April 2016: Train Like A Pro

April 2016

CED

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

Train Like A Pro

Tips and Tools To Become An Effective Trainer n Emerging Leaders

Jamie Carson’s

unique path to the construction industry

April 2016 CED.indd 1

n A Closer Look

n Content Marketing

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contents CED Magazine | April 2016

vol. 82 no. 4

www.cedmag.com

>> FEATURES

24

EPG is Creative, Solutions-Based Noteworthy for its flexibility and customer-centered mentality, EPG Insurance caters to the construction industry’s many unique needs.

46

Shut Up and Train

30

From ‘Reveille’ to Rentals Former U.S. Marine Jamie Carson’s road to the construction industry has been anything but typical.

Improve your effectiveness as a trainer with techniques tailored for the construction equipment industry.

50

It’s All About the Customer Must-know steps to generate more leads, turn them into prospects, win them as customers and achieve more sales.

April 2016 | Construction Equipment Distribution | www.cedmag.com | 3

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contents

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

>> FEATURED COLUMNISTS Eric Stiles Sentry Insurance Dayna Maeder Freelance Writer Codie Taylor Bluesky Strategy Group Phil Riggs Western Regional Manager Rex A. Collins Principal at HBK CPAs Rep. Lou Barletta Representing Pennsylvania’s 11th congressional district Brian Gareau Brian Gareau, Inc. Amy Parrish Atelier731 Eddie Bluff Site-Seeker, Inc. Barry Himmel Signature Worldwide Jerry Irvine Prescient Solutions Karla Dobbeck Human Resource Techniques, Inc. Troy Ottmer Dogget Heavy Machinery

>> ADVERTISING CONTACTS Vice President of Sales JON CRUTHERS 800-388-0650 ext. 334 jcruthers@aednet.org Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 311 aramirez@aednet.org

CED Magazine | March 2016

vol. 82 no. 4

>>COLUMNS

28 >> Regional Report

AED’s Western regional manager discusses how workforce development is the theme for 2016.

32 >> View From The Hill

Rep. Lou Barletta explains the importance of being vocal to rebuild our nation’s crumbling transportation system

34 >> Dealer Development

Professional development opportunities set your dealer team apart.

40 >> Team Lessons from Baseball

Four team fundamentals for business performance opportunities.

42 >> EquipmentWatch Intelligence

News on equipment lifespans and more.

44 >> Good Policy

Stay ahead of the changing marijuana laws across the nation.

52 >> Mystery Shopper

How Is Your Dealership Really Performing?

62 >> Problem Solved

Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org Since 1920 Official Publication of

Telematics that can bring you and your customers into alignment.

The importance of AED technical assessments and why your company should be using them.

Read more on Page 37.

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

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Event Spotlight GAIN INSIGHT INTO WHAT DRIVES THE INDUSTRY AED/AEM Equipment Economic Conference (formerly known as Executive Forum) is a two day conference for dealer principals and their executive team. Attendees will focus on current economic trends and market insights that drive the equipment industry.

Mark Your Calendar: AED/AEM Equipment Economic Forum September 21-23 Hilton Rosemont/ Chicago O’Hare Rosemont, Ill. AED/AEM Equipment Economic Forum brought to you by:

Current Events and News for the Equipment Distribution Industry

10 » AED Insider 14 » Industry News 19 » Product Preview 38 » Data Trends

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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.

CallCenter.indd 9

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.

1/14/2016 2:40:14 PM

>> FROM THE CHAIRMAN

BY DAYNA MAEDER

Giving Back Is Key To Success

Chairman Whit Perryman believes it’s good business sense.

With nearly 20 years of service with Associated Equipment Distributors, Chairman Whit Perryman has a long-standing track record of financial prowess, valuing employees and revitalizing human resource policies and procedures.

Perryman, 53, began his career path working for Mercantile Bank in Dallas, where he became involved in the heavy equipment and finance group. It was during his work with Vermeer Texas-Louisiana in June 1991 that Perryman decided to leave the banking industry.

“It was appealing: a whole new environment and opportunity. Vermeer was a good company with good people in a niche industry,” Perryman said.

As Vermeer Texas-Louisiana’s treasurer/CFO, Perryman worked primarily with finance, but also with human resources policies and procedures.

Truly finding his passion, he helped the company’s owner establish a succession plan for the business. In 1995 he helped Vermeer Texas-Louisiana become an ESOP (Employee Stock Ownership Plan) giving employees ownership of the company. Through an ESOP, employees earn shares of company stock that accrue for their retirement..

“Essentially, it’s a direct way to grow their own retirement and share the wealth,” Perryman said. He credits director of marketing Kelli Meyer with performing a top- notch job facilitating an internal ESOP communications committee and helping the employees understand what it means to be employee-owned.

Throughout his career, Perryman has stressed the importance of giving back, from the ESOP to his work with The AED Foundation. “It’s important to help give back to an organization and industry that’s been so good to me,” he said.

As a dealer involved in the association, Perryman credits the annual Summit & CONDEX with giving him the opportunity to network through meeting people in breakout sessions, or over dinner, and providing the chance to see how other CFOs handle banking needs, real estate issues and building out their facilities.

Recently, Christian Klein, AED vice president of government affairs, invited Perryman to an event with Senator Lamar Alexander, Tenn., who is the chairman of the Health, Education, Labor and Pensions committee and has jurisdiction over technical workforce education.

“Visiting with a senator to talk about how the education benefits our industry is powerful stuff,” Perryman said. “He needs to hear it from us – dealers who are hiring employees — not just from people who work on the Hill as a profession, like lobbyists.”

Perryman’s group is also working on setting up a meeting with Rep. Kevin Brady, a pro-small-business conservative and chairman of the House Ways and Means Committee.

In June, the AED Fly-In will host dealers from all over the country who will attend seminars, meet congressional representatives and their staff and get them on board with various causes. Perryman said this networking comprises about 95 percent of the work it takes to make the change that the Association hopes to see in the industry. After the Fly-In, Perryman will set up office site visits and invite politicians to the dealerships to see the employees and equipment in action, which he says is very powerful.

Despite all this work with powerful politicians, Perryman is grounded in employee relations and satisfaction.

“I can’t emphasize enough the importance of getting involved and developing young and up-and-coming leaders,” he said. “In August, AED will have a leadership conference featuring folks coming up in the industry. There is a need for young leaders of tomorrow to network with other dealers from this association and develop long-standing relationships.

I urge even small dealerships to get young folks involved. The Association offers so many great ways to help dealerships develop people and companies.”

AED also has something special coming up at the 2017 Summit & CONDEX. Perryman encourages us to stay tuned for more information on this black-tie celebration, because it will be a lot of fun.

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>> PRESIDENT’S PAGE

BRIAN P. McGUIRE

Don’t Miss Out : Make A Difference and Voice Your Concerns for the Industry Don’t leave it to others; take an active role in shaping public policy this year!

It’s hard to turn on the news without being reminded that we are in the midst of an election that will determine the candidates of both major parties for president of the United States. Regardless of your political leanings, it’s very possible that, by the time you read this, both parties will have candidates with enough delegates to secure the nomination.

Then comes the easy part of deciding who we want to support and waiting to vote in November. At AED we hope that is not what our members do.

While the races for the House and Senate don’t attract as much coverage as those for the executive branch, they are just as important.

The laws that members of Congress pass or do not pass can affect every aspect of your business. From tax policy to infrastructure investment — Congress will touch on all of it, and the voice of AED members needs to be heard loud and clear. We have ways to help your voice be heard and to help you play a role in the shaping of public policy.

One of the best and easiest things you can do is invite a member of Congress to your facility to meet with you and other AED members. The AED regional staff will help

secure a date, provide you with talking points on the latest industry issues and be onsite to make sure everything goes smoothly.

Members of Congress find these visits valuable in understanding the issues affecting our industry. Many of them have led to members of Congress reaching out to their host when issues come up and they need additional insight. If you are interested in scheduling your lawmaker to visit your facility, call your regional manager to start the process.

From June 7 to 9, AED will host the annual Washington Fly-In; this two-and-half-day event gets better each year. Members receive briefings on issues from both lawmakers and policymakers and will have the opportunity to call on their lawmakers. This is a great chance to meet not only your lawmaker but their staff. Policy staff play an important role in assisting lawmakers by researching issues and formulating their public policy positions.

In short, they are people we want to make sure know about our issues. Watch your e-mail for more information and registration details.

The Association also operates a political action committee (PAC) to support

candidates who understand the issues affecting the construction equipment industry.

It takes money for candidates to get their message out to voters; if you are interested in contributing or learning more about the AED PAC, contact Christian Klein, AED’s vice president of government affairs.

AED has not forgotten about its Canadian members when it comes to educating lawmakers. Members of Parliament are also willing to visit your facility and learn about the needs of your business. Canadian members who would like AED to assist in arranging a visit by their MP should contact senior regional manager Michael Dexter.

Michael is ready to assist, along with Blue Sky, our public policy consultants in Ottawa. And keep an eye out for information regarding our third annual Public Policy Meeting.

I hope every member of AED will take an active role in helping shape public policy this year, by hosting a meeting with a lawmaker, attending either the Washington Fly-In or Canadian Public Policy Meeting, and supporting the AED PAC. Public policy is just too important to our industry to be left to others.

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 WHIT PERRYMAN Chairman Vermeer Texas-Louisiana WES STOWERS Vice Chairman Stowers Machinery Corp.

DIANE BENCK Senior Vice President West Side Tractor Sales Co. TODD HYSTAD Vice President Vimar Equipment Ltd. MICHAEL D. BRENNAN Vice President Bramco, LLC JOHN C. KIMBALL VP of Finance Kimball Equipment Company DON SHILLING Immediate Past Chairman General Equipment & Supplies, Inc. A. ROY KERN, JR. Foundation President Equipment Corporation of America

ROBERT K. HENDERSON AED Executive Vice President & COO

>> AT-LARGE DIRECTORS TODD BACHMAN Florida Coast Equipment, Inc. JAMES P. COWIN Cowin Equipment Co., Inc. GAYLE HUMPHRIES JCB of Georgia LARRY R. MILLER Kelbe Bros. Equipment Co. Inc. JOHN SHEARER 4 Rivers Equipment, LLC KENNETH E. TAYLOR Ohio CAT

JASON K. BLAKE AED Senior Vice President & CFO

>> REGIONAL DIRECTORS RON BARLET West Reg. Bejac Corp.

CRAIG DRURY Eastern Canada Reg. Vermeer Canada Inc. RYAN GREENAWALT Midwest Reg. Alta Equipment Co. TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. GILES POULSON Rocky Mountain Reg. Faris Machinery Co. JOHN RIGGS IV South Central Reg. J A Riggs Tractor Co. JAY RODES Southeast Reg. Wilson Equipment Co., LLC KAREN ZAJICK northesat Reg. Norris Sales Co.

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>> AED INSIDER AED Leaders Head to the Hill to Urge Action on Technical Workforce AED President & CEO Brian P. McGuire, 2016 AED Chairman Whit Perryman (Vermeer Texas-Louisiana), AED Vice Chairman Wes Stowers (Stowers CAT) and AED Foundation Chairman Dennis VanderMolen (Vermeer MidSouth) traveled to Washington, D.C. on February 23–24 to urge Congress to address the nation’s technical skills gap.

For decades, equipment distributors have identified the technician shortage as a major strategic challenge for the equipment industry.

Through The AED Foundation, the Association has a long history of tackling the skills gap by creating partnerships with local technical schools, providing training for the current industry workforce and promoting equipment industry careers. The AED is also making technical workforce policy one of the Association’s top legislative priorities.

The meetings on Capitol Hill provided executive AED staff and volunteer leaders with the opportunity to meet directly with lawmakers and urge them to make technical workforce policy a priority.

Among others, the AED delegation met with: ▶ Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander (R-Tenn.) ▶ House Higher Education and Workforce Training Subcommittee Chairman Virginia Foxx (R-N.C.) ▶ House Health, Education, Labor and Pensions Subcommittee Chairman Phil Roe (R-Tenn.) and ▶ Congressional Career and Technical Education Caucus Co-Chairman G.T. Thompson (R-Pa.) The focal point of the meetings was the recently-released AED Foundation study by researchers at the College of William & Mary that quantified the technician shortage’s economic impact on the equipment industry. The study found that: ▶ The technician shortage is costing AED members approximately $2.4 billion per year in lost revenue and economic opportunity. ▶ The average job open rate for AED members — the percentage of jobs going unfilled — is 11.34 percent, more than three times the national average. ▶ Distributors cite the lack of hard skills as the top reason technician positions are so hard to fill. ▶ Seventy-eight percent of AED members don’t think local educational institutions — high schools, community colleges and technical schools — understand equipment dealer workforce needs and don’t believe curricula are aligned to meet those needs. ▶ More than 50 percent of AED members said the skills gap had hindered dealership growth and increased costs and inefficiencies.

But the technician shortage isn’t just a problem for dealers; it’s also a problem for all the economic sectors AED members serve: Almost 75 percent of survey respondents said the technician shortage made it

Above: House Health, Education, Labor & Pensions Subcommittee Chairman Phil Roe (R-Tenn.) welcomes AED in his offices.

Right: Congressional Career & Technical Education Caucus Co-Chairman G.T. Thompson (R-Penn.) with AED visitors.

difficult to meet customer demand.

The AED Foundation/William & Mary study results provide a snapshot of how one industry is affected by the skilled technical worker shortage, a problem plaguing the entire U.S. economy. AED’s message is that businesses, schools and government must commit to tackling this national crisis at the local, state and federal levels.

One opportunity for Congress to do more in this area is Perkins Act reauthorization. The Perkins Act, which provides funding for career and technical education programs, expired several years ago and is due for reauthorization and updating. AED is urging lawmakers to make Perkins Act reauthorization a priority and to: ▶ Create incentives to ensure that technical training programs better consider local employer needs; ▶ Provide additional resources to fund new sector-based workforce strategies that connect employers, schools and local government; and ▶ Recognize that short-term skills and job-oriented training programs can play as significant a role in the education of skilled workers as full-blown college degree programs.

Please help AED raise the visibility of the technician shortage on Capitol Hill. You can send an electronic note to your representative and senators here: http://aedaction.freeenterpriseaction.com/pfez3O3.

View The AED Foundation study here: bit.ly/1JPuVci Download a one-page summary: bit.ly/1n6YIDt

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>> AED INSIDER

New Study Confirms LIFO Repeal Would Be Job Killer The Tax Foundation, a well-respected Washington, D.C., think tank, has released a new report analyzing the economic impact of repealing the last-in, first-out (LIFO) accounting method. LIFO is widely used by equipment distributors and by companies in other inventory-intensive industries.

Repeal was first proposed by GOP senators a decade ago to pay for a short-term gas tax rebate during a period of high oil prices. Since then, LIFO repeal has become a popular revenue-raising proposal and has been included in many Obama administration budgets.

The study confirms what AED has been telling policymakers for more than a decade: repealing would hurt businesses, destroy jobs and lead to less tax revenue for government.

Having examined the future

impact of LIFO repeal, the Tax Foundation report found that getting rid of LIFO would: … reduce GDP by $11.66 billion after all economic adjustments.

The smaller economy would result in 7,700 fewer full-time jobs and a $53.3 billion smaller capital stock in the long run. As a result of the smaller economy, the repeal of LIFO would end up reducing federal tax revenue by $518 million each year.

That is, instead of bringing in more tax revenue, as proponents of repeal anticipate, ending LIFO would reduce tax revenue.

The study looked not just at the future impact of LIFO repeal but also examined what would happen if companies currently using LIFO were forced to immediately pay taxes on their existing LIFO reserves. The Tax Foundation found that:

To the extent that companies have difficulty paying the additional tax on their LIFO reserve, investment by these companies would fall, which would lead to a reduction in employment. A tax increase of approximately $86 billion over a decade that impedes capital investment could result in an additional loss of employment equal to 50,300 full-time equivalent jobs in the short run.

Another consequence might be forced restructurings, buy-outs, or churning of ownership of affected businesses.

The Tax Foundation report is available here: bit.ly/aedtaxinfo.

AED will keep fighting to protect LIFO and continue to advocate for business tax reform that encourages capital investment and benefits closely-held companies as well as corporations.

Supreme Court Turns Up Heat on EPA, Climate Plan The U.S. Supreme Court stayed implementation of the White House’s “Clean Power Plan,” voting five to four to delay requirements that coal-fired energy producers plan to transition to cleaner fuel sources.

The president’s initiative seeks to reduce carbon emissions by shifting energy production away from fossil fuels. States would have the option of developing independent plans for this transition or utilizing the recommended structure established by the Environmental Protection Agency (EPA). These plans were to be submitted by September 2016, but that deadline could be extended up to two years on request.

Coal and utility operators, in addition to 29 states, had filed a series of requests to place a hold on the plan. Those filings noted that lead times required for major infrastructure investments — like those needed to overhaul the operational capacity of a power plant — placed undue burden on energy producers. State governments, for their part, contended that the plan intruded into their right to regulate local industries.

The court’s decision does not address the merits of any challenge to the rule, but puts the carbon reduction plan on

hold until the U.S. Court of Appeals for the District of Columbia Circuit can complete a judicial review. Even on an expedited schedule, the process could last well into 2017 and the tenure of a new administration.

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>> AED INSIDER The 2016 AED Foundation Instructors Conference: State Technical College of Missouri, June 6-9 There is no registration fee; meals are provided.

The AED Foundation is pleased to invite you to the 2016 AED Equipment Technology College Instructors Conference. This invitation is extended to all college faculty, staff and construction industry stakeholders who are interested in pursuing excellence and continuous improvement of their local college diesel-equipment technology programs.

Our goal is to have in attendance as many instructors as possible from AED-accredited colleges and other diesel-equipment technology programs.

We welcome those who are working toward or have interest in learning more about AED accreditation and taking their programs to the next level. You can find the agenda by visiting the registration page: http://bit.ly/aedfinstructor. Please note that more details will be sent out as we get closer to the event.

For more details, please contact Steve Johnson, 630-468-5134 or sjohnson@aednet.org or Rebecca Lintow at 630-468-5113 or rlintow@aednet.org.

AED Hosting Historic Cuba Trip for Equipment Industry Execs AED is coordinating a trip to Cuba this spring to give equipment industry executives an opportunity to personally assess conditions and opportunities on the island.

The trip, which will take place from May 13 to 17, is being arranged exclusively for AED members, and participation is limited to no more than 35 participants.

Because U.S. law prohibits tourist travel to Cuba, the AED trip is designed to qualify under the travel ban exceptions. The itinerary will include substantial educational programming and meetings related to economic, workforce and infrastructure conditions.

The group will depart from Tampa, Florida, on Friday, May 13, and return to Tampa on

Tuesday, May 17. Participants should make their own travel arrangements to arrive in Tampa on Thursday, May 12. A more detailed itinerary and travel information will be provided to participants.

The activities are planned to expose our members to a range of topics relating to Cuba’s: Infrastructure Construction industry Technical workforce Education system Legal, cultural and practical issues associated with doing business There will also be meetings with government officials and an architectural tour of old Havana.

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>> AED INSIDER AED Announces New Regions for Two Regional Managers AED has appointed Michael Dexter as regional manager for all of Canada and part of the Midwest, and Kristin Crooks will now serve as regional manager for four additional states. In these roles their primary responsibilities will be to manage and build AED’s network and relationships with dealers.

Michael will be responsible for the following states/areas: • Canada • North Dakota • South Dakota • Minnesota • Iowa • Illinois • Wisconsin • Michigan • Indiana • Ohio

Kristin will responsible for the following states: • Nebraska • Kansas • Missouri • Kentucky • Oklahoma • Arkansas • Mississippi • Louisiana •Texas

For additional information please contact your regional manager: Michael Dexter Midwest Regional Manager U.S. & Canada 630-465-2888 mdexter@aednet.org

Phil Riggs Western Regional Manager 630-465-3622 priggs@aednet.org

Kristin Crooks South Central Regional Manager Ph: 630-465-6647 Email: kcrooks@aednet.org

Ben Yates Eastern Regional Manager Ph: 630-465-4232 Email: byates@aednet.org

Obama’s Budget Proposal: More Politics than Policy

The Obama budget isn’t about infrastructure; it’s about the administration’s war on fossil fuel.

The Obama administration has unveiled an FY 2017 budget plan that includes, among other things, hundreds of billions of dollars in new infrastructure spending over the next decade. The additional investment, most of which would go to light rail and transit, would be funded in large part by a new $10 per barrel oil tax. While the transportation spending in the proposal is nothing new — the administration has favored aggressive spending on “green infrastructure” in the past — the oil tax is.

The plan left many scratching their heads and asking why the administration, after seven years of opposing user fee increases to pay for infrastructure investment, waited until now — several months after the enactment of the new multi-year highway and transit law — to roll out the oil tax idea.

And why, for all the talk of new investment, the budget would cut

water infrastructure programs (specifically, the Clean Water and Safe Drinking Water SRFs) by more than $250 million per year and slash the Army Corps of Engineers’ budget by more than 20 percent.

The answer is that the Obama budget isn’t about infrastructure; it’s about the administration’s war on fossil fuel. Aside from the oil barrel tax, which would raise an estimated $319 billion over ten years, the budget plan includes a host of policy and tax proposals targeting the coal and oil industries.

But fossil fuel producers aren’t the only ones in the Obama administration’s crosshairs. Upper earners are also on the menu. The budget also proposes to increase capital gains taxes to bring in $235 billion for federal coffers over the next ten years and curb “inefficient tax breakfast for the wealthy” and close loopholes to raise nearly $1 trillion in additional

tax revenue. On the tax front, the administration is also once again proposing to raise $81 billion over the next decade by repealing the last-in, first-out (LIFO) inventory accounting method and $47 billion by modifying like-kind exchange (LKE) rules.

