March 2016: One of America's Most Influential Vice President's by Associated Equipment Distributors

March 2016

CED

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

Dick Cheney Americaâ&#x20AC;&#x2122;s most influential vice president to speak at AEDâ&#x20AC;&#x2122;s 2017 Summit & CONDEX n Conservative Business Sense

Charlie Walsh discusses his family business

n A Closer Look

The importance of business simulations

n Four Generations

Ransome CAT celebrates its 100th anniversary

Are You Prepared for the Unexpected?

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contents CED Magazine | March 2016

vol. 82 no. 3

www.cedmag.com

>> FEATURES

A Conservative Business Sense at Walsh Equipment Charlie Walsh discusses growing up in a family business celebrating its 84th year.

Skilled Worker Shortage New report from The AED Foundation shows skilled worker shortage costs equipment industry billions each year.

A Closer Look at PriSim Improve your business performance through business simulations.

Ransome CAT at 100 Years President Kristin Bromley Fitzgerald brings her great-grandfatherâ&#x20AC;&#x2122;s company into its 100th year with vision and dedication.

Special Section Complete Coverage of 2016 Summit & CONDEX

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

contents

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

>> FEATURED COLUMNISTS Eric Stiles

Account Executive at Sentry Insurance

CED Magazine | March 2016

vol. 82 no. 3

>>COLUMNS

16 >> Regional Report

Ben Yates

Eastern Regional Manager Ben Yates reports from New Jersey.

Dayna Maeder

Consider starting your own Political Action Committee.

AED Vice President of Government Affairs

Professional development opportunities set your dealer team apart.

Steve Chacon

Understanding Bonus Depreciation, Section 179 Expensing and the PATH Act

News on equipment lifespans and more.

Ritchie Bros. offers five tips to protect you when buying used heavy equipment and trucks.

Eastern Regional Manager Freelance Writer

Christian Klein

Director of Exchange Operations, Accruit

Matt Franzel

Product Manager for Hydraulic Attachments, Atlas Copco Construction Equipment

Phil Riggs

Western Regional Manager

24 >> Washington Insider

25 >> Dealer Development 30 >> Accruit

34 >> EquipmentWatch Intelligence 50 >> Industry Insight

Rex A. Collins

Principal at HBK CPAs

>> ADVERTISING CONTACTS Vice President of Sales JON CRUTHERS 800-388-0650 ext. 334 jcruthers@aednet.org Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 311 aramirez@aednet.org Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org Since 1920 Official Publication of

BRIAN P. MCGUIRE AED President & CEO

ROBERT K. HENDERSON AED Executive Vice President & COO

>> OFFICERS WHIT PERRYMAN Chairman Vermeer Texas-Louisiana WES STOWERS Vice Chairman Stowers Machinery Corp. DIANE BENCK Senior Vice President West Side Tractor Sales Co. TODD HYSTAD Vice President Vimar Equipment Ltd.

MICHAEL D. BRENNAN Vice President Bramco, LLC JOHN C. KIMBALL VP of Finance Kimball Equipment Company DON SHILLING Immediate Past Chairman General Equipment & Supplies, Inc. DENNIS VANDER MOLEN Foundation President Vermeer MidSouth, Inc.

>> AT-LARGE DIRECTORS

>> REGIONAL DIRECTORS

TODD BACHMAN Florida Coast Equipment, 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.

JAMES P. COWIN Cowin Equipment Co., Inc. GAYLE HUMPHRIES JCB of Georgia LARRY R. MILLER Kelbe Bros. Equipment Co. Inc. JOHN SHEARER 4 Rivers Equipment, LLC

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

JASON K. BLAKE AED Senior Vice President & CFO

KENNETH E. TAYLOR Ohio CAT

Event Spotlight Make Your Voice Heard On Capitol Hill

Don’t miss out on your best opportunity to make a difference and voice your concerns for the industry. The Washington Fly-In is one of the top advocacy and public policy construction equipment events where you’ll gain valuable intelligence to put you ahead of the pack and help you plan for 2016 and beyond. Mark your calendars Washington Fly-In June 7-9 Willard Intercontinental Washington D.C. Register Now: bit.ly/2016flyin (link is case sensitive)

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

Mention us on Twitter @AEDSocial Like us on Facebook @ Facebook.com/ AEDSocial 5 | www.cedmag.com | Construction Equipment Distribution | March 2016

Current events and news for the equipment distribution industry 8 » AED Insider

9 » Industry News 20 » Product Preview 22 » Data Trends

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>> PRESIDENT’S PAGE

BRIAN P. McGUIRE

Summit 2016 A Huge Success

The planning for next year’s Summit & CONDEX in Chicago is already well under way. The numbers have been counted, the evaluation forms have been reviewed and I am happy to report that the 2016 AED Summit & CONDEX was a success. This year over 1500 registrants, with over 500 of those registrants being connected to dealer operations, gathered just outside Washington, D.C., at the Gaylord National for three days of great keynote speakers, exceptional breakout sessions and North America’s premier trade show for construction equipment dealers. It was hard to attend and not walk away with a new or strengthened relationship and useful information to help in the running of your dealership from the breakout sessions and keynote speakers. Not even the threat of the Washington D.C. blizzard could put a damper on the attendance for our Thursday night dinner and conversation AED President and CEO Brian P. McGuire, left, and President George W. Bush with special guest former President George W. take the stage during one of many highlights of AED Summit & CONDEX 2016. Bush. Just under 800 attendees filled the ballroom to the brink to listen to the 43rd President to learn more about the products and services they represent. A simiof the United States answer questions and share his thoughts lar message was heard from our manufactures and service providers on everything from the current election and threats facing the who hosted attendees in suites during the Summit. They too reported world today to what it is like to go from running the free world a very worthwhile show. to private citizen in on day. Without a doubt, I think it is safe to Now is the time to make your plans say that everyone who attended was impressed with the former to attend the 2017 Summit in Chicago President’s comfort and candor. January #-#. In 2017, the Summit comes While it is always hard to share the marquee with a former Complete Summit & home to Chicago where the Summit and President of the United States, we heard from this year’s attendees CONDEX coverage CONDEX began. We will gather at the that former Navy SEAL Kevin Lacz hit the mark with his presenbegins on Page 40 Hyatt Regency in downtown Chicago, tation. Mr. Lacz shared how the training he received in becoming and as you can see by the cover staff is a SEAL not only served in his deployments but were applicable already hard at work in giving attendees to the challenges we all face in running a business and life in an even better experience than this year. We are pleased to announce general. He certainly touched the audience as he spoke about his that Former Vice President Dick Cheney will be our Thursday night friend, sniper Chris Kyle, whose story was the basis for the box office keynote guest. smash “American Sniper.” Dick Cheney served eight years as President George W. Bush’s Vice Attendees on Thursday morning heard from President of Adidas President, and he has been called the most influential Vice President Group North America and Chairman of TaylorMade Golf Company, in United States history. Prior to his service as Vice President, he Mark King. Mr. King made a hole-in-one with the group as he shared served as Secretary of Defense during the Persian Gulf War and how he and his team transformed not only a company but the way served as Chairman of Halliburton. You won’t want to miss what golf equipment is marketed. He spoke about not only the successes promises to be a great evening. but shared many humorous stories about mistakes made along the The 2017 Summit will also play host to a black tie optional ball way and the lessons we could all learn from those mistakes. and auction to celebrate the AED Education Foundation’s 25th Many participants in the CONDEX reported strong floor traffic, Anniversary. Watch your email and future editions of this publiwhich led to great conversations and even a few deals were reported cation for more information on what promises to be a wonderful from the floor. Show attendees let us know that they appreciated the wide arrange of vendors who participated in the show and the chance event for an amazing cause. BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at bmcguire@aednet.org. 7 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> AED INSIDER

Report: ‘Skills Gap’ Still A Problem In Technical Careers More must be done to promote existing jobs.

Roy Kern owns an equipment-distribution company in western Pennsylvania, and he sees the problem all the time. Because not enough students are going into trade schools, Kern said, “We have a shortage of people with the needed skills, and we have a real need. It makes The U.S. heavy equipment distribution it difficult to service your customers and industry loses at least $2.4 billion each difficult to expand.” year as a result of dealers’ inability to find It is a problem addressed in a new report and retain technically skilled workers. The on the so-called “skills gap,” produced figure, based on an by The College of William and estimated nine percent Mary on behalf of companies who of earnings foregone by distribute equipment for construcAmerican dealerships THE EQUIPMENT INDUSTRY tion, agricultural, industrial and represented by AED, TECHNICIAN SHORTAGE: CAUSES, IMPACTS, AND POLICY related industries. RECOMMENDATIONS was included in a report “Highly technically skilled workreleased on Jan. 20 by ers are in short supply in the wider The AED Foundation manufacturing sector,” according (AEDF). The foundation, to the report, commissioned by established in 1991 Associated Equipment Distributors. and directed by AED “Equipment distributors across the members, focuses on nation report a high difficulty in professional education finding qualified candidates to fill ▶ Full Report: and workforce developopen technician positions,” and a bit.ly/1JPuVci ment issues specific to lack of candidates with the needed the equipment distritechnical skills is the reason, a ▶ One-Page bution industry. AEDF report overview stated. Summary: commissioned a team of The full report details the ongobit.ly/1n6YIDt public policy researchers ing effect of this “skills gap” on the from the College of construction and manufacturing William and Mary to industries. analyze the industry’s technician shortage Companies responding to the report based on a summer 2015 survey of AED’s cited “a lack of focus on technical educamembers in North America. tion in the nation’s high schools,” which “This report provides a window into the business owner Kern said is a shame. current state of our industry’s workforce,” “It’s a good career, versus majoring in AED President & CEO Brian P. McGuire history in college and then coming out and said. “Distributors have known for far too not finding a job,” Kern said, noting that long that finding the right people is tough salaries for entry-level jobs can start in the and it’s getting tougher. A report like this $30,000 to $40,000 range. The trades need tells policymakers this isn’t just an anecdotal to be promoted more heavily, Kern said. or local problem, it’s a national crisis.” “There has to be more done nationally According to the report, the equipment to just promote the fact that there are good distribution industry is suffering badly jobs out there in these areas,” Kern said. from the mismatch between the capabilities “There are a lot of folks out there looking needed to fill technical roles and the skill for skills that really aren’t promoted.” The possessed by prospective employees. This report overview said national workforce “skills gap” has been the focus of much policies need to be adjusted to emphasize analysis across the broader economy and bringing more “individuals entering the observed by AED members struggling to labor market broadly and those seeking replace retiring workers and grow their technical careers specifically.”

The AED Foundation Report: Skilled Worker Shortage Costing Equipment Industry Billions Yearly

By Danny Berg, Josh Klein, and Will Nisbet

Assessing the skills gap, its causes, and possible solutions

There is a skills gap that has profound impacts on businesses, with a variety of

factors contributing to its existence. Combating the skills gap involves improving visibility in high schools, developing partnerships amongst stakeholders, and improving workforce development programs.

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

companies while overcoming biases against technical careers and trade schools. The report found that a lack of “hard skills” is the most significant challenge dealers face in their struggle to hire for technical positions. Equipment distributors also have a job opening rate three times the national average and vacancies remain open for extended periods. Time, resources and economic opportunities are squandered as positions go unfilled because the right candidates are not available. Without training and resources to develop practical competencies, American students are simply unprepared to maintain the machines that build and maintain the nation’s infrastructure. The anticipated increase in building activity associated with the new five-year highway authorization law recently passed by Congress is expected to exacerbate the problem. “In the equipment distribution industry, the skills gap is real and it adversely affects businesses,” the report said. “These effects appear in the form of decreased expansion potential, lost revenue and lost wages, among other detriments.” The report provides a series of recommendations including improvements to federal workforce policy and steps to strengthen community-based relationships for recruiting and developing talent. “The problem is daunting, but there are solutions,” McGuire said. “Congress will consider a host of workforce and education-related policy issues this year, including Perkins Act reauthorization. We hope this snapshot of how the nation’s skills gap affects just one industry will serve as a wakeup call on Capitol Hill and help lawmakers understand that the future health of the U.S. economy depends on tackling the skills gap head on.” In the weeks and months ahead, AED will be mounting an aggressive campaign to get the report into the hands of policymakers

>> INDUSTRY NEWS

Wehrman To Retire From American Rental Association

Bobcat Of St. Louis Expands Equipment Line With Atlas Copco Bobcat of St. Louis has expanded its equipment line with Dynapac soil and asphalt rollers. This gives customers access to a broader range of Atlas Copco equipment in the dealer’s six Midwest locations. “We’re excited that Bobcat of St. Louis has added to its line of Atlas Copco equipment,” said Rich Forrest, Atlas Copco’s Midwest road construction equipment regional sales manager. “We look forward to helping them serve customers and fill a need in their market with our soil and asphalt rollers.” Bobcat of St. Louis rents, sells and services a variety of Atlas Copco equipment throughout Eastern Missouri, Southern Illinois and Southern Indiana. It will carry a range of 8-ton to 23-ton Dynapac soil rollers and a range of 2-ton to 9-ton tandem asphalt rollers. It also carries Atlas Copco’s CP1200 pneumatic tired roller, light towers and trench compactors. The company purchased its first Atlas Copco equipment in 2013 as part of its rental fleet. Impressed, the team asked to join Atlas Copco as a dealer.

“We pride ourselves in operating a family-owned business for the last 25 years,” said Dave Timpone, web and marketing manager of Bobcat of St. Louis. “Adding Atlas Copco equipment continues with that legacy by meeting customers’ rental and purchase needs as well as helping our bottom line.” Bobcat of St. Louis consists of eight branches across five states that offer a variety of compact and heavy equipment and attachments as well as erosion control and hydroseeding equipment. The dealer serves a variety of industries and applications involved in agriculture, construction, government, grounds maintenance,

9 | www.cedmag.com | Construction Equipment Distribution | March 2016

industrial markets, landscaping, mining, rental and utility. The dealer branch locations include Columbia, Missouri; O’Fallon, Missouri; Valley Park, Missouri; Fairview Heights, Illinois; Marion, Illinois; Evansville, Indiana; Bowling Green, Kentucky; and Nashville, Tennessee. Atlas Copco soil and asphalt rollers include innovative features, with fuel-efficient Tier 4 Final engines, quick serviceability, built-in safety functions and ergonomic operator stations. These features benefit operators by enhancing comfort and visibility and maximizing productivity.

Christine Wehrman, CEO and executive vice president of the American Rental Association (ARA), Moline, IL, has announced her retirement from ARA to the ARA board of directors after 15 years of service to the organization. Wehrman will continue in the position until her successor is named later in the year. Terry Turner, CERP, owner, All Occasions Party Rentals, Knoxville, TN, and ARA President, extended thanks to Wehrman on behalf of the ARA board of directors for her dedicated service to the membership. “Chris has effectively led our association to excellence. The board is very proud of the vast achievements provided to members and the industry during her service. Chris led ARA through the years of business consolidation, the 9/11 attacks, the devastation of Hurricane Katrina and the economic recession along with many critical industry and association issues,” Turner said. “Her astute association management and leadership skill, along with her ability to work so well with volunteer leaders and staff members, have really made a difference for members and the industry. As a result, ARA is well positioned for the future,” Turner said. “We appreciate all that Chris has accomplished as CEO. The accomplishments are many,” he said.

March 2016 | Construction Equipment Distribution | www.cedmag.com | 9

>> INDUSTRY NEWS

10,000+ Items: Ritchie Bros. Auction Offers Largest Selection in Florida It’s not often you see 10,000+ equipment items and trucks for sale in one place. Yellow, green, red and chrome as far as the eye can see—and it was all available to the highest bidders at Ritchie Bros.’ 200-acre Orlando auction site in February. The site was packed with equipment and trucks from every major brand, including Caterpillar, Volvo, John Deere, Komatsu, Terex, Grove, JLG, Kenworth, Peterbilt, Freightliner and International. To see a new drone video of the equipment selection, visit rbauction. com/Orlando. “Ritchie Bros. offers buyers the best selection of used equipment and trucks in the world,” said Terry Dolan, President (USA & Latin America), Ritchie Bros. “You’ll find all the top brands at our Orlando auction, including hundreds of unused and late model, low hour

items. And it was all available to view and inspect before you buy.” Equipment highlights included: 425+ excavators 395+ compactors 215+ loaders 150 dozers 75+ articulated dump trucks 55+ motor graders 30 rock trucks 115+ cranes 570+ boom and scissor lifts 105 telescopic handlers 450+ truck tractors 390+ trailers 115+ mechanics trucks 2,125+ attachments, and much more Low-cost warranties are available to purchase on select equipment and trucks that have been pre-approved through an independent inspection. Visit rbauction.com for the most up-to-date information.

Vermeer Texas-Louisiana Acquires Distribution for Bobcat in Corpus Christi, Rio Grande Valley Vermeer Texas - Louisiana, a market leader in underground and environmental equipment with 12 locations across Texas and south Louisiana has acquired distribution rights to the Bobcat product line in their Corpus Christi and Alamo locations. Bobcat has been the worldwide leading producer of compact equipment and attachments since 1958. The Bobcat product line includes skid-steer loaders, compact track loaders, mini-excavators, utility vehicles and a wide variety of attachments. Bobcat of Corpus Christi and Bobcat of the Rio Grande Valley will operate out of the Vermeer facilities located at 4802 Baldwin Corpus Christi, Texas and 222 E Frontage Alamo, Texas respectively. Bobcat customers can expect best in class support from the knowledgeable team of employee-owners at both locations. Vermeer Texas-Louisiana CEO Whit Perryman had this to say about the acquisition, “We are excited to add Bobcat to our equipment line-up in these two markets. The products are a good fit with the Vermeer product line, and we look forward to the opportunity to earn the Bobcat business in Corpus Christi and the Rio Grande Valley.” For more information about Bobcat of Corpus Christi or Bobcat of the Rio Grande Valley please contact Kelli Meyer at kmeyer@vermeertexas.com or 972-255-3500 or visit www.bobcatcc.com.

