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November 2016


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


Everything you need to know to plan your best AED Summit experience, focus on your dealership and maximize your business opportunities

n Connecting Equipment Dealers connects

equipment dealers with prequalified rental customers

n Diverse Benefits Linder Industrial

Machinery Company, has found great value of being a member of AED

n Online Self-Study

The AED Foundation now offers new course that can be completed on your own time

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contents CED Magazine | November 2016

vol. 82 no. 11



The AED Foundation’s Self-Study Courses Now Online


Diverse Benefits

The AED Foundation’s Self-Study Courses Now Online: While self-study courses have always been a hallmark of AED’s offerings, the Foundation’s new and improved educational programming is better than ever.

John Coughlin, CEO and president of Linder Industrial Machinery Company, on how The AED Foundation has been an excellent learning tool and serves as a voice for the industry.


Endless Educational Opportunities

AED Summit 2017 is Filled with Endless Educational Opportunities: Take three days to focus on your business. Summit is the only event with dealer-specific education!


Exclusive Guide to Summit Everything you need to know to plan your best AED Summit experience, focus on your dealership and maximize your business opportunities.


Connecting Equipment Dealers pairs dealers with rental companies, enabling both to enhance their revenues, limit their expenses, and maximize the values of their fleets by re-renting otherwise idle equipment.

November 2016 | Construction Equipment Distribution | | 3



>> FEATURED COLUMNISTS Eric Stiles Sentry Insurance Troy Ottmer Doggett Heavy Machinery Services LLC Steve Johnson Vice President, Foundation Operations Dayna Maeder Freelance writer Heidi Bitsoli Freelance writer Ron Barlet AED Board member Ben Yates Eastern Regional Manager Christian A. Klein Vice President of Government Affairs Kimberly R. Villiers Obadal, Filler, MacLeod & Klein, P.L.C. Scott McPherson McPherson Public Affairs Group

>> ADVERTISING CONTACTS Vice President of Sales JON CRUTHERS 800-388-0650 ext. 5127 Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 5117

CED Magazine | November 2016

vol. 82 no. 11


7 >> From The President Making a difference in your dealership

20 >> Regional Report

Planting a flag in Florida for a new education program

22 >> EquipmentWatch Intelligence

This regional snapshot focuses on the eastern portion of Canada

24 >> Washington Insider

This Congress was one of the most productive in recent memory

46 >> Problem Solved

Achieve long-term growth with employee investment

54 >> Attracting Talent

Position yourself to get the best prospects in the job market

56 >> Speaking With the Speaker

AED leadership meets with House Speaker Paul Ryan

60 >> Management Development Institute

MDI is designed to improve the odds of your future success by developing your next generation talent bench

56 >> Risk Management

Lower gas prices can actually lead to more accidents

Production Manager MARTIN CABRAL 800-388-0650 ext. 5118 Since 1920 Official Publication of

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

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

4 | | Construction Equipment Distribution | November 2016

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register online

2017 summit & condex

Summit is the only place for dealer-specific education!

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

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

Focus on Your Dealership and Maximize your Business Opportunities

• Discover key issues for the construction equipment industry

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

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

Summit Keynote Presentations

Dick Cheney

Former U.S. Vice President & Secretary of Defense

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Daymond John Founder & CEO of FUBU and Investor on ABC’s Shark Tank

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

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Making A Difference in Your Dealership

With the year quickly coming to a close, now is the perfect time to reflect on your dealership while also looking to the future. Ask yourself important questions. One of the most important is How do I make a difference in my dealership? Taking those strides to make a positive difference helps your dealership grow. The end of this year and the beginning of 2017 will present some of the biggest changes that can affect your organization, so it’s important to prepare yourself and your company. The decisions you make today will impact your dealership tomorrow. With a major change in our country’s administration in 2017, we want to make sure you and your dealership’s political voice is heard. AED’s Political Action Committee (PAC) allows equipment distributors to speak with a common voice in the political process by helping to elect federal candidates who share the political goals of the equipment industry. Involvement is completely voluntary and supported by personal contributions from AED dealer members. If you are interested in learning more about AED’s PAC, I encourage you to provide solicitation consent at Attending events can also make a difference in your

