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December 2016

CED

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

Get the Most Out Of Your CONDEX Experience at AED’s 2017 Summit n The Trump Presidency n Donor Profile The opportunities McCann Industries, and challenges of the next four years

Inc. continues strong relationship with The AED Foundation.

n A Closer Look

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contents CED Magazine | December 2016

vol. 82 no. 12

www.cedmag.com

>> FEATURES

38 36 Fighting

For A Cause

2017 AED Foundation Annual Campaign to focus on “Building a Dealer Model for Success.”

40

Insider's Look

Jim McCann is president and CEO of Addison, Ill.-based McCann Industries Inc., the launched by his father, Richard J. McCann, in 1967, as the McCann Construction Specialties Company.

CONDEX Exhibitor Preview

AED Summit's Construction Dealer Expo (CONDEX) is your chance to meet with over 100 companies that provide: the products you need to grow your dealership, the services you need to improve your dealership, the resources you need to take your dealership to the next level.

58

Commercial Credit Group The construction equipment field isn’t a cookie-cutter industry, so when it comes to financing or leasing equipment, a cookie-cutter approach from a traditional lender just won’t do.

60

The Trump Presidency What Donald Trump achieved on Election Day was both unexpected and historic. Despite unprecedented fragmentation and disunity in the Republican Party, Trump excited the base and turned out the vote. Read about the opportunities and challenges that are to come within the next four years.

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


contents

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

>> FEATURED COLUMNISTS Sen. John Hoeven, R-N.D. Michael Dexter AED Steve Johnson Vice President, Foundation Operations Heidi Bitsoli Freelance writer Karen Algeo Krizman Freelance writer Christian A. Klein Vice President of Government Affairs

CED Magazine | December 2016

vol. 82 no. 12

20 >> Regional Report

In the age of technology, there is still one absolute necessity for success: human interaction

22 >> View From The Hill

Move America can boost infrastructure investment, create jobs, grow economy

24 >> 2016 Ottawa Briefing Overview

Canadian distributors bring industry’s message to Parliament Hill during 2016 AED Ottawa Briefing

28 >> Dealer Development

Christine Corelli Corelli Associates

Hinds’ Diesel Technology Academy a model partnership

30 >> Teamwork

Eric Stiles, Sentry Insurance AED Preferred Provider

You're only as good as your pit crew

AED leadership meets with House Speaker Paul Ryan

Three critical questions about your dealership

What do distributors need from the equipment triangle?

Protect your dealership’s data from hackers demanding ransom

Brian Gareau Brian Gareau, Inc. Troy Harrison Max Hernandez

>> ADVERTISING CONTACTS Vice President of Sales JON CRUTHERS 800-388-0650 ext. 5127 jcruthers@aednet.org Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 5117 aramirez@aednet.org Production Manager MARTIN CABRAL 800-388-0650 ext. 5118 mcabral@aednet.org Since 1920 Official Publication of

34 >> Workplace Differentiation 72 >> Business Planning

74 >> Equipment Triangle 80 >> Risk Management On the cover

Look closely at our cover photo and you'll see me at the controls with Mike Watt, LiuGong's Excavator Product Manager for North America. What a thrill it was to sit in the cockpit and control such a massive piece of machinery during my visit to LiuGong in San Diego, California. I was truly in awe of how responsive it was - almost like a living creature. Those in the field see construction equipment every day and perhaps don't have the time to really appreciate the science, engineering and craftsmanship that go into these machines. But coming from an office where we're reading and writing and talking construction equipment, I have a renewed appreciation for what's happening in our industry. To learn more about the event and the exciting new innovative machines at LiuGong, please see page 18.

– Sara Smith, CED Magazine director

650 E. Algonquin Road, Suite 305 Schaumburg, IL 60173 630-574-0650 fax 630-457-0132

As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2016 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173 Phone: 630-574-0650. Periodicals postage at Schaumburg, Ill. 60173 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173.

4 | www.cedmag.com | Construction Equipment Distribution | December 2016


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register online www.aedsummit.com

2017 summit & condex

Summit is the only place for dealer-specific education!

January 10-13, 2017 | Chicago, IL | Hyatt Regency Chicago

• Determine how to get the most of CONEXPO-CON/AGG 2017

Focus on Your Dealership and Maximize your Business Opportunities

• Discover key issues for the construction equipment industry

New to our 2017 Summit, AED is featuring professional dealer education sessions on Tuesday, January 10 - Thursday, January 12! AED wants to provide a convenient program for attendees to grow and develop skills unique to the construction equipment industry. With each session, there are tremendous opportunities to expand on existing knowledge while learning new, valuable information to take back to your dealership. Visit www.aedsummit.com to view all of the on-site educational options available.

• Enhance your technician strategy and align your talent • Detect how to maximize your parts, service and sales profitability • Learn the top reasons why your rent-to-rent fleet is under performing

Summit Keynote Presentations

Dick Cheney

Former U.S. Vice President & Secretary of Defense

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Richard Picciotto FDNY Chief & Highest Ranking Firefighter to Survive the World Trade Center Collapse

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>> FROM THE CHAIRMAN

WHIT PERRYMAN

Looking Back at 2016

AED's chairman reflects on the year's successes and looks forwards to what the new year and leadership will bring.

The future for the construction equipment industry is bright because of AED’s work.

As I look back at my time as AED Chairman in 2016, I can’t help but think of the accomplishments that AED and our members have made throughout the year. It has been a year of growth and change for AED, one that I am proud to have been a part of. This year has seen growth in the distribution industry. Having distributors involved in The Association leads to better networking opportunities and business brainstorming between members, especially during events. We want to see these new members attend more AED events for this reason, and 2016 has already seen an increase on this front. Having people with which to discuss the industry and its challenges will only help all of us to grow. New exciting partnerships with other organizations have helped with this growth as well. AED partnered with AEM to create an exciting and informative Equipment Economic Forum. Having customers and clients work together helps create better working relationships on both sides, which is something vital to every dealership. AED plans to continue these partnerships at the Washington Fly-In, where the

BRIAN P. MCGUIRE AED President & CEO

Equipment Dealers Association (EDA) will be participating by hosting. This year has also seen the largest donations in AED Political Action Committee (PAC) contributions in many years. This committee helps to elect federal candidates who share the views of our industry and help us speak with one unified voice. It is vital that we make our issues heard by our politicians, and programs like these will help us continue to do so. An additional way we can discover issues within the industry is through research. Research by AED and the College of William & Mary has found a lack of skilled workers in the industry. Recognizing the problem is the first step, and AED is now on to solving it. Next year will bring a new installment of this research study that will address how these problems can be solved. As I step down from my position, I look forward to seeing how my successor will influence this organization. The future for the construction equipment industry is bright because of AED’s work.

ROBERT K. HENDERSON AED Executive Vice President & COO

JASON K. BLAKE AED Senior Vice President & CFO

>> OFFICERS

>> AT-LARGE DIRECTORS

>> REGIONAL DIRECTORS

WHIT PERRYMAN Chairman Vermeer Texas-Louisiana

TODD BACHMAN

WES STOWERS Vice Chairman Stowers Machinery Corp.

Florida Coast Equipment, Inc.

DIANE BENCK Senior Vice President West Side Tractor Sales Co.

Cowin Equipment Co., Inc.

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

TODD HYSTAD Vice President Vimar Equipment Ltd.

JAMES P. COWIN GAYLE HUMPHRIES JCB of Georgia LARRY R. MILLER

MICHAEL D. BRENNAN Vice President Bramco, LLC

Kelbe Bros. Equipment Co. Inc.

JOHN C. KIMBALL VP of Finance Kimball Equipment Company

4 Rivers Equipment, LLC

DON SHILLING Immediate Past Chairman General Equipment & Supplies, Inc. DENNIS VANDER MOLEN Foundation Chairman Vermeer MidSouth Inc.

JOHN SHEARER KENNETH E. TAYLOR Ohio CAT

December 2016 | Construction Equipment Distribution | www.cedmag.com | 7


>> FROM THE PRESIDENT

BRIAN P. McGUIRE

AED Moves Into 2017 With One Thing on Our Mind — Success

T

New member experiences are on the horizon!

his has been a year of exciting new growth and changes within our Association. Every step taken by AED is taken with our members in mind, so our accomplishments become yours. We want to provide you with the best experiences possible, and we hope this year has provided you with many. Our first conference partnership with the Association of Equipment Manufacturers (AEM) for our Equipment Economic Forum was a huge success. Hearing from some of the top dealership and manufacturer executives made for great learning experiences and allowed both dealers and manufacturers to see all sides of construction industry issues. It also provided the opportunity for manufacturers to network with customers, with the goal of making each business better. With success in mind for 2017, we will also be teaming with the Equipment Dealer Association (EDA) to fight for dealers' and manufacturers' rights on Capitol Hill at our Washington Fly-In. We are excited to see how our members will learn and grow from this pairing with dealers from other industries. This coming year, we will continue to enhance association events. AED’s Management Development Institute will assist upcoming dealership talent to grow their leadership skills, with the idea of helping them prepare for future challenges

in the industry and career growth in their dealership. We will also introduce new rental seminars, the Basic Rental Management Seminar and the Advanced Rental Management Seminar. The Basic seminar will be for individuals and dealerships that have limited experience with managing a rental fleet (less than 50 machines), and the Advanced seminar will be for individuals and dealerships that are primarily focused on strategically growing rental revenues. With the rental field growing exponentially each year, we are looking forward to providing more options in this field. AED is in the process of instituting a learning management system, which will be called our Dealer Learning Center. We have created an easy-to-use system for our self-study courses, certification program and webinars (live or on-demand). AED wants to make it easier for you to find exactly what you’re looking for, so our search options make it simple to find a category and the content that suits you best. Change can be nerve-wracking but also exciting, and we think that AED’s changes will help us to provide you with exactly what you’re looking for. We hope to continue to do all we can to make your involvement with us as beneficial as possible.

BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at bmcguire@aednet.org.

THE AED FOUNDATION BOARD DENNIS VANDER MOLEN Chairman Vermeer MidSouth, Inc. JOHN RIGGS IV Vice Chairman J A Riggs Tractor Co. JOHN D. CRUM Treasurer Wells Fargo Equipment ROBERT K. HENDERSON President The AED Foundation A. ROY KERN Past Foundation Chairman Equipment Corporation of America MICHAEL D. BRENNAN AED Board Representative BRAMCO, LLC

DAVID REILLY John Deere Construction & Forestry JUDY WORRELL Berry Companies, Inc. DENNIS ROMANSON DEUTZ Corporation ROBERT M. CRISTE Stephenson Equipment, Inc. RYAN MAY Century Equipment Co. TODD COFFEY Brandeis Machinery and Supply Co.

8 | www.cedmag.com | Construction Equipment Distribution | December 2016

ANTHONY FASSINO Caterpillar, Inc. KENNETH SILVERMAN Volvo Construction Equipment DR. DONALD M. CLAYCOMB State Technical College of Missouri SONJA METZLER Ohio CAT MIKE HAYES Komatsu America Corporation KEN PUTTMANN Honnen Equipment Co.


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>> AED INSIDER

Statement from Brian P. McGuire, president and CEO of AED, on the results of the 2016 U.S. federal elections

U.S. Election Results Bring Immediate Opportunity For American Growth and Investment AED, construction equipment distributors and manufacturers across North America look forward to working with President-elect Donald Trump and members of the next Congress on pro-growth policies to put the United States on strong economic footing for years to come. There’s an immediate opportunity to rebuild our crumbling infrastructure, reform the nation’s tax code, develop the next generation of skilled workers and lower the cost of doing business for small companies. The voters have spoken, and AED is standing by to work with members of both parties to create an economic environment that encourages job creation, growth, investment and entrepreneurship. Read more about President-elect Trump on Page 60. 10 | www.cedmag.com | Construction Equipment Distribution | December 2016


>> AED INSIDER AED Again Names PwC and Accruit Preferred Providers of Like-Kind Exchange Services Associated Equipment Distributors (AED) named PricewaterhouseCoopers LLP (PwC US) and Accruit the preferred providers of like-kind exchange (LKE) services for the second consecutive year in 2016. For more than a dozen years, PwC and Accruit have been supporting members of the AED, and they currently provide LKE services to over 75 AED members. “Each year, PwC and Accruit adapt to new challenges faced by our members. Our continued relationship with the leading providers in this space just makes good sense to the industry and to our association,” said Brian McGuire, AED president and CEO. PwC and Accruit’s joint business relationship combines PwC’s tax and technology proficiencies with Accruit’s qualified intermediary (QI) expertise. Together, the two companies service more than 170 clients across 20 industries with integrated 1031 like-kind exchange programs. This unique relationship enables

PwC and Accruit to structure comprehensive LKE programs with a clear separation of tax and like-kind exchange services required by the Internal Revenue Code. Accruit CEO Brent Abrahm expressed satisfaction with the company’s continued relationship with AED. “We are pleased that the AED continues to find value in LKE offerings tailored to fit the needs of their members.” According to Dave Fowler, leader of PwC’s LKE Services practice, “Our relationship with the AED is one of mutual confidence developed over time. We’re privileged to continue to bring value to the organization and its members.” With offices in 157 countries and more than 223,000 people, we are among the leading professional services networks in the world.

We help organizations and individuals create the value they’re looking for, by delivering quality in assurance, tax and advisory services. PwC’s like-kind exchange service has helped over 170 companies enhance cash flow and tax deferral on the sale of assets by automating the processes needed to satisfy stringent IRS LKE requirements and provide the tax reporting necessary for tax compliance. Accruit LLC is the nation’s leading provider of qualified intermediary and 1031 like-kind exchange program solutions, serving more than 20 industries. Accruit handles all types of LKEs, including real estate, business assets, collectibles and franchises; they facilitate all types of forward, reverse and improvement exchange transactions nationwide. Accruit also provides escrow services through its subsidiary, Bankers Escrow. For more detailed company information, please visit www.accruit.com.

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>> AED INSIDER AED Commends the Construction Equipment Industry’s Congressional Champions AED unveiled its 2016 “Key Vote” analysis in “Construction Equipment Distribution” (CED) magazine’s September issue. The Association compiles the scorecard every election year to educate and inform the equipment industry about lawmakers’ support for the industry legislation agenda. This year’s analysis includes votes on highway, tax, energy, regulatory, and trade legislation. In the House, 52 out of 435 lawmakers scored 100 percent, while 13 senators out of 100 had perfect voting records on AED’s priority issues. The Illinois and Pennsylvania congressional delegations led the way with six top performers each,

followed close behind by the New York, Ohio and California delegations (five each). “Congratulations to the distinguished men and women who proved to be true champions for the construction equipment industry on Capitol Hill during the 114th congressional session,” said Brian P. McGuire, AED’s president and CEO. “These lawmakers represent a diverse group of states from across the country and deserve to be commended for their commitment to progrowth policies. We look forward to expanding this list in the next Congress as AED continues to educate lawmakers about the issues important to our industry.”

HOUSE OF REPRESENTATIVES Rep. Robert Aderholt (R-Ala.) Rep. Dan Benishek (R-Mich.) Rep. Mike Bost (R-Ill.) Rep. Charles Boustany (R-La.) Rep. Kevin Brady (R-Texas)* Rep. Susan Brooks (R-Ind.) Rep. Larry Bucshon (R-Ind.) Rep. Ken Calvert (R-Cal.) Rep. Tom Cole (R-Okla.) Rep. Barbara Comstock (R-Va.) Rep. Ryan Costello (R-Pa.) Rep. Kevin Cramer (R-N.D.) Rep. Ander Crenshaw (R-Fla.) Rep. Carlos Curbelo (R-Fla.) Rep. Rodney Davis (R-Ill.) Rep. Jeff Denham (R-Calif.) Rep. Charlie Dent (R-Pa.) Rep. Bob Dold (R-Ill.)

Rep. Dan Donovan (R-N.Y.)* Rep. Renee Ellmers (R-N.C.)* Rep. Michael Fitzpatrick (R-Pa.)* Rep. Rodney Frelinghuysen (R-N.J.) Rep. Sam Graves (R-Mo.)* Rep. Richard Hanna (R-N.Y.) Rep. Gregg Harper (R-Miss.) Rep. Evan Jenkins (R-W.Va.) Rep. Bill Johnson (R-Ohio) Rep. David Joyce (R-Ohio)* Rep. John Katko (R-N.Y.) Rep. Adam Kinzinger (R-Ill.) Rep. John Kline (R-Minn.) Rep. Tom MacArthur (R-N.J.) Rep. Cathy McMorris Rodgers (R-Wash.) Rep. Martha McSally (R-Ariz.) Rep. Tim Murphy (R-Pa.)

Rep. Devin Nunes (R-Calif.) Rep. Erik Paulsen (R-Minn.) Rep. Joe Pitts (R-Pa.) Rep. Tom Reed (R-N.Y.) Rep. Dave Reichert (R-Wash.) Rep. Harold Rogers (R-Ky.) Rep. Mike Simpson (R-Idaho) Rep. Elise Stefanik (R-N.Y.) Rep. Steve Stivers (R-Ohio) Rep. Glenn Thompson (R-Pa.) Rep. Pat Tiberi (R-Ohio) Rep. Dave Trott (R-Mich.) Rep Michael Turner (R-Ohio) Rep. Fred Upton (R-Mich.) Rep. David Valadao (R-Calif.) Rep. Greg Walden (R-Ore.) Rep. Mimi Walters (R-Calif.)

SENATE Sen. Lamar Alexander (R-Tenn.) Sen. Kelly Ayotte (R-N.H.) Sen. Roy Blunt (R-Mo.)* Sen. Dan Coats (R-Ind.) Sen. Thad Cochran (R-Miss.) Sen. Lindsey Graham (R-S.C.)* Sen. Dean Heller (R-Nev.) Sen. John Hoeven (R-N.D.)

12 | www.cedmag.com | Construction Equipment Distribution | December 2016

Sen. Johnny Isakson (R-Ga.) Sen. Ron Johnson (R-Wis.) Sen. Pat Roberts (R-Kan.) Sen. Mike Rounds (R-S.D.) Sen. Roger Wicker (R-Miss.)

* Indicates the lawmaker was not present for one or more AED-key votes.


>> AED INSIDER

Jason K Blake @aedcfo AED 20 Group kicked off in Stranton, PA. @AEDSocial

Accruit 1031 @Accruit AED again names PwC & Accruit preferred providers of Like-Kind Exchange services https://shar.es/1IClky #construction #equipment @AEDsocial

#AEDGetSocial EDA @Equip_Dealers Members, SAVE THE DATE! Don’t miss out on EDA’s joint legislative flyin with @AEDSocial!

Darian Kovacs @ dariankovacs At @NorthviewGolfCC for the @AEDSocial breakfast about making social media work for you for @ JellyMarketing

ECA @EquipCorp With Election Day still on everyone's minds, this shot of our president Roy Kern and wife Lori at the 2015 @AEDSocial meeting seems fitting for #TBT.

Forester Media @ ForesterNetwork From @AEDSocial: U.S. Election Results Bring Immediate Opportunity for American Growth and Investment http://bit. ly/2fmrUDm

Would you like to see your company featured in our next issue of CED Magazine?

Simply tweet us @AEDSocial and we’ll pick our favorites each month and publish them!