Rockford Construction Names Tom McGovern Chief Operating Officer Shane Napper named president of construction. Rockford Construction announced today that Tom McGovern has been named chief operating officer (COO) and Shane Napper, former executive vice president, will succeed McGovern as president of construction. “As we continue to grow in size and sophistication, our leadership team must grow as well,” said Mike VanGessel, Rockford’s CEO. In his new role as COO, McGovern will be responsible for the implementation of overall corporate strategy and the integration of Rockford’s groups—development, construction and property management—with core company resources—human resources, information technology and operations. VanGessel said McGovern’s efforts will ensure Rockford remains efficient,

From left: Tom McGovern, Shane Napper

adaptable, highly innovative and responsive to clients’ needs. Napper, as president of construction, will lead Rockford’s sales efforts, expand client relationships and ensure high-performing, cost-effective construction for clients, according to VanGessel.

10 | www.cedmag.com | Construction Equipment Distribution | March 2016

“Shane is the right person to fill this role and lead our company into the future. He is a builder at heart, and his reputation for accuracy, reliability and integrity in our community is strong. He will lead our team to strive for excellence in all that we do.”

>> INDUSTRY NEWS TRIP Releases New York Road Travel Report

LiuGong to Showcase Upgraded Full Product Line at bauma 2016 LiuGong, a global leader in manufacturing a full line of extreme duty equipment, is set to showcase its updated full product line at bauma 2016, where it will display 15 machines in the newest configurations. LiuGong has been an exhibitor at the bauma show in Germany for the past four shows. This year, the company will share a 2,588 m2 booth with Dressta at No. 417, North Entrance, the same location as in 2013. Notably, the full E-series line of seven new excavators, which range from 15 to 50 tons, will be featured at this upcoming bauma for the very first time. LiuGong will present visitors with its range of wheel loaders, motor graders, rollers and skid steer loaders. “With the advancements in our technology, LiuGong is going beyond earthmoving,” said David Beatenbough, Vice President of Guangxi LiuGong Machinery Co. Ltd. “In addition to wheel loaders and excavators, LiuGong produces motor graders, rigid dump trucks, rollers, pavers, millers, truck-mounted cranes and more. We are one of the world’s few construction equipment manufacturers that offer a full line of best-in-class machines and total solutions, all backed by global support.” The full range of Tier IV E-series excavators, which will be on display at bauma later this year, includes the 915EIV, 925EIV, 933EIV, 939EIV—which are fully compliant with European emissions regulations—as well as the 9035EIIIA, 922EIIIB and 950EIIIA, demonstrating LiuGong’s continuous development in this field as well as its commitment to the European market. “The E-series uses a newer and more technologically advanced hydraulic system, giving us great benefits in productivity and efficiency,” noted Beatenbough.

A new report that evaluates the current condition, use and funding of New York’s surface transportation system was released at news conferences in Albany, Buffalo and Rochester on Thursday, January 21. The report, “New York’s Top Transportation Issues: Meeting the State’s Need for Safe, Smooth and Efficient Mobility,” examines road and bridge conditions, congestion, economic development, highway safety and transportation funding in New York. In addition to statewide

information, the report contains regional data for the Albany, Binghamton, Buffalo, New York City metro, Poughkeepsie-Newburgh, Rochester, Syracuse and Utica urban areas, including pavement conditions, bridge conditions, congestion levels and traffic fatalities. Media advisories, the report and releases are posted on the TRIP website. Infographics are also available for the eight urban areas. For more information please visit: http://www.tripnet.org/ NY_Infographics_Jan_2016.php.

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>> INDUSTRY NEWS Brian Krzanich, Intel CEO, Elected to Deere Board of Directors Deere & Company (NYSE: DE) has announced the election of Brian M. Krzanich, chief executive officer of Intel Corporation, to the company’s Board of Directors. “Brian’s depth of leadership experience in technology, manufacturing and supply chain management is a valuable addition to the Deere & Company Board of Directors,” said Samuel R. Allen, Deere’s chairman and chief executive officer. “We look forward to Brian joining the Deere Board.” In May 2013, Krzanich was appointed chief executive officer of Intel Corporation and elected a member of the Intel Board of Directors. He had previously served Intel

as chief operating officer after progressing through a series of technical and leadership roles at Intel. As COO, Krzanich led an organization of more than 50,000 employees spanning Intel operations in technology, manufacturing, foundry, supply Brian Krzanich chain, human resources and information technology as well as being responsible for Intel’s China strategy. Prior to becoming COO, Krzanich

held senior leadership positions in Intel’s manufacturing organization. Krzanich began his career at Intel in 1982 as a process engineer. He holds a bachelor’s degree in chemistry from San Jose State University and has one patent for semiconductor processing. Deere & Company (www.JohnDeere. com) is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land—those who cultivate, harvest, transform, enrich and build upon the land to meet the world’s dramatically increasing need for food, fuel, shelter and infrastructure.

Global Construction Equipment: Rental Market Report 2015-2019

Doosan Portable Power Adds Tyler Equipment Corporation as Authorized Dealer Doosan Portable Power has named Tyler Equipment Corporation as an authorized dealer for Doosan Portable Power air compressors, generators, light towers and light compaction equipment. The company will distribute Doosan Portable Power products to customers throughout Connecticut and Rhode Island from their branch in Berlin, Connecticut. A family-owned company, Tyler Equipment has been fulfilling the needs of the construction industry since 1922. “Tyler Equipment believes in service to the customer first and

fostering long-term relationships, which are values shared by Doosan Portable Power,” said Zeke Hendrix, regional sales manager – eastern U.S., Doosan Portable Power. “We are excited to have a dealer with such a strong history and solid reputation in our network.” Tyler Equipment will distribute Doosan Portable Power equipment to several markets. “Doosan Portable Power has a long history of being No. 1 in the industry, so this is a perfect opportunity for Tyler Equipment,” said Larry Drapeau, Tyler’s director of operations.

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Research and Markets has announced the addition of the “Global Construction Equipment Rental Market 2015-2019” report to their offering. The recent increase in infrastructure development is one of the primary factors that drive growth in this market and results in its healthy CAGR of more than 7% by 2019. According to the report, globally, the construction industry is witnessing high growth, which is driving demand for construction equipment. Sectors such as housing, transport and power and energy infrastructure are currently attracting large-scale investment. Therefore, owing to such high levels of investment, construction companies are choosing to rent equipment. This enables the companies to reduce their project costs. Further, the report states that one of the major challenges facing construction companies is the availability of services to the contractors. This is more evident when the contractor is working in a remote area; some rental companies are unable to provide

the necessary support to the contractor, thus hampering the productivity of the project. Upcoming trends such as the introduction of fleet management software service by leading OEMs are rapidly gaining popularity as they provide equipment related information to the end users. This software provides information pertaining to equipment wear out, preventive maintenance forecasting, commercial repair tracking and accident tracking. This information helps to reduce the operating and maintenance cost of construction equipment and also provides real-time information on the replacement of any particular attachment. Key questions answered in the report include: What will the market size and the growth rate be in 2019? What are the key factors driving the global construction equipment rental market? What are the challenges to market growth? For more information visit www.researchandmarkets.com.

>> INDUSTRY NEWS

DLL wins Young Global Leaders’ Circular Economy Investor Award DLL, a global provider of asset-based financial solutions, has been chosen as the winner of the Alliance Trust Award for Circular Economy Investor. The award is part of the 2016 Circulars Awards program, organized by the World Economic Forum’s Young Global Leaders in collaboration with Accenture. The Circulars recognize individuals and organizations from commerce and civil society that have made notable contributions to driving circular economy principles. CEO, Bill Stephenson: “Receiving this award is a groundbreaking milestone for our company and an immensely great honor. It’s a valuable motivation to continue our efforts to contribute to the circular economy, thereby creating business value for our partners, the environment and our company.” The Circular Economy Investor Award is granted to organizations in the investment sector that provide financial backing for the circular economy to become mainstream. The circular economy offers a new way to maximize the use of the world’s resources and ensures business has a positive impact on people and the planet, marrying environmental goals with those of driving commercial success. DLL is encouraging the transition to circular-focused business models by offering innovative and effective financing solutions for customers to use rather than own their assets. The judges were especially impressed by this commitment and the fact that DLL is driving change toward the circular economy built on innovative financing solutions and the process of educating its partners about the importance of moving from the “take, make, waste” linear model to the circular model of use and reuse. Through its Life Cycle Asset Management (LCAM) program, DLL encourages its customers to expand the full technical life of their equipment via remanufacturing and refurbishing. “We could not have won this accolade without the energy and in-depth knowledge of our people, dedicated LCAM team and the efforts and ingenuity of our partners,” says Rob van den Heuvel, Senior Vice President Global Asset Management at DLL. DLL, a fully owned subsidiary of Rabobank Group, provides LCAM services in nine industries: office technology, industrial equipment, healthcare, automotive, clean technology, construction, transportation, agriculture and food. DLL’s second life equipment financing investments grew from 1% in 2013 to 5% in 2015 and are expected to account for 20% of the firm’s portfolio by 2020. 13 | www.cedmag.com | Construction Equipment Distribution | March 2016

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>> INDUSTRY NEWS Diesel Tech Pathways Program ‘Revs Up’ In Utah Diesel tech industry partners come together to create career pathway for high school students Gov. Gary R. Herbert, along with Utah Diesel Technician industry partners and the Governor’s Office of Economic Development (GOED) announced the Utah Diesel Technician Pathways program, which is designed to provide Utah students a direct pathway from high school and college to the workforce. Gov. Herbert announced the program this morning during a press conference at the Cummins Rocky Mountain facility in Salt Lake City. An initiative similar to the recent Utah Aerospace Pathways (UAP) program, the Diesel Tech program was created by the industry to open opportunities for young men and women who are interested in the diesel technician field. “Productive education partnerships, such

as the Utah Diesel Technician Pathways program, are important investments in the state’s future,” Herbert said. “We are fortunate to have unique partnerships with industry and education leaders to better align workforce education with economic opportunities in Utah.” The program begins in high school with the completion of select classes. Upon graduation, students will complete an internship with one of the diesel technician industry partners and then at least one year of training at Salt Lake Community College (SLCC). This program has brought diesel technician industry representatives, education leaders and government together in an exceptional collaboration. The six diesel technician industry

partners in Utah participating in this program are Cummins Rocky Mountain, Jackson Group Peterbilt, Kenworth Sales Company, Komatsu Equipment Corporation, Mountain West Truck Center Volvo Mack, and Wheeler Cat. The collaboration started in Oct. 2015 with the goal of having the pilot program beginning in the 2016 school year. Canyons and Jordan School Districts, who already offer diesel technician coursework, are working with the industry partners to fully align the curriculum offered in their programs. Students from those classes will be able to complete their internship after high school graduation and then, with additional training at SLCC, possibly work with one of the industry partners.

Top 10 Ditch Witch Dealerships of 2015 Earn Crescent Club Memberships Ditch Witch, a Charles Machine Works Company, recognizes 10 dealerships for superior customer support in 2015 with membership to the company’s prestigious Crescent Club Top 10. “Our customers rely on exceptional product expertise, industry knowledge and service. This award reflects the outstanding commitment to exceeding expectations and earning customer trust that our dealers practice every day,” said Dennis Wierzbicki, Ditch Witch president. “We congratulate them for their commitment to our organization, our customers and the industry.” The Crescent Club Top 10 membership is the highest honor awarded to dealerships who best support the company’s “We’re In This Together” philosophy by providing customers with superior service to be more productive and confident on the jobsite. Listed in no particular order, the 2015 Crescent Club members are: Ditch Witch of Minnesota & Iowa (Shakopee and Fergus Falls, Minnesota, Slater and Davenport, Iowa) Ditch Witch of North Carolina (East Garner, North Carolina) Ditch Witch of Alabama (Birmingham and Mobile, Alabama) Ditch Witch of Central Texas (Austin and San Antonio, Texas) Ditch Witch of Virginia (Glen Allen and Chesapeake, Virginia) Ditch Witch UnderCon (Amarillo, Texas,

Park City, Kansas, Grand Island, Gering and Omaha, Nebraska) Ditch Witch of Oklahoma & Arkansas (Edmond and Tulsa, Oklahoma, Benton and

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Springdale, Arkansas) Ditch Witch Central California (Fowler, Newark, Corona and El Cajon, California) Witch Equipment Company (Fort Worth and Hewitt, Texas) Ditch Witch Sales, Inc. (Olathe, Kansas, Moberly and Sullivan, Missouri, Collinsville and Springfield, Illinois)

>> INDUSTRY NEWS Infrastructure Vision 2050 Challenge

Executives from VT LeeBoy and Stephenson Equipment, Inc. presented a $100,000 check to the American Cancer Society at the National Pavement Expo today. They also unveiled one of their unique fundraising tools—a pink paver. “I am overwhelmed by the generosity of these companies! I love the pink paver, and I’m sure it will help raise awareness everywhere it goes,” said Jami Myers, Senior Director for North Carolina Relay For Life. “We are fortunate to have LeeBoy in our region.” For LeeBoy, the industry leader in self-propelled asphalt pavers from Lincolnton, NC, and Stephenson Equipment, Inc., a leading construction equipment dealer based in Pennsylvania, the presentation is the culmination of almost a year of fundraising. The entire LeeBoy family, dozens of vendors and one dealer, Stephenson Equipment, Inc., all pitched in to raise the $100,000. Chairs of the Lincolnton Relay For Life event, John Dancoff, Claudia Dancoff, and Leigh Simon, attended the presentation along with over 200 people.

The current public conversation about U.S. infrastructure focuses too often on what we’ve failed to do. It seems on a daily basis we read stories about chunks of cement falling from bridges, or see segments about how potholes have ravaged our roads (and are aggravating drivers). Given this, it’s understandable that many Americans focus on the problems that affect their daily lives, especially in a 24/7 media cycle. But if we’re going to break the cycle of patchwork fixes and deferred maintenance, we must look beyond the immediate and form a long term vision. We need to imagine how people, freight, and energy will move in the country of tomorrow – even as far out as the year 2050 – rather than the congested status quo of today. It’s time to start a new conversation for what we want that vision to be and how we’re going to bring it to life. The fact is, America’s infrastructure needs aren’t the same as they were in 1900 or 1950. Our needs aren’t even the same as they were in the early 90s, before the Internet revolutionized lifestyles and commerce. And despite these transformations, policy-makers haven’t adapted. On the contrary, Congress and our presidents have spent too much time focused on scrounging together just enough cash to keep yesterday’s infrastructure from crumbling altogether and not enough time on the infrastructure opportunities of the future. What the Association of Equipment Manufacturers (AEM) and HeroX hope to offer through the Infrastructure Vision 2050 Challenge is an incentivized platform for innovative ideas to thrive and help shape America’s growth in the 21st Century. Over the next year, AEM and HeroX will seek to engage big thinkers from across a range of industries and backgrounds to elevate the conversation about infrastructure. We’ll engage thought leaders from across the political, business and public interest communities to solicit the most innovative ideas about how our infrastructure can adapt to our changing economy and way of life. For example, we want your ideas for how technology can revolutionize infrastructure. In an age of drones, automated cars and adaptive thermostats, we can more accurately forecast how Americans will consume energy or use roadways in the decades to come. What implications will these innovations have for the future? What aspect of existing infrastructure is the U.S. not maximizing or capitalizing on? What ideas are out there that policymakers aren’t seeing or hearing? The construction and completion of the First Transcontinental Railroad and U.S. Interstate System were major milestones in U.S. national infrastructure campaigns, and quite literally, the trails blazed by those projects are still providing benefits and service today. But it’s time to talk about what’s next for U.S. infrastructure. By way of a ground-up, alternative, rouge-ish Challenge, we hope to get there.

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Receiving the $100,000 check is Jami Myers, Senior Director for North Carolina Relay For Life (far left). She is joined by representatives from VT LeeBoy and Stephenson Equipment, Inc.: Tamara Helderman, Human Resources Generalist for LeeBoy; Dennis Heller, President and CEO of Stephenson Equipment, Inc.; Bob Grail, President and COO, VT LeeBoy, Inc.; Amber LeGette, Accounts Payable at LeeBoy, and the 2016 Relay For Life Team Captain; Mark Brissenden, Accounting Manager for LeeBoy, and former Team Captain of the Relay For Life.

VT LeeBoy and Stephenson Equipment, Inc., Donate $100,000 to the American Cancer Society

>> REGIONAL REPORT

BEN YATES

Sowing Seeds in the Garden State Eastern Regional Manager Ben Yates Visits New Jersey.

Most dealers today are facing a technical workforce shortage, but with an inquiry, a few conversations and a little foresight, you might be able to sow your own seeds for tomorrow.