For better or worse, the Obama administration’s FY 2017 budget isn’t going anywhere. It’s a political document aimed at the president’s base, not a policy document with bipartisan solutions to the real problems of the day. As in the past, GOP leaders on Capitol Hill have declared the budget dead on arrival and now begin the difficult task of crafting federal spending bills to keep the government operating under Obama’s successor.

Stay tuned for more from AED as the spending battle plays out on Capitol Hill in the coming months.

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>> INDUSTRY NEWS T&I Committee Advances FAA Bill with Increased AIP Funding The House Transportation & Infrastructure (T&I) Committee approved the Aviation Innovation, Reform, and Reauthorization Act (AIRR Act, H.R. 4441), which contains increased authorization levels for the Airport Improvement Program (AIP), the primary vehicle for federal investment in airport infrastructure construction and improvements.

The committee overwhelmingly adopted an amendment offered by Rep. Lou Barletta (R-Pa.) to amplify the AIP funding beyond increases contained in the original proposal. The chart below details the AIRR Act’s recommended funding levels: Fiscal Year

AIRR Act as Introduced

AIRR Act as Approved

2016 (current funding levels)

$3,350,000,000

$3,350,000,000

2017

$3,424,000,000

$3,597,000,000

2018

$3,499,000,000

$3,666,000,000

2019

$3,576,000,000

$3,746,000,000

2020

$3,655,000,000

$3,829,000,000

2021

$3,735,000,000

$3,912,000,000

2022

$3,817,000,000

$3,998,000,000

The legislation now moves to the full House for consideration. While T&I Committee leadership remains optimistic the AIRR Act will be scheduled for floor debate in the near future, the bill contains several controversial aviation policy provisions that could delay (or even end) its chances of becoming law.

Michael Gaine Joins Hoffman Equipment in NY’s Nassau County

Miller-Bradford & Risberg Opens New State-Of-The-Art Facility in Marathon City Miller-Bradford & Risberg Inc., the CASE construction equipment dealer in Northern Illinois, Wisconsin, and Michigan, is pleased to announce that they have opened a new facility in Marathon City, Wis. The modern structure was built in one year and is an upgrade over the Abbotsford facility, with more service bays, state-of-the-art tools, and overhead cranes for repairing larger machines. The new building is located off WI-29, just east of their former location in Abbotsford.

“Our new building is an investment in the community and a way to put down firm roots in the north central Wisconsin area,” says Dan Soley, executive vice president of sales and marketing at Miller-Bradford & Risberg Inc. “We are much closer to many of our customers and can provide faster turnaround times with more service bays and technicians.”

The new branch offers rental equipment, new and used equipment, and parts and service for the full range of construction, road building, and landscaping equipment. The new facility has an increased parts inventory for faster delivery. More full-time service technicians have been hired, and it has over three times the square footage of the former location.

Miller-Bradford & Risberg has been selling, servicing and renting heavy machinery since 1944. The company has seven locations throughout Wisconsin, Northern Illinois, and Michigan. Manufacturers represented by Miller-Bradford & Risberg include: CASE, Kobelco, Bomag, Terex, Sandvik, Blaw-Knox, Efficiency Production, Noram, MacLean, Indeco, Midland Machinery, Towmaster, Rogers, Hensley, Fleetguard, Honda Generators and Pumps, and other top brands. The lines of equipment available include construction, utility, road maintenance, demolition, and material handling equipment, plus trailers, water tanks, and a wide variety of hydraulic drills and ground-engaging tools. For more information, visit www.miller-bradford.com.

Hoffman Equipment is pleased to announce that Michael Gaine has joined the company as a sales representative for the New York region.

He will be responsible for selling earthmoving equipment and sweeping products throughout Nassau County. He will also handle a number of strategic accounts.

“We are happy to welcome Michael to Hoffman Equipment,” says Tim Watters, president at Hoffman Equipment. “His previous work experience in equipment sales ensures a rapid transition to our team, and Michael Gaine his knowledge of the region allows him to hit the ground running.”

Gaine has over 15 years of experience with construction equipment sales. He was most recently a territory manager for an auction company. He has also sold John Deere equipment on Long Island.

Gaine is a longtime member of the St. James, N.Y., fire department and was previously a captain in the Heavy Rescue unit. He currently resides in St. James, N.Y., with his wife and two sons. His hobbies include coaching youth sports, playing golf, and practicing landscape design.

Headquartered in Piscataway, N.J., Hoffman Equipment has been distributing heavy equipment and cranes in the metropolitan NYC area since 1949.

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>> INDUSTRY NEWS Volvo Unveils 50th Anniversary Golden Articulated Dump Truck at Ritchie Bros.

Ravi Saligram, CEO of Ritchie Bros., and Göran Lindgren, president & CEO Volvo CE North America, in front of Volvo’s Golden Hauler at Ritchie Bros.’

Orlando auction site. The hauler is painted gold to celebrate the 50th anniversary of the articulated dump truck, invented by Volvo in 1966.

The hauler is making its first public appearance at the Ritchie Bros. auction.

Wacker Neuson Announces New North American Regional President As part of a planned leadership succession, Wacker Neuson Sales Americas LLC appointed Johannes Schulze Vohren as the new North American regional president in mid-2015. Schulze Vohren now leads all of Wacker Neuson’s sales, marketing, aftermarket, and logistics activities in both the United States and Canada.

Schulze Vohren started with Wacker Neuson in 1994 and has held a variety of management positions within the company, including sales and product support for the US and international markets, business systems and information technology, and logistics. “His experience and broad leadership skills made Johannes Schulze Vohren a natural choice to oversee the North American operation and ensure a smooth transition in leadership,” explains Cem Peksaglam, CEO of the Wacker Neuson Group. In his new role as regional president, Mr. Schulze Vohren is responsible for the organization’s regional market presence for all product lines and helps set and drive the strategic initiatives that best position the company to maximize market opportunities and performance in the region.

“Ongoing growth in our marketplace is built on a foundation of partnership with our dealers,” said Mr. Schulze Vohren. “The strength of our distribution network and our ability to provide a diverse product portfolio have always set us apart. We will continue to develop innovative, reliable, performance-driven solutions and equipment to support a variety of applications across different industries. This includes exceptional financing, training, technical service, and warranty and aftermarket programs that complement our products,” he added.

Longtime president Christopher Barnard retired effective December 31, 2015. During his 18-year tenure, the company expanded beyond its well-respected light equipment product line through the acquisition of Ground Heaters Inc. in 2006 and the merger of Wacker and Neuson Kramer in 2007. Today, Wacker Neuson is a leading global manufacturer of a wide range of equipment for the

concrete, construction, oil and gas, landscape, agriculture, utilities and municipal industries. This includes rammers, vibratory plates, trowels, rollers, pumps, generators, heaters, light towers, excavators, wheel loaders, skid steer and compact track loaders, telehandlers, and wheel dumpers.

“We are very excited about the future of Wacker Neuson in North America and eager to further our brand presence,” noted Schulze Vohren. “The relentless pursuit of industry diversity in the marketing and sales of our equipment, as well as our expansion in the aftermarket segment, will help us achieve our growth potential.”

The Wacker Neuson Group is an international family of companies and a leading manufacturer of light and compact equipment with over 50 affiliates and 140 sales and service stations. The Group offers its customers a broad and deep portfolio of products, a wide range of services and an efficient, global spare parts service. Wacker Neuson is the partner of choice among professional users in construction, gardening, landscaping and agriculture, as well as among municipal bodies and companies in industries such as recycling and energy.

In 2014, the Group achieved revenue of EUR 1.28 billion, and employs about 4,500 people worldwide.

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>> INDUSTRY NEWS Rouse Analytics Integrates With CDK Global Software For Optimization Rouse Analytics, Beverly Hills, Calif., and CDK Global Heavy Equipment (CDK), Hoffman Estates, Ill., have completed development of an interface that will allow users of CDK’s software to more easily submit their data to Rouse Analytics’ Rental Metrics Benchmark Service.

CDK is an ARA Rental Market Metrics™ certified software company. As a result of the integration with Rouse Analytics, CDK’s users will now be able to compare their rental rates, utilization and other key performance metrics to those of their local market competitors.

“We are excited to announce the completion of our integration with CDK. We look forward to providing their dealers with visibility into rental rates and market conditions,” said Phil Mause, managing director, Rouse Analytics.

“We know how critical optimizing rental operations is to our dealers and are delighted to partner with Rouse Analytics to provide actionable data and help drive

a competitive edge in their local marketplace,” said David Mitchell, director, CDK Global Heavy Equipment.

Through its Rental Metrics Benchmark Service, Rouse Analytics collects invoice-level transaction data and nightly fleet snapshots from participating rental companies and reports industry benchmarks for rental rates, physical utilization, dollar utilization, fleet age, and other key performance metrics at a local market level.

Participating rental companies and dealers receive an initial comparison of their rental rates and utilization to local market benchmarks at no charge and then have the option to purchase detailed reporting on an ongoing basis. Rouse Analytics will be exhibiting at The Rental Show® 2016, scheduled for Feb. 21-24 in Atlanta in Booth No. 2810, adjacent to the American Rental Association (ARA)

Resource Center, Booth No. 2515.

Rouse AnalyticsTM launched its benchmark reporting service in January 2011 with initial participants United Rentals, Hertz Equipment Rental Corporation, H&E Equipment Services, NES Rentals, and Neff Corp. Over the last three years Rouse has added 56 rental companies, including Ahern Rentals, Sunstate Equipment, BlueLine Rental, 28 Caterpillar dealers and 25 independent rental companies and heavy equipment dealers.

Rouse currently tracks $28 billion of equipment OEC on a nightly basis and $10 billion in annual rental transaction volume.

With more than $2 billion in revenues, CDK GlobalTM is the largest global provider of integrated information technology and digital marketing solutions to the automotive retail industry and adjacencies.

CDK Global provides solutions in more than 100 countries around the world, serving more than 27,000 retail locations and most automotive manufacturers. Visit cdkglobal.com for more information.

Atlas Copco Expands Dealer Network With Crusher Works Atlas Copco added Crusher Works of Birmingham, Alabama to its growing dealer network. The new dealer will offer Atlas Copco heavy compaction equipment at its Alabama location and plans to carry Atlas Copco pavers by mid-2016. It will add milling machines in the future.

“Crusher Works is a great addition to our dealer network because of its commitment to customer service and focus on minimizing customer downtime,” said Ricardo Perez, Atlas Copco’s regional sales manager.

“The team at Crusher Works is reliable and responds quickly to customer needs by having a large parts inventory and fleet service trucks for onsite maintenance and repairs, which aligns well with our goals to serve our customers’ needs to a maximum.”

Crusher Works has a combined experience of over 30 years renting, selling and servicing aggregate machinery products for a wide range of industries, including

recycling, sand and gravel, limestone quarries, coal mines, asphalt, concrete, demolition, top soil, mulch and compost.

Its equipment offering includes mobile screens, crushers and scalpers as

well as hammers, drills, trommels, conveyors, truck unloaders, horizontal grinders, shredders and roll-sizers.

“From aggregate production to road construction, partnering with Atlas Copco allows us to provide a more complete line of equipment to our customers,” said Shane Gammon, Crusher Works general manager. “There’s a demand for Atlas Copco’s innovative, easy-to-use and ergonomic equipment, such as soil and asphalt rollers, which help our customers maximize their productivity.”

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>> INDUSTRY NEWS Pettibone Launches New Website Pettibone /Traverse Lift LLC, a leading manufacturer of rugged material handling equipment for construction, oil and gas, forestry, railroad, and other industrial applications, announces the launch of its new website at www.gopettibone.com.

Pettibone’s website features enhanced navigation and extensive information on the company’s core product lines, including its Extendo telehandlers; Cary-Lift pipe, log and tire handlers; and Speed Swing rail cranes. Along with features and specifications on each product model, the site also offers industry application and safety information.

“Pettibone has a storied 135-year history, and the new site reflects both the longevity of our brand and the new look we’ve established over the past couple years,” said Mitch Fedie, marketing coordinator for Pettibone. “Customers have a

lot of choices in the material handling equipment market, and we want to present detailed information that allows them to see how Pettibone machines are purpose-built to be among the safest and longest lasting in the

industry.” Pettibone/Traverse Lift LLC is part of the Pettibone LLC Heavy Equipment Group.

Founded in 1881, Pettibone has been recognized as the industry leader in material handling equipment since the company

revolutionized the industry with the first forward-reaching, rough-terrain machines in the 1940s.

For more information, call 906-353-4800 or 800-467-3884, or visit www.gopettibone.com.

Terramac Appoints Enviro Services as Authorized Dealer Terramac, a leading manufacturer of innovative rubber-tracked crawler carriers, expands its representation in the North American market by including Enviro Services as part of its dealer network.

Enviro Services will represent the Terramac product line in northern Louisiana.

“Enviro Services is dedicated to providing their customers with superior services and quality equipment,” says Andrew Konopka, president of Terramac. “Their expertise in environmental reclamation for the pipeline industry is a natural fit for Terramac units. We’re excited to have them join our growing network.”

Enviro Services will offer Terramac’s versatile crawler carriers to deliver the pipeline industry with customized environmental control and land restoration equipment.

In addition to Terramac’s three standard options — convertible dump-to-flat beds, rock dump beds and flatbeds — Enviro Services will offer environmental reclamation attachments such as hydroseeders,

vacuum excavators and straw blowers.

Customers at Enviro Services appreciate Terramac carriers for their unique front and rear bolt-on connection system, which allows support equipment to be easily interchanged, as well as their ability to provide low ground pressure necessary for sensitive environmental work.

“Many of our customers begin their projects with a flatbed and then halfway through have a need for a dump bed to carry heavier material,” says Chris Holomon, general manager at Enviro Services. “Terramac’s units are exceptionally versatile as they serve both purposes and more, due to their compatibility with various auxiliary options. And at full carrying capacity, the units continue to conquer rugged terrain and travel to remote jobsites with minimal impact on the ground. We’re confident our customers will see the value in Terramac crawler carriers as we do.”

“Terramac is committed to providing the best full service, support and parts availability for its innovative and growing product line,” says Trey Towns, co-owner of Enviro Services. “We’re excited to offer Terramac crawler carriers to our customers and we look forward to a lasting partnership.”

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>> INDUSTRY NEWS New Game from John Deere Lets You Play With G-Series Skid Steers, Compact Track Loader Fans and customers can test their operator skills with the Small Machine vs. Big Jobs Challenge. This interactive game from John Deere Construction & Forestry features the new G-Series Skid Steers and Compact Track Loader. Players choose from one of the four skid steer models or the compact track loader to then compete in three applications: construction, landscaping and livestock.

Each level involves players swiping the machine into a target. Based on the speed of the swipe, a score will register in miles per hour.

Players can advance through 10 levels, follow along with the fun through the real-time leaderboard and then share their scores via Facebook and Twitter.

“We’re excited to launch our new smallframe G-Series models to the market and wanted to invite customers and fans to get to know these machines in a different way,” said Graham Hinch, division manager, John Deere Commercial Worksite Products.

“The Small Machine vs. Big Jobs Challenge will familiarize players with the models in our lineup while letting them have a little fun.”

John Deere previewed the Small Machine vs.

Big Jobs Challenge at World of Concrete 2016 in Las Vegas. The game was played more than 260 times over the course of the show.

Players can access the Small Machine vs. Big Jobs Challenge from a personal computer or mobile device at http://fearthedeere.com.

Caterpillar Changes Its Executive Roles Caterpillar changed the roles of three of its officers, effective as of March 1, 2016.

Doug Hoerr, formerly vice president with responsibility for the Wear, Components & Aftermarket Division, has become vice president with responsibility for the Material Handling & Underground Division.

He replaces Denise Johnson, who was recently named group president with responsibility for Resource Industries.

Greg Folley, vice president with responsibility for the Sustainable Solutions Division, also assumes

responsibility for Hoerr’s former division.

The remanufacturing business, currently overseen by Folley, transfers to Tana Utley, vice president with responsibility for the Large Power Systems Division.

“Our strong, capable leadership team will absorb these responsibilities and continue our commitment to customers. In this business environment, we are streamlining at all levels, including senior management,” said Doug Oberhelman, Caterpillar chairman and CEO.

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>> PRODUCT PREVIEW >> INDUSTRY NEWS Vacuworx Sets New Standard for Vacuum Lifting with “H” Models Vacuworx has set the new standard in material handling with hydraulic-powered vacuum lifting systems. Developed to meet customer requests for a cleaner, quieter lifter, the new hydraulic “H” models feature the same powerful performance of Vacuworx diesel-powered systems with much lower operating costs. Available for the Vacuworx MC 5 and all RC Series vacuum lifting systems, the hydraulic option takes lifting to the next level.

Next Level Benefits Vacuworx hydraulic vacuum lifting systems attach easily to excavators and backhoes with a dedicated auxiliary hammer circuit, with or without a coupler system. Because the “H” models utilize the hydraulic system of the host machine, there are no fuel requirements,

which saves time and reduces operating costs. In addition, hydraulic vacuum lifters have fewer moving parts, which means greater reliability and less maintenance. Environmentally friendly Vacuworx hydraulic lifting systems produce near zero noise and air pollution, providing the ideal

solution for construction sites within city limits or with strict emission guidelines. Hydraulic operation provides improved startup performance in cold weather and eliminates the possibility of fuel freezing in extreme conditions.

The hydraulic lifters also weigh less than diesel models,

allowing further reach and greater total lift capacities.

The MC 5H lifter is designed for use with compact host vehicles such as wheel or track type loaders and excavators.

Ideal for utility applications, the MC 5H has a lift capacity of 11,000 lb and is suited for lower weight specifications and smaller material sizes. The RC Series hydraulic vacuum lifting systems are designed to handle materials from 22,000 to 44,000 lb in conjunction with large-capacity host carriers.

They are best suited for large diameter energy and infrastructure projects, as well as material handling at port facilities, pipe mills and storage yards. Each unit comes with a double set of lugs to accommodate any single or double vacuum pad arrangement.

John Deere Excavators Offer Big Productivity in Mid-Size Packages

The evolution of the John Deere G-Series excavator lineup continues with the introduction of the Final Tier 4 130G, 160G LC and 180G LC excavators. The updated construction-class models are equipped with a Final Tier 4-emission certified engine and offer the reach, digging depth, lift capacity, and arm and bucket dig force required for a variety of industries.

“With powerful digging force, swing torque, and lift capacities that make the most of every gallon of fuel, the 130G, 160G LC and 180G LC are an exceptional addition to any fleet,” said Mark Wall, excavator product marketing manager, John Deere Construction & Forestry. “In addition to the emissions update, we used this as an opportunity to add a few customer inspired features like a programmable thumb attachment, rear view camera and light packages.”

The 130G (98 hp), 160G LC (121 hp) and 180G LC (128 hp) feature a certified Final Tier 4 John Deere PowerTech™ PVS 4.5L engine. As implemented in the other G-Series models, operators don’t have to worry about diesel particulate filter (DPF) cleaning as it still occurs automatically with no impact to machine operation, and can go up to 15,000 hours before ash removal. Like its counterparts, all three models feature excellent total fluid economy (diesel fuel and DEF).

The DEF tank is located near the toolbox of each machine within the steps to the service platform. The tank features an integrated spill guard that drains any DEF spillage outside the machine and is conveniently located near the fuel tank to save time during daily service.

John Deere designed the excavators with an updated hood for improved engine access, while still offering unparalleled visibility.

For convenience, the nine-pin diagnostic connector was moved into the cab to reduce diagnostic testing time for technicians. A rear view camera is now standard equipment improving visibility to the rear of the machine. Inside the cab, a programmable thumb attachment mode is also available and enables operators to program oil flow for thumb attachments with the monitor.

Handrails come standard on all Final Tier 4 G-Series excavators, and help maintain contact when climbing the upper structure to service the engine – improving service accessibility and security.

An optional light package now includes a hood light to provide greater visibility to the engine compartment to easily see daily service points. The hood light is ideal for customers who work in dark or low light environments, or those who run multiple shifts and may need to conduct latenight fuel and lube operations.

For additional information, visit www.JohnDeere.com or contact your local dealer.

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>> PRODUCT PREVIEW Hyundai Robex 235LCR-9 In the 9 series cabin you can easily adjust the seat, console and armrest settings to best suit your personal operating preferences. Seat and console position can be set together and independent from each other. Additional creature comforts include the fully automatic high-capacity air conditioning system and the radio / USB player.

Reduced Stress: Work is stressful enough. Your work environment should be stress free. Hyundai’s 9 series provides improved cab amenities, additional space and a comfortable seat to minimize stress to the operator. A powerful climate control system provides the operator with optimum air temperature. An advanced audio system with USB player, AM/FM stereo and, plus remotely located controls is perfect for listening to music favorites. Operators can even talk on the phone with the hands-free cell phone feature Operator - Friendly Cluster The advanced new cluster with 7 inch wide color LCD screen and toggle switch allows the operator to select his personal machine preferences. Power and work mode selection, self diagnostics, optional rear-view camera, maintenance check lists, start-up machine security, and video functions were integrated into the cluster to make the machine more versatile and the operator more productive Computer Aided Power The engine horsepower and hydraulic horsepower together in unison through the advanced CAPO(Computer Aided Power Optimization) system, provide the precise flow needed for the job at hand. Operators can set their own preferences for boom or swing priority, power mode selection and optional work tools at the touch of a button. The CAPO system also provides complete self diagnostic features and digital gauges for important information like hydraulic oil temperature, water temperature and fuel level. This system interfaces with multiple sensors placed throughout the hydraulic system as well as the electronically controlled engine to provide the optimum level of engine power and hydraulic flow.

