every single appropriations bill out of Committee.

Two-thirds of the federal government’s budget is also tied to mandatory spending – programs that are on autopilot spending and don’t require annual congressional approval, like our appropriations bills.

While our nation’s discretionary spending remains at least somewhat steady through the next decade with comparably slight increases, our mandatory spending will nearly double to over $4 trillion per year, and the net interest on our debt will skyrocket, nearly quadrupling to $830 billion annually and leaving a $30 trillion national debt that future generations of Americans will have the burden of paying.

Our country’s hardworking retirees have paid into these mandatory programs of Medicare and Social Security, and these programs are promises that the federal government has made to hardworking American taxpayers who have earned these benefits.

We must honor our commitments made over the years. Today, however, young Americans that pay into these programs have no assurance that the benefits will be there at the time of their retirement, and future presidents and the Congress are faced with the challenge of preserving these programs for current beneficiaries and ensuring they remain viable for future generations. We must act now to find a way to effectively address the growth of these mandatory spending programs and begin to drive down our national debt and deficit.

Americans should recognize an increase in Congress’s effectiveness in passing legislation and working through appropriations at the committee level, but they still should demand we be better about moving the appropriations ball entirely across the goal line. With a Republican president and a Republican Senate, the Better Way Agenda and the use of the appropriations process to get government spending back in check can be achieved.

REP. FRENCH HILL is in his second term representing Arkansas’ second congressional district. He serves on the House Financial Services Committee.

24 | www.cedmag.com | Construction Equipment Distribution | February 2017

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New AED Chairman Wes Stowers:

Lobbying for Change

By Karen Algeo Krizman es Stowers, the new chairman of Associated Equipment Distributors (AED), knows he’s got his work cut out for him this year, particularly when it comes to lobbying Washington D.C. on behalf of the industry and those it serves.

"We've got a huge list this year on the legislative front," Stowers said. "I don't think anyone expected the (election) outcome to be what it is, but Trump does open a window of opportunity. The Republicans have a chance to change where our industry's been going for the last several years."

Stowers, who is also the president of Stowers Machinery Corporation, is no stranger to advocating for the industry on behalf of AED. Stowers Machinery, based in Knoxville, Tenn., has been a member of AED since 1962, long before Wes Stowers took over the company from his father, Harry Stowers, and two uncles, Bud and Dick Stowers.

When the younger Stowers joined the company straight out of the Air Force in 1988, he became involved in AED. “My involvement was initially for networking," Stowers said. "Then it was for political action. Then it was for some of the training. Then it was for the executive forum and ultimately joining their board in 2008.”

As the new chairman of AED, Stowers sees advocating for the industry in Washington as a simple matter of survival “There are some real opportunities and some real threats," Stowers said. "Most of us are small familyowned businesses, and we need to have a seat at the table.

Otherwise, we'll be on the menu.”

To Stowers, success means seeing legislation passed that is beneficial to the industries served by the nation’s equipment distributors.

“The mining industry, for example, and the oil and gas industry … they’ve really been hammered and that’s put a lot of people out of work,” Stowers said. “And it’s certainly hurt our ability to grow our businesses. It’s not a handout

W

26 | www.cedmag.com | Construction Equipment Distribution | February 2017

Photos: Victoria Miller we’re looking for. We’re looking for the opportunity.”

High on his list of things to change is the federal tax code.

“We have a tremendous opportunity to put businesses in a growth mode based simply on tax structure,” Stowers said. “If our taxes are competitive with the rest of the world -- which they aren’t today -- then we’ll have companies wanting to bring business back here.”

As an industry that is in the business of serving others, the country’s equipment distributors need a more business-friendly tax code to keep their clients stateside.

“We are one of the highest-taxed nations on earth for business,” Stowers said. “That’s one of the reasons (businesses) go offshore. (Congress and Trump) are going to try to find places to make these tax changes revenueneutral. We just need to make sure we’re not left out of the discussion.”

Reining in federal regulations is another issue that Stowers will be focused on this year.

“We have regulations that have terrible consequences and costs,” he said. “They cost jobs…. We have other parts of the country, and certainly other parts of the world, where it’s an uneven playing field. It hurts people here who are trying to work.”

Stowers believes an overabundance of federal regulations, and the resulting legal action that they have spawned, are stifling industry.

“Society has five basic function that it must do, not just to survive, but to thrive," he said. "You've got to grow things. You've got to mine things.

You've got to manufacture things.

You've got to build things. You've got to move things. You’ll notice there’s nothing in there about class-action lawsuits and some of the crazy things we do as a society today that siphon off the productive elements.

“That's what creates GDP and wealth. We've been attacking these five functions as a nation for years with

regulations on top of other regulations that didn't work. We're sapping the strength of productive enterprises. It's become intolerable the last few years.

Legislatively, we have to be engaged with the lawmakers.”

Stowers also would like to lobby for change on the energy front.

“To me, it’s absolutely insane to have the energy policies we’ve had for the last eight years,” he said. “We have more resources today than any other nation on earth when it comes to energy. We ought to take advantage of this opportunity and bring down our energy costs.”

As a U.S. Air Force Academy graduate who flew F-4 Phantoms for the military, Stowers spent a lot of time in the Middle East in the early 1980s.

“We don’t have to allow that part of the world to dictate our energy policy,” he said. “If we play our cards right, it's the other way around. We can set oil prices and pressure the Middle East economically to stop funding terrorism and anarchy without firing a single shot. These dictators can't drink the

oil; they must sell it. Energy has a huge benefit to this society and, frankly, to the world, if we can have a rational energy policy. That means finishing

pipelines. It means drilling and fracking in clean, responsible ways.”

Stowers said the AED staff has a lot of momentum and is up to the challenges that the new year and the new administration in Washington will bring.

“We’ve got some new energy and we’re creating more members, both

February 2017 | Construction Equipment Distribution | www.cedmag.com | 27

dealers and manufacturers,” he said. “We want to continue our membership growth, and you do that by providing even better products and services.”

Stowers gives AED President Brian P. McGuire and his staff credit for getting the word out to industry managers and members, but he says there is still work to be done, especially on the legislative front.

“So many legislators at municipal and state levels, and certainly at the national level, don't really understand what equipment distributors do, "Stowers said.

"We are out of sight, out of mind.

They have no idea the number of jobs that equipment distributors provide. And these are good jobs.

Most of our businesses pay high wages to skilled people, have full benefit packages and have low turnover.

“Educating our local, state and national representatives about what we do is very important. I think there’s a story to be told, and the AED membership is in a good place to do this. We’ll have our work cut out this year.”

Getting personal with Wes Stowers

As a boy growing up in Chattanooga, Wes Stowers remembers spending his summers working in the Stowers Machinery plant with his father, Harry.

“From the time I was 16, I worked my summers in the shop. I was a mechanic’s helper, I worked in the warehouse and I learned how to drive a truck,” he recalled.

After serving for 12 years as an Air Force pilot and being promoted to major, Stowers returned to the business that he loved.

“In 1987, one of my uncles retired, and another one became very ill, leaving my father as the only family member active in the business,” Stowers said. “My father explained to me that the window of opportunity to come back into the business was not open-ended. I needed to commit one way or the other. At that point, my wife encouraged me to make a career change. We had talked about it a couple times in years past and decided to stay in the military. However, when

we started having children, it changed the dynamics. I also welcomed the opportunity to work with my father. We were very close.”

Although his father died in 2007, Stowers’ love of his work still lives on.

“Personally, my passion is the people I work with,” he said. “We have a very tight culture within our company. That’s where I get my energy. If I’m having a bad day, I walk through my shop. In 10 minutes, I’m motivated again. We have great people all working hard and solving problems.”

28 | www.cedmag.com | Construction Equipment Distribution | February 2017

Married for almost 40 years, the father of two daughters and grandfather of three hopes to pass on the family business to a third generation.

“I stand on a lot of people’s shoulders, starting with my dad and my uncles,” he said. “I can’t overstate what a great group of people we have in our company.

Any success that I’ve had personally is because of the team I’ve been on, and that includes in the Air Force.

“I love the business and the people in it. I love mechanical things. It’s a passion I still have to this day.”

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Technician Recruitment: What Can We Learn from Other Industries?

By Steven Johnson As we search for the construction equipment industry’s technicians of the future, and work to retain the technicians we have, other industries become our competitors. For example, the automotive and truck industries recruit from the same potential talent pools. To best compete, we should know what the competition is doing. Many of you are familiar with some of the topics presented here, but they are offered as recruitment strategies that cross industry lines and stand out to me as best practices.

1. Is Your Retention Strategy Nonexistent or Broken?

Do you lose more than 10 percent of your technicians each year?

Lost business and the cost to hire a replacement technician and bring them up the learning curve can amount to more than half of that person’s annual salary. “Retention strategy” should be the number one priority in your recruitment strategy.

2. Are You Using Social Media to Recruit?

Your technicians of the future are on social media … all the time.

So are your other employees of the future. If you want to reach them, you need to be on social media as well. Social media is an especially good tool for building awareness of our industry and its great job opportunities in nontraditional labor markets, as well as for identifying specific talent. Don’t forget, though, that while social media is effective, good hiring will always require a personal touch.

3. Expand Your Potential Technician Talent Pool Horizons There are fewer students growing up in rural areas, and fewer exposed to even basic mechanical knowledge. Technology makes it hard to become a shade tree mechanic any more. We fight industry stereotypes. Traditional talent pools continue to shrink, and we need to look beyond them. For example, we still see very few women equipment technicians. Recruiting from urban populations is different. Look for interest, ability, motivation and attitude – not just experience. If we are to recruit from talent pools newer to our industry, recruitment strategies must be adapted to specifically target those groups.

4. Your Technicians’ Skills and Knowledge – Service Department Gaps Do you know specifically where skills and knowledge are lacking in your service department? Perform written individual analyses of each technician’s skills and knowledge. Get a picture of the overall department’s gaps. Hire talent that can bridge those gaps, and share such knowledge with your existing technician workforce.

5. Technician Development Is Important Identify your top talent and work with them to develop a career path that provides opportunity and motivates them to stay. Technical skills and knowledge is just one avenue. It’s important to include the following, when appropriate: greater job independence, involvement in decision-making, higher responsibilities, more authority, learning to lead and manage, and so forth. Prepare them ahead of time for “next career steps.”

6. Why Is Our Industry Different? Why Choose Us Over Others?

Students have many potential career options. We need to communicate why they should choose a technician career in the equipment industry. This needs to be something from the heart, not just self-serving industry-speak. Ask yourself why you enjoy working 30 | www.cedmag.com | Construction Equipment Distribution | February 2017

at your company; why are you happy in our industry, and what does it do for you and your family? Get to the career aspects that go farther than “just a job.”

7. Take Professionalism Seriously Your recruitment process and company environment make definitive statements about the professionalism of the industry, your company and the technician career. The perceptions of students, parents, high school counselors and others are their reality. Ensure that the perceptions you leave them with add up to “professionalism.”

