March 2019: Technology Showcase

CED M A R C H

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CONSTRUCTION EQUIPMENT DISTRIBUTION P R O V I D I N G S O L U T I O N S T O D AY F O R T O M O R R O W ’ S E Q U I P M E N T I N D U S T R Y

TECHNOLOGIES THAT ARE

REVOLUTIONIZING

THE INDUSTRY 2019 CED EXC LUSI VE

TECH NOLO GY SHOW CASE

T HE G REAT RECESSION

A STUD Y O F TH E

Lessons Learned for Distributors Impact of Autonomous Technology

A CL O SER L OOK : ASV Holdings, Inc.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 1

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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.

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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, call 888-276-9803 or email info@bluecornhr.com

DRIVING DEALERSHIP SUCCESS

KIMBALL COUNTS ON e-EMPHASYS “I would say the reduction in time with e-Emphasys in generating financials is 70% or greater. Things that used to take two departments several days going back and forth now take, in some cases, JOHN KIMBALL, PRESIDENT 10 to 20 seconds.”

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CONTENTS MARCH 2019 | VOL 85 NO. 3 | www.cedmag.com

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A CLOSER LOOK: ASV HOLDINGS, INC.

Two fiercely entrepreneurial gentlemen with experience in the snowmobile industry put their heads together and founded ASV, named for all-season vehicles. And up in Minnesota, they don’t take that kind of label lightly.

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2019 CED EXCLUSIVE TECHNOLOGY SHOWCASE View the latest technology trends that AED member companies have to offer that help to improve, enhance or streamline an equipment distributor’s bottom line.

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THE AED FOUNDATION RELEASES AUTONOMOUS TECHNOLOGY STUDY, PERFORMED BY CAVCOE

The AED Foundation has released “A Study of the Impact of Autonomous Technology: 2019 Report,” performed by CAVCOE (formerly the Canadian Automated Vehicles Centre of Excellence).

The study details the impact of automated vehicles (AVs) on the business models of AED’s members and their customers.

45

THE GREAT RECESSION For many of us in the construction industry during the Great Recession, it seemed like the pain would never end. The thought of good times was nowhere on our radar. However, good times have returned, and many people think that they will continue without end. But like anything else in life, times change; and there are lessons to be learned from our past. The U.S. is currently approaching the longest period of economic expansion on record. While I am not predicting a recession, the question is not if one will come, but when. History shows that recession always does.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 3

CONTENTS MARCH 2019 | VOL 85 NO. 3 | www.cedmag.com INSIDE

EDITORIAL Editor in Chief Sara Smith ssmith@aednet.org Design & Layout Phoebe Defenbaugh design@aednet.org ADVERTISING Vice President Jon Cruthers 800-388-0650 ext. 5127 jcruthers@aednet.org Production Manager

P.7 From the Chairman Leverage Your AED Membership This Year P.9 From the President A New Congress Means New Opportunities

P.17 The AED Foundation-Certified Technician: Harley Carter P.18 AED Certified Technician Program in Action P.37 Prepare for High-tech

for AED Members P.14 Midwestern Regional Report:

Disruptions Ahead

Key Workforce Events Highlight

P.40 AED Summit: Growth is still

Value of Networking to Solve

ahead, but tempered by workforce,

Problems

infrastructure funding needs

P.15 Budget expected to re-shape

P.43 AED Summit/CONDEX helps us

landscape for Canadian businesses P.16 The AED Foundation Donor Profile: Stephenson Equipment Inc.

make connections, strengthen our existing relationships, gain valuable insights that we can use to generate content

Martin Cabral 800-388-0650 ext. 5118

MARCH CONTRIBUTING WRITERS

Since 1920 Official Publication of

Clifford Black CED Reporter Megan Mattingly-Arthur CED Reporter Michael Dexter Associated Equipment Distributors Rob Leforte Impact Public Affairs Heidi Bitsoli CED Reporter

Becky Schultz Equipment Today Marcia Doyle Equipment World Greg Heckart Construction Publications Inc. Peter Gregory Wells Fargo Equipment Finance K ri s Jens en Van- Hes te CED Repor t er

2019

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 © 2018

by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173 Phone: 630-574-0650. Periodicals postage at Schaumburg, Ill. 60173 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173.

4 | www.cedmag.com | Construction Equipment Distribution | March 2019

FI NA N C IA L/ H R

S YMPO SIUM A P R IL 24- 2 6 , 2 0 1 9 | C H I C AGO , I L

Learn from industry experts on both the finance and HR side about the most pressing

topics impacting equipment distributors. Bring back tools and solutions to the issues that are affecting your dealership.

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In addition to hearing new ideas, learning about best practices, and receiving regulatory

symposium and legal updates, attendees will have several opportunities to brainstorm and network with like-minded dealership professionals.

The Financial/HR Symposium is an ideal event for all finance and HR professionals, whether new or seasoned.

“This is a great event to meet others in the industry and to hear about what you all have in common. Also is a great way to build your network with others you can reach out to for things in the future!�

MA RT I JENSEN General Equipment & Supplies Inc.

CPE CREDITS SPONSORED BY:

Registration Link: Bit.ly/2019symposium | All content and information is subject to change

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Leverage Your AED Membership This Year

O

ver the years, I and many members of my team have taken advantage of AED’s conferences and networking events, and we know the value of taking just a few days away from the office to spend time on your professional career and your business.

AED offers a wide selection of conferences and events for every member of your organization. Did you know that as an AED member you receive exclusive pricing on all AED events? We want to make sure you are aware of everything available to you to bring your company and employees to the next level. What events can you expect from AED this year?

FINANCIAL/HR SYMPOSIUM

April 24-26 | InterContinental Chicago Magnificent Mile in Chicago Are you a new or experienced financial or HR professional in your company? Are you interested in learning about the threats and opportunities that relate specifically to this industry? The Financial/ HR Symposium brings industry experts to you to discuss the most pressing issues for your organization. You will hear about new ideas and best practices while also getting the opportunity to brainstorm and network with like-minded dealership professionals.

WASHINGTON FLY-IN

June 11-13 | Hyatt Regency on Capitol Hill in Washington, D.C. This year, a new Congress is settling in on Capitol Hill, which means there are new threats, but also unique opportunities to achieve policy successes in Washington. If you want to see robust infrastructure investment, key provisions from the Tax Cuts & Jobs Act made permanent, policies addressing the skilled workforce shortage, and commonsense regulatory policy, come to Washington to push your lawmakers and the administration to support a proequipment-industry agenda. There’s too much at stake for your company and the industry not to attend this premier public policy event.

B R I A N P. Mc GUI R E AED President & CEO OFFICERS

MICHAEL D. BRENNAN Chairman Bramco, LLC RON BARLET Vice Chairman Bejac Corporation CRAIG DRURY Senior VP Vermeer Canada Inc. MICHAEL VAZQUEZ VP Membership MECO Miami Inc. TODD HYSTAD VP Canada Vimar Equipment Ltd. GAYLE HUMPHRIES VP of Finance Low Country Machinery WES STOWERS VP of Political Action Stowers Machinery Corporation WHIT PERRYMAN Foundation Chairman Vermeer Texas-Louisiana DIANE BENCK Past Chair West Side Tractor Sales Co.

F R O M T HE C HA I R M A N M I C HA E L D .

BRENNAN

LEADERSHIP CONFERENCE

August 27-29 | Hyatt Regency Sonoma Wine Country in Santa Rosa, California The AED Leadership Conference is designed specifically for attendees to get ahead in their career and accelerate their future in the dealership. No other event will give you more focused expertise on building and optimizing emerging leaders in the construction equipment distribution industry. Attendees will walk away with ideas to implement in their own areas of responsibility and will gain a greater sense of how to become a more effective leader.

SMALL DEALER CONFERENCE

Dates and Location TBD The Small Dealer Conference provides a platform for professionals to come together to leverage their membership and address the challenges they are currently facing in their organizations. This oneday conference allows attendees to work on their business rather than in their business, with sessions and content tailored to the needs of the small dealer.

EXECUTIVE CONCLAVE

Dates and Location TBD This day-and-a-half conference for executives and senior-level managers focuses on current industry trends and the latest issues facing the heavy equipment industry. Gain insights to help you succeed and maximize your profit opportunities.

If you are looking for more information on these events, visit bit.ly/aedevents. We look forward to seeing you this year!

R OB ERT K . HEN DER SON AED Executive Vice President & COO AT- LA R GE DI R ECTOR S PAUL FARRELL Modern Group Ltd. STEVE MEADOWS Berry Companies, Inc. JAMES A. NELSON Heavy Machines, Inc. MATT DI IORIO Ditch Witch Mid-States DAN STRACENER Tractor & Equipment Co. JOHN THOMPSON Thompson Machinery

JA SON K. BLAKE AED Senior Vice President R EGI ON A L D IRE C TO RS

MICHAEL LALONDE West Reg. Westrax Machinery, Inc. MATTHEW ROLAND Midwest Reg. Roland Machinery Co. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC COREY VANDER MOLEN South Central Reg. Vermeer MidSouth, Inc. MIKE PARIC Eastern Canada Reg. Joe Johnson Equipment Inc. TOMMY BALL Southeast Reg. Flagler Construction Equipment, LLC STEVE OUELLETTE Northeast Reg. Frank Martin Sons, Inc. TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 7

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A NEW

FR O M TH E PR ESI D EN T BR IA N P. M cG U IR E

CONGRESS

Means New Opportunities FOR AED M EMB E R S

T

he industry’s premier public policy event is right around the corner, and we want to make sure you’re there! As a new Congress is settling in on Capitol Hill, there is the possibility for more threats, but also for unique opportunities to achieve policy successes in Washington. Join us June 11-13 for the Washington Fly-In at the Hyatt Regency on Capitol Hill, and you will get the opportunity to let your voice be heard!

If you want to see robust infrastructure investment, key provisions from the Tax Cuts & Jobs Act made permanent, policies addressing the skilled workforce shortage, and commonsense regulatory policy, come to Washington to push your lawmakers and the administration to support a pro-equipment-industry agenda.

Those who have previously stopped by and said hello to Washington Fly-In attendees include Reps. Mario DiazBalart (R-Fla.), Mark Amodei (R-Nev.), Lou Barletta (R-Pa.), Rodney Davis (R-Ill.), Mike Bost (R-Ill.), John Katko (R-N.Y.) and Jimmy Duncan Jr. (R-Tenn.).

Updates by policy experts on issues important to the industry were made by the government affairs offices of John Deere, Vermeer, Caterpillar and Volvo.

B R I A N P. Mc GUI R E AED President & CEO

During your time in Washington, you’ll hear directly from senior lawmakers, administration officials and policy experts. First, our Washington team will bring in experts and officials to get you up to speed on what to expect in meetings with congressional offices. We will then schedule the meetings for you with your representatives and senators. All you need to do is show up in our nation’s capital and be ready to talk about your company. And we promise, you’ll even have some fun!

We can’t take for granted that lawmakers (Republican or Democrat) understand our businesses and our industry. We must be at the table, and that involves more than just AED being present; it means construction equipment dealers must create a presence in Washington and advocate for their companies and the industry.

The Association, and the industry’s voice as a whole, is more influential when we participate and are vocal during the process. Take the time away from your office to ensure future policy victories for legislation that directly benefits your company and your bottom line.

There’s too much at stake for you and your company not to join us for the Washington Fly-In. Keep an eye out for a schedule; for more information or to register today, visit bit.ly/2019flyin.

R OB ERT K . HEN DER SON AED Executive Vice President & COO

JA SON K. BLAKE AED Senior Vice President

T H E A E D F O U N D AT I O N B O A R D O F D I R E C T O R S OFFICERS

WHIT PERRYMAN Foundation Chairman Vermeer Texas-Louisiana JEFFREY SCOTT Foundation Vice Chairman Intermountain Bobcat DARREN GRAHSL Treasurer BOKF Equipment Finance BRIAN P. McGUIRE Foundation President Associated Equipment Distributors DENNIS VANDER MOLEN Past Foundation Chairman Vermeer MidSouth, Inc CRAIG DRURY AED Board Representative Vermeer Canada, Inc. ROBERT K. HENDERSON President Emeritus Associated Equipment Distributors

DI R ECTOR S

JAMES MCCANN McCann Industries, Inc. JOHN D. CRUM Wells Fargo Equipment Finance, Inc. LOGAN MELLOTT Ritchie Bros.