Power Mode: P (Power Max) mode maximizes machine speed and power for mass production. S (Standard) mode provides a reduced, fixed rpm for optimum performance and improved fuel economy. For maximum fuel savings and improved control, E (Economy) mode provides precise flow and engine power based on load demand. Three unique power modes provide the operator with custom power, speed and fuel economy Work Mode: The work mode allows the operator to select single flow attachments like a hydraulic breaker or bi-directional flow attachments like a crusher. Flow settings unique to each attachment can be programmed from within the cluster.

User Mode: Some jobs require more precise machine settings. Using the versatile U (User) mode, the operator can customize engine speed, pump output, idle speed and other machine settings for the job at hand.

For more information visit: ww.hceamericas.com.

Kubota B26TLB From landscaping to construction, experience maximum versatility in Kubota’s B26TLB utility tractor. Loaded with a 26 HP Kubota diesel engine, standard 4-Wheel Drive and sloped loader arms and hood designed for improved visibility on the work site, the B26 takes productivity to the next level.

Tackle the toughest jobs with the B26’s rugged 26HP diesel engine. It boasts an enviable combination of high power, high torque rise, low noise, low vibration and cleaner emissions. Easy to start on cold mornings, this high-output, liquid-cooled engine will prove both dependable and durable for years to come.

Four Wheel Drive Combined with the differential lock for the front axle, the B26’s 4WD ensures virtually unstoppable performance under difficult conditions or on varying terrain.

For more information visit: www.Kubota.com.

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>> PRODUCT PREVIEW >> INDUSTRY NEWS Doosan DX180LC-5 (T4) Crawler Excavator Upgrade your productivity with the DX180LC-5, a strong and reliable performer. It delivers outstanding performance with the high-pressure common rail fuel system on the engine and Electronic Power Optimizing System (EPOS). Choose between four work modes, auto-idle and machine diagnostics.

Smart Power Control (SPC) improves machine efficiency while maintaining productivity through variable speed control and pump torque control. Each of the four power modes will function with SPC engaged or disengaged, however SPC only is active in the digging work mode. Auto shutdown helps owners save fuel while the machine isn’t working.

The EPOS links to the engine’s Electronic Control Unit, electronically synchronizing the engine and hydraulic system. The system enables power and work operating modes, electronic control of fuel consumption, autoidle, hydraulic oil flow regulation and control, and machine diagnostics. It also improves control, allowing you to precisely place material and easily level ground.

Like all Doosan excavators, the DX180LC-5 is known for operator comfort. Advantages include a roomy cab, simple controls, excellent visibility, high-performance air conditioning and extra storage. The standard air suspension seat includes height and weight adjustments, headrest and armrest, and reclining options.

If equipped with the optional two-way auxiliary hydraulics, use the optional foot pedal or joystick buttons to control hydraulic attachments.

The standard 7 in. color LCD monitor shows machine information, including operation history, flow rate control and filter/oil information. It also displays video from the rear-view camera, which is uniquely placed to give you better visibility to blind spots. A split screen mode enables you to see critical machine information and the camera simultaneously.

Durable materials and extensive testing ensure long-term reliability. The

D-type frame and chassis adds strength and minimizes distortion, while the arm assembly is reinforced for longer life. The bucket pivot pin features a polymer shim to reduce wear and increase grease retention.

Longer maintenance intervals - and easy maintenance - minimize your time in the shop. Key maintenance areas are easy to access, and grease points are centralized for easy maintenance.

Enjoy reduced maintenance costs and extended machine life with the durable x-chassis, strengthened boom and arm assembly, and extended greasing intervals.

Easily access the oil filter, air cleaner, fuel filter, radiators and other engine components.

The centralized boom and arm grease points are grouped for easy maintenance.

Monitor your Doosan heavy equipment and manage maintenance to reduce operating costs with a 3-year subscription to Doosan Telematics.

To comply with Tier 4 emissions standards, the DX140LC-5 incorporates a high-pressure common-rail (HPCR) fuel delivery system as well as cooled exhaust gas recirculation (CEGR) combined with a diesel oxidation catalyst (DOC) and selective catalyst reduction (SCR). Read about our Tier 4 technologies to learn more.

Learn about all of the other performance, reliability, and comfort features by viewing the crawler excavator product section.

For more information visit www. doosanequipment.com.

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>> CANADIAN INSIGHT

CODIE TAYLOR

Infrastructure Spending Expected To Spike In Alberta

As the money starts flowing, we are anticipating supplying heavy equipment to many new and exciting projects throughout the province and the entire country.

As Alberta’s economic outlook continues to sputter in light of the slumping price of oil, Prime Minister Justin Trudeau is promising to fast-track $700 million in spending to fund the province’s fledgling economy. Alberta, with a population of over 4.1 million people (11.8% of Canada’s population), is Canada’s oil-rich province whose economy was highly dependent on the resource and is feeling the full force of the sinking price of oil. Its economy contracted by 1.6% in 2015 and is facing projections of further slumping in 2016 and into 2017.

This money, along with an additional infusion of $251 million from a rarely used trove for provinces that are sustaining a year-to-year decline in revenue, will mostly be spent on infrastructure projects in attempt to soften the economic blow.

In an early February 2016 meeting with the premier of Alberta, Rachel Notley, Prime Minister Trudeau laid out the government’s plan to immediately invest millions of dollars in projects previously announced through the Building Canada Fund. While the previous government earmarked millions to spend from this fund in Alberta in the fall of 2014, hardly any money flowed out the door.

The government has not released a list of which projects will receive the expedited funding. The federal government allots money to each province to fund projects that fall under the Canada Building Fund’s mandate: creating a stronger economy, a greener environment and stronger, prosperous communities.

The new government described projects that will receive this fast-tracked funding as needing to be “shovel-worthy” and not just ”shovel-ready.” There are arguments from many in Alberta who are saying that now is the time to immediately start building various pipelines, including the Energy East and Northern Gateway Pipelines, to get oil to markets around the world.

This is unlikely to happen any time soon in light of January’s announcement in which the government enhanced regulations on the

oil and gas sector. These rules stipulate that every new pipeline will need to pass a strict environmental assessment and gain First Nations (Aboriginal) consent before being approved by the government. Critics of these measures, mainly in the Conservative camp, are disappointed that the government is delaying projects that would create jobs for thousands of Albertans and help regain economic stability in the province.

Trudeau’s Liberals prioritized infrastructure spending throughout the recent election. It is looking like the government will be doubling this investment in order to stimulate growth as they dig themselves deeper into deficit, giving the opposition much fodder to attack the Liberals with.

Similarly to the 2008-2009 recession, when the governing Conservatives borrowed billions to fund stimulus spending, including major infrastructure projects, the Liberals will be funneling money to projects they believe will create jobs and sustainability by providing a long-term economic footprint.

The Liberals, shifting away from the oil and gas sector, have placed high priority on initiatives that will be innovative and environmentally sound, including public transport and green technology. They have also prioritized social infrastructure projects, including hospitals, community housing and old-age homes.

Projects seeking expedited federal funding will have to prove that they fit with the new government’s priorities and will provide long-term benefits to the Canadian economy.

There are still numerous projects commencing soon beyond oil and gas that will benefit Alberta operators of heavy machinery and will be keep our partners in Alberta busy. As the money starts flowing, we are anticipating supplying heavy equipment to many new and exciting projects throughout the province and the entire country. We will continue to follow the new initiatives and are proud to be part of Alberta’s economic recovery at this tumultuous time.

CODIE TAYLOR is a senior consultant at Bluesky Strategy Group. She can be reached at codie@blueskystrategygroup.com. Members of the Bluesky Strategy Group contributed to this report.

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Sell More Equipment Increase Your Profits Grow Business EPG Offers Total Dealer Fleet Protection Component failures can result in large capital expenses and can wreck a profitable sale. Protect your dealer fleet from these potential added costs with EPG Extended Service Protection Plans.

EPG Extended Service Protection Plans:

• Offer multiple coverage options for new and used equipment • Provide parts/service revenue opportunities • Are transferable • Increase machine retail value

Extended Service Protection Plans Dealer Corporate Package Loss Damage Waiver Physical Damage Insurance Dealer Fleet Protection Dealer E&O Certificate Tracking Service

Learn more about EPG at www.epginsurance.com or call 901-685-3100

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>> A CLOSER LOOK

EPG is Creative, Solutions-Based

DAYNA MAEDER

Noteworthy for its flexibility and customer-centered mentality, EPG Insurance caters to the construction industry’s many unique needs.

Founded in 1987 in Memphis, Tenn., EPG Insurance is a private company that has been providing stellar, customer-minded services in the construction industry for nearly three decades. Still based in the largest city in Tennessee, EPG is led by CEO Dale Hendrix and his dedicated team.

The company is known for its variety of products that fit right in with the construction equipment industry. In order to keep companies healthy, EPG provides services such as extended warranties for new and used equipment, and point-of-sale physical damage insurance. In addition, it offers dealer corporate package insurance, certificate tracking for rental insurance, and loss damage waivers.

Essentially, Hendrix says, EPG runs the gamut for the dealer — and with insurance offerings in construction, trucking, agriculture and forestry, it’s certain that the company can help with a variety of complex client needs.

“We’ll insure your dealership, we will put a warranty on the equipment that you sell or put in your rental fleet, we’ll provide insurance when the machine is rented, and we’ll track the certificates to make sure your dealership is protected while it’s out on rent,” Hendrix said.

EPG prides itself on working with dealerships to ensure that, at the end of the day, the dealership’s bottom line is healthier. It achieves this goal by assisting to uncover new revenue sources, finding ways to bring more value to a dealership’s customers, and promising to serve its clients better than they’ve ever been served before.

When the company launched in the late 1980s, it began by serving John Deere industrial dealers in three states and, as its reputation grew, so did its client base and product offerings. In just three months, it expanded to dealers throughout the United States.

Ever evolving to meet its customers’ needs, EPG continued to grow and expand throughout the years. In the 1990s, it developed programs for rental

EPG’s CEO Dale Hendrix and his dedicated insurance professionals are located in Memphis.

equipment and extended warranty products for industrial equipment. JCB, Inc. was its first extended warranty factory sponsor, and this initiative also grew to a number of manufacturers and countless dealerships.

Currently, EPG has offices in both the United States and the United Kingdom and is noteworthy as one of the few American insurance agencies tribunalized by Lloyds of London, which gives it direct access to the Lloyd’s market.

For nearly 30 years, EPG has been providing services to a large client base and has plenty of anecdotal evidence showing how the company has been able to solve complex issues for its clients; but one fact stands out to Hendrix the most.

“Our finest moments are when we put together warranty programs for manufacturers that met the needs of their clients and helped them sell more equipment,” he said.

The driving force behind EPG’s many successes is that the group wants to serve the construction industry, and, Hendrix says, all its employees have a passion to do so. Its website mentions that its mission is to make it easy for dealers to sell and manage insurance products for their customers. It adds that each product is structured with the dealer in mind and that the company strives to offer exemplary service and competitive rates that will, in turn, give the dealer a more competitive edge while saving time and boosting the bottom line.

“We want to be creative in our thought process — we offer standards, but we also

want to be flexible and creative to help (the dealerships) sell more equipment,” he said. “We’re creative in our suite of products.”

On its website, EPG shares some success stories from companies that include Blanchard Machinery, Vermeer Equipment of Texas, Daimler Truck Financial, Smoky Mountain Truck Center, Empire Trucks, ATC Freightliner and Tidewater Equipment Company.

The group at EPG, with Hendrix at its helm, is no stranger to hard work and complex problem solving. One of the toughest client issues that they’ve solved is to help protect dealerships from any liability when it comes to rental equipment.

“We developed a certificate tracking system to meet the needs of our dealers for rental equipment, to help protect them from a liability standpoint,” he said.

The company is dedicated to being a partner with dealerships, and promises innovative products and outstanding service, while keeping its rates competitive and its terms flexible.

EPG Insurance is a long-standing member of Associated Equipment Distributors and a platinum-level investor in The AED Foundation. Hendrix believes the company’s involvement with AED has in turn been beneficial for his company.

“It’s given us access to a large dealer body, and within that dealer body it has given us credibility because we’re committed to the same industry as committed members of AED,” he said.

Hendrix also points out that the commitment to the industry shows in the fact that EPG isn’t just on the peripheral of AED, but is joined at the hip with its commitment to the construction industry and its dealerships.

Backing up this claim with action, Hendrix has been to nearly every annual summit since his company has been a member of AED — he’s only missed one in the past 20 years. He has also attended most of the executive forums that have occurred in the last 15 years.

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“I think you have to find what you and your company do, and do it well.

Don’t try to be all things to everyone — find a niche and focus on that niche. Find your core competency and then drive that.”

AED’s 2017 Summit & CONDEX will take place next January and will feature guest speaker Dick Cheney. The next forum is the 2016 AED/AEM Equipment Economic Forum in Rosemont, Ill., that will take place September 21-23. AED has many additional events planned for 2016, including a trip to Cuba and a rental manager seminar in May, the annual Washington Fly-In and an AED Foundation instructors conference in June, a leadership conference in August, a service manager development seminar in September, an equipment dealer business “war games” event in October and a branch manager seminar in November.

In addition to heading up EPG Insurance as its CEO, Hendrix is a director at both White Oak Underwriting Agency and Shepherd Compello, both located in London. Similar to EPG, White Oak’s mission is to develop new ideas and solutions for its clients, and believes that strength comes from client relationships that are fortified with time, effort and commitment.

Likewise, Shepherd Compello champions its clients through its value system

of integrity, loyalty and passion.

Despite its many successes and profitable business model, EPG is not content to ever be stagnant. The company is always seeking ways to improve services to its clients all over the nation “We’ll continue to look at our product offering and make sure it’s focused on the construction equipment industry, and try to remain flexible,” Hendrix said.

“We want to stay connected to dealers, understand their needs and help them sell that equipment and those products.

When asked what advice he would give to young and emerging industry leaders in the construction business, Hendrix said, “I think you have to find what you and your company do, and do it well. Don’t try to be all things to everyone — find a niche and focus on that niche. Find your core competency and then drive that.”

EPG says it is committed to the heavy equipment and trucking industry for the long haul. For more information on EPG Insurance and its offerings, call 901-685-3100 or visit their website at www.epgins.com.

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>> LOOKING AHEAD

REX A. COLLINS

The Art of the Deal: Buying or Selling Your Dealership

Many factors demand the attention of buyers and sellers en route to a problem-free transaction and a fair deal.

This the second article in a twopart series. See our March issue for “Your Dealership: What’s It Worth?”

There has been a flurry of acquisitions and mergers among equipment dealerships recently.

In a recent six-week period we concluded six dealership transactions. With banks lending again, and offering favorable terms, buyers are plentiful, and we believe dealerships will continue to exchange hands in bigger numbers than usual, at least for the next four or five years.

While the time appears right, as a buyer or a seller you need to be aware of how transactions are being framed in today’s market, what kind of due diligence should be done, and how to avoid common pitfalls. Even a small mistake in such a significant transaction can cost you big dollars.

In virtually every dealership buy-sell transaction, both buyer and seller will require the support of consultants experienced and expert in the dealership industry to avoid problems and keep the process moving toward closing. Still, it is important for owner and prospective owner to understand the key issues and hurdles to address en route to a successful transaction: ▶ Letter of Intent (LOI) – While some transactions are consummated without a LOI, its primary benefit is to outline clearly the intentions of both buyer and seller relative to the major components of the deal. We recommend a non-binding LOI, but we do believe it should contain one binding term: the seller won’t negotiate a sale with anyone else for a designated period of time. Such a “no-shop” agreement protects the buyer from having the dealership sold to someone else while he is incurring what can be substantial costs related to due diligence, drafting documents and other pre-sale expenses. The LOI will also include a non-compete agreement and provisions for such things as work in process, customer deposits, in-process sales transaction and advance trades. It also serves another useful purpose: to guide the attorneys in drafting a final agreement. ▶ Fixed Assets – While it is not uncommon to employ an appraisal firm to assess the value of shop equipment and other fixed assets – computers, desks and other tangible property used to

operate the business and that will be sold with the business – it is not required and frequently proves an unnecessary expense. Just identifying an appraisal firm familiar with the assets associated with a dealership is difficult, and the cost of an appraisal usually outweighs its benefits. A better approach is for buyer and seller to walk the shop and agree on the value of the various items.

While the net book value does not determine the value for transaction purposes, the agreed value typically hovers around 50 percent of the original cost of fixed assets in working order. ▶ Parts Inventory – We suggest the only inventory to be valued are those parts and accessories that are returnable to the manufacturer, that is, undamaged, in the original unopened packaging, and listed in the manufacturer’s latest price catalog. A physical parts inventory should be taken by an independent service, the cost to be shared by the two parties, just prior to the closing date. Obsolete parts, those for which there has been no demand for a year or more, often prove a sticking point in buy-sell negotiations, but since there is little chance, less than 10 percent, that a dealer will ever sell an obsolete part, its value should be significantly discounted for purposes of the sale. ▶ New Whole Goods – All new and undamaged inventory items should be purchased at invoice price, increased for any additions, such as added accessories and setup charges, and decreased for any deletions, like accessories that have been removed. The sale price should also be reduced by any manufacturer incentives or volume or trade discounts that reduced the seller’s cost at time of purchase. ▶ Used Whole Goods – The best way we’ve seen this handled is for each party’s used equipment managers to walk the inventory and agree on prices item by item. Those items on which the parties cannot agree and which are not wholesaled by the seller can be covered by a section in the definitive agreement that allows the seller to use the buyer’s staff and resources to liquidate the items.

REX COLLINS is a Principal at HBK CPAs and Consultants. He directs HBK’s National Dealership Industry Group, which provides tax, accounting and operational consulting exclusively to dealers. Rex can be reached by email at rcollins@hbkcpa.com or by phone at 317-504-7900.

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The Art of the Deal Checklist

____Letter of Intent ____Fixed Assets ____Parts Inventory ____New Whole Goods ____Used Whole Goods ____Rental Equipment ____Customer Records ____Liabilities ____Intangible Value ____Communications ____Inadequate Data ____Real Estate/Facility

▶ Rental Equipment – Rent-to-rent items should be treated as used whole goods, and rent-to-sell as new but discounted based on hours of use. ▶ Customer Records and Other Items – The seller should turn over to the buyer, without additional charge, all customer lists, files, contracts, service records, orders and other customer-related documents. Customer lists should be provided in a downloadable format convertible to the buyer’s DMS and CRM system. The buyer should have rights to the same business telephone numbers and such marketing vehicles as the website and online advertising sources. As well, the deal will include the purchase of advertising or other funding the seller has earned from a manufacturer and other unused funds that can be used in the future conduct of the business. ▶ Liabilities – Buyers usually obtain their own floorplan and other financing, but in some cases, a buyer might assume an existing contract. The definitive agreement between the parties should clearly state that the buyer will not assume or be liable for any debt or other contingencies, such as financing agreements or insurance F&I charge-backs, that have been incurred by the seller and that the seller indemnifies the buyer from any such obligations.

If they want to assume certain liabilities, buyers should be cautious to conduct their due diligence before assuming any such obligations. ▶ Intangible Value (Goodwill and Blue

____Taxes ____Mergers ____Factory Approval

Sky) – Goodwill is an economically justified value beyond that of the business’s tangible assets. This value is typically the most difficult to negotiate, part of the problem often being an unwillingness of the seller to allow the buyer’s advisors to conduct the due diligence in advance of an agreement being reached. In such cases we apply a formula. For example, for a recent transaction we used a multiple of 1.5 times average, annual normalized earnings over the past five years before deductions for the owners’ salaries, but not to exceed a certain ceiling figure. ▶ Communications – It is absolutely imperative that both parties keep the lines of communication open during the negotiation up to the closing date. We like to schedule and mediate weekly calls between the parties to ensure ongoing open communication. Regardless of how organized and careful the process, surprises will arise, and open and honest discussion will go a long way to ensuring the parties reach their common goal, to complete the deal. ▶ Inadequate Data – As a seller, it is wise to be diligent about providing all related information upfront to the buyer. Failure to do so typically sabotages the sale. This is perhaps the best argument for both parties to employ knowledgeable consultants to guide them through the deal. There are multiple intricacies and nuances associated with transitioning a dealership; too often things discovered after a sale turn what seemed like a good deal sour. ▶ Real Estate and Facility – If the real

estate and building are part of the deal, then independent appraisals are a must.

Many buyers today are leasing the facility from the selling dealer. In such instances, the seller needs to be careful not to wind up with an unmarketable single-purpose facility at the end of the lease. We suggest a lease-purchase contract that requires the buyer to purchase the facility, though possibly at a discounted price, at the end of the lease.

Other considerations: ▶ Taxes can have a dramatic impact on the net proceeds to the seller and future cash flows of the buyer. ▶ In mergers, where a buyer is purchasing stock in the dealership as opposed to buying the assets, the due diligence and the sellers’ representations and warranties will be much greater than in the more-typical asset deal. ▶ Sale transactions are subject to factory approval. We advise the seller to inform the factory following the signing of the LOI, not before. The manufacturer has a plan for the dealership, its “point,” which can be a leveraged to the advantage of the seller.

The purchase or sale of the dealership is likely one of the largest financial transactions in which you will be involved. A lot is at stake. Attending to the issues outlined here, with the assistance of advisors experienced in dealership transactions, will help ensure you get the right deal.

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>> REGIONAL REPORT

PHIL RIGGS

In the West, Workforce Development Initiatives Are the Theme for 2016 By working together as an industry on noncompetitive issues like the technician shortage, we can make huge gains at overcoming some of the largest challenges facing equipment dealers today.