8. Work with Local Technical Colleges You’ve heard this from The AED Foundation before, and we’ll say it again. Other industries such as automotive and heavy trucks are highly involved in industry-specific programs at local technical colleges. Construction equipment dealers must also be there for our industry to get its fair share of new technicians. Are you there competing for talent? If not, contact The AED Foundation to find out how to be more involved.

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Be A

Sales Superhero

& Never Utter These

Three Deadly Words

By Todd Cohen The English language has an unending supply of words and phrases intended to create conversations that convey meaning and leave impressions. How you use and deliver these words makes a huge impression on people and leaves them thinking and feeling a certain way about you.

Every conversation is a selling moment that constructs lasting images in others’ minds. Considering how important first impressions can be, there are three words that are absolutely deadly to sales, your career and your very psyche. These three words, when uttered, send an extremely negative message to everyone around you. These words – just nine simple letters and one apostrophe – can have an incredibly detrimental effect on your ability to create new relationships, establish credibility and attract others. Ready? Here they are: “I’m just the…”

These three words by themselves send a very strong message about how you feel about yourself and how you view your value and contributions to your organization. “I’m just the...” sets up a cascade of unflattering perceptions and opinions in the minds and hearts of the people being spoken to.

They create an indelible image that says you have little to no value.

But that’s just the tip of the iceberg in regard to these three seemingly harmless little words. They can negatively impact you in a number of ways.

1. This expression is one you are wired to say, and it sends the message that “I don’t matter.” It’s akin to saying, “Please don’t take me seriously.” And there is another dimension to the very damaging effects of these words. Imagine you are approached by your supervisor or a colleague and they ask you some questions about a situation. The questioning could be entirely innocent, or it could be pointed—eliciting a defensive response in the form of “I’m just the...” in an attempt to deflect blame or responsibility. These words are, intentionally or unintentionally, a way to defer accountability. It’s the unconscious way these words are used that sets you up for failure and disengagement.

2. It’s similar to using “but” when you should say “and.” Using the word “but” is a bad idea because it negates everything that has been said up to that point. The same result occurs when you say, “I’m just the...” You make it harder on yourself to get what you need, and it drastically affects your ability to leave a lasting, positive impression. You must engage people to further your goals. Let them know you matter!

3. It sends the clear message that you don’t have confidence in what you do and how you contribute every single day. One of the most common questions in business is, “What do you do?” When faced with that question, you typically have a few seconds to make your mark.

Don’t waste that opportunity by starting with “I’m just the...”

4. It telegraphs your insecurities. Everyone has them, and anyone who suggests that they are not insecure at some level is actually insecure. Secure people are okay with their insecurities and face them with courage and determination. Life can be hard enough without adding to it with these three words.

5. Clients and decision makers like confidence. Project confidence and be able to articulate what you do quickly (your value proposition) and capture people’s imagination and passion. Don’t squander that golden opportunity with the following answer: “I’m just the...” and then your title. Snoozer.

6. It’s competitive out there! When you use these words you don’t differentiate or set yourself apart in any way. You might as well say, “Please ignore me and talk to the next person.” When people attempt to engage you in conversation, believe that they want to find some common ground. Your job is to engage with others and to display an open willingness to take the conversation to a deeper level.

7. It’s all about attitude and mindset. “I’m just the…” speaks volumes about your attitude and mindset. Whether accurate or not, once the message is sent, KUES / FREEPIK the perception is set. Perception becomes reality and then it becomes very hard to turn that ship around. Don’t make things harder on yourself than they need to be.

Perception is reality.

8. It does matter what people think! When you were growing up, did your parents ever say, “It doesn’t matter what others think?” While that may be true in certain situations, when it comes to selling yourself, explaining your position or seeking consensus, it does matter what people think. Please be very careful about your word choice when you are engaged in a conversation. Don’t make it easier to be dismissed by others by uttering the words ‘I’m just the...”

9. Respect. When you hold yourself accountable and refuse to hide behind “I’m just the...” you show the world that you accept responsibility for your position or your opinion on a situation – regardless of outcome. Avoiding “I’m just the...” will earn you respect and admiration.

If you have ever wondered why you have not gotten something you want, consider that your use of these three words might have been the roadblock in your mission. Attitude is everything. Even if you have not said the words aloud, you may still be telegraphing this mindset. Watch your words and watch what happens.

You are important and vital. Tell the world!

TODD COHEN, CSP, is a speaker, sales culture expert and author of “Everyone’s in Sales” and “Everyone’s in Sales; STOP Apologizing.” Since 1984, Todd has led sales teams to deliver more than $850 million in revenue for leading companies including Xerox and Thomson-Reuters. Visit www.ToddCohen.com.

32 | www.cedmag.com | Construction Equipment Distribution | February 2017

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The Art Of

Influencing People By Christine Corelli

Y

our experience in the equipment distribution industry has likely taught you that you need more than equipment and/or technical expertise to achieve success. Communication and interpersonal skills, often referred to as “people skills,” are a must for anyone who wants to win people over. This holds true whether you are an owner, manager, salesperson, or technician.

Studies have revealed that 85 percent of your career success is in direct proportion to your ability to communicate. I disagree. I believe that 85 percent of your overall success in life is in direct proportion to your ability to communicate your wants, needs, knowledge, and ideas to others. In today’s world especially, you need to be able to influence people – whether your goal is to improve relationships, have customers buy a maintenance program, create a “buy-in” for a change initiative, create a winning team, gain support, or all of these.

The ability to influence people can seem elusive to some. Others seem to be born with it. They can convince

34 | www.cedmag.com | Construction Equipment Distribution | February 2017

an average-performing worker to put in extra effort and excel; they can persuade an office manager to learn how to step in to find parts when the parts department needs help. Other people seem to struggle just getting people to comply with their simple requests.

Influencing people is as much a learned skill as it is an innate ability.

Here are some techniques that will assist in your efforts to perfect the art of influencing others: 1. Size Up First, you must know how to tailor your conversations to the personality of each person with whom you interact. Each of us is unique and, consequently, we respond differently to persuasion. Some people feel easily threatened; others seem oblivious to subtle persuasion.

Some individuals naturally trust other people while others are skeptical – especially customers! Vary your approach to each person. As you read these various techniques to influence others, keep in mind the personalities of those with whom you interact.

In the rough-and-tumble world of construction,

there’s not a single day that goes by where you don’t need to influence people.

2. Access the Agenda Understand the personal and professional agendas of those you're trying to influence.

You have your objective, but what’s theirs?

Does it conflict with yours? Is it compatible?

Discover their WIIFM (What’s In It For Me?) analysis and speak from there. Understand their daily challenges and what it’s like to walk in their shoes – especially, for instance, when a customer’s business has been compromised because a machine broke down on a job site and they had to wait a long while for a technician to come out.

3. Attitude Determine the overriding attitudes of those you seek to influence. How do their beliefs and attitudes relate to your objective? Do they value hard work? Do they have a positive outlook? If so, you are in a far better position to win them over.

4. What’s Happening?

What’s their current state of mind? Is anything happening that affects their current perceptions? For example, if you’re speaking with a customer who is worried about a backordered part, maybe now isn’t the time.

5. He Said, She Said How can you better communicate when gender differences are involved? Men and women react differently. For example, men may be less likely to ask for help from women.

(Nor will they ask for directions!) If you’re a woman supervising a group of mostly male subordinates, you may have difficulty getting them to open up when you ask for ideas and suggestions. If you’re a man seeking to influence a group of women, you’ll need to be sure you don’t come across as domineering or closed-minded. Don’t forget what research has revealed: the number one difference in communicating with a man versus communicating with a woman is that women need far more communication than men.

6. Culture Check Cultural differences can influence an individual’s behavior. In some cultures, personal recognition is considered

embarrassing. In other cultures, it’s considered rude to discuss business without first getting to know the other party. Still other cultures frown on loud, boisterous appeals, while others expect it. If you know you’ll be interacting with those from a culture different from your own, make sure you learn more about their background.

7. Be Direct The direct approach is usually the most effective way to get your point across or bring an important matter to someone’s attention.

It’s also respectful of other people’s time.

“Joe, I know you're busy, so I'll be brief: we have a serious matter to discuss. The customer is not happy with the service he received. Be straight with me. Tell me what happened.”

8. Talk Smart You’ll find it easier to influence others if you can memorize a few simple words and phrases that, if applied, will help you to get the results you want. It’s also important to know which words and phrases to avoid – better yet, eliminate – from your vocabulary.

Let’s first look at the positive expressions and a few examples for each. As you review them, think of the situations where you might apply them.

Good Speaking Habits

▶ “It’s been my experience that a one-shot safety training program doesn’t work. We need to provide ongoing training for our people.” ▶ “I’m confident that our new business strategy will dramatically increase revenue.” ▶ “I appreciate how quickly you responded to our invitation to our special event.” ▶ “I really liked the way you explained our maintenance program to that customer.” ▶ “It looks as if you still have a lot of parts to put away before you leave today. What can I do to help?” ▶ “That’s a good point. I didn’t know we could buy that printer for less than $500.” ▶ “Thank you” is the most important

.

phrase in your business and personal life. Say it often. And when someone thanks you, if you reply, “You’re more than welcome,” you will become memorable.

Don't dictate

If you are in management, you may have the authority to tell people what to do, but the language you choose can make a difference in whether people willingly do as you ask. They may do what you say, but they may not produce quality work; or worse, you may lose their respect and come across as dictatorial. Refrain from using phrases that dictate to people what they must do. No one likes to be commanded or ordered to do things.

Other phrases to avoid are those that weaken your position. Notice the subtle differences in the following examples: The words you use can make or break your ability to influence people. You may have the greatest ideas, the greatest team, the best products and services, but if you don’t learn and apply the right words and phrases, it really won’t make much difference.

Cooperative Phrases

You can influence others with cooperative phrases that help to deter any resistance you might encounter. These make the other person feel as if you and he or she are in this together.

You can influence cooperation with phrases such as: “ I would appreciate it if ...,” “Can I rely on you to ...,” “What do you say we ...,” “What can I do to help you ...?” and “I’m confident you will ....”

Ask the Right Questions

Many times, people won’t readily state their opposition to your ideas. They might not want to face confrontation, or perhaps they haven’t fully identified what they dislike about your points. Whatever the reason, you can identify others’ needs or challenges by simply asking questions to learn what’s on a person’s mind.

Remember: Questions lead to answers.

Answers lead to rapport. And rapport leads to uncovering what the other person wants to know. As you ask your questions, stay focused on the other person. You can do this by being “you” conscious, as in: “What are some of the challenges you are facing?”

“What’s the most important thing to you

February 2017 | Construction Equipment Distribution | www.cedmag.com | 35

about the tractor you will buy?”

Asking questions is beneficial because the answers can provide you with insights you might not otherwise get if you simply make statements and assume that the other person accepts them just because you do. Asking questions also gives you the opportunity to observe the other person’s personality and body language. Most important, when you ask another person for their input, you show you have a genuine interest in them.