JUDY WORRELL Berry Companies, Inc. KENNETH SILVERMAN Volvo Construction Equipment Region Americas OTTO BREITSCHWERDT Caterpillar, Inc. MIKE HAYES Komatsu America Corp.

DI R ECTORS

TODD HYSTAD Vimar Equipment Ltd. JASON DALY Deere & Company, Worldwide C&F Division BRETT REASNER Pennsylvania College of Technology THOMAS CASEY DLL KENNETH TAYLOR Ohio CAT KATE FOX WOOD Associated of Equipment Manufacturers BUCK BAIRD Coastline Equipment JOEL DIMARCO Admar Supply Co., Inc.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 9

aed insider

S U MM IT 2019 ED ITION

ORLANDO, FLORIDA

FEBRUARY 4-7, 2019

AED and The AED Foundation Welcomes and Congratulate New Board Members and Award Winners AT TH E 2019 SUMMI T I N O R L AN D O FL O R I D A

The Association would like to honor the volunteer leadership of AED and celebrate the great value, benefits and achievements of our association.

Read more about the 2019 Summit on pages 38-45

MEET YOUR NEW AED CHAIRMAN

MIC HA EL B R ENNA N

M

ichael Brennan has been elected to the highest office of our Association, serving as AED chairman for the coming year. Brennan’s involvement with AED began in the summer of 1996, just months after he joined Bramco, when he attended a program for young executives. That experience led him to join AED’s Young Executives Committee and, from there, he was hooked.

Brennan started attending the AED Summit and Washington Fly-In events in the late 1990s/early 2000s, joined the AED board in the mid-2000s, served a one-year term as the board’s vice president of finance in the midst of the Great Recession, and has sat on the AED board’s executive committee since 2009.

Brennan has a keen eye toward the future and looks forward to helping lay the groundwork for success in AED’s second century. Supporting AED’s Government Affairs Program and increasing the Association’s political presence in both Washington and Ottawa will play a large role in its advancement in the coming years. Therefore, these issues will be a central focus during Brennan’s AED chairmanship.

10 | www.cedmag.com | Construction Equipment Distribution | March 2019

aed insider

ORLANDO, FLORIDA

SUMMI T 2 0 1 9 ED I T I ON

FEBRUARY 4-7, 2019

AED EXECUTI V E O FFI CER S

TO D D H Y STAD

RON B ARLET

AED Vice Chairman, from Bejac Corporation in Placentia, California

BRIA N P. MCGUIRE

President, Associated Equipment Distributors in Schaumburg, Illinois

MI CH AEL VA Z Q U E Z

AED Vice President of Canada, from Vimar Equipment Ltd. in Burnaby, British Columbia

AED Vice President of Membership, from Meco Miami Inc. in Miami, Florida

D I AN E B EN CK

W H I T PER RYM A N

Immediate Past Chairwoman West Side Tractor Sales Co.

The AED Foundation Chairman Vermeer Texas-Louisiana

AED ’S N EW EST VI CE PR ESI D EN TS

W ES STOWERS

Stowers Machinery Corp. of Knoxville, Tennessee | Vice President of Political Action

G AY L E H UMPH R I ES

JCB of Georgia in Pooler, Georgia Vice President of Finance

CR AI G DRU RY

Vermeer Canada in Brampton, Ontario | Senior Vice President

NEW AT- L AR G E D I R ECTO R J O H N TH O MPSO N

Thompson Machinery in La Vergne, Tennessee

NEW R EG I O N AL D I R ECTO R S STEVE O UELLETTE Frank Martin Sons Inc. Fort Kent, Maine AED’s Northeast Regional Director

TO MMY B AL L

Flagler Construction Equipment LLC Tampa, Florida AED’s Southeast Regional Director

March 2019 | Construction Equipment Distribution | www.cedmag.com | 11

aed insider

S U MM IT 2019 ED ITION

ORLANDO, FLORIDA

FEBRUARY 4-7, 2019

TH E AED FO UN D ATI O N EXECUTI VE TEAM

JEF F REY SCO TT

D AR R EN G R AH SL

Vice Chairman; President at Intermountain Treasurer; Senior Vice President at Bobcat, Salt Lake City, Utah BOK Financial in Dallas, Texas

BRIA N P. MCGUIRE

President; President and CEO of the Associated Equipment Distributors in Schaumburg, Illinois

D EN N I S VAN D ER M OLE N

Immediate Past Chairman; President at Vermeer MidSouth Inc. in Jackson, Mississippi

W H I T PER RY MAN

CR AI G D R U RY

The AED Foundation Chairman AED Board Representative; Vice President of Vermeer Texas-Louisiana Operations Eastern Canada at Vermeer Canada in Brampton, Ontario

NEW FO UN D ATI O N D I R ECTO R S

KAT E F O X WO O D

Director of Infrastructure Policy at the Association of Equipment Manufacturers in Washington, D.C.

J O EL D I MAR CO

President at Admar Supply Co. Inc. in Rochester, New York

B UCK B A I RD

Vice President and General Manager at Coastline Equipment in Long Beach, California

2019 AED SUMMI T AWAR D W I N N ER S The AED Paul D. (Bud) Hermann Emerging Leaders Award is given in honor of Paul “Bud” Hermann, the former executive director of AED who started the emerging leaders group. This award is given to an individual who has made significant contributions to AED as an emerging leader through involvement with the Emerging Leaders Council and has furthered growth and changes in the industry with peers.

2019 WINNER: BEN GARTON GARTON TRACTOR OF TURLOCK, CALIFORNIA

12 | www.cedmag.com | Construction Equipment Distribution | March 2019

aed insider

ORLANDO, FLORIDA

FEBRUARY 4-7, 2019

SUMMI T 2 0 1 9 ED I T I ON

2019 AE D SUMMI T AWAR D W I N N ER S

The AED Morton R. Hunter Sr. Distinguished Industry/Association Contribution Award is given in honor of Morton R. Hunter Sr., “the man with the idea,” who, along with ten colleagues, founded Associated Equipment Distributors, served for 10 years as its first secretary, was president in 1925, originated its first publication and devoted himself as its editor until 1950. This award is given to an individual who, has demonstrated outstanding contributions and dedication to the principles and ideals of the Association and to its every cause, and continues to inspire the organization today.

2019 WINN ER : WALTER B ER RY B ER RY CO MPAN I ES

The AED Chairman’s Award recognizes an individual who has provided “above and beyond” support to the Association.

2019 WINN ER : W H I T PER RY MAN VER MEER TEXAS- L OU I S I A N A

The Democracy Award is given each year to a person who has demonstrated exemplary leadership in helping to build AED’s government affairs program, encouraging dealer political engagement and serving as an unwavering advocate for the industry.

2019 WINN ER : N I CK YAKSI CH ASSO CI ATI O N O F EQU I P M E N T M ANUFACTUR ER S The AED Foundation Champion Award is given for recognition of distinguished service by a manufacturer or service provider that has offered significant contributions to the workforce goals of The AED Foundation.

2019 WIN N ER : SEN TRY I N SUR AN CE The AED Foundation Partner Award is given for recognition of distinguished service by a manufacturer or service provider that has offered significant contributions to the professional education goals of The AED Foundation.

2019 W I N N ER : R I TCH I E B R O S. The Lester J. Heath III Award is given in honor of Lester J. Heath III, the first president of The AED Foundation, and is awarded to an individual making outstanding contributions to The AED Foundation through involvement in and support of its activities including education, accreditation, and workforce development.

2019 WINNE R : A. R O Y KER N , EQUI PMEN T CO R PO R AT I ON O F AM ERICA O F CO R AO PO L I S, PEN N SY LVAN I A

March 2019 | Construction Equipment Distribution | www.cedmag.com | 13

M I DWEST & C AN AD A REG IONA L R EPO RT

KEY WORKFORCE EVENTS H I G H L I G H T VA L U E O F NETWORKING TO S O LV E P R O B L E M S MIKE DEX T E R | m dexter@ae d n e t . o rg

W

orkforce events held recently in Iowa and Ontario are further proof of the value of networking to AED members as they continue to blaze a path of cooperation between industry, education and government.

A very successful workforce event was held in Des Moines, Iowa at the Iowa Department of Education (IDOE) Building attended by AED members Road Machinery & Supplies, Star Equipment, Logan Contractors Supply, and Iowa Nebraska Equipment Distributors Association, as well as leaders from the Iowa Department of Education, Southwestern Iowa Community College and Eastern Iowa Community College.

As expected, the key discussion centered on how AED members can work with schools alleviate the technician shortage costing the industry $2.4 billion per year.

It was strongly recommended that employers work through their local intermediary versus trying to build relationships themselves with counselors, advisors, and teachers. Starting with intermediaries will save time and result in more targeted activities to accomplish your goals. Joe Collins from IDOE offered to be the point person on this effort.

One successful strategy noted is to offer an ‘expo’ or ‘experience day’ for students to visit a centralized location to experience different types of careers and associated technologies. Similar to a speed dating program, students visit booths/rooms for a 15-minute experience before transitioning to another location.

Job information is available, but not the focal point.

The goal is to provide students with as many hands-on, interactive experiences as possible in a short amount of time. Examples may include an equipment simulator, 3-D printer, or problem solving equipment with VR/AR glasses.

Intermediaries are great resources to set up opportunities for educators, counselors and other school staff to take site tours, hear from employer panels, and participate in summer externship programs in which they work for a local employer for a short period of time.

Similar to a student internship, the goal is for teachers 14 | www.cedmag.com | Construction Equipment Distribution | March 2019

or other staff to gain understanding and awareness of different occupations and industries that they can then use in their classrooms and when career planning with students.

North of the border things were percolating as well at a workforce event sponsored by the local dealer group in Toronto. AED members in attendance included; Joe Johnson, Nortrax Canada, Vermeer Canada, Strongco, Toromont, Wajax and Richie Brothers. They were joined by representatives from Conestoga College, Centennial College and Bear Creek Secondary School.

The importance of The AED Foundation’s mission was discussed as well as the critical nexus between The AED Foundation, AED members and schools including colleges and secondary schools. The group walked through The AED Foundation Accreditation Program noting that Conestoga College has completed their gap analysis and that Centennial College is looking to start the process this year. Conestoga stated that they were very impressed with the process as it took two days to go through it and they were surprised at how rigorous and professional it is. Conestoga instructor Reg Legere stated, “It was interesting to find the standard that AED has set. It’s an eye opener and we have a little work to do.”

The critical need to work with secondary schools to develop a stronger pipeline to feed the community colleges resulted in a plan to provide much needed financial assistance to Bear Creek Secondary School now that Ontario Ministry Funds have dried up. The Toronto local dealer group is stepping into the breech to help Bear Creek defray the cost of busing students to attend Centennial College and Conestoga College to participate in day labs and tours, visit dealers including Joe Johnson, Ritchie Brothers, HJV Equipment, Toromont, and attend the National Heavy Equipment Trade Show in Mississauga to network and explore careers in the industry.

“This is what this association is all about. Working together for a common goal. Nice to see,” stated AED Board Member Craig Drury, VP of Operations for Eastern Canada-Vermeer Canada.

AED

IN CANADA B Y: R O B L E F O R T

BUDGET EXPECTED TO RESHAPE LANDSCAPE FOR CANADIAN BUSINESSES

T

he 2017 federal budget was about jobs, innovation and the middle class. The 2018 federal budget was about jobs, innovation and the middle class.

In 2019, we can expect more of the same, but with added election-year twists. It is widely expected that Finance Minister Bill Morneau will deliver the final budget of the Liberals’ mandate before the end of February.

While details remain scarce, themes have begun to trickle out. The government’s fiscal plan is expected to set the stage for the next election, which will be won or lost on the public’s appetite for an aggressive approach to tackling climate change.

Canada’s business community – whether we are referring to large or small enterprises – is as close to open revolt as at any time since the finance minister unveiled proposed small business tax changes in 2017.

At the same time, the dynamics of regional economies and the political divide between eastern and western parts of the country have not been so starkly on display since the 1970s. The prime minister’s focus on pricing pollution has been panned as an attack on businesses and middle-class workers by his political opponents. Even though the plan will rebate 90 percent of funds collected directly to tax payers, there is a strong resentment growing in parts of the country that continue to depend on oil and gas development to grow the economy. It has prompted some provinces, especially those led by conservative premiers, to reject the plan and bring a suit against the federal government.

Other provinces where clean, green technology is an engine of economic growth are siding with the federal government in court.