Ben Yates @AED_East Appreciate Rep John Mica visiting @SynergyEquip to discuss the technician shortage & passive revenue tax on CE rentals #perkinsact

December 2016 | Construction Equipment Distribution | www.cedmag.com | 13


>> INDUSTRY NEWS AEMP Conference and Annual Meeting Set for March

The Association of Equipment Management Professionals (AEMP) will hold their 35th Management Conference & Annual Meeting from March 4 to 6, 2017, in Las Vegas. Hundreds of fleet heavy equipment managers will gather for the best combination of technology, training and networking opportunities. The AEMP conference offers the best in face-to-face conversations with equipment professionals who will speak the unvarnished truth about their needs for specific products and services. “We’ve been attending AEMP meetings for more than 10 years and they always provide maximum ROI. At AEMP meetings we have learned what fleet managers are doing now and how they assess various machine brands; this gives us a really helpful perspective on the good, the bad and the ugly,

and that’s why Leslie’s staff consistently says they find real value in AEMP meetings,” said Todd Perrine, vice president and product support manager for Leslie Equipment Co. “The thing I like best about AEMP meetings may be that we all bring back ideas we can implement immediately; the customers attending AEMP events give us real-world feedback about what they have learned from managing their fleets,” Perrine said. Fleet managers also benefit from the insights they gain from networking with distributors and others at AEMP meetings. According to fleet managers, AEMP education conferences are the best place to create a professional support network that they can draw on for years to come. Every three years the AEMP Annual Meeting co-locates with CONEXPO.

AEMP may be best known for leading the way for a mixed-fleet telematics standard, which received approval this year from the International Organization for Standardization (ISO) for acceptance as a global standard. AEMP is also known in the industry for its outstanding professional education programs. The full training and testing for the Certified Equipment Manager (CEM) and for the Certified Equipment Support Professional (CESP) will be offered at the AEMP Management Conference & Annual Meeting. The exams for certifications will be administered at 8 a.m. Tuesday, March 7. CONEXPO starts at 9 a.m. the same day. Register today: http://www.aemp.org/annual/. And we’ll see you at the AEMP 35th Management Conference & Annual Meeting.

Hayes Brings Drilling Expertise to ECA’s Southeastern U.S. Region Equipment Corporation of America (ECA), a leading distributor of foundation construction equipment, has named John Hayes sales manager of its Southeast Region. He will manage all business development and sales activities for customers in Florida, Georgia, Alabama, and the Caribbean from the firm’s Green Cove Springs, Florida, location. Hayes has spent the majority of his career in the geotechnical industry, including a 10-year stint as director of marketing, brand management, and business development for Loadtest Inc., a Florida-based global engineering firm specializing in testing the capacities of deep foundations. During that time, he participated directly in more than 250 load tests, including the development of the Osterberg cell method for auger cast (CFA) piles. ECA’s physical presence in the southeastern U.S. was cemented in August 2015 with the acquisition of Pile Equipment, a leader in the hammer and vibro side of the piledriving market since 1987. Hayes’ drilling experience will ensure the delivery of comprehensive local

guidance and support for ECA’s full complement of specialty foundation equipment regardless of the application. “Providing comprehensive support to both our drilling and piledriving contractor customers is critical in all of our American and Canadian locations,” said Executive Vice President Ben Dutton. “John’s John Hayes deep roots in the Southeast drilling market will allow us to deliver the well-rounded support that has defined the ECA brand for nearly a century.” John and his wife Margaret have two children and enjoy golf, tennis, and a variety of water sports. A firm believer in giving back to the deep foundations industry, he has authored several industry papers and was elected twice to the Board of Directors for the Association of Drilled Shaft Contractors (ADSC). ECA has been a leading supplier of foundation construction equipment in the eastern United States and eastern Canada for nearly

Terex Appoints Aubry to Head Customer Engagement Strategy Terex announces the appointment of Mark Aubry as Director of Customer Engagement Strategy, Sales and Service Organization (CESO) for Terex Mixer Trucks Aubry replaces long-time concrete industry veteran David Rinas, who has held the director of sales position Mark Aubry since August of 2008 and announced his planned retirement from the position earlier this year. Aubry now leads all customer-facing activities, including sales, service and aftermarket

parts teams, and he is responsible for strategic sales planning and staffing for Terex front discharge mixer trucks. In addition, his responsibilities include the development and implementation of a strategic sales plan to enhance customer interaction, grow market share, and achieve company goals and objectives. Prior to joining the Terex mixer truck team, Aubry served as the vice president of sales and marketing for the components division of a Canadian alternative fuel transportation company. He has also led the sales and marketing teams for a multinational truck manufacturer and a global manufacturer of aerial work platforms.

14 | www.cedmag.com | Construction Equipment Distribution | December 2016

“Dave (Rinas) successfully led the Terex truck business through one of the deepest market downturns in history and has positioned the truck segment for growth. He has left big shoes to fill,” says Aubry. “The Terex front discharge mixer truck design is solid and offers many production-enhancing features for customers. I am excited to work with our talented team and ready mix truck operators to help grow their businesses through the use of Terex mixer trucks.” Terex Corporation is a global manufacturer of lifting and material processing products and services.


>> INDUSTRY NEWS

Ritchie Bros. Accepting Consignments For Massive 2017 Orlando Auction Ritchie Bros.' 2017 premier global auction will be held February 20–24 in Orlando, Florida Five days, hundreds of sellers, thousands of bidders, 10,000+ items: Ritchie Bros.’ annual February Orlando event is its largest U.S. auction each year, providing an unrivaled customer experience for buyers and sellers alike. The 2017 date is set for February 20–24, and consignments are already starting to roll in. There are a lot of auctions to choose from in Florida in February, but Ritchie Bros.’ Orlando auction is the largest of them all. The company’s world-class marketing attracts record crowds year after year, creating an optimal audience for equipment sellers. In 2016, the company sent more than 130,000 brochures and 1.1 million emails promoting the February Orlando auction, resulting in record-breaking attendance: more than 9,850 people from 79 countries registered to bid on the 10,700+ items sold.

“Ritchie Bros. holds hundreds of auctions in United States each year, but nothing compares to the size and experience of our annual February auction – our consignors bring the equipment and we deliver the buyers,” said Terry Dolan, president (USA and Latin America), Ritchie Bros. “We started holding equipment auctions in Orlando more than 30 years ago and have worked tirelessly to make them a world-class event year after year. Today the auction serves as a bellwether for the state of the equipment industry. Next February, together with our consignors, we will create an auction like no other.” At the Orlando auction, Ritchie Bros. will provide equipment buyers with access to all the following: ▶ A massive selection of equipment of all types and all the top brands ▶ First-class facilities so onsite buyers can be comfortable and see the equipment while they bid

▶ Large, well-organized yard to make onsite inspection easy and convenient for buyers ▶ Comprehensive equipment info and pictures online ▶ On-site refurbishment services ▶ Availability to bid onsite and online, including bidding from mobile or tablet with the new Ritchie Bros. app ▶ In-house financing through Ritchie Bros. Financial Services, giving buyers more spending power Ritchie Bros. held its first auction in Florida in 1984 and has been operating at its current location in Orlando since 2003. Since then the company has sold 157,300+ equipment items and trucks for US$2.8 billion. To sell your equipment in the February 2017 Orlando auction, contact your local Ritchie Bros. representative or call +1.855.331.5757. Visit rbauction.com/ Orlando for more info.

December 2016 | Construction Equipment Distribution | www.cedmag.com | 15


>> INDUSTRY NEWS Terramac® Appoints Power Equipment Co. as Authorized Dealer Terramac, a leading manufacturer of innovative rubber track crawler carriers, expands its representation in the North American market to include Power Equipment Company as part of its dealer network. Power Equipment will represent the versatile Terramac product line in regions of Arkansas and Tennessee. “Power Equipment’s dedication to providing customers with customized, flexible solutions naturally aligns with the versatility of Terramac products,” says Andrew Konopka, president of Terramac. “We’re excited to have Power join our growing dealer network and we look forward to a successful partnership.” Power Equipment will offer Terramac’s RT9, RT14 and RT14R crawler carriers to serve a wide range of industries including general construction, mining, road building and forestry. In addition to Terramac’s three standard options – convertible dump-to-flat beds, rock dump beds and flatbeds – Power Equipment will offer Terramac units customized with support attachments such as hydroseeders, cranes, and drills. The team at Power Equipment will provide professional sales representation for the Terramac product line in eastern Arkansas and in eastern and western Tennessee. Power Equipment’s knowledgeable staff has been fully trained in the application, sales, parts and service of Terramac products and stands ready to offer prompt and professional customer support. “We were immediately impressed by the extreme versatility that Terramac crawler carriers provide,” says Chris Gaylor, president at Power Equipment

Chris Gaylor, president of Power Equipment Company, left, and Matt Nelson, regional sales manager of Terramac.

Company. “The units can be customized for various applications and feature innovative track technology to tackle the toughest jobs. Terramac’s focus on quality products, parts supply and customer service make the brand a great fit for us and we’re confident the equipment will be well-received by our customers.” Power Equipment Company, a subsidiary of Bramco Inc., is a leading provider of

16 | www.cedmag.com | Construction Equipment Distribution | December 2016

construction, mining and related handling/processing equipment with 70 years of experience serving the industry. They offer the full line of Terramac crawler carriers for sale or rent as well as full service maintenance and parts. For more information on Power or to find the nearest location, please visit www.PowerEquipCo.com. Terramac® LLC, based in Elburn, Ill., was established to produce the world’s leading

crawler carriers. Units are sold through a full dealer network which offers customers easyto-locate parts and service throughout the world. The units can be customized with support equipment to serve many industries such as pipeline, utility, mining, environmental, general construction and more. To learn more, please visit www.terramac.com or call 630-365-4800.


>> INDUSTRY NEWS Komatsu America To Buy And Convert Four New Mexico, Texas Distributor Locations For Relaunch As Komatsu Southwest Locations will support long-term distributor growth and customer satisfaction goals Komatsu America Corp., a leading global heavy equipment manufacturer, has announced the purchase of four branches of Road Machinery LLC that will become company-owned facilities under the Komatsu Southwest banner. The four locations – El Paso, Texas; Carlsbad, N.M.; Albuquerque, N.M.; and Farmington, N.M. – will support Komatsu’s long-term strategic plans to grow and strengthen the distribution channel. Komatsu America purchased the locations from Arizona-based Road Machinery LLC in a deal that closed on October 5, 2016. No other transaction terms will be disclosed. “We will more than double the investment in equipment, tooling and training at these locations,” said Rod Schrader, CEO, Komatsu America. “We see this as an

opportunity to improve the linkage of our customers to our factory experts with added customer support and responsiveness.” Komatsu America Corp. is a U.S. subsidiary of Komatsu Ltd., the world’s second-largest manufacturer and supplier of earth-moving equipment, consisting of construction, mining and compact construction equipment. Komatsu America also serves the forklift and forestry markets. Through its distributor network, Komatsu offers a state-of-the-art parts and service program to support its equipment. Komatsu has proudly provided high-quality reliable products for nearly a century. Visit the website at www.komatsuamerica.com for more information. Komatsu® is an authorized trademark of Komatsu Ltd. Komatsu America Corp. is

an authorized licensee of Komatsu Ltd. All other trademarks and service marks used herein are the property of Komatsu Ltd., Komatsu America Corp., or their respective owners or licensees.

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Visit us at AED Hospitality Suite #2 670 East Tower CONDEX #1019 December 2016 | Construction Equipment Distribution | www.cedmag.com | 17


>> PRODUCT PREVIEW Komatsu America Corp. debuts PC138USLC-11

LiuGong North America Breaks Ground with New H-Series, E-Series Tier 4 Final Machines

LiuGong North America, a wholly owned subsidiary of LiuGong Machinery based in Liuzhou, China, and a global leader in the manufacturing of heavy construction equipment, unveiled its new Tier 4 Final H-Series wheel loaders and E-Series excavators to its North American construction equipment dealers during an event in San Diego. The new machines feature cleaner engines, more efficient systems, and improvements to the cab that enhance the operator experience. The San Diego event featured machine demonstrations, allowing dealers to see and experience the new Tier 4 Final machines firsthand. LiuGong executives and product managers also highlighted LiuGong’s corporate history and provided key updates on the benefits of the new wheel loaders and excavators. “With more efficient and intelligent systems, our new Tier 4 Final wheel loaders and excavators are more productive, responsive, easier to operate and have better ergonomics for the operator,” said Marcus Menough, director of sales and marketing, LiuGong North America. “We’ve also invested heavily in the cab and machine design to improve the operator experience and safety of the equipment.” “Customers are going to love the responsiveness, sleek design and enhanced creature comforts of the new machines,” said Dave Hertz, owner and dealer principal of LiuGong dealership Midwest Equipment, who attended the event. “It was great to network with our fellow dealers in San Diego and learn about the new machines directly from LiuGong company executives and North American product managers.” The H-Series wheel loaders and E-Series excavators showcased include the 835H, 856H, 890H, 915E, 922E, 925E, 930E and 936E. The new machines feature bestin-class fuel consumption and a state-of-the-art cab that makes the working environment more comfortable and machine operation more intuitive.

18 | www.cedmag.com | Construction Equipment Distribution | December 2016

Komatsu America Corp., a leading global heavy equipment manufacturer, has introduced the new PC138USLC-11 hydraulic excavator. With the same tight tail swing radius as its predecessor, and up to 4 percent less fuel consumption than the previous model, it is ideal for utility and highway applications working in confined spaces. This new EPA Tier 4 Final certified model uses an SAA4D95LE-7 engine with a Komatsu Diesel Oxidation Catalyst (KDOC) and a Selective Catalyst Reduction (SCR) system with Diesel Exhaust Fluid (DEF) injection. The engine requires no diesel particulate filter or regeneration. “The PC138USLC-11 is the perfect machine for contractors on highway, bridge and other roadwork jobs,” said Kurt Moncini, senior product manager, Komatsu America. “It’s versatile and easy to transport, and the tight tail swing fits easily within one lane of traffic.” The PC138USLC-11’s contoured cab profile and sliding door allow the cab to swing within the same radius as the counterweight. A larger counterweight mass remains standard, giving the PC138USLC-11 equal or better lift capacity than conventional models in the same size class. Standard features include: ▶ Powerful, efficient, SAA4D95LE-7, 4.4 L, 97.2 Net HP engine ▶ Komatsu Diesel Oxidation Catalyst (KDOC) after treatment system ▶ Exhaust Gas Recirculation (EGR) to reduce NOx emissions ▶ Selective Catalyst Reduction (SCR) system, with Diesel Exhaust Fluid (DEF) injection used to meet EPA Tier 4 Final NOx requirements ▶ SCR catalyst has no scheduled maintenance and a life expectancy similar to that of the engine Visit the website at www.komatsuamerica.com for more information.


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>> REGIONAL REPORT

MICHAEL DEXTER

Gatherings Are A Gold Mine

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Being surrounded by hundreds of members in the industry for two and a half days gives you the ability to make that connection you may need in the last hour of a deadline.

n this age of technology there is still one absolute necessity for success: human interaction. The importance of networking cannot be understated. It takes more than knowing the shop down the street and the distributor in the next county. It takes having a nationwide network of people you can reach out to across all facets of the industry. It takes knowing who to pick up the phone and call to set that last piece of the puzzle in place. Events like the GOMACO Invitational provide the opportunity to expand your network by leaps and bounds. For two and a half days, over 275 members of the construction industry, including customers, suppliers, distributors and association members, descended on the same spot. When you combine the sheer volume of industry participants with the relaxed atmosphere of Ida Grove, Iowa, you have a recipe for success, a veritable gold mine of networking ability. For over 35 years, this unique industry gathering has allowed personal connections to be made that span coast to coast. It has once again proved its importance. Being surrounded by hundreds of members in

the industry for two and a half days gives you the ability to make that connection you may need in the last hour of a deadline. The industry is not comprised of just one part; it relies on the activity and success of everyone to turn raw materials into goods. Networking like that done at the GOMACO Invitational ensures the success of the industry through human interaction, strengthening the bond between the wide range of industry stakeholders and maximizing the potential for success. I want to thank GOMACO for inviting me to this great event.

MICHAEL DEXTER is AED Senior Regional Manager. Reach him at mdexter@aednet.org.

20 | www.cedmag.com | Construction Equipment Distribution | December 2016


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>> VIEW FROM THE HILL

SEN. JOHN HOEVEN, R.-N.D.

Move America Can Boost Infrastructure Investment, Create Jobs, Grow Economy

S

The American Society of Civil Engineers has indicated that the country needs over $3.6 trillion of additional investment by 2020.

enate Finance Committee Ranking Member Ron Wyden (D-Ore.) and I have introduced bipartisan legislation that would bring billions of dollars of investment to state and local governments to help grow and repair America’s aging infrastructure. The bill, the Move America Act of 2015, would expand tax-exempt private activity bonds and create a new infrastructure tax credit, giving states significant flexibility to pursue infrastructure projects that are badly needed across the country. The American Society of Civil Engineers has indicated that the country needs over $3.6 trillion of additional investment by 2020. To address this critical investment need, it is important to ensure the solvency of the trust funds for highways, airports, ports and waterways, but it is also vital that the federal government do what it can to leverage greater private investment in infrastructure. To help meet the challenge, Congress passed a strong, long-term highway bill last year. The bipartisan legislation Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act provides $350 billion in contract authority for the 2015–2021 period and reauthorizes the nation’s transportation programs for six years. The measure makes up for a lack of highway trust fund revenues by adding about $45 billion in offsets and does not increase the deficit or taxes. Our Move America program will work as an adjunct to the highway bill. It creates Move America Bonds to expand tax-exempt financing for public-private partnerships (P3) and Move America Credits to leverage additional private equity investment at a lower cost for states. Through cheaper and more flexible access to debt and equity, Move America gives states the tools they need to expand investment in roads, bridges, ports, rail and airports. The measure is fully paid for so it doesn’t increase

the deficit, and we’ve designed it to work with the P3 program. According to the Joint Committee on Taxation, the Move America Act would leverage $8 billion in federal investment into $226 billion worth of bond authority over the next 10 years or $56 billion over 10 years in tax credits. States will receive a minimum of $1.5 billion over 10 years in bond authority or $370 million over 10 years in tax credits, with the potential to receive as much as $18 billion over 10 years in bond authority or $4.6 billion over 10 years in tax credits. The formula is determined based on a state’s population. All of this investment, of course, means jobs and economic growth. But the value of using P3s is about more than just raising private money to pay for infrastructure. Private capital makes construction start faster, which in turn reduces the share of project costs borne by the federal government and ultimately allows the federal government to more quickly work through its backlog of unfinished critical infrastructure projects. Qualified projects include publicly-available transportation infrastructure, such as airports, docks and wharves, mass commuting facilities, freight and passenger rail, highways and freight transfer facilities, flood projects, and inland and coastal waterway improvements. To sum up, greater use of private capital through the Move America Program and P3s could serve as a helpful addition to increased federal infrastructure funding through the infrastructure trust funds. P3s provide two major benefits: the private investment provides an injection of upfront capital financing, and the risk-transfer to private parties can bring increased efficiency to the design, construction and maintenance process. While not all projects are feasible for P3s, they can play a helpful, additive role for public infrastructure, in concert with appropriate public funding.