In early March, representatives from 12 New Jersey dealerships will meet at Union County Community College in Plainfield, NJ to discuss starting a new, heavy equipment focused technical program, one they hope will serve as a reliable source for future technicians. But they won’t be the only group represented at the meeting, which makes this one a little more unique. At the AED Summit in 2015, John Graham, CEO of Fairview Insurance, based in Verona, New Jersey, listened intently at an AED Foundation event detailing the technical workforce shortage and decided to do something. He reached out to New Jersey Senator Corey Booker, whom he’s worked with in the past, and outlined the problem that was impacting heavy equipment dealerships. “Many of these dealers are our customers, and if this issue negatively impacts them then it’s worth addressing,” said Graham. John helped connect Senator Booker’s office with Steve Johnson, VP of the AED Foundation. Johnson is the resident expert when it comes to curricula and standards for technical programs serving our industry and will help establish the requirements needed to make this program one that truly serves the needs of heavy equipment dealers, for example, hydraulics, diesel, and electrical components. “There are no public heavy equipment

technical programs in New Jersey despite the fact there is a tremendous need for one,” said Johnson. “It’s not necessarily easy to start a program like this from scratch. There are some serious obstacles, cost being the biggest. But if dealers get involved, OEM’s lend their support, and the state of New Jersey does its part, then we are heading in the right direction.” Next, Sivaraman Anbarasan, Executive Director of the New Jersey Community College Consortium for Workforce & Economic Development, was brought into subsequent discussions. Anbar, as he’s referred to, will help identify the New Jersey Community College best suited for this program and will play a key role in getting it instituted. To gage their interest and potential support, AED reached out to New Jersey dealers to determine their current technician needs as well as a five-year projection. Unsurprisingly, the results supported the case for a New Jersey-based technical program. Several of these dealers met for a briefing at the AED Summit last January in National Harbor, Maryland, where Steve Johnson gave an update on the program and fielded questions. The general consensus matched the survey results: dealer interest is high across the board. If you’re keeping score at home, that’s an industry service company (Fairview Insurance), the AED Foundation, a New Jersey State Senator, the NJCC Executive Director, and a sizable group of AED dealers all pulling on the same end of the rope. By all accounts, that is some considerable synergy, and it’s hard not to be optimistic at the prospects of getting something special accomplished. This is not likely to be the standard model for developing an AED Accredited Technical program, but it is a story worth sharing. Most dealers today are facing a technical workforce shortage, but with an inquiry, a few conversations and a little foresight, you might be able to sow your own seeds for tomorrow. To learn more about AED Accredited Technical Programs and how you can get involved, contact Steve Johnson at sjohnson@aednet.org or 630-468-5134.

BEN YATES is AED’s Eastern Regional manager. Ben can be reached at 630-465-4232 or at byates@aednet.org. 16 | www.cedmag.com | Construction Equipment Distribution | March 2016

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2/18/2016 3:56:39 PM

Walsh Equipment Flourishes With

Conservative Business Sense Charlie Walsh discusses growing up in a family business celebrating its 84th year.

C By Dayna Maeder

Charlie Walsh understands the value of dedication. From his early teens, Walsh worked for his family business, Walsh Equipment, like his father and grandfather before him. However, Walsh didn’t always have his sights set on the construction business. “We all thought Charlie was going to become an attorney until his third year in law school,” his father, Mike Walsh, said. It was during law school that Walsh realized he wanted to learn more about his family business and a course to continue the legacy. In 2006, Walsh joined his family’s business on the heels of the U.S. recession, notably a difficult time during a downturn of the construction business. This only drove Walsh toward success, as he credits those tough times for invaluable lessons that molded him as a business leader. “It makes you more appreciative and you learn to be more conservative,” Walsh said. “It might affect sales, but if you know your employees and your customers, you can survive.” Walsh worked his way through every aspect of the business, from parts and service to sales and manufacturing, and realized the key to his success is knowing his customers, employees and the manufacturers. He quickly grew the business from primarily serving municipalities to expanding into community construction. As a business leader in the construction industry, Walsh, 34, is a member of Associated Equipment Distributors (AED). He credits the organization with providing him opportunities to network with other dealerships and share industry solutions. When Walsh Equipment was founded by Philip Walsh in 1932, it focused on the corrugated metal pipe industry. After World War II, its product line increased to include solutions for municipal, construction, highway, agricultural and paving needs. In 1947, the company relocated to Butler, Pa. In the 1960s, road signs, tractor loader backhoes and snow removal equipment were introduced into Walsh Equipment’s

From left, Matthew Taylor, of JCB; Mike Walsh, of Walsh Equipment; Lord Anthony Bamford, of JCB; Walsh Equipment President Charlie Walsh; and John Patterson, of JCB, gather at Walsh Equipment’s Headquarters in Prospect, Pennsylvania.

product line, and its sales team began operating throughout western Pennsylvania. Walsh Equipment continued to expand into the 1970s, and Mike Walsh joined the ranks in 1976. The company moved to Prospect, Pa. for additional space to serve the growing customer base. In the 1980s, the company added more products, and serviced contractors as well as its conventional municipal customers. As the needs of its customers increased, Walsh Equipment became a JCB dealer and added its construction product line, including equipment such as tandem drum rollers, construction backhoes, compactors and skid steers. In 2009, Walsh added J&J Dump Bodies and Trailers to its array of product lines, furthering its tradition of product development and innovation. In 2013, Walsh Equipment opened a new store in Ebensburg, Pa. and introduced its services to customers in central Pennsylvania. Today, under Walsh’s leadership, the company remains committed to the same principles its employees have practiced for

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decades: honesty and reliability. Walsh works alongside his father, who describes their partnership as priceless. “We get along really good; we’ve had a lot of fun,” Mike Walsh said. “It’s so nice to see someone that age passionate about what they do.” Walsh Equipment provides construction and heavy equipment to municipalities, industries and contractor markets in Pennsylvania. To learn more about the company, visit www.walshequipmentinc.com, call 888-806-0643 or follow them on Facebook, Instagram or Twitter.

FINANCIAL/ HR SYMPOSIUM Meet the man who saved a city and helped thousands — Lt. General Russel Honoré, USA (Ret.) Early in the morning on August 2005, Hurricane Katrina struck the Gulf Coast. When the storm made landfall, it brought sustained winds of 100-140 mph and stretched some 400 miles across. General Russel Honoré took swift charge of the military reliefs in Hurricane Katrina that battered New Orleans.

KEYNOTE SPEAKER Lt. General Russel Honoré, USA (Ret.)

Drawing from 37 years of military experience, Gen. Honoré brings his bold, no-nonsense leadership approach to businesses and organizations to help them better identify and prepare for the challenges of the future. He extends rare perspective on our current state of the “New Normal,” where all stakeholders have a role in creating a “Culture of Preparedness,” to safeguard our economy and natural resources.

Drawing from 37 years of military experience, Gen. Honoré: • Brings his no-nonsense leadership approach and offers solutions in leadership to better identify and prepare for the challenges of the future. • Reveals tactics that optimize efficiency and effectiveness of operations that you will be able to utilize back at your dealership. • Outlines the importance of developing the next generation of problem-solvers. Don’t miss the opportunity to gain the tools to become an effective leader in the 21st century! Join us at the new Financial/HR Symposium! Register online at bit.ly/2016aedsymposium

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2/18/2016 1:29:20 PM

>> PRODUCT PREVIEW

Webasto Launches Polar Cab ES Battery-Driven Electric Cooling System at AED’s CONDEX 2016 Polar Cab ES is designed to provide engine-off operator comfort by effectively keeping cabs cool on demand. Webasto, the global leader for equipment and vehicle heating and cooling solutions strives to continuously bring innovative comfort solutions to the off-highway market. To complement their Polar Cab TS, an engine-off cabin cooling system that features exclusive thermal storage technology that was recently introduced in October of last year, Webasto launched the all-new Polar Cab ES at AED’s Summit & CONDEX. The new Webasto Polar Cab ES maintains cool cabin temperatures during wait/load time in hot, humid and full sun conditions. Operators can now turn off their engines and keep comfortable, leading to fuel savings, idle reduction and increased productivity. “Developing two off-highway operator comfort solutions, one being battery driven and the other featuring a one-of-a-kind thermal storage technology, is what our engineering, research and development teams have worked hard to execute,” said Webasto Thermo & Comfort North America President and CEO, Dr. Rolf Haag. Webasto’s Polar Cab ES battery-driven

electric cooling system offers a cooling capacity up to 7,000 BTU/h while maintaining low power consumption and includes a compact 24V variable-speed electric compressor, with no additional batteries required for operation. The Polar Cab ES can be installed with one of two different aftermarket kit configurations. Operators can decide between a universal overhead compressor/ condenser unit with evaporator (Oakland) or a universal vertical floor mounted compressor/condenser unit with evaporator (Osaka). Kits include refrigerant lines and fittings, mounting hardware, control unit and wiring harness. The Polar Cab TS engine-off cabin cooling

system, which was introduced in October of 2015, features an exclusive thermal storage technology. Inside the storage core is a series of aluminum micro-channels, which route liquid refrigerant around a graphite honeycomb substrate that is impregnated with water. This substrate is capable of storing cold energy at an extremely high efficiency. Cold energy is transferred to the cab for on-demand engine-off cooling. The Polar Cab TS has a cooling capacity of up to 4,450 BTU/h. The Polar Cab TS does not require any additional batteries and consumes very little power. The system can be fully recharged within 3 hours. Webasto offers Polar Cab TS as an aftermarket kit which includes the thermo storage core, electrical compressor (24V), condenser with fan, air handler, wire harness and miscellaneous hardware needed for installation. The Polar Cab ES and TS will be on display at the world’s leading construction equipment trade show, Bauma 2016, April 11 – 17, 2016 in Munich, Germany (see story, page 50). You can visit Webasto at Booth #343 in Hall A4. For more information, please visit www.PolarCabCooling.com.

Hyundai Construction Equipment Americas Expands HX Series Excavator Product Line Hyundai Construction Equipment Americas today introduced two new models in its HX Series of Tier 4 Final-compliant hydraulic excavators – the HX140L and HX235LCR. These two machines provide up to 10-percent better fuel economy and 5-percent increased productivity versus previous models. They join a family of seven other Hyundai HX excavator models the company introduced in 2015 to U.S. and Canadian markets. The HX140L excavator is a 14-metric ton (14 200-kg / 31,310-lb) model, powered by a Perkins 1204F Tier 4 Final engine rated at 116 hp (87 kW). It achieves a maximum dig depth of 22 ft 1 in (6 730 mm) and maximum digging reach of 32 ft 9 in (9 980 mm), and provides bucket digging force of 24,890 lbf (11 290 kgf). The HL140L excavator is equipped with a standard 0.76-yd3 (0.58-m3) capacity, 39.4-in-wide (1 000-mm) bucket. The 24-metric ton (24 000-kg / 64,301-lb) Hyundai HX235LCR excavator is a compact-radius model, featuring a Cummins QSB6.7 Tier 4 Final engine rated at 183 hp (136 kW). Performance specs include a maximum digging depth of 22 ft (6 700 mm), maximum digging reach of 32 ft 6 in (9 910 mm), and bucket digging force of 20 | www.cedmag.com | Construction Equipment Distribution | March 2016

37,104 lbf (16 830 kgf). Capacity of the standard 39.4-in-wide (1 000-mm) bucket is 1.05 yd3 (0.80 m3).

Better fuel economy, enhanced cabs, improved hydraulics

New Tier 4 Final engine technologies, a more efficient vertically stacked cooling design, efficient electronic fan clutch, and hydraulic system innovations on the Hyundai HX series excavators contribute to an overall fuel efficiency improvement of up to 10 percent compared with previous models. The Hyundai HX series excavators feature large cabs with enhanced climate-control, more leg and foot space from the seat to the pedals, reduced in-cab sound level, heated operator’s seat with standard air suspension and integrated console. Additional features include a Bluetooth audio system and Miracast wireless functionality for viewing a mobile device screen on the monitor.

>> PRODUCT PREVIEW

Komatsu America Corp. Introduces New WA600-8 Wheel Loader

LiuGong E-Series Excavators Keep Forging Ahead At the triennial bauma construction show to be held in Munich later this year, LiuGong will put its full Tier IV E-series excavator range on display. It will include the 915EIV, 925EIV, 933EIV, 939EIV – all of which are fully compliant with European emissions regulations, demonstrating LiuGong’s commitment to the continuous development of its machines. The 9035EIIIA, 922EIIIB and 950EIIIA will also be exhibited to round off this product line. Customer costs are reduced through a combination of low fuel consumption and reliable machine performance. Every E-series excavator comes equipped with a fuel efficient, world-class Cummins engine that is further complemented by a Cummins-patented turbocharger. This varies airflow to precisely match engine and load demand, resulting in optimal performance. These low speed, high output torque engines are specially designed for the E-series excavator to ensure their efficient operation. Proven negative flow hydraulics optimise the main control valve, improving the speed of the cylinders’ front end while decreasing the hydraulic system’s damper loss, leading to enhanced working efficiency. The pilot valves match up with the main control valve to offer more precise control. The E-series also makes use of the Advanced IPC (Intelligent Power Control)

system – LiuGong’s own new-generation, computer-aided power control system. Not only does it maximise the engine’s low oil consumption, it also integrates the mechanical, electrical and hydraulic systems, thus achieving high all-round efficiency, economical fuel consumption and improved control. The E-series machines feature six selectable working modes - Power, Economy, Fine, Lifting, Breaker, and Attachment – to optimise performance and fuel consumption in every situation. Moreover, the automatic speed reduction in neutral gear reduces fuel consumption and noise. E-series excavators are constructed with thick plates of high tensile strength steel, as well as internal baffle and stress-relieved plates. The boom and arm support structures are designed with large cross-sectional areas and one-piece steel castings to guarantee their long-term durability and high resistance to bending and torsional stress. Standard rock guard plates and vertical guards protect the arm in rocky digging conditions or other similarly rough environments. Finally, ultrasound inspections are carried out to reduce defects and ensure quality and reliability. This new generation of E-series excavators were built with the brand DNA of LiuGong. They not only retain the reliability, serviceability and safety of their predecessors, but also function with higher efficiency and lower fuel consumption.

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Komatsu America Corp., a leading global heavy equipment manufacturer, today introduced the new WA600-8 Wheel Loader. Equipped with an EPA Tier 4 Final certified engine, this latest addition to the wheel loader family combines an enhanced lockup torque converter function and SmartLoader logic to achieve low fuel consumption and high travel speeds. By optimizing control of engine power, and improving power train and hydraulic efficiency, the WA600-8 consumes up to 13 percent less fuel than its Tier 3 predecessor. Also, the standard bucket capacity increased to 9.2 cubic yards and the bucket now fills easier, retains material better and provides better visibility, contributing to machine efficiency and productivity. “With significant enhancements in production capacity and fuel economy, the WA600-8 is designed to maximize production efficiency in loading off-highway trucks or load-and carry applications,” said Rob McMahon, product manager for Komatsu America. “Full rear fenders with steps and handrails at both sides of the machine add convenience for daily inspections. And operators will appreciate enhancements in cab comfort and machine stability,” McMahon said. The WA600-8 and every other Komatsu Tier 4 Final construction-sized machine, whether rented, leased or purchased, is covered by the Komatsu CARE® program for the first three years or 2000 hours, whichever comes first. Komatsu CARE includes limited scheduled factory maintenance, a 50-point inspection at each service, and one complimentary Komatsu Diesel Particulate Filter exchange in the first five years. With select labor, fluids and filters covered by Komatsu over this period, Komatsu CARE lowers ownership costs, raises resale value and improves equipment uptime and availability. For full program details, refer to the Komatsu CARE reimbursement letter.