The federal plan will be applied across jurisdictions, but its form and function will likely be a matter of ongoing debate. While that conversation unfolds on the sidelines, politicians are stepping into the ring with bold claims to bring the public around to their way of thinking.

Ontario Premier Doug Ford has expressed concern that the carbon pricing system will lead to a recession.

While there is an expected decline in overall GDP, economists are singing a very different tune. The Conference Board of Canada shared its analysis that the carbon tax has the potential to decrease Canada’s GDP by $3 billion per year, but it also contextualized this change as a small fraction of a percent of the overall Canadian economy, which generates $2.1 trillion in activity annually. Provincial leaders in Saskatchewan and New Brunswick have aligned themselves closely with Premier Ford, which has put wind in the sails of the federal Conservatives, who look forward to capitalizing on the development. Regardless of whether the carbon plan makes for a noticeable decline in economic growth overall, it is undeniable that particular industries will be hit harder and the effects will be felt differently from province to province. That is fueling political drama, and in an election year, the stakes couldn’t be higher.

It is anticipated that the federal Liberals will take steps to support business owners, particularly in the sectors that will be harder hit by the carbon plan, with its upcoming budget. Groups that rely heavily on highly skilled workers, especially those with an aging workforce, are anticipating new federal supports to promote trades and make it easier for apprentices to get their ticket. Furthermore, retraining opportunities may be an area of focus to support middle-class families that are struggling as established industries are disrupted and the economy shifts.

As the election approaches, AED will be implementing a targeted government relations strategy to shape political platforms and ensure that member concerns are prioritized at the federal level. For all Canadian members, the Ottawa Parliament Hill Day from April 1-2 will present an opportunity to make your voice heard on issues of importance in the construction sector, and in your region. We look forward to working with you all to make sure the government gets the message and takes action.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 15

T HE A E D F O U NDATI ON DONOR PRO FILE

BUILDING UP RECRUITS

Stephenson Equipment Inc. does its part to develop industry training programs

H

eavy equipment is predominantly focused on building, but many in the industry also have their eyes trained on workforce development.

Stephenson Equipment Inc. is keen on developing and fostering programs to help add more skilled technicians to the industry’s personnel rolls.

Stephenson specializes in serving the crane and heavy lifting industries and the construction paving and road repair/maintenance markets in areas of Pennsylvania and New York. Stephenson has six Pennsylvania locations and two New York sites. They’ve been in business for more than 60 years and currently employ approximately 200.

And, like just about any other heavy equipment manufacturer, dealer or service provider, they’d like to get more people to join their ranks.

As a result, Stephenson has been a supporter of The AED Foundation in several ways.

Company President Bob Criste finished his term as Foundation board treasurer at the end of 2018.

Stephenson has also contributed to The AED Foundation's Annual Campaign the last few years and is helping to shape curricula and to entice students and the potential workforce to choose to choose a career in heavy equipment – often, but not exclusively, recruiting at the high school level.

“I am very impressed with how hard The AED Foundation staff are working to develop technician programs in high schools and getting colleges accredited,” Criste says.

“The technician shortage is real and The AED Foundation is doing their part to help solve this problem for our industry.”

“The skills gap is nationwide – maybe worldwide,” says Jeff Tulish, branch manager of the Prospect Park, Pennsylvania, branch. There is a lingering perception among parents that they should push their children toward pursuing a four-year degree. “Parents feel their kids won’t have a viable career without a four-year degree. The AED Foundation tries to educate parents that these so-called blue-collar jobs are lucrative.

“A four-year (school) is not for everybody,” Tulish adds. Nor does it need to be. “Trades have been hurt with the software engineering and dot-com booms, but maybe a turnaround is coming.”

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B Y: H E I D I B I T S O L I

Stephenson, among many others, is doing its part to steer that turnaround. Infrastructure needs to be maintained and installed, after all. Buildings, roads, bridges and more are in large part the efforts of heavy equipment, so the need exists.

Tulish was heavily involved in getting Berks Career and Technology Center AED Foundation-Certified. The Leesport, Pennsylvania, high school underwent the fivestep process toward accreditation. With the program now available, “kids can get funneled into the heavy equipment path and hopefully onto that career track,” Tulish adds.

Tulish points out, too, that Stephenson is like many other companies in the industry, willingly investing in the development of new and existing employees.

A recent year saw the company spending more than $600,000 toward educating its ranks. They also do internships with area trade schools, exposing prospects to construction equipment careers – and hiring, if they’re the right candidate.

It’s becoming all the more urgent now, with the industry facing a growing labor shortage as baby boomers retire.

Recruiting people into technical training is crucial as a result.

And although there is competition in the industry, there is a shared goal to get more recruits, which can only benefit the industry as a whole.

“We try to get the parents to understand what this career path entails,” Tulish says. “We let them know what the beginning salaries are and that there is very little turnover.”

With that being a shared goal of The AED Foundation, Criste implores everyone to back the cause. “I ask that every AED member support The AED Foundation.”

Your contribution fuels the work that allows The AED Foundation to develop a dealer model for success. The future of dealerships depend on how we come together to build our industry’s workforce. Thank you, Stephenson Equipment for investing in the future of our industry. To contribute to The AED Foundation annual campaign, visit bit.ly/2019aedfcampaign.

CERTIFIED TECHNICIAN Longtime technician says investing in tooling and education makes the job easier

T

hough his love of fixing things and working with his hands began much earlier, Harley Carter’s official introduction to the heavy equipment industry came in 2001, when the Phoenix-based dealership Road Machinery offered him a scholarship to the Komatsu Advanced Career Training Program at the Oklahoma State University Institute of Technology (OSUIT) – and he jumped at the opportunity.

“I love turning wrenches,” Carter said. “I decided to pursue a career in the heavy equipment industry when Road Machinery offered me a scholarship to OSU for the Komatsu ACT Program.”

Carter spent the next two years working his way through the AED Foundation accredited program, which trains aspiring technicians to diagnose, service and maintain Komatsu equipment using factory-recommended procedures, tools and service information. While completing the program, Carter divided his time between campus technical instruction and hands-on training through paid internships at Komatsu dealerships, which made sure he was primed and ready to join the workforce full time in 2003.

During a typical day at Road Machinery, Carter answers calls, visits job sites, inspects and repairs machines, resets codes, adjusts parameters, and types up reports – all of which require him to work closely with ever-changing technologies. To ensure he stays up to date with the latest technologies used in the heavy equipment industry, Carter takes training classes each year and recently completed The AED Foundation’s Certified Technician Program to test his knowledge and skills.

The certification program, which is the first of its kind in the heavy equipment industry, includes a 160-question technical assessment that covers core construction equipment technical standards for diesel engines, hydraulics and hydrostatics, electrical and electronics, air conditioning and heating, power trains, and safety and administration. The assessment is difficult, requiring extensive study and hands-on experience. Fortunately for Carter, he passed with flying colors, demonstrating his professional commitment and earning positive recognition for both himself and Road

HA R L EY C ARTER R O A D MACHIN E RY

Machinery. With technicians who hold industry-wide technical certifications, Road Machinery customers can have the peace of mind of knowing that their equipment repairs will be performed correctly should an issue arise.

In fact, the opportunity to earn an industry-wide technical certification was one of the most beneficial and rewarding things about completing The AED Foundation Certified Technician Program, according to Carter. “Having a certification that is industry wide – and not just brand specific – will really be beneficial to my career,” he said.

Carter has worked full time at Road Machinery for the past 15 years and he still loves every second of it – especially the sense of satisfaction that comes with seeing a repaired piece of equipment run the way it should. “I love the wide variety of machines and jobs we get to work on, but my favorite thing about being a heavy equipment technician is seeing the machine run correctly after being repaired.”

With the skills gap and an aging workforce contributing to a significant technician shortage, the heavy equipment industry offers fantastic opportunities for young people who are looking for a well-paying job in an in-demand field. Carter has this advice for people considering a career as a heavy equipment technician: “It’s an awesome job, but be ready for long days. Also, the more you invest in tooling and education, the easier your job will be.”

Even when he’s not busy working as a technician for Road Machinery, Carter keeps himself occupied by doing what he loves – turning wrenches – and the truck in his garage is his current project. He also enjoys spending time with his family and going off-roading.

For more information on The AED Foundation Certified Technician Program, call 630-574-0650, email info@aednet.org or visit http://aedfoundation.org/ certified-technician-program.

To learn more about the AED Foundation accredited Komatsu Advanced Career Training Program at OSUIT, visit www.go.osuit.edu/academics/diesel_heavy/ komatsu.

BY: M EGAN M AT T INGLY-ARTH UR

March 2019 | Construction Equipment Distribution | www.cedmag.com | 17

The following Sioux Falls techs have passed the test and are now AED Certified Technicians!

AED Certified Technician Program in Action

CONGRATS TO: Derek Lease Chris DeGroot Frank Fryer Michael Freier

L

ast spring, General Equipment & Supplies Inc., based in Fargo, North Dakota, began using The AED Foundation’s new Certified Technician Program, which allows technicians to earn a professional industry certification by passing an online technical assessment.

Paul Sindt Jeff Gilmore

To learn how the program is being successfully implemented at General Equipment & Supplies, CED Magazine interviewed Stephen Stafki, vice president of service. Explaining how the company ended up choosing the program, Stafki said, “We have been AED members for over 50 years, so when The AED Foundation began offering the certification testing, it was a natural fit for us. We just contacted our AED Foundation helper, who was extremely helpful in getting us through the administrative side of the program.”

General Equipment & Supplies offers equipment

by Aggregate Equipment Specialists (AES), Beltway, Eagle Iron Works, ESCO, Fab Tec, KPI-JCI, Lippmann, Magnum, Major Wire, Superior and Terex/Cedarapids Equipment; construction equipment by GormanRupp, JCB, Kobelco, Komatsu, Generac Magnum, NPK, SureStrike, Trail King, and VEI; cranes by Link-Belt cranes; and laser and GPS equipment by Topcon and Trimble. The company provides aggregate equipment, construction equipment, cranes, laser/GPS equipment, and service including parts, repair, and field services that are available to customers 24/7.

Being such a full-service dealership for so many different OEMs, General Equipment & Supplies was looking for a way to standardize the knowledge of their technicians. Stafki told CED that the choice to 18 | www.cedmag.com | Construction Equipment Distribution | March 2019

use The AED Foundation program was a no-brainer: “There weren’t any certification programs like this before, other than individual manufacturers and what they would have set up, but this test combines all of the technologies.”

Specifically, the assessment portion of the program evaluates current and future technicians’ knowledge in the subject areas of diesel engines, powertrains, electric/ electronics, A/C and heating, hydraulics/hydrostatics, and safety/administration. These six key areas in the AED Foundation's standards were created by a task force of 24 equipment technical experts broadly representing AED dealers, equipment manufacturers and technical colleges with equipment programs.

For technicians, the benefits of becoming AED Foundation-Certified include the following: •

Showing your professional commitment

•

Earning recognition for yourself and your dealership, and from your peers

•

Demonstrating that your skills fully align with The AED Foundation’s industry-developed technical standards

•

Proving you can complete equipment repairs properly the first time

•

Investing in your career

Stafki described these benefits for technicians and their employers: “This test is a great tool if you are looking to hire a technician that may already have been through schooling and you want to see how much they know. Or if you just graduated high school and are starting at a technical school, the school can give you the test at the beginning and the end of the schooling.

The test measures against a broad base of knowledge that is required in the industry as a whole and not just one particular manufacturer.”

Stafki also described some of the efficiencies created through use of the program and the ultimate assessment.

While some of these dealership benefits were not readily apparent when General Equipment & Supplies began using the certification program, they quickly found it to be quite the HR tool. “We as a dealership are also using the assessment to see, as a whole, where we may need some improvement in instruction or protocol,” Stafki explained. “Like electrical – if our scores are consistently on the lower side, maybe we will take the technical trainer to a class that really emphasizes that area. That’s how we will be taking this tool to the next step of usefulness.”

While there is no formal education associated with the AED Foundation Certified Technician Program, General Equipment & Supplies uses the assessment to guide the annual training of their employees.

“All of our employees get at least 40 hours of job orientation training. A lot of techs get 120 or more hours of technical training per year in order to stay on top of the changes in technology that we face every day.”

One of General Equipment & Supplies’ field service technicians, Landon Caughey, weighed in on his own experience with the assessment: “I actually had to take the test twice. I took it once in college and once just recently. I passed it both times, but I wanted to take it again for myself just to see where I was at.”