Listen and Respond

After you’ve asked a question, make sure you listen to what the other person has to say; and respond to what they’re feeling, not necessarily to their words.

I’ve observed several people who ask a person a question, but never really listen to what they have to say. If that’s how you respond, then you might as well not ask questions in the first place.

Listening in order to influence requires far more than opening our ears, and asking a disingenuous question is mere lip service.

When you ask questions, make sure you let the other person answer completely – don’t interrupt. Instead, ask them to tell more. Also, make sure you stick to their subject, and if possible use their words to get your point across. Let’s look at how the previous exchange between a construction financial manager and a vendor might have gone with better listening and response skills: Again, don’t forget to watch a person’s body language. As you listen and respond, listen to not only their words, but also what they may be thinking and feeling.

Paraphrase

To be sure you’ve understood the content of the other person’s message, paraphrase what they said. Remember to use your own words, or you may be perceived as a person who gives lip service.

Paraphrasing not only clarifies and confirms your understanding but also shows your interest and attention.

Here are some common phrases for introducing paraphrasing: “Oh, so you feel that ...,” “You’re concerned that ...,” and “You want to be confident that ....”

Here’s how you might use them: President: “I don’t know. I’m concerned that will not satisfy the customer.”

You: “You’re concerned that he would feel we didn’t do enough?”

President: “Exactly.”

Paraphrasing will help to make sure that you understand the other person’s concerns. Once you comprehend their issues, you’ll be in a better position to address those concerns and, ultimately, to influence the other person to accept your ideas.

breath with no pauses. Try it, and you may find that almost every time, the other person says yes. Just be sure that you never sound pushy! Read through these examples: “Here’s what I’d like to propose: You can come to the showroom tomorrow and I’ll introduce you to the owner and our parts and service manager. Would that be convenient for you?”

“What I’d like to do is speak to the operator personally. Would you be comfortable with that?”

So remember, influence is all about action, and if you don’t give the other person a specific action to take, then all you’ve done is present your viewpoint.

Be Assertive

The ability to be assertive with tact and diplomacy is a must, as influencing others comes easier to those who are more assertive.

Not to be confused with aggressive people, assertive people have a depth of understanding about themselves and others. They know what they want and how they feel. Most importantly, they know how to communicate those feelings to others.

Regardless of your job position, in the rough and tumble world of construction, there’s not a single day that goes by where you don’t need to influence people.

Learn, apply and experiment with what works best for you.

Then you will become a master at the art of influencing people.

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.

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Closing the sale is not only important in selling situations, but anytime you want to influence someone. Following are effective examples of how to ask for what you want: “Can I write it up for you?”

“May I order the part for you, Sir?” You’ll notice that in these examples, the request came in the form of a question. Here’s a tip you can take to the bank: Ask a question immediately after stating what you want. The key is to make sure you move from your request to your question in one 36 | www.cedmag.com | Construction Equipment Distribution | February 2017

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Focused on the Future: Caterpillar Lays the Foundation For A Better Workforce By Heidi Bitsoli

Tony Fassino, Region Manager at Caterpillar Inc., works with CAT dealers in the eastern U.S. and also serves on The AED Foundation board and was the recipient of The Foundation Champion Award at the 2017 AED Summit in January.

T

hese days, graduating from college with a four-year degree is viewed as a ticket to a secure future. But remember the days of vocational-technical schooling, where high schoolers toiled away in shop and automotive courses? Sometimes they walked away knowing how to keep their cars running. Sometimes they found a career.

The AED Foundation Caterpillar Inc., for one, would like to see a return to those disciplines. More of that would go a long way toward filling labor Donor Spotlight and skill shortages. The industry is experiencing a skills gap, and Your donation fuels the according to a 2016 College of William & Mary research work that allows The AED study (bit.ly/AEDFSkillsGap) commissioned by The Foundation to develop a AED Foundation, “Among AED members, more than dealer model for success. The 50 percent report that the inability to find qualified future of dealerships depend technicians hinders business growth and increases costs on how we come together to and inefficiencies.” Obviously, if this gap is bridged, build our industry's workforce. it would mean better-paying and more secure jobs Thank you, Caterpillar, for for individuals, as well as higher profits and customer investing in the future of our satisfaction within the industry. industry!

Tony Fassino, Region Manager at Caterpillar Inc., To contribute to The AED works with CAT dealers in the eastern U.S. and also Foundation annual campaign, serves on The AED Foundation board and was the visit bit.ly/2017aedfcampaign. recipient of The Foundation Champion Award at the 2017 AED Summit in January. As Caterpillar primarily works with the Foundation on workforce development, Fassino can attest to the crucial role the right education plays in the industry.

“We need the right people,” Fassino says. “(That’s where) The AED Foundation comes in.” The Foundation was formed by distributors and manufacturers coming together with a common goal in mind.

“Vocational-tech education – and the teaching of it – has gone away.” And high schools, junior colleges and four-year institutions need to teach the skills used in the industry. Heavy equipment technicians are sorely needed. “It’s one of the biggest untapped fields,” he says.

“It can be a huge benefit for the kids” to pursue this type of schooling. “Some don’t want to go to a fouryear university . . . Vo-tech (seems to have a) stigma, but it’s a rewarding experience.” For vo-tech grads, “placement is a no-brainer,” he adds.

“We need to get to kids earlier, and bring back shop,” he says. Caterpillar works with The AED Foundation to develop accredited education programs and raise awareness of industry needs and challenges. “Everybody is supporting their own success,” Fassino says. But Caterpillar does more, by collaborating with “Dirty Jobs” star Mike Rowe’s mikeroweWORKS Foundation, which provides trade school scholarships.

For some time, four-year degrees have been seen as the way to a better path in life, but there aren’t necessarily so many jobs available for those graduates these days. And frankly, some don’t want to go to a four-year university. Many students will never be exposed to vo-tech programs, either, and as a result, some may never be introduced to the career option that suits them best. Moreover, school counselors rarely push that path.

“You have to fix education,” Fassino urges. Besides working with AED and Rowe’s foundation, Caterpillar has its own ThinkBig program, which Fassino says was “born of need.” ThinkBig enrollees work toward a two-year degree in applied science and learn a variety of technologies, which in brief can be used to repair more than 300 Cat machines and engines in multiple industries, including agriculture, forestry, construction, road building and much, much more. “I would selfishly say we have one of the bigger and better programs,” Fassino says.

And Caterpillar does have a broad reach, with offices around the globe, more than 97,000 full-time employees worldwide, and 2015 sales and revenues surpassing $47 billion.

Those in the field can work up to a six-figure income, Fassino says. Sure, on day one that won’t be the case, but starting pay is as good as, and sometimes better than, what a four-year degree holder may earn. Plus, the field is stable and there’s room for growth and advancement. “If you can find someone with skills, they’ll get hired. The demand is there. This acquired skill is valuable.”

Youth who are into gaming and electronics may find this a path they’ll enjoy pursuing. With diagnostics and more, “it plays right into the hand of what kids are into,” Fassino says. “(These programs) support kids’ futures and in turn (they serve) U.S. needs.” It’s a win-win for all.

38 | www.cedmag.com | Construction Equipment Distribution | February 2017

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Beyond Manual Labor: Komatsu On Board With Educating Tomorrow’s Technical Workers By Heidi Bitsoli

Mike Hayes has been a driving force in Komatsu’s support of The AED Foundation and its workforce goals, helping develop its school accreditation program and encouraging Komatsu dealers to take advantage of the Foundation’s educational offerings.

“T

oday the tech with the most structured troubleshooting and electronic skills is the most valuable tech a dealership can have. The day of the strongest backs and most willpower to swing the sledge are gone.”

That is how Mike Hayes, director of distributor development with Komatsu America Corp., sums up one of the largest obstacles facing the The AED Foundation construction equipment industry today.

For its leadership role in tackling industry challenges, Komatsu Donor Spotlight received the Foundation Partner award at the 2017 AED Summit held Your donation fuels the mid-January in Chicago. work that allows The AED Hayes has served on The AED Foundation board and has Foundation to develop a been the board’s Komatsu representative for several years. dealer model for success. The Komatsu is a major global manufacturer and supplier of future of dealerships depend earthmoving and mining equipment. Hayes has been a driving on how we come together to force in support of Foundation and workforce goals, helping build our industry's workforce. develop school accreditation programs and encouraging Thank you, Komatsu, for Komatsu dealers to take advantage of The AED Foundation’s investing in the future of our educational offerings. industry!

Hayes has spent his entire career in the construction To contribute to The AED industry, spending the last 17 years with Komatsu America Foundation annual campaign, Corp. visit bit.ly/2017aedfcampaign.

His involvement with The AED Foundation stems from the end goal of “progressive change.” According to Hayes, getting involved “was a question of how do you improve the industry for all brands and establish a sort of neutral ground for all parties involved – the solution was The AED Foundation. Instead of competing, everyone collaborates to improve industry outcomes. It is an opportunity to talk openly and strategize for the betterment of the industry.”

One unifying goal for the Foundation from the beginning has been to create educational opportunities and grow industry training programs. “All manufacturers involved agreed to the initial concept, and 17 years later everyone is still engaged in the improvement process,” Hayes says.

“We wanted to create change in the industry through education. As the equipment gets more innovative and high-tech driven, the industry needs better-equipped and educated technicians to be able to troubleshoot and repair the equipment. Compare it to your car – when you have a problem and take it to the dealership, the first thing they will perform is an electronic diagnostic checkup to help determine the root cause.“The challenge today is that you’re competing for talent,” Hayes says. Companies need skilled workers, but the U.S. military has federal dollars and recruiters to advertise and lure technical students away from our industry. Construction and automotive industries seek the same or similar skillsets, so competition is fierce. Add to that the fact that colleges are pushing four-year bachelor programs over technical associate degree programs. This makes the race to hire qualified technical talent even more intense.

“In the heavy equipment industry, change is constant,” Hayes says. “Besides keeping pace with technical changes and innovation, there is also the challenge of finding the right skilled talent for the jobs at hand. If you can’t find employees with the ideal skill set, the next logical step is to create the opportunities to educate and train the right people for the job.”

According to Hayes, “Innovation and technology are key with Komatsu. I remember when GPS was first starting out, and it was considered to be the height of the technology era – Komatsu was the first in the industry to offer complimentary GPS and telematics. Now intelligent machines and autonomous technology are the new cutting edge, and they will also have an impact on the skill set that is required in the future.”

The impact of the lack of skilled manpower is staggering. According to a research study commissioned by The AED Foundation and published by the College of William & Mary in 2016 (bit.ly/AEDFSkillsGap), nearly one million jobs remained unfilled in 2015, and the cost to AED members alone could lead to losses of approximately $2.4 billion a year. “The industry is losing out by not having enough skilled technicians,” Hayes says.

Enrolling in AED-accredited educational programs is a great investment in individual and industry futures.

“Schools can teach theory, and they have the latest and greatest technology from manufacturers.” Plus, Hayes adds, “Many of the technical colleges I talk to say students are having no problem finding employment upon graduation.”