JOHN HOEVEN is the senior U.S. Senator from North Dakota, in office since 2011. His committee membership includes Appropriations; Energy and Natural Resources; Agriculture, Nutrition and Forestry; and Indian Affairs. Prior to his election to the Senate, he served as North Dakota’s governor for 10 years. 22 | www.cedmag.com | Construction Equipment Distribution | December 2016


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Canadian distributors bring industry’s message to Parliament Hill during 2016 AED Ottawa Briefing By Christian A. Klein Leaders of the Canadian equipment industry converged on Ottawa on Oct. 26 and 27 for AED’s 2016 Ottawa Briefing. The meeting provided an opportunity for dealers to come to the capital, learn about the status of key policy issues, and meet with members of Parliament and government officials to promote the industry’s infrastructure, tax, regulatory and workforce agenda. The theme of this year’s Ottawa Briefing was engagement. Whereas past meetings have focused heavily on roundtable discussions and briefing sessions about policy issues, this year attendees spent considerably more time meeting with policymakers. The AED meeting, which was attended by 17 members from around the country, kicked off on the evening of Oct. 26 with a reception in historic Centre Block on Parliament Hill. The event gave conference attendees an opportunity to socialize and network with one another as well as with the several members of Parliament and representatives from the Ottawa policy community who attended. Raj Grewal, an MP representing Brampton East in Ontario, spoke to the group, welcomed AED members to Ottawa, and underscored the importance of business leader engagement in the policy process. The equipment industry’s day on Parliament Hill kicked off early on Oct. 27 with a welcome from AED President and CEO Brian McGuire and from AED board member Craig Drury (Vermeer Canada). Representatives from Bluesky Strategy Group, AED’s consultants in Ottawa, also provided a quick update about the status of key policy issues and the new government. Ottawa Briefing attendees then set out for a busy day of meetings with various members of Parliament and ministry officials, including the following: ▶ The director of policy at the office of the Minister of Infrastructure and Communities to discuss the rollout of the Trudeau

government’s $100+ billion infrastructure initiative; ▶ The director of policy at the office of the Minister of Transport to discuss pending electronic logging rules for drivers; ▶ Ken Hardie, MP, a member of the Standing Committee on Transport, Infrastructure and Communities to discuss the local economic impact of infrastructure investment; ▶ Rodger Cuzner, MP, parliamentary secretary to the Minister of Employment, Workforce Development and Labour, to discuss the

equipment industry’s technician shortage; and ▶ The chief of staff and director of policy at the Office of the Minister of Revenue to discuss tax strategies to incentivize equipment purchasing. Following a busy morning, attendees enjoyed lunch in the Parliamentary Dining Room in Centre Block with Grewal and Kim Rudd, MP, parliamentary secretary to the Minister of Natural Resources. Rudd told AED that members of Parliament want to hear from their constituents in the business community. “I need to understand the context of what you’re doing and how we can help you in your business, whether it’s export or domestic or innovation. Whatever the case, it’s important that you come talk to us,” Rudd said. Rudd said that personal engagement was an important way to build relationships with policymakers. “The best way to engage with me is to come and talk to me. Make an appointment.

24 | www.cedmag.com | Construction Equipment Distribution | December 2016

I’m very accessible. We all are.” Rudd added that it’s not only important, but imperative for businesses to invite their MPs to visit their facilities, which provides the opportunity for elected officials to interact not just with the owners and managers, but also with employees and even customers. Yannick Montagano, regional vice president at Strongco Corporation, said he registered for the Ottawa Briefing because he wanted to understand more about how to engage with government and influence policies to benefit his company and industry. “The most surprising thing to me was how interested our members of Parliament are in engaging with us, hearing us out, understanding what our issues are and how they can help us,” Montagano said. “There’s a lot of cynicism about government, but when you come to learn a little more about it, you see that there are opportunities to work with government instead of working against it.” According to Drury, “This year’s Ottawa Briefing was the best one yet. Not only did we hear directly from government officials about what’s going to be happening in the policy areas that matter most to dealers, but the conference was also an opportunity to raise our industry’s visibility and make sure lawmakers know their decisions affect our companies’ profitability. “It’s clear that the resources AED and its members are investing in our presence in Ottawa are paying off. It’s important that we keep up the positive momentum. I’m looking forward to working with all our members over the next year to continue to build our government affairs program.” In the wake of another successful Canadian public policy conference, AED is encouraging more aggressive dealer engagement with MPs. Dealers interested in hosting an MP at their facility or learning more about AED’s Canadian public policy program should contact AED Senior Regional Manager Mike Dexter at mdexter@aednet.org.


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>> DEALER DEVELOPMENT STEVE JOHNSON

Heavy Equipment Service Engineering Technology Program at Ferris State University Achieves Re-Accreditation by The AED Foundation By Steven Johnson In 2001, Ferris State University’s Heavy Equipment Program was the first to be accredited by The AED Foundation. The Foundation offers special congratulations to faculty and staff on this, the fourth program review and approval for The AED Foundation Accreditation. We are pleased that they have chosen to demonstrate their commitment to academic excellence and continuous improvement through this process. The Heavy Equipment Service Engineering Technology Program is a four-year B.S. degree program that provides the skills and knowledge students must master to test, diagnose, service and repair multiple, interfacing and technically sophisticated systems used on equipment in the construction, agricultural, forestry, stationary power and trucking industries. Mechanical, electrical, electronic and hydraulic technology are addressed, along with failure analysis, troubleshooting procedures and techniques, metrology, and product design for manufacturing and fleet management. Accreditation means that college diesel-equipment technology programs have met rigorous technical academic program standards as defined in The AED Foundation’s “Standards for Construction Equipment Technology.” Developed and updated regularly via the expertise of volunteer task force members with broad representation from AED member dealers, manufacturers and technical colleges, these standards “address the needs of the equipment industry, as stated by the industry.” The standards indicate what skills and knowledge students should have when they graduate. Mr. Gary Maike, program coordinator, commented on what accreditation by The AED Foundation has meant to the program over the years. “Accreditation provides our program stakeholders, both internally and externally, with meaningful evidence that we are providing our students with the skills they need. We take pride in being able to point out to prospective students, and their families and employers, that we are an accredited program. Being able to point out that we were the first program accredited by The AED Foundation puts us in a unique position.”

Program faculty and staff

Gary Maike, Program Coordinator and Associate Professor Joyce Mudel, Program Secretary Richard (Todd) Ballard, Building Technician Austin Williams, Assistant Professor Daniel Meyers, Assistant Professor Darren Wilson, Associate Professor The AED Foundation is proud of its affiliation with this outstanding diesel-equipment technology program at Ferris State University and many other career and technical colleges via The AED Foundation Accreditation program. If you are wondering where your next generation of qualified equipment techs will come from, and are interested in working with your local technical college, contact Steve Johnson at the Foundation for more information. 26 | www.cedmag.com | Construction Equipment Distribution | December 2016

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>> DEALER DEVELOPMENT

Hinds’ Diesel Technology Academy a Model Partnership

have a way to attract. We didn’t have a way to get these young folks By Karen Algeo Krizman Hinds Community College’s Diesel Technology Academy in Mison the first step into our business.” sissippi is a model of how local schools and businesses can team up With the school on board, Vander Molen and Swanson went to to develop the equipment industry workforce of the future. work convincing other dealerships to work together on the project Mississippi’s largest community college collaborated with profor the sake of the overall industry. gram sponsors Stribling Equipment, Empire Truck Sales and Ver“I basically introduced these lunch meetings with, “Look, this is meer MidSouth to launch the academy the first time ever that this group has actually last fall. sat down together. This is the time to take With a curriculum based on stanour dealership hats off, and let’s put them dards set by The AED Foundation aside for an hour and let’s talk about our While the cookies were and Automotive Service Excellence industry,” Vander Molen said. in the oven for two years, (ASE), the 14-month program offers With all the partners in place, the team students three degree options – a career we had a lot of questions went to work on writing curriculum based certificate, a technical certificate or an on AED Foundation technical standards. about whether this was associate’s in applied science – in either “It took two years and a series of 20 meetgoing to work. Well, it’s the heavy-duty truck or equipment ings, working through the redrawing of the industries. curriculum for the state – I mean a complete working, and it’s pretty “The program would not exist redrawing to get us out of the 1960s and into satisfactory, to be honest without the support from the busithe next century,” Swanson said. “It took a ness and industry community,” said with you.” while, but now you’ve got this blind faith and Chad L. Stocks, associate dean of – Jerry Swanson, CEO trust that the other (partner) is looking out Career and Technical Education for for your interest and you’re looking out for Stribling Equipment the college’s Raymond Campus. “The their interest; and it works.” and Empire Truck Sales, Jackson, Miss. unconventional partnership supports There’s much credit to go around for why the program by providing resources to this partnership between local construction the college that the state is unable to equipment distributors and Hinds Commuprovide, such as facilities, equipment, nity College works. internships and live training aids.” “(Stocks) was a tremendous leader to get this thing done,” SwanIn an industry where competition between individual dealerships son said. “I call him an ‘educational warhorse’ because he could is fierce, the partnership took time to come together. make this thing happen as far as his side, as far as academics. Of “I’ve been doing this for 40 years,” said Jerry Swanson, CEO of course, we had the relationships with the manufacturers to get the Stribling Equipment and Empire Truck Sales in Jackson, Mississipcurrent state training materials and training aids and things like pi. “Everyone that I’ve talked to, every industry leader, has always that. The combination of the two – it’s like trying to dance in the talked about developing a young workforce to enter the industry. dark with a blind date. It’s hard, but once you get used to it, it all I’ve been to probably 30 luncheons to build a coalition of dealers -works out.” both truck and tractor -- to develop a program. We’ve eaten enough Swanson himself was instrumental in offering the community food to feed a small nation like Yemen, but nothing ever happens. college resources to help make the program a success. I think it’s the fact that the people feel competitive with each other “Jerry Swanson really stepped up to the plate,” Vander Molen said. and then you end up with a noncooperative spirit. And in most “He had a facility that he wasn’t utilizing the way he wanted to and cases you don’t have somebody that will take the initiative, and you he basically made that facility available – and not just the facility, but don’t have what you would call a very forward-thinking partner in he had people and tools.” the academic area.” That facility in Richland, Mississippi, now houses the Diesel Fully aware that the industry was losing technology-minded Technology Academy, where students get their hands-on training students to other fields, Swanson and other construction equipment in repairing and maintaining engines, power trains, electrical, air dealers found the forward-thinking partner they were looking for in conditioning, brake and hydraulic systems after completing a year of Hinds. general studies on Hinds’ Raymond campus. “It kind of happened almost simultaneously from two directions In October, the program saw its first 15 students graduate, 90 -- from Jerry Swanson’s direction and then from my direction,” said percent of whom already have jobs as diesel equipment technicians, Dennis Vander Molen, president of Vermeer MidSouth and current according to Stocks. chairman of The AED Foundation. “He went to see the president of “(The academy) is churning out product,” Swanson said. “We’ve the college and I went to see the dean of the college, almost within got students coming out. They are entering the workforce. They’ve one week of each other, each not knowing what the other one was got great aptitude and ability to advance quickly. While the cookdoing. Our message was that our industry’s got problems and we ies were in the oven for two years, we had a lot of questions about don’t have a way to attract the younger crowd from a technician whether this was going to work. Well, it’s working, and it’s pretty standpoint. Our businesses were suffering because industry was stealing technicians and we didn’t have a way to recruit. We didn’t satisfactory, to be honest with you.” 28 | www.cedmag.com | Construction Equipment Distribution | December 2016


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You're Only As Good As Your You’re Only As Good As Your Pit Crew

PIT CREW By Christine Corelli here’s no doubt that teamwork is important to the success of any dealership. But is it easy to establish highly effective and proficient work teams? Absolutely not. Does teamwork simply mean that everyone on your team in every department and every branch is working toward a common goal? That would be too easy. There are two major challenges when it comes to creating a true team culture. The first is that teamwork is voluntary. You cannot force anyone to be a team player. The second is that it does not necessarily come naturally; teamwork requires training. Here’s why: Most individuals have been programmed from childhood to excel as individuals and not as team players. Unless a person has had a teamwork training program, or experience on a sports team under the direction of that rare dynamic coach, he or she does not know how to perform effectively as a member of a team. There are more challenges. Teamwork requires that people keep their egos in check, communicate effectively, resolve conflicts and, above all, commit to one another and to a common goal. In spite of these obstacles, it is absolutely critical to develop teamwork within your dealership, regardless of whether you are a team of twenty or two thousand. You simply can’t create and sustain success in today’s highly competitive world without the full support of every employee. You’re only as good as your pit crew. Racing season is over and football season is here, but it shouldn’t be hard to imagine yourself as a professional race car driver. No matter how proficient and daring you are behind the wheel, a split second can make or break you on

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the course. You cannot win the race for new and more loyal customers and increased profitability without a highly cohesive and dynamic pit crew. A pit crew is a great example of teamwork – they must work together as a highly cohesive team to assist the driver in winning the race. There are many similarities in what a pit crew must do for their professional driver and what your team must do for you:▶ A pit crew is committed to the driver and focused on the goal of helping them win the race. Each individual must perform to the highest capacity and as a unified team, just as your team must deliver their best performance each day, be committed to helping you achieve your goals, and be focused on your competitive strategy. ▶ A pit crew has all parts pre-staged and tools ready before the race for greater speed and efficiency when the driver is being serviced. Your parts and service areas should be neat and organized, all parts should be shipped by the end of every day, and new parts should be put away unless they are being installed. Your team should also have procedures and practices in place for fast and efficient service to customers. ▶ A pit crew practices changing tires, engines, and parts; gassing; and tearing off breakaway windshields to achieve ever greater speed and efficiency. In addition, they train continually. Training should be a priority in your dealership. In fact, many dealers known for world-class customer service role-play during down time. ▶ Pit crews have meetings to share ideas for continuous improvement with an atmosphere of open communication. These meetings can be formal or informal. A huddle will do just fine. They stick to an agenda and don’t go off into discussions other than what has been set. Communication


is “open,” where everyone feels free to voice an opinion or bring forth an idea and speaks up without being asked. Holding weekly meetings that last no more than a half-hour to discuss sales, service problems, ideas or value-added service packages for customers is smart. Many hold Monday Morning Meetings with the GM, parts and service manager, rental manager and office manager to make sure everyone is on the same page and any conflicts are resolved. Dealer owners and managers should set the tone for open communication in your business; your people will and should participate and speak openly. ▶ Often a pit crew will participate in competitions with other race drivers. Does your team recognize that each and every day they are competing against other dealerships for sales and product support? ▶ You can be sure pit crew team members and drivers love the thrill of the race. They are passionate. Do the people on your team love selling and servicing equipment? Do they truly enjoy working at your dealership? Do you treat your team so well that they want to deliver their best performance each and every day?

Winning the Competitive Battle

Establishing a highly effective and proficient team of professionals who can perform together in an environment of open communication and idea sharing – both internally and externally – is critical. It is the only way to ensure that your company can perform at the highest level of quality in all you do. And it is certainly key to whether you can stay in the race. Think what can happen when there is a lack of teamwork. Without teamwork……Organization of projects can be compromised. Lack of coordination and planning can cause problems for you and customers. …You can bring disharmony into your dealership. That’s not healthy in today’s highly competitive and often stressful environment. Harmony within your team is critical to job satisfaction, customer retention and business growth. …The people in your business can fail to assist you and each other in driving business growth and doing all they can to increase sales, control costs, and obtain higher levels of profitability. …Your people can lack the capacity to understand the pressures you face in

keeping your business afloat and keeping customers happy. …Your people will lack a clear understanding of what customers want, need and expect. …Barriers can develop among people. Finger-pointing and blaming can occur. …Walls can be built. Territorialism can exist within your team. An “It’s not my job” attitude can exist instead of a “What can I do to help you?” attitude. …Silos can form, where each department or branch operates in its own way. …Quality workmanship can be compromised. …Conflict can arise and not be resolved. Problems can occur and not be “nipped in the bud.” …Customers will not receive service that is far superior than that of your competitors – something that is an absolute necessity. No business can afford any of these situations. On the other hand, when there is a true team culture, positive outcomes are achievable. Effective teams can take problems and fragments of ideas and mold them into solutions and positive results. Ideas can build one on top of another. Individuals, working as a team, can take these scattered bits of information and structure a wide variety of options and solutions to the problems you encounter. Consequently, teamwork promotes creativity and innovation. Relationships are strengthened, inside and outside your dealership. Issues are uncovered, conflict is resolved, and people all pull in the same direction to achieve their goals and provide exceptional service. Voila! Individuals are effectively becoming solid team players, and strong leaders emerge. Sound too ideal? It’s not. It’s achievable. All smart dealerships operate at this level if their leaders insist they do. Why shouldn’t yours? To begin, follow these steps to move your company forward to take its place among those who will be able to not just survive, but prosper in the future. 1. Practice dynamic leadership. Remember whose job it is to keep your team motivated in today’s tough business environment. It’s yours! If they see worry, doom and gloom on your face, they won’t be inspired. You, as their team leader, must display dynamic leadership. As a leader, you are also a teacher.

Think of yourself as a great sports coach, coaching and encouraging your team to excel. Coach them toward greatness. Make your team members feel as if they are working with you and not for you. If they feel they are working for you, you will get robots that go through the motions of their job and never show initiative beyond their job description. If they feel they are working with you, they are more likely to look forward to coming to work each day. 2. Get the right players on the team. Have the courage to remove anyone who might be preventing the team from performing at the highest possible level. You can’t afford to have even one weak player. Once you have the right people on your team, your job will be infinitely easier. When you have people who perform to their highest capacity and provide outstanding service to customers and the other members of their team, you will be able to focus on customers, business growth, and development. 3. Communicate. Sit down with your team and tell them how much you appreciate the good job they do for you. Then describe what you would like to accomplish. Explain that you need their involvement in an important team-building and idea-sharing process. People tend to promote what they’ve helped to create. Asking for their ideas and input in this initiative is the first step in effective team-building. Employee involvement is key. 4. Set expectations and competencies specific to each job role. Communicate your expectations of each team member and also the expectations you have of the team as a whole. As a team they should demonstrate the following: ▶ They are all working toward the common goal of carrying your organization into a more successful future. ▶ Peer support will be practiced day to day. ▶ Conflict will be resolved among each other. If it cannot be resolved, they are to come to you. ▶ The team is empowered to solve problems on its own. ▶ Team members will speak openly about their opinions without being asked. ▶ Team members will not be afraid of losing their job when they do speak up. ▶ A high level of trust must exist

December 2016 | Construction Equipment Distribution | www.cedmag.com | 31


between you and your team and between the team members. ▶ Team members are to demonstrate the core values of honesty, integrity, safety, respect, customer focus, teamwork, accountability, professionalism, family, and concern for Earth and the environment. 5. Set the highest standards for yourself and your team. Never settle for mediocre performance from an individual or your team. You will never be able to achieve success if you do. Another reason to set the highest standards is that your people will respect you for it! 6. Ask for ideas. Ask for ideas on how you can modify or eliminate any procedure that does not allow for flawless execution. Ask them how you can avoid wasteful spending and how you can cut costs during this volatile economy. Ask how you can improve productivity and morale. It is amazing how many great ideas you will obtain if you do it right.7. Create guiding principles for the way the team will communicate and operate and for how all customers will be treated. Have these guiding principles printed

out and posted around the office. Have each team member sign them and agree to adhere to them. Then assign a team to add to them quarterly. Use this document for new hires. Let them know that they won’t fit in with the team if they don’t practice these guiding principles. 8. Set rigorous but achievable goals for sales, error-free performance, customer complaints, and safety. You can keep your team pumped up by setting goals and then giving the entire team a small reward when they reach these goals. 9. Train your team! Arm your team with knowledge and skills so they can drive faster and smarter than your competitors. Better yet, consider teamwork training to help your team become a truly effective entity. 10. Establish five critical success factors and use them as your road map. Work with your team to establish five critical success factors for business success in 2017. This will be your road map to get you where you want to go. Print them out and put them on cards and on your walls so that your team doesn’t forget to stay the course.

Take a good hard look at your team and begin these steps as soon as possible. Look Who’s DrivingYou are behind the wheel in the race car, striving to drive your business forward. Drive as smart and as safely as you can, and surround yourself with the smartest and most supportive pit crew you can possibly find.

The Biggest Difference

There is one major difference between a professional race car driver and you running your business: for them, there’s a finish line to cross. For you, the race for business growth has no finish line. Business can be tough. Real tough. Forget the old adage, “When the going gets tough…” and remember what the race car driver uses for fuel – the love of the race. As you are driving, remember how much you love this industry. Put your heart into it. Just remember to enjoy the ride. I, for one, choose to do so.

CHRISTINE CORELLI is slated to present “Dealing with Difficult People and Situations.” To learn more about her, visit www.christinespeaks.com or call 847-581-9968. © Copyright 2016, Christine Corelli & Associates, Inc.