The entire the AED Foundation technical assessment process is online, from ordering and test-taking to

Congrats to Isaac Stone and Alex Lass on receiving their AED Certification! Training in a big part of our company culture and it makes us proud when people step up to do it on their own. They are pictured with Service Manager, Ryan Knudson.

results reporting. Each customer company is assigned its own online login and password-protected admin area, where all assessment processes can be conveniently accessed and managed at any hour of the day or night.

Once test-takers submit the completed assessments, results are immediately available in the admin area.

Caughey attested to the speedy release of results. “They went through our vice president of services initially, but he was able to show us our results right away, and if we passed.” AED uses this method so that the company can manage/control this sensitive information, provide feedback to the test-taker, and also include its chosen benchmarking information at the same time, if desired.

Technicians who receive a score of 70 percent or above on the assessment become AED Foundation certified and may purchase a kit that includes a certificate in a wooden frame, a logo hat, a lapel pin, two uniform patches, and tool box decals. “Our technicians are excited to take the test and to get that patch on their uniform,” said Stafki. “Once a technician is certified they get the plaque, they get the hat, and then they get the patch on all their uniforms, which shows that they are willing to take the test and show the rest of the world what they know.”

General Equipment & Supplies goes one step further in recognizing the excellence of their certified service technicians by putting the names of those who have successfully completed the assessment on the “AED tech wall of fame.” The wall is proudly displayed in General Equipment & Supplies’ offices and is a great way to recognize the technicians’ essential contributions to the success of the dealership.

“AED really promotes building these types of skills with the technicians that keep the industry moving forward.” He added, “The test is very much a dynamic tool showing a technician’s strengths and weaknesses, but it also brings recognition for the technician in an industry that is trying to hang on to every single person.”

If you are a technician or a dealership wanting to know more about the Certified Technician Program, contact your AED Foundation representative at 800388-0650 or visit www.aedfoundation.org.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 19

A CLOSER LOOK

ASV HOLDINGS, INC.

W

inter in Minnesota is unforgiving. During the fury of it, snow squalls swallow roadways before your eyes; trucks lose their grip on asphalt, cars spin into ditches and everything grinds to a halt.

That’s bad for business.

Two fiercely entrepreneurial gentlemen with experience in the snowmobile industry put their heads together and founded ASV, named for all-season vehicles. And up in Minnesota, they don’t take that kind of label lightly.

Snowmobile pioneers Edgar Hetteen (founder of Polaris and Arctic Cat) and Gary Lemke turned their attention from snow machines to compact track trucks when sparse snowfall adversely affected the snowmobile industry.

Hetteen, often referred to as the grandfather of snowmobiling, along with Lemke, came up with the idea that snowballed into ASV. The first ASV product was a track truck, developed out of necessity back in 1983. Minnesota winters are known for their brutality, creating an environment that vexes transportation needs. The track truck, a combination of a tractor and a snowmobile, was designed specifically to overcome winter’s unfriendly challenges and traverse the wet northern climate. The track truck’s success laid the groundwork for the compact track loader in the 1990s, and the rest is the story of ASV’s success.

“We were the first in the United States to build the compact track loader,” said Justin Rupar, ASV’s vice president of sales and marketing. “We beat everyone to market. The concept caught on and boomed.”

Back in the early 1990s, ASV’s Posi-Track included a quick-attach mechanism and a three-point hitch that allowed it to function as a brush cutter, bulldozer, auger, mower, and more, with an amazingly low ground pressure of just 1.5 psi, the only one of its kind on the market.

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B Y: K ri s Jens en Van-Heste

Today, ASV creates industry-leading compact track loaders and skid-steers that improve the quality of life for customers, have minimal impact on the environment they work on and deliver maximum value for the people who rely on them, primarily in the construction, landscaping and forestry markets. The unique rubber-on-rubber wheel-to-track contact points and fully suspended frames reduce wear and tear on the machine and track while also improving ride quality. A specialized platform provides owners and operators with increased traction, flotation, ground clearance, stability and overall capability.

The tracks used on ASV compact track loaders are unique – they don’t have a steel core. Instead, these patented ASV tracks feature rubber construction with embedded high-tensile cords (similar to kevlar) that run the length of the track to prevent the track from stretching and derailing. The pliable cord allows the track to conform to the shape of the ground, improving traction. Unlike steel, it doesn’t break from continuous bending, it’s lighter, and it doesn’t rust. Better traction and long life come standard, ASV pledges.

ASV compact track loaders use an internal positive drive to efficiently transfer tractive effort from the powertrain to the rubber tracks. Independent drive motors turn sprockets that engage the drive lugs on the inside of the rubber tracks. The low-friction design maximizes power transfer, conserving engine power for other machine functions. Wear between sprockets and track lugs is minimized through free-turning steel roller sleeves on the drive sprocket teeth. Wide sprockets – three to five times wider than competitive designs – and an open support frame that sheds material, keep the sprockets lasting longer. When it is time to replace, the bolt-on rollers keep user costs below traditional nonserviceable designs.

ASV roller wheels (up to 48 rollers on ASV’s largest model) distribute weight evenly across a large ground contact area, minimizing ground pressure and increasing traction. A revolutionary single-rail, open wheel design helps shed material, improving wheel and seal life over enclosed tub frames and saving cleaning time. The wheels are made of a durable UHMW polyethylene molded directly to the hub and coated with a final layer of rubber to provide the perfect balance of a strong center core and the needed track cushioning that results in premium ride and long life.

Undercarriages on ASV compact track loaders are mounted to torsion axles that suspend machine weight and allow controlled movement up and down. The suspension on ASV compact track loaders improves stability and absorbs impact for increased operator comfort and machine durability. This design also keeps the track on the ground to improve digging and maximize traction. When combined with its superior balance and

longest track base in the industry, this machine offers excellent grading capabilities.

ASV strives to be known as the worldwide expert in designing and producing premium, hardworking machinery. It is the company’s vision to break through traditional performance standards, pushing the limits of what’s possible.

The same entrepreneurial spirit that gave ASV its start has remained with the company these 35 years, Rupar said.

“Every single product has had that level of innovation.

We are constantly trying to push the boundaries with design, capability and performance. We want our dealers to have a premium experience with us. That spirit of innovation and entrepreneurship is deeply rooted in us, and that’s what drives us forward.”

One tenet that reverberates within the company is the notion of getting the job done, no matter the conditions – not surprising for a company based in Grand Rapids, Minnesota. “Even the ASV name – which stands for all-season vehicles – falls right in line with why they developed the products they developed. We want to be able to operate in every environment, every condition,” he said. “Where others don’t operate in the snow, we say go for it. ASV works in the snow where others struggle.”

Not just in snow, of course, but in “all seasons.”

It’s ASV’s deeply held belief that no matter what site you’re working on, or its condition, you should be able to complete the task at hand quickly and with ease. That’s why they strive to make machines that help customers get more done in more places than they ever thought possible.

“We want people to know when we develop a product, we keep the dealer in mind. We empower people to elevate the level of product and reach a new standard.

We want them to be able to work in places they’ve never been able to work, while being stewards of land: We have the lightest ground pressure of any other compact track loader on the market. That translates to more work in more places.”

March 2019 | Construction Equipment Distribution | www.cedmag.com | 21

Not surprisingly, ASV wants to be the company that’s out in front, pushing the limits, Rupar said.

in New Zealand and Australia – not only that, but ASV is the market-share leader.

“If you take a look at the landscape of equipment manufacturers, and you compare A to B to C and D, we want to do everything that they do and more,” Rupar said. “If someone says, ‘You can’t do that with a compact track loader,’ we want to be the company that gets out there and innovates beyond the expectations of that consumer. When a consumer gets into an ASV product, we want them to say, ‘I had no idea you could do that with a product like this.’

“We were one of the first entrants into the New Zealand market and had it to ourselves for a while,” Rupar said.

“It was a well-kept secret for a while, but now it’s pretty competitive.”

“We want to set the bar that all the other manufacturers are forced to chase. Constantly pushing the limits is the foundation of that goal.”

Traded on NASDAQ as ASV Holdings Inc., the company employs 190 on-site in Grand Rapids.

Manufacturing and the parts warehouse are in the same complex.

ASV does business with approximately 190 retail dealers and 100 independent rental dealers. Most are in the United States and Canada, but since innovation is in its DNA, the company has a mature distribution channel

Up in Minnesota, company culture is vibrant against the backdrop of the long northern winters. It’s collaborative, Rupar said, with open communication lines.

“People are very excited to share their ideas and comments, improvements to the assembly line, procurement, fabrication and welding, sales – people are very passionate about the company’s success,” he said.

It’s no mystery why the esprit de corps is so strong: The company is the epitome of local.

“And it’s been local for a very long time, it’s part of the community, and it’s part of the culture, really,” said Rupar. “People here are very hardworking, passionate and loyal, and they live here because they want to be in this environment. That translates into their work – they love what they do.”

1983 Founded by Edgar Hetteen and Gary Lemke, both pioneers in the snowmobile industry, ASV’s first innovation was the Track Truck. Lemke and Hetteen created the Track Truck to be a rubber-tracked vehicle. It was an imaginative utility machine the size of a pickup truck that delivered less ground pressure than a person. And just like that, ASV was formed.

1990 ASV introduced the first Posi-Track rubber track loader to meet the needs of construction, agricultural and landscaping industries. The machine featured a rugged rubber track undercarriage while blending the power of a steel track dozer with the versatility of a loader-mounted quick-coupler.

1995 ASV moved from its original facility in Marcell, Minnesota, to its current location in Grand Rapids, Minnesota. The facilities in Grand Rapids grew, as did ASV’s reputation for its unique machines and track-driven undercarriage technology.

1998 Eight years after its loaders were introduced, ASV entered into an agreement with Caterpillar Inc. to produce rubber track undercarriages for some of the Cat compact equipment product line. This alliance continues today.

2008 Terex Inc. purchased ASV Inc. from its original shareholders and later began to offer ASV-designed loaders under the Terex brand. A line of ASV-built skid-steer loaders was added to the Terex product line in 2011.

2014 Manitex International Inc. purchased 51 percent of ASV, allowing ASV LLC to begin marketing its own line of compact track loaders, once again under the ASV brand in 2015.

2017 ASV Holdings Inc. completed its I.P.O. to become an independent public company and began trading on NASDAQ under the symbol ASV. PRESENT The tradition of innovation and expertise in rubber track undercarriage design that started in 1983 charges on today and into the future as ASV continues to manufacture a full range of industry-leading ASV-branded compact track loaders and skid-steers.

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Strong dealerships play a huge role in ASV’s history of growth—we want you to be one of those dealers.

Since 1983, ASV has engineered, designed and produced every one of our machines to ensure our entire network’s success. Today, we’re committed to partnering with each dealer to strengthen our brand across the country. // To learn more about our company and join the team, visit asvi.com/AED.

Ad_template.indd 2

2/20/2019 9:22:22 AM

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O

ver the past few years, CED has reported on key technologies that are revolutionizing the heavy equipment distribution industry. Advances in building information modeling (BIM), drones, telematics, and the “internet of things” have all changed the way we go about business, and CED has reported on them all.

For the inside scoop on some of the big tech trends of 2019, we checked in with some AED member service providers. Mobile functionality, integration, 5G and improved website engagement are just some of this year’s trends discussed. But when historians look back at 2019, the year will likely be remembered less for new technology than for the improvements to existing technological aids that made them more relevant to our businesses.

Take telematics, for example. If you have been to any industry trade show in the past four years, you were likely inundated with the possible synergies that telematics was supposed to bring about. Roughly a year ago, CED reported, “Top industry analysts have told us that telematics are overpromised and under-delivered, inferring the golden age of ‘internet of things’ and telematics has only just begun.” We cannot attribute the invention of telematics to 2019, but advances in telecommunications infrastructure by way of 5G networks will likely usher in the golden age of the “internet of things” this year.