Now that Summit is officially over and we are well into the year, I’ve had the opportunity to hit the road in support of AED members west of the Mississippi. Most recently I’ve been able to spend time in Denver and Salt Lake City, where the local groups in those areas are hard at work addressing one of the biggest problems the industry faces – the technician shortage. A problem that according to a recent study by the College of William and Mary costs the industry an estimated $2 billion in lost revenue annually.

In Salt Lake, several AED members are working hand in hand with Salt Lake Community College to achieve AED accreditation for their diesel program.

This effort is being led by AED Utah president and president of Century Equipment, Ryan May. In January 2015, I made my initial visit to Salt Lake in order to revive the local group and begin talks with the dealer community and local community college there to gauge their interest. Today, it appears their diesel program will be fully accredited by fall 2016 and will be breaking ground in July to build a brandnew, state-of-the-art facility.

This new facility, which boasts 120,000 square feet, is a result of a pending $37 million in state funding. Several other dealers, including Intermountain Bobcat, Honnen Equipment, Wheeler Machinery and Komatsu Equipment Company, are working together to support the school’s program along the way.

In Denver, a similar story is taking place. The Colorado Equipment Dealers Association, led by Giles Poulson, president of Faris Machinery and supported by dealers such as 4 Rivers Equipment, Honnen Equipment, and Bobcat of the Rockies, is developing a program with Community College of Aurora that will graduate an estimated 21 diesel technicians on an annual basis.

In many of these cases, dealers are offering to pay for students’ tuition ($10,000 for the full program at Community College of Aurora) and offer some sort of paid internships along the way – a model that has been extremely successful for not only recruitment, but also retention. By working together as an industry on noncompetitive issues like the technician shortage, we can make huge gains at overcoming some of the largest challenges facing equipment dealers today.

Just like we saw significant wins in 2015 with the highway bill, sec. 179 and bonus depreciation – all of which were a result of years of collaboration between competitors, AED and members of Congress – this too can be tackled in the same fashion.

The AED Foundation would not be able to facilitate initiatives like this without the support of our members. Currently the Foundation is in the middle of celebrating 25 years of service to the industry and is conducting its annual campaign.

If you are looking for a way to support progress in the industry, please consider making a tax-deductible investment of $2000 today; you’ll be supporting an organization that supports your business. Also, in recognition of 25 years of continued success in these areas, all dealers who make this investment will receive access to AED’s catalog of webinars that were held in 2015, a great training resource for you and your employees.

PHIL RIGGS is western regional manager for AED. He can be reached at priggs @aednet.org.

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>> EMERGING LEADER

BY DAYNA MAEDER

Jamie Carson:

From ‘Reveille’ to Rentals

Former U.S. Marine’s road to the construction industry has been anything but typical.

Jamie Carson, general manager of rental operations and fleet at Road Machinery, spent the first 13 years of his career path moving throughout seven states as a U.S. Marine.

After his service, the Oregon State University graduate wanted to stay close to his family. In keeping with the “get stuff done” mentality of the military, Carson felt most at home in the construction industry. He was quickly recognized for his success and was recruited by Highway Technologies as an operations manager. With that experience, working with equipment was a natural fit, and he began working at Road Machinery. Starting out as the business manager and now holding the title of general manager, Carson continues to excel in his field.

To diversify his expertise and learn other sides of the business, Carson was sent to AED’s Business War Games conference, where he became well-versed in the dealership side of the industry in addition to the rental side he was already working in. “(This) opened my eyes to the whole package,” Carson said of the two-and-a-half day course sponsored by AED. “It is done very well and gives a broad view (of) how a business can flow. It shortens that learning curve.”

Carson’s heart belongs in the hands-on work at dealerships, where he can work with the customers, the equipment and his group of employees.

“I really like what AED is doing now, seeing what the future customers are looking for and how educated the customers are,” Carson said. “(With) the technology, the equipment, and how advanced it is, AED is really catering to growing dealership professionals.”

Carson says the most satisfying part of his work to date is taking his business and growing it

into something special, and also raising brand awareness.

But he contends that his favorite part of the job is on site.

“I know the best days that I have are when I’m with salesmen on customer sites and I help solve issues with machinery — and it clicks,” he said. “Being outside and helping the customers meet their needs is incredibly cool.”

Invited by AED to join the Emerging Leaders Council (ELC), Carson readily agreed, and the Council’s vice chair says he enjoys networking and the ability to have an open forum.

“The timing is perfect; there Jamie Carson, 41, is a are a lot of dealerships struggling former Marine who transito find people,” Carson said. tioned to the construction “Business War Games and other industry after 13 years of training are crucial to fill those serving the United States. gaps. People are still going to buy machines and still do construction. We need those positions filled; the customer base is there.”

Carson hopes that, through these programs, people will be able to learn through education instead of hard knocks, and will learn the ins and outs of dealerships, key performance indicators, financials, how scoring is done and more.

“It takes a lot of people pulling in the same direction,” he said. “The learning curve can be pretty painful, and AED is helpful with the continued training, certification programs and online training programs. Everyone is looking for talented people; this helps close that gap.”

Carson’s company is rapidly growing, expanding into larger machines and securing long-term large-scale projects. It has quadrupled twice in approximately four years.

AED is assisting by training people and bringing in key players who are smart in the rental game and how it should look in a dealership.

“I’ve been extremely fortunate over the years to work for some really incredible people and bosses that have allowed me to grow and make mistakes and form teams, and I’ve had some incredible people that have worked for me over the years that have made some things that shouldn’t have been possible, possible,” Carson said. “If you’re looking for the key to success, it’s finding…people that can do the right thing.”

To learn more about Road Machinery, visit their website at www.roadmachinery.com or find them on Facebook at www.facebook.com/RoadMachineryLLC.

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>> VIEW FROM THE HILL

REP. LOU BARLETTA

Responsible Infrastructure Choices Take Political Courage As a product of a family-owned road construction business, I know well the pressures such small companies face.

When I travel the roads and cross the bridges in my Pennsylvania district, I am constantly reminded of the dire needs of our transportation infrastructure. Improvements are being made, and there have been important changes at the state and federal levels, but there is still a great deal more that Congress should be doing.

In my position on the House Transportation and Infrastructure Committee, I have been vocal in my support of forward-looking ideas to help rebuild our nation’s crumbling transportation system.

As a product of a family-owned road construction business, I know well the pressures such small companies face. Builders and contractors cannot make decisions about hiring and purchasing equipment in the absence of a long-term funding plan, and that begins with the federal Highway Bill. For too many years, Congress had used short-term patches to prevent construction and maintenance funding from running out, but I had grown weary of that tactic and told House leaders that they could not count on my support any longer. After much debate, I ultimately supported the $305 billion, five-year plan we passed in December.

The length of the bill is a marked improvement, but I saw it as only a first step, and a missed opportunity for achieving a long-term funding mechanism we can count on.

Unfortunately, during consideration of the Highway bill, House members were not allowed to offer amendments that created new approaches to funding. That was irresponsible. Every year the Highway Trust Fund faces shortfalls.

Without a sustainable, dependable user fee, the Highway Trust Fund will continue to rely on transfers of money borrowed from the Treasury.

Throughout the many transfers to the Highway Trust Fund, we have used pension gimmicks,

bank fees, and reduced federal employee benefits to pay for our roads and bridges.

Around the country, I have heard from people that they would be willing to pay a very small increase in the fuel price for road improvements, if they could actually see the progress being made. Because politicians in Washington want to be protected from making hard choices, those ideas are never debated — to the detriment of our children and grandchildren, to whom we are leaving the debts. The point is that we must be willing to cast difficult votes of all kinds in order to ensure that our roads are safe for everyone who uses them and that we don’t leave the bill for a defunct infrastructure system to the next generation.

When it came to reauthorizing our aviation programs, I also took the long view with respect to funding the Airport Improvement Program (AIP), the infrastructure funding source that our local airports depend on for much-needed construction or upgrades. I proposed, and successfully added to the legislation, an increase in the AIP to restore funding to fiscal year 2011 levels — about $3.5 billion — and to increase the amount by two percent in each following year.

This was the first time in many years that the Transportation and Infrastructure Committee members had to take a vote on raising funding levels for infrastructure. The amendment passed the Committee by an overwhelming vote of 47–12, proving that when members of Congress are required to make hard choices they will stand for infrastructure investment.

In too many situations, new ideas are batted down with the excuse that, “It’s not the way we’ve always done it.” Coming from a private sector business background as I do, I believe that is about the lamest possible reason not to try a new approach.

REP. LOU BARLETTA is in his third term representing Pennsylvania’s 11th congressional district. He serves on the House Transportation and Infrastructure Committee, where he chairs the Economic Development, Public Buildings, and Emergency Management Subcommittee. He’s also a member of the House Homeland Security Committee and the House Education and the Workforce Committee.

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1/14/2016 11:41:04 AM

>> DEALER >> DEALERDEVELOPMENT DEVELOPMENT

Looking for a Seminar Exclusively for

Rental Managers?

The rental industry continues to be a growing delivery channel for dealers today. Distribution of construction equipment is steadily evolving with more equipment entering the market through dealer rental fleets. Your dealership needs to be focused on maximizing your rental opportunity and improving your profitability!

Senior management and departmental managers who oversee rental fleets will gain insight into the rapidly developing rental channel and how that can equate to profitability.

About the Presenter:

PROGRAM AGENDA DAY ONE Session 1 A maturing rental market – critical to equipment distribution?

Session 2 Rental service is a process – profitability through process

Larry Kaye is a former Board of Directors member with the American Rental Association, where he has received a number of service awards, presented at various conferences and organized the Construction University program for educating members. Kaye has written training materials for the Caterpillar Rental College, authored a series of rental operations manuals for Bobcat and written articles for trade publications on various aspects of the rental industry.

DAY TWO Session 3 Characteristics of a profitable rental fleet Session 4 Case study project: applying what you’ve learned

Join AED May 17-18 in Las Vegas for our 2016 rental manager seminar!

• Visit bit.ly/aedevents • Call 630-574-0650 TO RESERVE YOUR HOTEL ROOM:

Embassy Suites by Hilton Convention Center Las Vegas Act by April 19 to reserve your spot within AED’s room block!

• Visit bit.ly/16rentalreserve • Call 702-893-8000

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>> DEALER DEVELOPMENT

25 Years of Building a Model for Dealer Success In April of 1991, The AED Foundation (AEDF) was founded with the mission to enhance the success of member companies by encouraging continuous learning, providing educational opportunities for today’s employees, and improving the availability and quality of equipment industry employees in the future.

This month marks exactly 25 years as an organization and we are taking this opportunity to look back at how The AED Foundation has impacted our industry with the following: ▶ Creation of National Technical Standards for College Diesel Technician Curriculums ▶ AED Accreditation Program that currently has 39 accredited programs at 29 colleges in the U.S. and Canada ▶ Development and implementation of technician pre-hire assessment ▶ Development of industry-specific professional education delivered via webinars, seminars and online courses Certification of over 80 managers at AED dealer members as a part of our certified manager training Already in 2016 Start in January: The Foundation has already taken strides to enhance members’ services. A new

By Dennis Learning Management System was implemented, allowing access to webinars with a live and “on Vander Molen demand” feature. If you haven’t already, take a couple of moments to view this new system at https:// lms.aedu.org/.

2016 Chairman, The Foundation has consistently been a champion for workforce development. AEDF commisThe AED Foundation sioned a team of public policy researchers from the College of William and Mary to analyze the industry’s technician shortage based on a 2015 survey of AED’s members in North America. The report, released at the 2016 AED Summit, provides a series of recommendations including improvements to federal workforce policy and steps to strengthen community-based relationships for recruiting and developing talent. The full report can be found at http://bit.ly/AEDReportSkills.

In February I visited with representatives in Washington D.C. to discuss how we can lead changes in many of the workforce issues identified in the report. AED will continue to build these relationships, but I encourage you to do the same on a local level. Send the Skills report to your governor, elected officials and anyone on a state level involved in workforce funding. If you have questions about the report, please reach out to Steve Johnson at 630-468-5134.

The AED Foundation accredited its first Canadian diesel technology college program. This affiliation is an important part of the Foundation’s school partnership strategy for North America, as well as its strategy for Canadian members. In addition, the networking of college diesel-equipment technology programs across North America is beneficial for all the schools and for the equipment industry. The Foundation has identified other programs in Canada that could lead to additional affiliations.

Looking Forward As we look ahead to the next 25 years, The AED Foundation is dedicated to continuously developing school partnership programs based on industry needs in partnership with AED-affiliated dealers, manufacturers, technical colleges, and volunteers.

However, AED dealers need to be involved in the development of industry too. I challenge you to step back and think about how you are currently using AEDF services. If the answer is “not at all,” why is that? The Foundation has many industry-specific services (seminars, webinars and certifications) to assist you as a company to grow and develop your talent pool. Start working with an AEDF accredited technical school if you aren’t already. Developing technicians takes time and resources; start planning now for your dealership’s future.

Finally, support the future of The AED Foundation by investing in the 2016 Annual Campaign. You are supporting the progress The Foundation is making for the construction equipment industry as whole! Your tax-deductible donation will allow us to continue serving you better. Visit bit.ly/investaedf (case sensitive) to contribute online, or contact Rebecca Lintow at 630-468-5113; rlintow@aednet.org.

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>> DEALER >> DEALER DEVELOPMENT DEVELOPMENT

Top

20 Reasons Technician Recruitment Efforts Fail 19 18 I have been at AED for a 17 number of years and have observed several things 16 that more than once have stood out to me as potential self-inflicted 15 obstacles to 14 success.

Here are the Top 20.

13 12 11 10 9 8 7 6 5 4 3 2 1

We all know that Top 10, or “whatever number” have a formal plan with items that reinforce each lists, are popular in the media today. At the risk other? of presenting “a list too long,” I figured this would 13. Repetition – Is your recruitment message still be a good approach to what I think is an communicated repeatedly at events and in various important topic. Why do media? technician recruitment 14. Assigned ownership efforts fail? and accountability – Is There are, of course, the this person identified and “uncontrollable” issues. assigned with goals?

These include things such 15. Collective local indusas demographics, parental try efforts – Do you work and cultural bias, industry with other local stakeholdstereotypes and the “fourers to meet mutual needs? year degree syndrome.”

16. Tracking – Do you Let’s not focus on these, but track recruitment outcomes on what can be controlled. and take corrective action?

Yes, the uncontrollables are 17.

Incentives (recovery there, but we also know that rates, production goals) many have overcome such obstacles and have creatively – Do they disincentivize established highly successful journeyman mentors of new recruitment programs. techs?

By Steve Johnson I have been at AED for a 18. Consistency – Vice President number of years and have Does your recruitment Foundation Operations observed several things team communicate the that more than once have same message, or create stood out to me as potential confusion? self-inflicted obstacles to success. Here are the Top 19. Expectations of success – Do previous 20: recruitment obstacles affect future optimism?

Lack of: 20. Student and decision-influencer engagement 1. Recruiting knowledge and processes – Is – Do you take time to develop these relationships? there a resident or an outsourced expert at your The above can be valuable to you as a checklist of dealership? potential obstacles to your recruitment efforts. Of 2. Effectively managed recruitment plan – Is course, the converses of these items are potential someone in charge of plan development and controllable keys to success. I suggest you take a execution? few minutes with your team to review your recruit3. Continuity: short- and long-term – Do you ment plan. See what is working and what may not turn recruitment programs on and off? It’s counter-productive.

be working. Develop new ideas and approaches; 4. Resources: financial, material, human – Is the talk with others who have been successful. Again, needed investment, per the plan, being made? recruitment success is attainable, as demonstrated 5. Understanding tech job requirements – Who

by AED members who are successful technician does the initial screening; are they trained? recruiters.

6. Interest level of those assigned – Do those Contact The AED Foundation or your AED involved and accountable care?

regional manager to discover opportunities for 7. Tenacity; persistence – Do those involved and your dealership in these areas. accountable have “the fire in the belly”?

8. Market knowledge – Do you know your Save the Date: target audience, competition, and job market We will be celebrating the 25th Anniversary dynamics? throughout the year, continuing at the 2017 AED 9. Engagement with local schools – Are there Summit.

On January 10, 2017, The AED Foundaestablished solid relationships and involvement? tion will be hosting its first gala at the beginning of 10. New recruitment ideas – Are there opportuSummit. This event will be a unique opportunity nities for team brainstorming? to highlight the past and future of The Foundation.

11. Team decision-making authority – Do good Additional fees may apply. Stay tuned for more prospects disappear while waiting for a decision? information.

12. Promotion and public relations – Do you

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>> DEALER DEVELOPMENT

AED Technical Assessments: Why Use Them?

A Q&A with Charles Paradis; Brandeis Machinery & Supply Co. Many AED dealers are using the AED Technical Assessment as pre-hire tool. We asked Charles Paradis, VP Human Resources and Compliance for Brandeis Machinery & Supply Co. in Louisville,,KY several questions about his experience using AED Technical Assessments. This is what he had to say about the benefits of using this hiring and training tool.

Q: How does the AED technical assessments help you maintain a quality service technician staff?

A: The AED technical assessment provides numerous benefits that help us maintain a quality technician staff. It is useful in hiring decisions as well as developing existing technicians. It aids our trainers in knowing Students at an AED Accredited School are training to become service technicians. where our employees need additional training, for our apprentice program rather than going directly into our and can help our managers identify top performers and those with shop or one of our field service trucks. increased aptitude.

At a minimum, the technical assessment saves us money by Q: How have AED technical assessments helped you in the hiring process? Have they saved you money?

A: Every applicant takes the AED technical assessment as part of the screening process during application. It is one of two assessments we ask our applicants to take, the other being a personality assessment. That being said, it is just one piece of many that we consider when looking at an applicant. Also, we recognize that not everyone has an equal ability as a test taker so the assessment is never used as a pass/fail criteria.

We track everyone who has ever taken the assessment for us and create a rough scale identifying where the applicant falls in relation to others who have taken the assessment for us. We classify someone as having a score in one of the four quartile’s of assessment takers, and also note whether someone in the top quartile also fell within the top 10% of assessment takers for us.

The AED technical assessment helps us understand where an applicant’s skills and abilities may lie. It is particularly useful since it breaks out an applicant’s score into different categories, identifying where the applicant may be strong or weak. The assessment can also help us identify whether the applicant would be more suited

identifying an applicant’s current skill level and where he or she needs additional training.

Q: Do you currently use AED technical assessments for existing service technicians? If so, how has it benefited your company?

A: After seeing such success using the AED technical assessment for technician applicants, we are beginning to roll it out to our existing employees. We would like to ensure every one of our technicians has taken the assessment. Our trainers are excited about the ability to get useful data on our technicians that they can then use to improve directed training where needed. Our managers are also excited about having existing technicians take the technical assessment to help ensure we are putting the best and most qualified personnel in the field and that we are doing everything in our power to provide our employees with feedback and training necessary to help them in their careers.

Interested in how AED Technical Assessments can help your dealership? Visit http://aedfoundation.org/faqs/ for more information.

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2015 2015

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2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 50% FORKLIFTS - HI-REACH − 50% 50% SKID STEERS2013 − -2.2% 2.0% -2.8% 2015 -4.6% 2011 2012 2013 2014 2011 2012 2014 2015 2011 2012 4% -3.3% BACKHOES − -3.3% -7.7% 80% 85% 85% 80% 85% 85% 85% 85% 80% 80% 80% 85% 85% 80% 80% 80% 70% 75% 75% 76.7% 80% 80% 80% 85% 85% 70% 75% 75% 80% 76.7%80% 75% 75% 76.7%70% 70% 70% 70% 75% 75% 80% 80% 70.4% 70.4% 76.7%70% 70% 60% 65% 70.4% 70.4%61.7% 65% 70% 70% 61.7% 70% 75% 75% 70.4% 76.7% 60% 65% 65% 70.4% 70% 70% 61.7% 65% 70.4% 70.4%61.7% 63.1% 60% 60% 61.7% 60% 61.7% 65% 70% 70% 60% 65% 65% 63.1% 60% 60% 61.7% 61.7% 70.4% 70.4% 55% 55% 60% 60% 50%2011 14 2015 61.7% 55% 2012 2013 2014 2015 63.1% 2012 2013 2014 2015 61.7% 55% 2012 65%2011 65%2011 50% 63.1% 60% 60% 60% 14 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 50%2011 50% 50%2011 55% 55%2011 14 2011 2012 2013 2014 2015 63.1% 2011 2012 2013 2014 2015 2011 2012 20152015 The Dodge 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 50% 50% 60% 60% 55% Momentum Index climbed 0.5% in February to 126.1 55% 14 2011 2012 2013 2014 2015 2011 2012 20152015 2012 2013 2014 2015 50%2011 50%2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 50% 55% 55% 2015 50% 50% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 14 2011 2012 2013 reading 2014of 125.5.

2015 2011 2012 2012 2013 2013 2014 2014 2015 2015 2011 2012 from its revised January The Momentum 20152015(2000=100) 2011 2012 2013 2014 2015 2011 80% 80% 80% 50% AWP - ARTICULATING BOOMS − -2.5% -2.5% 50% FORKLIFTS - WAREHOUSE/INDUSTRIAL − -4.5% -5.9% SKID STEERS2013 − -2.2% 2.0% % 2015 -4.6% 80% 80% 80% 2011 2012 2015 for nonres-2011 2012 2013 2014 2015 Index is a80% monthly measure of the first (or2014 initial) report 80% 85% 80% 80% 80% 85% 80% idential building projects in planning, which have been shown to 70% 70% 70% 80% 85% 80% 80% 80% 80% 85% 70% 70% 70% 68.7%75% 70% 70% 70% lead construction spending for nonresidential buildings by a full year.