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STAND OUT » Competitive Edge Brian Gareau

FROM THE CROWD

Workplace differentiation – does your dealership have a competitive edge? By Brian Gareau

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very day your dealership strives to find new ways to attract, retain and grow customer loyalty and market share. One key strategy dealers use to set them apart from others is differentiation. Its goals are simple but also challenging to sustain – distinguish yourself from others; make it more attractive to do business with you; and contrast your unique qualities compared to your competition. This same strategy of differentiation and its goals are and will be even more critical in the future in finding, hiring, and keeping a talented workforce. Consider some of these labor forecasts: ▶ The Bureau of Labor Statistics forecasts that diesel mechanic demand will grow by 12% annually ▶ The American Welding Society estimates there will be a shortage of nearly 300,000 welding-related positions by 2020. ▶ If the current trend holds, the American Trucking Association estimates the shortage of drivers may balloon to almost

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175,000 by 2024. ▶ Retiring baby boomers are vacating jobs faster than younger workers can replace them – especially in occupations like skilled trades and manufacturing. Some researchers are predicting 10 to 15 years of labor shortage. So what’s your dealership’s strategy for creating and sustaining Workplace Differentiation? Historically, many businesses have used "rational" elements to achieve workplace differentiation – higher wages, financial incentives, long-term employment, low cost health care, and "perks" like subsidized child care and fitness facilities. But, these elements have trended toward "same" not "different" as fierce, global competition has grown. Other businesses have focused more on "emotional" elements including: creating an engaging and inclusive business culture, values-based behavior, non-financial reinforcement (recognition), and increased personal development opportunities. It’s


this first set of elements – engagement and inclusion – that we will devote the rest of this article. First, here’s the good news. There are common solutions for increasing engagement and inclusion in your dealership. Resources and actions can be leveraged or as the saying does – kill two birds with one stone. And, there are significant business benefits if successful. Research has shown: ▶ Engaged employees are 87% less likely to leave an organization than their counterparts (Corporate Leadership Council) ▶ Individual performance is 20-28% higher for engaged employees (The Conference Board) ▶ 70% of engaged employees indicate they have a good understanding of how to meet customer needs, while only 17% of non-engaged say the same (Right Management) ▶ Deloitte found that inclusive teams outperform their peers by 80% in team-based assessments. In a separate study they also found inclusive teams were 1.8 times more likely to be change-ready and 1.7 times more likely to be innovation leaders in their market Now, here’s the challenge. Many organizations have tried initiatives in employee engagement and inclusion. But, they have failed to produce sustained results. Let’s call these "pesky birds". Here are four common ones: 1. Wild goose chase. If a leader or organization believes engagement and inclusion are "nice to do" compared to "need to do" then there is perceived limited strategic value. Things "nice to do" will naturally get lower priority for time, money, and resources in your dealership. 2. Put all their eggs in one basket. Too often organizations use a single indicator to measure success or failure in engagement and/or inclusion. Most often it is a survey number. High performing organizations use informal and formal measurements of behavior, process discipline, and perceptions to create a more holistic set of metrics. 3. Water off a ducks back. This pesky bird is all about accountability. It involves blaming others, not being pro-active, and not taking ownership. Some organizations tolerate taking short-cuts, skipping steps, and allowing countless exceptions to the rules without any serious consequence. There must be positive consequences for being accountable as well as negative consequences for avoiding accountability. 4. Chicken out. To create sustainable gains

in engagement and inclusion there must be behavior change. Some leaders fear engagement and inclusion initiatives because they believe "it’s just more stuff to do". In reality, it’s more about "the way you do the things you should already be doing." Don’t let leaders back up or out! Here are five areas of focus (common stones) that can create a ripple effect in enhancing both engagement and inclusion efforts in your dealership. 1. Provide Clarity. Clarity helps build focus (what to do), understanding (when and how to do it), and trust (who to do it with or for). It also is the key, first step in driving personal accountability. Here are some key communication reminders for clarity: ▶ Take three steps. It all starts with sharing information. New technology makes this faster and easier to do. But, creating clarity must also include generating understanding and reinforcing key messages. Dialog, discussion, debate and other "high touch" communication must be balanced with new "high tech" solutions. ▶ Increase retention. Research shows key messages must be repeated at least seven times, using different communication techniques and media, for the average person to retain. Make sure they clearly remember! ▶ Listen with your eyes. Non-verbal communication makes up more than 50% of all human communication effectiveness. Successfully reading non-verbal communication can give a leader immediate feedback on the potential understanding and receptiveness of their message. Research has found that a business with 100 employees spends an average of 17 hours per week clarifying communication. The estimated waste is $500,000 annually. 2. Focus on Relationships. Author Maya Angelou once said, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel." So, bottom line how do leaders in your dealership make employees feel: ▶Important? ▶ Genuinely cared for? ▶ Appreciated? The choices leaders make in how they spend time explicitly shows others IF relationships are important and WHICH ONES are most and least important. 3. Make Everyone’s Opinion Count. When leaders don’t ask for, listen to, and/or use others’ opinions they can easily send some extremely

negative perceptions including: “I don’t care.”; “I’m not interested.”; and “I know better.” Instead, consider: ▶ Being disciplined to review and get back to individuals on their ideas or questions in an agreed period of time. ▶ Selecting diverse staff for special projects – not just picking the same "favorites". ▶ Letting employees make some of the decisions in change initiatives to increase buy-in and transfer ownership. ▶ Feeding employees’ perceptions and ideas "up the line" to senior leadership – to maximize their voices being heard. 4. Empower. When leaders empower employees they work closer together on common goals – partner better on challenges – and exhibit a higher degree of trust. Real empowerment involves giving employees responsibility, accountability, and authority. It also involves: ▶ Providing both the "know how" ability and the "know why" understanding ▶ Establishing clear boundaries (absolute power and authority is never implied) ▶ Holding regularly scheduled HAYD dialogs (how are you doing?) ▶ Letting people know what others are empowered to do 5. Recognition. Research has found the ideal praise to criticism ratio is nearly 6 to 1. When employees feel they have made sacrifices, put in extra effort, solved problems, and delivered results but nobody says anything – it’s disengaging and can feel exclusively given to some but not others. And, it’s not just verbally saying "thank you". It can be: ▶ A smile, eye contact, vertical head nod, high five ▶ A short text message ▶ A memory anchor – like a pack of Lifesavers or a $100,000 chocolate bar with a handwritten note Regardless of the method, make sure recognition is sincere, timely, and specific to maximize impact. So it’s time to talk turkey. Does your dealership distinguish itself from other employers – is it a more attractive place to work – and does it offer unique qualities? Can it consistently find, hire, and keep talent? Think of the competitive advantage your dealership would have if it consistently had employees’ heads (ideas), hearts (commitment), hands (physical work), and habits (consistency). Employee engagement and inclusion might make the difference.

Consultant and author BRIAN GAREAU specializes in strategic, tactical, and practical solutions to engage and accelerate high performance. To learn about Brian’s services and find more articles and resources visit: www.BrianGareauInc.com. December 2016 | Construction Equipment Distribution | www.cedmag.com | 35


2017 AED Foundation Annual Campaign to focus on “Building a Dealer Model for Success” By Megan Mattingly-Arthur Since 1991, The AED Foundation has worked tirelessly to address the professional education and workforce development needs of the construction equipment industry through a variety of education and accreditation programs made possible by members’ support of the Foundation’s annual campaign. In 2017, the Foundation will continue its 25-year history of excellence with an annual campaign that’s designed to strengthen both individual dealerships and the industry as a whole – now and in the future. “The annual campaign helps The AED Foundation give back to dealers,” said Rebecca Lintow, director of sales and development for Associated Equipment Distributors. “By investing in the Foundation, dealers are actually investing in the future of their own dealerships. This year, one of the things we’re really focusing on is the ‘Dealer Model for Success.’” With this focus, the Foundation has set a fundraising goal of over $325,000 for its 2017 annual campaign, which it will use to continue or implement programs that challenge industry-related stereotypes, attract talented young people to careers in the construction equipment industry, and help dealers strengthen the professional skills of their employees. Specifically, investments in The AED Foundation allow it to prepare industry-specific education and training materials and programs, such as branch, rental, and parts and service manager seminars, as well as on-demand learning; provide national AEDF Accreditation standards for equipment technician programs; and award tool scholarships to students enrolled in AED Foundation accredited and recognized programs through an exciting partnership with the mikeroweWORKS Foundation. “The AED Foundation works hard to strengthen dealerships and the construction equipment industry, and we know that when our dealers get involved and take advantage of the information and resources that we offer, they see the benefits for themselves,” Lintow said. One of the Foundation’s most significant goals is solving the construction equipment industry’s present and future workforce shortage. Resolving a problem of this magnitude will likely require a lot of effort and a bold new way of thinking. Fortunately, The AED Foundation is prepared on both counts, and is in the process of tackling the technician crisis with a multi-pronged approach that includes an innovative community-based, schoolto-work partnership strategy. Rather than waiting for talented young men and women to seek out careers in the industry, the Foundation’s strategy takes technician recruitment efforts directly to classrooms by connecting middle and high school educators, as well as students and parents, with local dealers and technical colleges. The AED Foundation also provides these potential future diesel equipment technicians with the support they need to become highly skilled in a growing field that’s often overlooked by young people who are considering their career options. Working with the College of William & Mary, the Foundation will 36 | www.cedmag.com | Construction Equipment Distribution | December 2016

also continue its workforce research into the technician shortage. The 2017 study will focus on opportunities to impact and improve workforce development outcomes, in addition to identifying ways that The AED Foundation and dealerships can work together to combat the issues that a dwindling pool of qualified technicians creates for the construction equipment industry. “Part of the funding from the 2017 AED Foundation Annual Campaign will go to help cover the cost of important industry research, including a new workforce development study to determine where technicians are coming from and where they can potentially come from,” Lintow said. Additionally, The AED Foundation will continue to use its accreditation program to issue credentials to technical schools and post-secondary community colleges with diesel technology curriculum that meets the Foundation’s rigorous standards and recognizes the importance of the academic and technical skill sets that students need to succeed in today’s construction equipment industry. Just last year, The AED Foundation expanded its accreditation outreach to form the AED Foundation Canada College Affiliate initiative, which added three schools to the Foundation’s growing list of affiliated colleges. Currently, The AED Foundation Accreditation Program boasts 41 accredited programs at 31 colleges in the United States and Canada, as well as an additional 12 programs at 12 colleges that are in the process of gaining accreditation. As its education and outreach efforts continue to grow, the Foundation hopes to eventually accredit as many as 70 community and technical colleges – and graduate more than 1,400 well-trained students – each year. Investments in the 2017 AED Foundation Annual Campaign also support the Foundation’s Dealer Learning Center. Formerly known as AED University, the recently revamped and easy-to-use educational resource features AED certifications, live and on-demand webinars, and self-study courses – grouped by category and content type – that both dealers and their employees can use to build and strengthen their industry-related skill sets. One of the biggest advantages of the Dealer Learning Center is that much of its contents can be accessed at any time, from anywhere – making it easy to fit important learning opportunities into even the busiest of schedules. “The Dealer Learning Center really benefits dealers and dealerships because employees can actually do education whenever they want – at night, during their break, etc.,” Lintow said. “One of the best things about this education center is that dealers can use it however it works best for them.” In addition to helping The AED Foundation achieve its overall goals, dealers who invest in the annual campaign can take advantage of a number of special incentives. For example, dealers who invest a minimum of $2,000 can access all of the Foundation’s 2016 webinars at their main location during 2017, while investors who contribute $3,000 receive access to the Foundation’s 2015 and 2016 webinars at their main location for all of 2017. Dealers who make an investment of $8,000 or more not only gain access to all of the 2015 and 2016 webinars at their main location for 2017, they also receive their own co-branded Dealer Learning Center that features their company logo. For more information on contributing to The AED Foundation’s 2017 Annual Campaign, contact Rebecca Lintow, Director of Sales & Development, 630-468-5113 or rlintow@aednet.org. or visit http://aedfoundation.org.


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McCann Industries, Inc. Continues Strong Relationship with The AED Foundation By Heidi Bitsoli

Jim McCann is president and CEO of Addison, Ill.-based McCann Industries Inc., the launched by his father, Richard J. McCann, in 1967, as the McCann Construction Specialties Company.

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anuary is a time for the new, and that flip of the calendar The AED Foundation page brings a fresh face to the board of the Associated Equipment Distributors Foundation. Donor Spotlight While Jim McCann, president and CEO of Addison, Ill.-based Your donation fuels the work McCann Industries Inc., may be new to the role, he’s hardly an that allows The AED Foununfamiliar presence. His company has been involved with the dation to develop a dealer Foundation for many years, and he’s served on the boards of – or model for success. The future is a member of – several other industry-affiliated foundations. of dealerships depend on how “Jim McCann has been a continual supporter we come together to build our of the foundation for many years,” says Rebecca industry's workforce. Thank Lintow, director of sales and development for the you McCann Industries, Inc. for AED Foundation. “His company has supported the investing in the future of our Foundation through the annual campaign, and his industry! staff volunteers its time as well.” The value is clear, according to McCann. “I view it very simply. AED people are the best of the best. (We To contribute to The AED Foundation annual campaign, visit can) interact and learn. It’s worth the membership, bit.ly/2017aedfcampaign. in my mind.” McCann brings a wealth of experience to the Foundation, too. The company he now heads was launched by his father, Richard J. McCann, in 1967, as the McCann Construction Specialties Company. At the time they sold concrete forms and accessories. Through the decades the company grew to eventually represent several manufacturers of construction products and light equipment. In 1994 there was a large leap forward as McCann Power & Equipment was established when it acquired three Case Construction Equipment dealerships. The two companies merged in 2000 to form McCann Industries Inc., offering a full range of equipment, contractor supplies and services to the construction industry. Today there are seven McCann locations – six in the Chicagoland area and one in northwestern Indiana. McCann represents more than 400 suppliers and manufacturers, and provides equipment and supplies for a wide range of contractors in terms of sales, service and rentals. Equipment manufacturers represented by McCann Industries include Case, Takeuchi, Allen Engineering and many others. McCann joined the company in 1991, starting in outside sales. Over the years he assumed more responsibility. In 1997 he was named rental manager, then in 1999 he became sales manager, followed by being promoted to vice president of sales and marketing the following year. He was named president in 2013 and added the title of CEO in 2015. “Our goal is to be the first choice (of our clients),” McCann says of the company’s philosophy. “We have a very strong representation locally, and enjoy very long-term relationships. We’re a bit unique in the AED world; we’re a full-blown distributor.” When asked how the business has changed through the years, McCann replies with a question of his own: “How has it not changed? It’s a completely different organization.” Most dramatic is the 2000 merger, but also significant are the present challenges the industry faces. “I have an open mind,” McCann says of joining, “and hope to learn more about AED workforce development so we can (continue to) develop the industry. The skilled workforce shortage – it’s an issue. We need to develop programs and keep the focus on attracting technicians to our industry.” “McCann’s always been willing to help promote education and workforce development,” agrees Michael Dexter, senior regional manager/director of member engagement for AED. “We participate in education opportunities,” he adds, and he would like to build on that, too, as a board member. “We are always looking for (hires),” he says. “We try to raise our own to a certain degree, (but) it’s a costly prep.” Dexter seconds that. “(The industry) always needs more people.” Many students seem to be discouraged from attending community college or trade school, even though those technicians can sometimes earn $100,000 or more a year. McCann seconds that he’d like to see more enrollment to fill labor shortages in the industry. To have more qualified technicians to fill that skills gap is a desirable outcome. “You see higher unemployment in certain industries, but not in ours. It’s very difficult to find qualified technicians.”

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CONDEX EXHIBITORS 1031 Exchange Programs from Accruit and PwC...............................................................................Booth 218 PwC and Accruit, the AED’s preferred providers of like-kind exchanges (LKEs), service more than 170 clients across 20 industries with integrated 1031 like-kind exchange programs. These exchanges provide for the deferral of taxes on gains realized through the sale of business assets as long as those gains are reinvested in like-kind replacement assets. Companies that perform multiple like-kind exchanges each year or that require a solution for managing complex personal property exchanges may benefit from what is known as a like-kind exchange program. Combining PwC's tax and technology proficiencies with Accruit's qualified intermediary expertise, we are able to structure comprehensive LKE programs with the clear separation of tax and like-kind exchange services required by the Internal Revenue Code.Visit us in Booth #218 at the AED Summit to learn more about the potential of a like-kind exchange program for your business.

Altus........................................................................................................................................................... Booth 601 You have identified your problem accounts. You have decided what collections approach you would like to use. But how do you know what to expect as the outcome? Not all collection accounts will end with a successful outcome. This can be frustrating not only for you as a client, but also for your agency when they have to deliver bad news. The following chart has been created as an internal probability guideline by the Commercial Law League of America. Through a blind study it was found that these collectability percentages over time were accurate across a vast number of companies throughout the United States, regardless of industry. I would encourage all members to adopt this chart into their own internal credit departments to assist in having realistic internal and external collections expectations. Visit www.trustaltus.com.

AMI Attachments Graptor Integrated Thumb Bucket ........................................................................... Booth 212 The AMI Attachments Graptor is the only integrated thumb bucket powered by a helical actuator, producing over 38,000 foot-pounds of torque at 3000 psi. Holding strength like this maintains constant grip on the load throughout the bucket’s entire rotation. This makes the Graptor perfect for handling large, heavy objects or grabbing bucketfuls of debris. Starting with AMI’s Heavy Duty Digging Bucket made with AR400 steel, aggressive serrated sidebars are added; or choose optional bolt-on side cutters. The Graptor is available for most sizes of excavator and comes with AMI Attachments’ two-year warranty. For more information about the AMI Graptor Integrated Thumb Bucket or other AMI Attachments products, please email sales@amiattachments.com or visit www.amiattachments.com.

ANACONDA USA .................................................................................................................................... Booth 1312 Anaconda Equipment International® manufactures and exports machinery for use primarily in the mining, quarrying and waste recycling industries. Anaconda’s current range of equipment includes conventional screening units, scalpers, trommel screens and mobile conveyors. Since entering the U.S. market eight years ago, Anaconda has been exceeding customer expectations with reliable, durable and high-performing products. Anaconda continues to surge forward; with the recent launch of more new products, 40 | www.cedmag.com | Construction Equipment Distribution | December 2016


the range now extends to more than 20 products. Our dealer network extends across North America, and our overall presence in this sector is becoming more dominant. The TD620 model has been introduced following demand from customers who require a machine to handle larger volumes and feed size than those offered by the highly successful TD516. Reflecting their expertise in trommel design/manufacture, Anaconda® has launched the TD620 trommel screen specifically for processing materials such as waste, compost, woodchip, soil, and related products. We look forward to meeting with customers and discussing the features and benefits of our extensive product portfolio. Visit www.anacondausa.com.

ATLAS..........................................................................................................................................................Booth 110 Since 1919 we’ve been building our machines exactly according to the requirements of the people who use them every day, always focusing on customers’ benefit, because their satisfaction is our top priority. ATLAS develops successful crane, wheeled and crawler excavator and material handling technologies and provides superior quality products and services. We build robust machines that enable you to work more effectively, comfortably and safely than ever before. We offer a great variety of versions with regard to load capacity, reach, and features, as well as fuss-free and easily mountable work tools. As our knowhow continues to grow, so does our dealer and service network worldwide, in particular in the United States. We can thus guarantee that we will always be on the spot when you need us. Please contact us and we will find the suitable solution for you, too.

Avala Marketing Group ............................................................................................................................ Booth 402 AVALA Marketing Group helps brands selling high consideration goods and services through dealer networks, drive more revenue throughout the entire customer lifecycle. We combine data, intelligent digital strategies, and technology to increase visibility, deliver leads, close more sales, increase customer lifetime December 2016 | Construction Equipment Distribution | www.cedmag.com | 41


value, and maximize your marketing ROI. Our talented team of experts use Aimbase®, our automated intelligent marketing platform to implement successful digital marketing strategies based on processes and best practices that have been refined over thousands of campaigns. Visit AvalaMarketing.com to learn more.