PHYSICAL UTILIZATION

PHYSI

70% 75% 75% 80% 80% 70% 75% 75% 78.9% 72.9% 72.9% 80% 80% 70% 75% 75% 80% 80% 72.9% 72.9% 63.1% 65% 63.1% 65% 60% 72.9% 70% 70% 70% 72.9% 63.1% 75% 63.1% 75% 60% 65% 65% 80% 80% 72.9% 72.9% 70% 70% 63.1% 65% 63.1% 65% 70% 70% 60% 63.1% 65% 72.9% 72.9% 63.1% 65% 70% 65.2% 70% 60% 50% 55% 55% 60% 2015 63.1% 55% 2011 2012 2013 2014 2015 65.2% 60% 2012 2013 2014 2015 63.1% 55% 65% 65%2011 50%2011 70% 70% 60% 60% 2015 2011 2012 2013 2014 2015 65.2% 60% 50%2011 2012 2013 2014 2015 55% 55%2011 65.2% 60% 60% 50%2011 2015 2011 2012 2013 2014 2015 2012 2013 2014 2015 55% 55%2011 60% 2015 2011 2012 2013 2014 2015 65.2% 60% 2011 2012 2013 2014 2015 2011 50% 50% 50% 55% 55% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 50% 60% 60% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2015 2012 2013 2012 2013 2014 2015 50%2011 50%2011 The Dodge Momentum Index rose 2.4% in−2014 January to2015 126.4 80% 80% 80% AWP BOOMS FORKLIFTS - WAREHOUSE/INDUSTRIAL − 2015 -0.6% -4.8% 2015 50% 2011- ARTICULATING 2012 2013 2014 3.2% 2015 -2.6% 50% 2011 2012 2013 2014 80% 80% 80% 2015 (2000=100) 2011 its December 2012 2013 of 123.4. 2014 The Momentum 2015 2011 2012 2013 2014 2015 80% from reading 80% 50% 50% 80% SKID STEERS − -0.5% 1.1% -4.3% 70.4% 2011 80%2011 80% 80% 2015 2012 2013 2014 2015 2012 2013 2014 2015 70.4% 80% 85% 70% 70% 70% Index is a 80% monthly measure of the first (or initial) report for nonresi80% 70.4%85% 80% 80% 70% 70% 78.9% 78.9% 68.3% 70% 68.3% 70% 70.4% 80% 85% 70% 70% dential building projects in planning, which have been shown to lead 78.9% 78.9% 68.3% 68.3% 80% 85% 70% 70% 78.9% 78.9% 68.3% 70% 68.3% 60% 70.4%75% 60% 70% 78.9% 78.9% 68.3% 60% 80% 85% 68.3% 70% construction 70% 70%spending for nonresidential buildings by a full year. The 75% 70% 60% 60% 60% 70% 75% 60% 78.9% 78.9% 68.3% 60% 60% 68.3%in70% 75% increase January was the result of a 3.3% increase in institutional 60% 60% 60% 63.1% January 2016 50% 50% 60% 65% 50% 70% 2015 2011 2012 in commercial 2013 2014 2015 63.1% 75% 2012 2013 2014 2015 50% 50%2011 50%2011 60% 60% 60% 65% 60% projects, and a 1.6% increase projects. 63.1% 50% 2015 2011 2012 2013 2014 2015 2012 2013 2014 2015 50%2011 60% 65% 50%2011 2015 2011 2012 2013 2014 2015 63.1% 65% 50%2011 50% 50%2011 60% 2012 2013 2014 2015 50% 2015 2011 2012 2013 2014 2015 63.1% 55% 2011 2012 2013 2014 2015 2011 2015 2012 2013 2014 2015 2012 2013 2014 2015 60% 65%2011 50% 50% 50% 50%2011 55% 20152015 2011 2013 2014 2015 2011 2012 2013 2014 2015 2013 2014 20142015 2015 2011 50% 55%2011 2011 2012 2012 2013 2015 2012 2013 2014 2015 2012 2013 2014 2015 80% 70% 80% 50%2011 55%2011 2015 2012 2013 2014 2015 2011 2012 2013 2014 2015 80%2011AWP - SCISSOR 70% 80% LIFTS − 1.2% 1.3% GENERATORS − -2.6% -4.7% 50% 80% 55% 70% 80% 72.0% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 80% 80% 72.0% 80% 80% 70% -2.6% FORKLIFTS WAREHOUSE/INDUSTRIAL − -0.6% -4.8% 70% 60% 70% 72.0%80% 70% 80% 80% 70% 60% 70% 72.0% 80% 80% The charts below show physical utilization by equipment category. Physical utilization is the percentage of fleet cost which is70.4% on-rent during80% 70% 70% 70.4% 80% 80% 60% 70% 72.0%70% 60% 70.4% 70.4% 70% a70.4% given period. a week, 36570% 80% 80% 50% are determined on a nightly basis seven days 60% 70.4% 70% Physical utilization is cost weighted. “On Rent” and “In Fleet” 70% status 51.6% 60% 51.6% 70% 60% 68.3% 70% 50% 70.4% 70.4% 51.6% 70% 60% 60% 70% 68.3% days51.6% a year. A unit is “On Rent” if it is at a job site earning rental revenue. A unit is “In Fleet” if it is a rental asset owned by the client. Units out 60% 60% 70% 50% 51.6% 70% 70.4% 70.4% 51.6% 60% 68.3% 60% 50% 60% 51.6% 60% 51.6% 68.3% 70% 50% 50% 70% for repair and refurbishment are considered “In Fleet.” 60% 60% 40% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 40% 50%2011 60% 50% 51.6% 50% 51.6% 60% 60% 2015 2011 2012 2013 2014 2015 68.3% 60% 2012 2013 2014 2015 50%2011 60% 60% 40%2011 2015 2011 2012 2013 2014 2015 50% 50%2011 50% 50% 40%2011 2012 2013 2014 2015 Oct2014 2015 2015 Oct 2014 2015 2011 2013 2015 20122015 2015 2011 2012 2013 2014 / Sep 2015 2012/ 2013 20132014 20142015 2015 2011 50% 50%2011 2011 Oct 60% 60% 50% 40% 50% 2015 2012 2013 2014 2015 2012 2013 2014 2015 50%2011 50%2011 2015 2011 2012 2013 2014 2015 20132014 20142015 2015 2011 2015 50% 50%2011 2011 2012 2012 2013 2011 2012 2013 2014 2015 80% 75%2011 75% 2015 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 50% 80% 75% 75% 2015 2012 2013 − 2014 2015 2011 2012 2013 2014 2015 75%2011 80% 75% AWP BOOMS 2.2% -3.8% BACKHOES − −-0.6% -7.1% 70% - TELESCOPIC 80% 80% WHEEL EXCAVATORS − -1.9% -3.8% LOADERS 0.0% -5.7% 75% 75% 70% 80% 70% 65% 65% 1.3% GENERATORS − -2.6% -4.7% 66.9% 80% 75% 70% 80% 80% 80% 72.0% 80%75% 72.0% 70% 65% 65% 66.9%80% 70% 68.0% 80%65% 80%70% 80% 72.0% 72.0% 68.0% 65% 66.9% 60% 70% 80%65% 68.0% 68.0% 72.9% 72.0% 80% 80% 70% 65% 72.0% 66.9% 70% 80% 60% 68.0% 80%55% 80%60% 80% 72.0% 72.0% 68.0% 72.9% 70% 55% 60% 70% 70% 65% 68.0% 68.0% 72.9% 70%65% 70% 70% 66.9% 60% 55% 55% 60% 72.0% 80% 72.0% 80% 80% 72.9% 70% 70%55% 70%60% 70% 55% 50% 60% 68.0% 68.0% 51.6% 70% 70%55% 70% 70% 60% 55% 60% 50% 72.9% 45% 51.6% 60% 70%50% 65.2% 70%45% 65.2% 70% 50% 60% 2015 2011 2012 2013 2014 2015 51.6% 2012 2013 2014 2015 50%2011 60% 55% 45% 45%2011 60% 60% 65.2% 60%55% 65.2% 50% 60% 70% 70% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 51.6% 50% 45% 45%2011 65.2% 70% 50% 60% 40% 60% 65.2% 60% 2015 2011 2012 2013 2014 2015 50%2011 2012 2012 2013 20132014 20142015 2015 45%2011 65.2% 60%45% 65.2% 2015 2011 2012 2013 2014 2015 2011 40% 50% 50% 60% 60% 60% 51.6% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 60%45% 60% 60% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 40% 50% 50% 45% 80% 50% 65.2% 50%80% 65.2% 50% 2015 40% 50% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2013 2014 2015 2011 20122012 2012 20132013 20132014 2014 20142015 2015 2015 2011 80%2011 80% 0152015 20122012 2013 2014 2015 2011 2011 50%2011 50% 50% 60% 60% 60% 2015 2011 2012 2013 2014 2015 2011 80% 40% 50% 50%2011 80% 015 2012 2013 2014 2015 2012 2013 2014 2015 2011 50%2011 50% 2015 2013 2014 2015 2011 20122012 20132013 2014 2014 2015 2015 80%2011 80% 015 20122012 2013 2014 2015 50%2011 50% 50% 2011 2011 80% 75% 2011 70% 70% 015 2011 2012 2013 2014 2015 2012 2013 2014 2015 2011 80% 80% 50%80% 50% 50% 70% 70% SKID STEERS 2013 − -0.5% 1.1% FORKLIFTS - HI-REACH − 1.3% -4.3% 67.8%75% 80% 75% 2011 015 2011 2012 2013 2014 2015 2012 2014 2015 2011 70% 70% % 0.0% -5.7% 67.8%75%80% 80% WHEEL LOADERS − 85%70% 85% 70% 70% 65% 67.8% 80% 85% 85%60% 66.9% 66.9% 60% 80% 75% 78.9% w w w . r85% o u 70% s70% eanalytics.com 70% 67.8%65% 80% 85% 66.9% 66.9% 60% 60% 78.9% 68.0% 65% 70% 80% 85% 66.9% 85%60% 66.9% 60% 78.9% 68.0% 67.8%65% 70% 66.9% 75%60% 66.9% 70% 75% 60% 78.9% 68.0% 80% 85% 85% 60% 55% 50% 70% 75% 75%50% 70% 68.0% 65% 66.9% 75%60% 66.9% 60% 55% 2011 2012 2013 2014 2015 50% 50%2011 60% 70% 75% 78.9% 60% 2011 2012 2013 2014 2015 68.0% 55% 70% 75%50% 75% 50%2011 60% 55% 63.1% 63.1% 65%50% 2011 2012 2013 2014 2015 50%2011 60% 65% 50% 45% 70% 75% 63.1% 75% 2011 2012 2013 2014 2015 2011 60% 65% 65%50% 2015 63.1% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 60% 55% 45% 50% 63.1% 63.1% 65% 60% 65% 2015 63.1% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 45% 2011 2012 2013 2014 2015 63.1% 65% 2011 60% 65% 50% 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 45% 50% 2015 63.1% 55% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 55% 015 2012 2013 2014 2015 2012 2013 2014 2015 63.1% 55% 50% 60% 65%2011 65%2011 45% 80% 50%2011 55% 2015 2014 2015 2011 20122012 20132013 2014 2014 2015 2015 015 20122012 20132013 2014 2015 2011 80% 50% 55%2011 2011 55%2011 015 2011 2012 2013 2014 2015 2012 2013 2014 2015 50%2011 80% 55% 55%2011 015 2011 2012 2013 2014 2015 2012 2013 2014 2015 2011 80% 2011 50% 55% 55% 70% 015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 80% 70% UCCFORKLIFTS filings units. 80% on 12- earthmoving 80% 67.8% 80% 67.8% -4.8% AWP - ARTICULATING BOOMS − 3.2% -2.6% WAREHOUSE/INDUSTRIAL − -0.6% 70% 80% 80% 67.8% 80% 67.8% 70% 80% 80% 67.8% 80% 67.8% 60% Dec - Jan - Feb - 70.4% Mar - Apr - May - Jun - July - Aug Sep - Oct - 67.8% Nov - Grand 80% 80% 70% 67.8% 80% Equipment Description 70.4% 60% 70% 70% 70% 60% 14 15 15 70.4% 15 60% 15 15 15 15 - 15 - 15 15 67.8% 15 Total 80% 80% 67.8% 80% 70% 70% 70% 68.3% 70% 68.3% 70% 70.4% 50% 70% 68.3% Articulated Dump Trucks 145 98 123 142 60% 169 175 154 162 2014 150 2015 132 115 1,719 2015 68.3% 2011 150 2012 2013 50% 70% 70% 70% 70.4% 50% 68.3% 60% 2015 68.3% 60% 2011 2012 2013 2014 2015 60% 68.3% 2015 68.3% 70% 70% 70% 2011 379 2012 2013 Crawler Dozers 460 472 251 348 50% 512 433 481 446 2014 425 2015 422 330 4,992 60% 60% 60% 2015 2011 2012 2013 2014 2015 60% 68.3% 60% 68.3% 60% 50% 60% 60% 60% Crawler Loaders 19 17 15 20 40 25 15 14 33 13 8 15 236 2015 2011 2012 2013 2014 2015 50% 50% 50% 015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 50% 50% 50%2011 60% 60% 60% Excavators 9882014 1,052 614 871 1,062 840 1,039 919 2013728 810 782 2015710 10,455 50%2011 - Crawler, 015 2012Hydraulic 2013 2015 2012 2014 50%2011 50%2011 015 2012 2013 2014 2015 50%2011 50%2011 50%2011 2012 2013 2014 2015 Excavators 492014 31 13 25 22 2011 31 27 27 2013 29 14 12 2015 17 316 2011 015 2011 - Wheeled, 2012 Hydraulic 2013 2015 2012 2014 50% 50% 50% 015 2011 2012 2013 2015 2011 2012 2013 2014 2011 Mini 1,2152014 1,421 794 994 1,327 1,191 1,260 2015 1,153 14,959 80%Excavators 70% 1,372 1,530 1,419 1,213 80% 80% 70% 80% AWP SCISSOR LIFTS − 1.2% 1.3% GENERATORS − -2.6% -4.7% 80% Graders Motor 128 101 97 72.0% 98 121 105 109 122 119 99 145 130 1,379 70% 80% 80% 70% 80% 72.0% 70% 60% 70% Scrapers - Conventional 12 9 4 72.0% 6 6 12 7 15 12 5 7 N/A 95 80% 70% 80% 70% 60% 70% 72.0% 70% 60% 70% Skid-Steer Loaders 1,872 1,414 878 1,005 1,138 1,163 1,102 995 905 897 1,239 1,388 14,053 70% 60% 70% 72.0% 60% Loader Backhoes 50% 345 60% 51.6% 51.6% Tractor 471 411 402 358 352 432 369 338 320 394 256 4,460 70% 60% 70% 50% 60% 51.6% 60% 51.6% 60% 50% 60% 51.6% 51.6% Wheel Loaders < 80 HP 173 223 103 130 170 142 147 118 109 114 136 180 1,762 50% 60% 51.6% 60% 51.6% 50% 40% 50% 015 51.6% 2013 1,0042014701 2015 2012 2014 50%2011 40%2011596 50%2011 60% 50% 60% Wheel Loaders >2012 80 HP 518 631 716 722 672 2013571 571 676 2015722 8,141 51.6% 50%2011 015 2012 2013 2014 2015 2012 2013 2014 2015 40%2011 50%2011 015 2011 2012 2013 2014 2015 50% 40% 50%2011 2011 2012 2013 2014 2015 Grand Total 6,536 5,950 3,812 4,628 5,635 5,160 5,738 5,305 4,665 4,609 5,213 5,016 62,567 015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 50% 40% 50% 015 22 | www.cedmag.com 2011 2012 2013 Distribution 2014| March 2016 2015 2011 2012 2013 2014 2015 2011 | Construction Equipment 80% 75% 75% 80% 75% 75% 75% 80% 75% EXCAVATORS − -1.9% -3.8% 0.0% -5.7% 80% WHEEL LOADERS − 75% 75%

>> DATA TRENDS

Dodge Momentum Index Moves Higher in January 





ROUSE ANALYTICS

Physical Utilization  Units Physical Utilization of FourRental



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

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 

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The Dirty  Dozen -

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>> DATA TRENDS

EquipmentWatch INDEX TM | December 2015 in Review | Monthly Heavy Equipment Intelligence

www.EquipmentWatch.com

EquipmentWatch INDEX TM | December 2015 in Review | Monthly Heavy Equ

23 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> WASHINGTON INSIDER

CHRISTIAN KLEIN

Want to step up your company’s political game in this critical election year? Consider starting your own Political Action Committee.

There’s a growing recognition that distributors who take the time to engage politically can have a big and positive impact.

AED members are increasingly aware that what happens on Capitol Hill affects dealer costs of doing business and equipment demand. There’s also a growing recognition that distributors who take the time to engage politically can have a big and positive impact. This year’s elections are an important opportunity to do just that. A few of the most important things you can do to influence this year’s elections are: Going to http://aedaction.org/aed-pac/ and giving us permission to tell you more about AED’s Political Action Committee (PAC); Participating in AED’s ImPACt 2016 PAC check delivery program and hosting candidates at your facility (ask your AED regional manager); Attending fundraisers for business-minded office seekers in your area; Registering to vote and voting; and Talking to your employees about how issues impact your company. But there’s another way to increase your political visibility that most AED members have yet to explore: starting your own company PAC. Here’s what you need to know: What’s a PAC? For purposes of this article, the word PAC means a special account set up by a company to raise money from individuals affiliated with the company to support federal candidates who share the company’s legislative objectives and political philosophy. This article isn’t about “Super PACs,” a different of entity that can raise unlimited money from corporations to spend on independent political advertising. What’s the advantage of a company PAC? PACs allow individuals affiliated with your company to speak with a unified voice and increase the company’s political impact. Assuming the PAC meets a few simple tests to become a “multicandidate committee” (exist for six months, have 50 contributors, give to six candidates) the PAC also has higher contribution limits. Whereas one person can only give $2,700 per candidate per election, multicandidate PACs can give $5,000. PACs thereby allow contributors to have a bigger impact collectively than they could individually. How hard is it to set up a company PAC? Setting it up is the easy part. First, you establish a separate bank account for your “separate segregated fund,”

which is the official Federal Election Commission (FEC) term for a PAC associated with a company. Then you file FEC form 1 declaring yourself a federal PAC. What does it take to run a PAC? Running a PAC isn’t simple, but it’s not rocket science either. PACs primarily do two things: raise money from individuals and use it to support candidates. There are also legal restrictions on who you can ask for support, who can contribute, how much they can contribute, and how much the PAC can contribute to candidates. PACs are also required to report receipts and distributions regularly to the FEC (twice in non-election years and at least four times in election years). The most important thing is being well organized and creating proper procedures to make sure you follow the rules and file reports on time. Whom can I ask for money? Your company’s “restricted class” (people you can legally ask for money) are your executive and administrative employees and owners. You can solicit your company PAC’s restricted class whenever you want. You can also solicit all your employees twice per year. However, company PACs cannot solicit from the general public. How much can individuals contribute to my company PAC? Individuals can contribute up to $5,000 per year to your PAC and any others they wish to support. How do I raise money for my company PAC? Convincing your employees and owners to part with hard earned dollars requires you to make a compelling case about why supporting the PAC and electing good candidates will help make the entire company better off. Beyond simply walking around and collecting checks, you can also set up a payroll deduction system to encourage regular giving. Can I require my employees to support the PAC? No. All PAC contributions must be voluntary. Companies that try to strong-arm employees into contributing risk legal retaliation. You also can’t reimburse employees for supporting your PAC or making other political contributions. Where can I go for more information about starting a company PAC? The FEC website (http:// www.fec.gov) is a great place to start. AED’s Washington Office can also get you pointed in the right direction. Give us a call at 703-739-9513.