76.7% 76.7% 68.7% 80% 85% 65.2% 65.2% 70% 70% 75% 76.7% 76.7%65.2% 70% 68.7% 65.2% 70% 60% 60% 60% 75% for 76.7% 76.7% 68.7% February’s increase was the third consecutive month-to-month gain 70% 70% 70% 65.2% 70% 75% 60% 60% 76.7% 76.7%65.2% 60% 65.2% 60% 65.2% 65% 60% 60% 68.7%75% 61.7% 70% the65.2% Index, as a 1.0% pickup by commercial planning reports overcame 60% 2016 76.7% 76.7% 60% 65% 60% February 61.7% February 65.2% 50% 2016 50% 50% 60% 65% 14 2015a slight 0.1% 2012 2013 planning.

2014 2015 61.7% 65% 60% 2012 2013 2014 2015 2012 50%2011 50%2011 50%2011 60% 60% 60% decline by institutional 61.7% 50% 14 2015 2012 2013 2014 2015 2012 2013 2014 2015 2012 50%2011 50%2011 55% 50%2011 14 2012 2013 2014 2015 61.7% 55% 2015 2015 2012 2013 2014 2015 50%2011 50%2011 2012 2012 2013 2013 2014 2014 2015 2015 50%2011 60% 65%2011 2012 50% 2015 2015 2011 2012 2013 2014 2015 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 14 2012 2013 2014 2015 2011 2012 50% 55% 50% 50% 50% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 55% 14 2012 2013 2014 2015 2011 2012 2015 2015 2011 2012 2013 2014 2015 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 80% 80% 50% 55% 70% 2015 2012 2013 − 2014 2015 2011 2012 2013 − 2014 2015 80%2011 70% 80% AWP SCISSOR LIFTS -2.8% 0.2% GENERATORS -12.4% -10.9% 80% 80% 70% 80% 2.5% -2.5% FORKLIFTS - WAREHOUSE/INDUSTRIAL − -4.5% -5.9% 80% 80% 70% 80% 80% 70% below show physical utilization by equipment category.80% 60% utilization is the percentage of fleet cost which is on-rent 70% The charts Physical during 70% 80% 80% 70.0%80% 60% 70% 70% 70% 70.0%70% 60% 70% 80% 80% a given period.

Physical utilization is cost weighted.

“On Rent” and “In Fleet” status are determined on a nightly basis seven days a week, 70% 70.0%70% 60% 70%365 68.7% 68.7% 70% 70.0%70% 50% 60% 60% 68.7% 68.7% 65.2% 60% 70% 70% 70% days a year.

A unit is “On Rent” if it is at a job site earning rental revenue. A unit is “In Fleet” if it is a rental asset owned by68.7% the client. Units 60% 60% out 68.7% 70.0%60% 50% 65.2% 60% 50% 60% 68.7% 68.7% 70% 65.2% 70% 60% 60% 45.1% 45.1% 50% 60% for repair and refurbishment are considered “In Fleet.”

65.2% 50% 60% 40% 45.1% 60% 68.7% 68.7% 45.1% 50% 14 2015 45.1% 60% 2012 2013 2014 2015 2012 2013 2014 2015 45.1% 60% 2012 60% 50% 50%2011 40%2011 50%2011 50%2011 14 2015 45.1% 50% 2012 2013 2014 2015 65.2% 50% 40%2011 2012 2013 2014 2015 45.1% 50%2011 2012 20152015 2012 2013 2014 2015 2013 2013 2014 2014 2015 2015 50% 50%2011 60% 60% 14 2011 2012 2013 2014 Nov 2015 2015 / Oct 2015 50%2011 40%2011 2012 2012 50%2011 2012 Nov 2015 / Nov 2014 20152015 45.1% 50%2011 2012 2013 2014 2015 2014 50%2011 2011 2012 2012 Nov2013 20152013 / Nov 2014 14 2011 2012 2013 2014 Nov 2015 2015 / Oct 2015 2014 2015 2015 45.1% 2011 2012 2015 50%2011 50%2011 40% 50% 2012 2013 2014 2015 2012 2013 2014 2015 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 14 2015 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 50% 50% 80% 75% 75% 2015 2012 2013 2014 2015 2011 2012 2013 2014 2015 80% 75%2011 75% 70% 80% AWP TELESCOPIC BOOMS − -3.4% -3.3% BACKHOES − -3.3% -7.7% 75% 75% AWP - TELESCOPIC BOOMS -3.4% -3.3% BACKHOES -3.3% -6.4% -7.7% 70% 80% 80% EXCAVATORS -8.8%− -10.9% -4.6% WHEEL LOADERS − − -2.5% 80% 75% 75% % 0.2% GENERATORS −− -12.4% 70% 80% 70% 65% 80% 65% 80% 80% 70% 80% 80% 75% 75% 80% 80% 80% 70% 65% 65% 80% 60% 70% 70% 80% 80% 80% 80% 65% 80% 65% 80% 80% 80% 70.0% 70.0% 66.3% 70% 66.3% 80% 60% 70% 61.0% 80% 80% 80% 70% 65% 65% 80% 80% 80% 70.0% 70.0% 66.3% 60% 66.3% 55% 80% 61.0%70% 60% 80% 80% 55% 70.0% 66.3% 60% 70.0% 66.3% 65% 61.0%70% 70% 65% 70% 70% 70% 60% 70% 55% 70% 55% 70% 80% 80% 80% 70.4% 70.0% 70.0% 66.3% 50% 66.3% 60% 80% 80% 80% 70% 70% 70% 61.0% 70.4% 70% 70% 70% 55% 70% 60% 70% 55% 70% 60% 70% 70.4% 50% 60% 70.4% 70% 70% 70% 60% 55% 55% 70.0% 70.0% 66.3% 66.3% 50% 70% 70.4% 61.0% 70% 70% 60% 70.4% 50% 45% 70% 45% 70% 70% 70.4% 45.1% 63.1% 63.1% 50% 60% 70.4% 60% 60% 60% 14 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 50% 63.1% 63.1% 60% 55% 55% 45% 45% 60% 60% 60% 40% 50% 70% 70% 70% 63.1% 63.1% 70% 70% 70% 60% 60% 60% 14 2011 2012 2013 2014 2015 45.1% 70.4% 2012 50%2011 45%2011 63.1% 63.1% 45%2011 60% 60%2012 2012 2013 2013 2014 2014 2015 2015 60% 20152015 2012 2013 2014 2015 40% 50%2011 50% 60% 63.1% 63.1% 60% 14 2015 2011 2012 2013 2014 2015 45.1% 70.4% 50%2011 60% 60% 63.1% 2012 2013 2013 2014 2014 2015 2015 2012 45%2011 45%2011 63.1% 60% 60% 60% 2015 2012 2013 2014 2015 2011 2012 40% 50% 45.1% 63.1% 63.1% 60% 60% 60% 14 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 63.1% 63.1% 60% 60% 60% 2015 40% 50%2011 2012 2013 2014 2015 2013 2014 2015 50% 50% 50% 45% 45% 50% 50%2012 50% 80%2011 80% 50% 45.1% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 63.1% 63.1% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 50% 50% 50% 60% 60% 60% 14 2014 2015 2015 63.1% 2012 2012 2013 2013 2014 2014 2015 2015 2011 2012 2012 2013 2013 2014 2014 2015 2015 63.1% 2011 2012 2011 2011 2011 80%2011 80% 50% 50% 50% 60% 60% 60% 40% 50% 50% 2014 2015 2012 2013 2014 2015 50% 80%2011 50%2011 2014 2015 2011 2012 2012 2012 2013 2013 2013 2014 2014 2014 2015 2015 2015 2011 2012 2013 2014 2015 2011 80% 50% 50%2011 50%2011 2015 2011 2012 2013 2014 2015 2014 2015 2012 2013 2014 2015 50% 2012 2013 2014 2015 80% 50% 2014 2015 2011 2012 2013 2014 2015 80% 50% 75% 50%2011 50%2011 50%2011 2011 2012 2013 2014 2015 2011 2014 2015 2012 2013 2014 2015 2011 2012 2013 2014 2015 80% 75% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 70% 50%2011 70% 50%2011 50% 80% 80% SKID STEERS − -2.2% 2.0% FORKLIFTS -- HI-REACH − -2.8% -4.6% 50% 80% 75% SKID STEERS2013 − -2.2% 2.0% FORKLIFTS HI-REACH − 2014 -2.8% 2015 -4.6% 70% 50%2011 70% 50%2011 2014 2015 2012 2011 2012 2014 2015 2014 2015 2011 2012 2013 2011 2012 2013 2014 2015 2011 -4.6% LOADERS − 2013 -2.5% 2014 -6.4% 2015 75% 80% 70% 85%WHEEL 70% 80% 85% 80% 85% 85% 70% 85% 70% 85% 80% 64.0%65% 80% 75% 80% 85% 85% 65% 60% 60% 85% 80% 85% w w w . r o u 70% s e a n a l y t i c s . c o m 64.0% 85% 80% 85% 70% 70% 70% 60% 85% 60% 85% 80% 66.3% 64.0%65% 61.0% 61.0% 80% 85% 85% 70% 65% 60% 75% 60% 75% 70% 66.3% 64.0%76.7% 61.0% 61.0% 70% 75% 75% 60% 55% 76.7% 60% 80% 85% 85% 80% 85% 85% 70% 75% 66.3% 76.7% 61.0% 61.0% 70% 65% 50% 75% 50% 70% 75% 75% 60% 55% 76.7% 64.0%76.7% 75% 61.0% 61.0% 70% 75% 75% 2012 2013 2014 2015 66.3% 2012 50%2011 50%2011 60% 60% 70% 75% 55% 76.7% 70% 75% 75% 50%2011 70% 75% 75% 2012 2013 2014 2015 66.3% 76.7% 2012 50%2011 60% 55% 76.7% 61.0% 61.0% 60% 65% 65% 50%2011 45% 2012 2013 2014 2015 50% 2011 2012 60% 65% 65% 61.7% 61.7% 70% 75% 75% 61.7% 61.7% 76.7% 70% 75% 75% 60% 65% 65% 2015 2012 2013 2014 2015 2012 2013 2014 2015 50%2011 60% 55% 45%2011 2012 2013 2014 2015 2011 2012 76.7% 60% 65% 65% 61.7% 61.7% 61.7% 61.7% 65% 50% 65% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 60% 50% 45% 65% 61.7% 60% 65% 61.7% 61.7% 61.7% 2015 2012 2013 2014 2015 2011 2012 50%2011 60% 65% 65% 2012 2013 2014 2015 2013 2014 2015 45%2011 60%2012 65% 65% 61.7% 61.7% 61.7% 61.7% 50% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 55% 55% 50%2011 55% 55% 2014 2015 2011 2012 2013 2014 2015 2012 2013 2014 2015 2011 50% 55% 60% 65% 65% 45% 80% 50% 2014 2015 61.7% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 60% 65% 65% 55% 61.7% 50% 55%2011 2012 2012 2013 2013 2014 2014 2015 2015 61.7% 61.7% 55%2011 2015 2011 2012 2013 2014 2015 2014 2015 2011 2012 2013 2014 2015 80%2011 50% 55% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 55% 50%2011 55%2011 55%2011 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 50% 80% 2014 2015 2011 2012 2013 2014 2015 55% 55% 2011 2012 2013 2014 2015 2011 50%2011 55%2011 55%2011 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 80% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 50% 55% 55% 70% 50%2011 55%2011 55%2011 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 80% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 70% 80% 80% 80% 80% 80% 80% AWP -2.5% -2.5% FORKLIFTS -- WAREHOUSE/INDUSTRIAL -4.5% -5.9% 70% AWP -- ARTICULATING ARTICULATING BOOMS BOOMS − − -2.5% -2.5% FORKLIFTS WAREHOUSE/INDUSTRIAL − − -4.5% -5.9% 80% 80% 80% 80% 80%12 earthmoving 80% 70% filings on 80% UCC units.

64.0% 64.0% 80% 80% 80% 80% 80% 60% 80% 80% 80% 64.0% 64.0% 70% 80% 80% 80% 60% 64.0% 64.0% 70% 70% 70% 70% 70% 70% 60% 80% 80% 80% 64.0% 64.0% 80% 80% 80% 70% 70% Jan - Feb - Mar - Apr 68.7% -60%May - 70% Jun - July - Aug Sep - Oct - Nov - Dec - Grand 70% 70% 70% 68.7% Equipment Description 70% 70% 70% 50% 70% 70%15 70% 64.0% 64.0% 68.7% 15 15 15 15 15 15 15 15 15 15 15 Total 68.7% 65.2% 65.2% 70% 70% 70% 2015 2012 2013 2014 2015 50%2011 60% 65.2% 70% 65.2% 70% 70% 68.7% 68.7% 65.2% 65.2% 60% 2015 2013 2014 2015 50%2011 65.2% 60% 65.2% 60% 60% 60%2012 60% 68.7% 70% 70% 70% 68.7% 65.2% 2015 50% 65.2% 70% 70% 70% 2011 2012 2013 2014 2015 60% 60% 60% Articulated Dump Trucks 98 123 142 169 150 175 154 162 150 132 115 133 1,712 65.2% 60% 65.2% 60% 60% 65.2% 65.2% 2015 2011 2012 2013 2014 2015 60% 60% 65.2% 60% 65.2% 68.7% 60% 60% 60% 68.7% 50% 60% 60% 60% Crawler Dozers 472 251 348 512 379 433 481 446 425 422 330 477 5,022 60% 60% 60% 2015 2011 2012 2013 2014 2015 65.2% 65.2% 50% 50% 50% 65.2% 50% 65.2% 50% 50% 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 50% 50% 50% 60% 60% 60% 2014 2015Crawler Loaders 2011 2012 201317 2014 2015 40 2011 2012 33 2013 2014 201520 2011 50%2011 50%2011 50%2011 60% 60% 60% 15 20 25 15 14 13 8 15 238 50% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 50% 50% 2014 2015 2011 2012 2013 2014 2015 2012 2013 2014 2015 2011 50%2011 50%2011 2014 2015 2012 2013 2014 2015 50% 50% 50% 2012 2013 2014 2015 2014 2015 2011 2012 2013 2014 2015 50%2011 50%2011 50%2011 2011 2012 2013 2014 2015 2011 2014 2015 2012 2013 2014 2011 2013 2014 2011 - 2011 Crawler, Hydraulic 1,052 614 871 2015 1,062 840 50% 1,039 919 2012 810 782 1,080 10,558 2014 2015Excavators 2011 2012 2013 2014 2015 2011 2012728 2013 2014 710 2015 2015 2011 50% 50% 50% 50% 50% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 80% 80% Excavators - Wheeled, Hydraulic 31 13 25 22 31 70% 27 29 14 12 17 24 291 80% 70%27 80% 80% 70% 80% 80% AWP 70% 80% -- SCISSOR LIFTS − -2.8% 0.2% GENERATORS − -12.4% -10.9% AWP SCISSOR LIFTS − -2.8% 0.2% GENERATORS − -12.4% -10.9% 80% 80% 80% 70% 80% Mini Excavators 1,421 794 994 1,327 1,372 70% 1,530 1,419 1,213 1,191 1,260 1,153 1,490 15,264 80% 70% 80% 80% 70% 80% 70% 60% 70% 70% 60% 70% 80% 70% 80% Motor Graders 101 97 98 121 109 122 119 99 145 130 120 1,375 70.0% 80% 70% 80% 70% 70% 70.0%105 60% 70% 60% 70% 70% 70.0% 60% 70% 70% 70.0% 60% 70% 70.0% 70% 70.0% 12 60% Scrapers 70% - Conventional 9 4 6 6 15 12 5 7 N/A 7 90 70% 60% 7 70% 70.0% 60% 50% 60% 70.0% 60% 50% 60% 70% 60% 70% 70% 60% 70% 50% 60% 60% 50% 60% Skid-Steer60% Loaders 1,414 878 1,005 1,138 1,163 1,102 995 905 897 1,239 1,388 1,652 13,871 70.0% 60% 70.0% 50% 60% 60% 50% 60% 45.1% 45.1% 60% 50% 60% 45.1%Loader 45.1% 60% Backhoes 50% 60% 50% 40% 50% Tractor 411 402 358 352 345 432 369 338 320 394 256 382 4,374 45.1% 45.1% 50% 40% 50% 45.1% 60% 45.1% 60% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 40% 50% 50% 45.1% 2014 2015 45.1% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 50% 40% 50%2011 60% 50% 60% 45.1% 45.1% 50% 50% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 40% 45.1% 45.1% 50%2011 Wheel Loaders < 80 HP 223 103 130 170 142 147 118 109 114 136 180 255 1,850 2014 2015 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 40% 50%2011 45.1% 45.1% 2014 2015 2012 2013 2014 2015 50% 40% 50% 2012 2013 2014 2015 2014 2015 2011 2012 2013 2014 2015 50%2011 40%2011 50%2011 2011 2012 2013 2014 2015 2011 45.1% 45.1% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2011 45.1% 45.1% 2014 2015Wheel 2011 2012 2013 2014 2015716 2011 2012571 2013 2014 722 2015 2015 2011 Loaders > 80 HP 701 518 631 596 722 672 571 676 793 7,972 50% 40% 50% 50% 40% 50% 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 75% 75% Grand Total 5,950 3,812 4,628 5,635 5,160 80% 5,738 5,305 4,665 4,609 5,213 5,016 6,433 62,617 80% 75% 75% 80% 75% 75% 80% 75% 75% 75% 80% 75% 75% 80% 75% EXCAVATORS − -8.8% -4.6% WHEEL -2.5% -6.4% 80% 75% 75% EXCAVATORS − -8.8% -4.6% WHEEL LOADERS LOADERS − − -2.5% -6.4% 80% 75% | Construction 75% 38 | www.cedmag.com Equipment Distribution | April 2016 70% 65% 65% 70% 65% 65% 80% 75% 75% 80% 75% 75% 70% 65% 65% 70% 65% 65% 65% 70% 65% 65% 70% 65% 66.3% 66.3% 61.0% 66.3% 65% 66.3% 65% 61.0% 70% 70% 65% 65% 66.3% 66.3% 61.0% 66.3% 55% 66.3% 55% 61.0% 60% 60% 55% 55% 66.3% 66.3% 61.0% 70% 65% 66.3% 65% 66.3% 61.0% 70% 65% 65% 60% 55% 55% 60% 55% 55% 66.3% 66.3% 61.0% 66.3%4055% 66.3% 61.0% 60% 55% April 2016 CED.indd 3/18/16 3:32 PM 55% 60% 55% 60% 55% 66.3% 66.3% 61.0% 60% 55% 55% 66.3% 55% 66.3% 61.0% 50% 45% 45% 50% 45% 45%

PHYSICA

>> DATA TRENDS

Dodge Momentum Index Increases in February 

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ROUSE ANALYTICS

Physical Utilization Physical Utilization of Four Units  Rental 

PHYSICAL UTILIZATION

14 14

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The charts below shows physical utilization by equipment category. Physical utilization is the percentage of fleet cost which is on-rent during a given period. Physical utilization is cost weighted. “On Rent” and “In Fleet” status are determined on a nightly basis 7 days a week, 365 days a year. A unit is “On Rent” if it is at a job site earning rental revenue. A unit is “In Fleet” if it is a rental asset owned by the client. Units out for repair and refurbishment are considered “In Fleet.”

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 The Dirty Dozen - 7

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7

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201 201 201 201 201 201 201 201 201 201

201 201 201 201 201 201 201 201

201 201

201 201 201 201 201 201 201 201 201 201

201 201 201 201 201 201 201 201 201 201

>> DATA TRENDS

EquipmentWatch INDEX TM | January 2016 in Review | Monthly Heavy Equipment Inte

EquipmentWatch INDEX TM | January 2016 in Review | Monthly Heavy Equipment Intelligence

EquipmentWatch INDEX TM | January 2016 in Review | Monthly Heavy Equipment Intelligence

www.EquipmentWatch.com

www.EquipmentWatch.com

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Team Lessons From

If you’re a baseball fan, you wait all winter for spring training. That’s where Major League Baseball’s 30 teams, which make up a $36B+ business, hold a series of practices and exhibition games before the regular season. Players work out, practice key fundamentals, get more comfortable with roster changes, develop “chemistry,” and build momentum for the upcoming season. And it’s not a recent “fad” — MLB teams have done this for over 100 years.

Most organizations would also benefit from an “annual spring training” process for their respective teams: leadership, functional, cross-functional, ad-hoc, etc. Consider the following research from Dr. Eunice Parisi-Carew and The Ken Blanchard Companies: “About 60percent of the time, work teams fail to accomplish their goals.

To make matters worse, the experience will create lingering hard feelings among team members.”

Please don’t get hung up on logistics. Some organizational teams (e.g., special, short-term) should consider doing this training/development as part of their “start-up.” Others, like executive leadership and functional teams, might benefit by doing it annually, perhaps around goal-setting time. The key is creating a disciplined, annual practice time outside the pressures and demands of the organization’s “regular season.”

Focus on three objectives: 1) increase awareness of group dynamics; 2) assess strengths and weaknesses of the team; and 3) practice using the same tools and techniques. The payoff could be higher performance and more organizational wins.

Of the hundreds of organizational teams I’ve had the privilege to consult with, most struggle with four team

>> PEOPLE MANAGEMENT

BRIAN GAREAU

fundamentals. Each of these team fundamentals is simple in principle but not easy to consistently execute.

Consider the following. Do team members in your organization effectively: ▶ “Handle curve balls” when differences of opinion happen? ▶ “Step up to the plate” and accept true accountability for results, not just activities? ▶ “Decipher signs” to maximize communication with each other? ▶ “Turn a double play” and “sacrifice their at-bat” when solving problems?

If you answered “not always” or “no” to any of the questions above, here are some practical tips that can help.

