Constequipdist december 2015 by Associated Equipment Distributors

December 2015

CED

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

Selling Out of Rental vs. Selling Off the Rental Fleet n Good Company

A peek at midwest manufacturer Diamond Mowers

n Business Continuity Planning

Tips to create an emergency plan

n CONDEX 2016

A look at some

exhibitors at the upcoming event

More buyers from more places

means better results when you sell

ORLANDO, FL | FEB 15-19, 2016 Sell at the auction that attracts thousands of buyers from around the world, year after year. Every February, Ritchie Bros. hosts the premier global auction in Orlando, attracting thousands of competing buyers from around the world, in person and online. Don’t miss out – it’s bigger, it’s better, and nothing else comes close. Get the best results with Ritchie Bros. – sell your equipment and trucks at our upcoming Orlando auction.

For more information, call 863.420.9919 or visit Please visit us at AED Suite 8058

rbauction.com/Orlando

Please visit us in CONDEX Booth 500

At any one moment, approximately

660,000 DRIVERS

are using mobile devices on the road.

Texting while driving makes a driver

Reading a text takes a driver’s eyes off the road for about

TIMES

SECONDS

more likely to be involved in an accident.

the time it takes to drive the length of a football field at 55 mph.

You’re taking a risk every time you trust an employee or customer behind the wheel of one of your vehicles. You can reduce your chance of an accident by enforcing a zero-tolerance distracted driving policy.

Endorsed by

Sentry can help you develop this and other pro-active programs to enhance safety and manage costs. We’re more than insurance. Call 1-800-447-0633, option 1, to find out how you can get started with Sentry.

Please visit us in CONDEX Booth 401

This is a paid endorsement. Property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. 73-659

14000349 4/7/15

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CED Magazine | December 2015

vol. 81 no. 12

www.cedmag.com

>> FEATURES

24 Top Industry Trends Take a look at the biggest trends coming up for construction equipment.

30 Business

Continuity Planning Learn how to ensure an emergency doesn't bring your business to a halt.

U.S. Congressional Update The House of Representatives recently passed a new highway bill.

Oil Industry in Western Canada How changes in oil exports are affecting Western Canada.

Maximizing Profit Rental strategies that can help you get the most from your business.

Good Company Diamond Mowers focuses on customer service and quality products.

December 2015 | Construction Equipment Distribution | www.cedmag.com | 3

CED Magazine Director SARA SMITH ssmith@aednet.org

contents

Content, Layout, Design LocalLabs AED@locallabs.com

>>COLUMNS

>> EDITORIAL TEAM

>> FEATURED COLUMNISTS Rep. Joe Pitts: Representative for Pennsylvania's 16th district Codie Taylor: Senior Consultant at Bluesky Strategy Group Brian Rehg: Blue Stingray Steve Calechman: Journalist Ben Yates: Western Regional Manager for AED Jim Huntzinger: Chief Investment Officer at BOK Financial Corporation

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

CED Magazine | December 2015

vol. 81 no. 12

20 >> Washington Insider

Rep. Joe Pitts discusses America's complicated tax law.

34 >> Technology 101

Enterprise Resource Planning software for your business.

36 >> Regional Report

A grassroots effort to affect highway/infrastructure policy.

48 >> AED in Canada

New Liberal government to expand infrastructure spending.

56 >> Economic Report

A close examination of the oil industry.

62 >> 40 and Below

Brooke Tyler IV discusses his work in the family business.

64 >> Easy Wins

Making use of the holiday party.

>>PLUS

40 >> Condex 2016

Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org

Since 1920 Official Publication of

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

Some of the exhibitors that are gearing up to bring products and services to Washington, D.C.

Please visit us in CONDEX Booth 533

overbuilt

to be overworked. Find your attachments at www.geith.com 2905 Shawnee Industrial Way, Suwanee, GA 30024 T. 866-563-5890 F. 866-472-4950 E. ussales@geith.com Geith and the Geith logo are trademarks of Geith International Limited.

Please visit us at AED Suite 15122 & CONDEX Booth 514

>> CHAIRMAN’S PAGE

DON SHILLING

Communicating with the Living? Embracing the future is key for the construction equipment industry.

he other night I took my wife Kay to see a medium. You know, the gal with the poofy blonde hair that interprets the communications of the dead for people in the audience she has never met before? The contrast between now and then that night to me was quite evident. We drove into the parking lot of the arena and a guy with a flashlight is directing traffic, then into the arena where our tickets we bought online were scanned and we were shown to folding chairs. Candles were burning on the table on the stage but we were warned “cell phones off, no picture taking please.” The medium walked around us and “sensed” which person had a loved one from the dead who was trying to communicate with them. The following morning I was reflecting on the contrast I experienced the night before and was applying it to our businesses. We sell and service equipment that is out of “Star Wars” compared to when we first got in the business. Satellite communication between the machine in the field

and our office, GPS controls, diesel exhaust emissions cleaner than the air we breathe, onboard diagnostics and technicians with cell phones and Wi-Fi laptops. Then there is us (referring to the older than average people reading this article), the grayhaired CEO or managers of our companies trying to attract people to our industry to work for us the old-fashioned way. Newspaper ads, employment agencies, online job postings, maybe a help wanted ad posted on a bulletin board or in the bathroom of a local watering hole. Are we communicating with the dead or are we dead? We are behind the times. We are the flashlights and folding chairs in a tech world of instant communication and work collaboration pods. As an industry we have to bring the future of our industry to the young minds in our local grade schools today. I sit in meetings where all the old equipment guys bemoan the fact that they can’t find good people and how “we have to do something” or “AED needs to do

something” but then they go home and do nothing. We talk a good game. But until we get off our backside and take some of that fancy and sophisticated equipment over to the grade school and junior high school and start connecting with those young people, we will continue to operate with a shortage of personnel. Imagine how excited an 11-year-old might be to see GPS on a machine, to run an excavator or to witness video from a drone of construction machines at work. Do you think that visit from us might stick with them? That is our challenge: to show off what we have and then stand back as these young people get excited. So the poofy blond-haired medium can communicate with your past and passed work force and tell you how much they used to like to work for you, or you can skip the medium and go right to the grade-school classroom and show the young people how exciting our stuff can be! Your choice, time to show them we are alive!!! n

DON SHILLING is the Chairman of the Associated Equipment Distributors and the President of General Equipment & Supplies Inc.

THE AED FOUNDATION | AN AFFILIATE OF ASSOCIATED EQUIPMENT DISTRIBUTORS

>> OFFICERS

>> DIRECTORS

A. ROY KERN Chairman Equipment Corporation of America

GARY BRIDWELL Ditch Witch of Oklahoma

SONJA METZLER Ohio CAT

DENNIS VANDER MOLEN Vice Chairman Vermeer MidSouth, Inc.

TODD COFFEY Brandeis Machinery and Supply Co.

DAVID REILLY John Deere Construction & Forestry

JOHN D. CRUM Treasurer Wells Fargo Equipment Finance.

DR. DONALD M. CLAYCOMB State Technical College of Missouri

KENNETH SILVERMAN Volvo Construction Equipment

BOB HENDERSON President The AED Foundation

MIKE HAYES Komatsu America Corp.

ANTHONY FASSINO Caterpillar, Inc.

CHRISTOPHER PERA Immediate Past Chairman Tri-State Equipment Services DIANE BENCK AED Board Representative West Side Tractor Sales Co.

December 2015 | Construction Equipment Distribution | www.cedmag.com | 7

Event Spotlight NEW City, NEW Program!

2016 Financial/HR Symposium is right around the corner, register now and mark your calendars! Loews New Orleans Hotel Register today at bit.ly/symposiumhotel16 Mark your calendars for April 27-29.

Photo Credit: PentaxForums.com

Get Social with AED! Connect with AED on our new social media platforms.

Mention us on Twitter @AEDSocial Like us on Facebook @ Facebook.com/AEDSocial

Current events and news for the equipment distribution industry 10 » AED hp

16 » Industry Beat 22 » Data Trends 26 » Ready to Order

8 | www.cedmag.com | Construction Equipment Distribution | December 2015

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>> AED hp Introducing a New Location and Program — Register Now! 2016 Financial/HR Symposium

oin AED April 27-29 for our annual symposium in the exciting city of New Orleans, Louisiana! This year’s symposium will take place at the Loews New Orleans Hotel, and we are happy to announce that human resources will be included in the program as a separate track. Over the course of this day and half conference, attendees will have access to a variety of educational learning sessions with topics that include; next generation recruiting for technicians, legal must knows for financial executives, what to do if you get audited and more! Each year, attendees walkaway with an abundance of information to take back to their dealerships. Register today at bit.ly/2016aedsymposium and see what the buzz is about! Top Reasons to Attend: • LEARN - This annual symposium is designed to update financial and human resources professionals on important issues that impact their areas of responsibility. • INTERACT - Back by popular demand, our hour-and-fifteenminute collaboration room discussion! Don’t miss the opportunity to interact, talk, ask questions and have group discussions on industry-related issues and topics. • DEVELOP - Financial and human resource professionals will gain insight and industry-specific tools through our special educational sessions like revamping your employee handbook, an important economic update, discovering the top rental key performance indicators and more!

There are two ways to register for the Financial/HR Symposium: Register Online: Register you and your team online by visiting bit.ly/2016aedsymposium (link is case-sensitive). Register by phone: For more information and assistance, contact your regional manager today, 630-574-0650.

AED Foundation Celebrates 25th Anniversary The construction equipment distribution industry has come a long way in the 25 years since The AED Foundation was established, thanks in part to the foundation’s numerous initiatives to strengthen and improve the industry through the development of industry-specific professional education and workforce development programs. November kicked off the foundation’s annual campaign and through the support of investors, The AED Foundation can continue to expand and develop successful initiatives. The foundation’s educational programs include the accreditation of technical colleges, as well as the development of national standards for diesel technician programs. These standards, which were developed by working closely with those in the industry, indicate the skills that students should have mastered by the time they graduate from an AED-Accredited program. As part of its commitment to industry education, The AED

10 | www.cedmag.com | Construction Equipment Distribution | December 2015

Foundation also recently purchased a new learning management system (LMS) that is designed to offer members on-demand access to educational webinars and self-study courses. The new AED Foundation LMS will be available in 2016. Through the support of investors, we will be able to continue to expand and develop industry-specific professional education and workforce development programs. Please support our 25th Anniversary campaign by investing in the success of our industry via the Foundation’s initiatives. Invest today! Bit.ly/investaedf. For more information on The AED Foundation’s initiatives, or to invest, contact Rebecca Lintow at 630-468-5113 or rlintow@aednet.org.

>> AED hp Upcoming Product Support Webinars

Gearing Up to Sell Maintenance Agreements, Inspection Programs and Services Dec. 17; 10-11 a.m. CST Presented by Machinery Advisors Consortium This webinar will include a suggested step-by-step list of things to do in order to first prepare for selling more service, and then execute a solid strategy designed to sell more parts and service and feed leads to the sales department.

ngoing industry-specific education sets your dealer team apart and equips the front line with knowledge and tools to serve your customers – and improve your company’s profitability. Parts and service departments are an integral part of the dealership teams. To assist dealers, we have developed department specific webinars. Determining Your Parts & Service Revenue Potential & Market Share Dec. 10; 10-11 a.m. CST Presented by Machinery Advisors Consortium It’s time to do some easy numbercrunching and find out how much business you are really winning with your customers. This webinar will help you simplify

the approach to determine your parts and service revenue potential and your share of the total market.

Two ways to register: • Register online: bit.ly/aededucation (link is case sensitive) • By phone: If you would like more information or need assistance registering, please call an AED staff member at 630-574-0650.

Pre-Hiring Assessments for Service Technicians AED Technical Assessments provide you with a convenient online tool to evaluate entry-level or experienced technicians’ core technical knowledge in key subject areas. Available in both English and Spanish, AED Technical Assessments are priced at $50 per test for AED members and $150 for nonAED members. Once your company’s online assessments admin area is set up by a Foundation staff member, tests can be ordered conveniently by credit card. Benefits • Evaluate prospective technicians’ core knowledge prior to hiring. • Identify areas where current technicians can benefit from additional training. • Manage the entire assessments process online, from purchase to results and benchmarking, via your individual company password-protected online admin area. • Deploy technical assessments and receive and analyze results online quickly and conveniently. • All results are archived in AED’s assessments system and can be easily retrieved at any time. • Results and benchmarking reports are created with userselected criteria as to report types, time ranges and types of benchmarking data. • Compare the results of your employees to one another, to collective company results, to the collective results of other dealers utilizing assessments, or to students graduating from

two-year equipment technology college degree programs. The Assessment • The assessment is available in both English and Spanish. • The assessment questions were developed by an equipment industry task force of 24 technical experts representing AED dealers, equipment manufacturers and AED Accredited technical colleges nationwide. • The test is fully aligned with AED National Construction Equipment Technical Standards that are now in their eighth edition. The standards are updated regularly via equipment industry task forces. • The 160 questions in the 120-minute timed assessment evaluate core knowledge in the areas of diesel engines, power trains, electric/electronics, A/C and heating, hydraulics/ hydrostatics and safety/administration. • Students receive a score in each of the above six areas, as well as an overall score. • In your individual online admin area, you can order assessments, receive and assign individual test-taker usernames/passwords, deliver the test, receive results reports and create performance benchmarking reports. We encourage you to explore how AED Technical Assessments can benefit your technician hiring and employee evaluation processes. For more information, visit http:// aedfoundation.org/faqs/. December 2015 | Construction Equipment Distribution | www.cedmag.com | 11

>> AED hp Technician Recruitment Tools From The AED Foundation The AED Foundation has made it easier than ever to obtain AED technician recruitment materials. Just visit www.aedfoundation.org, mouse-over “Recruitment” in the page top menu, then click on “Dealer Resources.”

Student Career Information Center Refer students who are exploring career options to this website: www.aedfoundation.org/careers

Service Technician Position Description For the recruitment of high-school and post-secondary students into a technician career path.

Pre-Employment Technical Assessments (Fee applies - contact us for information) Helps you assess core technical knowledge of technician applicants, or areas where additional training is needed.

There, you will find a number of recruitment items that are available to you for download at no charge. Don’t recreate the wheel; take advantage of these AED recruitment member resources.