CHRISTIAN KLEIN is AED’s vice president of Government Affairs. He can be reached at caklein@aednet.org and 703-739-9513. Note: This article is for informational purposes only and does not constitute legal advice. 24 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> DEALER >> DEALERDEVELOPMENT DEVELOPMENT

CAT ThinkBIG Service Technician Program at Grand Prairie Regional College Receives AED Accreditation

The AED Foundation congratulates faculty and staff at Grand Prairie Regional College.

The AED Foundation congratulates faculty and staff at Grand Prairie Regional College (GPRC) on receiving AED Accreditation of the CAT ThinkBIG Service Technician Program. We greatly appreciate their long-term support of excellence in diesel-equipment technology education. Alan Hagen, Program Instructor, commented on the importance and benefits of AED Accreditation. “The scarcity of suitable candidates, inadequate funding, advances in andragogy, changing interpersonal and business relationships, as well as the sheer number of competent graduates required by industry, list just a few of the CAT ThinkBIG Service Technician Program Faculty include, from left: Richard McGrail, challenges that have instructional staff Lynnette Tye, Duane Frizzell, Al Hagen, Rudy Hrynkiw, Gavin Winter and Harry Frykas. and institutions clamoring for solutions. It is virtually impossible for small groups in isolation to experience all the lessons necessary to meet these challenges effectively. With AED Accreditation, we are connected to a vast network of professionals who are willing to share successes, failures and best practices in an effort to mitigate these and many other challenges we will face going forward.” This CAT ThinkBIG Service Technician program is the result of a unique partnership between GPRC, Caterpillar Inc., and Finning, Caterpillar’s largest dealership worldwide. GPRC is the only post-secondary institution in Canada to offer this globally recognized training, which is formulated to meet Alberta Apprenticeship examination requirements. The program is a two-year diploma program (80 weeks in length) located at the GPRC Campus in Fairview, Alberta. Students gain advanced technical knowledge and hands-on skills directly related to Caterpillar equipment and upon graduation are ready to work anywhere Finning has opportunities – more than 40 locations across Alberta, B.C., NWT, Sask. and the Yukon. Graduates are in exceptionally high demand. Again, we congratulate the faculty for their To learn more about the Caterpillar ThinkBIG Service Technician Program commitment to their students and leadership in heavy at Grand Prairie Regional College, contact: equipment technology education. The AED Foundation Mr. Alan Hagen, Instructor is proud of its affiliation with GPRC and other outstandCAT ThinkBIG Service Technician Program ing equipment technology programs via AED AccrediGrand Prairie Regional College, Fairview tation. If you are wondering where your next generation Heavy Equipment Department of qualified equipment technicians will come from, P.O. Box 3000, 11235-98 Avenue and are interested in working with your local technical Fairview, AB T0H 1L0 Canada college, contact Steve Johnson at The AED Foundation Phone 780-835-6737 for more information. 25 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> DEALER >> DEALER DEVELOPMENT DEVELOPMENT

Upcoming Professional Development Opportunities to Set Your Dealer Team Apart From Others Register your team today online or by phone with your regional manager Ongoing professional education sets your dealer team apart and equips the front line with knowledge and tools to serve your customers—and improve your company’s profitability. To assist with the development of your team, The AED Foundation has a full lineup of live industry-specific training. Please visit bit.ly/aedevents for a complete overview of each event’s agenda. Here are the dates for 2016: Rental Manager Seminar May 17-18th, 2016 Las Vegas, NV Parts Manager Development Seminar- Level 2 September 27-28, 2016 Dallas, TX Service Manager Development Seminar- Level 2 September 29-30, 2016 Dallas, TX Equipment Business War Games (Test Drive) October 19-20, 2016 Philadelphia, PA Branch Manager Seminar November 10-11, 2016 Orlando, FL Featured April Webinars: Getting Serious About Dealing with Surplus & Obsolete Inventory/ Get Your Cash Back! Presented by Machinery Advisors Consortium (MAC) April 7, 2016 10-11am Central Why Do We Sometimes SEE Things So Differently: Understanding & Maximizing Team Dynamics Presented by: Brian Gareau April 14, 2016 10-11am central 26 | www.cedmag.com | Construction Equipment Distribution | March 2016

High performing teams and organizations effectively understand and handle different viewpoints and opinions. They minimize situations where: a) no decisions are reached—just agreement to disagree; b) energy is diverted from higher priorities; and c) morale issues and divisions are created. Help create a team environment where “to be right does not mean the other person was wrong.” Suggested Onboarding Process for New Hire Technicians/Let’s Make Early Earners! Presented by Machinery Advisors Consortium (MAC) April 21, 2016 10-11am Central Featured April Seminars: Financial/HR Symposium Loews New Orleans Hotel, New Orleans, LA April 27-29, 2016

Two simple ways to register: ▶ Online at bit.ly/aedevents ▶ Call your regional manager at 630-574-0650

Join AED April 27-29 for our annual symposium in the exciting city of New Orleans, Louisiana! This year’s symposium will take place at the Loews New Orleans Hotel, and we are happy to announce that human resources will be included in the program as a separate track. Over the course of this day and a half conference, attendees will have access to a variety of educational learning sessions with topics that include: next generation recruiting for technicians, legal must-knows for financial executives, what to do if you get audited, and more! Each year, attendees walk away with an abundance of information to take back to their dealerships. Register today at bit.ly/2016aedsymposium and see what the buzz is about!

>> DEALER DEVELOPMENT

The AED Foundation Expands Learning Management Platform; Webinars Now Available On Demand By Cheryl Rogers The AED Foundation launched its new learning management platform this month, making it easier for those in the construction industry to receive self-paced training online. In connection with Associated Equipment Distributors (AED), The Foundation is now offering buy-on-demand webinars in addition to live webinars. This gives students the option of a live seminar online where they can ask questions or an on-demand video class they can access 24 hours a day, seven days a week. “This new platform will offer other educational opportunities too,” said Rebecca Lintow, The Foundation’s director of sales and development. “The ability to watch webinars (on demand) in addition to live seminars is the first of the new components.” The new learning management system will provide: ▶ The ability to pause, fast forward and rewind the webinar while watching it on demand. ▶ The ability to return to a webinar when viewing of the recording is interrupted. ▶ Universal login allowing students to register for association events and webinars with the same login. ▶ An archive of previously recorded webinars available for purchase. ▶ Online access to all parts of self-study courses through AED University, a service of AED Foundation. Currently books and videos are sent by mail. (coming in June 2016) The platform is being launched in phases, with the archives coming online in April and self-study courses in the summer. “Our webinars are industry-specific,” Lintow said. “The topics relate directly to issues that our members are facing. To take this one step further, the webinars are geared to different roles within the dealership like sales and product support.” The AED Foundation will host more than 25 webinars this year, each offering quick tips on relevant issues such as rentals, how to train technicians to communicate more effectively with customers onsite and how to run an inventory system better. The Foundation began offering webinars four years ago. More than 50 hour-long webinars already are archived. For more information, visit http://lms.aedu.org. Check back often for new additions to webinar offerings. Visit http://aednet. org/self-study/ for information on self-study courses. CHERYL ROGERS is a freelance writer and author based in Tampa, FL. The publisher of New Christian Books Online Magazine, she also offers career mentoring through the Mentor Me Career Network at http://www.mentormecareernetwork.com. 27 | www.cedmag.com | Construction Equipment Distribution | March 2016

NEW WEBINARS Students can register now for any of the new webinars, although access to on-demand videos won’t be given until after the live event. The new live webinars include: ▶ 2016 Industry Trends ▶ Developing Your Exit Strategy ▶ Establishing Effective Parts Department

Incentive Programs ▶ Everyone in the Dealership Sells! Maximizing Every Precious Interaction ▶ Exposing Ploys that Will Erode Your Margins ▶ Are You Truly Wowing Your Customers? ▶ Getting Serious about Dealing with Surplus and Obsolete Inventory ▶ How to Build a True Team Within Your Dealership ▶ Online Marketing – Where’s It Going; How to Win ▶ Raising the Bar –Technical Education at Local Schools ▶ Rental Fleet Financial Management ▶ Satisfying Multiple Customers ▶ Secrets to Legendary Service on the Job Site ▶ Setting Up Your Business with Social Media Assets ▶ Six Regimens that Are Vital for Construction Equipment Sales Professionals ▶ Starting Conversations with Local Technical Schools ▶ Understanding Your People Strategy ▶ Why Do We Sometimes See Things So Differently: Understanding and Maximizing Team Dynamics ▶ Setting Rental Rates – Science or Art?

>> DEALER DEVELOPMENT

New Report: Skilled Worker Shortage Costs Equipment Industry Billions Each Year Preview the current state of the construction equipment industry’s workforce. The U.S. heavy equipment distribution industry loses at least $2.4 billion each year as a result of dealers’ inability to find and retain technically skilled workers. The figure, based on an estimated nine percent of earnings foregone by American dealerships represented by Associated Equipment Distributors (AED), was included in a report released on Jan. 20 by The AED Foundation (AEDF). The foundation, established in 1991 and directed by AED members, focuses on professional education and workforce development issues specific to the equipment distribution industry. AEDF commissioned a team of public policy researchers from the College of William and Mary to analyze the industry’s technician shortage based on a summer 2015 survey of AED’s members in North America. “This report provides a window into the current state of our industry’s workforce,” AED President & CEO Brian McGuire said. “Distributors have known for far too long that finding the right people is tough, and it’s getting tougher. A report like this tells policymakers this isn’t just an anecdotal or local problem. It’s a national crisis.” According to the report, the equipment distribution industry is suffering badly from the mismatch between the capabilities needed to fill technical roles and the skill possessed by prospective employees. This “skills gap” has been the focus of much analysis across the broader economy and observed by AED members struggling to replace retiring workers and grow their companies while overcoming biases against technical careers and trade schools. The report found that a lack of “hard skills” is the most significant challenge dealers face in their struggle to hire for technical positions. Equipment distributors also have a job opening rate three times the national average, and vacancies remain open for extended periods. Time, resources and economic opportunities are squandered as positions go unfilled because the right candidates are not available. Without training and resources to develop practical competencies, American students are simply unprepared to maintain the machines that build and maintain the

“A report like this tells policymakers this isn’t just an anecdotal or local problem. It’s a national crisis.” – Brian P. McGuire

AED President and CEO

nation’s infrastructure. The anticipated increase in building activity associated with the new five-year highway authorization law recently passed by Congress is expected to exacerbate the problem. “In the equipment distribution industry,

28 | www.cedmag.com | Construction Equipment Distribution | March 2016

the skills gap is real, and it adversely affects businesses,” the report said. “These effects appear in the form of decreased expansion potential, lost revenue and lost wages, among other detriments.” The report provides a series of recommendations including improvements to federal workforce policy and steps to strengthen community-based relationships for recruiting and developing talent. “The problem is daunting, but there are solutions,” McGuire said. “Congress will consider a host of workforce and education-related policy issues this year, including Perkins Act reauthorization. We hope this snapshot of how the nation’s skills gap affects just one industry will serve as a wakeup call on Capitol Hill and help lawmakers understand that the future health of the U.S. economy depends on tackling the skills gap head on.”

>> DEALER DEVELOPMENT

Download the complete workforce infograph at bit.ly/AEDSkillsGapStudy 29 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> A PATH FORWARD

STEVE CHACON, ACCRUIT

Understanding Bonus Depreciation, Section 179 Expensing and the PATH Act Signed into law on December 19, 2014, the Tax Increase Prevention Act of 2014 (TIPA) allowed purchasers of certain qualifying equipment to immediately expense a portion of the asset’s cost through special bonus depreciation and/or Section 179 expensing. At the time, many equipment owners applauded TIPA but remained critical of Congress as Section 179 and bonus depreciation were set to expire just twelve days later on December 31, 2014. With the arrival of 2015, buyers and sellers of equipment were once again thrown into a year of tax planning uncertainty. This frustration led many equipment owners to look to another piece of tax legislation for help, Internal Revenue Code Section 1031. With the expiration of key pieces of depreciation benefits and Congressional inaction, Section 1031’s 100-year record and powerful tax deferral benefits brought certainty to an uncertain world.

Section 179 and Bonus Depreciation’s Current Status On the night of December 15, 2015, the House Ways and Means Committee settled on a plan to renew a host of expired tax benefits. This tax extenders package contained numerous pieces of tax law that over the years had lapsed, been reinstated and then lapsed again. The plan, referred to as the PATH Act, but more formally known as the Protecting Americans from Tax Hikes Act, was signed into law by President Obama on December 18, 2015. Buried within the 233 page legislation are provisions related to the extension and modification of bonus depreciation and Section 179 expensing. The following details are from the Associated Equipment Distributors (AED) online information clearinghouse: Special Bonus Depreciation – Details Under PATH: 50% bonus depreciation is in effect for 2015, 2016 and 2017. For 2018, the depreciation bonus amount is 40%. For 2019, it is 30%. Helps businesses that buy new equipment cut their tax bill by allowing them to depreciate (“write off”) more of the cost of the equipment in the year it is purchased. Applies, among other things, to purchases of tangible personal property (including construction, mining, forestry and agricultural equipment) with a MACRS recovery period of 20 years or less. Applies to new equipment only (“original use” must occur with the taxpayer claiming bonus depreciation). Equipment must be purchased and placed in service in the year in which the taxpayer is claiming the bonus. In lieu of claiming bonus depreciation, companies may instead elect to accelerate alternative minimum tax (AMT) credits. Discretionary - Taxpayer need not claim the depreciation bonus. Section 179 Expensing – Details Under PATH: Sec. 179 expensing levels for 2015 are $500,000 with a $2 million phase-out (i.e., taxpayers can expense $500,000 in purchases as long as total purchases don’t exceed $2 million). For 2016 and beyond, the expensing level and phase-out cap are indexed for inflation. New and used equipment is eligible for expensing. Can be combined with bonus depreciation (i.e., expense first $500,000 of equipment purchases and take bonus depreciation on new equipment purchases between $500,000 and $2 million). Meaningful Tax Saving Opportunities Require a New Perspective For those selling and buying heavy equipment, the enactment of the PATH Act takes some of the income tax burden out of the asset disposition/acquisition process and restores some certainty for tax advisors. The new law, combined with a healthier economy, also presents some unique tax planning opportunities related to the combination of Section 179, bonus depreciation and like kind exchanges. STEVE CHACON, CPA, CES, is Director of Exchange Operations at Accruit. For over 15 years, Steve has provided skilled and practical guidance as a financial statement auditor, tax advisor, entrepreneur and educator on Section 1031 like-kind exchanges (LKEs).

30 | www.cedmag.com | Construction Equipment Distribution | March 2016

CXT Cone - New for 2016!

Spyder 514TS - New for 2016!

Portable Jaw, Cone & Impact Crushers, Trommels and Conveyors

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2/10/2016 4:25:38 PM

>> BAUMA 2016

Bauma Is Your Hub Into All Markets Here’s a look at the 31st edition of the world’s leading trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment. Bauma is a global driving force behind innovations, an engine for success and a marketplace. It is the only trade fair in the world that brings together the industry for construction machinery in its entire breadth and depth. This platform presents the highest concentration of innovations—making your visit an event to remember.

Bauma: The heartbeat of our industry

▶ 575,000 square meters of exhibition space ▶ 3,421 exhibitors from 57 countries 535,065 visitors from more than 200 countries ▶ 125,850 trade visitors in the mining sector ▶ 1,475 journalists and media representatives

This is where international key players meet. This is where significant new developments are presented. This is where suppliers and solutions come together perfectly. The 31st Edition of the World’s Leading Trade Fair bauma takes place in Munich from April 11–17, 2016. Once again, the 2013 exhibition set several new records—confirming yet again its leading role as the largest trade fair in the world.

The four sectors at bauma

1. All around construction sites ▶ Construction vehicles ▶ Construction machines ▶ Lifting appliances and conveyors ▶ Construction equipment, tools and special systems ▶ Handling and processing concrete and

mortar at construction sites ▶ Formwork and scaffoldings ▶ Site installation

2. Mining, extraction and processing of raw materials ▶ Machines for extraction of raw materials and for mining ▶ Handling of raw materials ▶ Mineral processing (incl. coke oven equipment)

3. Production of building materials ▶ Manufacture of cement, lime and gypsum compounds for building materials ▶ Machines and systems for producing concrete, concrete products and pre-fabri cated components ▶ Machines and plants for producing asphalt ▶ Machines and plants for producing pre-mixed dry mortar, plaster, screed and building supply store products ▶ Machines and plants for producing lime sandstone and building products using power plant residue (fly ash, slag, etc.) ▶ Machines and systems for producing gypsum and gypsum plasterboard ▶ Building material handling and packaging (in a plant) 4. Components and service suppliers ▶ Transmission engineering, fluid technology and power generation units ▶ Accessories and wear parts ▶ Services ▶ Test, measurement and process control engineering ▶ Communication and navigation ▶ Job safety Photo courtesy of bauma

32 | www.cedmag.com | Construction Equipment Distribution | March 2016

business services your aed membership provides solutions and options AED’s membership services and benefits are designed to enhance and develop the profitability and continuity of construction equipment dealers by providing tools and resources.

aed legal call counsel AED’s call counsel is a FREE legal hotline for AED members provided by Kopon Airdo, LLC — AED’s general counsel. Take advantage of this member benefit today, call 312-506-4480 or visit www.koponairdo.com.