Breaker Technology Inc...........................................................................................................................Booth 1121 Demolish Inefficiency with Breaker Technology’s MCP-IT Pulverizer at CONDEX 2017. Breaker Technology Inc. (BTI), will be showing its MCP-IT Pulverizer demolition attachment at this year’s CONDEX. It’s the ideal attachment to reduce and fragment demolished material, making disposal and recycling easier by separating the reinforced iron from the reinforced concrete. The MCP-IT’s mouth was designed for easy replacement of worn parts in order to restore the machine to its original profile and performance, saving the user time and money. BTI offers a full range of high-quality demolition attachments including breakers, pulverizers, multi-processors and shears. Breaker Technology Inc. is a leading North American manufacturer of rock-breaking equipment for quarries, mines, and construction and demolition companies to help them improve productivity and break into profitability. Situated in Thornbury, Ontario, BTI has been innovating custom engineering solutions since 1958. We offer a depth of engineering experience, a dedicated and professional support network and a commitment to superior customer service, remaining a trusted brand in today’s aggregate and mining, construction, and demolition industries.

Chicago Pneumatic LED Light Tower .................................................................................................... Booth 310 Chicago Pneumatic Construction Equipment (CP) features the CPLT V5+ HiLight LED light tower in their lineup. The high-performance light tower features a heavy-duty polyethylene canopy for rugged durability and is designed to withstand the most extreme elements and working conditions. The canopy, coupled with the light tower’s compact size, ease of transportation, safety features and lighting performance, makes the CPLT V5+ a great solution on any jobsite. It can be used in a wide range of applications and industries, including public lighting, events, roadwork, construction sites and general industry work. The CPLT V5+ offers high performance and luminosity with four LED lamps that are 350 watts each. With a 28-gallon fuel tank, the new light tower is capable of 150 hours of operation with all four lamps before refueling, maximizing productivity and illumination time. Other features include an environmentally friendly frame design that prevents oil, fluids and fuel from leaking out and contaminating the ground.

Connect Work Tools ................................................................................................................................ Booth 503 The Connect Work Tools CH series breaker is a proven, premium quality, hydraulically fired breaker reliably operating for over 20 years in the North American market. The Small, Medium, and Large series include fourteen models available to match your carrier and job requirements. All CH breakers feature top-down lubrication and slip-fit tool bushings allowing for easy maintenance in the field and reduced repair costs. The boxed housing design provides noise reduction while protecting the power cell. The Medium and Large series offer an anti-blank fire feature. Flow control is standard on the large breaker series. These are just a few of the attributes that make the CH series breaker a workhorse that lasts. Low operating costs , maximum breaking power in every blow, backed by a 3-year limited warranty and a platform that allows cost efficient rebuilds make the CH breaker stand out in the field of competitors. Contact info@connectworktools.com, 920-238-6657 42 | www.cedmag.com | Construction Equipment Distribution | December 2016


Construction Equipment Guide............................................................................................................ Booth 1208 Construction Equipment Guide (CEG) is a national publication and website that provides industry news; articles on construction equipment, projects and legislation; auction coverage; business profiles and events; and more. CEG's biweekly newspapers consist of four regional editions – Northeast, Southeast, Midwest and Western. CEG's website, www. constructionequipmentguide.com, is a one-stop source for news, used equipment searches, equipment dealer locators, upcoming auctions, construction videos, online editions of its print editions and more. Founded in 1957, CEG is based in Fort Washington, Pa., and is a proud member of the Associated Press.

Commercial Credit Group...................................................................................................................... Booth 1227 Commercial Credit Group (CCG) can help get your customers the financing they need to make that next equipment purchase. Even if they’re currently experiencing slow cash flow or collection issues, they have options – which means you can make the sale. We can help with the following: ▶ Financing or leasing new equipment ▶ Financing or leasing used equipment ▶ Converting rentals into purchases Common “barriers” to financing can often be overcome. Our unique credit analysis model looks at the customer’s whole picture, not just their credit score. This means your customers could have alternatives. When captive financing and bank lenders may be unable to provide financing, contact us and we’ll investigate viable options. Our goal is to help you close more sales. Look for us at the AED Summit, Suite #1627, and at CONDEX, Booth #1227, or visit www.commercialcreditgroup.com.

Commercial Web Services ...................................................................................................................... Booth 503 GoSocial, a social media management service provided by Commercial Web Services, expands dealers’ online presence on social media, connecting them with thousands of potential customers. The service consists of weekly content postings to Facebook and Twitter, monthly advertising and reporting, and social page creation and/or optimization of a current social page. “Many dealers know that social media is crucial to their online success, but they either don’t have the time to manage it or they don’t understand how to make it effective,” said Ricardo Porter, general manager of Commercial Web Services. “That is where we step in with GoSocial and our team of social media experts, managing it for them.” For more information on GoSocial and Commercial Web Services, please contact 866-5296008 or marketing@commercialwebservices.com.

Diamond Mowers.......................................................................................................................................Booth 411 Diamond Mowers’ 60" Skid-Steer Forestry Head is ready to take a bite out of your next job. Cuts up to 14" material and mulches up to 6" material; Throws material away from machine so that it’s safer for operators and easier on gear; Mulches material down to approximately 2” in diameter for quick decomposition; Isn’t limited to the machine’s hydraulic horsepower and creates more power using inertia built up in the dish to quickly gather and process trees. It also allows you to cut below ground level and produces chips that don’t clog filters. It comes equipped with hoses and half-inch couplers. Diamond Mowers is located in Sioux Falls, South Dakota and can be reached at 800-658-5561 or Info@ DiamondMowers.com. Visit www.DiamondMowers.com. December 2016 | Construction Equipment Distribution | www.cedmag.com | 43


Dieci US LLC.............................................................................................................................................. Booth 305 The Dieci Super Compact a-55.19 telehandler gets the job done. This machine is not only maneuverable with its three steering modes, but it can also lift, dump, place and reach. Made for general construction, landscaping, lumber yards, nursery, industrial, agricultural and concrete work applications. The operator does not have to step over the top of the attachment, as he does with skid steer loaders. Interchange skid steer attachments with a skid steer adapter. The Dieci a-55.19 was designed with a very low machine height, tight turning radius, compact footprint and side-mounted Kubota diesel engine. The four-wheel-drive traction allows operators to walk over a snow pile. Low-access buildings, barns, quonsets and parking garages are not a problem. When the jobsite is crowded, the last thing needed is another big machine to maneuver. Ready for the most crowded of job sites, these machines are the perfect combination of agility, comfort and versatility!

Digga North America’s Cement Mixer..................................................................................................... Booth 513 Now available from Iowa-based Digga North America, our new cement mixer uses your Digga auger drive to rotate the mixer, eliminating the need for a separate power source on the job. Available in two sizes for job matching, 30 gal (4 cf) and 18.5 gal (2.5 cf), this versatile attachment uses a cradle attached to your mount, supporting the mixer’s weight during operation. Easy connection – simply pin cradle to auger frame and attach mixer bowl; Fast change – drilling to mixing in under two minutes; No engine or chain maintenance; And use for cement, mulch, animal feed and fertilizer! Digga is a leading global manufacturer of planetary gearboxes for machinery attachments, serving the construction and earthmoving industries since 1981. Digga’s North American operation is centrally located in Dyersville, Iowa. For more information, contact Digga North America, (563) 875-7915; fax (563) 875-9139; email info@diggausa.com or visit www.diggausa.com

eBS Mechdata Inc. ................................................................................................................................... Booth 317 Designed to allow your business to take off, eSuite, our eBS web and mobile application suite, will enhance your customers’ experience with you, anywhere, anytime. Your customers will enjoy the ease of use in submitting their service calls and scheduling rentals from a mobile application branded to your business with our Mobile Service Call app. eHire allows you to onboard employees more smoothly. Your sales staff will never forget a call with CRMobile, and then they can quote and report from anywhere with Quote2Sale. Search your equipment anywhere with eSearch. Your employees can get signatures on an order or rental check-in so that you never have to question who picked up or when the damage occurred on the go with eSign and at the office with Kiosk. Check out eBS and the newest product, eSuite, this January in Chicago at Summit, Booth #317.

Fecon Inc. .................................................................................................................................................. Booth 614 Fecon Inc. introduces the new SH280 Stump Hog stump grinder for the company’s versatile FTX128 track carrier. The SH280 Stump Hog brings big performance and robust construction to the job when powered by the 60-GPM/4,600-PSI high flow of the FTX128. The SH280 delivers impressive torque and wheel speed of 1,000 rpm through a large displacement direct drive 227cc hydraulic motor. The large 28.75” diameter wheel is swept from side to side with the ergonomic control of the FTX128 joystick. The dedicated auxiliary low flow of the tractor powers the sweep function so no performance is taken from the high flow power to the wheel. This combination enables operators to be more productive, moving quickly from stump to stump in the quiet and comfortable enclosed FTX128 cab. 44 | www.cedmag.com | Construction Equipment Distribution | December 2016


Felling Trailers Inc. ................................................................................................................................... Booth 505 Felling Trailers Inc.’s air tilt deck-over trailer’s unique design utilizes air, powered from the tow vehicle, to tilt the trailer and optional ramps, eliminating the need for hydraulics. It is touted to have the “towability of a TAG trailer with the versatility of a tilt.” With its low-clearance loading angle, this model is great for transporting low clearance equipment such as compact excavators, track loaders, pavers, scissor lifts, and more. With the option of ramps, a load angle as low as 7º can be achieved for loading equipment.

FINN Corporation.....................................................................................................................................Booth 1116 FINN Corporation introduces the first-ever large tank HydroSeeder® with a CARB compliant, Tier 4 Final diesel engine. The new machine is powered by a Cummins QSB 4.5 liter diesel engine and meets the state of California’s emissions standards for diesel powered machinery. Tier 4 Final/Euro Stage IV engine compliance, as legislated by the U.S. Environmental Protection Agency, reduces exhaust emissions by more than 90 percent through integration of engine and fuel controls. FINN isn’t federally required to convert its large tank HydroSeeders to Tier 4 Final compliance until the end of 2017; however, when a customer needed one urgently to meet job requirements, the FINN team of engineers and production crew came together to manufacture the environmentally advanced machine. FINN stands alone as the largest manufacturer of EPA-compliant hydroseeding and erosion control equipment in North America, building equipment that meets our customers’ needs and the needs of the environments where they live.

The Flip Screen......................................................................................................................................... Booth 710 The Flip Screen is a multi-award-winning screening attachment built for skid steers, excavators, wheel loaders, backhoes and telehandlers. Our high volume screening bucket will inexpensively and efficiently sort and recover almost all aggregates onsite, making it perfect for industries such as civil works, construction, demolition, scrap metal screening, skip bins, waste transfer, quarries, mining and landscaping.

FRD ............................................................................................................................................................ Booth 617 FRD USA Rock Drill Division ER blast hole drill delivers superior penetration, increased impact, enhanced fuel efficiency and easy operation. When coupled with the new Furukawa HD822 drifter (patent applied for), the HCR1100-ER drill is proven to minimize drill noise and vibration while increasing performance. Specifically, the drill delivers 26.7 percent more impact and 13 percent more airflow than its predecessor, giving customers the ability to drill larger diameter holes in harder rock. For the operator, the HCR1100-ER is all about ease of performance. The dual dampening system stabilizes the bit against the rock, ensuring efficient energy transfer and straighter holes; in fact, the system automatically adjusts the drifter for maximum performance regardless of rock condition. In overall design, the control station is positioned to keep the operator away from drill rotation and dust, while the monitoring system gives a quick visual scan of engine temperature, hydraulic oil temperature and fluid levels.

FTG Equipment ........................................................................................................................................ Booth 714 The new TecnoGen KL53FQ provides 40kW of standby power, incorporating a cooling system consisting of multiple variable speed fans with INVERTER VSi technology, providing full load decibel rating as low as 53dBA. An internal fuel capacity of 64 gallons gives you long run times with or without the trailer. If you need December 2016 | Construction Equipment Distribution | www.cedmag.com | 45


more time, external fuel cell hookups are standard. TecnoGen’s MegaSilent series has been developed with three special features in mind: quietness, compactness and reliability. TecnoGen generators are designed for durability and reliability even in the most extreme conditions. They are suitable for reaching the maximum efficiency in cooling with the minimum consumption and, due to the innovative VSi technology, they optimally combine energy production at high loads with very low noise levels (53dBA).

Geith .......................................................................................................................................................... Booth 306 Geith, a leading specialist with more than 50 years of expertise in the design and manufacture of excavator attachments, offers a wide range of hydraulic and manual quick couplers for excavators from 1 to 85 tons. Geith’s new Tilting Quick Coupler saves time and money for operators by providing up to 180 degrees of side-to-side rotation to dramatically increase versatility and productivity. The coupler is designed for use with excavators, mini-excavators and backhoe loaders weighing between 6 and 26 tons, and is operated entirely from the inside of the cab. It features a patented “curl to release” control system and four independent locking components to meet all current and proposed safety standards (ISO/DIS 13031). The Tilting Quick Coupler also has an internal relief valve for overload protection and a variable pin center design to accommodate a wide variety of OEM attachments. Geith also offers a full range of excavator and mini-excavator buckets, thumbs and other specialty attachments. For more information on Geith couplers and buckets, visit www.geith.com.

Helac .........................................................................................................................................................Booth 1107 Have a tight work space? Working on a hill? Add a PowerTilt attachment to your machine to eliminate the need for extra machines on the jobsite and increase your productivity by more than 50 percent. The new standard for all machines should be the ability to position the bucket up to 180 degrees instead of moving the entire machine. Whether your jobsite requires site development, setting underground utilities, or clearing ditches, the Helac PowerTilt® is a versatile tool for multiple attachments and is engineered for durability and performance. PowerTilt® uses Helac Corporation’s innovative sliding-spline operating technology to convert linear piston motion into powerful shaft rotation. Available for equipment up to 75,000 lbs. in eight sizes with standard rotation of up to 180 degrees, each PowerTilt® model is designed for a specific class of machinery and individually customized to fit the carrier. For more information, call 1-800-PWR-TILT or email attachments@helac.com. Visit our website at www.helac.com.

Indeco North America ............................................................................................................................ Booth 1219 Indeco North America, a leading provider of hydraulic attachments for demanding demolition, mining, recycling and road construction applications, recently launched its new IMP Series of multiprocessors. The IMP Series is a highly cost-effective solution for companies that need to handle a wide range of jobsite demolition tasks without additional equipment. This extremely versatile product combines the functionality of steel shears, a demolition crusher and a pulverizer thanks to its unique jaw shape and three different jaw sets. Fabricated with extra-strength HARDOX® steel alloys that eliminate any body flex, the IMP Series is specifically designed to withstand high levels of pressure, wear and abrasion, regardless of jobsite conditions. It features full 360-degree hydraulic rotation with a protection valve, interchangeable teeth in pulverizer configuration, and reversible steel blades with an exclusive 46 | www.cedmag.com | Construction Equipment Distribution | December 2016


PREPARE

TO

ADAPT

The next generation ARDCO AMT: One machine, countless applications. From construction projects to extreme off-road sites, this power-packed unit can adapt to nearly any task. Change is coming. And change is good. See the AMT at the AED Summit in Chicago. ARDCOMFG.COM

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dual-profile piercing tip in shear configuration. The IMP Series easily accommodates a wide variety of carrier sizes from 12 to 65 tons and is part of Indeco’s newly redesigned family of pulverizers, multi-grabs and steel shears

Infor .........................................................................................................................................................Booth 704 Modernize your business with Infor Equipment Software. As customer behaviors and expectations change, you must have the flexibility to adjust your business practices to accommodate those changes. The next generation of dealers is quickly embracing innovative technologies such as mobility, omni-channel connectivity, cloud, analytics, equipment telematics, and other technological trends to optimize daily operations and hone their competitive edge. Infor Equipment provides it all – it’s the broadest, deepest integrated software system created specifically for equipment-centric companies that sell, rent and service equipment. With 25 years of experience in the equipment industry, we can help you achieve new levels of profitability and growth. Infor builds beautiful business applications with last-mile functionality and scientific insights delivered as a cloud service.

Interstate Billing Service ......................................................................................................................... Booth 704 Since 1984 Interstate Billing Service has offered a full-service accounts receivable program to a wide range of industries. Today over 450 clients across the United States trust IBS to simplify cash flow, eliminate their collections and billing headaches, and reduce their risk and expenses. Because we take care of our clients’ accounts receiv48 | www.cedmag.com | Construction Equipment Distribution | December 2016


able, they can focus their efforts on what they do best, whether that’s sales, service, distribution or production. Interstate Billing Service clients enjoy cutting-edge 24/7 online account management, unbeatable customer service (delivered with our signature Southern hospitality), plus extended financing options provided by our strong and stable source of capital funding, Bank Independent. To learn more about Interstate Billing Service, visit www.interstatebilling.com, or schedule a conversation or convenient on-site visit with a member of our sales team by calling 1-800223-9146, ext. 2308.

IROCK Crushers ......................................................................................................................................Booth 1120 IROCK Crushers will highlight its versatile line of mobile crushing and screening equipment at Associated Equipment Distributor’s Summit, Jan. 10-13 at the Hyatt Regency in Chicago. IROCK Crushers is a leading manufacturer of portable crushing plants and screening equipment. The company, which formed in 1992, is committed to bringing productive and high-quality equipment and solutions to customers through innovation, expertise and outstanding service and support. For more information, contact IROCK Crushers, 5531 Canal Road, Valley View, OH 44125, call 866-240-0201, email sales@irockcrushers.com, visit www.irockcrushers. com, or see the equipment in action on YouTube.

J.T. Bates Insurance ................................................................................................................................. Booth 610 What makes all-risk coverage even better? Fewer exclusions. Rental Equipment Protection from J.T. Bates Insurance Group is the best risk management product in the rental industry, and we just made it better. Exclusions are now limited to loss of use, mechanical breakdown, wear and tear, missing property and criminal activity committed by the dealer. Overturns, collisions, ingestion, theft, falling objects … all are covered with all-risk coverage. Call us today for a free, no-obligation quote. We challenge you to find better rates for all-risk coverage with the same limited exclusions. Contact Kimberly Orza, Sales Manager, at 877.900.8729 ext. 104

Knapheide Mechanics Trucks ................................................................................................................. Booth 403 Rugged Knapheide Mechanics Trucks have been utilized in many different industries, including heavy construction, railroads, municipalities, mining, agriculture and equipment rental. They provide reliability, productivity and safety on the jobsite. Knapheide Mechanics Trucks are complete turnkey packages that mechanics need and have come to expect in a service truck. All mechanics trucks from Knapheide come loaded with standard features to maximize value. They feature a crane for heavy lifting, heavy duty mechanics drawers for organized tool storage, and ample and secure storage within the side compartments. Choose from a variety of body lengths, electric or hydraulic cranes, compressors, welders, generators, lube packages and auxiliary lighting to customize the body to best fit your needs. Learn more about our mechanics trucks at CONDEX in Booth #403 and check out the KMT1 mechanics truck we’ll have on display!

LyCox Enterprises ...............................................................................................................................Booth 1231 The Walk’n’Roll packer/roller, “King of the Grader-Attached Compactors,” is the most versatile grader-attached compactor on the market today. ▶ Conserve moisture during road maintenance in dry spells. ▶ Seal moisture of a newly crowned road in a wet spell. ▶ Compact each lift of material to make a solid base during new road construction. ▶ When maintaining the road, each lift can be tightly packed. A budget-saving tool for better roads with less road maintenance. December 2016 | Construction Equipment Distribution | www.cedmag.com | 49


Midland Machinery Co. Inc. ..................................................................................................................Booth 500 Midland Machinery Co. Inc., the road widener specialists, introduces a new model road widener with the capability to be transported without permits day, night or weekends. This foldable machine transforms to 98.5 inches (2.5meters) width for transport. The SPF-8 is a compact package capable of spreading material from 1 to 8 feet from its 3 cubic yard fold-up hopper by way of a movable, variable speed, 500 tons per hour conveyor. The SPF-8 gives the operator versatility to quickly transform from right to left hand discharge of material depending on job requirements. Powered by a John Deere 74 HP engine, the SPF8 can push a fully loaded 18 wheeler. Before tackling your next road widening project, visit Midland’s website at www.midlandmachinery.com to see a video of this new model.