Questions for Interviewing Technician Job Applicants Resource for you to help assess such concerns as work ethic, ability to work as part of the team, personal characteristics, receptivity to supervision, career goals and employment history.

AED Accreditation Benefits for Technical College Diesel/Equipment Programs Twelve good reasons why equipment dealers and technical schools should work toward AED Accreditation

AED Equipment Technician Career Path Poster

National Equipment Industry Technical Standards

Refer students who are exploring career options to this “picture” of opportunities for technicians. This poster gives students a good visual of the career opportunities for dealer equipment technicians.

AED Foundation Publication: “Standards for Construction Equipment Technology,” developed by the industry. This is an ongoing initiative sponsored by the AED Foundation Technical Training Committee.

Student Recruitment Brochures – Two Versions

Top 10 Lists – Recruiting Entry-Level Technicians

Color PDF file downloads; just take the electronic files to your local printing shop: “Careers in Construction Equipment and Distribution” and “Building a Rewarding Career” (Dealer Technician) brochures.

Reference tools for local recruitment efforts: “Top 10 Ways Dealers Can Grow Their Own Technicians (PDF)” and “Top 10 Needs of Schools With Equipment Technical Programs (PDF).”

Recruitment Guidebook for AED Member Dealers Guidebook to help develop local strategies and tactics that are effective in recruiting young people/students for careers as equipment technicians.

Student Recruitment Program Activity Scorecards Rate your strategies and tactics in the area of student recruitment; get ideas for new initiatives: “AED Dealer Student Recruitment Scorecard (PDF)” and “Technical School Student Recruitment Scorecard (PDF).”

12 | www.cedmag.com | Construction Equipment Distribution | December 2015

Dealer Employment and Loan Scholarship Repayment Agreement Form Agreement defining both dealer and student obligations as to educational assistance provided by dealer.

Dealer/Student – Technical School Internship Agreement Form Agreement defining dealer, student and school obligations as to student internships at equipment dealers.

“Having a lender that understands this industry is important — to me and my customers.”

equipment Finance Inventory and fleet rental finance programs

Loans and leases for capital asset acquisition

The right equipment finance programs are critical to helping you sell equipment. So talk to an equipment finance company that has experience in and a commitment to the construction industry — one that has the stability and flexibility to support you through all economic cycles. Not only do we know the difference between a dozer and a grader, but we understand that making the purchase process quick and easy for your customers is essential. Whether you sell equipment in the U.S., Canada, or both, we can help.

Manufacturer subsidy programs

To learn more about what the Wells Fargo Equipment Finance team can do for you, start a conversation with us today by calling Sidney Sexson at 480-724-3407.

Retail finance programs

wellsfargo.com/construction

Please visit us at AED Suite 16028

© 2015 Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries. Equipment financing transactions are provided in Canada by Wells Fargo Equipment Finance Company. Wells Fargo Equipment Finance Company is associated with Wells Fargo & Company, a company that is not regulated as a financial institution, a bank holding company or an insurance company in Canada. WCS-1237914

>> AED hp

Don’t Miss It Mark Your Calendar For details and to register, visit the AED online store at aednet.org or call 800-388-0650. January 19-22 Summit & CONDEX Gaylord National Resort, Washington, D.C.

June 8-9* Washington Fly-In Washington, D.C.

April 27-29 2016 Financial Symposium Loews Hotel, New Orleans, La.

August 23-26 Leadership Conference Las Vegas, Nevada

September 14-16 Executive Forum TBD.

*These dates may change depending on the United States Congressional Calendar, which will be out in late December or January

>> FINANCIAL MATTERS

MICHAEL RIBICH

Starting an Employee Retirement Plan Ensure better employee futures and compliance with fiduciary responsibilities.

tarting a retirement plan for employees can benefit businesses in a number of ways. Several options are available when it comes to designing a defined-contribution plan. Using the following five strategies can help businesses craft and optimize retirement plans. Align plan with company goals The best defined-contribution plans can be extremely beneficial to the companies that sponsor them. One way to ensure success is to make sure that the plan's design is in line with the company's goals and philosophy. Successful plans are in sync with a company’s current and future demographics, business objectives and overall philosophy. Paying attention to the demographics of the workforce is also key. Opt for automatic features Designing a smart defined-contribution plan doesn't necessarily mean that employees will take advantage of it. Automatic features can help reluctant employees overcome their timidity.

Many employees need encouragement to invest in their futures, especially younger workers who do not yet understand the benefits of starting early. Automatic features, such as auto-enrollment into the plan and auto-escalation once they are in the plan, help employees overcome inertia and are now becoming the new norm. Build an investment menu for success Developing and maintaining the plan's Investment Policy Statement is essential. The IPS addresses a variety of important issues, including investment objectives, roles and responsibilities of plan fiduciaries, and guidelines for choosing, monitoring and changing investment options. I recommend offering a suite of asset-allocation funds as your qualified default investment alternative QDIA and fewer core fund options to reduce choice paralysis and the risk of exposure overlap and redundancy in the portfolio.

Engage employees from the outset It's not enough to just automatically enroll employees in a defined-contribution plan without giving them the tools they need to understand and navigate their investment options. Personalized outreach can make a difference in employee participation. Once in the plan, participants need guidance. Personalized communications can help to equip participants in this effort. Benchmark the plan A period review of the plan and its progress can provide valuable insight on what's working and what isn't. Once the plan sponsor and its adviser have put a plan in place to meet the employer's and employees' needs, it’s critical to periodically benchmark the plan to check progress against the company’s success metrics, as well as against plans of similar size, with similar demographics and within similar industries. n

MICHAEL RIBICH is an experienced retirement-benefits consultant with the J&R Group at Merrill Lynch. For more information on smart retirement-plan designs, contact the J&R Group at Merrill Lynch at 888-296-8387 or visit www.ml.com.

14 | www.cedmag.com | Construction Equipment Distribution | December 2015

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>> INDUSTRY BEAT Leadership Changes Underway at Terex John Garrison Jr. was named CEO and president of Terex Corp. on Nov. 2 when he also became a member of the board of directors. Garrison will succeed outgoing CEO Ronald DeFeo, who will continue to serve as executive chairman of the company until Dec. 31, at which time he will be a consultant for Terex until Dec. 31, 2016. “John is a proven leader with considerable experience across a variety of industries," Terex lead director David Sachs said. "The board considered a highly qualified pool of outstanding candidates and we strongly believe that John is the right person to lead Terex and Konecranes Terex into the future. We are grateful for Ron’s many contributions to Terex over the years and his leadership through both good and bad economic cycles in continuing to improve the company into the premier company it is today. We are pleased that Ron will be available through the leadership transition.” As DeFeo prepares to step down, he said the company is being

left in good hands. “I am proud of the company Terex has become in my 23 years as Terex’s leader. With my planned retirement, this day was inevitable and I am confident that John will be able to continue to create value for our shareholders and the shareholders of Konecranes Terex,” DeFeo said.

4 Rivers Equipment GM Reflects on Industry Trends John Shearer, 4 Rivers Equipment's general manager for construction and forestry, recently recalled in an interview with Equipment Reporter how he received his start as a technician in Pennsylvania at a John Deere Dealership in the early 1980s. From there, Shearer observed and learned how the dealership ran, working closely with the chief financial officer. He later was offered a position with a John Deere Dealership in Virginia where he became vice president of product support in the agriculture and construction and forestry divisions. “We grew the product support business to over $140 million in sales by 2013,” Shearer said. He was then asked to be general manager of the construction and forestry division of 4 Rivers Equipment when the group expanded into New Mexico and Texas. Shearer has seen some notable changes within the industry. "New equipment sales were the only profit center in the dealership. All other departments existed to support the efforts of the sales department," he said. "The other major change has been the shift to more services offered by the dealerships. We now offer a multitude of financial options to the customer to include leasing,

rentals, Power by the Hour, as well as the traditional installment loan.” Shearer said it is an exciting time to work in a dealership as technology grows and changes. He also noted, however, that obstacles have emerged in the equipment industry, the biggest being an inability to attract good people and to sell this as a career to younger people. “Right now the biggest things holding our industry back are the uncertainty in our government," Shearer said. "We need some long-term planning by our elected officials. Bonus depreciation is a good plan if you know it's there. No one can do any purchase and tax planning when they only reinstate the program in the last two weeks of the year. This needs to have a long-term solution. "Our infrastructure is crumbling and we need to find the funding for improvement as soon as possible. Businesses across the country are being affected by poor roads and bridges needed to transport goods efficiently to the end user. We also need an energy policy that bridges the gap between what we have now and a cleaner, more independent energy supply.” 4 Rivers Equipment has been a member of AED since 1991.

>> INDUSTRY BEAT Nortrax Promotes Rugeroni to Vice President for Canadian Operations Nortrax is promoting longtime executive Michael Rugeroni to vice president of Nortrax Canada. Rugeroni has worked in the heavy equipment industry for 28 years, including his most recent tenure as vice president of sales and marketing for all of Nortrax's operations. He has also worked as vice president of sales and marketing for Nortrax Canada. “Michael’s past responsibilities, energy, enthusiasm, positive outlook, strong

teamwork and demonstrated leadership capabilities have prepared him well for this very important role within our company,” President and CEO Tim Murphy said. “As part of our senior leadership team, his contributions and input remain highly visible and valued. He will lead our Canadian teammates well.” Rugeroni's Canadian connection extends to the early days of his business training. In addition to his previous

Wacker Neuson Trench Roller Wins Magazine Editor's Choice Award Rental Magazine has awarded Wacker Neuson its 2015 Editor's Choice Award for the RTxSC3 trench roller, the company recently announced. The RTxSC3 is a remotecontrol roller that hit the market this year. It has a third receiving eye on top that allows operators outside the trench to more effectively steer the machine and avoid obstacles like cross bars. The roller was chosen by a team of editors from Rental Magazine and forconstructionpros.com, using criteria that included overall interest generated, innovation and user feedback.

marketing and sales position with Nortrax Canada, Rugeroni earned his bachelor's degree from the University of Western Ontario. The scope of his new job will cover Nortrax's interests in Quebec, Ontario, Newfoundland and Labrador, which includes 21 sales locations. Nortrax is a subsidiary of John Deere and sells the company's construction and forestry equipment in the northeastern United States and Canada.

HydrauliCircuit Names Hickman Sales and Marketing Manager Greg Hickman will replace Bobby Hudson as sales and marketing manager at HydrauliCircuit, the company said. HydrauliCircuit President Navin Baliga said Hickman brings over two decades of sales experience to his position, as well as industry expertise. Hudson recently retired after 15 years with HydrauliCircuit and four decades in the hydraulics industry overall.

Accruit Strengthens Commitment to Innovation Accruit LLC, the nation’s leading provider of qualified intermediary (QI) services and 1031 like-kind exchange (LKE) program solutions, recently announced the addition of Dan Green as director of technology and operations. Green is a technical leader with 18 years of experience in software development, Agile coaching and change facilitation. He holds a bachelor's degree from the University of Colorado at Boulder, and

maintains the certification of Scrum Master, Certified Scaled Agile Framework Consultant, GE Six Sigma Green Belt and GE Change Acceleration Process (CAP) Facilitator. "We’re thrilled to have Dan on board. His broad technical experience and creative energy will further Accruit’s evolving strategy as a technology leader in the QI industry," Chief Operating Officer Karen Kemerling said.

Green will further Accruit's technology strategy for both software applications and the corresponding Microsoft Azure infrastructure environment, manage and evolve security compliance, and oversee technical third party partners. When asked about his new role, Green replied, "It's very exciting. I get to bring my passion for software leadership to a company dedicated to technology innovation in the industry. It’s a win-win."

December 2015 | Construction Equipment Distribution | www.cedmag.com | 17

>> INDUSTRY BEAT AEM Announces Winners of ‘I Make America’ Awards The Association of Equipment Manufacturers (AEM) announced the 2015 recipients of its grassroots advocacy awards for companies that have reached the highest level of activity in its I Make America campaign. A new Legacy longevity award joins the campaign’s Pillar of the Industry recognition program. I Make America is AEM’s signature program to build grassroots support and advocate for pro-manufacturing policies that create and sustain jobs across America. “It’s more important than ever that our elected officials understand the critical importance of our industry to economic

prosperity and quality of life across America, and these companies have really stepped up in their communities,” said Dennis Slater, AEM president. “We appreciate their hard work throughout the year, and this is our chance to publicly acknowledge their outstanding efforts.” Winners have achieved Gold status for their extensive I Make America activities, which can include significant employee involvement; outreach to state, local and federal legislators; and promoting campaign sign-ups at trade shows and with allied trade associations.

Inaugural Legacy Award Winners n Caterpillar Inc. n International Construction Equipment Inc. A total of 37 companies received Pillar of the Industry awards for achieving or maintaining I Make America Gold status during the year. To see the whole list or for more information about the I Make America campaign, visit www. imakeamerica.com.

Knowles Joins GS Equipment’s Jacksonville Branch

18 || www.cedmag.com www.cedmag.com| Construction | Construction Equipment Equipment Distribution Distribution | December | December 2015 2015

GS Equipment has hired Mike Knowles as a sales representative at its Jacksonville, Florida, branch. Knowles brings two decades of experience as a sales rep and technician with a number of agricultural and construction equipment companies to his new position with GS. "We are happy to welcome Mike to GS Equipment," GS President Ray Ferwerda Jr. said. "His 20 years of experience in sales and support make him an excellent addition to our team. We look forward to seeing the contributions he will be making." Ferwerda started GS Equipment with his father in 1960. The company has grown from a single branch to six branches serving all of Florida with building and farming equipment. Knowles will represent these brands in the Jacksonville area, including Gradall, Kaiser, Kawasaki and Kobelco.

>> INDUSTRY BEAT RDO Equipment Snags Sakai Dealer Award RDO Equipment Co. recently was named “Sakai America Dealer of the Year" by Japan's Sakai Heavy Industries. The North Dakota-based, family-run business operates 76 dealerships in 10 states. It represents Sakai in Central Texas, Arizona and Southern California. “We are pleased to be the Sakai dealer of the year and appreciate the recognition," RDO Vice President Daryl Shelton said. "Sakai complements our overall product offering and has been a contributor to our rental growth and market strategy. Sakai

makes reliable products that are well-received by our customers who purchase and/or rent for their fleets.” The award was based on metrics that include both volume and total sales. Sakai also recognized four top regional dealers in the Northeast, West, Midwest and Southeast. Denver Weinstiger, vice president of Sakai sales and product support, said the dealers are the ones who deserve all the credit. “Sakai has had an outstanding year thanks to the hard work and personal commitment of our dealers,” he said.