He affirms that more than 90 percent of students have already found work by the time they graduate.

Working with The AED Foundation to shape policy and educational offerings is a solid investment in the industry’s future. “It is truly in our best interest,” says Hayes.

40 | www.cedmag.com | Construction Equipment Distribution | February 2017

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The AED Foundation Hosts Rental Management Certification Program for Komatsu Dealer Reps The AED Foundation hosted a three-day rental management certification program for 19 Komastu America Corp. dealer representatives from across the country Nov. 15–18, 2016.

Dealer attendees were taught skills in marketing strategy, finance, operations, personnel management and sales. All aspects of the training focused on rental-specific application in the marketplace. Prerequisition for the training required that all participants be currently employed with an AED member company and have a minimum of two years of experience in the rental industry.

“Rental penetration is now over 50 percent for Komatsu CE and UE models. It is vital for our distribution to have personnel skilled in rental management,” said Tom Stone, director of marketing – special projects. “These certified rental managers will apply learned skills to enhance the customer experience and increase profits for their companies.”

Komatsu’s Cartersville Customer Center and Rental Department hosted this event in conjunction with The AED Foundation.

This is the first time the certification program was presented in a live format; previously it was only available online. Komatsu is pleased to partner with AED and The AED Foundation to provide education opportunities for distribution.

42 | www.cedmag.com | Construction Equipment Distribution | February 2017

“The live format of this certification training brought the attendees the opportunity to learn not only from the instructors but also from other attendees. This networking opportunity brought added value to the training,” said Director of Sales and Development of The AED Foundation Rebecca Lintow. “We thank the KAC rental department for allowing us the opportunity to put this program together for the dealers.”

Attendees were required to pass a test at the conclusion of the training to receive their certification. With successful completion of the certification, each dealer representative is awarded the title of AED Certified Manager and is part of a select class of professionals who have met the rigorous certification standards set forth by AED and The AED Foundation.

The event included more than 24 attendees, with representatives from the following distributors: Brandeis Machinery & Supply Co., Waukesha-Pearce Industries Inc., Midlantic Machinery, Power Equipment Co., Power Motive Corp., Komatsu Equipment Co., General Equipment & Supplies Inc., and Road Machinery & Supplies Co. If you are interested in learning more about the AED Rental Manager Certification program, contact Rebecca Lintow at rlintow@aednet.org.

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The visitor at this year’s CONEXPOCON/AGG will have the opportunity to do more than imagine – they will experience a full-on view of what’s next in the advancement of the construction industry through the Tech Experience.

With emerging technologies sweeping through the industry, the 75,000-square-foot Tech Experience pavilion will allow participants to see firsthand what the future holds.

The space will allow for a glimpse of technology that will be available on the future job site, along with how to enhance the health, safety and productivity of those onsite. The Tech Experience will also show off the latest materials for improving infrastructure and where to obtain the skills needed for careers of tomorrow.

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44 | www.cedmag.com | Construction Equipment Distribution | February 2017

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE 2,500 exhibitors in 2,500,000 square feet of space.

Below are a few of the companies and institutions that will be on display.

Pillar Technologies

Since their beginning in 2015, Pillar Technologies has been working toward building the connected construction site.

The New York-based company currently offers an endto-end environmental monitoring solution designed to help contractors identify dangerous environmental conditions and how to take action to deal with them.

The company’s development was motivated by multiple conversations with large commercial contractors who expressed the need for more proactive information to make better decisions and protect company margins.

“Our technology is providing contractors with a way to improve quality and safety while reducing project setbacks and risk,” said Alex Schwarzkopf, cofounder and CEO of Pillar Technologies. “As the construction industry becomes more competitive and regulated, contractors will rely more and more heavily on innovative solutions such as ours to protect their profitability.”

During CONEXPO-CON/AGG, Pillar Technologies will be demonstrating their complete product experience, from their smart sensor modules to the Elements Platform, the company’s web dashboard.

There will be simulations that demonstrate real-world conditions and how the data generated can be used to make better decisions during the building process.

Their current product offering is the first in a line of technologies they are developing that connect the construction site, allowing contractors to make more informed decisions, prevent project setbacks and reduce waste.

“We have been working on this product for the past year and a half, and we thought the Tech Experience would be a great way to showcase our technology to the construction ecosystem for the first time,” Schwarzkopf said.

HBC-radiomatic Inc.

Having been in operation for approximately seven decades, HBC-radiomatic leads its corner of the market in the development and production of radio control systems for construction and industrial applications in 60 countries worldwide.

Established in Cincinnati in 1998, HBC-radiomatic Inc. evolved to become a leading supplier of safe radio control solutions in North America.

The purpose in the North American headquarters was to ensure the organization is equipped to offer the rapid delivery of systems, pre- and after-sales service, and the ability to expand to meet the specific needs of a growing customer base.

The technology that will be on display in March includes the radiomatic® photon, an assistant for the control of machinery in complex working environments. A video

camera is installed on the machine and provides live video to the color display of the radio control.

With this technology, the operator is able to see into areas that are hard to access, including blind spots.

Also, HBC will showcase the easy and safe management of access rights with merlin® Transmitter User Card (TUC).

This card serves as the key to activate the control and protects it from unauthorized use. Each card is individually configurable.

Finally, the systems will also demonstrate the HBC safety features radiomatic® shock-off/zero-g/inclinations switch for enhanced protection of the operator in specific emergencies. The addition of these innovations to HBCradiomatic’s comprehensive array of radio remote control solutions provides the industry with increased efficiencies and enhanced safety.

During the Tech Experience, there will be a sandbox to allow attendees to get hands-on time with scale models operated by HBC transmitters. HBC will also have a bulldozer with different obstacles for attendees to negotiate around and maneuver using their remote controls.

Says Jeff Allen, CEO of HBCradiomatic Inc., “The interactive experience is still in the development phase, but we envisage giving visitors varied challenges, such as knocking down a wall, picking up and moving aggregate material, and moving through construction obstacles. They will get handson experience operating our controls, getting a feel for their responsiveness and an understanding of the myriad of safety features.”

HBC-radiomatic will be displaying a comprehensive sample of their products and technologies at a booth at the CONEXPO-CON/AGG in the North Hall. The interactive display will be available in the Tech Experience’s Imagine What’s Next: Jobsite, Autonomous Vehicles and Remote Systems.

Zonar

Zonar, headquartered in Seattle, has pioneered smart fleet management technology since 2001 by providing innovative technology that is making fleet operations safer and more efficient.

Zonar’s fleet management system delivers its construction industry customers access to essential information, including locations, efficiency, speed, stops, idling and maintenance needs.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 45

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE During March, Zonar will be displaying Zonar Connect™, a nextgeneration tablet and software ecosystem aimed at empowering fleets to take greater control of their operations.

Connect allows fleets to enter the next era in fleet management technology using a smart fleet platform which is faster, more responsive, readily customizable and more user-friendly than current solutions in the commercial fleet marketplace. The tablet delivers management tools for commercial vehicle operations, including compliance, safety and efficiency monitoring.

Connect is also electronic logging device (ELD) ready. The tablet is self-certified as an automatic on-board recording device, allowing fleets to avoid hours of service violations which are new to the construction industry; maintain a low Compliance, Safety and Accountability score; and comply with ELD mandates going into effect in December.

“The construction industry is entering an age in connected commercial vehicles where the capabilities go beyond the individual vehicle and extend to fleet management and industry decisions regarding job bidding, safety, efficiency and compliance,” said Kurt Nantkes, senior vice president of sales at Zonar. “Zonar Connect is designed to address these changes and exceed industry needs with ELD readiness, Electronic Verified Inspection Reporting and a growing number of apps built in a scalable environment to address further down the road.

“We believe that Connect is the path forward for designing and delivering the next generation of solutions for the smart fleet management era,” he concluded.

Netarus LLC and Pix4D

Since 2002, the founders of Netarus have been developing the latest wireless, video and sensor technology, and then introducing that technology to the marine, industrial, transportation and construction industries in order to improve safety along with productivity.

To this end, Netarus manufactures and sells industrial-grade video monitoring solutions, such as HoistCam™, a rapidly deployable wireless camera system that allows the crane operator a view of any part of the job site, according to Chris Machut, chief technology officer at Netarus.

The HoistCam platform suite provides optional remote monitoring, recording and management analytics reporting to operators and site supervisors.

Netarus’ HoistCam Director enables centralized monitoring of the job site via HoistCam, other cameras and drones.

Netarus discovered years ago that the HoistCam camera system was capturing a significant amount of data from job sites. In addition, cameras are frequently deployed for security and to track the status of job progress.

“SiteTrax.io was developed to aggregate all of this information into a single platform that can process the visual data regardless of where the captured images are stored,” Machut said.

SiteTrax.io provides the glue to connect video and images to the analytics and data stored engines available to the industry. It is powered by Pix4D’s analytics engine, which generates orthomosaics, 3D point clouds and digital surface maps.

“SiteTrax.io reduces the burden of information overload in today’s 46 | www.cedmag.com | Construction Equipment Distribution | February 2017

construction environment by bringing all the tools together in one platform,” Machut said.

Netarus’ SiteTrax.io will be demonstrated during the Tech Experience. HoistCam and HoistCam Director will also be featured throughout the expo on many different cranes.

Also during the March expo, Pix4D will launch their crane camera solution, with live demonstrations. According to the company website, the system works by capturing images that are collected during normal crane operation and turns them into twodimensional maps and three-dimensional models in the Pix4D Cloud.

Ditch Witch

It was in the late 1940s when Ed Malzahn produced the world’s first service-line trencher, launching the underground construction industry and planting the first seed of the worldwide Ditch Witch organization.

Ditch Witch, a Charles Machine Works company, has the most complete line of underground construction equipment and parts.

That includes directional drills, drill pipe, horizontal directional drill (HDD) tooling, vacuum excavators, trenchers, chain, teeth and sprockets, mini-skid steers and vibratory plows.

The Ditch Witch factory, based in Perry, Okla., has in excess of 1,400 employees and the company’s equipment is distributed through a worldwide dealer organization that has more than 175 locations in more than 100 countries.

In March, the Ditch Witch organization will showcase a variety of new underground construction equipment and technology aimed at helping operators improve job site productivity and profitability.

The next generation of Ditch Witch horizontal directional drills with boosted power and enhanced drilling performance will be showcased. Also on display will be a selection of the latest ride-on and walk-behind trenchers with Ditch Witch-exclusive features for improved traction and maneuverability on job sites.

The company will also showcase its micro trenching systems that provide underground construction operators with a cost-effective solution for faster fiber installation, along with the newest mini skid steer models with enhanced operator platforms.

Finally, through the Tech Experience program, event attendees will get the opportunity to experience the new virtual reality training simulator for HDDs. The technology is aimed at the next generation of drill operators, helping to strengthen their skills. Operators will be fully immersed within a virtual reality HDD job site experience. The technology will simulate a real job site, allowing the user to sit in a virtual drill cab and use real joystick control technology to operate the drill in real-life environments such as urban areas, rural terrain and river crossings.