MiniTrencher ........................................................................................................................................Booth 1315 MiniTrencher recently introduced GeoRipper, handheld commercial and portable trencher for irrigation, electrical, fiber optics, landscape edging, root barriers, dog fencing, etc. With a starting weight of 30 lbs, GeoRipper can be used as a handheld trencher or placed on an EZ Kart for longer runs and consistent digging depths. GeoRipper provides unique features to help decrease labor and time while increasing profit margins, which include: ▶ Digs trenches in tight radiuses ▶ Digs with little turf or ground disturbance for easy backfilling and quick clean up ▶ Works in various soil conditions, i.e. clay, fractured rock and sand ▶ Cuts a trench up to 27” deep and 1.5 – 2.38” wide ▶ Has self-sharpening digging chains that can cut tree roots up to 3” in diameter For more information on MiniTrencher’s GeoRipper or to purchase the handheld trencher, please visit our website at www.minitrencher.com or call us at 800-694-0141.

Montabert ...............................................................................................................................................Booth 306 Montabert, a worldwide leader in the design and manufacturing of hydraulic demolition and drilling equipment, is now offering a new heavy duty cradle for its most popular hydraulic breaker, the V32. The HD cradle better protects the internal components from dust and debris while reducing noise levels and vibration to the carrier and operator. This new design includes a protection plate for the Montabert’s EasyLube cradle mounted lube station that maximizes continuous grease flow. The V32 is suitable for excavators from 37,000 to 66,000 lbs and is known for its increased striking rate of 285 to1050 blows per minute and variable speed technology. This feature allows the breaker to sense and measure material hardness, then automatically adjusts its striking rate and energy output in response. This produces maximum productivity, allowing end-users to save time and money. The V32 comes standard with a two year factory warranty. Visit our website at www.montabertusa.com.

MDS .........................................................................................................................................................Booth 200 MDS (My Dealer Service) is a web-based software application enabling service departments to communicate with their customers, both internal and external, via text or email. MDS gives the service department a platform to do mobile inspections that can be attached to a work order or sent electronically to the customer. Customers can receive, approve and sign estimates on any internet enabled device. MDS keeps all the relevant work order information such as videos, pictures, documents, and internal notes in a file system and archives it after the work order has closed. MDS can also help your customers manage their fleet of equipment with a new dedicated customer portal that allows customers to 50 | www.cedmag.com | Construction Equipment Distribution | December 2016


upload equipment and sync with the service department. Customers can request work orders, perform inspectIons, upload equipment photos/videos and share the status of their fleet with the service department. Stop by the MDS booth #200 at the Condex show.

Rototilt ....................................................................................................................................................Booth 214 Rototilt recently introduced three new tiltrotator models with enhanced control system technology for excavators from 10 to 30 tonne class. The R4 for 10 to 16 tonne excavators, R6 for 15 to 24 tonne class, and R8 for excavators up to 30 tonne. These new models with optional rotate and tilt sensors and Rototilt’s ICS (Innovative Control System) allow operators to see tilt and rotation angles in a compact display monitor, provides a return to dig “home” function, and are GPS ready.Other features with Rototilt’s ICS system include proportional control of all Rototilt functions using only one auxiliary hydraulic circuit, a shake/pulse mode for spreading materials, and Rototilt speed settings for 4 different operators. For more information call Rototilt Inc. at 519-754-2195 or visit www.rototilt.us.

OilQuick ..................................................................................................................................................Booth 507 OilQuick is a fully automatic hydraulic quick coupler that allows you to change hydraulic and mechanical attachments from the comfort of your cab. With this system, you use less equipment and personnel on-site to get the job done. It also extends the life of the attachments by ensuring the operator is using the right attachment for the job. It does this all while being regarded as one of the safest couplers on the market, exceeding all quick coupler safety guidelines set by any independent and government agencies. Other great benefits that come from using the OilQuick coupler: tight hose routing decreases number of hose replacements needed; reduced exposure to hot, high pressure oil when changing attachments; less workman’s compensation claims stemming from swinging a sledgehammer or climbing a 7ladder. It’s time to change! Contact OilQuickUSA at jason@oilquickusa.com or 262-607-8425.

Okada ......................................................................................................................................................Booth 618 The Okada America, Inc.’s ORV Series hydraulic breakers are the result of decades of field experience and a long-standing record of leadership in the industry. Thirteen ORV Series hydraulic breakers ranging in Energy Classes from 150 foot pounds to 12,000 foot-pounds provide a broad range of solutions for your skid-steers, compact excavators, track loaders, loader/backhoes and excavators. Key features include variable speed control, large capacity accumulator, carrier-mounted auto-grease system, central grease port and larger N2 gas chamber. Visit our website at www.okadaamerica.com.

Pettibone ..............................................................................................................................................Booth 1026 Following in the tradition of the K 4x4 and K 6x6 off-road transportation platforms, the next generation Articulating Multi-Purpose Truck (AMT) from ARDCO features a modular back end platform that offers the ability to customize attachments to suit any work environment, from urban construction projects to extreme off-road projects. Adaptable to numerous applications, the powerful and rugged AMT is highlighted by a convenient, easy-to-use universal attachment system that is designed to accept a wide array of equipment. Available configurations include a dump bed, water tank, fuel tank, flat bed, utility bed, personnel carrier, hi-rail and many more. Multiple tire choices and other custom options help further configure the machine to various work conditions. The AMT can navigate difficult terrain and work in any environment, including construction, desert, forest, mountains, artic, swamp and railroad. Learn more at www.ardco.net. December 2016 | Construction Equipment Distribution | www.cedmag.com | 51


PRINOTH ................................................................................................................................................Booth 311 PRINOTH is one of the world’s leading manufacturers of tracked vehicles. The stateof-the-art technology and innovative design of the products has set them apart, offering impressive efficiency and sustainability. With over a half century of tracked vehicle experience, PRINOTH continues to develop and refine the sprocket-track system invented by Bombardier in 1935. It’s just one of the reasons why our tracked vehicles are regarded as the best in the world and why you’ll find a PRINOTH wherever there’s hard work to be done. Whether mud, gravel or snow, PRINOTH tracked utility vehicles are reliable tools for extreme use in extreme environments. Thanks to their huge payload, these vehicles can be equipped with a multitude of specialized attachments. PRINOTH’s tracked utility vehicles exert very low pressure on the ground and go places where wheeled vehicles sink. Today, the company is part of the HTI Group (High Technology Industries) with more than 3,000 employees worldwide.

Rotar .......................................................................................................................................................Booth 201 At Rotar we believe that people and machines can operate more efficiently. From this philosophy, we have develop state-of-the-art equipment for hydraulic excavators and wheeled loaders. Our main objective? To make products that guarantee operational continuity, minimal operational costs and optimal availability. We go about this in our own unique way. With enthusiastic professionals, short lines of communication and proven quality. This is how we go about making your daily demolition, recycling and material handling jobs easier and more profitable. Rotar is a close-knit team where youthful enthusiasm is complemented by many years of experience. We believe your problem to be our problem and your success to be our success. That is why we all have a strong drive to prove ourselves. Whether it’s about implementing improvements in production or offering expert advice; our highly committed team will always go that extra mile for you! Visit our website at www.rotar.com.

SBM Mineral Processing .......................................................................................................................Booth 300 SBM Mineral Processing is introducing the new diesel-electric, compact and powerful tracked mobile closed circuit jaw crusher plant JAWMAX® 1006 ECO/ MAXI for aggregates production and recycling applications. The centerpiece of the plant is an STE 100.60 ASV single-toggle jaw crusher -opening ~40”x 26” -throughput capacity of up to 200 tph. The JAWMAX 1006 ECO/ MAXI has several innovations like the new fully automatic overload protection function which prevents unbreakable objects and materials from damaging or blocking the crusher. The JAWMAX® Package of Benefits offers as well: Fully automatic overload protection crushing gap adjustment; Control of speed and clockwise/counter-clockwise rotation; Pre-screening and MAXI version with quick detachable single deck circular vibratory screen (~9´x 4´); Eco-friendly drive system - All units are Diesel over Electric or optionally 100% electrically driven; Electric undercarriage; Highly efficient operating processes; and a compact transport size of 33´ x 8.5´ x 10.5´ and a total weight of 66.000lbs (basic Unit).

Screen Machine ....................................................................................................................................Booth 1100 Built with all the rugged performance and durability of our standard 4043T, the 4043TR Recirculating Impact Crusher offers two additional functions: A large two-deck screen, fed directly from the crusher, delivers sized product off the fines conveyor. An additional radial overs conveyor feeds directly back into the hopper, or can be positioned to the side for stockpiling. 52 | www.cedmag.com | Construction Equipment Distribution | December 2016


The 4043TR incorporates two of our patented technologies — the Crusher Relief System™ for the crusher lid and Smooth Start® for the screen box. For unmatched productivity, especially in areas such as road construction where a smaller footprint is needed, the 4043TR is an ideal choice. Visit our website at www.screenmachine.com

Sentry ...................................................................................................................................................Booth 1001 You run your dealership the right way, and you deserve an insurance provider that listens to you. At Sentry, that’s how we operate. As your carrier, we’ll go beyond generic coverage to provide you with a customized insurance and risk management package. We believe unique dealers need more than one-size-fits-all solutions. That’s why our innovative property and casualty insurance options offer room for personalization, including coverages for: ▶ Employment-related expenses, including wrongful termination and discrimination ▶ Your customers’ property when it’s damaged as a result of your mechanic’s work ▶ Inventory and customers’ property anywhere in the U.S. We’ve been delivering peace of mind since 1904, and we’re proud of our history. But we know it wouldn’t mean much if we weren’t looking toward the future and helping you do the same. To find out what we can do for you and your dealership, reach out to Eric Stiles at 715-346-7272 or Eric.Stiles@sentry.com. Visit us on the web at www.sentry.com.

ShearCore ..............................................................................................................................................Booth 507 Fortress Mobile Shears are the latest ‘evolution’ in mobile shear technology, featuring design and manufacturing innovations that are the result of a combined 75 years of mobile shear design and manufacturing December 2016 | Construction Equipment Distribution | www.cedmag.com | 53


experience from Bruce Bacon, Ross Christenson and Jim Campbell. These latest designs incorporate 6” single plate main structures, removal of the annoying wear puck, and a patent pending ‘boot’ to fully protect the upper jaw piercing area. The lower jaw is pre-machined prior to assembly with dowels and receivers to accommodate a perfect fit. All machining is done on 5 axis C-frame machining centers for perfection. Fortress also offers the largest pivot assembly in the industry per power class. These are some of the reasons all our Fortress shears offer a 3 year unlimited hour warranty on the super structure and a 60 day 100% money back guarantee if you are not fully satisfied. Contact ShearCore at bruce@shearcore.com or call 715-395-6060.

SmartEquip ............................................................................................................................................Booth 608 SmartEquip is an online parts support network that connects fleet owners to manufacturers and their dealers with real time access to critical parts and service information. It helps fleet owners generate more profit from their equipment by automating and accelerating the service workflow, thereby increasing asset availability and revenue. The SmartEquip network streamlines the service process, eliminates order errors, improves technician wrench-time and greatly reduces equipment down time. SmartEquip drives the fleet performance that grows profitability. SmartEquip…"Be Ready”.

Soosan USA .........................................................................................................................................Booth 1127 Soosan USA, one of the largest and most experienced manufacturer’s of hydraulic breakers and surface blast hole drills, is pleased be displaying our products in the 2017 Condex Show in booth 1127. Soosan offers a complete range of Hydraulic Breakers for skid & track loaders, mini, midi & excavators ranging from 200 – 16,000 foot/pound classes. All built with reliability, performance and supported by a strong team of industry professionals. Soosan also manufacturers Surface Blast Hole Drills designed to drill holes ranging from 2.5 to 4.5 inches in diameter. Featuring a powerful and reliable drifter, Soosan Drills offer high penetration rate and reliable performance for both quarry and construction applications. Please stop by our booth 1127 and learn how Soosan USA can improve your revenue and bottom line. You can also visit us at www.soosanmachinery.com.

Sterling B2B Group ...............................................................................................................................Booth 711 Sterling B2B Group focuses exclusively on providing payment-processing services to B2B merchants and corporations. With more than 15 years of experience in B2B processing, Sterling revolutionized the payment industry with its Interchange Management® technology, which provides ongoing monitoring of your organization’s payment processing to ensure you qualify for the lowest possible rates. Sterling can generally reduce clients’ processing costs by 30% or more. Unlike the majority of Merchant Services companies who require you to use their proprietary systems, Sterling’s technology can be applied to any non-proprietary system to achieve the least expensive processing rates. Sterling has connectivity into nearly all ERP and accounting systems, including but not limited to Oracle, SAP and Microsoft Dynamics. Sterling understands the processes, security requirements and technical details needed for easy, successful payment processing. There’s no need to be locked into a merchant services company ever again. Contact Sterling B2B Group at 800-564-9964 or visit us on the web at www.sterlingb2bgroup.com.

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Stewart-Amos Sweeper Co. ................................................................................................................Booth 1000 Continuing a long history of providing innovative products and added customer value, Stewart-Amos Sweeper Co. is proud to introduce the Starfire S-4c. It is a heavy duty, broom sweeper mounted on a NON CDL, cab over chassis. The S-4c has the same proven design found in all Starfire models but with many significant enhancements including: super tight 16’9” turning radius, street or curb hopper dump - your choice, 11’ hopper dump, and much more. We don’t believe a sweeper has to be complicated to work better. We build effectively simple, uncomplicated machines with quality components. This ensures our sweepers are easier to operate, maintain and provides customers with the lowest cost of ownership possible. We make 7 broom and 3 regenerative air models. 5 on non-CDL chassis. All sweeper bodies share over 90% parts compatibility. Visit us at booth 1000 or on the web at www.stewart-amos.com.

Sullivan-Palatek .....................................................................................................................................Booth 211 The D260PDDZ is a dual pressure/dual capacity portable air compressor, which delivers 260 CFM at 100 psi or 185 CFM at 150 psi. At its core, a Tier 4 Final Duetz engine (no DEF fluid required) and 127 mm diameter twin screw air end made by Sullivan-Palatek power the portable unit. The compressor is also equipped with a state of the art Sullivan-Palatek Electronic Controller (SPEC), providing digital readouts on everything from compressor temperature to complete engine diagnostics. At 260 CFM/100 psi, the compressor is capable of running up to three 90 lbs breakers for large demolition, and up to eight 15 lbs Chipping Hammers for light demolition and concrete restoration. At 185 CFM/150 psi, the unit is ideal for sandblasting and pipe testing while running a 5/16” nozzle up to 140 psi at the tank. Visit us on the web at www.sullivan-palatek.com.

Textron Aviation ...................................................................................................................................Booth 1200 Textron Aviation’s clean-sheet single engine turboprop, the Cessna Denali, is being designed to outperform its competition in capability, pilot interface and ownership costs. The aircraft’s cabin mockup was recently unveiled at EAA AirVenture 2016. The Denali will be powered by GE’s new advanced turboprop engine and will feature the Garmin G3000 intuitive touch-screen avionics suite. Engineered to achieve cruise speeds of 285 knots and full fuel payload of 1,100 pounds, the Denali will have a range of 1,600 nautical miles at high speed cruise with one pilot and four passengers. The Denali’s flat floor cabin is designed to be the largest in its segment and will offer the versatility to easily convert between passenger and cargo configurations. Denali customers will have access to Textron Aviation’s unmatched global service network dedicated to complete life-cycle support. The program is targeted to achieve first flight in 2018 and letters of intent are being accepted. Visit our website at www.txtav.com.

XAPT .....................................................................................................................................................Booth 1205 As the leading global provider of specialized business services for equipment dealers, XAPT delivers sustainable value through consulting, software and IT implementation. NAXT, our flagship product is an industry-specific, “end-to-end” business solution for equipment dealers and is unmatched in the equipment distribution industry. From CRM to field service, rental, equipment sales, parts, and a full suite of financials, the system incorporates functionality that meets the needs of all areas of the dealership. We work with equipment dealers to deploy our solution in a way that suits your business; on-premise, in the “cloud” or as a hybrid model, we provide the reassurance of a truly integrated Microsoft solution underpinned by a promise of continuous research, development and innovation. We are committed to the Equipment Industry and invested tens of thousands of hours annually adding new cutting edge technology and upgrading the system in synchronization with Microsoft. December 2016 | Construction Equipment Distribution | www.cedmag.com | 55


Your Kind of Town! ▶ Haunted Chicago Tour Explore the most eerie and infamous paranormal happenings throughout Chicago’s history. The supernatural repercussions of tragic events from its past still plague Chicago to this very day. www.chicagohauntings.com ▶ Architecture Tours Chicago is known around the world for its architecture. Whether you tour downtown or a neighborhood, our expert docent guides will tell you the stories behind the buildings. Visit iconic skyscrapers, elegant hotels or the legendary houses of Frank Lloyd Wright. With more than 85 tours to choose from, we won’t blame you if you can’t pick just one. There are many exciting tour transportation options, including by boat, bus/trolley, bike, Segway and walking. www.architecture.org/experience-caf/tours ▶ 360 CHICAGO (formerly John Hancock Observatory) Soaring 1,000 feet over Chicago’s legendary Michigan Avenue, 360 CHICAGO is one of the city’s unique attractions. Located at 875 N. Michigan Avenue on the 94th floor of the John Hancock Center, 360 CHICAGO (formerly John Hancock Observatory) offers breathtaking views of Chicago’s lakefront, magnificent skyline and four neighboring states. After a mere 40-second ride to the observation deck in North America’s fastest elevator, guests can experience what Travel & Leisure magazine voted one of the best views in America. 360 CHICAGO is also the

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only place where locals and visitors alike can enjoy TILT – Chicago’s highest moving experience. This one-of-a-kind marvel tilts guests out and over the city from the 94th floor observation deck and gives up to eight visitors at a time the most thrilling views of Chicago.