Cummins Pledges to Improve Fuel Efficiency, Curb Carbon Emissions Noting fuel efficiency is increasingly at the top of customers' list of considerations when buying a new truck, Cummins has released a set of environmental goals in the wake of its 76,000-mile, 36-city Redefining Efficiency Tour. The tour took a caravan of five new Cummins trucks designed for increased fuel efficiency around the country to trade shows and other stops where customers examined and gave feedback on the new products. This year the company disclosed to the Carbon Disclosure Project that lifetime emissions from the more than 1 million engines sold in 2014 alone would send 914 million metric tons of carbon into

the atmosphere over their lifetimes. The company has set a goal of reducing these emissions annually by 3.5 million tons by 2020, which it said would also include using 1.6 billion fewer gallons of gas and save customers billions of dollars. The company also pledged to continue collaborating with university, nonprofit and government organizations to

research and develop cleaner, more efficient technologies. Cummins will pursue these goals by working with 20 percent of its customer base on a one-on-one basis over the next five years to craft more efficient engines suited to particular needs. Cummins has volunteered emissions information to the Carbon Disclosure Project for the past decade.

KOBELCO Adds Gomez To Bolster Warranty Support Construction machinery manufacturer KOBELCO has hired Yasmille Gomez as a warranty claims assistant. “A superior warranty program begins with a dedicated and experienced team to support it,” warranty manager Kris Bojarzin said. “The addition of Yasmille highlights KOBELCO’s commitment to continuously provide the best warranty support in the business. We are excited to welcome her to the KOBELCO USA team.” Gomez will worth with KOBELCO's North American and Latin American branches to conduct online employee training, maintain warranty databases and streamline the claim-reporting process.

December 2015 | Construction Equipment Distribution | www.cedmag.com | 19

>> FROM THE HILL

REP. JOE PITTS

Problems With United States' Over-Complicated Tax Laws Current U.S. federal tax laws are over 10 million words long

Our tax laws are so complicated that it would take the average college student 15 days to read them, and 20,000 single-spaced pages to print them.

ow long is ten million words? The longest novel, according to "The Guinness Book of World Records," is Marcel Proust’s “A la Recherche de Temps Perdu,” which is 1.5 million words long. The King James Bible contains only 774,746 words. Reading our federal tax laws would take more than four times longer than reading both of those books. Our tax laws are so complicated that it would take the average college student 15 days to read them, and 20,000 single-spaced pages to print them. No wonder it takes Americans a total of 7.6 billion hours to do their taxes—the equivalent of 867,084 years. That is more than 11,000 lifetimes per year! This month, federal tax laws reached their ten-millionth word. Every single change to our tax code makes compliance that much harder for American people with better things to do. Every dime that the government takes out of the economy means less investment, less spending, less saving and less in charitable donations. Every minute spent on tax compliance is a minute of time that could have been used for work, for volunteering or for any number of more useful activities. Americans, in effect, work over one day per week for free. Why would anyone want a tax code so complicated, so difficult to implement and to enforce? Tax lawyers probably like it, because Americans spend another $31 billion on compliance costs. But even more so, it is politicians and special interests who benefit from such a system. Right now, federal tax revenues are at record highs: Americans gave a staggering $3.1 trillion to the federal government this year, and,

according to the White House, this number will only skyrocket to $3.5 trillion next year. Federal tax revenue is larger than the fifthlargest economy on Earth. But even this astonishing quantity of money is not enough for Washington. The federal government will borrow an additional $400 billion this year, adding to our $18.4 trillion in national debt. The proposition that we should spend only the $3.1 trillion we take in is widely demonized, attacked and labeled with every kind of insult, but I believe that $3.1 trillion is more than enough government, and $18.4 trillion is more than enough debt. Despite all of this tax revenue, there are over $1.3 trillion in deductions taken every year in the United States, and this is the reason that our tax code has been turned to Swiss cheese. It is used for all manner of purposes other than paying for worthwhile government activities, which is supposed to be its purpose. The complexity of our tax system is also troubling for Constitutional reasons: of these ten million words, 2.4 million were written by Congress, and 7.6 million were written by unelected, unaccountable Washington bureaucrats. No one voted for three-quarters of these laws. Our tax laws are so complicated that the federal government spends $10.9 billion just to pay for the IRS. At a certain point, a government—or any other entity—becomes too large and complicated to manage. We can do better, and I am confident that we will. Consensus is building across the country that these latest words in our tax laws ought to be their epitaph. n

REP. JOE PITTS (R-PA.) is in his tenth term in Congress. He represents Pennsylvania’s 16th congressional district and serves on the House Energy & Commerce Committee, where he chairs the Health Subcommittee. 20 | www.cedmag.com | Construction Equipment Distribution | December 2015

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>> DATA TRENDS

increase from the previous month in institutional building planning. State and local budgets, which fi many projects in the institutional category, continue to recover from their recessionary weakness. Wi support, planning for new institutional buildings has trended upward over the past year, although in a tooth pattern. Commercial construction, on the other hand, is at a more mature stage of its recovery a planning has been relatively more stable. Planning in the commercial category increased 1.8% in Sep

There were a total of eight projects entering planning in September with a value that exceeded $100 m split equally between commercial and institutional projects. In the commercial building sector, a $330 million office building for Fannie Mae in Washington DC and a $150 million alteration of an office complex in Plano TX entered planning. Within the institutional building sector, a $400 million hospit Rockford IL and a $230 million clinic addition in Weston FL entered planning.

Dodge Momentum Index Declines in October

The Dodge Momentum Index fell 4.8 percent in October to 125.2 (2,000=100) from Dodge Momentum Index (Year 2000=100) its September reading of 131.5. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been Sep-‐15 Aug-‐15 % Change shown to lead construction spending for nonresidential buildings by a full year. The Dodge Momentum Index 133.5 126.2 5.8% Commercial Building 142.0 139.5 1.8% October decline for the Momentum Index nearly reverses September’s large gain (up 5.2 Institutional Building 122.9 109.7 12.0% percent), which had been fueled by a sharp jump for institutional building projects at Source: Dodge Data & Analytics the planning stage. The institutional building sector so far in 2015 has trended upward, but with some volatility on a month-to-month basis that’s reminiscent of this sector’s upturn in the early stages of its prior recovery back in the previous decade. In October, planning for institutional building projects dropped 4.5 percent after surging 10.6 percent in September, while commercial building projects retreated 5.0 percent after September’s 1.7 percent gain. Compared to the same month a year ago, the Momentum Index in October was still up 4.8 percent, with increases for both the commercial and institutional sectors, up 6.3 percent and 2.6 percent respectively. For more info, visit Dodge Data & Analytics at www.construction.com.

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>> TOP INDUSTRY TRENDS

Construction Equipment Industry Growth Continues The construction equipment industry has come a long way since the financial crisis of 2008. In the past two years, the industry has seen significant improvement in mature markets, like North America and Europe. It is poised to continue its steady growth through the beginning of 2016, said a recent McGraw-Hill Construction/ENR Construction Industry Confidence Index, which showed growth for the sixth straight quarter. Industry insiders can expect to see these top trends from 2015 continue well into the new year. Built-In Telematics The use of wireless devices, known as telematics, to transmit data is nothing new in the construction industry. The idea of building telematic devices directly into construction equipment and vehicles is a welcome change, particularly for equipment managers who, in the past, had to monitor their assets using several separate systems. Industry leaders are working closely with manufacturers to standardize shared data, with the goal of making it easier for managers to monitor multiple fleet assets on a single screen and use a single login. Volvo, John Deere, Komatsu and Caterpillar are among the manufacturers interested in integrating telematic devices into their equipment. Built-in telematics also will provide insight into driver behavior and make it easier to manage the maintenance schedule for equipment. Real-Time Data on the Go The ubiquity of WiFi hotspots, even included in some vehicles, makes it easier than ever for equipment and personnel managers in the construction equipment industry to keep track of their assets and get real-time project updates on their tablets or smartphones. There are a number of apps in development for both Android and iOS devices that are designed to make the transmission and monitoring of this data even simpler. The software company Telogis is working on two types of software to aid the use of real-time data in the industry. The companyâ&#x20AC;&#x2122;s real-time, cloud-based location service, known as Telogis Supervisor, puts all the information that managers need in a single spot, while the Telogis WorkPlan app lets drivers use a smartphone to complete pre-operation equipment inspections. Rising Construction-Machinery Capital Expenditures According to IHS Global Insight, construction-machinery capital expenditures in the United States will continue to rise in the coming year. Driven by low office and industrial vacancy, as well as an increase in hotel construction, demand in the industry 24 | www.cedmag.com | Construction Equipment Distribution | December 2015

New technology helps workers increase productivity and safety on the jobsite.

is expected to stay strong. Industry leaders also can expect to see an increase in the construction of distribution facilities used by retailers to process orders. Heightened Attention to Equipment/Site Safety Rising insurance costs are leading more construction companies to look for ways to ensure the safety of both workers and equipment. GPS tracking systems with real-time alerts are particularly helpful, as they allow managers to monitor equipment location and use. Managers can not only see where the equipment is located at all times, these types of systems also provide valuable information about the way the equipment is being used. Managers can set up alerts and be notified immediately if an asset leaves the intended location or is being operated in an unsafe manner. This type of monitoring can help managers reduce both downtime and injuries. 3-D Printers as Construction Equipment The use of 3-D printers in the construction industry is generating a lot of buzz. Companies can use 3-D printers to manufacture a wide range of building materials, which could revolutionize the industry if this type of technology catches on. Currently, a startup in Tennessee is leading the way, using a 3-D printer to create walls for use in home construction. Only time will tell if 3-D printers will become an enduring trend and a new standard in the construction equipment industry.

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Ditch Witch Releases New Mini Skid Steer

Digga's New Compact High-Flow 4DDS Auger Drive Delivers Powerful Performance for Higher Productivity With a maximum output torque of 4,180 foot-pounds, the new Digga Compact High-Flow 4DDS Auger Drive, manufactured by Iowa-based Digga North America, delivers faster, more powerful performance than comparable units, for increased overall productivity. The result of more than 30 years of experience in the design and manufacture of planetary gearboxes and drives, the Digga 4DDS Drilling Drive is engineered for use on the latest, most powerful skid steer loaders, backhoes and mini-excavators on the market today. The 4DDS will handle high flows of up to 42 gpm, providing output speeds of up to 108 rpm. The result is an ideal balance of torque and speed for faster production and a greater return on investment. The 4DDS auger drive’s high-efficiency Digga-designed motor system allows more of the carrier machine’s horsepower to be utilized in delivering power to the ground for faster drilling and better spin-off speeds, allowing operators to more quickly drill larger-diameter holes in harsh ground conditions. The motor features an integrated pressure relief valve that eliminates the need for bulky valve blocks, while reducing many potential leak points. And the sleek, compact gearbox design ensures that the drive can fit into a 10-inch-diameter hole, providing deeper penetration without the need for extensions, for more efficient operation. Because it can handle flows from 8 to 42 gpm, the 4DDS is truly versatile, fitting a wide range of skid steers (including high flow), backhoes and mini-excavators. 26 | www.cedmag.com | Construction Equipment Distribution | December 2015

Construction equipment maker Ditch Witch released its new SK752 mini skid steer this month, highlighting added capacity, control and operator safety. “Landscapers, contractors and renters alike will benefit from the SK752 mini skid steer,” Andrew Schuermann, product manager for compact equipment, said. “They’ll find the machine has all the power and functionality needed for small or midsize projects. It’s a compact tool carrier that accepts dozens of quick-connect attachments so operators can tackle multiple tasks on the job site, from utility, landscaping and underground construction work to plumbing projects.” The new model has an 860-pound operating capacity, 10 percent more than previous models. It also has a larger, 83-inch pin height to facilitate more efficient loading. Drivers have several ways of maintaining increased control and safety, including a two-way auxiliary control foot pedal that lets drivers keep their hands free to manage other functions. The SK752 also features an ergonomically designed operator station, with an optional joystick, in addition to the familiar dual level drive controls. The new control features, combined with good ground clearance, allow drivers to work comfortably and safely, with good views of the worksite, the company said. The product can be reviewed in detail on Ditch Witch’s website, www.ditchwitch.com.

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>> READY TO ORDER CAT M314F, M316F, M322F Wheeled Excavators Deliver Added Performance, Operator Convenience and Lower Operating Cost When designing the new Cat F-Series Wheeled Excavators, Caterpillar solicited customer input for characteristics considered important. Heading the list were initial quality and reliability, low operating costs, operator comfort and safety, simplicity of operation and maintenance, durability and environmental friendliness. The new models are designed around those goals, while retaining the best features of predecessor models, including the Cat Smartboom, ride control, joystick steering and load-sensing hydraulics. The new models also feature a dedicated swing pump, hydraulically driven cooling fan, large working envelope, added stability and a range of configurations and attachments.

New Vermeer Horizontal Drill Suits Large and Small Projects Vermeer is set to release a new horizontal directional drill designed to suit both large utility projects and small-scale pipeline work. The D60x90 S3 Navigator offers 60,000 pounds of thrust/ pullback and 9,000 pound-feet of rotational torque and a 202-horsepower Caterpillar Tier 4 Final diesel engine that offers a 17-horsepower gain over the previous D60x90 model. It can haul up to 600 feet of 2.875-inch drill rods, though it also works with a 3.5-inch rod. â&#x20AC;&#x153;Because we have more horsepower available to run the rotation, thrust and mud functions on the drill, we expect exceptional performance from the D60x90 S3,â&#x20AC;? product manager Tod Michael said. Despite the extra power for big jobs, the new machine is also specifically designed to work with minimal impact in urban or neighborhood environments. Its rubber tracks minimize road and sidewalk damage, it has a small footprint that can work in

tighter spaces and itâ&#x20AC;&#x2122;s 10 points quieter than previous models. The quality of life design also extends to operators, who will enjoy a quieter, climate-controlled cab with additional leg room. The cab is also equipped with a variety of digital diagnostic tools to monitor machine performance and maintenance needs. The D60x90 S3 Navigator horizontal directional drill will be available at Vermeer dealers in December.