Handling Curve Balls In order to successfully hit a curveball, a batter must recognize the pitch, maintain balance by not lunging, and keep their eye on the ball. These fundamentals are also valuable for internal teams to more effectively handle conflict and differences of opinion. First, accept the fact (recognize) that most teams will be made up of many different personalities, beliefs, perspectives, and yes — egos. Learn to identify these natural traits and preferences. Develop a deeper understanding of how others prefer to do things such as communicate and solve problems. The challenge is that it’s human nature to deal with other people the way we like to be dealt with. Second, don’t lunge when differences of opinion (curve balls) are thrown. Common “lunges” include: a) no decisions are reached or problems solved — team members just agree to disagree; b) energy is diverted from higher priorities; c) morale issues are created;

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>> PEOPLE MANAGEMENT

and d) division is created — more “we/they.” Finally, always keep your eye on the ultimate objective (hitting the ball). Many teams waste valuable time and energy continually debating the different methods or ways to potentially get there, not the objective itself.

Stepping Up to the Plate Work teams naturally cycle through four phases: forming, storming, norming, and performing. Some teams move through this development cycle quickly. Others get stuck in a particular phase. In addition, when there is any change — players, leaders, roles, deadlines, support resources, etc. — most teams will slip backward in the cycle, but hopefully only temporarily.

When teams are not in the performing phase, there are times when the handoff of information, work in progress, and even responsibilities get dropped. Mistakes happen — just look at the 2,700+ fielding errors committed in MLB last year. That’s when accountability is truly tested.

High-performing teams practice and make sure there is mutual responsibility for accountability. This happens when the leader (baseball’s equivalent of a coach or manager) and each team member mutually practice these six steps: 1. Clarify expectations 2. Define success (quantitatively and qualitatively) 3. Express confidence (ability to successfully complete the assignment) 4. Predetermine a check-in schedule 5. Provide dual feedback (what went well and what needs to change) 6. Reinforce (desired outcomes/behaviors and correction of undesired) Team members then “step up to the plate” when they pro-actively influence, take ownership, and deliver desired results. That’s accountability! Blaming someone else will get you benched.

Deciphering Signs It’s estimated that during a professional, nine-inning baseball game about 1,000 signs are communicated. There are signs between pitcher and catcher, coaches and base runners, and different players on the field. Their communication goals include being efficient, being on the same page and avoiding potential disasters.

Research by SIS International discovered that “70 percent of small to mid-sized companies claim that ineffective communication is their primary problem.” The study found that “a business with 100 employees spends an average of 17 hours a week clarifying communication, which translates into over $500,000 in annual costs.”

Here are a few key communication fundamentals that teams need to be constantly reminded of and practice: ▶ Actions speak volumes. Human communication effectiveness is comprised of three major components: words, tone, and body language. Words are the smallest component. Body language is the largest.

BRIAN GAREAU

▶ Make sure there is understanding. Studies have shown that 20 to 30 percent of everything that’s said is not interpreted as the speaker intended. ▶ Active listening is hard. In fact, the average human can only go 17 seconds before interrupting or interjecting. ▶ Holding people’s attention is challenging because the human brain has the ability to process information four times faster than we can speak.

High-performing teams don’t just share information, they generate understanding. This helps build relationships, trust, and the exchange of new ideas and best practices. Ultimately, they know miscommunication and/or ineffective communication creates errors — and errors can lose games!

Turning a Double Play and Sacrificing an At-Bat Ideally, the combination of individuals’ knowledge, skills, and experiences on a team helps them identify blind spots, create new ideas/solutions, implement change, and solve problems. But to do this, team resources must be leveraged (similar to getting two outs on one hit ball) and individuals must find common ground rather than merely stake out their personal claims (sacrifice an individual at-bat).

Two fundamental techniques/processes too often get overlooked or misapplied. These require a little extra up-front investment of time and energy, but if effectively applied they can help avoid misunderstandings, miscues, and missed opportunities later.

1. Brainstorming. Many teams have no common processes, guidelines, or time limits for brainstorming. It’s a free-for-all. In addition, a fundamental brainstorming rule is constantly broken: public critiquing. This causes creativity and piggybacking of ideas to quickly decline.

2. Consensus Building. It is not the same as 100 percent agreement. It is not using win/lose techniques like averaging, majority-rule voting, or negotiating favors back and forth. Rather, it is when each member of the team can honestly say: § “My personal views and ideas have been really listened to and considered.” § “I have openly listened to and considered the ideas and views of other team members.” § “Whether or not this decision would have been my choice, I can support it and work toward its implementation.”

Too often there is head-nodding of approval in meetings. But after the meeting, verbal and non-verbal communication tells others “I don’t support this” or “It will never work.”

Conclusion (bottom of the 9th) As MLB Hall of Famer Casey Stengel once said, “Games are lost, not won.” Don’t let neglecting these four team fundamentals lose business performance opportunities in your organization, like it has for so many others.

Don’t practice team skills until you get them right. Practice until you can’t get them wrong.

Consultant and author BRIAN GAREAU specializes in strategic, tactical, and practical solutions to engage and accelerate high performance. To learn about Brian’s services and find more articles and resources visit: www.BrianGareauInc.com.

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>> EQUIPMENTWATCH INTELLIGENCE Fourth Quarter Conclusions & 2016 Outlook Based on the trends that we saw over the past three quarters, we can likely credit increases in average rental rates to improvements in the housing market, which caused an increase in demand for heavy construction equipment. Throughout 2015 much of the heavy equipment rental industry demonstrated increases in rental revenue and rental volume, but increased competitionâ&#x20AC;&#x201D;especially from growing peer-to-peer networksâ&#x20AC;&#x201D;led many rental houses towards volatility for the first time in years. These two supply-side elements are generally indicative of an increase in consumer demand. However, there are also many other factors that one should take into account when looking at the average national rental rates, such as competition, climate, labor rates, and the local market of each metropolitan area.

In terms of an outlook for 2016, we should expect the monthly, weekly, and daily rental rates to continue rising slowly throughout the first quarter. Most rental houses update their rates in the first quarter of the year, so we should see a significant bump in rates in our next update. In terms of equipment that is insulated from the housing market, such as forklifts, we should see the majority of those rental rates remain steady. As long as the housing market continues to rise and the economy stays strong, we should continue to see rental rates increase.

Historically low energy prices are creating a double-sided effect for heavy equipment rental houses in energy-intensive regions. On one-hand, oil exploration and investigation efforts were projected to decline over 2014 and 2015. This trend obviously hurts equipment rentals for rental houses whose customers rely on them to help avoid the capital expenditures necessary for equipment purchase. On the flip-side, however, many experts have also stated that lower oil prices can have a muted effect on equipment rental volume, since energy extraction does not immediately cease when prices decline. This uncertainty over the impact The top five medium to large sized equipment subtypes showed relatively more volatility than the smaller subtypes. Telescoping Boom Rough Terrain Lift Trucks of changing energy prices will likely restrain major rate changes over the next quarter, especially as the economy approaches the two-year mark since the price (Telehandlers) had the largest increase over the last three quarters ($1071 to $1304), rising over 20% since Q2. Average rates for several types of equipment, of crude oil peaked in June 2014. including As there are many other external forces which affect the rental market, will Dozers continue to monitor trends and Crawler Mounted Hydraulic Excavators, Single Drummay Vibratory Compactors, and Standardwe Crawler declined in Q3 onlythe to rise again in Q4. provide regular updates through EquipmentWatch Intelligence.

Average Weekly Rate by Quarter, Medium to Large Equipment $3,500 $3,133 $3,000

$2,951

$2,899

By Michael Quinlan Industry Analyst EquipmentWatch.com

$2,516

$2,500

$2,464

$2,212 $2,109 $2,000

$2,288

$2,165

EquipmentWatch Rental Update | 2015-Q4 in$1,551 Review | Quarterly Rental Rate Intelligence $1,408 $1,500

www.EquipmentWatch.com$1,503 $1,304

$1,071

$1,248

$1,000

$500

MarketplaceAverage Analysis: Average Weekly Rate - Q2 Weekly Rate Trends Average Weekly Rate - Q3

Average Weekly Rate - Q4 The average weekly rental rate for the top five small to medium sized equipment subtypes over the past three quarters has been graphed below. Every subtype Crawler Mounted Hydraulic Excavators 4-Wd Articulated Wheel Loaders SingleaDrum Compactors is trending upwards, although Compact Track Loaders remained relatively level throughout the last quarters with only minorVibratory overall increase of 1.2%. Skid Steer Loaders declined slightly from Q3 to Q4, but an overall Standard increase Crawler of 8.9%.Dozers Telescoping Boom Rough Terrain Lift had Trucks www.EquipmentWatch.com Average Weekly Rate by Quarter, Small to Medium Equipment

EquipmentWatch Rental Update | 2015-Q4 in Review | Quarterly Rental Rate Intelligence $1,000 $927

$919

$900 $876 $800

$785 $786

$938

$855 $838

$804

$700 $626

$600 $576

$595

$500 $400

$398

$416

$449

$300

Average Weekly Rate - Q2

Average Weekly Rate - Q3

Crawler Mounted Compact Excavators

Skid Steer Loaders

Electric Self Propelled Scissor Lifts

I.C. Pneumatic Tire Lift Trucks

Average Weekly Rate - Q4 Compact Track Loaders

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>> EQUIPMENTWATCH INTELLIGENCE Marketplace Analysis: Regional Variance from National Average The map below shows the regional variance in weekly rental rates by region for the top ten subtypes, based on the overall average for the U.S. and Canada. The variance percentage represents the regional deviation from the average for a select group of equipment categories. In the instances where there may be insufficient data for a region within an equipment category the modifier shown is based on a comparison of all equipment categories. The Canadian data was collected and converted into U.S. dollars using the current exchange rate of 0.71. Region I (Alaska) has the highest average weekly rental rates of any region, and Region M (Ontario and Quebec) has the lowest average weekly rental rates. The lowest average weekly rates in the United States were exhibited in Region H (Arizona, California, and Nevada). The average rental rates in the Bay Area of California are some of the highest in the country, but substantially lower rates in Arizona and Nevada drove down the overall average rate for that region.

Region M

States/Provinces in Region

Variance

Ontario, Quebec

-12.42%

L

New Brunswick, Newfoundland & Labrador, Nova Scotia, Prince Edward Island Alberta, British Columbia, Manitoba, Saskatchewan

H

Arizona, California, Nevada

-4.53%

J

Hawaii

-2.99%

A

Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont

-0.69%

N

-12.03% -7.34%

E

Arkansas, Louisiana, Oklahoma, Texas

1.32%

K

Northwest Territories, Nunavut, Yukon

2.01%

B

Illinois, Indiana, Michigan, Ohio, Wisconsin

3.19%

C

Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia

5.95%

F

Colorado, New Mexico, Utah, Wyoming

6.12%

G

Idaho, Montana, Oregon, Washington

7.80%

D

Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota

8.93%

I

Alaska

11.62%

These regional rate modifiers represent the regional deviation from the average for a select group of equipment categories. In the instances where there may be insufficient data for a region within an equipment category the modifier shown is based on a comparison of all equipment categories.

EquipmentWatch Rental Update113 | 2015-Q4 in Review | Quarterly Rental Rate Intelligence www.EquipmentWatch.com Number of Participating Rental Companies: ď&#x201A;ˇ Covering More Rental Companies than Any Other Source Number of Equipment Subtypes Covered: 116 ď&#x201A;ˇ The Only Location for Both USA and Canada Rental Intelligence Total number of rates collected: 41,471

Fourth Quarter in Review: National Rental Rates on the Rise The 4th Quarter of 2015 demonstrated an interesting turn in the construction equipment rental markets. Q4 retail rental rates increased across the board as compared to Q3. Over the last quarter, Crawler Mounted Hydraulic Excavators had the largest jump among the top ten subtypes (displayed below), and Skid Steer Loaders were the only subtype with decreased rates. Single Drum Vibratory Compactors and Electric Self Propelled Scissor Lifts also saw healthy increases.

Monthly Equipment Type Standard Crawler Dozers Crawler Mounted Hydraulic Excavators 4-Wd Articulated Wheel Loaders Single Drum Vibratory Compactors Telescoping Boom Rough Terrain Lift Trucks (Telehandlers) Compact Track Loaders Skid Steer Loaders Crawler Mounted Compact Excavators I.C. Pneumatic Tire Lift Trucks Electric Self Propelled Scissor Lifts

Weekly

Average Change from Previous Quarter

Average Rental Rate

+2.27%

$2,951

$7,287

+13.39%

$6,790 $4,234

Daily

Average Change from Previous Quarter

Average Rental Rate

+1.79%

$1,057

$2,464

+13.82%

$813

+15.08%

+1.37% +6.04%

$2,288 $1,503

+3.43% +6.75%

$739 $510

+8.97% +13.99%

$3,557

+4.51%

$1,304

+4.49%

$426

-0.37%

$2,621 $2,332

+3.89% -0.68%

$938 $855

+2.05% -2.40%

$304 $271

+0.69% -4.53%

$2,328

+4.15%

$838

+4.32%

$264

+1.39%

$1,623 $1,047

+2.68% +10.05%

$626 $449

+5.24% +8.07%

$202 $170

+4.12% +3.38%

Average Rental Rate $8,745

Average Change from Previous Quarter +11.27%

Quarterly change in rates for the top ten subtypes by volume. These retail rental rates are an overall average by subtype for the entire United States and are derived from average rates advertised by distributors throughout the United States and Canada. These are not invoiced rates, but rather rates that were publically advertised online or which were obtained through data partnerships with rental houses.

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Good policy: Stay ahead of ever-changing

MARIJUANA

States are legalizing marijuana for medicinal and recreational purposes, but federal laws still classify cannabis as a Schedule I drug.

What’s your employee policy?

By Dayna Maeder

Twenty-three states and Washington, D.C., have legalized marijuana use in some form, and in Alaska, Colorado, Washington, Oregon and D.C., recreational use is fully legal. This decision has brought about many difficult conversations, from how to properly tax and bank the more than $2.7 billion revenue to how human resources departments should manage their drug use policies.

Michael Airdo, partner at Kopon Airdo, LLC, and AED’s lawyer, presented on this topic at this year’s Summit & CONDEX. He explained the statutes behind each state’s laws, and how that plays into dealerships’ handling of those who use marijuana. He advised dealerships to follow the marijuana use policies and procedures that they’ve already developed, with the assistance of legal counsel.

“As the legalization of marijuana use grows throughout the country, it is important to know your state’s statutes, rules, regulations, and court decisions regarding marijuana

use in the workplace,” Airdo said. “When developing a workplace marijuana use policy, consult with legal counsel to ensure your policy is not contrary to your state’s laws.”

Airdo says that most of these 23 states permit the drug for medicinal use, which means that registered, qualified patients are permitted to use marijuana to prevent or cure disease, or to relieve pain while under medical direction. The four states and the District of Columbia that permit it for recreational use say that people are permitted to consume cannabis for non-medical purposes and for personal enjoyment.

In medicinal marijuana usage, “registered, qualified patients” has legal definitions.

“Registered” means that they are licensed, permitted or otherwise certified through a state department or board, and “qualifying” refers to a person who has been diagnosed by a physician as having a debilitating medical condition.

Important articles exist in each state that outline the regulation of marijuana when it comes to personal use. An example of the

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guidelines for recreational use of marijuana is outlined under Article XVIII, Section 16 of the Colorado Constitution, and an example of the guidelines for medicinal use is outlined under the Illinois Medical Marijuana Act (410 ILCS 130/5).

Many states have chosen to decriminalize marijuana use, which essentially means that, for a first-time offense of someone having a small amount of the drug for personal consumption, there is generally no arrest, no jail time, and no criminal record. An example of the decriminalization of the personal use of marijuana is outlined in Minnesota’s Controlled Substances statute 152 (2015).

These statutes can vary even from state to state.

There are still many states where the use of marijuana is illegal. An example of this can be found in the Florida Drug Abuse Prevention and Control statute 893.13. In this state, as well as a handful of others, possession and use of marijuana is still considered a criminal offense and can result in imprisonment and fines.

The most important factor to consider when creating workplace policies regarding the personal use of marijuana is that, according to federal law, marijuana laws are under the Controlled Substances Act (21 USC 811) and it is considered illegal. The federal government does not recognize the difference between medicinal and recreational use.Along with hallucinogens, heroin, morphine and opium/opiates, marijuana is classified as a Schedule I drug, which means it has a high potential for abuse, it has no currently accepted medical use in treatment, and there is a lack of accepted safety for use of the drug under medical supervision.

Therefore, when it comes to creating HR policies centered on the use of marijuana, Airdo suggests firm policies and procedures, with clearly outlined follow-up actions. This is especially important when it comes to maintaining any government funding.

“Ensure that marijuana use policies and procedures recognize impairment and followup action for positive tests, impairment, or working under the influence,” Airdo said.

“When developing marijuana use policies and procedures, be aware that allowing permissive use may affect federal funding at stake. Develop a clear zero-tolerance policy to ensure your federal funding is not jeopardized.”

According to Airdo, in order for off-duty

use of marijuana to be considered legal, even medicinal use and even in states where it is considered legal, that conduct must be legal under both state and federal law. Otherwise, zero-tolerance workplace drug policies will be upheld, and an employee can be let go for failing a drug test.

As with any rule, there are some exceptions that are being studied and ruled upon by judicial boards. Some of these issues include the Americans with Disabilities Act (ADA) and state disability laws, the Family Medical Leave Act (FMLA) and the DrugFree Workplace Act. Because some employees may be protected under the ADA, employers may be required to comply by making reasonable accommodations for those with physical or mental impairment that substantially limits major life activities.

For employees who need to receive marijuana treatment for medicinal purposes, some employers in certain states may be required to permit them time off to receive the treatment, under FMLA. The biggest factor that dealerships need to consider when making decisions about marijuana use is the Drug-Free Workplace Act, which requires employers that contract with the federal government to enforce a zero-tolerance policy on illegal drugs at the workplace. Because this is a federal rule, it trumps state rules for those that are federal

contractors. It’s prudent to ensure that all employees are clear on the dealership’s policies on drug use, drug testing and discipline, or termination based on substance use. Drug testing is essential for a drug-free workplace, and can be used during pre-employment, for cause, or simply as random testing.

“Ensure all employees and applicants execute an acknowledgment form stating that they have received the dealership’s marijuana use policy so that the dealership does not have any issues enforcing the policy in the event of a violation,” Airdo said.

If a dealership decides not to use a zero-tolerance policy, another avenue is the “permissible use” approach, which essentially treats recreational marijuana use like alcohol use, where it’s prohibited to possess or use it at work, and testing is authorized when there’s reasonable suspicion of intoxication.

Again, federal contractors cannot make this choice, because funding can be lost.

Dealerships that choose this policy should also be sure to develop clear guidelines on the balance of how the marijuana is being used. After a drug test, assess how much marijuana is in an employee’s system, and measure it against HR policies. Decisions can also be based on the type of work the employee is performing, such as a desk job versus operating machinery.

In addition to federal contracts, state rules and ever-changing policies on marijuana use, dealerships that use unionized workers need to ensure their HR departments are up-to-date on the existing policies and any revisions that concern drug use or testing.

Airdo also cautions against taking actions regarding drug use, since the laws keep changing and evolving when it comes to marijuana.

“Due to emerging changes in marijuana use law throughout the country, consult with legal counsel before disciplining, terminating, or refusing to hire based on marijuana usage,” he said.

The takeaway for HR directors is to ensure there is transparency with policies and procedures, to create a zero-tolerance policy if there is federal funding, and to have on file acknowledgments of policies from employees and applicants. It is also pertinent to consult counsel on any new policies, and it’s important to obtain legal advice before making a choice that could potentially become litigious.

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www.aednet.org 630-574-0650

DID YOU KNOW?

The Benefits of Membership AED’s membership services and benefits are designed to enhance and develop the profitability

and continuity of construction equipment dealers by providing the tools, resources and voice in

Washington to help you remain viable, expand profits and plan for the future. For more information,

please contact our Membership Development Manager, Bob Bresson, at 630-574-0650 ext. 340, or at bbresson@aednet.org.

Manage Your Business with These Special Programs and Services Specialized Insurance and Employee Benefits Package Authorized and discounted insurance and retirement packages provided to members Bill Collection Services Authorized and discounted collections services provided to investigate, negotiate and collect outstanding bills from your customers Call Counsel Free legal hotline for AED members providing guidance on commercial, employment and litigation-based legal questions Dealer 20 Groups Noncompetitive dealers are matched by company size and sorted into customized groups to discuss best practices, key financial engineering techniques, banking terms and financing options for the heavy equipment industry.

Human Resources Helpdesk AED members receive free answers to employment-related issues and discounted HR services customized to meet the dealer’s needs.

April 2016 CED.indd 48

Benchmarking Reports and Publications AED members receive reduced pricing on these exclusive industry benchmarking reports: CED Magazine and Member Directory Members receive one free subscription to the industry’s leading publication and an annual member directory for the home office.

Digital News Subscribe to Scoop, AEDNews and Washington Insights for weekly and monthly updates on what is happening across all areas of the industry.

Cost of Doing Business The most up-to-date comparative financial performance information, available exclusively through AED, enabling dealers to evaluate their operating results.

Employee Compensation Opportunities Handbook The most comprehensive reference tool, spanning numerous distribution industries and covering AED dealer positions, providing a benchmark for compensating your employees.

Job Descriptions Pre-written descriptions of the 19 most common positions at a heavy equipment dealership, providing a benchmark for the work your employees provide Product Support Opportunities The ultimate sales tool for every product support manager. This report is tailored to give distributors an inside understanding of where the business is going and why, while providing a detailed analysis of the customer service skills it will take to bring the lion’s share of product support back where it belongs: the AED factory-authorized dealership.