“HDD operators are in high demand, and this virtual reality simulator technology engages with the next generation of drill operators entering the market,” said Greg Wolfe, Ditch Witch director of training. “It provides Ditch Witch personnel the opportunity to train and prepare new operators with familiar technology in an innovative, immersive and engaging format.

Instead of putting them right on the job site, the simulator helps improve safety and immediate performance on the job.”

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE Royal Truck & Equipment Inc.

After 35 years in business, Royal Truck & Equipment has become the nation’s largest manufacturer of truck mounted attenuator (TMA) trucks.

Built with the latest technology, their TMA trucks are meant to protect highway workers from distracted drivers, particularly with roadway accidents increasing due to people texting while driving, driving drunk, and falling asleep at the wheel.

These life-saving trucks have the capacity to help the worker make it home at the end of the day.

In March, Royal Truck & Equipment will have three booths set up at the expo. Having just released the industry’s first multi-utilization TMA truck, they will display this “3-in-1” during the event. Visitors will have the opportunity to see how the 3-in-1 truck operates by trying it out themselves.

At the Tech Experience, Royal will be taking people through a virtual reality experience with the company’s unmanned TMA truck, the Autonomous TMA (ATMA) truck, launched in August 2015.

Since a TMA truck is meant to be hit in a work zone, the driver sitting in the truck is simply waiting to be struck. The ATMA eliminates the possibility that a driver could be in harm’s way.

DOTs and a number of construction conglomerates have expressed interest in hosting a pilot program to test the new technology in their work zones.

“As the country’s infrastructure decays more, and more road construction is needed, a lot of states are starting to recognize the value of these trucks,” said Rob Roy, president of Royal Truck & Equipment. “Every day we feel better and better about what we do, and that is the juice that keeps us going when we build these trucks.”

Also in March, event attendees will have the opportunity to see Royal’s truck for breast cancer awareness at one of its booths. A 2017 Hino, painted pink, raised awareness and funding throughout 2016 for the National Breast Cancer Foundation.

Institute for Advanced Architecture of Catalonia

Institute for Advanced Architecture of Catalonia (IAAC) is an experimental and experiential center where the participant has the opportunity to learn by doing.

The aim of the IAAC follows the digital revolution at all scales to expand the boundaries of architecture and design and meet the challenges faced by humanity.

Founded 15 years ago in Barcelona, Spain, the mission of IAAC is imagining the future habitat of society and building it in the present, according to institute officials.

Part of the future is the advent of three-dimensional printing, which has been researched in different disciplines but mostly on a small scale. IAAC is aiming to bring this new manufacturing technique to the architectural scale.

During March’s Tech Experience, IAAC will present two related projects, including Pylos and Minibuilders.

In view of the environmental and economic crisis, IAAC has been investigating the possibility of onsite additive manufacturing and fabrication with all-natural materials.

Research projects including Pylos focus on the behavior of the soil for 3D printing when mixed with other ingredients, toward a better

understanding of the material and potential composites.

In regard to Minibuilders, robotics offer potential toward innovation within the construction industry. However, in their current implementation applied to the architectural field, these systems share a specific limitation — the scalability.

Research projects such as Minibuilders aim to address this particular limitation through the creation of a technology that is scalable and capable of fabricating structures using tools that are independent of the final product’s shape or size.

IAAC will be part of the Tech Experience and the Tech Talks during CONEXPO-CON/AGG 2017 and will offer a demo of Pylos and Minibuilders.

Robo Industries Inc. Liang Wang, cofounder of Robo Industries Inc., pitches a scenario to help an outsider understand what his company is trying to achieve.

It starts at 8 a.m. one day, when the contractor is awarded a project. The contractor has six machines, but rather than hiring ten people and scratching his head about how to get the job started, he creates the project finish profile and operating parameters through the Robo CloudTech system.

With a single click of a button, all machines start operating autonomously.

That afternoon, and again later that evening, he tracks his machine statuses and project progress through a mobile phone.

The following morning, he receives a message stating that the project is done, and all the statistical information is viewable.

“This effortless, even enjoyable, approach to work is exactly what we are trying to achieve,” Wang said.

Robo Industries Inc., a start-up company based in Houston, Texas, is dedicated to providing artificial-intelligence-based control solutions for heavy equipment through full autonomous operations.

The company, formerly known as Autonomous Earthmoving Equipment LLC, has been working on the current Autonomous and Intelligent Machine Control Project since 2014.

“Compared with existing operator-aided products or semiautomatic systems such as GPS or laser-based automatic grading systems, we provide fully autonomous capacities that don’t require human involvement during the operation,” said Wang.

Innovations include machine self-driving and navigation; intelligent and accurate 3D operating control; real-time terrain and environment data-driven mission planning; machine learning for intelligent decision making; cloud-based data synchronization and analysis for smart project management; and multiple machine group control.

In the works for the past few years, Autonomous and Intelligent Machine Control has been developed. According to Wang, the system can plug into an existing machine, such as a bulldozer, and convert it into a fully autonomous and smart robot that delivers selfdriving navigation, accurate operating control, reliable environment awareness and collision avoidance.

During the March expo, Robo Industries will have a demo machine, all the sensor packages, the control hardware, electronic systems and AI software available to let attendees have firsthand experience with the equipment offered by the company.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 47

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE “The whole construction and mining operations will evolve into an automatic unmanned, efficient, data-driven and safe process due to the advancement of the AI technologies,” Wang said. “It is not a dream anymore, it is a reality.”

Hilti Inc.

Founded in 1941, the Hilti Corporation develops and manufactures products, services and software that feature leadingedge technology in order to improve the safety and productivity of the construction industry.

With that in mind, Hilti will be involved in March’s Tech Experience, featuring their ON!Track asset management system.

More than $1 billion in valuable tools, commodities and consumables are lost each year. Keeping track of these assets and monitoring important items like required certifications, inspections and maintenance records can be a time-consuming hassle for the construction professional.

The Hilti ON!Track asset management system was designed to tackle these problems and, in the process, save contractors money and reduce their liability.

The system gives contractors visibility into who has their assets and where they are located, tracking them as they are moved between warehouses and job sites, according to Hilti officials.

ON!Track also enables contractors to proactively manage repairs and inspections, set reminders for maintenance, and verify proper training/certifications before assigning certain assets.

Simply put, no more large spreadsheets or whiteboards.

ON!Track, a three-part system including Cloud-based software, scanner and tags, and onsite and remote support, will be on display in March.

“We look forward to attending CONEXPO 2017 to showcase our innovative new products, services and software to some of the largest construction contractors in the world,” said Hilti Trade Manager Robert Gemperle. “A show of this magnitude gives us the opportunity to work with these companies to further advance the safety and productivity of the construction industry.”

Convoy Technologies

Coming from the team that brought Convoy Technologies is MuHu, a live-video and advanced driver assistance system (ADAS) driver safety application.

Harnessing smartphone cameras, image processing, and invehicle networking, MuHu’s ADAS technology proactively prevents accidents. This is done with a series of warnings and alerts for such things as forward collisions, lane departure, running posted traffic signs, running traffic lights, follow distance, and speed detection, according to its creators.

According to a release from the company, “This is a revolutionary product within the industry. There are no competitors except for the limited capabilities of an event data recorder or EDR companies.”

During the CONEXPO 2017 Tech Experience, the company will provide an interactive live demonstration of MuHu and its ability to use a driver’s smartphone to stream live video to a web portal for the fleet manager. They will also show support analytics of additional 48 | www.cedmag.com | Construction Equipment Distribution | February 2017

features built with ADAS technology.

“By demoing MuHu and its visual intelligence capabilities, we can show how and why machine learning, connected vehicle and open platform technology are the future of the industry,” states the release.

MuHu is aimed at developing a safe road in the future, according to company officials. Leveraging artificial near networks and big data, MuHu mimics the complexities of the human brain.

“Meaning, it makes deep connections across large data sets, learns through experience, and evolves its own algorithms, so that you can protect your people better today than you could the day before,” according to the release.

JCA Electronics Integration Center

JCA Electronics serves mobile equipment manufacturing companies in the construction sector through the design, manufacture and support of an array of electronic control components and systems.

The goal of the company is to enable innovators by putting together electrical, electronics and software systems that implement various application ideas of their customers.

This is done by providing technology building blocks that can be easily configured and adapted with application-specific software and providing the expertise to design robust and reliable systems using these building blocks, according to John Anderson, president of JCA Electronics.

“These building blocks include controller and telematics platforms,” Anderson says, “as well as software libraries and modules that can seamlessly integrate smart devices into the operation and monitoring of the equipment, and can foster the development of full or partially autonomous vehicles that utilize such features as remote operation, data collection, and prognostic tools to improve the experiences and ROI of the operator, job site and the OEM.” During March’s Tech Experience, JCA Electronics will be demonstrating the JCA control system on a model bulldozer with ripper.

Through the control system, JCA Electronics will be demonstrating on the bulldozer, allowing participants to get an idea of what can be done through a phone or tablet, on not only the model but on the real equipment.

Outside of operational and monitoring capability, JCA will also demonstrate mapping tools, environmental information, data logging, prognostic features and sensor information — some of the features that are the building blocks of an effective autonomous vehicle.

“The Tech Experience is a natural evolution for us, as we normally do this kind of presentation at our booth but utilizing less capable or robust Lego equipment,” Anderson said. “Through our experience, we have learned what can be effectively demonstrated and what catches people’s interest, and at this exhibit we can interact at a whole new level with attendees, and, hopefully, complement and compete with the efforts and products that the other participants put forward.”

At KOBELCO, we’ll always be one step ahead. That’s why we’ve added new machines to our lineup, found new ways to get even more power and efficiency out of existing machines, expanded our dealer network and started building machines right here in the U.S.A. Visit us at CONEXPO and see what sets us apart – like our latest Generation 10 machines, along with a hybrid, demolition, long reach and other specialty excavators. Plus, our new KOBELCO app is ready for you to compare us directly with the competitors – without the need to walk the halls.

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50 | www.cedmag.com | Construction Equipment Distribution | February 2017

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YOUR 2017 CONEXPO-CON/AGG EXPERIENCE MARCH 7-11, 2017 | LAS VEGAS, USA

CHOOSE FROM OVER 140 EDUCATIONAL SESSIONS IN 10 EXCITING TRACKS!

This year, you can even take the NCCCO crane operator practical exams right at the show!

Technology: The latest tech innovations and future growth opportunities Aggregates: Current methods and trends in quarry production and plant design Asphalt: Innovations in paving, recycling, materials and plant management Concrete: Advances in concrete materials, masonry, production and plant management Cranes, Rigging and Aerial Lifts: Regulations and safety in crane, rigging and aerial lift operations

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Trucking

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Underground Construction

52 | www.cedmag.com | Construction Equipment Distribution | February 2017

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February 2017 | Construction Equipment Distribution | www.cedmag.com | 53

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE MARCH 7-11, 2017 | LAS VEGAS, USA

CHANGING THE WAY

WE WORK P

racticing engineering in the year 2017 can be intimidating at times.