Bobcat Introduces 3D Grade Control System for Compact Loaders A partnership between Bobcat Company and Trimble has produced the first-ever 3D grade control system solution for use with Bobcat skid-steer loaders, compact track loaders and all-wheel steer loaders. The Trimble GCS900 grade control system for use with Bobcat 96- and 108-inch heavy-duty grader attachments will offer both small and large contractors alike the ability to work on complex projects that require digital designs and

3D machine control. The new grade control system paired

28 | www.cedmag.com | Construction Equipment Distribution | December 2015

with a Bobcat loader and grader attachment will make it easier for operators to complete construction applications: residential and commercial development, coastal engineering, road and highway building and land reclamation. The new Trimble 3D grade control system allows operators to work at higher speeds without losing accuracy, increases valve responses and is a more robust grading solution.

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>> BUSINESS CONTINUITY PLANNING

ERIC STILES

Business Continuity Planning and Your Business Take steps now to keep your business running smoothly after a disaster

fter an emergency or catastrophic event, it is vital for your company to begin assisting your customers as soon as safely possible. The longer your customers have to wait for your help, the more likely they will be to get assistance from another company. It is nearly impossible to return your company to all functions after an emergency. In fact, many companies take weeks and months to recover. Some never do. Companies that have a contingency plan in place often restore their operations sooner than those that donâ&#x20AC;&#x2122;t, giving them the best chance of surviving a catastrophe. The better you pre-plan for an emergency, the more likely your company will survive, or at the least, absorb the costs of a reduction in business. Part of pre-planning for an emergency is projecting the short-, intermediate- and long-term availability of your key personnel, knowledge, resources and production capabilities. A formal business continuity plan is preferred, but the following best practices will give you some assistance in the short-term, and will provide points to consider when implementing a formal plan. Assess emergencies including those that might impact your company, vendors and customers. Also consider the ability to operate following a fire, flood, earthquake, technological or data compromise, severe storm, chemical spill, toxicological spill, workplace violence or medical incident emergency. Prioritize your responses to each type of emergency based on your projected available resources. At the same time, review your most important customers and what resources you would need to continue to satisfy their needs. Your goal should be to prioritize your list based on your ability to respond to your type of emergency with the end desire of maintaining business with your most important customers. While it is important to develop a strategy for all foreseeable situations and all your customers, prioritizing allows your company to focus on those deemed most vital to survival. Form a business continuity team, with each person responsible for identified objectives, following a chain of command, with tasks specific to each of those important customers you have deemed vital.

30 | www.cedmag.com | Construction Equipment Distribution | December 2015

Team members should be able to take on additional roles, in case the emergency is a loss of another key team member. Annually evaluate the team and plan to ensure effectiveness. Look for alternate locations for your business; a similar building or structure that could be used in case an emergency impacts your current location. Develop a symbiotic relationship with the owner of that space, allowing for either company to use the other location in an emergency. Choose a business with similar abilities, but not in direct competition. Secure all vital electronic data off-site and verify procedures are in place to restore data when needed. While these best practices are not intended to be a formal business continuity plan, they will provide good talking points to consider with your staff as you develop your own formal plan. Remember to focus on your most important customers. All resources should be in place to keep them serviced. They are your key to survival. Sentry Insurance is committed to helping you protect your business by providing resources to manage loss-producing situations and prevent accidents. For additional information, contact our Safety Services department at 800-443-9655. ERIC STILES is Sentryâ&#x20AC;&#x2122;s lead Account Executive responsible for maintaining the AED/Sentry relationship.

>> HIGHWAY BILL UPDATE

House Approves Multiyear Highway Bill, Inches Closer to Conference Following three days of debate and consideration of more than 100 amendments, the House approved its version of a highway reauthorization bill - the Surface Transportation Reauthorization & Reform (the STRR Act) - 363 to 64. The legislation would provide $325 billion for roads, bridges and transit infrastructure. However, the duration of the authorization – six years or three - depends on Congress’ ability to come up with a way to pay for the final three years. Similar to the Senate-passed DRIVE Act, which provided three years of guaranteed investment in a six-year authorization, the STRR Act is essentially a three-year proposal. A conference committee, appointed to reconcile differences between the STRR Act and the DRIVE Act, will determine the investment blueprint’s exact duration and funding levels. During floor consideration, the House adopted a construction industry-supported amendment offered by Rep. Reid Ribble (R-Wisc.) that increases the air mile radius from 50 to 75 miles for the transportation of construction materials and equipment to satisfy the 24-hour reset period under federal hours of service rules. Similar to the DRIVE Act, the STRR Act also includes a provision to renew the Export-Import Bank. In a written statement issued in the wake of the House vote, AED President & CEO Brian McGuire reminded lawmakers that

32 | www.cedmag.com | Construction Equipment Distribution | December 2015

although the process has taken an important step forward, it isn’t finished and there’s still much work left for lawmakers to do. “The fact remains that authorization for surface transportation programs is again set to expire in 15 days,” McGuire said. “We urge House and Senate conferees to quickly hammer out the final details of a plan to restore stability to the highway program and institute much-needed reforms. AED and its members are standing by to help move final legislation across the goal line and to the president’s desk.” For more information about the STRR Act, visit the House Transportation & Infrastructure Committee’s information page.

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>> TECHNOLOGY 101

BRIAN REHG

Is there such thing as a free ERP?

A look at open source Enterprise Resource Planning software ODOO

The client was so pleased with the slick new user interface that he immediately wanted to switch to ODOO and dump his old, clunky ERP.

f your company uses any type of Enterprise Resource Planning software, you know the pain and cost some of them can bring. If you don’t have one, or even if you don’t know what an ERP is, read on to help you decide what they can do for your business. An Enterprise Resource Planning solution is a multi-module software application that can be used for almost every aspect of your business. Its system of tools usually includes customer resource management, accounting and payroll, inventory management, logistics and human resources. These are all integrated into one database, helping to automate back-office operations related to running your company. It’s easy to see how ERPs can quickly become the backbone for running major business functions. Because multiple operations are integrated into one database, it eliminates the need for separate applications. Many companies still use independent software tools that don’t work with each other, creating communication problems and decreasing efficiency. With these benefits do come some downfalls. They can be extremely costly, come with huge service agreements, and require large learning curves. I was recently approached by a client

who wanted to increase productivity and eliminate duplicate databases, but was wary of these problems. As a solution, my team investigated one of the free ERPs currently on the market. Free doesn’t necessarily mean no cost, but that there is no upfront cost to purchase the package. The cost comes later in implementing the software for their business and customizing it to fit the client’s needs. The ERP that we chose was ODOO. The software is open source, which means my company can modify the code to suit a client’s specific needs. ODOO is not the only free open source ERP on the market, but it definitely has the cleanest user interface. It was also sophisticated enough to handle my client’s specific needs. My team is two months into the project and we have started beta testing on our customized version of the ODOO ERP. The client was so pleased with the slick new user interface that he immediately wanted to switch to ODOO and dump his old, clunky ERP. With just a couple months in, ODOO has already surpassed the functionality of his existing system. As we test, we will be tweaking the code to ensure that my client’s staff has an optimal user experience. We have a long way to go in customizing the accounting packages and reports for our client, and then we can move on to integrating their customer resource management tools. I’ll write an updated article once we have the ODOO project completed, but as of right now our client couldn’t be happier. Whether you currently manage all business functions separately or have an outdated ERP that isn’t working for your specific needs, consider an open source, customizable ERP for your business. It could be more than worth it in the long run. n

BRIAN REHG is CEO and founder of Blue Stingray, a web and mobile application development agency. As a former software engineer with over 20 years of development experience, Rehg stays up-to-date on emerging business technologies and is an active member of several local business associations. Brian can be reached at: brian@bluestingray.com. 34 | www.cedmag.com | Construction Equipment Distribution | December 2015

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>> REGIONAL REPORT

BEN YATES, Eastern Regional Manager

Despite Uneven Economic Recovery, AED is Impacting Policymaking at the Grassroots Level Uncertainty surrounding federal highway programs is causing uneven recovery in the industry

ver the course of the year, I’ve met State dealers have experienced a big downturn in with over 60 distributors from New the equipment export business, particularly to England to Alabama. While some the Latin American region. Meanwhile, in North dealers are back to full operating capacity, others Carolina, equipment dealers are benefitting from “While nothing have only experienced minimal growth. A few of an unlikely market segment—the fiber optic the variables at play are product markets served, infrastructure. Consequently, utility contractors is final, Congress the territory covered, and the state and local are buying equipment spurring growth in the seems to be on government’s ability to fund and attract projects. state. The downturn in the energy sector the right track has been particularly disruptive after years of to equipment markets. For many dysfunction. And, companies, energy development kept them in business during the I believe AED recession. Unfortunately, coal and members played shale production has declined with an important role significant effects on equipment distributors. One dealer principle in moving the I met with estimated 95 percent of policymaking West Virginians have a direct connection to someone working in the coal process forward.” industry, and the decline in production has had a devastating effect on the local economy. Despite the Ben Yates, Eastern Regional Manager, AED; U.S. Rep. Barbara distressing economic situation, many Comstock (R-VA10); Stephen Stecklein, CEO, Washington Air dealers are still looking for qualified Compressor Rental Co.; and Jay Weaver, GM, Washington Air workers. However, the same dealer Compressor Rental Company. estimated that seven out of 10 people the company screened for employment failed a The uneven recovery partially results from the drug test. recent uncertainty surrounding the federal highway program. Congressional inaction has forced So despite several available positions and a high states and local government to act. In 2015, unemployment rate, finding 14 states, including North Carolina, Virginia, qualified applicants is a Maryland, Vermont, Tennessee, Georgia, Rhode tremendous challenge, even Island and Pennsylvania, increased their state in hard hit regions. gas taxes to help make up the shortfall from the Unlike West Virginia, Florfederal government and fund local infrastrucida distributors are reporting ture projects. residential housing and Nonetheless, Congress is working toward highway market resurgence. completing a multiyear surface transportation bill that will restore certainty to highway Phosphate mining in south construction markets across the country. Florida also continues to be U.S. Rep. Mark Meadows (R-NC21) and Dan Metstrong. However, Sunshine calf, General Manager, James River Equipment.

36 | www.cedmag.com | Construction Equipment Distribution | December 2015

>> REGIONAL REPORT Pair a long-term highway bill with depreciation bonus, and higher Sec. 179 levels, and it would bolster the construction, distribution and manufacturing sectors and put the economy on track for years of prosperity. Congress is expected to approve a tax extenders package by year’s end that will reinstate bonus depreciation and increase Sec. 179 expensing levels for at least this tax year (and hopefully beyond). While nothing is final, Congress seems to be on the right track after years of dysfunction. And, I believe AED members played an important role in moving the policymaking process forward. Since August, AED member companies have hosted dozens of lawmakers at their dealerships. These meetings are a valuable and influential opportunity to educate policymakers and introduce them to a dealership’s employees, the business and how certain policies impact the ability to run a profitable business. To meet with policymakers on their turf in Washington, D.C. is important, it shows commitment. But inviting them to your dealership to understand your business, meet your employees and get an up-close look at your equipment creates a reference point they can use when it comes time to draft legislation or cast a vote. This is especially true for the newer lawmakers, who have limited understanding about the highway program, capital investment

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inventive and how regulation impacts AED members. Progress is being made, but continued and increased engagement is needed to ensure the equipment industry has a voice in the legislative process. Reach out to your AED Regional Manager at 800-388-0650 to learn more about how you can get involved in the association’s government affairs program. n

THE NExT GENERATION

THREE GENERATIONS OF CUTTING EDGE INNOVATION

Standard Carbide

Nick Kelly, VP, Kelly Tractor; Pat Kelly, President, Kelly Tractor; U.S. Rep Carlos Curbelo (R-FL26).

With field-proven rugged durability, the refined and balanced design of the Carbide Cutter G3 has made it the "gold standard" in the vegetation management industry. With the newest generation, Loftness has incorporated the latest power drive systems and cutting tooth technologies.

Quadco Planer Blade

Loftness has engineered a line of carbide-tipped and heat-treated steel teeth specifically for the G3. See page 8 for details. the Loftness Vegetation Management Equipment LEARN Visit website to learn more and experience the Carbide Cutter MORE G3 from every angle. www.vm-logix.com

Scan this code to learn about Loftness VMLogix Systems agricultural, vegetation and snow removal solutions at www.loftness.com

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Loftness Specialized Equipment

WWW.LOFTNESS.COM

www.loftness.com P.O. Box 337 Hector, Minnesota 55342 USA

Toll Free US & Canada: 800-828-7624 International 320-848-6266 email: info@loftness.com

December 2015 | Construction Equipment Distribution | www.cedmag.com | 37

>> AED FOUNDATION

KIM SUNDERLAND

AED Foundation Prepares for 25th Anniversary Gala in Nation’s Capital The celebration is set during the AED Summit from Jan. 19-22 on Jan. 20

t was the year that Michael Jackson’s “Black or White” music video premiered. In sports, it was the year Michael Jordan was named the NBA’s MVP and the New York Giants beat the The party theme Buffalo Bills in Super Bowl XXV. It was the same is “Flashing back year that Operation Desert Storm began and the Gulf War ended. Microsoft released MS DOS 5.0 to 1991 … when and Ted Turner was Time Magazine Man of Year. the foundation It was 1991, the same year the AED Foundation started.” (AEDF) was started by Associated Equipment Distributors members to address professional education and workforce development in the construction equipment distribution industry. As a 501 (c)(3) educational foundation, the AEDF provides training, recruitment and education in the industry with a goal toward developing more skilled employees, in turn improving the quality and success of industry dealerships. AEDF will celebrate its 25th anniversary during the AED Summit on Jan. 19-22 in Washington, D.C. The party theme is “Flashing back to 1991 … when the foundation started,” said Rebecca Lintow, director of sales and development for the AED Foundation. “This is a great way to celebrate the 25th anniversary while at the same time supporting the future of the foundation,” Lintow said. The celebration will include the ninth annual Live Auction on Jan. 20, which is being presented by the AEDF and Ritchie Bros. People bid at last year’s AED Foundation Sponsors are being sought auction. to donate an item or a package. Some of the donated auction items include: • An Augusta 2016 Masters Golf Tournament Package valued at $15,000 donated by Glynn General Corp.;

38 | www.cedmag.com | Construction Equipment Distribution | December 2015

• A Masters Tournament package worth $5,000 from Komatsu; • A $1,200 Apple Watch donated by Pavement Recyclers LLC; • An invite-only Canadian salmon fishing trip worth $10,000 donated by Ritchie Bros.; • An all-inclusive Costa Rica vacation for two valued at $4,500 donated by Caterpillar; • A $3,000 Kentucky Derby Package donated by EPG Insurance; • A NASCAR package worth $3,000 donated by Volvo Construction Equipment; • Priceless 14k gold-plated George W. Bush presidential cobalt cuff links donated by AED President and CEO Brian P. McGuire; and • A Kingsmill Golf Package in historic Williamsburg, Virginia, donated by Liebherr and valued at $2,500. Other donated auction items include a $3,300 leather executive high-back chair; vacation packages for Memphis, Orlando, Las Vegas and Gaylord National Resort; baseball tickets; and a Scotch sampling package. For an updated list of items plus complete descriptions of the items listed above, check out the website: www.aednet.org/auction2016/. Additionally, there are a host of benefits provided in return to the individuals and companies that donate items, including a tax write-off of the value of a donated auction item and numerous marketing opportunities. The AEDF events benefit the group’s professional education programs, including the only management certification in the construction equipment industry. n Contact Rebecca Lintow at 630-468-5113 or rlintow@aednet.org to make a donation or to learn more about the foundation’s upcoming celebration.