Sales Compensation Report Provides updated benchmarking information on compensation for sales, rental and product support representatives as compared to topperforming dealers throughout North America State Dealer Protection Laws AED’s State Equipment Distributor Law book is designed to provide a better understanding of a dealer’s basic legal rights and obligations under state statutes.

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If they can say it, let them say it.

If they can do it, let them do it.

If they move, laugh, question, debate, struggle, problem-solve, they will learn it.

Shut Up and Train In other words,

You walk

into the classroom. You signed up for this one. You like the topic, and the trainer has loads of experience with the subject. You sit up front, ready to learn something new. The trainer starts. You have your pen in hand, ready to take notes.

He introduces himself and plows into a series of PowerPoint slides that seem to have no end. The level of detail is staggering. Your enthusiasm wanes. You start doodling on your notepad, mildly obsessing over a low but annoying hum coming from the air conditioner and the need to respond to those emails from the office.

Someone raises his hand with a question but this guy doesn’t look up to see it. You

By Amy Parrish start regretting that extra cup of coffee.

Is this guy not even going to call a break?

Instead of thinking about the colorful chart on slide 57, all you can think about is getting up, getting out.

We’ve all been that participant. It seemed like such a great topic for a session, but as you sit there with the intense need to sleep and are desperately wishing for break time — anything to pull you out of your misery and boredom — you wish you were in the other meeting room where the group seems to be laughing and talking.

Industries typically put subject matter experts into the role of trainer.

In the heavy equipment industry, lots of great technicians get promoted to trainer. And why not? It makes sense. After all, they know everything about the machines they service. But teaching someone how to service a machine uses a different set of skills from actually servicing a machine, and it’s a skill set that most new trainers have to learn on the job.

The training function is a vital component of our industry, yet it gets very little (sorry for this) training. Enter “Train the Trainer.”

Think about a class you attended where you really learned the topic, not just picking up snippets of information, but really taking in the information and getting it. I would bet money that it was a class where you, as the participant, did most of the talking and doing around the topic.

Great training is about engagement. The participant’s interaction with the topic and how much they get to talk about it, problem-solve it, touch it, question it and even move around while talking, questioning and problem solving determines how much they actually synthesize and retain.

Delivering training is a skill set. Delivering effective training is an art. Dave Meier, a leader in the world of professional training, advises trainers to never do for the participant what he can do for himself.

If they can say it, let them say it.

If they can do it, let them do it.

If they move, laugh, question, debate, struggle, problem-solve, they will learn it.

In other words, shut up and train.

And even though I teach this stuff all the time, I still get energy from being the one who is speaking. How could anyone be bored in my training sessions?

I’m not bored (because I’m the one standing, moving around and talking about the topic).

With a little help from the common cold, this lesson was made even clearer to me a few weeks ago. I was conducting a two-day seminar and the day before the training started, I caught a cold — not a delicate little sneeze and sniffle, but a downright nasty nose-running coughing-attack cold.

Needless to say, I was trying my best to keep the training as energized as I normally do when I am in top shape. So I had the participants get up, move around, problem-solve and interact with each other even more than I usually do. At the end of the training, participants came up and commented on how much they got out of that class. I thought to myself, you should be in my class when I’m on my game … then I thought, hang on a minute — I talked less, and yet they are saying they got more out of it.

Light bulb!

Me – Speak Less Them – Do More Result – They Get It … Really Get It In other words, shut up and train.

We learn more when we enjoy the process. But how does a trainer do that? After all, training is expensive so it needs to be taken seriously.

There is a lot of material to get through, and these machines are serious business.

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Engagement isn’t about the typical (and dreaded) feel-good teambuilding activities or the get-to-know-you icebreakers. It requires the trainer to have an unrelenting commitment to keeping the participants active with the topic and material at least 80% of the time. Every few minutes the participant should be able to talk, hear a fellow participant’s question, write or otherwise quickly interact, in a physical way, with the material.

Say you have to get through an Introduction to Hydraulics. It’s a tough curriculum. There are a lot of complexities. Before you go to the shop and look at the machines, there are a number of PowerPoint slides that you want to get through: schematics, diagrams, an overall look at the system. It’s after lunch, and eyelids are heavy as you move through the slides — even you are a little sleepy. After reviewing the schematic, you turn off the screen and ask the participants to partner with the participant sitting next to them and review the flow of hydraulic fluid as just shown in the schematic on the screen. Partner A, please tell your partner the flow of hydraulic fluid through the system. Try not to leave out any steps. Partner

B, check them for accuracy.

Good job. Next slide. You go through a little more material. Now you are ready to test if they are getting it. You are still in the classroom.

You put them into teams of four and ask them to diagram the schematic on a whiteboard or flip chart. What are you looking for? You are looking to see if they can recreate the schematic. This exercise will begin to tell you if they understand the flow through the system.

In 10 minutes, you will have given them four opportunities to explore this topic and synthesize it, and you, the trainer, will know if they understand the flow — because they just drew it for you and explained it to their team.

First, they are exposed to it. You show them on the screen and explain the flow. Second, now they can talk about it with a partner and not be embarrassed to get it wrong; after all, it is just the guy sitting next to them, not the whole class.

Third, they now have to talk about what they know with three other participants and diagram the flow. Fourth, you ask the teams to rotate and check another team’s diagram. Is it correct? (They love to red-line the mistakes of

the opposing team.) Repeated exposure to the critical topics creates retention. Get them to talk about it, problem-solve it, interact with it, and they will get it — fast!

Every group learning activity speeds up comprehension and allows everyone to talk and problem-solve simultaneously. Most technicians and operators are great with their hands and chose a career where they could be active. So finding ways, even in the classroom, to let them talk, problem-solve and be active is crucial, if you want to keep their attention and increase retention.

Remember: if they can say it, instead of you, let them say it. If they can do it, draw it, expose it, identify it, troubleshoot it, let them. Only the things they talked about, problem-solved, wrote down and interacted with on a real level will be remembered, retained and recalled later. It is our role as trainer to create an environment where the greatest amount of material can be fully absorbed, synthesized and retained. And creating constant active learning is the best way to shut up and train.

AMY PARRISH is a trainer and consultant specializing in “train the trainer” as well as presentation skills, communication and leadership topics for the heavy equipment industry. Amy is offering train the trainer courses for dealers this summer. Learn more about Amy’s programs and services at her website, www.amy.training..

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Itâ&#x20AC;&#x2122;s All About the

Customer April 2016 CED.indd 52

By Eddie Bluff

3/18/16 3:32 PM

M

y brother Brian and I have been talking about digital marketing, technology, and change for 15 years now. We’ve met and done business with hundreds of companies in the B2B supply chain. And we’ve traveled the country speaking to many large association audiences of manufacturers and distributors.

Looking back, it was a lot easier 15 years ago for our audience members to say: “That Internet marketing stuff isn’t relevant in my industry.” or “I’ll hold off for now.” or “That’s the folly of the young.”

We can’t afford to take these positions any longer — and we don’t need statistics to tell us why. All we need to do is reflect on any number of moments over the past week when we were in a restaurant, walking through a mall, driving down the street, or anywhere there was a gathering of people. All eyes were cast down at the devices in their hands.

In January, I traveled to Washington to present a talk on social media for distributors at the AED Convention. While waiting to board the plane, I noticed that at least two-thirds of the 100 or so people waiting to board were on their devices, myself included.

I had a flashback to my first job right out of college in 1984. I traveled for business and so many times had been in that same gate area.

I get bored easily, so I would read a number of newspapers during the trip. I never had to buy a paper, though, because I’d find the Wall Street Journal, USA Today and the Syracuse Post-Standard left on the seats by passengers before me. I’d read those papers and I’d be up to speed on the news and events of the day. Or at least the news that those newspapers chose to report.

Today it’s a bit different, isn’t it? Today, the news is real-time, and what I decide to consume may be very different than what you choose to consume. We choose the information that we consume for the same reasons we pick anything: we have our preferences. Why not consume info that pleases us and helps us do things better, including our jobs?

So, if you were one of those Debbie Downers in our crowd 15 years ago, remember this: there have been a lot of changes. The young have entered the workforce and are now our customers and emerging leaders. This is neither good nor bad, it’s simply the truth.

The buying process has changed There’s been a tremendous shift in power that has not favored the seller (distributors and manufacturers). Technology and the availability of instant information have turned the buying process on its head and have left many businesses wondering what happened. The steps in the buying process haven’t changed.

Buyers still have to realize a need, identify and research potential solutions, narrow down the field of solutions and vendors, negotiate, and eventually make a purchase. But how and where we consume that information has changed.

There was a Forbes report a while ago suggesting that industrial buyers conduct 70 percent of their buying process themselves by doing research online. This has eliminated parts of the buying process that sellers used to be fully engaged in. So, unless you’re found in search engines, unless you’re branding yourself as an expert on social platforms, your potential buyers are becoming educated by someone else – maybe even your competitors.

If I’m talking to your prospects every day on social media, good luck unseating me, because I’ve become their go-to guy.

Today, it’s critical to fill these gaps. To do that we have to: ▶ Position content that solves problems or answers questions that would be typical at each stage of the buying process. ▶ And if we deal with more than one customer type, or persona, they are likely to have different needs. ▶ We have to provide content that focuses on the customer and not on us.

Customer personas and the buying process Filling these gaps requires a real understanding of who our customer personas are and what type of information they need, and to provide that content in the form and medium by which they choose to consume it.

A customer persona is a fictitious archetype — a collection of characteristics that relate to those that we deal with in the buying process.

Fleet managers, engineers and purchasing agents are examples. In order to accomplish their jobs, these various personas that we have to influence will have different informational needs and very possibly will prefer to consume that information in different media forms.

Understanding who your personas are, what they need and how they prefer to consume information is a critical first step to anything you do in social media, on your website, in

your blogging efforts or in your hard copy literature. And depending upon what we sell and to what industry, there could be several different personas we interact with and have to influence.

Here’s an example of how two different personas would be involved and interact as they pursue a supplier:Eric “The R&D Engineer” and Barbara “The Buyer” work for Panasonic. Panasonic is going to release a new TV and this one’s going to be much thinner than previous models. Eric is going to be put on the project well in advance because he must source components that can withstand the increased heat due to the thinner cabinetry.

One of the components he’ll be looking for is high-temperature solder. If you’re a manufacturer or supplier of solder paste and Eric finds your website, he’s going to want to talk to your engineers, review case studies and get a sample of your solder. At some point, Eric is going to narrow down each vendor’s solution set and establish the buying criteria. From there, he will hand the project off to someone else.

In steps Barbara, “The Buyer.” Barbara has a technical understanding of the situation but at a high level. She’s probably a nice person but has no time for extensive personal interaction, whereas Eric needed that relationship with the engineers. Barbara is on a mission and has limited time. There is a stack of papers on her desk that keeps getting higher. She’s interested in on-time delivery, testimonials, warranty information, payment terms and getting the best product for the best price.

Filling the gaps in the buying process As good marketers, we need to understand what’s going to take place from the beginning of the sales cycle to the end and what personas are involved; then we need to: ▶ Sequence information that provides generous value and, in the process, positions us as the go-to source and shortlist contender for their business. ▶ Lay out our website to match the needs of our priority personas. It has to be about them and not about us! ▶ Write blog articles that make our personas’ lives and jobs easier. ▶ Send out emails that sync up with each step in the process and in a form that appeals to the respective personas involved.

These steps all work together to achieve the same goal: generate more leads, which results in closing more business. Heck, isn’t that why we go in to work every day?

EDDIE BLUFF is cofounder of Site-Seeker, Inc., a digital marketing and lead generation solutions provider to manufacturers and distributors in Industrial B2B Construction and Supply Chain Industries. Eddie travels the country conducting seminars and workshops focused on positioning businesses within the digital path of their customers. He has three daughters and two grandchildren, and is also a musician who loves to fish and write about himself in the third person.

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>> MYSTERY SHOPPER

BARRY HIMMEL

Undercover Shopper – How Is Your Dealership Really Performing?

A study in 2015 by InsightSquared showed that over $41 billion is lost annually by US companies due to poor customer service.

There are all sorts of measurements you can use to evaluate the health of your dealership. Everyone is searching for reliable quantitative data to let them know how they are doing.

The most common measurement comes from your financial statements. The reports you review and agonize over show the economic stability of your company. Your balance sheet, income statement and other reports provide a wide range of essential data.

There is, however, another important dimension to how your dealership is performing, and that is measuring the customer experience. Developing a loyal and passionate customer base is one of the cornerstones of a successful business. You need “raving fans” in order to grow your business and your bottom line.

A study in 2015 by InsightSquared showed that over $41 billion is lost annually by US companies due to poor customer service. Think of all the companies you have stopped doing business with because you had a poor customer experience.

Furthermore, in 2015 Zendesk determined that 82% of consumers have stopped doing business with a particular company because of bad customer service. I know that is the case with me and that it happens all the time for others as well.

You can’t ignore the impact of the customer experience. It affects your reputation, revenues, employee morale – almost every facet of your operation. You work too hard building your dealership to lose sight of the customer experience.

Considering this data, you can make a very strong case that obtaining the voice of the customer is as important as many of your financial metrics.

Obtaining reliable data on what your customers are thinking and saying about your company provides important insight into what your customers value and whether they feel appreciated.

Many companies use customer satisfaction tools. These appear in formats such as comment cards, email surveys, and follow-up phone calls.

The key is to obtain reliable data that is statistically significant. The Net Promoter Score® is a popular customer loyalty metric which, in its classic format, asks customers one question: “How likely are you to recommend our company to a friend or colleague?” These surveys, when done consistently and professionally, can be great customer service

measurement tools.

There is another important measuring tool that can be very revealing. You may be familiar with the popular TV show Undercover Boss. The premise is pretty simple – the boss disguises himself or herself to see how customers are treated.

While I am sure the show is heavily edited for effect, the message is still revealing. Customers are routinely ignored and not served properly. Revenue is being left on the table. Many of the bosses are astonished by what is happening when the employee is interacting with the customer.

It is a great concept when done properly. Senior management is typically focused on operational and financial issues and leaves the customer transactions to the front-line employees. This is understandable and necessary. We have to trust that the front line is properly trained to consistently deliver an exceptional customer experience.

So much of your business is generated through transactions and, for many reasons, the quality of those transactions needs to be measured. That is where the “undercover boss” comes into the picture.

They pose as a regular customer to see how they are treated. The experiences these bosses have are eye-opening.

While it may not be practical for you to turn yourself into an undercover boss, there are still many ways you can measure what is happening at your counter. Here are some easy-to-implement tools and techniques: ▶ Undercover Phone. The majority of your transactional business starts with a phone call. So have someone call your dealership. Ideally, you should record that call so that you can evaluate tone and be specific in your analysis. Some phone systems are sophisticated enough to record calls. If you have that capability, then analyzing calls will be a lot easier.

There are several mystery phone shopping companies that can inexpensively help with this.

In the interest of full disclosure, my company, Signature Worldwide, is a leading mystery shopping provider that services the equipment industry. We conduct almost 15,000 of those calls a month and make them available to our clients.

When you are evaluating the call, listen for both objective and subjective criteria. Some examples of objective criteria are:

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▶ How is the quality and consistency of the greeting? ▶ What types of questions are being asked? ▶ How you are delivering value and setting yourself apart from the competition? ▶ Are you offering related products or services – upselling or cross-selling? ▶ Are you closing by asking for the sale? ▶ How is the quality of the “thank you”?

These skills are important fundamentals that make a difference in getting the sale and building relationships with your callers. Often the results are disappointing yet enlightening, showing areas and skills needing correction or improvement that you otherwise wouldn’t have known about. ▶ Undercover Onsite. The onsite shop takes the phone shop one step further. On the Undercover Boss show, this is where the boss puts on the silly disguise and pretends he or she is a customer. If that is not practical, ask or hire someone to perform the onsite shop.

Give that person specific criteria to look for, such as: ▶ How long did it take to be acknowledged and greeted? ▶ Condition/appearance of the store ▶ Appearance of your employees

▶ Body language (smile, engagement, etc.) ▶ Quality of the transaction With the onsite shop you can get into much greater detail in regard to what is happening at your counter. There is more subjective criteria that can be evaluated. Unless you video the transaction, the shopper’s report needs to be as detailed and specific as possible. You want the feedback to be credible and contain specific examples of their experience. The more detailed and specific the shopper is, the greater the insight you will have as to what the shopper felt and saw as your “customer.” ▶ Undercover Electronically. Customers may communicate with you electronically using a variety of tools that include email, chat, Facebook or text. While this is not very common, it is growing in the equipment industry. This is another area in which you need to measure the customer experience.

With these electronic shops you can measure things like how quickly the inquiry was replied to and the quality of the response (friendly, proper grammar, advancing or closing the sale, thank you, etc.). Just because the format for this type of communication is more informal does not mean you should sacrifice professionalism or standards.

Regardless of the undercover shopping method used, your shopper must be credible and prepared. The person conducting the shop should have a believable scenario and be prepared to answer any question your employee may ask. The better prepared the shopper is, the more complete the data and results will be.

Looking at your business from the customer’s perspective will provide you with tremendous insight into how easy or difficult it is to do business with your company. It will also tell you if your employee is merely an “order-taker” or someone who is focused on helping the customer and closing the sale.

The information you gather from your undercover shops will also help you formulate a training plan. You will see the gaps in what is being delivered versus your ideal customer experience. After formulating a training plan, you will be able to implement the necessary coaching your employees need to better fill those gaps.

Whether you are a fan of Undercover Boss or not, the real motivation behind undercover shopping is to determine how your dealership is really performing in the eyes of your customers.

BARRY HIMMEL is the senior vice president at Signature Worldwide. In addition to mystery shopping services, Signature offers a wide variety of customized customer service and sales training for rental, equipment, and other industries. Barry is a long-time AED member and is a regular presenter at AED conferences and webinars. For more information on Signature programs, call (800) 398-0518 or visit www.signatureworldwide.com. You can connect with Signature on Twitter @SignatureWorld and on Facebook. Barry can also be reached via email at barryhimmel@signatureworldwide.com.

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>> CORPORATE GROWTH

CHRISTINE EMMERICH

How to Make Room for Corporate Growth Discover the options available to enlarge your workspace

Construction is not necessary to enlarge your workspace.

It’s true.

Is expansion or new real estate critical in embracing corporate growth? That depends.

What are you seeking, and how soon do you need it? Is it an immediate need to increase floor space for new operations or additional storage?

Would you believe it if I told you that construction is not necessary to enlarge your workspace?

Believe it or not, it’s true. It just takes a little thinking outside of the box.

Unfortunately, there may be a lack of awareness of available options, or maybe there’s just not enough time in a day to research them.

From my own experience, even a quick Internet search can drum up pages upon pages of product material — some useful, and some not — and can cause information overload. Fortunately, there is a light at the end of the tunnel, through collaboration with professional workspace evaluators. And best of all, some workspace assessments are free of charge and come with a no-obligation guarantee.

So, if you were informed you have more floor space to utilize in your current facility, would you believe it? Professional surveyors can help recognize unused space and recommend solutions for using it to your company’s best advantage. It can’t hurt to have your facility evaluated, especially prior to developing expansion or new building plans. Imagine how your company may respond as you present them with alternative cost-saving solutions to their growth initiative.

One space-saving solution may provide a multitude of returns: ▶ Uncovering hidden floor space may open new areas for production (or

other revenue-generating activities). ▶ Hiring more staff or automating these operations may increase productivity. ▶ An increase in productivity may lead to more product being sold and distributed. ▶ A rise in sales and product distribution can lead to greater revenue for the company.

Here are some examples of how uncovering overlooked floor space can work to your company’s advantage. Take a look at these alternatives for storing unused pallets. They can be stored on 1) a stationary rack, 2) in a tall contained pallet stacker, or 3) leaning up against the wall. Which one do you see taking up the least amount of space?

Another example is storage bins. No, this is not a bad game of tic-tac-toe. In this picture, a red X marks each bin lacking full usage, and a green O shows the only bins full to the top. Bins can be a common culprit in unused floor space, especially when there are aisles upon aisles of them. Is there an alternative solution? Yes, there is.

My suggestion is this: take a good look around your current facilities; look beyond what you normally see. Better yet, call in a professional — an outsider — who will evaluate it like a Realtor does a house before putting it on the market. They may help open your eyes to unforeseen space-saving capabilities. As the old English proverb says, “Where there’s a will, there’s a way.”

CHRISTINE EMMERICH, Wisconsin Lift Truck Corp. Christine.emmerich@wisconsinlift.com Offering free, no-obligation workspace evaluations 54 | www.cedmag.com | Construction Equipment Distribution | April 2016

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2016 Leadership Conference

The leading educational and networking event for young professionals in the industry!

August 23-25 Las Vegas, Nevada Develop the leadership skills of your dealershipâ&#x20AC;&#x2122;s young professionals. Network and collaborate with professionals in similar roles and stages of their careers. AED members use this conference to prepare future leaders for more responsibility within the company and as a platform for middle and senior managers to discover new strategies and techniques.

register online at bit.ly/2016aedleadership LeadershipConference.indd 1

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>> CYBERSECURITY

JERRY IRVINE

Cybersecurity: Are You Vulnerable?

Whether it is a multibillion-dollar international company or a 20-person manufacturing facility, the easiest and fastest way into a company’s wallet is through its users.

Not a week goes by that some type of cybersecurity event does not occur — to large retailers, banks and even federal government agencies.

Cyber risk is so prevalent that FBI director Robert Mueller has stated, “There are only two types of companies: those that have been hacked, and those that will be.” So perhaps the question to ask is not, “Are you vulnerable?”, but rather, “How vulnerable are you?”