Computer technology continues to find roots deeper and deeper in building processes, and new manufacturing methods and materials seem to appear on the internet each month. For some, this could mean simplifying annoying tasks throughout the day, but for others, it could mean eliminating most of their responsibilities entirely. The question remains: How is this going to change the way we work?

History has answered this for us: gradually. Not all at once. There are likely hundreds of regulations to be satisfied before we can use a certain new grade of carbon fiber reinforced concrete. Popular 3D printers are exciting and important, as they’ve paved the way toward large-scale additive manufacturing, but they’re not going to be replacing our current technology in the next couple of years. People are fearful that fully automated processes are going to replace them on the construction site, but that’s not happening anytime soon.

That doesn’t mean the industry is going to remain as it has been for many years. The construction industry is just one of many that will definitely see major change as we enter this new age of tech. At some point, preformed-concrete parts might not need to be delivered, but rather will be manufactured onsite with the help of CAD (computer-aided design) and additive manufacturing. And construction managers need to be ready to expect deliveries from trucks that have no drivers in them!

It will be easy and instinctual for a lot of people in the industry to reject these newer, untested methods. Whether workers believe it will inhibit productivity or eliminate jobs, it’s important to see these as opportunities for progress in the industry. These won’t arrive tomorrow, but we can expect them in due time.

Andrew Peterman is an engineer at Panasonic North America. He graduated in mechanical engineering from University of Illinois in 2016 and specializes in product design and development.

54 | www.cedmag.com | Construction Equipment Distribution | February 2017

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YOUR 2017 CONEXPO-CON/AGG EXPERIENCE MARCH 7-11, 2017 | LAS VEGAS, USA

TOP STRATEGIES FOR ANALYZING

TRADE SHOW RESULTS I

t's no secret that trade shows are a major investment of marketing dollars. So regardless of booth size, you’ll want to justify that investment by measuring results.

Joe Federbush, president, EVOLIO Marketing and Exhibit Surveys Inc., says developing a solid strategy and determining the outcomes you expect from each show are key to measuring your return on investment.

We caught up with Federbush at the CONEXPO-CON/AGG & IFPE 2017 Exhibitor Meeting to ask him about his strategies for analyzing trade show results.

What are some effective ways exhibitors can promote their booth before the show?

Calls and emails take the least amount of resources, and when done well, can get a good bang for the buck. Salespeople should be reaching out to their customers and prospects to set up meetings at the show. A lot of emails can get caught in spam filters and be considered junk mail, so make sure your subject line is spot on and has a strong

call to action that gets people to want to open it.

How can exhibitors measure their ROI when participating in a trade show?

Depending on your company size and budget, there are several ways you can measure ROI. Something as simple as doing observations of your exhibit, your staff and the activity of people in your booth is a great place to start. From there you can expand into detailed surveys, lead scoring and social media sentiment tracking.

If an exhibitor has a limited budget, what is the one thing they should focus on measuring?

I would measure how many of their targets they are attracting through the quality of their leads because anyone can do that regardless of budget.

Where do you see exhibitors falling short in terms of measurement?

Resources. Marketers are told to do something but are not given the time, budget or head count to do it. I think it’s most important to first plan what you’re trying to

56 | www.cedmag.com | Construction Equipment Distribution | February 2017

accomplish and how you can get there so you can do it effectively and efficiently.

What amount of an exhibitor’s total budget should be dedicated to measurement?

Typically, three percent is sufficient whether you’re spending $1 million or $10,000.

That’s the sweet spot.

What advice would you give to a first-time exhibitor?

Partner with the show organizer. Ask them questions.

See what resources or tools they can provide. The one thing that’s probably most underutilized by exhibitors is getting help from the source of the event.

Most importantly, look at exhibiting as an investment in your brand and company, not as an expense in your marketing budget.

Joe Federbush presented the session “Data & ROI – The Value of Measurement” at the August 23 CONEXPO-CON/AGG & IFPE Exhibitor Meeting in Chicago. To view the full presentation, visit the CONEXPO-CON/AGG website.

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE

WORLD’S FIRST

3D-PRINTED EXCAVATOR

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or the past two years a conglomerate of trade associations, industry, government and academia have been collaborating on the world’s first operational 3D printed excavator.

That project made a giant leap forward with the recent printing of a prototype that leveraged largescale additive manufacturing technologies and further explores the feasibility of printing with metal alloys.

Known affectionately as Project AME (Additive Manufactured Excavator), the excavator is being 3D printed using various machines at the Oak Ridge National Laboratory’s Manufacturing Demonstration Facility (MDF) to create and assemble three components: the cab, the boom and a heat exchanger. The excavator’s boom will be fabricated using a newly developed free-form additive manufacturing technique to print large-scale metal components.

3D printing an excavator for the first time has been a learning experience for both seasoned researchers and the next generation of engineers.

A student engineering team

from the University of Illinois at Urbana-Champaign won a design competition and was on hand at the MDF to watch their cab design take shape on the big area additive manufacturing machine – using carbon fiber-reinforced acrylonitrile butadiene styrene, or ABS, plastic. Their reaction could only be described as pure joy.

“The reaction of the UIUC team was like watching kids on Christmas morning,” said John Rozum, show director for IFPE 2017. “They worked hundreds of hours on this project and it was incredible to see them finally get to watch the printing process and see their design in full size.”

The excavator is a collaboration between the Association of Equipment Manufacturers (AEM), the National Fluid Power Association (NFPA), the Center for Compact and Efficient Fluid Power (CCEFP), the Oak Ridge National Laboratory (ORNL) and the National Science Foundation (NSF). This project was supported

by DOE’s Office of Energy Efficiency and Renewable Energy – Advanced Manufacturing Office.

CCEFP academic partners – Georgia Tech (GT), University of

Illinois, Urbana-Champaign (UIUC) and University of Minnesota (UMN) – are leading the research activities for Project AME. A GT research team is designing the additively manufactured steel boom, stick and bucket. A UMN research team is responsible for the aluminumpowder bed 3D-printed oil cooler design. The Oak Ridge National Laboratory (ORNL) is developing all processes required to 3D-print these excavator components.

“The project idea came about during a tour of ORNL in 2014, when members of the CCEFP saw the 3D-printed car,” said Eric Lanke, chief executive officer of NFPA. “Discussions ensued about what could make a similar splash for the fluid power and mobile equipment industry. Like many brainstorming sessions, one thing led to another and it was decided that a working excavator was a natural fit.”

Project AME will be on display at IFPE and CONEXPO-CON/ AGG 2017 as part of the new Tech Experience.

Originally published by IFPE on September 28, 2016

February 2017 | Construction Equipment Distribution | www.cedmag.com | 57

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE MARCH 7-11, 2017 | LAS VEGAS, USA

AUTO-PERMITTING: A WIN-WIN FOR HEAVY HAULERS

By Mike Chalmers

C

urrently, 30 states within the nation’s “lower 48” issue automatic permits for heavy haulers, and the Specialized Carriers and Rigging Association (SC&RA) has been steadily advocating for autopermitting across the country. The states that auto-issue continue to sing its praises, while those still on the fence cite concerns like cost, congestion and trust issues with data.

Fifteen or twenty years ago, you could probably count on one hand the number of states in the U.S. that had any semblance of an automated system. SC&RA Vice President Steven Todd has seen quite a change since then.

“Now, in many states across the country, a driver can apply for a permit from home on a Saturday night, and without any manual involvement [if all points connect on route, weight, dimensions, etc., via the analysis], automatically receive a permit back within seconds – twenty-four/seven,” he said.

Todd admitted that the use of permit technology has exploded, and he sees an additional chance for states to benefit from the opportunity.

“What we’re also doing now is encouraging all the states that have auto-permitting, but to date have been ultra-conservative with what dimension and weight they will auto-issue, to raise their thresholds,” he said. “These systems cost a lot of money, and what we’re trying to impress upon them is that ‘you paid for this, so get your money’s worth and raise the thresholds.’”

58 | www.cedmag.com | Construction Equipment Distribution | February 2017

Todd is referring to a current threshold of 14 feet wide, 14.5 feet high, 110 feet long and 150,000 pounds that 19 states have agreed to – a sweet spot, if you will – where auto-issuing permits up to those dimensions have been approved. “They’re doing it successfully and safely,” he emphasized.

“In fact, we’ve got two of those states presenting at the Specialized Transportation Symposium in March.”

Many of the states on board agree that raising the threshold is a very effective way for states and member companies to save an incredible amount of time and money.

“In this business, half a day can make all the difference in terms of getting that driver on the road,” Todd explained. “Too often, one of our members might have as many as ten employees just sitting at a state line or a jobsite – waiting on a

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“With the states that have upped their thresholds, we’re seeing permits that used to take several hours or days to get issued now taking seconds. That’s an enormous enhancement to the industry overall.”

A Balancing Act

Matt Hedge, a transportation specialist with the Pennsylvania Department of Transportation – Highway Permits Section – certainly appreciates Todd’s enthusiasm for auto-issuing, as well as a threshold “sweet spot,” but also understands why some states need more time.

“I can understand [why some states are hesitant]. It’s difficult to front that cost for the system when you’re only processing twenty thousand permits for the year,” he stressed.

“If you have to spend half a million, a million, or more to put in a system, well, that’s a huge expense when you think that it’s going to take five to ten years to pay for itself. And another thing is the data. If you don’t have that road management system to make those decisions, then it’s not going to do you any good anyway.”

But for Pennsylvania – the keystone state in the Northeast – Hedge knows the system is vital.

“I can’t speak for the other states, but in Pennsylvania, we have really good data. We have a bridge management system, a road management system, road construction management systems – and it all ties in to our automated permit analysis. I don’t know if the scope of this information is available in other states, but Pennsylvania determined a long time ago [the PA auto-permit system has been up and running since 1998] that the cost was well worth it.”

Hedge also highlights the value of the manual review that is built into the Pennsylvania system (and many other systems). “If there’s any question, then it goes to an actual engineer to review it. This really helps to legitimize the data and build that level of trust.”

As far as the struggles with trust in the data that some states experience, Hedge doesn’t see

60 | www.cedmag.com | Construction Equipment Distribution | February 2017

it that way.

“I see the data driving the analysis. If that data is available based on the information within the system, an automated system can make that decision versus a person filling out the paperwork. The rules you have in place will always be applied according to the system you have in place, and it reduces inconsistencies. It’s also a much better system for finding violators – especially when states are working together.

“Overall, states are going to make more money because haulers are going to seek more permits – it’s pretty simple. And more people will feel confident seeking permits because the process is so much more efficient, and that equals more people driving around the country with the best data analysis available.”

Making Headway

Geno Koehler, Permit Unit Chief with the Illinois Department of Transportation (an autoissuing state) can appreciate why some states remain conservative, but also believes that autopermitting has changed the culture of trucking.