PARTS PROGRAM

BRIDGING THE GAP BETWEEN EQUIPMENT DEALERS AND SUPPLIERS The AMAM (All Makes, All Models) Program is an internet based heavy equipment parts solution designed specifically to help equipment dealers increase market share by expanding the opportunity to provide parts and service for all makes and models of equipment. Our program aligns suppliers and manufacturers of heavy equipment parts with equipment dealers across the country. The easy to use interface allows dealerships to efficiently and cost effectively source parts for any machine. No more will dealerships have to turn customers away because they are unable to support equipment from other manufacturers.

Please visit us in CONDEX Booth 507

AMAMLOGIN.COM | INFO@AMAMPROGRAM.COM | 877-344-2399

Get Out on the Floor Exhibitors for CONDEX 2016 are gearing up to bring dealer products and services to Washington, D.C. Register now and check out the full list of participating companies at aedsummit.com.

AMAM

Booth: 507

The AMAM Program: Allowing Dealerships to Get Their Business Back! The AMAM (All Makes, All Models) Program is an internet-based heavy equipment parts solution designed specifically to help equipment dealers increase market share by expanding the opportunity to provide parts and service for all makes and models of equipment. Our program aligns suppliers and manufacturers of heavy equipment parts with equipment dealers across the country. The easyto-use interface allows dealerships to efficiently and cost effectively source parts for any machine.

AMI Attachments Booth: 307

Introducing the Kraken, the new excavator concrete pulverizer from AMI Attachments. The Kraken is the fast and simple way to crush concrete. Built for long-term use, the AMI Attachments Kraken is fully mechanical, made with Hardox wear points and requires no auxiliary hydraulics. Inside the Kraken is a unique teeth array called the Break Point Bite Profile. By using longer teeth in the center, breaking force is maximized at initial crush by concentrating pressure across fewer points. After first penetration, the secondary teeth crumble the concrete into manageable pieces. The Kraken concrete pulverizer is made in Canada and is backed by AMI Attachments 2-Year limited warranty.

Black Cat Blades Booth: 406

The REVOLUTION Black Cat Hammerless Patented Technology will be featured at Condex 2016. The RVJ conversion system allows users to retain existing “J” series loader and excavator adapters while eliminating the unsafe practice of hammering the retaining pins in and out to replace the teeth. The RVJ bucket tooth retains the converter in the existing adapter, the helical pin is inserted and locked into place with the simple 180-degree turn of a

socket wrench. The same technology is available for large ripper teeth in the Black Cat RVC system.

CardConnect Booth: 422

CardConnect’s Merchant Center is a one-stop shop that allows businesses accommodation for their growth, while managing customer interactions. A host of payment solutions and a virtual account allow everything from online processing to robust reporting. Access all of your data from fully detailed deposit reports to realtime authorizations and settlements. Contact Mike Davis at 913-953-5302 or mdavis@cardconnect.com to find out more!

Chicago Pneumatic Construction Tools Booth: 439

Chicago Pneumatic features the RX54 heavy hydraulic breaker, the biggest in their lineup. Specified for carriers with a capacity of 88,200 to 154,300 pounds, it features a service weight of 9,260 pounds with an impact rate up to 570 blows per minute. Applicable to the entire CP RX breaker lineup, the RX54 features an innovative hybrid gas/oil technology, and fewer moving parts for a lower maintenance hydraulic breaker.

CW Machine Worx Booth: 525

CW Machine Worx is a fully accredited, licensed professional engineering and manufacturing company, with a team of engineers and fabricators that have many years of capabilities, as well as multicertified welders. CW Machine Worx uses the latest in CAD software to assist in the design and engineering of boom and stick conversions, counterweight assemblies as well as multiple engineered high reach and long reach products to meet customer needs. The company will be debuting the new Dust Demolisher 480V Electric dust suppression equipment offering at AED. This new product, available in two models, will complement its two

40 | www.cedmag.com | Construction Equipment Distribution | December 2015

The Kraken from AMI Attachments multi-patented, self-contained diesel products (HAWC / Dust Destroyer) that it currently manufactures.

Diamond Mowers Booth: 639

Manufacturing every product in South Dakota, Diamond Mowers builds skid-steer and excavator mower attachments, industrial booms, rotary and flail mowers, wheel loader and 3-Point boom mowers.

Digga North America Booth: 201

Digga is a leading global manufacturer of planetary gearboxes for machinery attachments, serving the construction and earthmoving industries since 1981. With world headquarters in Yatala, Queensland, Australia, and operating from five manufacturing facilities across three continents, Digga produces one of the largest ranges of high-torque planetary drives in the anchor/foundation and drilling attachment markets.

e-Emphasys Booth: 500

e-Emphasys helps equipment dealers and rental companies overcome their biggest business challenges. Our full-featured enterprise management system is designed exclusively to meet equipment dealership and rental requirements. e-Emphasys’ proven and

more than one Multifunctional

Multione features 180+ attachments, from lawn care to telescopic handling, to aerial man lift in a matter of seconds

Power

MultiOne loaders can lift nearly as much as its weight

www.multioneusa.com 3737 East Evergreen Street - Springfield, MO 65803, USA

Please visit us in CONDEX Booth 339

Turf Friendly

Each independent wheel follows the ground and the motion, leaving no skid marks behind

Performance

Lifts up to 3,500 lbs, telescopic extends up to 10.5â&#x20AC;&#x2122;

>> CONDEX comprehensive ERP integrates industry best practices and supports advanced business processes that help optimize productivity and improve the bottom line. Our end-to-end solution covers activities from planning-to-cash. With a 360-degree view of financials with drill-down capabilities for every piece of equipment, order, department or resource, it helps drive maximum profitability from every asset. Built-in BI tools provide ready-made KPIs and analytical reporting, and our Enterprise Mobility tools support staff on the go with improved speed and coordination.

Fecon Inc. Booth: 206

Fecon is proud to introduce the FTX128L Mulching Tractor as the newest member of the Fecon FTX Tracked carrier line. Built in their Lebanon, Ohio, facility, this new tractor is strong on cutting power with 60 gpm to the Bull Hog Forestry Mulcher. The compact FTX128L features 20-inch tracks that work effortlessly while cutting up hill. The low ground pressure at 3.8 psi is ideal for soft conditions resulting in minimal ground disturbance. Serviceability is made easy with full-access side doors and engine compartment roof. The Cummins QSB4.5 diesel engine running at 128 hp coupled with Feconâ&#x20AC;&#x2122;s latest hydraulic technology allows the FTX128L to outperform machines with higher horsepower. Fuel consumption remains under 4.5 gallons per hour.

Visit us at CONDEX, booth 607

42 | www.cedmag.com | Construction Equipment Distribution | December 2015

The FTX128L Mulching Tractor from Fecon.

Finn Corporation Booth: 414

Innovation. Productivity. Efficiency. These are the design foundations of FINN equipment. From our industry-generating Straw Blowers to our market-leading HydroSeeders and Bark Blowers, our diverse product lines open up a wide array of possibilities and savings. Increased productivity, greater job opportunities, less labor needed and material savings are just a few ways FINN machines can help the bottom line. Use FINN HydroSeeders for large and

>> CONDEX small seeding jobs, for temporary and permanent erosion control, for soil restoration projects, for dust control, as a Landfill Alternative Daily Cover (ADC) applicator and for fire suppression. Straw Blowers are routinely used for seed protection, soil stabilization and mud control. Bark Blowers add even more versatility through the application of mulches, compost, soil blends and wood chips for landscapes, turf installation and topdressing, playgrounds, erosion control blankets and sediment control filter sock.

Gorilla Hammers Booth: 325

Gorilla Hydraulic Breakers enables customers to make one call for all of their hammer needs, regardless of make or model. Our GXS and GX model hammers are designed to empower the customer to perform their own maintenance and repairs. Their visual maintenance design makes it easy to notice issues before they become major problems. Additionally, nearly all repairs and maintenance, including nitrogen charges, can be performed in the field. These features, combined with their low purchase price, make Gorilla Hydraulic Breakers the most affordable, supported breakers available with the lowest ownership costs.

Helac Corporation Attachment Division Booth: 510

The new Helac PowerTilt hydraulic pin grab coupler option provides more choices in addition to the existing half hitch,

Universal (Wain-Roy/ CP), and brand specific couplers. As with the other options, the pin grab coupler still allows the PowerTilt to rotate up to 180 degrees side to side. The variable pin center design allows easy pick up and change of the The Helac PowerTilt pin grab coupler. widest range of OEM attachments. The Helac PowerTilt hydraulic pin grab coupler option makes it easier for the operator to change attachments from the security and comfort of the cab. The coupler provides both a front and rear safety locking mechanism to secure both attachment pins. No separate, manually inserted, safety pin required. The hydraulic pin grab coupler option is available for 5 to 30 ton excavators and loader backhoes. With eighteen PowerTilt pin grab coupler combinations to choose from.

HKX

Booth: 501

HKX Inc. is proud to announce our new hydraulic coupler kit, designed for excavators sized 5-100 Metric Tons. The new hydraulic coupler kit offers compliance to the current draft of ISO 13031 with a console-mounted, locking rocker

Lowe Manufacturing coMpany, inc.

18903 High point road Viola, wi 54664 pH: (888) Dig-Lowe (344-5693) fX: (608) 538-3995 www.LoweMan.com Lowe@LoweMan.com

PRODUCTIVE, DURABLE, VALUE. 速 AUGERS TRENCHERS Visit us at CONDEX, booth 700

GRAPPLES

December 2015 | Construction Equipment Distribution | www.cedmag.com | 43

>> CONDEX switch that provides simple coupler control and eliminates the unsightly control box included with most other coupler kits. Along with ISO 13031 draft compliance, our kit also provides constant pressure to the coupler, keeping it tight and positively locked at all times. The kit allows for quick installations with our HKX exclusive hose grommet mounting system. Hose bulkheads at the boom foot and tip provide for a clean, factory look and assure proper hose routing to eliminate chafing and binding. Kits include HKX exclusive pre-assembly, quality, easy to follow installation instructions and the best customer support in the industry.

HydrauliCircuit Technology Booth: 420

Visit us at CONDEX, booth 424

The HydrauliCircuit Technology, Excavator Front Window Guard provides additional layer of protection to the front window from flying debris. Tubular frame, welded tabs and high strength 10.8 class bolts are used to provide better strength. The guards are bolt-on and uses crimped woven wire mesh. They are easy to install on any cab. The 6-inch spacer allows for easy access to the windshield. Optional LEXAN sheets are available in quarterinch or half-inch thickness for additional protection.

Excavator front window guard from HydrauliCircuit Technology.

IHI/Compact Excavator Sales LLC Booth: 309

IHI/Compact Excavator Sales is the sole distributor for the IHI Crawler Carriers, Mini-Excavators, Rubber Track Loaders and Rubber Tired Skid Steers in North America. As a family-owned business established in 1994, our main goal is to service and support our customers. Our facility located in Elizabethtown, Kentucky, is where all units, parts and support are headquartered. IHI/CES distributes a full line of Zero tail swing and Conventional-style Mini-Excavators that have operating weights ranging from 2,000 to 18,000 pounds and have digging depths from 5-feet 2-inches to 15-feet 1-inch. The IHI crawler carrier line has become very popular in the oil and gas industry along with the utility industry. A variety of attachments can be mounted on the crawler carriers to fit any contractorâ&#x20AC;&#x2122;s needs.

J. T. Bates Insurance Group Booth: 530

Insurance is a confusing commodity and most would rather ignore it. At J. T. Bates, we pride ourselves on going the extra mile to make things easier for the dealer and their customer. Services we provide include Rental Equipment Protection (REP), compliance services, certificate tracking, tax exemption form tracking, REP claims, extended warranty coverage and business insurance. J.T. Bates goes one step further when tracking certificates by verifying customer coverage and managing expiring certificates. If our team finds missing or insufficient coverage, they contact the appropriate insurance company to get the right coverage. J.T. Bates is now offering a monthly blog 44 | www.cedmag.com | Construction Equipment Distribution | December 2015

>> CONDEX on various topics related to the company and rental insurance.

Machinery Trader and Auction Time Booth: 107

Auctioning and bidding on equipment has never been easier or more cost effective. Powered by MachineryTrader. com, TractorHouse.com, TruckPaper.com and MarketBook. com, AuctionTime.com brings together buyers and sellers to move equipment at auction values. Sellers list equipment on AuctionTime.com for a low flat fee. Bidders pay no buyers fees whatsoever. The result is savings for everyone. Auction listings appear in AuctionTime.com's searchable, user-friendly interface. The site lets visitors access listings from anywhere in the world 24 hours a day, seven days a week. Unlike conventional auctions, bidders can discuss specifics about the auction pieces with the actual seller, or go see the actual machine themselves. Auctions come to an end each Wednesday with live bidding open at 9 a.m. each Tuesday and proxy bidding open 7 days prior to auction end time.