Rather than looking for the next big “over-promised and under-delivered” technologies of tomorrow, let us look at the hardware and software available to us now, from some of the folks that know it best.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 25

TECHNOLOGY SHOWCASE AVAN AD E AVANADE, Microsoft’s largest partner, specializes in supporting equipment dealerships and leading equipment OEMs. Providing unique industry-leading solutions and in-depth industry knowledge and perspective is in our DNA. In addition to Microsoft Dynamics D365 Connected Dealer, we have just released Microsoft Dynamics D365 Connected Field Service and Microsoft Dynamics D365 Connected Rental. Both solutions reside entirely within Microsoft Dynamics D365 CRM, which allows for rapid and low-cost deployment. These modular solutions easily integrate with many leading financial and ERP software packages available today. Connected Dealer lets you leverage the power of IoT functionality, so you can build your share of customer wallet and drive better market performance. You can deploy the full potential of Dynamics and Microsoft Azure machine learning by using data to predict failure and resolve issues before they become apparent. Call us to find out how to join the more than 150 dealerships already using Connected Dealer.

BAS E P L AN Becoming more profitable with the same number of resources is critical to remaining competitive. Having many disparate software systems bolted together across your business will cause leaks in revenue and lost time trying to consolidate information and reports. Backed by over 30 years in the construction dealership industry, Baseplan Software helps companies streamline their processes, reduce costs, and increase productivity. Baseplan offers a comprehensive ERP software system that has been built specifically for the dealership industry. With comprehensive equipment sales, rentals, service, and inventory management modules functioning cooperatively with a real-time financial module, Baseplan Enterprise provides the highest level of process control and business intelligence. Visit www.baseplan.com for more information, and call us at 702-410-8600 to schedule a comprehensive demonstration and understand why Baseplan Software is much more than just a rental system.

BAS YS P RO C E S S ING BASYS Processing provides credit card and debit card processing services, with solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need. “We are very excited about 2019!” said Derek Wiedenmeyer, account manager at BASYS. “We will roll out some significant upgrades to our virtual terminal this year. Every day we add new software integrations via our gateway. In April, we are scheduled to break ground on a new building due to our continued growth of more than 20 percent per year since our founding in 2002.

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ENHANCED LISTING

INTRODUCING A ED3 6 0 DOWNLOAD AED’S NEW ALL-ENCOMPASSING MOBILE APP

NOW AVAILABLE ON

March 2019 | Construction Equipment Distribution | www.cedmag.com | 27

TECHNOLOGY SHOWCASE CD K GL O BAL Service, parts inventory, and rental equipment are important to the profitability of any equipment dealership. However, traveling staff, dispersed customers, and fluctuating inventory can make it challenging to keep the dealership running smoothly. CDK MobileInspection can help add value before the work even begins by confirming that a job site is safe for a technician. After work is completed, MobileInspection can help identify other areas of work to generate additional revenue for the service department.

MobileInspection allows you to provide appraisals for customer units that need to be inspected for a trade. You can also use it to track damage to your rental fleet and estimate when the damage occurred. Highly customizable, MobileInspection allows dealerships to ask the questions they need answered and attach pictures that will be integrated with the equipment profile – without the need for paper notes and data entry. Streamline your mobile inspection process today!

CEMEN TECH CEMEN TECH has introduced AP Office and AP Mobile, a new set of tools in its ACCU-POUR technology suite available for volumetric concrete mixer users. AP Office and AP Mobile are an all-new cloud-based productivity solution that provides users a complete view of their concrete business operations. The ACCU-POUR technology suite is designed to make an impact on operations of all sizes, giving users more control over their business than ever before.

For more information on ACCU-POUR and the entire line of Cemen Tech’s volumetric concrete production solutions, visit www.CemenTech.com or www.ACCU-POUR.com.

C H ART E R S O FT WA R E Charter Software’s ASPEN Business Management Software is the only business management software that enables effortless growth by anticipating and adapting to meet your dealership’s needs and providing the actionable data insights you need to understand what drives your business. ASPEN is an affordable, scalable Windows-based system designed to increase ag and construction dealers’ communication and profitability across all departments. Manage your business better with advanced reporting and data analytics tools. ASPEN’s mobile application allows dealers who do rental to track units and technician time in the field, to maintain accurate inventory counts, and to get access to customer data from a smartphone or tablet. Charter Software understands your business and works closely with leading industry suppliers to provide dealers with OEMapproved integrations to help streamline ordering, reduce errors and minimize duplication of effort. Let’s move into the future together. Call 303-932-6875 or email us at solutions@chartersoftware.com.

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ENHANCED LISTING

TECHNOLOGY SHOWCASE C O M M E RC IAL W E B S E R V I C E S Having a website for your dealership used to be a competitive edge. Now it’s an absolute necessity. Staying a step ahead of your competition and in front of your customer requires a strategic marketing approach to generate more customer connections and, ultimately, potential for more revenue. Commercial Web Services is a leading digital marketing provider catering exclusively to the equipment industry. CWS delivers the industry’s most sought-after services for online marketing (including website hosting and design), search engine services, social media management, inventory exposure and more, to get you in front of the right buyers. Your success is our success, and we strive to make you successful! For more information about Commercial Web Services, please visit www.commercialwebservices.com.

D IS DIS’ core products include dealership management systems such as Quantum, Solutions, Ultimate, Minitrac and QuipWare. DIS also offers a number of addon products, including hosted cloud-based systems, web-based management tools and mobile apps for dealership employees.

E -E M P H AS YS E-EMPHASYS Technologies is the leading supplier of enterprise dealer management software for equipment dealers and rental companies. Our modern, end-to-end platform is available on any device, browser or database, empowering you with a unified, real-time view of your data – wherever you are. The e-Emphasys Dealer Management Platform incorporates a full suite of best-in-class technology including Business Intelligence and Reporting, CRM, Mobile Field Service Applications, Inspection Applications, eCommerce Customer Portals, RFID, Artificial Intelligence, IoT and Telematics. e-Emphasys has worked exclusively with equipment dealers for nearly 20 years and has developed a repository of over 400 best business practices learned from working side by side with some of the world’s leading dealerships. With customers in nearly 20 countries, e-Emphasys has a proven track record of customer success and return on investment across the globe. Improve operational efficiency, increase profitability, and futureproof your dealership with the e-Emphasys Dealer Management Platform.

E Q UIP M E N T WAT C H With over 50 years in the consultative data industry, EquipmentWatch provides an array of business solutions powered by unique-in-market data and APIs. Its equipment valuation software is known across the industry as one of the most trusted sources for heavy equipment valuations.

The FMV, OLV, and FLV of a specific asset or of your entire fleet are a click away with EquipmentWatch’s software.

These valuations take into consideration age, condition, location, and utilization to maintain accuracy. Over 200 institutions use EquipmentWatch, which is ideal for insurance actual cash value (ACV) requirements, joint venture splits, finance/portfolio audits, and company valuations. With over 28 million records, EquipmentWatch’s database ENHANCED LISTING

March 2019 | Construction Equipment Distribution | www.cedmag.com | 29

TECHNOLOGY SHOWCASE S M ART E Q UIP SMARTEQUIP is a global software provider that facilitates parts procurement and the delivery of OEM and dealer product support information to owners of multiple brands of equipment. With over 350 suppliers on the SmartEquip network, the vision of the company is to provide an e-commerce marketplace that improves repair and maintenance efficiency for the fleet while protecting and increasing the OEM’s and the dealer’s aftermarket business. The software connects OEMs and dealers directly to their customers by embedding a “storefront” in the fleet owner’s repair and maintenance workflow. SmartEquip’s products are designed to capture equipment in the secondary and tertiary markets and reconnect them to their dealers. You may be asking why SmartEquip has such an OEM- and dealer-centric philosophy. The reason is that before the management team acquired and managed SmartEquip, they were dealers too.

When you offer your customers a better parts procurement tool, they tend to stick around.

We understand the importance of parts sales and client relationships to your business. SmartEquip is a software solution that your dealership can offer its customers which connects them directly to all the parts and product support information for every brand you sell. We keep your customers off the internet and imbed your storefront right in their workflow.

So, no more competing with open marketplaces and will-fitters. We’ve spent 18 years getting the support content in place. Now your business can leverage that and keep your customers glued to your business.

To find out more, email us at beready@smartequip.com or visit our website.

smartequip.com

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TECHNOLOGY SHOWCASE TARGIT Providing near real-time visibility into industry-specific KPIs, TARGIT helps equipment dealers decrease costs and increase efficiency and profitability. We’re the software company behind TARGIT Decision Suite, the enterprise business intelligence and analytics solution for all business users. With an emphasis on people, our mission is to transform entire organizations by revealing actionable insights that allow every user to make better and faster decisions. The unique combination of our patented technology, proven methodology, and dedicated employees and partners enables us to help organizations around the world perform at their best. TARGIT gives companies the courage to act. TARGIT Decision Suite for heavy equipment dealers delivers full insight into every aspect of your dealership. Get real-time access to KPIs like gross profit margins, utilization rates, and maintenance-to-income ratios all in one easy-to-use solution that’s accessible to everyone in the organization. Learn more at <!-- Generator: Adobe Illustrator 23.0.1, SVG Export Plug-In -->

T O O L H UB Are your toolrooms leaking profits? Troubled by high replacement costs for missing items, lost time and poor employee productivity at your sites? Look to ToolHub, a solution to help manage and track tool inventory, save time and significantly boost your bottom line. Developed for industries where tools matter, ToolHub enables companies to manage assets across multiple locations, such as toolrooms, mechanic bays, and even service vehicles. And because ToolHub is a web-based application, you can manage all data affiliated with your assets from anywhere there’s an internet connection, including tablets for those out in the field. Locate tools quickly, check in and out using barcode or RFID technology, and manage transfers between locations. Avoid safety issues by enforcing maintenance schedules, and use ToolHub analytics to optimize inventory levels, make informed asset purchases and minimize loss. Learn more about how ToolHub gets your tools working harder for you at www.toolhub.com.

T RIM BL E TRIMBLE Field Service Management (FSM) provides cloud and mobile solutions to help equipment dealers connect, monitor, analyze, and optimize their business.

Trimble PULSE™ connects the mobile workforce through telematics and empowers asset and operations managers to work connected with real-time location, utilization, and health data from their entire fleet. Service organizations can better manage their back-office operations, schedule and dispatch their jobs, and mobilize their field technicians. Trimble PULSE™ is a highly scalable and extensible platform that allows for large amounts of data to be analyzed and transformed into insights and actions that drive business operations.

To see how Trimble PULSE™ can improve your business, download our Pon Cat case study.

ENHANCED LISTING

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T H E A E D F O U N D AT I O N R E L E A S E S

AUTONOMOUS

TECHNOLOGY

STUDY P E R F O R M E D B Y C AV C O E | S H A N A B O S L E Y

The AED Foundation has released “A Study of the Impact of Autonomous Technology: 2019 Report,” performed by CAVCOE (formerly the Canadian Automated Vehicles Centre of Excellence).

The study details the impact of automated vehicles (AVs) on the business models of AED’s members and their customers.

AVs are beginning to saturate the heavy equipment industry in the forms of fully automated buses and heavy haulers, fully automated agricultural equipment, and driverless cars.

Continued rapid development implies a substantial impact on AED members and customers.

The complete study can be found at: www.aedfoundation.org/a-study-of-the-impact-of-autonomous-technology/

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P R A C T I C A L I M P L E M E N TAT I O N S T O C O M E

A

ccording to the study, automated systems will first emerge in “easieruse cases such as small, low-speed automated shuttle buses, cars for driverless taxi applications in well-mapped urban areas, and autonomous tractors for moving trailers at low speeds in ports and logistics-handling areas.”

More challenging forms of implementation will follow these. The AVs that are currently in use are designed for locations such as private land or downtown areas. They are meant for areas with geographical constraints.

Benefits of further development include improved safety, reduced emissions, freed-up time and cost savings. For example, it is estimated that full development of autonomous and connected vehicles could lead to a significant reduction in traffic collisions, fatalities and injuries.

Developmental trends point toward more advances in driverless vehicles, including increased versatility. In other words, AVs will likely be operable in almost all types of locations by the 2030s.

One of the most important trends in development has to do with business models. There will be a shift in the direction of mobility-as-a-service, which means that the market will be an exchange of services rather than goods. This change will directly impact infrastructure projects.

The two autonomous systems that are most relevant to AED members are autonomous driving systems (ADS) and autonomous work systems (AWS).

These systems are likely to produce algorithmic enhancements to otherwise manually labored projects, and they require only remote control from a qualified technician.

For example, the mining sector especially has made strides in the development of autonomous systems. The implementation of these systems in the mining sector has greatly improved the efficiency and safety of such operations, above and below ground.