“The advantages are enormous; it’s enhancing everyone’s world,” he said. “The speed of permit access has become an economic boost to states, and the efficiency is wonderful. In terms of congestion, if that’s what states are hung up on, I’ll put Chicago’s congestion up against anyone’s.”

Illinois DOT recently implemented Phase II of its oversize/overweight permitting system, allowing for automatic analysis of every structure along a given route for a given load. Koehler explains that next up for Illinois is cloud-based, one-stop-shop permitting that will further alleviate time and congestion issues for users.

“We’re looking at putting our information into the cloud and making it available to cities and townships and counties within the state. That’s one of the next big goals – and it will be huge.”

As far as what the future holds, Koehler thinks that, little by little, auto-permitting will become the norm – and the industry will be better for it.

“I think I’ll see it in my lifetime – where you can buy all of your permits from coast to coast at

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE

once. But I think it happens a little chunk at a time.

I really believe there are great possibilities in the future for this industry, the Midwest, and the nation when it comes to auto permitting.”

Ultimately, Todd agrees with Koehler on the future of permitting, and the benefit to the industry that it brings. And he reiterates that there is a ceiling to thresholds. “Make no mistake, there comes a point, in terms of size and weight, where SC&RA and our members completely agree with and support the idea of human involvement on the state side.

“What we’re asking for is a reasonable threshold at which all states will auto-issue permits. And we’re making some headway. We’ve watched many states slowly build up a comfort level over the years. As their trust in the data increases, they start inching up their thresholds. Quite a few states are going pretty high, wide and heavy now.”

SC&RA is advocating for auto-permitting until the industry achieves as close to one hundred percent

as it can. “It’s a win for our member companies, the industry overall and the government(s),” he affirmed. “We’ve seen time and again where, once states go automated, their permit revenue goes up significantly, and folks cut corners a lot less.

“Any time we can make an argument in which safety is at the top of the list along with efficiency and commerce, we believe we have a winning position.”

Want to learn more? Attend the session Advanced Strategies for Oversize & Overweight Permit Harmonization at CONEXPO-CON/AGG 2017.

Mike Chalmers serves as partner and chief copywriter for Thrive Content Solutions LLC, a creative copywriting agency based in Chicago.

Originally published in American Cranes & Transport (January 2016), a publication of The Specialized Carriers and Rigging Association.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 61

YOUR 2017 CONEXPO-CON/AGG EXPERIENCE MARCH 7-11, 2017 | LAS VEGAS, USA

EMBEDDED:

T

TECH OF THE FUTURE

he embedded technology market is looking very promising, and that bodes very well for the construction industry. The global market for embedded technology is expected to grow to $221 billion by 2021—and that could have a significant impact on how the construction industry builds roads, bridges and buildings in the future.

Embedded technology can reach far and wide.

It simply refers to a system that has a dedicated function, and includes both the hardware and software components needed to perform the action.

A report from BCC Research analyzes the global market trends, with data from 2015 and projections through 2021. It shows the global market for embedded technology was valued at $158 billion in 2015.

Further, the market will reach $169 billion in 2016, rising to that $221 billion number in 2021, which represents a compound annual growth rate of 5.5 percent from 2016 until 2021.

The research firm indicates that the IoT (Internet of Things) has emerged and will connect every device, enabling them to speak to each other, which will drive the volume of low-cost embedded devices.

What does all this emerging technology mean for the construction industry? New systems will impact how projects are delivered, as embedded technology can help with mission-critical maintenance.

Opportunities for Construction Brendan Dowdall is founder and CEO of Concrete Sensors, a provider of sensors that give real-time updates on the drying and curing of concrete and allow for faster and more precise decisions to be made.

Dowdall says there are many opportunities to use sensors and embedded technology in construction.

“On any project, our goal is to help contractors save time and money by providing real-time updates 62 | www.cedmag.com | Construction Equipment Distribution | February 2017

on their concrete,” he explains. “We seek to provide actionable data that is simply easy to use. For example, we can help contractors remove forms faster, tighten bolts on post-tension slabs sooner, reduce winter conditions costs, avoid moisture mitigation costs, and minimize disputes.”

The construction industry can use the embedded systems to make more intelligent decisions on the jobsite as the buildings are being erected.

However, contractors can also play a critical role in building structures that have embedded technology built into them—that will ultimately improve missioncritical maintenance of the structure.

When looking at smart cities and infrastructure, Dowdall says that there are three primary targets for improvement: material, labor and equipment.

“There is so much low-hanging fruit to improve the management and efficiency of cities and infrastructure,” he explains. “For example, more state transportation departments are simply trying to find new ways to use sensors to develop an inventory of their assets.”

Also, the types of embedded technologies used can depend on the type of construction project being performed. For instance, in a building, one of the largest maintenance costs is mechanical systems, while in transportation, maintenance costs are spent on repairing roadways.

“What if sensors could alert you to a problem before it arose?” Dowdall asks. “A $5 fix today could save you from a $100 fix tomorrow.”

This is a trend that is beginning to get some legs, as many reports are showing significant growth and opportunities for smart cities. For instance, a report from MarketsandMarkets shows the smart cities market will be worth roughly $757.74 billion by 2020, which is a compound annual growth rate of 19.4

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The building segment is expected to grow with the highest compound annual growth rate, with various disciplines such as building automation, energy optimization, parking management and more being widely adopted.

Among the regions, Europe is expected to be the highest contributor, but Asia-Pacific is expected to grow with the highest compound annual growth rate. Other regions that will see growth include North America, Latin America and the Middle East.

Addressing Cost and Culture While the smart city concept is beginning to gain momentum, there are some challenges associated with constructing roads, buildings and bridges with embedded technologies.

Dowdall sees two primary “anxieties” from contractors that are trying to implement technology: cost and culture.

“Anxieties surrounding cost are natural,” he explains.

“Contractors don’t want to be the sole investor in technology and want that cost to be shared with the owner. Recently, I’ve advocated for a new line item on project budgets for technology.”

He suggests that this would allow project teams to implement technology and measure its ROI (return on investment) in a transparent way.

However, looking beyond cost, there are also cultural anxieties that could perhaps become even more challenging to overcome. He suggests this is the general attitude of, “I’ve been doing it this way for 20plus years and I’m not changing now.”

He continues, explaining, “Buildings are not falling down, so in some ways they are right. I think everyone can agree that construction can be painfully inefficient at times and inefficiencies equate to lost time and money. What if a technology solution could ease that pain?”

And so this is where the construction industry currently stands when it comes to embedding technology in infrastructure and buildings in order to help with mission-critical maintenance.

Perhaps one of the better questions to ask is: Who will drive the use of all this smart technology in the city? Will it be the contractor, the owner or possibly even the government? The technology needs a champion if it is going to move forward.

Dowdall suggests that while other industries are beginning to operate in data-rich environments, the construction industry is slow to change for many reasons.

“Historically, technology to a contractor meant deciding what project-management system or accounting system they were going to invest in,” he explains. “Today, I see a wave of new technology that will improve the operation of projects. These technologies will help contractors move faster and save money.”

In the end, those construction companies that recognize this trend toward smart, more intelligent cities and infrastructure—and move toward implementing the technologies—will have a competitive advantage over those who are slow to adopt.

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64 | www.cedmag.com | Construction Equipment Distribution | February 2017

register online bit.ly/aedevents

2017 Washington fly-in April 4-6 | The Liaison Capitol Hill |Washington, D.C.

The Construction Equipment’s Top Advocacy and Public Policy Event AED’s Washington Fly-In is one of the only events for the equipment industry where attendees gain valuable intelligence about emerging threats and opportunities facing their companies and the sectors they serve.

Join us for important visits with Members of Congress and their key staff on Capitol Hill, advocate for the industry, get up to speed on the issues impacting your company, and connect with other industry leaders to discuss critical items that will influence lawmakers.

YOUR GUIDE TO SUCCESS Takeaways you’ll bring back to your dealership: Hear and gain insight directly from policymakers about infrastructure, tax and regulatory issues that affect your company.

Network and discuss with sector leaders who understand that what happens in Washington, D.C. has a huge impact on equipment markets and dealer costs of doing business.

Attendees will gain an exclusive insider perspective on how to strategically affect key government decisions.

Fly-In is an exclusive forum to elevate the industry’s issues on the national stage, move the ball forward on infrastructure, tax and regulatory policy and show elected leaders that distributors are an engaged political force.

CAPTIVE INSURANCE: PROTECTION AND PROFIT

Second in a two-part series on captive insurance

By Rex A. Collins, CPA, CVA HBK Dealership Industry Group Dealerships establish captive insurance companies to provide stable and cost-effective insurance. Their captives protect them from risks against which they are underinsured or for which they cannot get coverage from a commercial insurer. But they also deliver financial benefits, helping dealers control costs by protecting against unpredictable premium swings, and improving their bottom lines with income opportunities and tax advantages.

Overall premiums can be reduced by using “super high” deductibles available from traditional insurers and utilizing your captive to insure all claims below the deductible level. In this situation, premiums paid to your captive frequently exceed claims and operating expenses, resulting in excess reserves which are available for more aggressive investments or are returned to owners. (Can you think of a commercial carrier that returns your 66 | www.cedmag.com | Construction Equipment Distribution | February 2017

premiums when you haven’t had claims?)

There are also tax advantages when a captive is properly structured and registered. Like other insurance companies, captives can deduct for future losses, meaning your captive company can hold funds without paying income tax, up to $1.2 million in premium income in 2016, $2.2 million in 2017. You owe taxes only on investment earnings. In essence it works like this: The dealership will deduct premiums fully from its income as you pay them to your captive, while these premium dollars retained by the captive are not taxed. Ultimately excess reserves that are paid to the owners as dividends are taxed at the lower capital gains rates – obviously a significant tax savings is realized by the owners.

Setting up a captive insurance company is not complicated, but in order for you to reap the tax benefits, it has to be structured properly, that is, according to IRS and state regulations for insurance companies. The IRS has issued guidance and private letter rulings related to risk distribution and risk-shifting

Dealers can use captive insurance companies to manage risk, reduce taxes and create income strategies to determine whether a captive qualifies as a true insurance company.

To qualify for the federal and state tax advantages: ▶ A captive must be an independent business able to cover participants’ claims. ▶ There must be a transfer of risk in reasonable proportion to the premium being charged. ▶ Premiums must be determined by an actuary.

Whether forming your own pure captive or participating with others, you’ll need to consider multiple operational issues: ▶ Your overall management goals ▶ Investment policies for the premiums ▶ Where the firm will be domiciled and those requirements ▶ What type of risks will be covered ▶ What kind of reinsurance you will purchase ▶ What the procedures are for returning premiums or for shortfall in funding claims ▶ How a member can exit the firm Domicile selection is key to saving on state taxes. No matter

where you reside, you can choose where you will domicile your captive insurance company. Delaware is a popular choice, but Vermont and South Carolina are also corporate-friendly states, as are some offshore locations. Your selection will be based on the location’s initial capital requirements as well as its tax policies.