Visit us at CONDEX, booth 425

Okada America Booth: 424

Okada America offers a wide range of hydraulic breakers to fit your needs from 150 to 15,000 Ft-Lbs classes. Okada offers over 20 sizes of hydraulic breakers that are custom-made for hasslefree mounting on whatever carrier and application you choose. The compact design of each Okada breaker provides for ease of handling and maneuverability while providing the impact forces needed to complete the job!

Relevant CRM Booth: 706

Relevant CRM provides customized CRM solutions for the construction, material handling and heavy equipment industries. We offer industry-specific integrations for ERP packages such as Eqiupsoft, DIS Solutions, Quipware, SRA, Great Plains, NAV and many more. Our mission is to deliver a flexible and comprehensive CRM solution to support your dealership. Our integrations can help your sales team proactively manage accounts by leveraging ERP data such as lease renewals, fleet information, periodic maintenance agreements, excessive work orders and service activities directly within CRM.

Rubble Master Booth: 338

Are trucking, tipping and purchase of new material killing your customersâ&#x20AC;&#x2122; profits? Rubble Master offers economical crushing and screening solutions for demolition, construction, concrete, asphalt and aggregate. There is nothing like a RM crusher in the weight class less than 74,000 pounds. Compact, urban friendly and highly mobile, a RM crusher enables crushing regardless of volume and job size.

Rubble Master crusher.

Sentry

Booth: 401

Description: Selecting a retirement plan? Don't go it alone. As a bundled service provider, Sentry Insurance covers all aspects of a 401(k) plan, making it easier and more affordable for you. December 2015 | Construction Equipment Distribution | www.cedmag.com | 45

>> CONDEX Providing a top-notch, customized 401(k) plan for your business is our priority. We understand the importance of controlling your costs and easing your administrative burden so you can focus on running your business.

Sullivan-Palatek Booth: 407

Built with the contractor in mind, the 185PDZ compressor is an impressive ally at any job site. Providing 185 cubic feet per meter at 100 psi, this machine is ideal for powering a majority of pneumatic tools. The Larger 185 Tier 4 Final compressor includes two full-length tool boxes, two large service doors and galvanized inner fenders. For scratch and rust protection, the exterior of the machine is outfitted with Galvanneal coated and powder coated sheet metal. Powered by a 49 HP Deutz diesel engine, this design has twostage air filter and large 29 gallon fuel tank for full shift duties.

pin joints. Extra heavy duty turn table bearing and pinion gear drive. Increased cross sectional strength of boom and dipper stick where high stress forces are encountered.

Webasto Thermo & Comfort North America Booth: 431

Webasto Group based in Stockdorf near Munich has been a family-owned business since the company was founded in 1901. The group operates

NEW Cooling Technology!

internationally at over 50 locations (over 30 of these production plants) in the divisions roof and thermo systems. Webasto is one of the top 100 automotive suppliers worldwide. The company's core competencies encompass the development, production and sales of complete roof and convertible systems as well as heating, cooling and ventilation for passenger cars, commercial and special vehicles, recreational vehicles and boats.

Visit us at CONDEX, booth 618

Toku America Inc. Booth: 518

Toku America Inc. introduces a new 2,000 foot-pound class Hydraulic Breaker (TNB-7J). Toku America Breakers are manufactured and designed by Toku Pneumatic in Japan. The TNB-7J will replace the TNB-7E which has been manufactured since 1989. The New TNB-7J offers 23 percent higher impact energy and weighs 10 Hydraulic percent lighter than the Breaker from TNB-7E model, offering Toku America. more power but less fatigue to the excavator. New seal design has dramatically improved seal life to provide less maintenance to the end user. The new box design features include a dirt removal seal at the bottom of the box to prevent foreign particles from entering the breaker.

TRAMAC Corporation Booth: 324

Tramac Boom Systems announces its latest boom design, the TXG Series. This new series of Stationary Rock Breaking Boom Systems differs from its duty level mate, the TX Series, in that, with its turn table, it is capable of 360-degree noncontinuous rotation. Its arched main boom section constructed of high strength plate steel includes reinforced pivot and

Keep Your Cool with Polar Cab by Webasto Webasto’s Polar Cab TS engine-off cabin cooling system will ensure operators never lose their cool again. Webasto’s exclusive thermal storage technology provides operator comfort without having to idle the engine. Extend DPF service life, reduce engine hours, increase productivity and eliminate unnecessary idling with Polar Cab TS by Webasto. Polar Cab TS Benefits n

Cold Storage Technology with patented graphite matrix

Cooling capacity 1.3 kW (4,450 BTU/h)

Increases productivity

Maintains cabin temperature

Reduces engine hours

Saves fuel

No additional batteries required

Low power consumption

To find out more about Webasto’s off-highway cooling solutions visit www.PolarCabCooling.com

46 | www.cedmag.com | Construction Equipment Distribution | December 2015

Please visit us at AED Suite 15052

>> AED CANADIAN UPDATE

CODIE TAYLOR

A New Liberal Government’s Investment in Infrastructure and Manufacturing Canada’s new liberal government is pledging to spend $125 billion on infrastructure in the next decade.

If the Liberals are able to live up to their commitment, this spending will amount to the largest investment in infrastructure and manufacturing in Canadian history.

n Oct. 19, the Canadian political landscape underwent a major transition, with Justin Trudeau and the Liberal Party of Canada defeating the governing Conservatives, forming a majority government after close to ten years of Stephen Harper and the Conservative government. During the recent election, the Liberals stood out from the other parties with their ambitious infrastructure and manufacturing spending promises to stimulate growth and create thousands of jobs while running modest deficits for the next three years. The price tag on the infrastructure spending alone will be $125 billion over the next decade, doubling that currently allocated by the previous government. Much of the money earmarked for infrastructure will be spent on major projects to enhance public transport and on social infrastructure, including local and wastewater facilities, climate resilient infrastructure and clean energy projects throughout the country. The Liberals have promised to increase the transparency of the New Building Canada Fund by providing clearer project criteria and faster approval processes that will now prioritize investments in roads, bridges, transportation, ports and border gateways. While the Liberals are pledging stricter environmental legislation to regulate the energy sector, they are nevertheless supportive of resource extraction and expanding networks to bring the yields to market. The Liberals have affirmed their support of the Keystone XL Pipeline and have all but come out in favor of the TransCanada’s Energy East project and the Kinder Morgan Inc.’s Trans Mountain expansion. As part of the Liberal commitment to support green technology, they will invest $200 million

more each year to support innovation and the use of clean technologies in Canada’s natural resource sectors, including the forestry, fisheries, mining, energy and agricultural sectors. Further, they will enhance existing tax measures to generate more clean technology investments and work with the provinces and territories to make Canada the world’s most competitive tax jurisdiction for investments in the research, development and manufacturing of clean technology. The new government will develop this strategy in collaboration with the private sector and research institutions. To fulfill their commitment to create sustainable middle-class jobs, the Liberals will work with provinces, territories and post-secondary institutions to develop or expand Pre-Apprenticeship Training Programs. This will provide up to $10 million per year to help young Canadians gain the skills they need to enter high-demand trades. Although the commitments the Liberals made are promising, there is still a long way to go to address infrastructure needs in Canada, according to many industry leaders. They see the proposed spending as just “drops in the bucket” to what is really needed just to maintain existing infrastructure let alone investing in new projects. If the Liberals are able to live up to their commitment, this spending will amount to the largest investment in infrastructure and manufacturing in Canadian history. Of course, like everything else in politics, this is a big if and there will always be reasons not to follow through on these pledges. Nonetheless, we at the AED remain optimistic that the new Liberal government will deliver on their promises and are excited to work with the new government. n

CODIE TAYLOR is a senior consultant at Bluesky Strategy Group. She can be reached at codie@blueskystrategygroup.com. Members of the Bluesky Strategy Group contributed to this report. 48 | www.cedmag.com | Construction Equipment Distribution | December 2015

carry your load wherever you want Lowest ground Pressure and HigHest ManeuveraBiLity

Hydrema 912HM articulated Dump Truck Load capacity 22.000 LB. Low running costs. 180ยบ load dumping. High quality.

Hydrema US Inc. Phone: (404) 614 1747 www.hydrema.us

< More about Hydrema

>> FEATURE STORY

Lower Oil Prices Having Significant Impact on Exports from Western Canada 2016 will see overall rise in exports for Canada

lberta and Saskatchewan will have lower exports this year due to depressed oil prices, but will rebound in 2016 through a partial price recovery and volume gains, according to a new global export forecast released by Export Development Canada (EDC). Manitoba will also see declines in its energy exports in 2015, but gains in other important sectors will offset that and give it a modest increase in overall exports. All three provinces will enjoy export growth in 2016. According to the Global Export Forecast Fall 2015, Alberta’s overall exports will slump 23 percent in 2015, due to a 30 percent drop in exports of energy, which accounts for more than three-quarters of the province’s exports. Saskatchewan, which relies on energy for about 40 percent of its exports, will also see a significant decline – 43 percent – in that sector, but strong growth in exports of fertilizers and agri-food will greatly moderate the effects on its overall export performance. Manitoba’s energy exports will be down 24 percent this year, but as energy is a much smaller share of exports than in the other two provinces, the effect on its overall exports is much less. “There’s no question that low oil prices are having a major impact on exports from Western Canada, especially Alberta,” said Peter Hall, chief economist at EDC. “But Saskatchewan and Manitoba are showing how provinces with a more diversified range of exports can soften the blow caused by declines in one sector.” EDC says Saskatchewan’s agri-food exports, which roughly equal the value of its energy exports, are set to rise 10 percent in 2015, while fertilizer exports will increase by 38 percent. In Manitoba, the greatest positive contribution to its exports will come from shipments of pharmaceutical products, along with gains from manufacturers such as New Flyer Industries, which is providing coach buses to several U.S. state governments. Alberta’s non-energy exports are also seeing a slight increase – 1 percent – in 2015 and will post a further 4 percent gain in 2016. 50 | www.cedmag.com | Construction Equipment Distribution | December 2015

“Manitoba and Saskatchewan are also more diversified than Alberta in the markets they sell into,” said Hall. “While the United States accounts for more than 90 percent of Alberta’s exports, it’s only about two-thirds of the market for the other two.” A rebound in energy exports in all three provinces next year will also help them raise their overall exports. Alberta will see a 20 percent increase in energy exports and a 15 percent increase in overall exports. Manitoba’s energy exports will climb 15 percent and overall exports by 6 percent. Saskatchewan will enjoy a 13 percent increase in energy exports and a 5 percent jump in overall exports. EDC is Canada’s leading provider of small business financing and insurance for companies with sales or business outside of Canada. Its semi-annual Global Economic Forecast addresses the latest global export conditions, including providing perspectives on leading economic trends and export strategies to help Canadian companies of all sizes maximize their export growth. The forecast also analyzes a range of risks for which exporters should be prepared. Visit the Global Export Forecast: Fall 2015 (www.edc.ca/gef) page for the full report. n

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AED’s call cousel is a FREE legal hotline for AED members provided by Kopon Airdo, LLC — AED’s general counsel. Don’t miss out on this amazing member benefit! • Callers receive immediate guidance on commercial, employment and litigation-based legal questions, enabling them to evaluate possible courses of action and to understand ramifications of such actions — when legal situations arise or looming. • Strict confidentiality is adhered to on all calls – Call today 312-506-4480!

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>> RENTAL ISSUES

JOANNE COSTIN

Selling Out of Rental or Selling Off the Rental Fleet Business objectives and data drive rental asset disposition strategies

rying to capitalize on a growing preference for rental has taken construction equipment dealers down a variety of paths. Some dealers swear by the pure rent-to-rent (RTR) model, while others have success with a rent-toown (RTO) strategy. Nearly two-thirds of dealers employ both strategies, according to a recent AED poll. Whatever strategy employed, how and when you sell equipment from the rental fleet is just as important to the bottom line as what and when you buy. With an exclusive focus on rental, businesses such as Sunbelt, Hertz and National don’t care about who they sell their assets to or where they are located. Selling equipment to end-users doesn’t create a future revenue opportunity for them. It’s a different story for original equipment manufacturer (OEM) dealers. “Any OEM dealer activity is all about getting their equipment into the marketplace so they can make money on parts and service,” said Gary McArdle, executive vice president and COO of Rouse Asset Services. “OEM dealers have a vested interest in turning over the equipment sooner than general rental companies.” The Hug & Hall RTR Strategy At Hugg & Hall Equipment Co., a multi-line dealer representing primary lines of JLG, Volvo, Bobcat, Genie and Taylor (forklifts), rental is a strong focus along with retail sales, parts and service. Rental Equipment Register ranks the Little Rock, Arkansas-headquartered dealer No. 67 on their list of the Top 100 rental firms with annual rental revenue of $35.7 million. Like most OEM dealers, when it comes to selling used rental equipment, their first choice is to sell it through their own retail sales group, which is organized into four divisions: light equipment, heavy construction

Eight ways to get more for your used assets 1. Improve your timing. Identify underperforming assets early and don’t

wait until mid-December to move items to auction. Competition is greater and values lower.

2. Monitor rental equipment values at least once a month and adjust the

fleet accordingly.

3. Keep meticulous maintenance records for potential buyers. 4. Price equipment right for market conditions. 5. Prep it right. Clean and repair equipment so it is in workable condition. 6. Don’t hold on to underutilized equipment –it ties up capital and drives

your return down.

7. Review how much time your sales team takes to sell a machine to your

customer base.