Komatsu has trucks operating on seven different sites, six of which are fully autonomous, and they have no record of any incidents or threats to safety. Some of the benefits that were noted at Komatsu’s Arizona Proving Grounds media event included “reduction of risk from drowsy or unskilled drivers, taking personnel out of hazardous working areas, and centralized control.”

There will also be a shift from fuel-powered vehicles to battery electric vehicles, which will have lithium-based battery cells.

These advancements in the mining sector are transferable to the construction sector. Developments in semi-autonomous equipment are ongoing, with the hope of achieving full autonomy.

The construction sector has seen an increasing number of humanoid robots being introduced into projects. They are capable of driving vehicles, assessing rough terrain or cluttered spaces, delivering items, and more. Advancements in these autonomous workers are expected to continue.

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This study offers a step-by-step plan for dealing with these changes.

Find it here: www.aedfoundation.org/a-study-of-the-impact-of-autonomous-technology/.

In addition to the mining and construction sectors, there will be changes in the agriculture sector. Tractors have been the main focus of the autonomy boom in farming, and the ultimate goal is precision agriculture solutions. While some of the current autonomous tractors operate under supervised autonomy, there is a growing number of fully autonomous tractors.

Foresting is another sector that is implementing AVs, although foresting introduces more limitations such as remote areas, steep slopes, rugged terrain and a general lack of cell towers and Wi-Fi. Work on remedying these limitations is ongoing.

I N -DEPT H A NALY SIS O F AN A ED ME MBE R

The Berry Group, with five Bobcat dealerships, highlights some of the ways in which autonomous systems can impact the construction sector. Berry’s current Bobcat machinery is still mostly traditional with a few driver assistance systems, but developments point to more integration of autonomous systems.

Some expected changes include autonomous vehicles being capable of carrying out certain tasks better than human operators, significant redesign of Bobcat equipment, and eventual full automation of almost all tasks.

The Berry Tractor division is beginning implementation of more advanced autonomous systems such as GPS and driver assistance systems. They have also been using remote control to repair sinkholes and for working over known caverns. The integration of drones into operation is also of interest to developers.

All the current uses of autonomous systems, as well as the anticipated advancements, come from a focus on cost savings, but there is likely to be resistance and hesitation from customers and workers.

Full automation in the tractor division is already happening, and the trend is expected to continue for more types of vehicles. Technicians will need to learn new skill sets, and customers will need to be retrained as these developments enter the industry.

I M PL IC ATION S FO R AED MEMBER S A N D THE IR WO R KFORCES

Artificial intelligence (AI) technology is rapidly advancing and will likely catalyze and facilitate the growth and expansion of most technology.

Ray Kurzweil, a fellow with Google, predicts that the early 2030s will mark an “‘event horizon,’ as forecasting past this date will be open to even greater error than before.”

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That event horizon will involve mostly advancements in AI technology, and progress in AVs will likely be a byproduct thereof. In addition to these, even advancements in robotics could benefit AED members.

Optimistically, those technologies will be easily transferable to equipment that is relevant to AED members.

The growth of AI is indicative of the developments to come to AVs, and predictions should greatly consider and follow advancements in AI technology.

For example, some key advancements to look out for include but are not limited to “ADS/AWS technology that is safe enough to be released commercially, confirmation that ADS/AWS technology can satisfy legal and liability requirements, and substantial investment in ADS/AWS from one or more key players in AED sectors.” Milestones such as these will be crucial components of predictions and planning.

Pessimistically, concern for safety will be the greatest challenge for autonomous systems and is already hindering the rollout of those systems on public roads.

However, most AED members use equipment in controlled environments on private land, so they will likely have access to this technology sooner than many other sectors.

These changes could raise concern for AED members and their clients, as they might end up with stranded assets and obsolete equipment. AED members can expect some changes to equipment design, but overall, equipment will remain relatively similar to its current forms.

Furthermore, end users might find themselves renting equipment rather than owning it, and the move to battery electric vehicles will yield a wider variety of available machines. As the technologies evolve, there could be reduced demand for certain equipment from AED members.

AED members and clients are encouraged to follow such developments closely and to actively plan for the continued implementation of AVs. Plans should be flexible and versatile to accommodate for any unforeseen changes in the technology or business.

These advancements are expected to “change the equipment industry as much as the transportation industry.” Business models will likely gain both opportunities and challenges, such as new equipment designs and updating the skill sets of employees.

Disruptive changes are on the way, and AED members and clients should move proactively and positively in the direction of significant trends. It will be crucial to remain receptive to these changes in order to avoid being truly disrupted by them.

DEALERS STRIVE TO MEET

D ATA - D R I V E N DEMANDS Dealers can use data to meet customer needs and deliver added value.

Becky Schultz | Editor | Equipment Today

T

elematics has proven to be a game changer for the construction industry, delivering transparency into equipment operation and performance. Yet, there is a risk of too much of a good thing, both for customers and for the dealers tasked with managing incoming data on their behalf.

“There is a certain data overload,” said Peter Mayr, president of Liebherr Construction Equipment, during an OEM panel at the 2019 AED Summit in Orlando, Florida. “Some of our dealers use the data really well.

They are ahead of things, and they are probably our most successful dealers. They are proactive; they watch the machines for the customers ... But it’s still a certain information overload.”

And further potential for data capture is starting to emerge. “We will get to the point where components have sensors that will tell us ... when to change them before they fail,” Mayr said. This has already started in the mining industry. “You have very clear indicators in the components when they wear out and when they will fail.”

Construction equipment components could soon head in this direction. “We just need to be careful that we don’t overload people with information. We need to filter it so that what they get out of it is meaningful,” Mayr cautioned.

Dealer relationships are critical to this process and can be viewed as a differentiator in the eyes of customers. “The dealer having a strong relationship with a given customer has the opportunity to prove to that customer that they add value,” said Jason Daly, global director, marketing and support, John Deere Construction & Forestry. “And they can add value by maybe answering the questions before the questions are asked, and ultimately resolving the customer’s problems before the customer is even aware.”

OEMs can play a pivotal role in delivering such value, as well. Consider Volvo Construction Equipment, which collects the data from its machines in a central location and filters it for dealers and customers. “We’re able to look at the data and any particular fault codes and push information out to our dealers,” said Stephen

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Roy, president, sales region Americas. “Our dealers actually have a 95 percent chance that if they take this route with these parts in their service vehicle, they will solve the problem.”

Dealers are able to focus on the repair rather than the diagnostics. “It’s actually taken the diagnostics time down. That’s important,” said Roy. And there’s more value potential to come – for example, in the form of predictive analytics. “We’re trying that now with certain customers and dealers to find just the right model,” Roy noted.

The most pressing need is to figure out what else can be done with the data that already exists. “That’s a conversation we’re having with dealers to ensure they have a voice with the customer on improving productivity and machine performance,” said Roy. The demands to deliver value-added data-related services will continue to expand. Where once John Deere had to push telematics implementation, now “we’re being pulled by customers and dealers today to do more and to do more faster, and to deliver more prediction than we’ve seen in the past to create that available uptime that customers in the future are going to expect,” Daly indicated. “We need to find ways to deliver that.”

There are certain dealers leading the way, and there are those who aren’t quite there yet. “Our challenge as a manufacturer is to try to get people up to speed as quickly as we can to take advantage of the technology that’s out there,” Daly said. He noted a time when manufacturers hadn’t considered the need to have data scientists on staff. “Now the dealers have to start thinking about that.

“The winners are the ones who figure out how to take that data and segment it and analyze it and do something with it,” he continued, “again, ultimately with the goal of providing customers with some sort of enhanced service – something to make their business better than it was before.”

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P R E PA R E F O R HIGH-TECH

DISRUPTIONS AHEAD

Equipment dealers must plan today for the disruptive shifts in technology to come.

T

Becky Schultz | Editor | Equipment Today

he construction equipment industry has seen exponential advancements in technology over the past 10 years, and indications show more to come in the decade ahead. According to “A Study of the Impact of Autonomous Technology” conducted by CAVCOE on behalf of The AED Foundation, the trend toward automation and electrification of vehicles and heavy equipment will accelerate from “low levels to noticeable levels” over the next five years.

“There’s going to be a gradual but very definite deployment of autonomous technology,” said Barrie Kirk, executive director, CAVCOE, at a press conference held at the 2019 AED Summit in Orlando, Florida, to announce the study’s findings. “It will be gradual, incremental, and may take a number of years, but (it will be) very deliberate ...

The shift will start with functions that are easy to automate and will accelerate from there. “Five to 10 years out, most of the heavy equipment will be at least partially automated, and some of it will be fully automated,” said Kirk. And within the next 10 to 15 years, the study indicates, more than 80 percent of heavy equipment is expected to be powered by electric powertrains and have systems central to autonomous operation.

Brian P. McGuire, president and CEO of Associated Equipment Distributors, noted that, while the timing could be debated, “the key thing we found is that most OEMs are already fast at work at (autonomous equipment operation), and certainly in the mining industry it’s already there.”

The study indicates that heavy equipment manufacturers are already looking at providing services to their clients that go beyond the traditional equipment sales model. “If this transition from a salesto a service-based business model gains momentum over the next five to 10 years,” it states, “then this could have major ramifications for the entire AED ecosystem.

“All AED members developing business strategies beyond the next 10 years,” it continues, “should consider the profound impacts that artificial intelligence in particular could have on their business and operational models.”

MONITOR CHANGES AND BE OPEN TO OPPORTUNITIES An OEM panel held at the AED Summit seemed to echo many of the findings of the study, as well as its advice to AED members (see “Automation Study Recommendations”). Five representatives from leading

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construction OEMs addressed critical issues facing dealers both today and in the long term.

When asked what their “best and brightest” dealers are most concerned about, emerging trends and technology topped many lists.

According to Michael Ballweber, senior vice president, commercial business, Doosan Bobcat Inc., questions these dealers tend to bring up include the following: •

What’s going to change in our industry as we go forward, and as manufacturers and dealers, what is our place in that value chain?

•

What services are we going to provide?

•

How is our business model going to look?

•

And how are we going to take advantage of those things that are happening?

“I think the most interesting conversations are the ones where they’re not scared about what’s going to happen. They look at it as an opportunity,” said Ballweber. “I think the people that look at it as a threat and are really set on ‘I just want business to be the same the next 20 years as the last 20 years’ – that’s where we’re going to have the challenges.”

In discussing the autonomous technology study, Kirk warned that such advancements would be very disruptive. “There are going to be business opportunities and challenges,” he said. “I think the winners in the 2030s will be those companies who can stay ahead of the curve and look into the impact and plan for it.”

But there will be losers as well. “The losers ... will be those companies who just wait for the technology – by which time it will be too late,” said Kirk. “So stay ahead of the trail.”

Peter Mayr, president, Liebherr Construction Equipment, believes there will still be a role for those who lag behind. “Somebody has to repair the machine ... The dealer plays an important role there,” he commented. “But I think it’s important for them to be open-minded and look at the new things happening ...

“I also believe that in the future, they might not get paid for the sale of the machine,” he continued.

Rather, they may be paid to do much more – including managing a customer’s entire job site.

BE FLEXIBLE AND THINK SERVICE Future success for many dealers will be based on their ability to adapt. “Some of the best dealers are all about how they can better meet their customers’ needs,” said Philip Kelliher, vice president, Americas distribution services, Caterpillar Inc. “And obviously, in doing so, they keep changing; and hence the openness, flexibility and preparedness to evolve, basically to try to provide better solutions for their customers.”

This will be crucial for what may lie ahead. “The traditional model is sell, service, trade in. Now we’re more focused on fleet management and helping our customers manage their fleets better,” said Stephen Roy, president, sales region Americas, Volvo Construction Equipment. “The next is site management. That will be a dealer’s core competency one day.”

AUTOMATION STUDY RECOMMENDATIONS

“ A Study of the Impact of Autonomous Technology” offers five recommendations to AED members as they prepare for what lies ahead: 1. Actively monitor technology developments both within your sector and outside, looking for potential disruptive trends that may well come from autonomous system technologies being developed by major tech companies.

2. Develop business model flexibility to accommodate changes in equipment automation and electrification.

3. Network with manufacturers, dealers, service operations and end clients to develop a greater understanding of needs and concerns as automation is introduced into the various business sectors.

4. Be aware of commercial pressures toward a more servicebased (as opposed to salesbased) business model and prepare a business strategy for that.