dealership. Use Summit & CONDEX as the starting point for a successful year. Learn from leading subject matter experts about what the year has to offer, and attend CONDEX to see what the future of construction equipment looks like. Meet with fellow construction equipment dealers and manufacturers to discuss business solutions and plans. Make Summit & CONDEX your one-stop shop to create a successful plan for the upcoming year and beyond. If you are looking to make a difference in your dealership by way of your employees, look no further than the Management Development Institute (MDI). Having capable and prepared employees is essential to making a dealership run successfully. MDI integrates both industryspecific content and leadership soft skills to go beyond the everyday leadership course. This program will help you retain your high-potential employees while providing them with the professional development they expect. Important decisions are coming your way. Make a difference in your dealership by investing in the future in whichever way you choose. AED wants to be there to help along the way.

BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at BRIAN P. MCGUIRE AED President & CEO

ROBERT K. HENDERSON AED Executive Vice President & COO

JASON K. BLAKE AED Senior Vice President & CFO




WHIT PERRYMAN Chairman Vermeer Texas-Louisiana


WES STOWERS Vice Chairman Stowers Machinery Corp.

Florida Coast Equipment, Inc.

DIANE BENCK Senior Vice President West Side Tractor Sales Co.

Cowin Equipment Co., Inc.

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

TODD HYSTAD Vice President Vimar Equipment Ltd. 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 Chairman Vermeer MidSouth Inc.


November 2016 | Construction Equipment Distribution | | 7

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

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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

1/14/2016 2:40:14 PM

Branch Management

register online

AED Management institute development AED members asked for a program to grow the next generation of managers as equipment distribution business leaders. AED has responded with Management Development Institute (MDI), a quick-hitting, broad-based program that compares favorably with prestige leadership programs at major universities, and goes beyond them by integrating BOTH industry-specific content and leadership “soft skills.”

MDI is designed to improve the odds of your future success by developing your next generation talent bench so they can lead effectively in today’s demanding work environment, and grow to meet tomorrow’s business challenges. MDI will help you retain your talented highpotentials, who expect professional career development as part of your employment promise. Ask yourself: • Are your next-level managers able to elevate their performance and that of their teams to a higher level as your business grows? • Are your managers able to see the big picture and take on more responsibility so your business can expand through growth or acquisition? • Are you building a bench of highpotential managers who can run the business for you?


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>> AED INSIDER AED Commends Industry’s Congressional Champions With the elections swiftly approaching, AED unveiled its 2016 “Key Vote” analysis in Construction Equipment Distribution (CED) magazine’s September issue. The Association compiles the scorecard every election year to educate and inform the equipment industry about lawmakers’ support for their industry’s legislation agenda. This year’s analysis includes votes on highway, tax, energy, regulatory, and trade legislation. In the House, 52 out of 435 lawmakers


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

scored 100 percent, while 13 senators out of 100 had perfect voting records on AED’s priority issues. The Illinois and Pennsylvania congressional delegations led the way with six top performers each, followed close behind by the New York, Ohio and California delegations (five each). “Congratulations to the distinguished men and women who proved to be true champions for the construction equipment industry on Capitol Hill during the 114th congressional session,” said Brian P. Mc-

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

Guire, AED’s president and CEO. “These lawmakers represent a diverse group of states from across the country and deserve to be commended for their commitment to pro-growth policies. We look forward to expanding this list in the next Congress as AED continues to educate lawmakers about the issues important to our industry.” To read the full article and see voting records for all members of Congress, visit

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


Sen. Lamar Alexander (R-Tenn.) Sen. Kelly Ayotte (R-N.H.) Sen. Roy Blunt (R-Mo.)* Sen. Dan Coats (R-Ind.) Sen. Thad Cochran (R-Miss.) Sen. Lindsey Graham (R-S.C.)* Sen. Dean Heller (R-Nev.) Sen. John Hoeven (R-N.D.) Sen. Johnny Isakson (R-Ga.) Sen. Ron Johnson (R-Wis.) Sen. Pat Roberts (R-Kan.) Sen. Mike Rounds (R-S.D.) Sen. Roger Wicker (R-Miss.) * Indicates the lawmaker was not present for one or more AED-key votes.