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aed hr help desk AED’s HR Help Desk allows AED members to get answers to simple questions or many employment-related issues free of charge. Call about any HR compliance or procedural issue, even sensitive personnel situations. Contact Karla Dobbeck at Kdobbeck@askhrt.com.

1/14/2016 2:40:14 PM

>> EQUIPMENTWATCH INTELLIGENCE

Top 5 Equipment Types with Longest Economic Life... Cranes and marined equipment take four of the top five spots for equipment with the longest economic life.

KEY TAKEAWAYS

Years of Economic Life by Subtype 25

Years

When analyzing data that supports EquipmentWatchâ&#x20AC;&#x2122;s Rental Rate Blue Book and Custom Cost Evaluator, we can determine the time in years we expect a type of equipment to last before it reaches the end of its economic life. The equipment type and its function play a role in its expected economic life as well as annual use hours. Out of 460 types of equipment analyzed, vertical earth drills for crane mounting have the longest economic life at 23.1 years on average. The high economic life hours (15,000 on average) and low annual use hours FOR DECISION MAKERS (650 on average) puts this equipment type at the top CONTRACTORS: Pay attention of the list. to the average number of years Following very closely in equipment is expected to last second place, deck cargo before reaching its economic barges have an average life. A similar type of equipment economic life of 22.3 years. function with a longer life might This equipment type be a better fit. has the highest average economic life hours of 39,000 and is used only 1,750 hours per year on average creating a very long economic life. Next on the list are hydraulic locomotive cranes. With economic life hours averaging around 26,000 and an average annual use of 1,200 hours, you can expect this type of crane to last 21.7 years before reaching

0 Vertical Earth Drills For Crane Mounting

Deck Cargo Barges

Hydraulic Locomotive Cranes

Hydraulic Cutter Suction Dredges

3-Wheel Compactors

Average of Years before Overhaul Highcharts.com

the end of its economic life. Hydraulic cutter suction dredges can be expected to last 20.8 years on average before reaching the end of its economic life. While it may have the second highest average economic life hours (34,375) of all 460 equipment types, it also has one of the highest average annual use hours (1,658) which causes this subtype to fall in the fourth spot. Last but not least are 3-wheel compactors. On average, this equipment will have an economic life of 20.6 years which is based on 11,000 economic life hours and 535 annual use hours on average.

...And Equipment Types with the Shortest Economic Life

Saws and drills dominate the equipment types with the shortest economic life. On April 16, 2015, EquipmentWatch analyzed the equipment types with the longest economic life using data that supports the Rental Rate Blue Book and Custom Cost Evaluator. On the opposite end of the spectrum are the equipment types with the shortest economic life. FOR DECISION MAKERS Out of 460 equipment CONTRACTORS: General types, sequential arrows shop tools such as saws and for vehicle mounting have drills typically have a very short the shortest economic life economic life. This is something at just 1.3 years. On averto keep in mind when purchasing age, they can be expected these types of equipment since to last 1,320 hours but replacement could be only a year are generally used 1,000 or two away. hours each year, creating a short lifespan. Only lasting 1.4 years on average, circular saws, pistol grip chain saws, and pole chain saws all tie for the second spot. These equipment types have the lowest average economic life hours of 950 and almost reach the end of their life in just one year. With an average use of 700 hours per year, you can expect to replace these saws rather quickly.

KEY TAKEAWAYS

34 | www.cedmag.com | Construction Equipment Distribution | March 2016

Chain saws, cut-off saws and hammer drills are next on the list falling in the third spot. Chain saws and cut-off saws both have average annual use hours of 1,000 and are used 675 hours per year on average, creating an economic life of 1.5 years. Hammer drills also have an economic life of 1.5 years but have slightly higher economic life hours (1,150) and annual use hours (775). Singularly occupying the fourth spot is electric circular hand saws. With average economic life hours of 1,500 and annual use hours of 900, you can expect this type of equipment to last 1.7 years on average. Rounding out the list are standard hand held drills and hand held continuous production drills, both with an economic life of 1.8 years. With average economic life hours of 1,300 and average annual use hours of 725, standard hand held drills end with a life shorter than two years. Hand held continuous production drills also have a lifespan less than two years due to average economic life hours of 1,350 and a use of 750 hours per year on average.

Elise Gregory Senior Industry Analyst EquipmentWatch.com

>> EQUIPMENTWATCH INTELLIGENCE

Regional Weekly Rental Rates: Rough Terrain Lift Trucks Highest are found in Texas, Oklahoma, Arkansas and Louisiana. As EquipmentWatch’s Rental Partnership Program continues to flourish, we wanted to pass along some of the insights provided within our most recent rental update. Lift/Access/Telehandlers are among the most popular equipment items at major rental houses, and we see a lot of activity, especially around telescoping boom, rough terrain lift trucks. To examine the impact that geographic region has on rental rates for this type of equipment, we divided the United States into ten distinct regions. We then charted average weekly rental rates for each region for the most popular size of rough terrain lift trucks, 4.5 – 4.9 metric tons. These divisions and rates can be seen on the map by hovering your mouse over each state. We found that Texas, Oklahoma, Arkansas, and Louisiana, as a group, had the highest average rental rates at $1591 per week for that size of telehandler. On the opposite end of the spectrum, the northeast (Maryland to Maine) had the lowest average cost to rent, at only $1190 per week. Generally, it seems that prices increase as one moves from east to west, with pockets of low weekly cost in Colorado, Utah, Wyoming

and New Mexico. Unsurprisingly, isolated states like Alaska and Hawaii exhibited rates above the national average—weekly rental for rough terrain lift trucks are $1538 and $1578, respectively. These rates are just a summary of the information available in the EquipmentWatch Rental Rates product, which contains regionally adjusted monthly, weekly, and daily rental rates for over 13,000 unique equipment models.

KEY TAKEAWAYS

FOR DECISION MAKERS EQUIPMENT MANAGER/ RENTER/SELLER: Rough Terrain Lift Truck rentals are most expensive in the south and west and least expensive in the northeast and mountain states.

Sam Giffin Industry Analyst EquipmentWatch.com

High-Horsepower Tractor Prices Stall Out

Prices have been flat since late 2013 while smaller models demonstrated pricing variability and growth. Following the greatest pricing expansion of Equipvolatility. Prices mentWatch’s reach hit their lowest FOR DECISION MAKERS into the agricultural levels in January FINANCE: Given the pricing fluctuation equipment industry, of 2014 but for low and mid-horsepower tractors, we examine pricing for quickly reboundmarket-based residual values for shorter tractors within the past ed, reflecting lease terms will prove difficult to predict. two years to determine greater consumer how those trends vary confidence and by size class. Although the Association of demand among property owners and small Equipment Manufacturers (AEM) defines four farmers. One year later, average prices were size classes for tractors (three for 2WD models 50% higher than initial levels. Given the low and one for 4WD models), we at Equipmentprice point of these models, however, the Watch break equipment out further with seven differences are not as extreme as they appear. classes ranging from under 25 PTO hp to 275 The 27.8% increase seen from July 2013 to July PTO hp and over. Using a greater number of 2015 represents a difference of about $3,200. categories allows us to pinpoint market activity An upward trend was also observed for with greater accuracy and is made possible by tractors in the 25–74 hp and 75–124 hp categothe amount of data: Over 300,000 unique sales ries. With one exception, prices for 25–74 hp records were compiled for this analysis. tractors were consistently higher than in July Graphing indexed prices rather than average 2013. May of 2014 marked a dip for most size dollar values allows for easy comparison of classes, with prices tending to level out in June pricing trends and variability. While all size and July. Since then, prices have risen 38% and classes experienced dips and surges in monthly 20%, respectively. prices, one overarching theme emerged: since Compared to other size classes, high July of 2013, prices for high horsepower models horsepower tractors exhibited little variation in remained stagnant while prices for small and average pricing. After some swings in late 2013 mid-range tractors were less predictable but and early 2014, prices for 175–224 hp models generally increased. were fairly stable. For the most part, prices for Of all of the size classes considered, tractors the 225–274 hp range hovered around 97% of with less than 25 PTO hp exhibited the their indexed values, although prices did fall as

KEY TAKEAWAYS

35 | www.cedmag.com | Construction Equipment Distribution | March 2016

low as 87% of the initial value in June of 2015. Year over year, prices in July 2014 fell 8% but rose 5% for July of 2015 However, they are still 3% lower than in July 2013. The pattern was similar for tractors with over 275 hp. Prices remained within 84% to 110% of initial values and were up 2% year over year. Strong prices for small and mid-range tractors come as no surprise given the state of the livestock, hay and forage sectors, but stable prices for the more powerful tractors seem at odds with the downturn in industries requiring high horsepower equipment. This does not consider average age, usage and condition of used tractors on the market. Looking at age specifically reveals that the majority of the most powerful tractors on the market were manufactured within the last five years, most commonly model years 2012 or 2013 depending on size class. During the 2-year window our data covers, average unit age for tractors in these size classes fell 12%, indicating a greater proportion of late-model tractors on the market. Despite the increase in newer tractors available, average prices held firm, evidence that sellers are having trouble reducing stock of newer tractors. Rebecca Fowler Industry Analyst EquipmentWatch.com

>> A CLOSER LOOK: PRISIM

IMPROVE

than five years, said Rebecca D. Lintow of course for other heavy equipment dealAED. erships. The content of the class includes To ensure the training was the perfect four primary elements, which are delivered fit for AED members, AED members who through lectures and by participants who participated in the initial training sessions operate a simulated dealership in competing more than five years ago also participated teams during the class. The goals of the trainin focus groups to ensure the simulations ing are simple: to develop business acumen, mirrored the operations of a true dealership. practice strategic thinking, better understand Phil Riggs of AED said PriSim’s training financial statements and ratios and build “caters to the equipment distribution busileadership and teamwork. ness model, pulling figures in from AED’s PriSim’s training is not limited to the annual Cost of Doing Business report, which heavy equipment industry but offers training contains operating figures from more than for other industries, including motorcycle 100 reporting dealerships. You are essentially dealerships, insurance carriers and agengiven a fresh dealership and you make decicies, aerospace and defense companies, sions on what type of business you are going manufacturing and high-tech companies, to turn it in to. This includes market segmen- mortgage banking companies and consulting tation, degree of emphasis place on service firms. “We continue to grow our portfolio of department operations and new, used and simulations for a broad range of industries,” rental fleet inventory levels.” Riggs also said Semb said. “Our goal and focus in 2016 is to the computerized business simulations help keep doing that but even better.” companies improve critical business skills. This year, Hernandez said his focus is “They take you out of your ‘silo’ and expose to create new simulations which are better you to decisions made in other parts of the customized for the client’s needs, and share business that you don’t normally get to see on that knowledge online. “Today’s business a daily basis and show you how it impacts the environment in the U.S. and worldwide make rest of the organization’s profit it challenging for any company.” “Nothing centers.” can be taken for granted. But, we always seek “To those dealerships that to deeply understand our customers’ needs send more than one person, and wants as the foundation of what we do. the simulation provides We believe this will continue to keep PriSim them a way to better relevant far into the future.” understand how the For more information about PriSim, Business departments could to view simulations or to contact the work together,” company, log on to www.prisim.com. War Games Lintow said. PriSim 1. Improve Business also offers a similar Acumen version of the

PriSim

2. Practice Strategic Thinking And Business Planning

3. Increase Financial Understanding And Confidence 4. Build Leadership And Teamwork

36 | www.cedmag.com | Construction Equipment Distribution | March 2016

Background image by Freepik

PriSim Business War Games is changing the way business owners train their employees and ultimately grow their businesses. The Chicago-based company combines classroom lectures and computerized business simulations, which allow key staff to improve critical business skills, test new ideas and practice business strategies in a “risk-free” environment, according to the company’s PriSim Instructor and Business Partner, David Semb. “It’s a hands-on learning experience,” said PriSim’s Vice President of Programming Max Hernandez. “Ninety-eight percent of our training is done live with clients in a conference room. The sessions are very interactive.” While the live sessions are generally held for larger companies, smaller businesses can also reap the benefits of PriSim’s knowledge through online simulated training sessions. “We do have the virtual option,” Hernandez said. “We tailor these (sessions) for dealerships who are smaller or in remote areas. It’s available to everyone.” The courses include videos so employees can view the information at their leisure and learn at their own pace. The company also trains employees who can then bring PriSim’s knowledge back to other employees at their companies through a “train-the-trainer” program. “The depth, complexity, realism and relevance of our simulations and how we deliver them in our classes is a key strength, as are our instructors,” Hernandez said. The brainchild behind PriSim is Jeff Lefebvre, who founded the company in 1997. The private company employs five people and has offices in Grayslake, Chicago and downtown Chicago. Just recently, Semb and Hernandez conducted its annual training sessions with Associated Equipment Distributors’ members, Semb said. The program offered to AED members is customized to the industry of heavy equipment distribution and has been available to AED members for more

Your Business Performance Through Business S i m u l a t i o n s

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2/10/2016 4:41:38 PM

>> CUSTOMER’S CORNER

MATT FRANZEL

Sizing Up Hydraulic Breakers

Here’s an inside look at the factors to consider before choosing which hydraulic breaker brands to offer. Out of all the tools and machines that make construction and demolition possible, one of the most commonly used is the hydraulic breaker. That’s because hydraulic breakers have a high level of breaking forces to power through materials quickly. They also require minimal routine maintenance, which makes them a cost effective option with minimal downtime. But with an ever-growing variety of manufacturers, sizes and models to choose from, narrowing down the decision can be overwhelming with stats and speculation. That’s why it’s important to know what factors you should consider before choosing which hydraulic breaker brands to offer your customers.

Research Before You Buy

Manufacturers are a good resource for finding the best models for each type of carrier, whether it’s speaking with a product manager or reviewing their website or brochures. Some manufactures are making information about their products even more accessible with apps users can view on the go from their smartphone or tablet. These resources have specifications and information about various sizes of breakers to help gauge which model is best. This can be very helpful, particularly since there are a large variety of carrier brands on the market that might have their own requirement to keep in mind. Familiarizing yourself with what to look for in a breaker can streamline the selection process and help you best outfit your customers. The best places to look for breaker information are in the manufacturer’s brochure, website, owner’s manual or catalogue. First, it’s important to match the breaker to the right size carrier. A breaker that is too big for the carrier can create unsafe working conditions and cause excessive wear to the carrier. An oversized breaker also transmits energy in two directions, toward the material and through the equipment. This produces wasted energy and can also damage the carrier. But using a breaker that’s too small puts excessive force on the tool steel, which transmits percussive energy from the breaker to the material. Using breakers that are too small also can damage mounting adapters and internal components, which considerably decreases their life. Selecting the Right Breaker Output Once you match a breaker to the carrier’s capacity, check its output to ensure it has enough power to effectively and efficiently break through the material it’s being used on. Output power is typically measured in foot-pounds, but keep in mind that foot-pound classes are a generalization and are not based on any physical test. 38 | www.cedmag.com | Construction Equipment Distribution | March 2016

Often the breaker’s output is documented in one of two ways: as the manufacturer’s calculated foot-pound class or as an Association of Equipment Manufacturers’ (AEM) measured foot-pound rating. Foot-pound class ratings can be deceiving since they are loosely based on the service weight of the breaker and not the result of any physical test. The AEM rating, on the other hand, measures the force a breaker exerts in a single blow through repeatable and certified testing methods. The AEM rating, which was developed by the Mounted Breaker Manufacturers Bureau, makes it easier to compare breaker models by reviewing true figures collected during an actual test procedure. For instance, three breaker manufacturers might all claim their breakers belong in a 1,000-pound breaker class, but AEM testing standards could reveal all three actually have less foot-pound impact. You can tell if a breaker has been AEM tested if a manufacturer provides a disclosure statement or if the breaker is labeled with an AEM Tool Energy seal. If you cannot find this information, contact the manufacturer. In addition to output energy specifications, manufacturers often supply estimates for production rates on different types of aggregate material. It’s important to make sure you get the right measurements to make the best decision. Mounting Package to Meet Your Needs In addition to weight and output power, look at the breaker’s mounting package. Two things are crucial for mounting a breaker to a carrier: a hydraulic installation kit and mounting components. Breakers need hydraulic plumbing with unidirectional flow to move oil from the carrier to the breaker and back again. A one-way flow hydraulic kit is sufficient enough to power the breaker as long as the components are sized to properly handle the required flows and pressures. But you might consider a bidirectional flow hydraulic kit if the carrier will be used with other attachments that require two-way flow. Check with your breaker manufacturer to determine which hydraulic package best fits your current and future needs. Hydraulic flow and pressure specifications also need to be considered when pairing a breaker to a hydraulic system. If the carrier cannot provide enough flow at the right pressure, the breaker won’t perform with maximum output, which lowers productivity and can damage the breaker. Additionally, a breaker receiving too much flow can wear quickly, which reduces its service life. For the best results, you need to follow the hydraulic breaker specifications found in owner’s manuals, catalogues and brochures. You’ll find out if a breaker has additional systems that might require additional servicing. For instance, some breakers feature nitrogen gas assist systems that work with the hydraulic oil to accelerate the breaker’s piston. The nitrogen system’s specifications need to be followed for consistent breaker power output. As for mounting components, brackets or pin and bushing kits are commonly required to attach the breaker to the carrier. Typically they are bolted to the top of a breaker and are configured to match a specific carrier. Some manufacturers make universal mounting

brackets that can accommodate two or three different sizes of carriers. With the adjustable pins, bushings or other components inside these universal brackets, the breaker can fit a range of carriers. However, varying distances between pin centers can complicate hookups to quick coupling systems. In addition, loose components, such as spacers, can become lost when the breaker is not in use and detached from the carrier. Some carriers are equipped with quick-coupling systems, which require a breaker’s mounting interface to be configured like the carrier’s original attachment. Some manufacturers produce top-mount brackets that pair extremely well with couplers. This allows an operator to use the original bucket pins from the carrier to attach the breaker and eliminates the need for new pins. This pairing also ensures a fast pick up with the quick coupler.