5. Expand technician training to accommodate as much experience as possible relevant to automation and electrification.

He pointed out the electric site test that Volvo CE conducted last fall at one of Skanska’s Swedish quarries, in which autonomous haulers were put to the test in a real-world operation. In this environment, it’s not about the machines, said Roy, but how those machines work together.

He sees the dealer’s role as helping that equipment work effectively together on the job site of the future. “When you have autonomous and electric machines, you’re going to have to have a new way of thinking,” Roy said. “What we learn will, over time, transpose to the dealer network. So, as we learn to manage those sites, the dealers will [become] those operators ...

“It may not be a traditional sale model but a service model for the work that’s done,” he continued, “which happens to include the machines and may include the operator.”

Other types of services are likely to evolve as well. Consider the business model used by rental houses in Europe. “Typically, the rental house wants to send its own operator (with the machine) because they want to make sure he looks after the machine,” Mayr explained. The rental house not only gets better equipment longevity, it can also charge more for the services of a skilled operator.

Could such a business model be adopted in the U.S.? Jason Daly, global director, marketing and support, John Deere Construction & Forestry, believes it’s possible but could be difficult in the current low unemployment environment. He believes the bigger likelihood is for an Uber-type scenario to emerge – with the related negative implications.

“The fear that I’ve heard from some of our dealers and customers is that there are a number of idle assets,” he said. “You can look at rental yards, dealerships ... customer sites where machines are not operating at all times. So the opportunity for someone outside the industry to enter, like Uber, is not only possible but probable.”

While this represents a threat, remote-controlled operation could be a further service-based opportunity. “We have customers who want to remotely operate a machine – completely remotely, meaning 10 to 15 miles away,” said Mayr. “You can equip the machine with cameras, and with the monitor screens it feels like you’re sitting in the cab.”

Such technology is advancing rapidly. “It could be that you contract people to operate certain hours of the day,” said Mayr. “It could be that one day the machine is even operated from abroad in a safe environment.”

This may seem far-fetched, but consider that military drones are operated on the other side of the world by service personnel stationed on bases here in the U.S. TEACH TECHNICIANS NEW SKILLS With the changes ahead, there will be substantial shifts in the expertise and training required by service technicians. Electric drivetrains, artificial intelligence and autonomous technology will require a whole new set of skills.

“One of the main takeaways we got from the findings of (the automation study) is that the type of technician that’s going to be needed in the future is going to change rapidly, and more than we know,” said McGuire. “There’s really going to be a shift to an electronics technician as opposed to a diesel technician.”

Today’s technicians tend to focus their expertise on mechanical and hydraulic systems, Kirk noted. “In the future, you change that paradigm and you have electric drive systems and artificial intelligence and automation. That will be a whole different skill set, and you’re going to have to start training people now,” he advised.

Roy agreed, adding, “Disruption is coming, technology is coming, new business models are coming. Our discussions with dealers are really around the talent they are going to have to have.

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“We probably have the same job profiles that we’ve had for 50 years – parts manager, service manager, sales manager,” he pointed out. “But there are studies that say 70 percent of the new job profiles have not even been created yet. That’s the issue we’re facing. I think you have to be open to what is coming, what your customers are demanding and how your organization is going to have to change.”

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AED Summit: Growth is still ahead, but tempered by workforce, infrastructure funding needs

S

BY MARCIA DOYLE |

Editorial director, Equipment World and Big Iron Dealer

unny skies reflected sunny moods at the 2019 AED Summit in Orlando, proving the perfect backdrop to celebrate the association’s 100th year.

After a stellar 2018, there were indications throughout the event that while 2019 won’t reach 2018’s heights, it will likely still be a growth market.

“Construction equipment sales were strong in 2018, showing 10 to 25 percent growth across the market depending on equipment type,” said noted construction economist Eli Lustgarten, president, ESL Consultants, during the Summit. “In 2019, we’ll see 5 to 15 percent growth, but 2020 will probably be flat to down. It’s clearly showing down from 2018, and orders will trail shipments, and set the stage for this plateauing.”

The good news for dealers: “It shouldn’t be a terrible downturn, but it will clearly slow down,” Lustgarten said.

Lustgarten said early indications show mild growth in housing, with the National Association of Home Builders placing 2019 housing starts at 1.27 million, up 0.8 million from 2018 and 2020 housing starts at 1.31 million, up 3 percent. “It used to be that 1.5 million housing starts was a normal level, now it’s 1.3 million,” he said.

Lustgarten also cautioned against placing too much hope on the new highway funding bill that’s due in 2020, especially if it resembles the current one, 2015’s Fixing America’s Surface Transportation Act. “The FAST Act did not help machinery demand in 2016 and probably did not help it much in 2017 and 2018,” he said. “It perhaps only lent stability to the highway sector to stimulate state spending.”

He also points out that the Highway Trust Fund spent billions more than it collected in revenues last year and that this year the deficit will be greater. “The next fiveyear transportation bill needs an additional $85 billion to keep it at current levels,” Lustgarten said.

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AUTONOMOUS FUTURE

An AED Foundation research piece, announced during a press conference at the Summit, offered an intriguing look at the future.

“In 10 years, most heavy equipment will be at least partially – and some of them will be fully – automated,” said Barrie Kirk, executive director of the CAVCOE (formerly the Canadian Automated Vehicles Centre of Excellence), which produced the research. “And by the 2030s, 80 percent of the equipment sold will use electric power trains.”

The research piece, “A Study of the Impact of Autonomous Technology,” examined how dealers might begin to prepare for the impact of this emerging technology, and what areas in their dealerships needed careful examination during this preparation.

In response in part to this technology, there will be a trend among dealers away from the sales side to the service side, which mirrors what is happening in the auto sector, Kirk explained to the gathered press conference crowd.

In remarks made to Equipment World following the study announcement, Kirk said a dealer’s business model will change as the equipment itself changes and as both manufacturers and customers move towards the service model. “Dealers have to decide whether or not they want to get into that or leave it to others to provide this service,” he said.

But just as important will be the skills needed by equipment technicians. “Technicians will need a lot more expertise in electronics, electric drivetrains and software,” he said. In fact, the current technician shortage might impact the transition to automated machines. “We’ll have to redefine what technicians do and train them to have a different skill set,” Kirk told Equipment World.

“In the next 5 years there will be a gradual but definite deployment of autonomous technology,” Kirk says. “No one will throw a sudden switch; it will be incremental.”

Automation is one of three trends – which also include artificial intelligence and electrification -- starting to deploy in the heavy equipment sector, starting first in mining, Kirk says. (Current automation examples in heavy equipment include Komatsu’s autonomous mining trucks, Volvo’s Electric Site quarry project and Caterpillar’s autonomous mining fleet.)

The AED report recommends that dealers actively look for potentially disruptive trends that will perhaps come from autonomous systems. Other recommendations include: •

Network with industry players – particularly manufacturers -- to develop a great greater understanding of needs and concerns as automation is introduced.

Stephen Roy, president, sales region Americas, Volvo Construction Equipment, said he looks at how hungry a dealer is. Is the dealership on a mission to grow? Do they pay attention to the small things? “I walk in and try to experience what the customer is experiencing,” he said.

And this is true not just within the dealer headquarters and branches, says Jason Daley, global director, marketing and support, John Deere Construction & Forestry. “It involves watching how sales people are engaging on jobsites, how well the customer knows the sales person. A lot of customers don’t come into the dealerships, their employees do. If a dealer knows the customer and the job well, it’s truly a differentiator.”

•

Be aware of commercial pressures toward a more service-based business model and prepare a business strategy to address it.

•

Expand technician training to accommodate as much experience as possible relevant to automation and electrification.

Jason Daly, global director, marketing and support, John Deere Construction & Forestry, said the best dealers are focuses on the issues of talent, succession and margin suppression, which can be addressed in part by your parts and service capabilities. “Dealers also have to have long term planning for talent, because you have to build a talent pool for the future. We have dealers who looking at unique ways to do this.”

“To me, this is a really exciting time in the industry,” Kirk concluded. “We’re seeing the dawn of a whole new era, akin to when the first Model T Fords ran off the production line. This will be very disruptive. There will be opportunities, challenges, job losses and push back. The winners will be those companies that can stay ahead of the curve.”

The OEM panel delved into a number of subjects, including how technology has changed the construction equipment business. Peter Mayr, president, Liebherr Construction Equipment, cautioned that in the midst of all the industry changes that it’s important “we as manufacturers stand with dealers and be open with them.”

There were a number of activities during the AED Summit that encouraged attendees to reconnect with old friends and new opportunities.

Added Roy: “Disruption is coming. We’re having discussions with our dealers around the talent that we’re going to have to have, and how their organization is going to address it. While tech is an enabler, it’s still about people.”

NETWORKING

While talking with dealers, Equipment World heard of how the technician shortage is having pocket book impacts today. One dealer told us about having put more than $200,000 worth of trade-in machines off to one side because his technicians didn’t have the time to get them ready for sale.

It also goes beyond technicians into the broader dealership workforce. Dealers are also scrambling for sales, training and parts counter people. In addition, they are looking at adding more tech and data savvy people.

For others, developing a succession plan is front and foremost, as is developing ways to take advantage of today’s technology as a way to foster communication and comraderie between branches. And how to profitably handle the rental juggernaut is a continuing concern.

MANUFACTURERS AND DEALERS

What do manufacturers look for when considering adding or keeping dealers in their network? That question was posed during the Summit at the OEM panel during the opening general session.

Mike Ballweber, senior vice president-commercial business, Doosan Bobcat, told dealers during the panel: “I watch how their people are trained to interact with customers in all aspects, from the parts counter to sales.”

Phil Kelliher, Caterpillar vice president, Americas Distribution Services Division, added: “The leading dealers take on the tech recruiting problem themselves and engage local government and schools. Every dealer needs to think about how to do this because techs are a key source of revenues.”

Beyond fleet management will be site management, Roy said. “That will be a core competency with dealers.

It’s not just electric machines, it’s how they work together. I see the dealer role in helping that work on jobsites. It’s coming fast, and we have to learn quickly to help dealers understand their role.”

Despite coming changes or the size of the dealer, said Kelliher, “if a dealer is performing well, they will be fine. Some of our smaller dealers are among our best.”

And realize that observation is a key in meeting customer needs, Ballweber said. “There’s a lot of value in just watching customer work. Sometimes they don’t know what they need and you can understand unmet needs through observation.”

“At the end of the day, it’s still about face-to-face,” Mayr said.

“I still believe in talking with customers; we are humans who want to interact with others.”

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AED Summit/CONDEX helps us make connections, strengthen our existing relationships, gain valuable insights that we can use to generate content

S

Greg Heckart | Editor | Construction Publications Inc. taff members at Construction Publications Inc. (CPI) recently had a discussion about how many AED Summits they have each attended throughout the years. They never came up with an exact total but determined that it was a high number. They also agreed that attending is well worth the investment.

“We were a supporting publication this year, and we were very happy to have that designation,” said President Chuck Parks, who has attended nearly 40 Summits. “I have attended for many years and always look forward to it.

My father and grandfather both attended when they each served as president of Construction Publications. Each time is just as fun and worthwhile as the first, because there is always something new. What I enjoy most is the interaction with friends, old and new. AED remains a highlight, no matter the venue, because it’s all about the people and how we can work together to make the construction and equipment industries better.”

Construction Publications is a unique, niche-oriented company. Its specialty is working with heavy equipment distributors to produce content to help them educate their customers and promote their products and services.

In the past, the main focus was print materials; however, during the last decade, CPI has embraced video and digital content for use on distributors’ websites and social media platforms.

“The content focus is on more than products and other articles related to the distributors and the manufacturers they represent,” said Editor Greg Heckart. “Our goals at Construction Publications include providing informative articles about the construction and mining industries that readers and viewers can use to better understand how topics, such as regulations, affect their business. Hopefully, these materials provide insights into ways to increase production, efficiency and profitability. The educational presentations at AED Summit provide excellent topics for us to do that.”

Greg said that one of the things he and his co-workers like best about the education sessions is the timeliness of

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the topics. Another is that although the seminars are geared toward equipment dealers, many of them are relevant to the end users. They are excellent resources for the content CPI produces, which means AED can expand its reach as media outlets, like CPI, share the information provided.

“An example would be ‘Going Mobile: Leveraging Mobile Technology Within Your Operation,’” he pointed out. “This 90-minute session provided insight into why companies should consider adopting technology as well as proper steps to determine best practices of research, implementation and monitoring.