8. Consider new channels for selling equipment such as “buy now”

online marketplaces.

equipment and forklift. While they use other channels such as online and physical auctions, and wholesalers, most used rental equipment is sold through an internal sales team. When items are put up for auction they prefer to use a local company. “It’s a little bit of Internet marketing compared to what we sell utilizing boots on the ground and face-to-face selling,” said Rick Vollmer, rental manager at Hugg & Hall Equipment Co. Vollmer says there are no hard and fast rules when it comes to making decisions about the age at which a piece of equipment will leave the rental fleet, but data drives decision-making, with the most important metric being net return on investment (ROI) for each machine. “That takes into account time - when did we buy it, original acquisition cost, rent taken in,

52 | www.cedmag.com | Construction Equipment Distribution | December 2015

and the amount of money we spent on maintenance,” explained Vollmer. The dealership has an internal acceptance ROI, based on the category class. Metrics are easily accessible through their dealership’s management system (EDS). Rental managers review the fleet daily constantly purging and adding equipment. Each October all the company’s rental managers and fleet managers meet for a day and go through every category class and make projections and assumptions. This becomes a guide for the coming year. The rental division of Hugg & Hall Equipment operates as a rent-to-rent business, occasional using machines from the rental fleet for demos. They simply don’t believe the rent-to-purchase model is a good option for them. “We are going to buy what we feel we have an appetite for and make

>> RENTAL ISSUES purchases based on what we feel we can absorb in the fleet based on the market,” said Vollmer. “If we can’t afford it, we try and get our house in order to where we can. Extending ourselves on a rent-tobuy option has never made sense for us.” The dealership has been heavily involved in the rental market since the 1980s, and a long-term view has kept them in a good position through periods of both growth and decline. “We were always in a position where we had to compete against strong rental competition and still run a sales business,” said Vollmer. “We developed a marathon approach --not a sprint. We try and manage our business to grow with an industry and not overextend ourselves.” Diversification, through both product lines and customers, has also helped Hugg & Hall Equipment weather the inevitable ups and downs of the construction equipment rental market. According to Vollmer, their exposure to the downturn in the oil and gas market has been fairly limited. They first began serving oil and gas customers about four years ago, as work escalated around shale gas plays in North Central Arkansas. In addition, they purchased Arkla Taylor, a Louisiana forklift dealer, located in the heart of the off-shore oil and gas activity. “While (the downturn in oil and gas) has hurt us in some areas, it hasn’t really killed us,” explained Vollmer. “It pays to diversify.” Southeastern Equipment’s RTO Strategy In Ohio, No. 69 on the RER Top 100 Rental List, Southeastern Equipment Co. works the RTO model successfully. “Sixty to 70 percent of our retail sales start with a rental,” said Heath Watton, regional sales manager. Watton buys into the idea that RTO options help customers overcome the higher cost of new Tier IV machinery. “We apply some of the money they pay toward rent. We keep extra for carrying it, and it allows the customer to work. Six months down the road, we have the benefits of a paid demo and the customer doesn’t feel the cost as much. We help him flip it into a purchase. It is a win-win across the board,” said Watton. Because Southeastern doesn’t dedicate machines to its rental fleet, they don’t track activity on each unit in the same way a rent-to-rent company might. Instead they analyze metrics by location. When evaluating whether or not to sell an asset, a number of factors come into play. “We look at the machine on a monthly basis, compare hours to rent billed, return on investment and market trends to determine the ‘useful’ life of a rental piece,” added Watton. A new dealer business system will soon give the business more information to support their efforts. About 85-90 percent of the equipment in Southeastern Equipment’s rental fleet is sold to end-users via their sales staff, while 10-15 percent is sold through the Internet or at auction. “We want 100 percent of the product to be sold to our end-users,” Watton said. The company takes pride in selling all makes and models of used equipment, placing a logo decal on all used equipment. Each

used piece is thoroughly inspected before the sale. According to Watton, the oil and gas market in Ohio is currently a shell of what it once was, putting pressure on the company’s margins. However, the company’s sales are still up and Watton feels Southeastern Equipment is far better off than other local dealers because they remained diversified. “When the market was hot we made the decision to continue to serve local customers, municipalities and private end-users. We didn’t forget the people who got us here.” Southeastern Equipment has its own way of dealing with market volatility. “We try to stay consistent, keep fair rates and iron moving, so the highs and lows aren’t so severe." Tracking the Market Gary McArdle is constantly monitoring the pulse of the rental market. Rouse Asset Services provides data to help dealers involved in rental track equipment values, utilization and rental rates. Its reports are based on data submitted by rental companies. According to McArdle, those firms represent approximately 60 percent of the volume of the RER Top 100 rental firms, and about a third of the U.S. rental market. RPO transactions represent a small portion of the data collected. “What we offer is good visibility as to where rates are in the marketplace, and where utilization is,” McArdle said. “With that information you can be a lot more strategic and data-driven about how to go to market.” Rouse data can also provide a look at the value curve for individual machine categories over time. Used equipment values, which had been trending lower since March, rebounded slightly in the latest available Rouse Report (September). According to McArdle, factors driving lower equipment prices and a modest softening in the market are rougher equipment coming out of oil and gas patches; a higher dollar that is reducing the purchasing power of foreign buyers, weakened international demand and a bit more equipment coming through to auction. Jeff Jeter, president of IronPlanet, an online auction company, also confirmed some downward pressure on the market. “As a result of some sectors slowing, there is some inventory building and the dispositions of some of these fleets have grown a little bit,” he said. Pricing is dependent on the asset class and segment. He says the market is holding “relatively flat” to “slightly up” across the board. Both Jeter and McArdle have seen a shift to data-driven decisionmaking when buying and selling rental assets. “Part of what we do is bringing the dealer information on pricing, equipment market values and pricing trends,” said Jeter. “In my eight years with the company we have seen a big change. Managing disposition strategies is as important as acquisition.” “We don’t tell clients how to price, what to buy or when to Continued on next page

December 2015 | Construction Equipment Distribution | www.cedmag.com | 53

>> RENTAL ISSUES sell,” noted McArdle. “We arm them with information that helps them think about those decisions.” Nationwide, McArdle estimates that dealers are disposing about 20-25 percent of their equipment at auction. “The other 75 percent goes through retail, a fragmented broker network and trades back to OEMS.” New Channels Offer Opportunity There are more channels for selling used rental equipment than ever before. For example, IronPlanet’s allEquip is a “buy now” model that gives sellers more control over pricing and another way to reach buyers interested in a private sale. With an audience that is 85 percent end-users, IronPlanet is generating a 15-18 percent higher sales price for items on allEquip than it does in its weekly online auctions. It’s part of the company’s strategy to help rental dealers sell upstream at a value somewhere between

an auction value and a retail market value. Ritchie Brothers EquipmentOne online marketplace (see June 2014 CED) is another choice for dealers who desire greater price control and more flexible timing than is provided at auction. Challenges for the Rental Market Despite differing approaches to rental, both dealers are challenged by high priced Tier IV machinery. “Rental rates don’t match the acquisition costs,” said Hugg & Hall’s Vollmer. In addition, Vollmer believes support from manufacturers has declined as they have turned their attention to rental. “Maintenance, parts support, and technical support, have been a big challenge for us,” added Vollmer. Watton believes some of the challenges facing the rental industry are self inflicted. When the market is up there’s a false sense

54 | www.cedmag.com | Construction Equipment Distribution | December 2015

of security, and when the market turns down, companies slash rates, cut corners and abandon best practices. “Unfortunately, all the costs during a downturn stay the same, and cutting rates hurts cash flow … when cash flow changes, equipment doesn’t get serviced as needed, the little things get over-looked,” he added. With a softening market, maximizing revenue from the sale of rental equipment is more important than ever. Better, more timely data, along with new sales channels, make this a great time to examine your disposition strategies to see if they could be contributing more to your bottom line. n JOANNE COSTIN is a freelance writer and marketing consultant focusing on the construction industry. She can be reached at jcostin@costincustom.com or 847-340-4075.

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sustainable energy source is still what we find and extract from the earth-oil and gas. I’m sure the day is coming when we will not be as reliant on basic commodities to fuel our economies…but that day is still a long way off.

in mind; it normally takes a year for a major to find alternatives to the use of and to ceas movement in energy prices to oil begin natural consumer gas. However, despite those impact behaviors. If REPORT that holds the o >> ECONOMIC efforts, the only real option for true today, consumers are just anow users JIM HUNTZINGER sustainableto energy is prices. still what beginning adjust source to lower That in mi we findmean and somewhat extract from the spending earth-oil as move should better and gas. I’m sure the day is coming impa we finish 2015 and on into 2016…good when for we will be economy. as reliant onIt basic After all, with more than one billion news the not U.S. is also true commodities that to fuelpost our economies…but automobiles using combustion engines interesting the 2008-2009 begin that day is still long way off. on the plant it’s hard to imagine recession; the aconsumer has been in a shou Fluctuating prices cause ripple effects in U.S. oil and gas industry replacing that fleet anytime soon. multiyear saving and debt reduction mode. we f After trend all, with thanas one That couldmore change the billion realty of news The underlying price of oil and gas is lower oil pricesusing sets in. automobiles combustion engines intere very volatile. As the is dependent on the plant it’s hard to imagine reces hereworld is a major effort underon these commodities, the research impactandof way involving replacing that fleet anytime soon. multi price movement has a spending major influence capital to find That alternatives to the use of oil and on everything from consumer behavior The underlying price of oil and gas is lowe The drop in prices gas. However, despite those to corporatenatural profitability. very volatile. As the world is dependent over the last 17 efforts, the only real option for a on these commodities, the impact of sustainable still 17 months to $47drop in The prices energy over source the islast price movement has a major influence whatfrom we find and extract frommajor the months $113 has had from $113 has had to $47 on everything from consumer behavior earth-oil and gas. I’m sureindustry. the day impacts on the U.S. oil and gas to corporate profitability. major impacts on is coming when we will not be as

Oil, Gas Industry Experiencing Turbulence

reliant on basic commodities to fuel The drop in prices over the last 17 our economies, but that day is still a months to $47 from $113 has had major long way off. After all, with more than one impacts on the U.S. oil and gas industry. billion automobiles using combusThis good news for the overall health of the tion engines on the planet, it’s economy, but in the short run causes growth hard to imagine replacing that fleet to be slower. The conclusion is that the anytime soon. consumer is in better financial shape and The underlying price of oil and able to spend when ready or necessary. This gas is very volatile. As the world is dependent on these commodities, econ the impact of price movement has a to b major influence on everything from cons consumer behavior to corporate able profitability. The drop in prices over the last 17 months to $47 from $113 has had major impacts on the U.S. oilprovided and gasby Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, © 2015 BOK Financial Corporation. Services Bank of Kansas industry. City, Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust, divisions of BOKF, NA. In the United States, drilling activinteresting that post the 2008-2009 recession, ity has been curtailed; wells shut down, new the consumer has been in a multiyear saving production ceases and job losses have followed. and debt reduction mode. On the other hand, consumers, who are heavy That trend could changeServices as the reality of by Bank of © 2015 BOK Financial Corporation. provided users of energy, have benefited. Keep this in Bank of Kansas City, Bank of Oklahoma, Bank of Texas lower oil prices sets in. This is good news for and Colo mind: it normally takes a year for a major the overall health of the economy, but in the movement in energy prices to begin to impact short run causes growth to be slower. The consumer behaviors. If that holds true today, conclusion is that the consumer is in better consumers are just now beginning to adjust financial shape and able to spend when ready to lower prices. That should mean somewhat or necessary. better spending as we finish 2015 and on into 2016, good news for the U.S. economy. It is also The oil rig count has dropped significantly in

the U.S. oil and gas industry.

56 | www.cedmag.com | Construction Equipment Distribution | December 2015

significantly in the last year but production has only recently started to decline.

Source: Strategas Research Partners

the agreement between U.S. recent crude. Inventory levels will needUS/Iran to Jim could potentially addfor anoiladditional come down in order prices to 500,000 turn Ch barrels or more to world supply. >> ECONOMIC REPORT higher. per day BO Finally, the International Energy Agency projects that world demand for crude will grow by as much as 1.7 million barrels per day. Even while world GDP growth is modest, the demand for energy continues to grow. Low prices are stimulating demand. Adjusting production and inventory levels of oil will take time but by the second half of 2016, maybe sooner, oil prices should be in recovery mode. Source: Strategas Research Partners

Source: Strategas Research Partners

the last year production has recently There isbuthowever aonly high inventory of started to decline. U.S. crude. Inventory levels will need to There is however a high inventory of U.S. come downlevels in order oil prices to turn crude. Inventory will needfor to come down in order for oil prices to turn higher. higher.

Currently, supply growth in North America has pushed oil markets into an Jim Huntzinger oversupplied situation. Chief Investment Officer

BOK Financial Corporation Currently, supply growth in North America Additionally, OPEC’s unwillingness to has pushed oil markets into an oversupplied cut production has also pushed the oil situation. Additionally, OPEC’s unwillingness to cut markets into an oversupplied situation. production has also pushed the oil markets Today OPEC produces 31.6 million into an oversupplied situation. ® WAIN-ROY barrels per day versus the agreed to Today OPEC produces 31.6 million barrels Tractor Loader Backhoe and Excavator quota of 30 million barrels a day which per day versus the agreed to quota of 30 million barrels a day, which has contributed ® the supply glut. has contributed to CENTRAL FABRICATORS to the supply glut. Large Excavator, Mining/Mass Excavation The oil markets are also watching Iran, as and Wheel Loader the recent agreement between United States/ GANNON® Iran could potentially add an additional Compact Excavator and Tractor Loader Backhoe 500,000 barrels per day or more to world Source: Strategas Research Partners supply. ALITEC™ Finally, the International Energy Agency Skid Steer Currently, growth in North projects that worldsupply demand for crude will © 2015 BOK Financial Corporation. Services provided by Bank grow by as much as 1.7 million barrels per Bank of Kansas City, Bank of Oklahoma, Bank of Texas and C America has pushed oil markets into an day. Even while world GDP growth is modest, oversupplied situation. the demand for energy continues to grow. Low prices are stimulating demand. Call or visit us online Adjusting production and inventory levels Additionally, OPEC’s unwillingness to to learn how you can of oil will take time, buthas by the also second pushed half become a Woods dealer. cut production the oil of 2016, maybe sooner, oil prices should be in markets into an oversupplied situation. recovery mode. n woodsequipment.com Today OPEC produces 31.6 million 800-848-3447

EQUIPMENT. BRANDS. MARKETS.

barrels per day versus the agreed to JIM HUNTZINGER is the Chief Investment Officer of quota of 30 million barrels a day which BOK Financial Corporation. has contributed to the supply glut.