▶ The Skydeck (Willis Tower) The Skydeck Offers spectacular views spanning up to four states – a one-stop Chicago experience full of interactive exhibits. And don’t miss The Ledge, a glass balcony extending four feet outside the 103rd floor! The Skydeck is open 365 days a year. Hours from October through February are 10 a.m. to 8 p.m. http://theskydeck.com ▶ Shedd Aquarium Shedd Aquarium offers you connections to the whole aquatic world. Where do you want to go and what do you want to see and experience? With 32,000 animals to meet (and dozens to touch!), award-winning exhibits to explore and in-depth, hands-on activities to try, the possibilities are almost endless. www.sheddaquarium.org ▶ Adler Planetarium: The mission of the Adler Planetarium is to inspire exploration and understanding of our universe. www.adlerplanetarium.org ▶ Museum of Science and Industry: The Museum of Science and Industry, Chicago – one of


the largest science museums in the world – is home to more than 400,000 square feet of hands-on exhibits designed to spark scientific inquiry and creativity. www.msichicago.org ▶ Art Institute: One of TripAdvisor’s Top Museums in the World – four years in a row. The museum is open daily 10:30–5:00 and on Thursday until 8:00. www.artic.edu ▶ Magnificent Mile: The Magnificent Mile encompasses the 13-block stretch of North Michigan Avenue that runs from the banks of the Chicago River to the south and to Oak Street to the north. The Magnificent Mile district extends a full square mile from North Michigan Avenue, including east to the scenic lakefront.The Magnificent Mile is a spectacular showcase of style, flavor, entertainment and fun. With more than 460 stores, 275 restaurants, 60 hotels and unique entertainments and attractions packed and stacked along its length, the Magnificent Mile has an indulgence for every passion and every pocketbook. www.themagnificentmile.com ▶ Millennium Park: Discover a state-of-the-art collection of architecture, landscape design and art that provide the backdrop for hundreds of free cultural programs including concerts, exhibitions,

tours, and family activities. In Millennium Park, you’ll find a new kind of town square – a lively, spectacular gathering spot located in the heart of the city and a destination for Chicagoans and visitors alike. The park features an ice skating rink in the winter months. www.cityofchicago.org ▶ Dine Around: Chicago is almost synonymous with great food. Travel to Little Italy, Chinatown, or explore the local restaurants downtown for a mouthwatering experience. Your taste buds will thank you. Check out some of the highly recommended restaurants here: www.choosechicago.com/things-to-do/dining/find-dining

December 2016 | Construction Equipment Distribution | www.cedmag.com | 57


Commercial Credit Group (CCG) offers customer-focused equipment financing, leasing and loans By Megan Mattingly-Arthur The construction equipment field isn’t a cookie-cutter industry, so when it comes to financing or leasing equipment, a cookie-cutter approach from a traditional lender just won’t do. Dan McDonough knew this when he started Commercial Credit Group (CCG) in 2004. The innovative financial company offers equipment financing and leasing services for the construction, transportation and waste industries, and has found success through careful planning and by providing top-notch customer service. “It was important to us to build a company the right way,” said CCG President and CEO Dan McDonough. “There was a lot of planning and capital. From day one, we’ve held every loan originated on our balance sheet, and that’s rather unique. We have a very successful cusMcDonough tomer-oriented business model and a high level of return customers because they know we’ll be there for them when they need us.” CCG isn’t the only financial institution offering funding for new equipment purchases. However, the company uses a full-service approach to stand out from the competition. In addition to funding the purchase of new equipment, CCG also refinances used equipment and handles leasing and working capital loans. “There’s a broad spectrum of credit that we can provide – from bank-quality loans to ones that need more work,” McDonough said. “We’re willing to take those extra steps and go the extra mile for our customers. When we’re in a dealership or working with a customer, show us good character and good equipment, and we’ll figure out how to do the rest.” As an independent company that concentrates solely on equipment financing, CCG is able to keep the focus on the customer. Dedicated sales and credit professionals that are familiar with each of the company’s verticals ensure that, when a customer sits down with a CCG financial specialist, they’re working with someone who truly understands their needs. “We have dedicated sales and credit professionals in each of our three verticals: construction equipment, transportation and waste,” McDonough said. “This approach makes it easier on the dealer and the customer by eliminating the need to educate the financial institution on the industry and equipment. It takes a lot of friction out of the credit process because we intuitively understand the 58 | www.cedmag.com | Construction Equipment Distribution | December 2016

industry.” CCG has more than 50 salespeople throughout the United States and Canada, and the company’s services aren’t Internet-based. Instead, employees get in their cars and drive to meet customers face-to-face, which is all part of the company’s dedication to providing a high level of service that keeps customers coming back again and again. Of all the financial services that CCG offers, which is the most popular? Well, according to McDonough, that depends largely on the state of the economy. “During good times, the financing and leasing of new equipment is the main driver for the company,” he said. “As the economy turns and fortunes change, the demand for debt consolidation and used equipment rises. The mix of business changes with the economy. We were very active in 2009, during the recession, when other lending companies were pulling back.” CCG works hard for the customers and industries it serves, and this hard work has not gone unnoticed. Its parent company, Commercial Credit Inc., was featured on the North Carolina Mid-Market Fast 40 list for five years in a row and is one of only

five companies to appear on the list for each of the past five years. Qualifying for the list is no small feat – featured companies must have an annual revenue between $10 million and $500 million, as well as demonstrating sustained revenue and employment growth over the course of the past three years. The company is more than succeeding; it’s positively thriving, and as for McDonough, he loves what he does. “I enjoy what I do,” he said. “Working with the construction equipment industry is a lot more fun than just lending money.” For more information, visit www.commercialcreditgroup.com.


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The Trump Presidency

The Opportunities and Challenges of the Next Four Years W

hat Donald Trump achieved on Election Day was both unexpected and historic. Despite unprecedented fragmentation and disunity in the Republican Party, Trump excited the base and turned out the vote. Not only did he get himself elected, but the excitement he generated drove Republican turnout across the country, helping to protect vulnerable seats and keeping the House and Senate in GOP hands.

In the wake of victory, most Republicans who abandoned Trump on the campaign trail seemed happy to fall back in line and bask in the victory. Democrats, who had bought into the conventional wisdom that they would win the presidency, the Senate, and perhaps even the House (always a long shot), were left with jaws agape and heads shaking.

The election results create enormous opportunity for the equipment industry. Seen at his best, Trump is a successful, entrepreneurially minded, free market capitalist with broad business experience and a track record of success in a range of projects. His election means that tax reform, infrastructure investment and the rollback of regulations imposed by an unaccountable bureaucracy are within closer reach. Trump has the opportunity to shatter the conventional wisdom about policymaking just as he did about electoral politics. But there is risk as well. Trump has no track record in elected politics, an unpredictable temperament and seemingly little knowledge about – or interest in – policy details. While that means he’ll likely defer heavily to his deputies, it also creates uncertainty about how he’ll conduct himself both on the domestic political front and on the world stage. That uncertainty could mean economic volatility. Another major risk is trade. Trump tapped into sentiment among voters in both parties opposed to globalization and pledged to pursue more protectionist policies which could hurt trade and undermine economic growth. If it wants to protect trade deals, the business 60 | www.cedmag.com | Construction Equipment Distribution | December 2016


community will have to do a much better job of explaining the long-term economic benefits to voters who launched Trump to power.

AED Well-Positioned to Be Effective in the New Political Environment

The 2015-2016 election cycle was historic for AED. The AED PAC shattered all previous records. AED members stepped up to the plate in a big way and contributed more than ever before. That support allowed AED to back a diverse group of candidates in districts around the country, more than 50 of whom received their AED PAC support personally from a dealer exec at an ImPACt 2016 meeting. Of the more than 70 congressional candidates we supported, only five lost their election bids, an impressive outcome in such a volatile political environment. Through the unpredictable two-year election cycle, AED steered a conservative path. Our PAC strategy was to back candidates with strong track records on infrastructure, tax, regulatory and workforce policy and emerging leaders on both sides of the aisle. As we look to the next Congress,

we’re confident that strategy will position us to be successful and effective in policy areas that matter most to our members. The Political Big Picture Although Republicans have slightly-reduced majorities on Capitol Hill, they’re still squarely in control. The GOP will control at least 51 Senate seats in the 115th Congress (down from 54 in the 114th) and may pick up one more depending on the outcome of the Louisiana runoff election on Dec. 10. In the House, the Republican majority was cut slightly from 246 seats to 238. That still gives Republicans a comfortable 20-seat cushion above the 218 votes needed to pass legislation. The only defensive line left to Democrats in the policy process is the Senate filibuster. The GOP will be at least eight votes shy of the 60 needed to shut off debate. Getting key elements of the Trump agenda through will require using arcane budget rules (i.e., reconciliation) to pass legislation with a simple majority or to convince/co-opt/persuade/ bludgeon enough Democrats to cross party lines and vote for popular policy positions. December 2016 | Construction Equipment Distribution | www.cedmag.com | 61


The Trump Presidency Due to the dynamics of the now-looming 2018 congressional elections, that’s not out of the question. In two years, Democrats will be defending 25 Senate seats (if you include the two independents who caucus with Democrats) and the Republicans only eight. Nine Democratic senators will face reelection in states that Trump won. Five of those Democrats are from the heavily Republican states of Indiana, Missouri, Montana, North Dakota, and West Virginia, all of which Trump won handily. Five others are from the major swing states of Florida, Ohio, Pennsylvania, Virginia, and Wisconsin, all but one of which went for Trump. Those vulnerable Democrats will come under enormous pressure from voters back home to work with Trump and the GOP majorities. But if they do, they may also find themselves subject to challenges from the farleft wing of the party, which will likely be invigorated in the wake of the 2016 elections. With that background on the political landscape, here’s our prognosis about what’s ahead in several of the issue areas that matter most for AED members:

Infrastructure

▶ Trump made infrastructure a big part of his platform and frequently drew the connection between federally funded construction and job creation. ▶ His transition website continues that theme: “The Trump Administration seeks to invest $550 billion to ensure we can export our goods and move our people faster and safer. We will harness technology and make smarter decisions on how we build and utilize our infrastructure. Our roads, bridges, airports, transit systems and ports will be the envy of the world and enhance the lives of all Americans. We will build the roads, highways, bridges, tunnels, airports, and railways of tomorrow.” ▶ Response from Democrats to the infrastructure initiative is generally positive. House Democratic Leader Nancy Pelosi (Calif.): “As President-elect Trump indicated … investing in infrastructure is an important priority of his. We can work together to quickly pass a robust infrastructure jobs bill.” ▶ Ironically, the most opposition to transportation investment may come from Trump’s fellow Republicans. Senate Majority Leader Mitch McConnell (R-Ky.) has said it is not a priority. The Heritage Foundation and other conservative groups have been outright critical. It will be incumbent on the business community to make the case that infrastructure construction isn’t stimulus; it’s about investing for the long term in the backbone of the economy. ▶ What form Trump’s infrastructure investment will take and how it will be funded is unclear. AED has long advocated for increased user fees to restore the Highway Trust Fund’s long-term solvency. While House Republicans have generally dismissed the idea of a gas tax 62 | www.cedmag.com | Construction Equipment Distribution | December 2016

increase, some senior House leaders have hinted they could support a vehicle-miles-traveled (VMT) tax. If that happens, it will likely be as a part of broader tax reform (see below). ▶ Shirley Ybarra, Trump’s transition chief for transportation policy, is known to be a proponent of public-private partnerships, which create revenue streams for private sector firms that front the costs for infrastructure improvements. It’s a good bet that bonding, tax credits and other tools to attract more private investment will form a big part of the Trump proposal. ▶ The leadership of the House Transportation and Infrastructure Committee will remain unchanged. Chairman Bill Shuster (R-Penn.) will return for a final two years as chairman, and Rep. Peter DeFazio (D-Ore.) will again be the Committee’s ranking Democrat. Because Shuster is term limited out of the position at the end of 2018, the race for the Committee’s next chairman will be part of the drama surrounding transportation policy over the next two years. ▶ Bigger changes are afoot at the Senate Environment and Public Works (EPW) Committee. EPW Chairman Jim Inhofe (R-Okla.) will be stepping down because he is term limited, and Ranking Member Barbara Boxer (D-Calif.) is retiring. Conservative Inhofe and liberal Boxer have been an unlikely “dynamic duo” when it comes to the highway bill and other infrastructure initiatives in recent years, and we’re certain to miss their bipartisan leadership. Sen. John Barrasso (R-Wyo.) is expected to take over the EPW gavel; however, who will ascend to become ranking member is less clear. Given that several of the senior Democrats on EPW are already ranking members on other prominent committees, Sen. Sheldon Whitehouse (D-R.I.) is the most likely candidate to be EPW’s next top Democrat.

Taxes

▶ Trump’s election and the maintenance of the status quo in Congress make tax reform in 2017 much more likely. A once-in-a-generation tax and budget deal in the first half of next year is a real possibility. ▶ From a personnel standpoint, nothing much changes on the tax policy front on Capitol Hill. Rep. Kevin Brady (R-Texas) is still Ways and Means chairman; Sen. Orrin Hatch (R-Utah) will still wield the Finance Committee gavel. While there was speculation that House Speaker Paul Ryan (R-Wis.), a major tax reform proponent, might be challenged for his leadership by party conservatives, for now at least it looks like Ryan’s job is secure. ▶ The starting point for the tax reform discussion is the GOP tax reform plan released last June. If you haven’t already, get to know it now because you’re going to be hearing a lot about it in the months ahead. ▶ There’s a lot to like in the House GOP plan. Among its key components:


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The Trump Presidency ▶ Creating a separate 25 percent tax rate for passthrough companies, lowering the U.S. corporate tax rate to 20 percent, shifting to a “territorial” system to tax U.S. companies operating internationally ▶ 100 percent expensing for business assets ▶ Repealing the death tax ▶ Eliminating the alternative minimum tax ▶ Consolidating the individual system to three tax brackets, lowering the top individual income tax rate to 33 percent, creating a larger standard deduction and a larger child and dependent tax credit ▶ Streamlining the maze of education tax benefits ▶ Cutting taxes on savings and investment by allowing families and individuals to deduct 50 percent of the dividends, capital gains and interest received from stocks and mutual funds However, there are red flags in the GOP plan as well. It would eliminate the business interest deduction, which would hit capital-intensive industries like ours hard. While the plan would not repeal LIFO, it’s silent on LKE. It and other tax expenditures would almost certainly be in the crosshairs to bring down the cost of lowering tax rates. The plan is also silent on new revenues for infrastructure, which AED has long said should be part of any comprehensive tax reform bill. ▶ With tax reform looming even larger, it’s imperative that AED members give us the data we need to advocate for the industry. If you haven’t already done so, please take a few minutes to respond to our tax survey.

Career Technical Education and Workforce

▶ Career technical education will be an issue in the next Congress as a matter of necessity. Rebuilding America’s infrastructure, as Trump says he wants to do, will require legions of skilled laborers to work directly on projects, operate and maintain machinery, and support all the industries (e.g., engineering and materials) that feed into construction. Additionally, revitalizing the middle class requires preparing workers for the types of jobs that exist in the 21st century U.S. economy. ▶ Trump said on the campaign trail that in his first 100 days he would pursue a School Choice and Education Opportunity Act that, among other things, “expands vocational and technical education, and make[s] 2- and 4-year college more affordable.” The Trump transition team website’s education page says the new administration “will advance policies to support learning-and-earning opportunities at the state and local levels – where the heart and soul of American education takes place,” but provides no more specifics. This suggests an important opportunity for the business community to provide input and guide policy in this area. ▶ It’s also a certainty that Congress and the Trump administration will seek to roll back recent workforce and labor changes imposed by the Obama administration. 64 | www.cedmag.com | Construction Equipment Distribution | December 2016

▶ Rep. Virginia Foxx (R-N.C.) is the leading candidate to be the next chairman of the House Education and Workforce Committee. With a doctorate in education and a stint as a community college president, she’s uniquely prepared to take on the skilled worker shortage. ▶ AED has cultivated a strong working relationship with Foxx and she’s acutely aware of the technician shortage in the equipment industry, having cited the results of the AED Foundation’s recent William & Mary study in a House floor speech on workforce issues. ▶ But what happens next year on career technical education depends partially on what happens this year. There’s still a chance that Congress could send President Obama a bipartisan Perkins Act reauthorization bill like the one recently passed by the House.

Regulatory

▶ Republicans have roundly criticized the Obama administration for its aggressive regulatory agenda. Gridlock on Capitol Hill has made it difficult for Congress to impose discipline and rein in the executive branch. The courts have generally given enormous deference and stayed out of policy decisions. ▶ Trump pledged to institute “a requirement that for every new federal regulation, two existing regulations must be eliminated.” He also said that on his first day in office he would impose a hiring freeze on all federal employees to reduce federal workforce through attrition (exempting military, public safety and public health). ▶ How the hiring freeze will play out is unclear. Broadly defined, most federal agencies (including ones like EPA and OSHA that are perennial targets for Republicans) serve a public health or safety function. It would be an odd result if Trump reduced agencies like the Federal Highway Administration, which will play a pivotal role in any new infrastructure program, while allowing OSHA and EPA to continue to grow. ▶ While we’re anxious at the opportunity to roll back some of the Obama administration’s worst regulations, wise industries will also be capitalizing on the opportunity to suggest improvements to regulatory regimes that are here to stay.

Energy

▶ The energy sector – and coal producers in particular – is among those with the most to gain from a Trump administration. ▶ Energy issues play a prominent part in Trump’s plan for his first day in office. He has pledged to “lift the restrictions on the production of $50 trillion dollars’ worth of job-producing American energy reserves, including shale, oil, natural gas and clean coal” and to “lift the Obama-Clinton roadblocks and allow vital energy infrastructure projects, like the Keystone Pipeline, to move forward.” ▶ President-elect Trump is also apparently looking for ways to accelerate the United States’ withdrawal from the


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The Trump Presidency Paris climate change treaty. ▶ He has named the Competitive Enterprise Institute’s Myron Ebell as the point person for environmental policy on the transition team. Ebell is a long-standing critic of the Obama administration’s clean power plan, which seeks to reduce carbon emissions from electricity generation and which would almost certainly lead to the shutdown of many coal-fired power plants.

Trade

▶ From an economic standpoint, perhaps the most troubling part of President-elect Trump’s first-100-day agenda is what it might mean for trade. Breaking with decades of Republican Party orthodoxy in support of free trade, he’s pledged to renegotiate or withdraw from NAFTA, withdraw from the Trans-Pacific Partnership and label China a currency manipulator, which could trigger a broader trade dispute. ▶ He’s also said he’ll “seek tariffs to discourage companies from laying off their workers in order to relocate to other countries and ship their products back to the U.S. tax-free.” Exactly how those tariffs would work is unclear, but they could make it harder for U.S. companies operating internationally to lower costs by shifting activities from country to country.

▶ Trump has called the Export-Import Bank, which has been used by dealers and manufacturers to export equipment, “feather bedding,” and said that it only benefits politicians and a few companies, and that it’s “really not free enterprise.” ▶ There’s little doubt that Trump and the business community will clash on trade issues. If the business community wants to protect recent policy victories on the trade front, it is imperative that companies and associations do a much better job of articulating how Americans have broadly benefited from free trade, and pursue more effective programs to help those who have lost jobs as a result gain new skills and better-paying positions. ▶ Other “protectionist” measures, such as Buy American policies, will likely be looked at more favorably by Trump’s team than by any Republican administration in recent memory. There’s no doubt that 2017 will be a busy year for our industry in Washington, D.C. The association looks forward to working with its members around the country to achieve policy victories on a range of issues that will help increase equipment demand and reduce dealer costs of doing business.

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>> PROBLEM SOLVED

TROY OTTMER

Big Data – Developing and Managing Key Metrics Without Getting Lost in the Process You can and will grow your business if you use data management and key metrics to monitor and manage toward the desired goal or outcome.

In the world of big data, how do we keep ourselves from going “data-crazy”? First of all, what is “big data”? What does this mean to us, and how do we use it? Which metrics are important to us? Well, let’s look at the definition of big data: “extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.” What does this really mean to you, as an equipment dealer? It simply means that your organization runs on data; that is, it’s one of many tools that your organization uses to measure and manage your business progress. Where does this data come from? It comes from every department within your organization, and it also comes from various outside sources. So how do you gather and dissect this information and put it into a useful format, one that does not overwhelm your ability to use it to grow your business? With any great process, there’s always the potential for issues or challenges, or what we call “roadblocks.” In this regard, big data management is no different than any other management tool. How do we process the data so that we do not create roadblocks, or worse, stall our growth? We must define what it is we are looking to accomplish. We need a goal or end result that we are trying to understand or improve. In order to set goals, we need to define the metrics we want monitor, study, or otherwise understand or change. In this sense, “metrics” are the items you want to potentially change or improve upon. The old saying, “If you cannot measure it, you cannot manage it,” certainly applies to any business operation. This is why we must understand what it is we are hoping to accomplish with the use of big data. There are many different ways to gather, sort or categorize information. Let’s say you want to grow your total sales revenue. First you must find out what your total sales revenue is for a given period. To do this you will pull all the sales revenue data from your business system, by department. You can sort from most sales to least. This will tell you who your top revenue customers are. For this example, knowing

who your top customers are is certainly important. However, what’s more important is which customers are at the bottom or are trending toward the bottom, or in the middle. Using the example mentioned above, you could set a metric goal of discovering how many customers are providing 80 percent of your business. Remem-

ber another old saying: “80 percent of your business comes from 20 percent of your customer base.” In this case, knowing how many of your customers fall into this 80 percent category is extremely important to understanding what share of the business you are getting. This will also tell you if you are relying too much on this small group of customers. Managing big data and metrics can become a complicated and overwhelming process, growing out of control and ultimately becoming a useless tool that falls to the wayside. The key to not going crazy with big data or metrics is to keep it simple! Start small, with simple metrics or key data points. Validate the data and refine the process as you develop the metrics, and keep the format simple, especially when presenting to senior leadership. Remember, if you have a hard time presenting or explaining, then they will likely have a hard time understanding what it is you are presenting. In the end, you can and will grow your business if you use data management and key metrics to monitor and manage toward the desired goal or outcome.