It’s definitely a current topic for us to consider bringing to our readers and viewers.

“I also appreciate how approachable the presenters are,” he continued. “After the mobile technology session, I spoke briefly with Damon Haber about following up for additional information. These industryexpert presenters are valuable resources and contacts for future articles.”

Writer/Photographer Josh Sandin had a similar experience when he attended the “Profitability of Hiring Diversity” presentation.

“I was excited to attend this session because the shortage of skilled workers is a huge issue right now in the industry, and one that we have consistently covered from many angles,” Josh explained. “Adrianna Troilo gave a very impressive presentation with excellent information that I hadn’t heard before. Plus, she provided answers to some tough questions from the audience. Afterward, she spoke with me for about 10 minutes, and we exchanged information so we could set up a future story. That level of access is often difficult to get, but I’ve found that it’s common at AED.” Another seminar, “Activating Digital Marketing Tactics to Drive Your Business Forward,” identified various types and formats through which distributors can share digital content. The presenters offered practical tips for optimizing websites and email, as well as best practices for establishing professional profiles among staff.

“During the past year, CPI has taken steps to bring itself and its customers further into the digital realm, including social media,” said Production Manager Tina Lampe. “Educational sessions like this help CPI gain new insights that can be employed in our own practices and also validate the information we’ve provided to our customers to help them better understand how

digital marketing could affect and be beneficial to their businesses.”

MEETI N G O L D FR I EN D S, MA K I N G N EW O N ES

Like AED, Construction Publications has a long, rich history. Last year marked its 70th anniversary. CPI has worked continuously with some of its existing customers for 50 years or longer, nearly all of whom are members of AED and attend the Summit.

The annual show is great way for CPI staff to reconnect with old friends. Sometimes appointments are preset, or, in other instances, conversations happen as the result of bumping into each other on the CONDEX show floor or in the hallways between meetings.

Founded in 1948 by Charles E. Parks Sr., CPI recently brought a fourth generation of the family-owned business on board. Charles’ great-grandson and Chuck’s son, Charles Parks IV, or Charlie, is now writer/photographer for CPI. This year was his second time attending AED Summit/CONDEX. “CONDEX provides a great opportunity to meet a wide variety of vendors that offer innovative and unique solutions,” said Charlie. “Face-to-face interactions at the March 2019 | Construction Equipment Distribution | www.cedmag.com | 43

booths and hospitality suites build, develop and strengthen relationships. The classroom sessions offer insight on a diverse range of topics, from leadership to idle time, that could easily be implemented into any business strategy for the construction industry.”

Chuck added that AED Summit is unique for CPI because staff members can travel to one location and meet with a majority of his firm’s customers during a two-day period.

“It allows us to show them our latest ideas and plan content for the year,” Chuck said. “At the same time, it affords us the chance to get to know potential new clients.

During Summit, our staff talked with more than 120 manufacturer representatives about how we can help them capture the ‘voice of the customer.’ That’s a significant number of people in a short amount of time. Opportunities such as this are rare, and that makes AED Summit a great event for us to attend.”

VA LU A BL E RE SOUR CES

AED Summit and CONDEX are obviously valuable for companies that are engaged in equipment sales and rentals.

It helps them become more well-rounded dealers and distributors so that they can better serve the end users of their machinery.

So, what is the value for supporting publications such as CPI? For starters, AED Summit is a great way for CPI to plug itself into a significant sector of the industry. While it has long-standing relationships with many of the attendees, the majority of the conversations it has during the course of the years are with end users and manufacturers.

“The sessions and speakers really help us to develop a better understanding of the total picture,” said Josh. “They focus on a lot of current topics but address them from the distributors’ points of view. To get that insight and add it to the weekly dialogue that we have with operators and construction business owners is valuable. The time we spend at Summit/CONDEX provides an additional perspective that adds to a more complete picture of the equipment industry.”

That frame of reference is factored into CPI’s marketing efforts as well as the informative articles it produces for end users.

“The conversations we have and the educational seminars we attend at AED Summit/CONDEX are very insightful,” said Greg. “Knowledge gained about the construction industry can be turned into valuable content that businesses can use in their decision-making processes as they consider ways to recruit future employees, implement the latest technology, employ new practices and more. It’s a terrific resource of information that we can use throughout the year.”

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T H E G R E AT RECESSION LESSONS LEARNED FOR DISTRIBUTORS

A U T HO R : P e t e r G re g o r y, We l l s F a rg o E q u i p m e n t F i n a n ce , National Manager for the C o n s t r u ct i o n M a n u f a ct u re r a n d De a l e r S e r v i ce s G ro u p

Peter Gregory has worked in construction equipment finance for 29 years. He is a senior vice president and national manager for Wells Fargo Equipment Finance â&#x20AC;&#x201D; Construction Manufacturer and Dealer Services Group.

Email him at Peter.D.Gregory@wellsfargo.com. Opinions expressed in this article are general and not intended to provide specific advice or recommendations for any individual or association. Contact your banker, attorney, accountant, or tax advisor with regard to your individual situation. The authorâ&#x20AC;&#x2122;s opinions do not necessarily reflect those of Wells Fargo Equipment Finance or any other Wells Fargo entity.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 45

F

or many of us in the construction industry during the Great Recession, it seemed like the pain would never end. The thought of good times was nowhere on our radar. However, good times have returned, and many people think that they will continue without end. But like anything else in life, times change; and there are lessons to be learned from our past.

The U.S. is currently approaching the longest period of economic expansion on record. While I am not predicting a recession, the question is not if one will come, but when. History shows that recession always does.

For this article, I thought that it might be

helpful to look back on some actual distributor situations that Wells Fargo handled during the Great Recession and pass on lessons we

learned from companies of varying revenue sizes. To do this, I contacted senior leaders in our Equipment Finance Portfolio Group, and others who weathered the recession storm.

Generally speaking, the Great Recession began in December 2007 and ended in June 2009. It descended on us faster than most expected and lasted longer than prior recessions that many business owners had experienced during their careers. The 1990 and 2001 recessions each lasted eight months. Due to the length and severity of the most-recent recession, many business owners did not react quickly enough to avoid some major issues that made the difference between success and failure. Some financial and operational decisions that could have helped were implemented too late.

D ECISIO N S O N MAJ O R EXPEN SES •

MONITORING HUMAN CAPITAL — this is a clear measure to pinpoint for review, but hard for an owner to adjust. Loyal owners are reluctant to layoff longtime employees. Also, gauging how many people are needed to withstand a slowdown is not an exact science. The risk: You could lose quality employees whom you will need when times turn around.

•

CONSOLIDATING LOCATIONS — If a location is underperforming and significant savings can be achieved, this is another difficult measure for owners to consider during tough times. They want to have their equipment and product services available in as many locations as possible to serve customers and increase their base. Manufacturers also often want distributors to offer their products as widely as possible. Some dealer agreements also may include a set number of sales locations.

•

RETAINING EQUIPMENT — There is a saying, “Your first loss is your best loss.” Many dealers held on to equipment thinking that values would rebound. In many cases, they actually fell, and losses increased.

A study, conducted in September 2009 by IHS Global Insights for the Associated Equipment Distributors and Association of Equipment Manufacturers, painted a bleak picture: •

Over the course of the recession, the construction equipment industry shed 37 percent of its workforce. By comparison, auto manufacturing and dealership jobs were down by 16 percent, while job losses in the finance and insurance industry amount to 6 percent of their workforce.

•

Construction equipment spending fell by more than 50 percent compared to its peak in 2006.

•

Economic output of the equipment industry — including manufacturing, distribution and maintenance — contracted by nearly 40 percent and resulted in the loss of approximately 550,000 jobs. That’s 8 percent of all jobs lost since the start of the recession.

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below 100 percent, it begins to erode the profit from equipment sales. Generally, a ratio of less than 80 percent is cause for concern. At this point, cutting costs should be entertained — whether it be employee, location, carrying costs of inventory, or interest expense.

In hindsight, it is easy to say that owners should have moved sooner to reduce headcount and locations.

However, while you are in the middle of a situation, you rarely have the luxury of knowing outcomes in advance.

Equipment levels were also a major driver for most dealers — whether it was inventory for sale or rental fleet units. There are many issues that can help create a debt-to-asset imbalance: •

When equipment assets are rented, there is a need to be disciplined in applying a large portion of rental payments received against the loan principal balance. Failure to do so during the recession frequently resulted in some dealers being upside down on the asset when it was sold.

•

If machine inventory secures a borrowing-base loan structure, and is based on net book value (NBV), failure to properly depreciate carries a similar risk. Particularly when running a rent-tosell model, be sure that your depreciation method adequately reflects the market conditions you are in. Many dealers use the greater of straightline depreciation or 80 percent of rents (or a different percentage if standard to your collateral type). During the great recession, some dealers who relied solely on the percentage of rents to depreciate their inventory found themselves with NBVs higher than appraised value on assets due to slow rental activity. With the appraised values lower, some borrowing bases were in over-advance situations that led to defaults and liquidity issues.

•

When inventory that has a lien is sold, be sure to exclude the receivable from your revolving line borrowing base. If you don’t exclude it, you will be borrowing a second time, with only one set of proceeds to pay off the inventory loan and the amount borrowed on the accounts receivable.

Some operational best practices to keep in mind: •

MONITOR ABSORPTION — Absorption is the ratio of the gross profit on rental, plus the gross profit on parts and service, divided by operating expenses, including interest. If this ratio is over 100 percent, then 100 percent of gross profit from sales of equipment goes straight to the bottom-line cash flow. If it drops

•

MONITOR THE COST OF THE RENTAL FLEET — If assets begin to require maintenance too frequently to be covered by the rental return, consider selling them.

•

MONITOR RENTAL FLEET UTILIZATION — While utilization calculations vary, generally, unit utilization of between 70 percent and 80 percent is optimal, while a measure below 65 percent, may be of concern. While one or two months below this threshold may not be a problem, a long-term, low-utilization rate means the interest expense, insurance and storage may be costing more than potential future lost rentals. Utilization is measured in many different ways — days rented per month, rental rates to historical cost, and rental rates to book value. However utilization is monitored, it must always be considered when determining whether or not to cull fleet.

Asset-backed lending structures and equipment lines of credit often have structures that allow the lender to monitor performance on a regular, typically quarterly basis. While these structures help protect the lender, they also provide a benchmark for dealers that may help them get through a downturn. Some of the structural elements can include regular equipment appraisals and financial covenants.

Examples of financial covenants include overall balance sheet leverage, and cash flow coverage. The appraisals help set equipment valuations against which the dealer can borrow, help determine advance rates, and help keep debt levels due on inventory manageable.

Another big factor during the Great product concentration. If a dealership on one product line or industry and had equipment, it may have suffered more dealership that was more diversified industries.

Recession was focused solely single-purpose losses than a across varied

It has been said that the Great Recession was an oncein-a-lifetime event, but recessions are inevitable. Learning from the past, and continuously practicing sound and prudent business practices, may help your company get through the next one more easily than the last.

March 2019 | Construction Equipment Distribution | www.cedmag.com | 47

A DVERTI S E RS ’ INDEX

ASV, LLC 23

asvi.com/AED CDK Global 2

cdkglobal.com/us/construction e-Emphasys Technologies Inc. 1

www.e-emphasys.com SANY America, Inc. 8

www.sanyamerica.com Glynn General Corporation 48

www.glynngeneral.com SmartEquip 30

www.smartequip.com DIS Corporation 32-33

www.discorp.com

Glynn General Corporation Delivers “Tailor-Made” Extended Service Coverage Programs Coverage Types/Coverage Terms ● Extended service protection plans for New and Used Equipment ● Powertrain, Powertrain plus Hydraulics and Full Machine ● Used Equipment Terms available from 3 months (375 hours) to 2 years (2,500 hours) ● New Equipment Terms available from 2 years (2,000 hours) to 5 years (7,500 hours) ● Competitive Premiums/Fair and Reasonable Claims Reimbursement ● Insurer AmTrust International Loss damage waiver and physical damage insurance programs available.

171 Follins Lane St. Simons Island, Georgia 31522 Tel: 912-638-4320 www.glynngeneral.com

48 | www.cedmag.com | Construction Equipment Distribution | March 2019

Midwest/East Territory Eric Strickland Tel: 912-577-9799 Florida/Georgia/Alabama Slade Rowland Tel: 912-222-4268 Central/West Territory Michael Raley Tel: 817-301-7984

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