House Approves WRDA Legislation Before Leaving Town Before departing Capitol Hill until after the election, the House of Representatives overwhelmingly approved legislation to authorize spending on Army Corps of Engineer construction programs, such as building, maintaining, and improving harbors, dams, locks and navigation channels. The Water Resources Development Act (WRDA) (H.R. 5303) was approved with bipartisan support, 284–141, after the bill was amended by Michigan congressional delegation members to ensure the House addressed the Flint water crisis. The final legislation includes a provision authorizing spending $170 million on infrastructure improvements in communities with public health emergencies due to contaminated drinking water. The House action came on the heels of the Senate’s passage of its WRDA bill (S. 2848) earlier in the month. The House and Senate proposals are similar, although S. 2848 provides about $270 million in funding to address drinking water emergencies and lead exposure. House and Senate leaders are now expected to commence negotiations to reconcile differences between the chambers’ WRDA proposals and produce a compromise bill during the lame duck session of Congress later this year. Before leaving Washington, lawmakers also approved a continuing resolution (CR) to avert a government shutdown. The recent agreement expires on Dec. 9, necessitating another budget battle after the elections and before the new congressional session commences. 10 | | Construction Equipment Distribution | November 2016

>> AED INSIDER Obama Administration Issues Mandatory Sick Leave Rule

"It’s time for Congress to publicly and comprehensively review our nation’s Cuba policy, which seems out of step with geopolitical realities, public opinion and America’s economic interests."

Furthering its efforts to implement its policy priorities through executive action, on Sept. 30, the Department of Labor (DOL) unveiled a final rule mandating paid sick leave for employees of federal government contractors. The mandate, which follows an executive order on the same topic issued by President Obama in Sept. 2015, will require covered federal government workers to accrue at least seven days (56 hours) annually. The rule applies only to federal contracts awarded starting Jan. 1, 2017. The business community expressed concern that the requirement will lead companies that already provide benefits to offer less generous policies and that the new federal regulation adds another layer to a complex maze of state and local laws on the topic. For further information about the rule, including a DOL-issued fact sheet and FAQ document, visit: govcontracts/eo13706/index.htm.

– Brian P. McGuire AED President and CEO

Administration Move on Cuba Regulations Is Important Step Toward Normalized Relations WASHINGTON - Associated Equipment Distributors (AED) President and CEO Brian P. McGuire issued the following statement in response to the Obama administration’s announcement that it was amending Cuban sanction regulations to facilitate scientific collaboration, increased humanitarian support and trade and commerce between the United States and Cuba. AED is the trade association representing companies that sell, rent, lease and service leading brands of construction, mining, forestry, agricultural, energy and industrial equipment. AED Board Member We’re very pleased that President Obama has made these Ron Barlet recounts additional, commonsense improvements to the Cuban sanctrip to Cuba - Page 52 tion regulations. This is further progress toward normalized relations that will benefit both the American and Cuban people. But more has to happen. It’s time for Congress to publicly and comprehensively review our nation’s Cuba policy, which seems out of step with geopolitical realities, public opinion and America’s economic interests. Until Congress acts to lift the embargo, U.S. equipment distributors and manufacturers and other businesses cannot take advantage of opportunities to help upgrade Cuba’s infrastructure and help the Cuban people build a better future.


2017 AED Foundation Annual Campaign Building a dealer model for success Directed by AED members, The AED Foundation (AEDF) addresses professional education and workforce development in the industry. The Foundation enhances the success of member companies by encouraging continuous learning, providing educational opportunities for today’s employees and improving the availability and quality of equipment industry employees for the future.