Manufacturer Selection

Reviewing manufacturer and after-sales support also can help narrow down breaker options. Some manufacturers don’t offer local resources or have the capabilities to come visit a jobsite when needed. Many manufacturers, however, offer onsite or factory training on selecting, installing, using and maintaining breakers. This ensures dealers and their customers can properly match the breaker to customers’ needs and requirements. It also minimizes the risk of users operating the breaker improperly, which means less maintenance and fewer repairs.

Tool Varieties

It’s also a good idea to check which breaker tools are available through the manufacturer. Offering multiple tools helps serve a wide range of customers. The three must-haves for operators who do a considerable amount of demolition are the blunt, chisel and moil. The blunt point features a flat face with more surface area to deliver more impact when breaking slab concrete. The moil point is shaped like a pencil and is ideal for breaking hard concrete reinforced with rebar and demolishing brickwork. Operators can place the point’s narrow tip into cracks and

The 30-Second Rule Everyone loves the David and Goliath story; however, that does not apply to breakers and construction materials. Using a breaker that’s too small for the material can cause the unit and hydraulic oil to overheat, which can lead to melted tool steel, damage to seals and even damage to the carrier itself. Here’s a good rule of thumb: if an operator is using a breaker in one spot for more than 30 seconds without seeing penetration, dust, cracks or fissures, the breaker is too small. They either need to reposition the carrier to the material or use a larger breaker. Keep this rule in mind when renting breakers, and you’ll save on maintenance and replacement costs and prolong the life of your breakers.

between the rebar to quickly separate material. A chisel point looks similar to a screwdriver and will give you the best splitting action. It’s available in standard and wide widths. Keep in mind not all tool steel can be used with any brand of breaker. Oftentimes, using non-original equipment manufacturer tool steel can damage the percussive piston in the breaker, seize into the wear bushings or cause excessive wear.

Extending the Life of Your Breaker

Regular breaker maintenance is necessary to not only extend the life of the breaker but also to keep minor inconveniences from turning into expensive problems. That’s why it’s important to communicate to contractors the routine maintenance that needs to be done on the breakers. Some manufacturers recommend operators inspect breakers daily to check grease levels and make sure there are no worn or damaged parts or hydraulic leaks. Breakers need to be lubricated with adequate amounts of grease to keep the tool bushing area clear and reduce friction, and the manufacturer’s recommendations should always be followed. For example, adding grease before properly positioning the breaker can lead to seal damage or even catastrophic failure. And too little grease could cause the bushings to overheat, seize and damage tools. Also, manufacturers advise using high-moly grease that withstands working temperatures greater than 500 degrees Fahrenheit. Some

breakers have automatic lube systems that manage grease levels, but those systems still need inspections to ensure there is adequate grease in their vessels. Shiny marks on the tool are a good indication the breaker is not properly lubricated. It’s also important to inspect the unit’s retaining pins. Look for oil leaks and any loose or damaged bolts, which can quickly turn a minor problem into a major issue. For instance, a faulty bolt might cause protective casings to come apart, which will expose crucial parts to incoming debris or workers to dangerous conditions. Maintaining a breaker is mandatory regardless of brand or size, but being able to perform that maintenance quickly and easily requires some careful consideration. Some breakers feature box-style or solidbody mounting systems, which eliminate the need for removing external fasteners to access components, including wear bushings and seals. This contributes to expedited turnaround times for maintenance and, as a result, higher utilization rates.

Final Thoughts

Sizing a breaker is not only important to the efficiency and productivity of your customers but also to your business. Choosing models with fast and easy maintenance and working with manufacturers that offer after-sales support is all part of the breaker selection package. It all means being an expert in your field, so your customers can be experts in theirs.

MATT FRANZEL, the product manager for hydraulic attachments at Atlas Copco Construction Equipment, has more than 15 years of industry experience. He is based in Southern California. 39 | www.cedmag.com | Construction Equipment Distribution | March 2016

AED’s Summit & Construction Dealer Expo (CONDEX) Draws Record Attendance Equipment distributors and other industry executives gathered in Washington D.C., in January for an unforgettable experience.

More than 1500 attendees converged converged Jan. 19-22 at the Gaylord National Resort & Convention Center in Washington D.C. for AED’s Summit & Construction Dealer Expo (CONDEX). Attendees gathered knowledge from industry leaders, heard from speakers with motivating stories and shared their company’s vision for the future. The event also provided the opportunity to build trust amongst companies involved in the distribution, rental and support of equipment used in construction, mining, forestry, power generation, agriculture and industrial applications. As the only show in the industry dedicated to equipment distributors, top executives gathered to experience one of the show’s highlighted speakers: Former President George W. Bush. Thomas “Tom” Casey, Vice President of General Manager Americas Region Construction, Transportation & Industrial Global Business Unit at DLL and AED member, said he has been attending Summit for 18 years, but this year was the most inspirational of any he has previously attended. The words of George W. Bush caused him to reflect on his own actions as a successful North American dealer as he confesses: “The conversation with former President George W. Bush had the greatest personal impact on me. I was touched by his reflection of the events on 9/11, and how he chose to react to the tragedy. He shared that at the moment the second tower was struck, he knew he would need to demonstrate strength through his actions and a sense of calmness through his words in order to assure the country that we would be safe. As a leader of DLL, this prompted me to reflect on how I have reacted during times of conflict and how I should consider reacting and presenting myself to portray strength and composure to the members of DLL.” DLL, a platinum sponsor for George W. Bush, is a global provider of asset-based

Chairman Whit Perryman addresses a record crowd. financial solutions that conducts business in nine industries including: food, agriculture, healthcare, clean technology, office technology, construction, transportation, industrial and automotive (according to its website, www.dllgroup.com). “DLL has been a supporter of AED and its members throughout our nearly 20 years in the construction industry,” Casey said. “Our sponsorship of the Summit was a sign of our commitment to the industry and our alignment with the Association’s key areas of focus, including lobbying efforts at the government level and the development of future industry leaders. With the regulatory environment becoming more and more complicated and intrusive, we are seeing many long-term lenders withdraw from the industry. DLL is here to stay – by working together and adapting to the needs of our customers, we can all thrive.” AED members also heard from a host of other speakers, including Kevin Lacz, a former Navy sniper, preacher and combat medic who served in Iraq with American Sniper Chris Kyle. He shared his journey from borderline college dropout to commended U.S. Navy SEAL. In addition, Mark King, the president of Adidas Group North America and

40 | www.cedmag.com | Construction Equipment Distribution | March 2016

chairman of the TaylorMade Golf Company, discussed his experiences as a sales leader who wasn’t fully prepared for the daily battles of leading a global company in a tough market. He revealed how he mastered his skills as a sales professional and how he acquired additional skills to successfully refresh and grow TaylorMade into a market leader. While the impressive list of speakers drew hundreds of AED members to Summit, many AED members said their main goal was to connect with U.S. and Canadian dealers in one location. “It’s a chance to renew a lot of contacts with people you’ve met over the years and a chance to meet new contacts,” said AED member and Ropar North America Regional Sales Manager Mike Kohler. Ironically, Kohler also talked with AED members about his family’s connection to 41st U.S. President, George H. W. Bush. During the Summit, Kohler’s spoke with members about his father, Don Kohler, who served in the U.S. Navy and saved the life of the future president George H. W. Bush when his plane was shot down during a mission over the Pacific Ocean. Tim Kubista of Diamond Mowers also agreed that Summit granted him an opportunity to connect with fellow industry leaders as he stated that, “It provides us with the opportunity to connect with existing customers and meet new potential customers.” AED is working hard to provide the best experience yet in Chicago for the 2017 Summit & CONDEX. With over 30% of the CONDEX show already sold and the most influential vice president in US history, Dick Cheney, secured as a keynote speaker, you do not want to miss this event! Please join us January 10-13, 2017 in Chicago, IL at the Hyatt Regency Chicago for the show of the year! To view information from the Summit and to learn more about future AED events, visit www.aednet.org.

AED Emerging Leaders Council Takes Shape as the Industry’s Peer Group for Young Leaders How many times have you heard the phrase, “We need to get our young people more involved with the industry”? AED has the solution for bringing together the next generation of executives and dealer principals in the equipment distribution industry via the Emerging Leaders Council. The Council is currently comprised of 11 young professionals in dealerships from New York to California who make the commitment to meet twice a year, once at AED’s Annual Summit and again at the Association’s Leadership Conference—this year August 23-25 in Las Vegas. The Emerging Leaders Council exists as a way for young professionals in dealerships to connect and share with their peers and provide AED with direction on how to best serve their demographic with networking and educational opportunities. During the most recent meeting at the AED Summit in January, Council members adopted an official set of bylaws and voted in a Chair, Laura Wilkas of Monroe Tractor in Rochester, NY and Vice Chair, Jamie Carson of Road Machinery in Phoenix, AZ. “My true hope is that we continue to stay in contact, learn from each other and help bring other emerging leaders—that struggle with the old guard—to AED and develop them into our future,” Carson explained. Members of the Council all agreed that they would like to grow the group’s members and develop it into the best platform in the industry for like-minded professionals to come together and learn how to overcome obstacles they face on a daily basis in their organizations. Following the meeting at Summit, Wilkas and Carson submitted a proposal to Council members, including ideas on how to move the group forward, some of which included quarterly conference calls to share solutions and propose new members and discuss the possibility of attending the Washington Fly-In as a group. “Our hope is this will be the foundation needed to achieve the goals of AED and the Emerging Leaders Council,” Wilkas said. The Emerging Leaders Council officially began at the 2015 Summit in Orlando with an exploratory meeting but has since grown into a dedicated group of individuals who are passionate about their careers in the industry. It is facilitated by AED Regional Manager, Phil Riggs. “We really have a great group of people in the Council, and I’m looking forward to seeing how they progress,” Riggs explained. “They are the future of AED and more importantly the industry, so it’s crucial that we as an Association are listening to their needs and addressing their challenges.” 41 | www.cedmag.com | Construction Equipment Distribution | March 2016

Pictured from left are newly nominated Vice Chairman Jamie Carson, Road Machinery, and Emerging Leader Chairman Laura Wilkas, Monroe Tractor.

Individuals who attended the recent Emerging Leaders Council meeting include: Laura Wilkas, Monroe Tractor; Jamie Carson, Road Machinery; Matt Abele, Abele Tractor; Kevin Barlet, Bejac Corporation; Jon Berry, Berry Tractor; Jeff Bonomo, Indy Equipment; Jonathan Campbell, Wheeler Machinery; Jack Chalupa, Arrow-West Equipment; Matt Cooper, Cooper Equipment; Bryan Heinrichs, Burris Equipment; Brad Sibert, Cisco Equipment; and Corey Vander Molen, Vermeer MidSouth. If you’re interested in joining the Emerging Leaders Council please contact Laura Wilkas at lwilkas@monroetractor.com, Jamie Carson at jcarson@roadmachinery.com, or Phil Riggs at priggs@ aednet.org.

42 | www.cedmag.com | Construction Equipment Distribution | March 2016

43 | www.cedmag.com | Construction Equipment Distribution | March 2016

KEYNOTE

2017

Dick Cheney America’s most influential vice president will speak at AED’s 2017 Summit & CONDEX. Former United States Vice President and Secretary of Defense Dick Cheney will be joining the ranks of previous noteworthy AED headliners as the 2017 Summit & CONDEX keynote speaker next January. Dick Cheney, the most influential Vice President in the history of the United States, has an impressive resume that includes tons of experience in both the political and corporate worlds. Cheney was the Secretary of Defense under U.S. President George Bush during the Persian Gulf War, which resulted in Cheney being awarded the Presidential Medal of Freedom. Spanning four decades of service to his country, Dick Cheney’s political career took off when he was 34 years old and handpicked by then-president Gerald Ford to lead the White House staff to restore the nation’s confidence while heading up his 1976 presidential campaign. In 1978, Cheney returned to Wyoming, where he was elected five times to serve as the state’s House of Representatives sole member. Throughout his time in office, he served in several leadership roles, including the House Republican’s number-two position, the minority whip. Cheney was nominated in 1989 by then-president George Bush to serve as Secretary of Defense. This nomination was unanimously confirmed by the U.S. Senate. He led America to victory in Operation Just Cause in Panama and Operation Desert Storm in the Persian Gulf. In subsequent years, Cheney often found himself as the liaison to the people, including educating the public on the War on Terror in 2001 during then-president George W. Bush’s term. However, before he continued influencing the Bush presidencies as George W. Bush’s top advisor, Cheney worked in the private sector as Chairman and CEO of Fortune 500 company Halliburton from the mid-1990s until his vice presidential campaign was underway in 2000. Cheney’s effortless ability to move between the political world and the business world—in some of the most important roles each has to offer—shows his resilience, fortitude, intelligence and strength. His successful political and business experiences, coupled with his home life with his wife, Lynne, his two daughters and seven grandchildren, led him to publish a memoir in 2011 titled In My Time. Cheney’s second book, Heart: An American Medical Odyssey, was published in 2013. Cheney’s knowledge and qualifications in times of crisis 44 | www.cedmag.com | Construction Equipment Distribution | March 2016

throughout America’s history, coupled with his keen ability to run one of the largest corporations in the United States, make him the perfect keynote speaker for AED’s Summit & CONDEX. AED’s Summit 2016 in Washington, D.C. was a huge success that featured impressive headliners such as former president George W. Bush; Mark King, president of Adidas Group North America and chairman of the TaylorMade Golf Company; former Navy SEAL sniper Kevin Lacz; and Denis Stevens, Deputy Head of Mission, Canada’s Embassy to the United States of America. The AED Summit & CONDEX includes opportunities to put your brands in the spotlight, such as exhibits, suites, event sponsorships and speaker sponsorships. Introduce your company, products or services to potential new distributors, enhance your brand image or identity, improve your competitive position in the marketplace, network with your current distributors or introduce new projects or services to existing distributors. Strictly dedicated to dealers, this show is all about focusing on dealer partners and prospects—in fact, it is the industry’s only show dedicated strictly to equipment distribution—while also offering attendees the opportunity to experience one of the world’s greatest politicians and businessmen, Dick Cheney, as the keynote speaker. AED’s next Summit & CONDEX will take place from January 8-12, 2017 in Chicago, IL at the Hyatt Regency Chicago, 151 E. Upper Wacker Drive. To review information from the 2016 show, visit www.aedsummit.com.

CHICAGO, ILLINOIS

JANUARY 8–12, 2017

Whether you’ve been serving the North American equipment market for decades or just entering the industry, AED Summit & Construction Dealer Expo (CONDEX) is the show to connect with industry-peers, attend dealer-specific education courses and view new product lines.

MARK YOUR CALENDAR JANUARY 10-13, 2017 HYATT REGENCY CHICAGO

CHICAGO Register Online at bit.ly/aedevents Summit17ad.indd 1

2/25/2016 11:35:00 AM

All sponsors at Summit & CONDEX play an integral role in our annual event. Besides helping with business, social and educational programs, our sponsors investment in our association assist with many of the other activities and elements that contribute to making our event a memorable one. On behalf of AED, the organizing committee and the industry; we would like to thank all of our sponsors for their contribution to a successful 2016 Summit & CONDEX.