You can also use a captive to transfer wealth to the next generation by making children part owners of the captive. Their participation can dovetail nicely with other gift and estate tax strategies. And your captive can be structured to accommodate different retirement objectives of different shareholders.

The goal of establishing a captive is to provide stable and costeffective insurance. But when a captive is formed and operated according to the rules as established by case law and the IRS, including guidelines governing risk transfer and distribution, it can also provide substantial tax and other financial benefits.

See Part I of “Captive Insurance: Protection and Profit” for insights on setting up a captive company for protection against uninsured or underinsured risks.

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.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 67

>> PROBLEM SOLVED

TROY OTTMER

Service Shop Safety: Owning the Process Ask one simple question: “Is what I see in my shop safe, and would I feel safe working in this environment?”

Safety in general is a very important factor in any business. In the case of a workforce of technicians, we have what could be described as a significant point of potential risk. What is this risk? How do we mange or mitigate the risk or potential fallout from an incident? First we must understand, or rather, identify potential areas of risk or exposure.

The first thing to do is perform an assessment of your facility; yes, I said facility. Why not just go straight into the service shop and get started there? It’s simple – you are trying to establish an understanding of what your risk exposure may be, and if you ignore the facility as a whole, you risk not identifying an area that could impact your technicians, as well as your other employees. Remember, your technicians are not isolated to the shop area. When I say “facility” I mean the entire operational plot, land and buildings combined. An important benefit of this assessment is protecting your customers, and ultimately yourself or the company, from an insurance claim, or worse, a lawsuit.

How do you perform this assessment? Starting with the “how,” it’s simple. Start with a commonsense approach and ask one simple question: “Is what I see in my shop safe, and would I feel safe working in this environment?” If you say yes to this, then I congratulate you on having established a safe working environment. However, if you answered “No,” you would not feel safe, then you should write down your areas of concern.

Where do you get the information for an assessment? There are more resources out in the public forum than anyone could ever count, so using the internet would be a great place to start.

With the potential for OSHA to get involved in any incident, not just major ones, I would suggest checking out the OSHA website training section.

There is a lot of great free information there.

Another option would be to outsource by having a company or individual perform this assessment for you.

Once you’ve done the assessment, what’s next? Setting up an action plan to correct the shortfalls or high-risk areas, and then taking steps to implement the changes or improvements.

Does this task fall to one person? No, it does not. Then who you ask? It falls to everyone in the organization, or in the case of employees, in the shop. Depending on your company size and structure, you may have a risk manager or other higher level position that handles the big picture process; or you may push it down to your store manager to oversee. At the end of the day, regardless of who is overseeing the risk side of your business, you must make it a point to have all your employees or technicians on board with your “safety improvement initiatives.” Let’s face it – if you do not have “buy-in” from the troops, you are doomed to failure.

This “buy-in” is key to any organization’s ultimate success. If the employees do not understand what it is you’re trying to do, then how can they react correctly or in accordance with your plan? So how do you do this? Simple – lay the plan out in as few steps as possible. Give the team a chance to digest and process what it is you’re asking them to do. Listen to them. Let them ask questions, and more importantly, let them give suggestions. You never know, they may have a better idea, which you can implement into the process or plan.

So now you that you have “buy-in” from your team, and you’ve allowed them to ask questions or offer suggestions for improvement, take it one step further. Get them to “own the process”! Owning the process simply means that they have bought in, and you’ve empowered them to be part of the plan roll-out or implementation.

Trust me, if they feel as if they’ve had a say in the development of the plan or process, and they feel they are truly part of making this happen at all levels, then you will have a successful and safe operation.

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.

68 | www.cedmag.com | Construction Equipment Distribution | February 2017

register online bit.ly/aedevents

2017 FINANCIAL/HR SYMPOSIUM April 26-28, 2017 | Hyatt Regency Miami | Miami, Florida Over the course of this day-and-a-half conference, attendees will have access to a variety of educational learning sessions with topics that include next-generation recruiting for technicians, legal must-knows for financial executives, what to do if you get audited and more!

Each year attendees walk away with an abundance of information to take back to their dealership — register to see what all the buzz is about!

STRATEGIES FOR SUCCESS

Top Three Reasons You’ll Want To Attend This Year’s Financial/HR Symposium LEARN. This annual symposium is designed to update financial and human resource dealer professionals on important issues that impact their areas of responsibility.

INTERACT. Don’t miss the opportunity to interact, talk, ask questions and have group discussions on industry-related issues and topics with your peers.

DEVELOP. Financial and human resource professionals will gain insight and industry-specific tools through our special educational sessions, such as dealer tax opportunities, innovative work methods, how does your company look to potential employees, banking trends and more!

advertisers’ index AMAM...............................................................5

Kobelco Construction Machinery USA.............49

AmTrust Financial Services, Inc........................39

Leading Edge Attachments, Inc.......................53

Arctic Snow & Ice Control, Inc.........................15

Pettibone........................................................33

Assocation of Equipment Manufacturers........43

Prinoth..............................................................8

Bell Trucks of America.....................................23

Rotar North America Inc..................................31

Breaker Technology, Inc. (BTI).........................41

Rototilt Inc......................................................25

Briggs & Stratton Corporation.........................29

Screen Machine Industries LLC........................51

CDK Global......................................... Back cover

Sentry Insurance Company....... Inside back cover

Dieci US LLC....................................................37

Terramac.........................................................19

eBS Mechdata, Inc.............................................9

Toku America, Inc............................................36

e-Emphasys Technologies Inc............................1

Towmaster Trailers..........................................13

Gorman-Rupp Co............................................59

Unified Purchasing Group...............................55

HKX, Inc..........................................................63

Wells Fargo Equipment Finance, Inc...... Inside cover

IHI/Compact Excavator Sales LLC.....................70

XAPT Corporation..............................................2

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13 Mini-Excavator Models *Operating Weights 2,000-18,000 lbs *Digging Depths: 5’2” TO 15’1” 70 | www.cedmag.com | Construction Equipment Distribution | February 2017

800.538.1447 WWW.IHICES.COM

Dad Was Right Journeyman technician glad he listened to his dad when he said, "If you learn a trade, you will never go hungry."

By Karen Algeo Krizman ne of the most valuable pieces of advice John Knapp ever received was from his dad, who told him, “If you learn a trade, you will never go hungry.”

Now, 22 years later, the journeyman heavy equipment technician at West Side Tractor Sales in Joliet, Ill., has seen that bit of wisdom pay off in spades – he owns his own home (his third), has a garage full of latemodel cars and has money in the bank.

“The trades have been good to me,” says Knapp, a graduate of Wyoming Technical Institute.

He is, however, fully aware of the looming crisis facing the equipment distribution industry because of the shortage of skilled labor.

“Young adults are not even interested (in a career in the equipment distribution industry) because I don’t think they know it exists,” Knapp says.

In a 2015 survey by The AED Foundation, North American equipment distributors cited a lack of “hard skills” as the main obstacle to filling open technician positions.

This lack of skilled labor has resulted in the U.S. heavy equipment distribution industry losing an estimated $2.4 billion in revenue each year, according to The AED Foundation.

Knapp places the blame for this shortfall in labor and revenue squarely on the shoulders of the education system.

“When money gets tight in a school district, the first thing to cut is the shop classes,” he says. “That’s a huge problem because it removes an opportunity for kids to learn a real-life skill, a window into the trades. I look at these kids now and it’s sad. They can’t even change a tire.”

Add to that a one-size-fits-all mentality that sees everyone from high school guidance counselors to parents pushing teens toward four-year colleges – plus what Knapp calls the “demonizing of the trades” as “dirty, sweaty and physically demanding jobs” – and it’s easy to see why

O

the industry is aging itself out of skilled workers.

“The sad reality is that when you are on a job site and look around, the average age group is mid-30s and older,” says Knapp.

He, for one, would like to see more recruitment efforts by everyone involved in the industry, a goal shared by The AED Foundation, which focuses on professional education and workforce development.

“When schools have career day, the unions should be there at a booth with information on the apprentice programs they offer,” Knapp says.

“All it takes is a few good pictures on a brochure with a small blurb of information to enlighten a young mind. Trade schools need to spend more time at the high schools promoting their schools, whether at career days or during lunch with a small booth. Companies need to start interacting with the local high schools, too. It could be as simple as taking on an intern for the summer or inviting students for an afternoon to shadow a technician.”

Knapp also would like to see more companies offer signing bonuses, particularly to those new to the trade.

“This would help the new entry-level employee with the initial startup and the tool purchase,” he says. “If the employee has the right tools in the beginning, it makes them more productive.”

Knapp is the first to admit that working in the heavy equipment industry is challenging because of the constantly advancing technology that borders on NASA-level science. But he points out that the rewards far outweigh the disadvantages, including six-figure salaries and hefty retirement and health benefit plans.

“Every day a person can learn something, making the career interesting,” Knapp says. “It’s like being in a super-size sandbox for adults. The machines keep getting larger and larger. Sometime it’s an adventure.”

It’s an adventure that Knapp is glad he didn’t miss.

“It was the best decision of my life,” he says.

February 2017 | Construction Equipment Distribution | www.cedmag.com | 71

>> RISK MANAGEMENT

ERIC STILES

Simple Slip-and-Fall at Workplace Can Spawn Multiple Complications Slips and falls are inevitable, but you can help prevent and lessen hazardous conditions at your business by taking a few proactive steps.

Q: Is it true slip-and-fall claims are a frequent loss leader with dealers?

A: It’s easy to assume that slip-and-fall injuries are minor, but they may actually turn into a costly situation. Take this story, for example: An employee was walking across an uncarpeted retail area when she fell on her right side, injuring her hip, shoulder and head. The weather had been rainy and icy, resulting in wet floors. There was also a cracked tile where the employee fell.

The employee required significant medical treatment, and healing problems resulted in a 25 percent disability rating. Her head injury led to cognitive issues, which prevented her return to work. After medical, disability and retraining expenses, the total costs exceeded $825,000.

A simple fall led to a complicated situation.

The dealership’s investigation found gaps in floor maintenance and no procedures for changing oversaturated floor rugs. While proper maintenance could have prevented the fall, the

dealership also didn’t remind employees to wear proper footwear for winter weather.

Slips and falls are inevitable, but you can help prevent and lessen hazardous conditions at your business by taking a few proactive steps: ▶ Develop a periodic inspection checklist: Assign a specific member of your staff to be responsible for completing monthly inspections, reporting findings, and monitoring corrections. ▶ Implement a reporting policy: All of your staff members should immediately report any known safety hazards. Communicate and reiterate your reporting policy to all of your staff members several times throughout the year. To ensure best practices, make sure your managers regularly follow up and make timely corrections. ▶ Set management performance goals: Include safety practices in your management performance reviews. All of your managers should have specific, measurable targets in their review to identify, report, and correct injury hazards in their areas.

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.

72 | www.cedmag.com | Construction Equipment Distribution | February 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.

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