To invest today, visit Learn more about the annual campaign on Page 28. November 2016 | Construction Equipment Distribution | | 11


Accruit 1031 @Accruit Keynote speaker and @ FoxNews National Security Analyst @ktmcfarland on “The American Awakening” @AEDSocial @aemadvisor #Forum2016

John Somers @SomersAEM Manufacturing panel getting underway here at the @AEDSocial / @aemadvisor Equipment Economic Forum.

#AEDGetSocial CDK Global @CDKGlobal Check out the video from the @AEDSocial conference! #CDKHeavyEquipment : What happened in Vegas didn’t stay in Vegas. Jason K Blake @aedcfo AED appreciates Gomaco supporting the equipment industry. Meeting our members at invitational. @AEDSocial West Side Tractor @ WestSide_Deere West Side Tractor Retweeted AED @WestSide_Deere Owner Diane Benck will serve as the first female Chair of @AED in 2018. #gearup

Jeffrey Scott@fambizexpert @AEDSocial Good Forum!!!

Jon Cruthers @joncruthers Know the importance of parts and service absorption rates? If not, learn more at the AED Parts and Service Seminars @AEDSocial

Ben Yates @AED_East Great visit w @RepEvanJenkins today at Leslie Equipment Co. to talk #perkinsact and #jobcreation for WV-3

12 | | Construction Equipment Distribution | November 2016

Would you like to see your company featured in our next issue of CED Magazine? Simply tweet us @AEDSocial and we’ll pick our favorites each month and publish them!

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Komatsu America’s Chattanooga Manufacturing Operation Will Celebrate 30 Years in the Community To celebrate 30 years of manufacturing excellence and community partnership, Komatsu America’s Chattanooga Manufacturing Operation hosted a celebration program on Friday, September 23. Past and current executives of the company as well as elected officials and dignitaries were on hand. Officials invited to attend the ceremony include Tennessee District 11 Senator Bo Watson, Tennessee District 27 Representative Patsy Hazlewood, and Hamilton County Mayor Jim Coppinger. As part of the weeklong 30th anniversary celebration, the plant at 409 Signal Mountain Road also offered public facility tours September 26-29. “The Chattanooga Manufacturing Operation remains a role model for Komatsu overseas plants,” said Bruce Nelson, general manager, Chattanooga Manufacturing Operation, Komatsu America. “Over the years, we have tested and implemented a number of ideas and technologies that were later adopted worldwide and we’ve distinguished ourselves for production excellence and our ‘Komatsu Way’ approach to workplace procedures and worker well-being,” Nelson said. “The success of our plant would not have been possible without our terrific employees and the Chattanooga community,” Nelson added. “Several of our original hires are celebrating their 30th anniversaries with the company, and we are proud of how active Komatsu has become as a corporate citizen in Chattanooga. We plan to maintain that important connection going forward.” When the Chattanooga Manufacturing Operation opened in February 1985, it was Chattanooga’s first Japanese manufacturing plant and Komatsu’s first plant on U.S. soil.

Today, the plant employs over 370 people and produces medium-size hydraulic excavators and forestry equipment. The facility is also the home of one of Komatsu’s global Technical Centers that focuses on state-of-the-art product design and development for bulldozers and forestry products. The success of the Chattanooga Manufacturing Operation is based upon two guiding principles: 1) the manufacture of competitive high-quality products that 2) deliver maximum customer satisfaction and community involvement in Chattanooga. The plant is committed to its employees and has actively participated in and supported a variety of community endeavors, including exhibit sponsorship at the world-acclaimed Tennessee Aquarium, long-term support of local United Way activities, and partnership with the Orange Grove Center in Chattanooga.