The biggest changes in cybersecurity cover three categories: cyber actors, their motivation and the tools they use. Just in the past few years, the actors involved in cybercrimes have changed and increased dramatically. Initially, cybercrimes were carried out more by individual actors with the intent of causing disruption, gaining personal publicity, or making some political statement. Organizations such as Anonymous, which was formed in 2003 and was made up of thousands of computer-literate individuals across the world, targeted computer systems and data sets of governments, industry and organizations because of political or socio-economic issues.

Some journalists and political commentators have compared Anonymous and other hacktivist organizations’ actions to rallies and political demonstrations. Because of their motivation, hackers generally selected larger targets which provided them with more publicity for their actions.

Today, however, these organizations are all but replaced by organized groups of specially trained black-hat hackers illegally gaining access and stealing information for organized crime, governments, armies and terrorists. These actors are intent on financial gain, terrorism, and acts of war. When considering the actors and their motivation, you might initially think that their targets would be the same as in the past; however, this is not the case. While attacking larger organizations may provide a larger return, they also require higher levels of expertise to hack because they use more cybersecurity solutions.

They take longer periods of time to gain access to and provide greater risk of getting caught. Nevertheless, small to mid-sized companies have fewer cybersecurity tools in place, have larger numbers of employees with access to company financials and data, and often have direct connections

to larger companies as a result of their supply chain or business relationships. While I’m not suggesting larger companies and organizations are not targets of cyber criminals, I am specifically stating that the SMB market provides a faster and greater return financially for hackers!

Hacking into larger companies generally requires significantly more research and setup by the hackers. Even after gaining access, hackers of larger organizations may require a long period of monitoring and capturing company data before gaining the information required to steal financial data or intellectual property. In order to perform these tasks, hackers may install stealth data-gathering applications, root kits or malware, all of which have been categorized as Advanced Persistent Threats (APT). That being stated, the most common means of attack for both large enterprises and SMB companies is the same: the end user!

Whether it is a multibillion-dollar international company or a 20-person manufacturing facility, the easiest and fastest way into a company’s wallet is through its users. The most common methods hackers use to gain access to user information begin with the most obvious: email. Over the past three to five years, the number of emails individuals receive on a daily basis has increased to around 140, but during the same time frame the average number of spam emails received has decreased by 3 to 5 percent.

Unfortunately, while the number of spam emails has decreased, the number of phishing and spear phishing emails has increased. Phishing attacks target specific email users or groups of email users by impersonating some real person or organization that the email user knows. As a result, these targeted emails are very successful in getting email users to reply with the information they request. In fact, according to multiple periodicals, over a three-month period as many as 45 percent of users targeted by phishing attacks provide their personally identifiable information to hackers. Trend Micro reports that as many as 91 percent of all APTs (advanced persistent threats) begin as spear phishing attacks. Spear phishing attacks can be implemented in a few different ways. The least complex method consists of simple emails or texts appearing to originate

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from a financial institution, bank or credit card company that are sent to unsuspecting users requesting a phone call or connection via an embedded web address in the email.

Once users call or click on the link, they are asked to enter their password for authentication. That information is stolen and used to gain access to the users’ accounts. Another similar method sends emails or texts with embedded website links in them that, when clicked on, install malware on the user’s PC, laptop, tablet or mobile device. Malware can be used to copy user information on the device and transmit it to the hacker, or in the case of ransomware can totally encrypt the device, making it unusable and then requiring the user to send payment in order to get the key to decrypt the data and make the device useful again.

Finally, other complex spear phishing methods may gain access to company records, providing the hacker with account or client information so they can impersonate clients or vendors and initiate communication with the victim. Emails or texts are sent regading specific transactions, and entire email chains are copied to validate their fake identity prior to requesting money transfers or payments of large sums to fictitious accounts.

In 2014, McAfee reported that over $445 billion per year was stolen via cybercrimes, and that number continues to increase.

The most prevalent method continues to be email attacks with texting attacks, or

SMiShing (SMS phishing), and is growing in popularity. These attacks remain difficult to curb and almost impossible to eliminate due to the ever-increasing complexity being used by the extremely sophisticated cybercriminals developing them. Hackers are privy to all vulnerabilities and bugs within common operating systems and applications. They write malware and viruses targeting these known problems within systems and email these applications to users via phishing attacks. In order to reduce the potential for unauthorized access or data loss, companies need to implement patch management solutions to install updates that fix problems.

Microsoft and other software manufacturers provide updates and update management systems to perform these functions.

A legacy method of protection, and probably the only method used by individuals, is antivirus. Regrettably, the founder of one of the largest antivirus companies in the world recently and appropriately stated, “Antivirus is DEAD.” Antivirus solutions detect as little as 35 percent of known viruses or malware in the wild. By the time companies can define the characteristics or footprint of a virus application, the hacker has modified it, making it undetectable again.

Protection today requires a more detailed and consistent process. While antivirus applications should still be implemented for the minimal protection they provide, they are detection-based applications; in other words, before an antivirus application can

work, the device has to “see” the virus or malware, then the antivirus will protect against it. All potential viruses, malware, and vulnerabilities must be known by the antivirus application in order for it to protect a device. Today, it is important to implement more preventative-based applications. Preventative applications are designed to allow only known applications, communication types and tasks to be performed; they deny unknown functions the right to run on the device. These applications — identity management solutions, applications firewalls, and data loss prevention applications, to name a few — require more configuration and day-to-day management to maintain but provide higher levels of security. Applications firewalls can be configured to whitelist, or allow, specific applications on core systems servers or financial users’ workstations. This allows only known applications and processes to be used on the device and keeps unknown applications, which include viruses and malware, from working on mission-critical devices. Due to the complexity and amount of time necessary to configure all known applications for any individual device, they have not gained popularity in many small and mid-sized companies. That being said, there is little to no alternative for securing companies’ systems and network devices.

Hackers have proven they can continuously update or change their malware to bypass security solutions.

JERRY IRVINE is CIO at Prescient Solutions and provides strategic direction for all clients, overseeing product innovation and implementation of the highest quality of service. Irvine has been deeply involved with the IT industry since 1987. As a result of his early experience, he became an expert in network communications and protocols when others in the industry were just learning how to use their first computer. Armed with this expertise, Irvine entered the consulting world working for companies like Network General and Advantis/IBM, performing detailed network analysis, design and troubleshooting. Since then, Irvine has filled MIS and CIO positions at multiple facilities and has managed more than 100 technicians and thousands of devices. For more information, visit www. prescientsolutions.com.

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>> BEHAVIORAL STRATEGIES

ROB-JAN DEJONG

Change Your Behaviors to Become A More Inspiring Leader in 2016 Behavioral strategist offers four tips for broadening your mind and your leadership skills.

There are behaviors and practices that, through repetition and perseverance, can help leaders and anyone else develop a mindset that’s open to imaginative and better ideas.

Habits can be a trap for people in leadership positions — whether they are in business, politics or another field.

As leaders, they should provide a compelling vision that inspires those around them. Instead, many of them lapse into automatic and mindless thinking. That can affect every decision they make — and the actions of the people who report to them.

“Too often, we don’t come up with imaginative solutions because we let ourselves be ruled by routine and by preconceived notions,” says Rob-Jan de Jong, a behavioral strategist and the author of Anticipate: The Art of Leading by Looking Ahead (www.robjandejong.com).

“We think we know ahead of time what will and won’t work, which makes us quick to dismiss ideas that sound too ‘out there.’ The people who answer to you learn the lesson that creative thinking is frowned upon, even if that’s not the lesson you wanted to teach.”

Simply making a New Year’s resolution to have a more open mind in 2016 likely won’t be enough to turn things around. But de Jong says there are behaviors and practices that, through repetition and perseverance, can help leaders and anyone else develop a mindset that’s open to imaginative and better ideas. ▶ Formulate powerful questions. Generating ideas starts with asking the right questions, and the best questions are thought-provoking. They challenge underlying assumptions and invite creativity. “They also give us energy, making us aware of the fact there is something to explore that we hadn’t fully grasped before,” de Jong says. Train yourself to catch poorly designed questions, asked by you or someone else, and reformulate them. Questions that begin with “why,” “what” and “how” are best because they require more thoughtful responses than those that begin with “who,” “when,” “where” and “which.” Especially avoid questions that can be answered with a “yes” or “no.” ▶ Expand your sphere of influence. “We are

strongly influenced, for better or worse, by the small group of people we have direct contact with,” de Jong says. “Since we tend to hang out with people who are fairly similar to ourselves, chances are we are limiting our perspectives.”

He recommends making a deliberate effort to encounter people and ideas that are “profoundly different from the usual suspects you hang out with.” Visit a conference for a profession different from yours, hang out with skaters, join an arts club or buy a magazine randomly off the shelf. ▶ Break your patterns. You can increase your chances of seeing things differently if you deliberately break your normal pattern of working, communicating, thinking, reacting and responding, de Jong says. Take a different route to work. Change where you sit in meetings. If you are normally the first to volunteer, hold back. ▶ Learn to listen. “We’ve all been taught the importance of being good listeners,” de Jong says. “The problem is, most of us struggle to actually do it.” Often when people are “listening,” they really are waiting for the first opportunity to share their story, their opinion or their experience. De Jong suggests training yourself to engage in three pure listening conversations a week. They don’t need to be longer than 15 or 20 minutes, they can be formal or informal, and the other person doesn’t need to know what you’re doing. Vow that you won’t try to take over the conversation no matter how much you want to. “Just keep asking questions and don’t dismiss anything the other person says,” de Jong advises. After the conversation, reflect on what you learned. Don’t dismiss any ideas or views that don’t align with yours. “Dare to challenge your own assumptions and reframe your beliefs if need be,” he says.

“Some of these practices may take people outside their comfort zones, and everyone might not be ready to try all of these at once,” says de Jong. “But if you start to put them into practice, you’ll be able to grow into a more mindful, visionary leader one step at a time.”

ROB-JAN DE JONG, author of Anticipate: The Art of Leading by Looking Ahead (www.robjandejong.com), is an international speaker, writer and consultant on strategy and leadership themes. As a behavioral strategist, he speaks, teaches and consults on executive subjects such as visionary leadership, influence, strategic decision-making and innovation.

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Associated Equipment Distributors is expanding to a new office on May 2!

weâ&#x20AC;&#x2122;re moving Please update our address information to: 650 E. Algonquin Road, Suite 305 Schaumburg, IL 60173 Our phone, fax and Web address stay the same!

Office 630-574-0650 (same) Fax 630-457-0132 (same) www.aednet.org (same)

Please note that during this transition, the phone system will be shut down.

We will be back in the office May 3 and apologize for any inconvenience.

AED is looking forward to seeing you at our new location!

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>> CRAFTING JOB DESCRIPTIONS

KARLA DOBBECK

Ten Reasons to Craft Job Descriptions Job descriptions – at the heart of any company.

What most employers don’t realize is how useful job descriptions can be from the selection process to the termination process and everything in between.

One of the most valuable tools an employer can have is a current job description for every position in the company. What most employers don’t realize is how useful they can be from the selection process to the termination process and everything in between. Some of these uses are listed below: 1. Selection – A well-crafted job description is the first place to look when designing ads. From it, you will know what activities the successful candidate will be responsible for completing. It will also detail the minimum skills and education needed to be considered for the position.

Once your ad is designed, you should then use the responsibilities and minimum skills to design job-specific interview questions. Since past behavior is the best predictor of how a person will act in his/her new job, knowing how the individual will handle the job will help you make a solid hiring decision.

2. Integrating new employees – To set the stage for successful integration of the new employee, share the job description with him/ her and base training for the job on the activities listed. Explain that the employee will be reviewed and monitored according to the duties set forth on the job description. Set up a weekly plan for learning all responsibilities listed, and be open to ideas to augment the scope of the position. If the position is new to the company, expect changes to the job description. The goal here is to have an accurate reflection of the position.

3. Payroll – As most employers already know, the Department of Labor, not the employer, has determined which positions are entitled to earn overtime and which are considered exempt from overtime laws. A job description detailing responsibilities, activities and tasks will help the employer make the correct determination of exempt (no overtime) or non-exempt (overtime payment required) for the position.

4. Workers’ Comp and injuries – By including minimum physical requirements of the job, the employer will have evidence to support a decision to bring an employee back from an injury or determine that no work is available for the employee. Doctors usually base their decision to release or not to release based on

what an employee says about his/her job. Unless the employer chimes in with a job description, the doctor is forced to go by what the employee has said with respect to physical requirements.

If the employee needs to come back to work to earn a living, he or she is more likely to play down any physical requirements. Although your union might have rules for light duty assignments, there is no legal requirement to provide light duty. So providing a job description that includes physical requirements will give the doctor the information he/she needs and also help you make a sound determination regarding any light duty work that is available. Physical requirements might include items such as “stamina to work all assigned hours” or “ability to use hands 100% of the workday” or “ability to hear and see 100% of the workday.” Don’t forget to include lifting requirements and how much time is spent walking, standing, bending and twisting!

5. Americans with Disabilities Act – Employers who have established job descriptions that include minimum physical requirements can depend on them when determining what to ask during the interview and also what might be available as a reasonable accommodation, or if a reasonable accommodation is not available. Be careful, though — an employer cannot retroactively create a job description as a protection method.

6. Performance discussions and improvement plans – When discussing performance with an employee, the best results occur when both the employee and the supervisor agree on the job.

Without a job description detailing essential functions and skills, the supervisor and the employee might not have the same understanding of the position. When both are on the same page, the discussion can focus on what is being done well, what needs to be improved and any changes to the position since the last discussion.

Use the discussion to update the job description so it continues to be an accurate reflection of the position.

7. Job and skill development – Some positions have various levels of competency. Using the job description to identify what is needed to move from one level to another within the same job

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title helps the employee understand what skills and experiences are needed to get ahead. It may be that the employee needs to take a class or spend time learning a new technique. The supervisor can identify those traits that are needed and then assist the employee in finding opportunities to gain the work experience or coursework.

8. Promotions from within – Most employees are more apt to bid on internal job postings if they understand what is needed to be promoted. By publishing job descriptions for all employees to view, you may be surprised to learn who already has a desired skill set or who is looking to move within the organization.

9. Succession Planning - Eventually, privately held companies will find themselves in a position of needing to plan for the next generation to take on day-to-day business operations. Regardless of whether family members will continue to be at the helm, a well-crafted succession plan cannot be developed without understanding the positions in

the organization and how they relate to each other. If the company is fortunate enough to have internal folks who can be tapped for gradual growth into leadership roles, job descriptions can be used to help them understand how their role will be evolving and to provide additional direction.

10. Termination – If an employee’s performance is not up to expectations, the job description can be used to detail where the employee has fallen short.

Although employers will most likely be responsible for unemployment charges for terminations due to lack of performance or skill, if the employer can show the gap in what the employee was doing and what was expected, he/she will have an easier time defending the termination should a charge be brought against the company.

So you see, job descriptions are really at the heart of the company. They should be seen as living documents and be reviewed every time an ad is written, a performance discussion takes place, a

promotion is being contemplated, and even when a disciplinary action or a termination is occurring.

When developing job descriptions, it is best to get input from the employee, the employee’s supervisor and from industry sources. It is far easier to start with a sample and customize it to your use than to start with a blank sheet of paper.

Remember that a job description is not a task list or a work order. Be careful not to make the description so detailed that it needs to be changed frequently.

For example, instead of “complete order slips and inventory records” say “complete all paperwork associated with the position.” That way, when your forms or systems change, the job description is still current. Job descriptions should also include global expectations. There are certain things that apply to everyone, for instance, “follow all company policies,” “act professionally with customers and co-workers” and of course, “other duties as assigned from time to time to meet departmental and company goals.”

KARLA DOBBECK, a certified professional in Human Resource Management, founded Human Resource Techniques, Inc., in 1997. HRT has been an endorsed service provider for AED since 2013 and has been accredited through the Better Business Bureau since 2009 with an A+ rating. Human Resource Techniques, Inc., is registered through WBENC as a woman-owned business. To learn more, or if you need help in developing job descriptions, feel free to call Karla at 888-412-8079 or write to her at kdobbeck@askhrt.com.

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>> PROBLEM SOLVED

TROY OTTMER

How Does Your Dealership Use Technology?

Telematics brings you and your customer into alignment.

Getting customers and dealers to use this technology for their mutual benefit is the direction we must go in.

Green alert, yellow alert, red alert . . . what does all this mean? More importantly, how should we be viewing and ultimately reacting to this information? It is no secret that telematics have become commonplace on vehicles as well as on construction and farming equipment. How does your dealership use this technology?

Getting customers and dealers to use this technology for their mutual benefit is the direction we must go in; otherwise we as dealers will lose the ability to showcase the fact that we are a forward-thinking group. We cannot expect our customers to grasp the true potential this technology has to help improve their owning and operating costs by maximizing how they utilize their fleet. To be frank, from a customer’s perspective, all that really matters is that their fleet is up and running, or producing in a manner that maximizes profitability. Uptime is King!

In addition to trouble code identification and remotely identifying problems with a machine, the telematics systems present a wide array of other very valuable information. Here are some examples: ▶ Geo-fencing ▶ Hours at work load ▶ Hours at idle ▶ Number of loads ▶ Weight of loads (with integrated weighing systems) ▶ Distance traveled in forward or reverse (especially important when maintaining a fleet of crawlers) ▶ Fuel burn or consumption ▶ Hours down or not in use ▶ Machine status The list of what we can monitor or view today is nearly endless, and I suspect this will continue to expand as technology advances. Asset utilization for the unit or fleet (or, another way to look at it, ROI) will continue to be the key drivers for fleet owners, regardless of which business or market segment they currently occupy. We as dealers need to take the bull by the horns and accept the reality that this technology, installed

either by the OEM, after the fact, or as a third party add-on to the OEM system, will be key to our future success with our customers.

Having the ability to showcase your products or services for the end user can and will set you apart from the competition, and showing the customer how this technology can set them apart from their competition will allow you to develop a “strategic partnership” with them. Selling a product or service is certainly about having a relationship with your customer. However, in today’s markets, we are all up against some very tough competition.

Selling telematics is about showing the value in the product, not only as it relates to your machine or vehicle, but also as it relates to how it can benefit your customer. How do telematics benefit the dealer and the customer? You must sell the customer on the “features, functions and benefits” of the product, as well as what unique features your product has, as compared to the competition. Recently, a friend and colleague used this short phrase in a meeting, and it resonated with me. What are the features your product or dealership offers? Are you showcasing these? What are the functions? How do these functions work, and more importantly, how do they add value to your customer’s business or fleet? What are the benefits of these features and functions? How do these benefits help your customer to improve their owning and operating costs, fleet utilization and, ultimately, their ROI? Do not overlook one of the most often-overlooked items when selling the “features, functions and benefits” of your products or services.

What is this item? It would be your dealership’s resources. In order for you to be successful selling your products or services as mentioned above, you must make sure the back end of the sales process is aware of the “features, functions and benefits” as well. Additionally, you must have the infrastructure to back up what is being sold to the customer; otherwise, you will not be able to provide what the customer expects.

TROY OTTMER is Vice President of Fixed Operations at Doggett Heavy Machinery Services in Houston, Texas, a John Deere Construction Equipment Dealership with 17 locations in Texas and Louisiana. He can be reached at troy.ottmer@doggett.com.

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advertisers’ index AED Business Services .......................................6

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

AED Washington Fly-In ...................................33

EPG Insurance, Inc.......................................... 23

AED Leadership Conference ............................55

Hydrema US Inc. ................................ Back cover

AMI Attachments Inc. .....................................63

Ritchie Bros..............................Inside front cover

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

Screen Machine Industries LLC ........................47

CDK Global .......................................................2

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

eBS Mechdata, Inc. ......................................... 31

Terramac ..........................................................9

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 (ISSN0010-7655) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523

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>> RISK MANAGEMENT

ERIC STILES

Sentry Insurance Provides Guidance on General Safety Questions For Construction Equipment Industry

Account Executive Eric Stiles discusses important safety questions that are industry-specific for construction equipment dealerships.

Q: I heard recently about a dealership that was impacted by employee theft. How can I prevent that at my dealership?

A: We all like to think the employees we hire are honest. However, some people will take advantage of opportunities, especially when they think they can get away with it.

Dealerships offer several types of employee theft opportunities: ▶ Cash ▶ Parts ▶ Inventory Employees who work with cash or payment processing can quickly steal significant amounts. Parts and inventory theft can also yield big cash for an employee who sells stolen parts.

Regardless of what an employee steals, the resulting investigation, arrest, conviction and litigation can take years, and result in a bigger loss than what was initially stolen.

It’s impossible to put a dollar figure on the emotional toll on you and your employees.

Not to mention the potential for lost business due to a damaged reputation.

Taking a few steps now may help you proactively prevent losses: ▶ Anti-Theft Policy – Develop a written policy, communicating it consistently to

employees. Validate the policy by having every employee sign it right next to your signature. Once signed, give every employee a copy, and keep one on file. ▶ Annual Audit – Your audit should be conducted by a qualified independent accountant who can evaluate statements and individual transactions to identify potential abnormalities. Final reports should be received by your management team. ▶ Annual Inventory – Having an accurate inventory of your parts and merchandise helps validate the financial audit, while supporting efficient inventory trends. ▶ Separate Statement Reconciliation from Transactions – An essential control to minimize internal theft and embezzlement risk is to separate the responsibility for reconciling financial statements from the roles that issue actual payment or withdrawal transactions. ▶ Surveillance & Security – Cameras and other security controls help prevent theft, while at the same time establishing a record of what happened.

Taken as a whole, all of these measures can help you reduce the risk of one of your employees attempting cash or inventory theft.

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.

JOHN HUGHES / FREEPIK

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