December 2015 | Construction Equipment Distribution | www.cedmag.com | 57

>> GOOD COMPANY ERINN HUTKIN

Midwest Manufacturer Diamond Mowers Focuses on Customer Service, Quality Products Distribution reach has grown to 280 dealers internationally and domestically

hen Sioux Falls, South Dakota-based Diamond Mowers was founded 16 years ago, there were four employees and little else. The company manufactured and sold brush- and grass-clearing equipment and had plenty of what mattered – talent, experience and a goal of offering the best in customer service. But essentially, recalls company Vice President Tim Kubista, “it started with nothing.” In fact, he said founder Bill Doyle Sr. has told him stories from the early years, when he wondered how he was going to make payroll. The Midwestern company now employs nearly 100 people. It’s what Kubista calls “confident” and “very well-managed.” In addition to treating the customer right – one of the values on which the company was founded – Kubista said Diamond Mowers also offers innovative products that few, if any, other manufacturers in a competitive market offer clients. “We are a company that people want to work for,” Kubista said. “We have some of the best talent in the business working for Diamond Mowers.” Doyle said Diamond Mowers was actually his second go-around in the business. Kubista said four decades ago, Doyle founded a company called Tiger Mowers, which today is one of Diamond Mower’s competitors. With Doyle at the helm, Kubista said, Tiger Mowers grew to be successful, but Doyle eventually made the decision to sell the company. He then transitioned into becoming a Tiger Mowers dealer and became the No. 1 Tiger Mowers dealer in

Diamond Mowers designs and manufactures all of its own products.

the country. However, the new owner eventually sold Tiger Mowers to a competitor, Alamo Industrial, which still owns Tiger Mowers today. Doyle remained a Tiger Mowers dealer owner, but as time passed, he felt the company no longer had “the focus it once had on making customers successful.” That prompted Doyle to close his dealership and start over by launching Diamond Mowers in 1999 with his sons, Bill Doyle Jr. and Tom Doyle. “It was all about customers,” Kubista said. “(Doyle Sr.) felt Tiger Mowers got in his way of ultimately taking care of the customer.” Today, Doyle Sr. is retired, and Doyle Jr. is Diamond Mowers' CEO. Tom Doyle also remains involved with the company. But through it all, Kubista said the company always has upheld and fulfilled

58 | www.cedmag.com | Construction Equipment Distribution | December 2015

its commitment to customer service. For instance, when he came on board three years ago, Kubista recalls Doyle Sr. came to him one day, put a hand on his shoulder and said he needed to remember not to worry about the first sale. Now, he told Kubista to worry about the fifth. By that, he meant that while a lot of companies nickel-and-dime a customer to get that first sale, at Diamond Mowers, the focus was doing whatever it took to take care of the customer. It’s a philosophy Kubista adopted as well. He said he once had a customer that purchased five mowers, and he fully admits the product was not well-designed. In fact, after just five months, four of the mowers were broken, and as a result, the customer was angry and upset. So without hesitation, Kubista agreed to replace every one with a more heavy-duty

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>> GOOD COMPANY

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product – an offer, he said, that came at a significant cost to the company. He even made the gesture without asking someone higher up for approval. “That’s the mantra from the Doyles. Take care of the customer,” Kubista said. If he hadn’t done that, Kubista knows there was “no chance” the customer would have bought from Diamond Mowers ever again. Which, he said, the customer continues to “think very highly of us and wants to buy nothing but our product.” “[The company] knows if they take care of customers today, they will be with us five or 10 years into the future,” he said. “That’s what creates value.” Still, Kubista said Diamond Mowers exists in a business where there’s a “tremendous amount of competition in every corner,” with competitors who build good products. Along the way, he thinks the company has not only succeeded because of its customer service, but also because “we have better products and better support.” Operating with 2.5 acres under its roof, where products are designed and manufactured, Kubista said Diamond Mowers is working on new innovations that it hopes to launch in the coming years. He said the company recently moved into a new factory that’s three times larger, which will allow it to expand capacity and capabilities. The company distributes to 280 dealers both internationally and domestically. It manufactures products that are used for brush- and grass-cutting, as well as vegetation management. One of its most recent products is a skid-steer attached forestry brush cutter, which was released this year. Kubista said the product replaces a traditional, drumstyle brush cutter, and contractor customers said it leaves

60 | www.cedmag.com | Construction Equipment Distribution | December 2015

workers less fatigued because it’s easier to operate. It also allows twice as much work to get done, and its parts cost less than those of commercial drum cutters. Instead of using a drum, the machine uses a heavy, 800-pound disc with hardened steel teeth that acts as a flywheel. It stores energy and has 300 horsepower within the disc. Meanwhile, he said the drum style can’t store energy. The only energy source is supplied by the machine providing the power, typically 70 to 90 hydraulic horsepower. Since being released in June, mainly to commercial contractors and utility companies, Kubista said sales have exceeded projections by 500 percent. The tool is exclusive to Diamond Mowers, he said, and like all of its products, it comes with a 30-day money-back guarantee to give customers peace of mind so they know they’re taken care of. “To my knowledge, none of our competitors have the same promise,” he said. “If you don’t love it, we’ll buy it back.” As company leaders look toward the future, Kubista expects Diamond Mowers to expand its dealer network, both in the United States and internationally and he predicts the team will grow as a result. “The company will be growing on all fronts,” he said. No matter how fast or how far it expands, he expects those at Diamond Mowers to remain committed to customer service. n

ERINN HUTKIN is a freelance writer. Reach her at AED@LocalLabs.com.

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As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2013 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-7655) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523

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December 2015 | Construction Equipment Distribution | www.cedmag.com | 61

>> 40 & BELOW ERINN HUTKIN

Tyler Equipment’s Brooke Tyler IV Works His Way Up Family Corporate Ladder Brooke Tyler, IV is one of four members involved with this family-owned business

Tyler has found his niche in the family business and is poised to help lead the company into the future.

ack in 1922, Brooke Tyler, IV's great-grandparents founded Tyler Equipment – a small, largely Volvoselling dealer based in New England that focuses on parts, service, sales and rentals. Over the years, the company grew from its base in East Longmeadow, Massachusetts and expanded to a branch in Berlin, Connecticut. It was passed down from generation to generation and by the time Tyler IV came along, the business was established to where Tyler had childhood memories of visiting grandpa at work in the corner office, climbing into the chair at his desk and coloring with crayons. Today, Tyler is 41 and works in the Connecticut office as vice president of customer support for Tyler Equipment. His children now visit grandpa in the corner Brooke Tyler, IV office in Massachusetts – a seat he expects to occupy one day. intention of doing his own thing. Even though he fully planned to spend his He went to college in upstate New York at St. life in New York – perhaps writing jingles for Lawrence University, where he majored in music advertising firms – Tyler has found his niche in and planned to work in the ad business. He the family business and is poised to help lead the was set on moving to the city with friends after company into the future. graduation, piling into an apartment and trying When that happens, he’ll have had a hand to survive. in nearly all aspects of the business, starting “I had every intention of doing that,” he said. when he was a child doing odd jobs around the Then opportunity changed his mind. office after school or on vacation from school – He spent a year driving a truck cross-country sweeping floors, taking out the garbage, dusting with a team that competed in hydroplane boat shelves. That evolved into working at the comparacing – a life-long hobby he still takes part in ny full-time after college and rising through the today. It’s a pastime he loves, but he quickly ranks to one of its top decision-makers. found out “there’s zero money in it.” “I’ve definitely always been around (the About that same time, changes were taking business), but was never pushed into it,” he said, place in the company, and discussions arose explaining that if anything, his family encourabout how many Tylers should have a hand in aged him to do something else. “It’s a very the family business. volatile business, and it has ups and downs…it “(Company leaders) weren’t sure if they wasn’t forced either way. There was no pressure wanted to saturate the company with Tylers… whatsoever to come into the business.” they didn’t want it to get extremely top-heavy In fact, as a younger man, Tyler had every and go under,” he said. “There were questions of

62 | www.cedmag.com | Construction Equipment Distribution | December 2015

>> 40 & BELOW how many family members to bring in.” It was 1998, and he was at the right age to join the company – and he needed a steady paycheck. At the same time, there was an opportunity to get involved. Volvo just introduced a compact equipment line, and the company needed an account coordinator. The way the business is structured, coordinators serve as sales managers for specific product lines – Tyler has one person focused on wheel loaders, for instance – and these people are keenly aware of every aspect of the product line, from parts to trade-in values and everything in between. In addition to needing an account coordinator for the new Volvo equipment, a sales territory opened, so there was also a spot for a territory salesman – essentially a dual role. Along the way, Tyler found he was placing “strange pressure” on himself to join the company – even though no one in the family was pushing him to do so. His grandfather was still alive at the time and involved in the business. Tyler felt if the company had been around this long, and he was next in line, he “owed it to my parents and grandparents to keep it going.” “Absolutely nobody was pushing it,” he said. “It was something that I manifested myself.” As a result, he decided to join the company, thinking he could give it a shot and see if he liked the work. “I thought I could always quit later on,” he said, “and I have been here ever since.” His next role within the company – an account coordinator for excavators – came as the result of a fellow employee leaving to work for Volvo. The outgoing employee recommended that Tyler take his seat. The same turn of events led him to his current job when his cousin – who worked as vice president of customer support – retired six years ago, leaving Tyler to fill the role. As vice president, his main responsibilities include overseeing parts, service and warranties for the whole company. He also serves as branch manager for Tyler’s Berlin, Connecticut, facility while working as account coordinator for the company’s hydrolic excavator, Sennebogen, and Genesis lines. However, since it’s a small company with just 55 employees across two locations, his job also comes with “wearing a lot of hats,” meaning he’s also charged with tasks such as changing lightbulbs to making sure the company Christmas party is put together. “That’s the reality part,” he said. But his role also gives him a place among Tyler’s decisionmaking team. Along with his father, the company’s president; his uncle, the vice president; and others, he’s been involved with major purchases, changes in building locations and big management decisions.

From pulling wrenches in the shop as a child to manning sales territory to his current job on the customer support side, Tyler said he’s worked in all facets of the business, but the financial realm is something he intends to learn about over time. While he said the chief financial officer “eats, sleeps and breathes that stuff,” he feels learning more about finance through night classes or online schooling would help him “have more meaningful conversations” on the job “without spending half the time explaining what’s going on.” “As far as priming for the corner office, that’s something I need to explore,” he said. “I definitely need to get a better understanding of that side of it.” However, he expects to have time before he sits at the president’s desk. The current president – his father -- just turned 70, and he expects his dad to mirror the work ethic of his grandfather -- who was active in the company well into his 80s. Even then, he joked, his grandfather still came into the office in the morning, read the paper, went to lunch, came back and yelled at someone for parking in the wrong spot before telling a few stories and going home. “My father has the same mentality,” he said. Should his father retire or step down, Tyler’s uncle is technically next, but he’s expected to retire sooner, which “would move me in at some point.” “I suppose, at some point, I’ll be sitting in the corner office,” he said. Today, Tyler is one of four family members involved with the company, which occupies a location in Connecticut while still operating its office in Massachusetts. The company outgrew its two locations in Connecticut and moved to a third after a merger, then moved again to a space that was more than double the size. They’re now celebrating five years in the bigger space. In the coming years, Tyler expects the company to expand its product line, and he said leaders are open to “growing our footprint if an opportunity arose.” For instance, if a dealer in a nearby place such as New York or Vermont were to close, those at Tyler would “love to have a conversation” about stepping in to cover the territory. And when it comes to keeping the business in the family, he said it’s hard to tell what will happen as the “next closest generation,” his son, Brooke V, is only in second grade. Just like his parents, he’s hesitant to push the business on his son. But his mom helps with Brooke V and his sister quite a lot, where their time often includes going to visit grandpa at work in the corner office. n ERINN HUTKIN is a freelance writer. Interested in contributing to CED? Send us your story ideas or reach us at pr@aednet.org

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>> EASY WINS

STEVE CALECHMAN

Working the Holiday Party How to talk business without ruining the holiday party

Know your first line. The whole point of being at the party is to be remembered.

ork-related holiday parties provide opportunities to find new customers and build relationships with existing ones. But here’s the thing: It’s a party. You can talk business, but talk too much and risk coming off as tone deaf and opportunistic. There’s an art in selling yourself and your company just enough without getting in the way of the celebrating. Carol Kinsey Goman, a leadership coach and author of "The Silent Language of Leaders," suggests how to achieve the balance: • Know your first line. The whole point of being at the party is to be remembered. Just like with a business idea, have an analogous elevator pitch for your intro, something quick, specific and punchy about your company. “Awardwinning service department” or “largest dealer in the area” are details that linger. But cement the impression by … • Having your business card ready. They might seem antiquated, but they maintain a utility. • Remembering names is a challenge. The card makes a connection and gives context. Offer yours near the beginning of the conversation, ask for theirs in return and read it. The information might inspire questions and conversations. Use the back of the card to make additional notes, particularly anything you wanted to follow up on. • Follow the stream. Customers liked to be taken care of and listened to, so display your listening skills. If a person wants to talk business, join in, but if the topic strays, go with that

and ask open-ended questions, listening for problems to solve. At that moment, the person might need a preschool or doctor recommendation more than anything else. Ultimately, your guiding principle with every interaction is, How can I help this person? • Remain open. You believe that you’re approachable but your body language might say otherwise. Minimize barriers. Don’t have your phone immediately accessible. Hold a drink or a plate of food, but not both – you want to be able to shake hands; it creates an immediate bond. • Keep cold drinks in your non-dominant hand. When you’re talking with others, lean in slightly, make eye contact and smile in a slowgrowing way. It looks organic and natural, and, even in a group, people will see you as accessible. • Breaking into the discussion. It’s easier to move into groups with more than two people –conversations are less private. Stand outside the circle for 30 seconds, making eye contact and pulling your shoulders back. Remaining tall and confident, and looking receptive will earn you an invitation to join. • When it’s time to go. Take a glance at a person’s feet. If they rotate away from you, they’re done talking, and like with your intro, be ready with an exit line, like, “It was great talking,” “I have to go but I wanted to introduce you to …” or “I’ll follow up with you on that.” If you go with the latter, make sure you do it with something, an email, phone call, LinkedIn invitation or better still, a hand-written note if appropriate. It’s a seldom-done move, so it stands out even more. n

STEVE CALECHMAN is a freelance journalist in the Boston area. He’s a contributing editor for Men’s Health and his work has appeared in The Boston Globe Magazine, The Old Farmer’s Almanac and Delta’s Sky magazine.

64 | www.cedmag.com | Construction Equipment Distribution | December 2015

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