TROY OTTMER is vice president of Fixed Operations at Doggett Heavy Machinery Services LLC in Houston. Ottmer has worked in the equipment and automotive industry for 24 years. He can be reached at troy.ottmer@ doggettmachinery.com. 68 | www.cedmag.com | Construction Equipment Distribution | December 2016


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It's Time To Get

Off The Plateau

By Troy Harrison One topic that I rarely see addressed in sales literature is the one I’m taking on this month – how to get yourself off the dreaded sales plateau. You know what that looks like, right? Your salespeople are still doing the things they were doing, but suddenly the sales growth is gone. All of that effort is going into maintaining the status quo, or maybe you’re “growing” at 5 percent. This is the point where many managers will go off half-cocked and make big changes, and suddenly that “plateau’’ becomes a goal to get back to. Don’t be that guy! Instead, diagnose the problem correctly, make the right adjustments, and that plateau will be in the rearview mirror. First, there are three questions you should ask: 1. What’s your market share? If your market share is high – say, 70 percent or above – you have a legitimate reason for a plateau. In this case, double-digit growth might require radical changes, which we’ll discuss below. 2. Are your salespeople really doing the same things? Call reports and stats don’t tell the whole story. This is the basic equation of sales achievement: Quantity of Activity x Quality of Activity = Results. Even if your salespeople are averaging the same call quantities, you may need to dig deeper. Are they having the same quality of conversation that they used to have? Is their prospecting mix similar? Are they calling on the same quality of contacts? Any of these variables can hide a reason for a plateau, and they all involve deep digging and getting out into the field. 3. What’s changed outside your doors? The obvious suggestion here is to examine the competitive landscape or the overall economic condition in your market (have customers closed their doors, for instance?), but the biggest change I’m seeing right now is in customer expectations. The internet means that sales conversations that met customer expectations a few years ago fall short of expectations now. Maybe it’s time for you and your salespeople to raise your game. Only after examining the answers to the previous questions will you be ready to move forward with some potential solutions. ▶ Take on a new product or a new market. This applies mainly if the answer to #1 is that your market share is so high that it’s unreasonable to expect your salespeople to continue to drive double-digit growth. There’s obviously danger in this approach, particularly if you have a great market position, but the health of your company demands it. High market shares which lead to plateaus also lead to complacency. When you’re complacent, the quality of everything

you do begins to decline, just a little, until everyone is operating at half speed and you don’t know what to do about it. New products and new markets keep everyone challenged. Yes, everyone will squeal – particularly the salespeople – but it’s for their own good, and yours as well. ▶ Refocus your sales force. Maybe the answer to #2 is that the salespeople are not doing the things that got them to the level where they are now. It can happen. People can slack off in their prospecting, the quality of their customers, or the quality of their sales interactions. At this point it’s time to refocus the salespeople, using good management techniques to get them back on track and get your company growing again. You may also need to rework goals, activity metrics, and other key measurements in doing so. ▶ Retrain. This applies to questions #2 and #3. The hardest thing for salespeople, and sales managers, to wrap their heads around is this: Even if your salespeople are having the same quality of conversation they were ten years ago, it probably isn’t enough now. Your customers expect MORE. The key here is to retrain with someone who has kept up with current trends in the internet’s influence on sales dialogue and how to have the kind of conversation that customers demand now. Yes, I’m talking about myself, of course, but this is important. There are sales training “systems” out there that haven’t changed since about 1980 and will not be effective in today’s world. ▶ Talk to your customers. Sometimes it’s hard to see the forest for the trees – and sometimes it’s hard to see the real reasons why your customers buy and keep buying. Let me be blunt here. The best source of information about why new customers should buy from you is your current customers. I’m always amazed at companies that will throw huge dollars at ad campaigns and marketing programs designed to “reposition” them without taking a minute to ask their happiest customers why they buy and keep buying. The answers your customers give will help you freshen up your marketing approach without getting rid of the reasons why these current customers love you. ▶ Make staffing changes. Yep, this is the last resort but sometimes it has to happen. A couple of years ago, I helped a client get off a four-year plateau and grow 60 percent in one year. The biggest change made was that we released a sales manager who was in “coast and collect” mode and replaced him with a driver and strategic thinker. We changed sales processes and activity metrics, retrained the salespeople, and hired some new blood. In fact, come to think of it, we did everything mentioned above except finding new markets – because that wasn’t their problem. But what we did worked, and it can work for you too. I’m sure some of you are thinking, “But Troy, what’s so bad about a plateau? My company is making me good money, we’re not working that hard, and my risk is low. I like my plateau!” I can answer that this way: If you’re not growing, you’re shrinking. All it takes, in a plateaued company, is one or two major customer losses, and then not only are you trying to work back up, but your company has lost the habits that made it grow in the first place. Keep working and you’ll keep growing.

TROY HARRISON is the author of “Sell Like You Mean It!” and “The Pocket Sales Manager,” and is a speaker, consultant, and sales navigator. He helps companies build more profitable and productive sales forces with his cutting-edge sales training and methodologies. For information on booking speaking/training engagements, consulting, or to sign up for his weekly E-zine, call 913-645-3603, e-mail Troy@TroyHarrison.com, or visit www.TroyHarrison.com. 70 | www.cedmag.com | Construction Equipment Distribution | December 2016


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Business Planning:

Three Critical Questions

By Max Hernandez As a business leader, your job is to successfully move your organization forward and improve business performance. This requires a continuous process of reflection, analysis and planning during which you’ll have to answer the following questions about your dealership: 1. What is your dealership’s current condition? 2. Where would you like to take the dealership in the future? 3. How are you going to get there? These questions can be answered using two classic business frameworks known as SWOT and MOST. Together, these tools will help you drive a strategic conversation about your business and help answer these three important questions.

72 | www.cedmag.com | Construction Equipment Distribution | December 2016

1. What is your dealership’s current condition: SWOT (Strengths, Weaknesses, Opportunities, and Threats)? This question will prompt you to evaluate your current “as is” condition – for example, your current financial performance, the economic conditions, your capabilities and resources, your competitive positioning. As you start to analyze the “as is” condition of your business, try using a SWOT matrix (see Exhibit 1) to organize observations and drive discussions about your dealership’s strengths, weaknesses, opportunities and threats. Strengths and weaknesses of a company are internal to the dealership, whereas opportunities and threats are external (outside of your direct control). Strengths and opportunities are positive observations, whereas weaknesses and threats are


negative. Business success starts with a solid SWOT analysis, since it provides management with the insights they need to better focus their limited resources. Using a SWOT analysis, you can start your team on a path toward improved business performance before taking any action. As stated by Albert Szent-Gyorgyi (the discoverer of Vitamin C), “Discovery consists of seeing what everybody has seen and thinking what nobody has thought.” With SWOT you give yourself an opportunity to discover the most significant characteristics of your current situation before you take action and get distracted in too many directions. A Framework for the “Where?” and “How?”: MOST (Mission, Objectives, Strategies and Tactics) MOST is a powerful but simple framework for organizing your thoughts regarding Questions 2 and 3 above. MOST stands for Mission, Objectives, Strategies and Tactics. Using MOST forces your team to discuss your business from a conceptual, long-term perspective (mission and objectives), as well as from a more detailed and short-term perspective (the strategies and tactics that will help achieve your objectives). See Exhibit 2. MOST is not your full strategic plan, but you can view it as your strategic plan’s summary. 2. Where would you like to take your dealership? (Mission and Objectives) In the words of the famous psychologist Dan Gilbert, “To see is to experience the world as it is, to remember is to experience the worlds as it was, but to imagine … is to experience the world as it isn’t and has never been, but as it might be. The greatest achievement of the human brain is its ability to imagine …, and it is this ability that allows us to think about the future.” After assessing the current condition of your dealership, use the “greatest achievement” of the brain to think of the “to be,” or desired future state of your dealership. Why are you in business? Where would you like your dealership to be five years from now? Would you like your business to grow? At what rate, with which products? Will you target new customers? How will you track progress? The answer to these and other questions will help you shape your mission and define your objectives. A mission defines a business’s core purpose and core values. A mission expresses the reason for existence of your dealership, and it is timeless (doesn’t change from year to year). A mission can also help your team to feel connected to a higher purpose. Objectives support the mission and tell your team what you are trying to achieve in the next two to five years. Objectives tend to be wordy, so how do you track your progress? That’s where goals come into play. The term “goals” is used to represent how success will be measured for each objective. Goals are quantitative. Covey’s Four Disciplines of Execution offers a good rule for goals. Covey suggests that goals should be written in the following manner: “from x to y by z.” For example, if your objective is “to become the largest dealer in our market,” a goal for that objective might look like this: “Grow revenues from $40MM to $60MM by 2021.” 3. How are you going to get there? (Strategies and Tactics) Once you have agreed upon your objectives, you are ready to specify how you will reach them. In MOST, the S represents Strategy. A strategy is what you will do, the big ideas for accomplishing

your objectives. For example, if the objective is “to become the largest dealer in our market,” then one strategy for accomplishing that growth might be to “build market awareness.” Another strategy might be to “increase selling skills.” Tactics, a collection of actions, are those day-to-day activities that accomplish each strategy. Some tactics for “build market awareness” could be to conduct a mail campaign, place ads in key magazines, or launch a pay-per-click campaign on Google, Bing and Yahoo.

Ensuring Alignment and Completeness

As a final check, we suggest that when your plan’s summary is complete (that is, you’ve completed your MOST), ask yourselves an additional four questions. 1. Does our plan EXPLOIT our Strengths? 2. Does our plan IMPROVE on our Weaknesses? 3. Does our plan ELIMINATE our Threats? 4. Does our plan CAPITALIZE on our Opportunities? It is okay to answer “no” to some of the questions above – you can’t do everything. But make sure it’s clearly understood and agreed upon by the team. Sometimes you may answer “no” and then realize that your plan is incomplete and that more work needs to be done.

December 2016 | Construction Equipment Distribution | www.cedmag.com | 73


What do distributors need from the Equipment Triangle? By Richard K. Jefferson John Meese has spent more than forty years in the Equipment Triangle, and nine of those have been as senior director of heavy equipment for Waste Management Inc. For many years Meese worked for several AED members in the Caterpillar dealership network. He understands the unique challenges facing distributors. And since he has also been employed in manufacturing and as an end user, he knows all three parts of the triangle from the inside out. Meese knows that the 500+ AED member companies who distribute, rent and support heavy equipment are critical to the success of manufacturers and end users. And for critical issues, such as telematics, Meese advocates for representation from all three sides of the triangle. Meese is now also serving as the president and chairman of the board of the Association of Equipment Management Professionals (AEMP). End users, like AEMP members, need distributors to understand their equipment needs, but what do distributors need? Relevant information about their customers. Happy, repeat customers who share information again and again with their professional colleagues concerning the quality of their products and services. And some of the best information can be had at face-to-face educational events offered by AEMP. For instance, at an upcoming conference in Las Vegas in March 2017, AEMP will provide a forum for equipment managers and those 74 | www.cedmag.com | Construction Equipment Distribution | December 2016

who support them to get actionable information about developments in the equipment triangle, and to learn how technology is affecting key relationships. But the deep value of these events is the candor of the face-to-face conversations. “The true beauty of these meetings for distributors is that the end user is not your direct customer, and therefore you really have a more frank and rich conversation because you’re both learning about each other’s business needs without having to worry about a business relationship,” Meese said. “Distributors tell me they get news they can use immediately from our conferences. That could be about new technology or emerging expectations of equipment managers when partnering with a distributor. Soon I expect we’ll be hearing from end users about the changes breaking on us now about right to repair and insurance for heavy equipment fleets,” Meese continued, “and both will have a profound impact on the Triangle relationship.” AEMP earned its industry reputation by leading the way to a mixed-fleet telematics standard, which received approval this year from the International Organization for Standardization (ISO) for acceptance as a global standard. “Telematics drove home the point that the three sides of the equipment triangle had to work together to support each other and find solutions to challenges facing the industry. Interestingly, telematics is also driving that point further with the impact it is having on maintenance, finance, repair and replace, right to repair, metrics, and more,” Meese said. The next opportunity to hear about progress in the equipment triangle is at the AEMP 35th Management Conference & Annual Meeting, March 4–6, 2017, in Las Vegas.


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>> PROFESSIONAL DEVELOPMENT

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2017 AED Summit January 10-13, 2017 Hyatt Regency Chicago, 151 East Wacker Drive, Chicago Parts Manager Development Seminar- Level 1 March 21-22, 2017 Hyatt Place Atlanta Airport North, 3415 Norman Berry Drive, East Point, GA Service Manager Development Seminar- Level 1 March 23-24, 2017 Hyatt Place Atlanta Airport North, 3415 Norman Berry Drive, East Point, GA 2017 Washington Fly-In April 4-6, 2017 2017 Financial /HR Symposium April 26-28, 2017 Hyatt Regency Miami, 400 S.E. Second Ave., Miami, FL

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Basic Rental Management Seminar May 18-19, 2017 Embassy Suites by Hilton Baltimore at BWI Airport, 1300 Concourse Drive, Linthicum Heights, MD Equipment Business War Games (Test Drive) June 4-6, 2017 Hilton Rosemont/Chicago O’Hare, 5550 N River Road, Rosemont, IL 2017 Leadership Conference August 20-22, 2017 Fairmont Sonoma Mission Inn & Spa, Sonoma, CA Parts Manager Development Seminar- Level 2 September 26-27, 2017 Hyatt Regency St. Louis at The Arch, 315 Chestnut St, St. Louis, MO Service Manager Development Seminar- Level 2 September 28-29, 2017 Hyatt Regency St. Louis at The Arch, 315 Chestnut St, St. Louis, MO Advanced Rental Management Seminar October 12-13, 2017 Hyatt Regency Cleveland at The Arcade, 420 Superior Ave, Cleveland, OH Branch Manager Seminar November 9-10, 2017 Hilton Phoenix / Mesa, 1011 W Holmes Ave, Mesa, AZ 2018 Summit January 15-19, 2018 Las Vegas

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advertisers’ index AMAM...............................................................5 AMI Attachments Inc......................................73 AmTrust Speciality Equipment........................71 Arctic Snow & Ice Control, Inc.........................33 Baseplan North America..................................65 Breaker Technology, Inc. (BTI)...........................9 Briggs & Stratton Corporation.........................59 CDK Global......................................... Back cover Connect Work Tools........................................77 Diamond Mowers............................................39 Doosan Infracore America...............................63 eBS Mechdata, Inc...........................................25 e-Emphasys Technologies Inc............................1 Equip IQ by CD Group, Inc..............................32 Fairview Insurance Agency Association Inc......66 HKX, Inc..........................................................67

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December 2016 | Construction Equipment Distribution | www.cedmag.com | 79


>> RISK MANAGEMENT

ERIC STILES

Protect Your Dealership's Data From Hackers Demanding Ransom The threat to your data is real, but there’s good news – you can protect your dealership and your customers’ valuable information.

Q: What is “data extortion” and how can it affect my dealership? A: Consider the following scenario: An equipment dealership offers a machinery maintenance tracking program to customers, allowing them to directly manage and schedule service. Suddenly, customers can’t access their accounts. The dealership discovers that a ransomware attack has encrypted the data and a hacker is holding the data hostage, demanding a ransom to release the files. A data extortion event like this can paralyze your operations and send customers running for the door. Fortunately, there are actionable steps you can take to lower your risk. Front-end data security can make it harder for a hacker to gain access to your files, and security and data backup enhancements can limit the damages. In addition, data extortion insurance can provide extra peace of mind. The threat to your data is real, but there’s good news – you can protect your dealership and your customers’ valuable information. Take a look at the following suggestions to see where your dealership can make data security improvements. ▶ Identify sensitive data: Look for Social Security and driver’s license numbers, as well as any health and financial information. ▶ Note where it’s located: Identify whether the sensitive data is electronic or on paper, how it’s used, and whether you need it for business. If you don’t, delete it. ▶ Back up data: Ensure any data critical to your dealership’s existence is secured and copied to a separate storage site. ▶ Ask an expert: Have a software/hardware security expert check your system for strong encryption and authorization protocols. ▶ Immunize your system: Make sure your antivirus software is current and effective. ▶ Educate employees: Train workers to recognize and delete phishing emails. ▶ Beef up passwords: Require strong user passwords and regular resets to toughen security. ▶ Avoid future problems: If you encounter an extortion demand, scan your database to make

sure other malware hasn’t been attached that could lead to future attacks. You can take action to protect your data and safeguard against data extortion. Evaluating and fortifying your data now can prevent damaging hacks, keep your dealership running smoothly, and preserve your customer reputation. As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs. Eric Stiles is Sentry’s lead account executive responsible for maintaining the AED/Sentry relationship. This is a paid endorsement. This document is made available by Sentry Insurance, a Mutual Company, and its subsidiaries and affiliates (collectively “SIAMCO”) with the understanding that SIAMCO is not engaged in the practice of law, nor is it rendering legal advice. The information contained in this document is of a general nature and is not intended to address the circumstances of any particular individual or entity, nor the best practices applicable to any particular individual or entity. Legal obligations may vary by state and locality, and best practices are unique to specific items and situations. No one should act on the information contained in this document without advice from a local professional with relevant expertise. Property and casualty coverages and safety services are underwritten and provided by a member of the Sentry Insurance Group, 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. This document is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on the information contained in this document without advice from a local professional with relevant expertise.

As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs. ERIC STILES is Sentry’s lead Account Executive responsible for maintaining the AED/Sentry relationship. 80 | www.cedmag.com | Construction Equipment Distribution | December 2016


10

1

3

SECONDS

HOUR

DAYS

A mile-wide EF4 tornado leveled Grossenburg Implement.

A Sentry Insurance associate submits the claim for processing.

Dealership sales and service operations resumed.

A dealership’s survival after a tornado can be determined by the actions it takes well before the storm hits. Grossenburg Implement suffered $19 million in damages from a tornado that lasted seconds. Sentry Insurance helped them get back in business in 3 days. In less than 12 months, they celebrated a grand re-opening of an all-new facility, well before some neighbors began rebuilding. Sentry offers proactive risk management solutions to help prevent losses, and post-event assistance to help your dealership recover quickly. We’re more than insurance. Call 1-800-447-0633, option 1, to find out how you can get started with Sentry.

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. 73-659A

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sentry.com

11/9/2016 12:58:22 PM


The DMS that’s ready for anything. Looking for a way to grow your business? This one’s pretty sharp. The new,, fully integrated CDK IntelliDealer™ 3.0 Dealer Management System builds on our 35 years of industry knowledge and gives you full visibility to all your data across all your locations and functions. • Telephony, CRM, OEM interfaces, in addition to your Parts, Service and Accounting are all completely integrated • Ability to customize • Support and endorsements from major OEMs • Supported applications available for mobile devices IntelliDealer is Powering the fastest growing dealers across North America. Experience what 1,700+ dealerships and 40,000+ users do every day. Call 519.474.5212 or visit cdkglobal.com/heavyequipment.

IntelliDealer™ 3.0 DMS

© 2016 CDK Global, LLC / CDK Global is a trademark of CDK Global, LLC.

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8/17/2016 9:21:19 AM

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