Title Sponsor:

General Sponsors:

Official Sponsors:

2016 Dealer Meetings:

Thank You to Our 2016 A Conversation with George W. Bush Sponsors: Platinum Sponsor:

Gold Sponsor:

Silver Sponsors:

Bronze Sponsors:

47 | www.cedmag.com | Construction Equipment Distribution | March 2016

Ransome CAT 100 AT

President Kristin Bromley Fitzgerald brings her great-grandfather’s company into its 100th year with vision and dedication. This year, the 100th anniversary of Ransome CAT, will bring a celebration of a four-generation tradition of providing construction equipment to customers in Philadelphia and surrounding areas. Company President Kristin Bromley Fitzgerald continues her great-grandfather’s legacy, one founded in 1916 as Giles and Ransome, Inc., with emphasis on providing superior customer service and product support capabilities. “I always knew I wanted to be a part of the family business,” Fitzgerald said. “It was a legacy I was proud of and wanted to be a part of. I loved the business, the employees and the CAT brand.” “First and foremost, she has vision for the company,” said General Manager of Construction Services Sebastian Haas, who has worked closely with Fitzgerald for five years. “We’re making sure we’re providing nothing but the best customer service,” he said. “She understands our customer’s businesses and what they need to be successful.” For Fitzgerald, the need for understanding her customers’ business begins with her employees, many of whom have worked at the business for years. “Our values of mutual respect, integrity, teamwork, empowerment, excellence and commitment are our foundation which helps us achieve our Corporate Vision to “Be The Best” . . . understand our customers’ business to unleash our knowledge and capabilities to help them become more competitive,” Fitzgerald said. “She’s very engaged (with employees) and is driving our 100 year culture to be on the forefront of technology,” said Equipment Manager Jordan Dripps, who oversees much of the new technology and fleet management at Ransome CAT. The company’s humble beginnings were initiated by Percy Allan Ransome Sr. and Arthur Giles, who sold concrete equipment in Philadelphia until 1932 when the business morphed into a Caterpillar dealer. After several moves, transitions and expansions, the company, which is

now headquartered in Bensalem, PA, is the exclusive dealer of Caterpillar equipment in Southeastern Pennsylvania, Southern New Jersey and Northern Delaware. With three divisions, Ransome CAT’s customer base is diverse and revolves around the region’s key industries: construction, power and marine. “Construction equipment is the bread and butter of what CAT does,” said Fitzgerald, whose business serves mainly contractors and highway builders. In addition to equipment sales, Ransome CAT’s rental division is has a long-standing K. Bromley Fitzgerald reputation within the construction industry. With the construction side of the business booming, the company’s newest niche is electric power generation, which provides power to local hospitals, universities, casinos, data centers, pharmaceutical companies, and more. Located on the Eastern seaboard, Ransome CAT supplies engines – from fishing to water pumps – to the marine industry, in addition to providing construction equipment for ongoing beach replenishment projects. The company stays abreast of the current trends in all areas of its operations with nine locations, a team of 250 Caterpillar-certified technicians and more than 500 employees.

48 | www.cedmag.com | Construction Equipment Distribution | March 2016

One hundred years after opening its doors, the company continues to capitalize on new ways to remain competitive in a sometimes volatile market. For example, Ransome CAT is assimilating state-of-the-art GPS technology into new equipment, retrofitting older Caterpillar equipment with GPS gear and helping customers maximize the benefits of the newer technology. “We are always improving our technical capability to increase speed, turnaround, and ultimately profitability for our customers,” Fitzgerald said. Haas said the company is also currently working to install equipment on each Caterpillar machine that will provide a “readout on the health of the machine.” For example, the readouts can provide fuel burn and idle time as well as indicators of wear and mechanical issues. The new equipment can also detect how operators handle the machines and what preventative maintenance is required before problems arise.

“We’re providing options for our customers to get the most value out of their equipment,” Haas said. “Partnering with our customers is our number one priority. Every time their equipment is down, they are losing money.” “We want to be the most dependable equipment dealer out there,” he said. To learn more about Ransome CAT, log on to www.ransome.com.

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>> INDUSTRY INSIGHT

RITCHIE BROS.

Five Tips To Protect You When Buying Used Heavy Equipment And Trucks

Buyer beware (or how to reduce the risk when buying used equipment).

With a little extra effort on a buyer’s part, the most common used equipment-buying pitfalls can be avoided.

Despite the massive choice of used heavy equipment and trucks for sale, and the economic advantages of buying used, some business owners shy away from this money-saving option. They fear the risk may outweigh the reward. But with a little extra effort on a buyer’s part, the most common used equipment buying pitfalls can be avoided. Here are five ways you can take the risk out of buying used equipment and trucks at live auctions, via online auction marketplaces, privately or through a dealer. 1. Buy equipment from a reputable seller Spend a few minutes reading online reviews, testimonials and business reports to get a good sense of whether you’re buying from a legitimate and reputable seller. Check the following: ▶ Public company records Choose well-established companies with a long history and large customer base. Publicly-traded companies are required to publish their financial statements, so you can easily find out if the company is stable and likely to be in business in the long term. ▶ Online reviews Google and Facebook are good places to find

50 | www.cedmag.com | Construction Equipment Distribution | March 2016

unbiased customer reviews. Once published, Google and Facebook reviews can’t be removed or edited by the page owner. ▶ Customer testimonials Testimonials show that other equipment buyers are more than willing to endorse the seller. If none are available on a company’s website, call the company and ask if they can provide you with the contact information for a few recent customers. ▶ Better Business Bureau Visit the Better Business Bureau in your area (bbb.org in the United States and Canada) and search for the business you’re considering buying used equipment from. The Better Business Bureau maintains a list of businesses with contact information and reported consumer complaints. 2. Do a background check Before purchasing used equipment or trucks, ensure the seller is the legal owner or has the legal authority to sell on the owner’s behalf. Two things to beware of: stolen equipment and liens. If you’re buying from a business, ask if the equipment is owned outright by the seller. If they can’t confirm, do your own check. If you’re buying from a private seller, ask them to provide the original sales invoice for the equipment and check that the name on the sales invoice matches the seller’s name. You can also check ownership using the equipment’s serial number or the truck’s VIN. Ask your local police department or a private service to run the serial number or VIN to see if the item has been reported stolen. For a fee, you can request an equipment check from an organization in your area that tracks stolen equipment (for example, the National Equipment Register’s IRONcheck: ner.net/ironcheck). If you plan to finance your purchase, most financing companies will do a thorough check on the equipment’s background history, which includes checking if the item has been reported stolen.

3. Ensure clear title on equipment If you mistakenly purchase equipment that does not have a clear title or has a lien applied (i.e. the seller has not paid in full money borrowed from a finance company or bank to purchase the item), you may have to forfeit ownership to the lending institution. 4. Inspect equipment before you buy Most used equipment is sold as-is, where-is. If possible, test and inspect used equipment before you buy. If you don’t have considerable heavy equipment knowledge, have a qualified mechanic or experienced operator carry out both a physical and functional inspection on your behalf. If you’re buying online, look for websites that provide detailed equipment information and photos. Scrutinize pictures carefully and don’t be afraid to email any questions you have to the seller or to ask for photos of the equipment from different viewpoints; for example, a photo of the undercarriage, engine compartments

or hours meter. Ask to see service or maintenance records. And if you’re buying sight unseen, confirm that the item you collect matches the description that was advertised—before you drive away. 5. Leave a payment trail If you are making a purchase online or from a private seller, make sure you have some kind of recourse if the equipment arrives in a Photos courtesy of Ritchie Bros. condition that differs from the image presented online or if the equipment doesn’t arrive at all. Check the terms of any online transaction before you buy and look for websites that have a secure escrow process. With each purchase you make, ask for a receipt, invoice or other documentation naming you as the owner of the equipment. If you are buying from a private seller, try to avoid paying in cash. Pay by certified check and leave a paper trail that can help prove you paid for the item.

RITCHIE BROS. is the world’s largest industrial auctioneer. Learn more about buying equipment at Ritchie Bros. live unreserved auctions or about buying equipment at EquipmentOne online auctions. 51 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> LOOKING AHEAD

REX A. COLLINS

Your Dealership: What Is It Worth?

There are many factors that contribute to or detract from the value of your dealership.

This is the first in a two-part series. Next month: how to establish the dealership’s actual purchase price. For a fulllength version of this article, email Rex Collins at rcollins@ hbkcpa.com.

Here’s something you can count on: you won’t own your dealership forever. Your business will be sold or transferred, in whole or part, voluntarily or involuntarily. Whatever the reason, most often the transaction involving the sale will be among the biggest and most important transactions of your business and personal life. So, key to planning your future is doing whatever you can, on an ongoing basis, to ensure you maximize your business’s value, what it’s worth to someone else. Maximizing the value of your dealership starts with knowing what contributes to and what detracts from its value and understanding how valuation works and the circumstances or factors that impact value.

It’s the economy . . .

Regardless of what you’re selling or where you’re selling it, the overall economy will always have a major impact on what you can get for your dealership. Today, about 70 percent of our nation’s economy is considered strong. Unfortunately, business equipment spending falls squarely in the other 30 percent, the weaker part of the current U.S. economy. A few items of interest: ▶ The call for companies to return profits to shareholders, demands for increased utilization and productivity, and technological advances have combined to curb equipment purchases. ▶ Economists expect oil and gas industry spending to decline for at least the next 18 months. ▶ Lower commodity prices are driving down prices for agricultural equipment in the U.S. and worldwide.

Concepts related to value

Circumstances play an important role in determining value. For example, some shares of ownership are more valuable than others. That is, a minority share of the business will be of less value, on a per share basis, than shares that give the buyer a majority interest. Control demands a premium over just getting into the game. As mentioned, the economic environment plays an important role. To a great extent, what a business is worth depends on the economic climate, local as well as national.

Dealership values are also subject to the business’s marketability, which is impacted by such things as location and competition and the buyer’s ability to win approval of the manufacturer or franchisor, which requires of the buyer, among other things, substantial capital as well as a clean record and good reputation.

Determining factors

A number of factors are driving the value of equipment dealerships, including: ▶ Inventory – Inventory levels are driving dealership prices more today than they have for several decades. In particular, used equipment on the ground impacts value substantially. ▶ Revenue sources – A dealership that has several sources of revenue is of greater value than one dependent on the rise and fall of a particular industry. So too is the dealer generating profit from repairs and parts, and selling finance, insurance and other ancillary products. ▶ Brand – The rights to sell a market-leading product or products enhances value substantially. ▶ Real estate – The dealership must be in the right location and occupy adequate facilities from which to operate. On the other hand, certain factors will drive dealership values lower: ▶ Small customer base – A concentration of business with one or few customers exposes the dealership to greater risk. ▶ Owner dominated – The value of a dealership heavily dependent on the owner for customer relationships and management will be discounted. ▶ Poor financial performance – Financial performance comparing unfavorably to “best in class” dealers reduces value. ▶ Poor outlook – Where the immediate future of the industry or industries the business serves, or the outlook for the economy, is poor, sales prices will be lower. Because it is more than likely that some day you will sell or transfer your business, it is critical to address the factors you can proactively to ensure they add to rather than detract from the value of your dealership.

REX COLLINS is a Principal at HBK CPAs and Consultants. He directs HBK’s National Dealership Industry Group, which provides tax, accounting and operational consulting exclusively to dealers. Rex can be reached by email at rcollins@hbkcpa.com or by phone at 317-504-7900. 52 | www.cedmag.com | Construction Equipment Distribution | March 2016

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>> MEMBER RECOGNITION

Brief Encounter May Have Changed The Course of History AED member Mike Kohler explains how his father may well have changed the course of history.

A brief encounter with the 41st President of the United States, George George H. W. Bush served as U.S. president from 1989 to 1993 and H. W. Bush, brought decades of history—and stories about his heroic as the 43rd vice president of the United States from 1981 to 1989. A father—to fruition for Regional Sales Manager of Ropar North America Republican, he previously served as a congressman, an ambassador, Mike Kohler during the Associated Equipment Distributors annual and Director of the Central Intelligence Agency. He is the oldest living Summit Jan. 19-22 at the Gaylord National Resort & Convention Center former president and vice president, in addition to being the last living in Washington, D.C. former president who is a veteran of World War II. “It was just so nice to be able to tie some history together,” said Kohler, Bush is often referred to as “Bush 41,” “Bush the Elder,” or “George who met George W Bush, while attending a special VIP reception prior Bush Sr.,” to distinguish him from his son, the 43rd president of the to A Conversation with George W. Bush. “With something that happened United States. so long ago, it was nice to pull it all together.” During the Summit, Kohler spoke with attendees about his father, Don Kohler, a Navy man who served in WWII and saved the life of the future President George H. W. Bush, when his plane was shot down during a mission over the Pacific. Following the attack, Don Kohler, a torpedo man aboard the U.S.S. Finback, a Gato-class submarine, reached into the icy water and “grabbed him on deck and saved his life,” Kohler said. The incident was never mentioned to the public until Bush ran for president in the late 1980s. “We’ve always liked the Bush family period, so this made it nice to be able to tie that piece of history to our family,” Kohler said. “You never know how things may have worked out. We may not have had the second president (George W. Bush) had it not been for my father’s actions.” As the two made eye contact and shared just a brief moment in a crowded room, the appreciation from the former president was evident, Kohler said. “He Keep Your Cool with Polar Cab by Webasto remembers it very well,” Kohler said. “He told me, ‘If that wouldn’t have happened, I wouldn’t be here.’” Webasto’s Polar Cab engine-off cabin cooling systems ensure operators George H. W. Bush enlisted in the U.S. Navy on his never lose their cool again. Webasto’s exclusive thermal storage technology and 18th birthday, becoming the youngest pilot in the Navy battery driven electric cabin cooling system provide operator comfort without the during World War II, according to www.biography. need to idle the engine. Extend DPF service life, reduce engine hours, increase com. He served as a combat pilot in the war flying productivity and eliminate unnecessary idling with Polar Cab by Webasto. carrier-based torpedo bomber aircraft and completed 58 combat missions. His brush with death occurred Polar Cab TS Polar Cab ES when his plane was hit during a bombing run in the n Cold Storage Technology with n Battery driven electric engine-off Pacific. After managing to escape the burning aircraft, patented graphite matrix cooling system he was rescued by Don Kohler who was aboard the n Cooling capacity 4,450 btu/h (1.3 kW) n Cooling capacity 7,000 btu/h (2kW) U.S.S. Finback. n Reduces engine idling and associated n Floor mounted and ceiling mounted While Kohler’s father passed away 10 years ago, DPF maintenance evaporator options Kohler shared the moment with his mother, Alice n No additional batteries required Kohler, who he said was “real excited” for her son to have the opportunity to meet the former president and mention the experience that ultimately changed the course of history. “He’s a very nice man, very personable,” Kohler said. While his mother did not attend the meeting, both Don and Alice Kohler, who were recognized with plaques following George H. W. Bush’s election to the presidency, attended his inauguration Dealer Inquiries: in 1989, Kohler said. “It was nice to close those little kurt.vanportfliet@webasto.com | PolarCabCooling.com connection gaps in history,” Kohler said. 54 | www.cedmag.com | Construction Equipment Distribution | March 2016

advertisers’ index AED Business Services.................................................. 33

EPG Insurance................................................ Back cover

AED Fly-In 2017.............................................................. 6

Leading Edge .............................................................. 11

AED Summit 2017........................................................ 45

Prinoth......................................................................... 13

AED Symposium........................................................... 19

PriSim........................................................................... 37

Amtrust ......................................................... Inside front

Screen Machine............................................................ 31

Briggs & Stratton Corp................................................. 17

Sentry Insurance.....................................................Inside back

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

UPG.............................................................................. 49

DIS............................................................................... 55

Webasto ...................................................................... 54

e-Emphasys ................................................................... 1

XAPT ........................................................................... 53

As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2016 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-7655) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523

55 | www.cedmag.com | Construction Equipment Distribution | March 2016

>> RISK MANAGEMENT

ERIC STILES

Sentry Insurance Provides Guidance With a Monthly Q&A For the Construction Equipment Industry

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

Q: What do I absolutely need to do to prevent vehicle accidents from hurting our dealership? A: Driver selection is an essential part of avoiding accidents.

Safer drivers have fewer accidents

By definition, safer drivers will get into fewer accidents. From your dealership’s perspective, there are two additional factors: The accidents safer drivers get into will likely be, 1) less severe, and 2) more likely to be someone else’s fault. Both of these factors will tend to mitigate the cost to your dealership. Conversely, unsafe drivers represent an increased, ongoing exposure to more and greater losses. Having a formal, written hiring policy that specifically targets problem drivers for exclusion in your hiring process may help protect you from loss due to accidents.

Choosing better drivers

It sounds simple: Hire better drivers and don’t hire problem drivers. Making it happen requires having a plan in place. Follow these

strategies to help protect your dealership from the potential risk of negligent entrustment: ▶ Make it a practice to review each driver’s MVR as a condition of employment. ▶ Use pre-set criteria to determine what is acceptable. Use concrete numbers, setting numeric limits for how many accidents and/or violations it takes to disqualify a hire. ▶ Train new drivers on safe driving practices for the specific type of vehicle they’ll operate. ▶ Have a written fleet safety policy. ▶ Distribute a copy of the dealership’s fleet safety policy to new drivers. ▶ Require new hires to sign a commitment statement to safe driving practices. ▶ Have potential employees complete a ride along or driving test with a current employee to observe their driving skills. ▶ Require new drivers to attend periodic safety meetings. Driver selection is the first step to reducing your exposure to negligent entrustment. Reaffirm your commitment to safety with regular reviews, training and support.

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.

56 | www.cedmag.com | Construction Equipment Distribution | March 2016

At any one moment, approximately

660,000 DRIVERS

are using mobile devices on the road.

Texting while driving makes a driver

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

TIMES

SECONDS

more likely to be involved in an accident.

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

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

Endorsed by

Sentry can help you develop this and other pro-active programs to enhance safety and manage costs. We’re more than insurance. Call 1-800-447-0633, option 1, to find out how you can get started with Sentry. This is a paid endorsement. Property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. 73-659

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