14 | | Construction Equipment Distribution | November 2016

About Komatsu America Komatsu America Corp. is a U.S. subsidiary of Komatsu Ltd., the world’s second largest manufacturer and supplier of earth-moving equipment, consisting of construction, mining and compact construction equipment. Komatsu America also serves forklift and forestry markets. Through its distributor network, Komatsu offers a state-of-the-art parts and service program to support its equipment. Komatsu has proudly provided high-quality reliable products for nearly a century. Visit the website at for more information.

>> INDUSTRY NEWS Terramac® Expands Territory with Groff Tractor

Terramac, a leading manufacturer of innovative rubber track crawler carriers, expands its representation in North America with Groff Tractor’s New Jersey operations. “Groff Tractor is an authorized Terramac dealer well-known for delivering superior sales and aftermarket customer service to their loyal customer base,” says Andrew Konopka, president of Terramac. “We’re excited to grow our partnership with Groff Tractor and we look forward to much success in the New Jersey market.” Groff Tractor is offering Terramac’s RT9, RT14 and RT14R crawler carriers to serve a wide range of industries including general construction, utility, waterworks and environmental restoration. “There’s a lot of opportunity for the Terramac product line in New Jersey,” says Sean Collins, vice president of sales at Groff Tractor. “Terramac units are extremely versatile and serve multiple purposes on the job, eliminating the need for additional equipment. And when we have a favorable economic situation”, with their advanced track technology, Tersaid Michel Denis, president and CEO of the ramac units can effortlessly tackle beach company. Manitou Group bets on Brazil as its restoration, landfill and waterway jobsites first production line outside of Europe and the with minimal ground impact.” United States, which already has eight plants Since its founding, Groff Tractor has responsible for the manufacture of its products. expanded beyond its headquarters in The choice of Vinhedo as the site for the factory Mechanicsburg, Pa., to open numerous took into account ease of access to the airports branches; this enhanced contract takes Viracopos in Campinas (SP) and Guarulhos advantage of the company’s most recent and the Port of Santos, the main sites of imports growth into New Jersey. Groff Tractor now and exports in the country. “Brazil is a very improvides professional sales and service portant country for Manitou Group, as we see great growth potential here. The FINAME pro- on Terramac crawler carriers across 10 locations in eastern Ohio, Pennsylvania gram for machinery and equipment financing and New Jersey. will facilitate the purchase of our machines for “We’re eager to take advantage of this the domestic market. Additionally, the country opportunity and further provide our has four major markets for Manitou: mining, customers with the value of Terramac,” construction, industry and agriculture; the says Collins. latter has the greatest potential for Brazil”, said Groff Tractor is a leading equipment Marcelo Bracco, general manager of Manitou provider with extensive parts availability Group in Brazil. and an experienced staff of support manThe arrival of the company will benefit agers. They offer the full line of Terramac after-sales and customer service even more, crawler carriers for sale or rent as well as with quick access to spare parts and a trainfull service maintenance and parts. For ing structure, because the factory also has a specialized methodology for customer service, more information on Groff Tractor or to find the nearest location, please visit www. ensuring the recognized quality of its 60-year history.

Manitou Opens its First Factory in Latin America Manitou Group, the French worldwide market leader in all-terrain materials-handling trucks, inaugurates its new Brazilian subsidiary in Vinhedo (Sao Paulo state). This new implementation confirms the international ambitions of Manitou Group: to develop new market share and to strengthen its local presence in the region. The company has sold Manitou products in Brazil since 2008, working with dealers and a regional office in the country, with direct management from France. In 2014, the company initiated a deep analysis of the Brazilian market and started the commercialization of the Gehl and Mustang brands in the country. Since then, the Group has identified the opportunity to invest in Brazil and has begun its expansion project in the market with the construction of the factory in Vinhedo (SP). Building the factory was a process that lasted more than six years, comprising research, studies and many visits, which ultimately led to the opening of the first unit in Latin America, with 7,000 m². Since the beginning of planning, the project has generated more than 300 direct and indirect jobs. “We want to have a sustainable presence in Brazil. This current market encountered difficulties, but we are really confident for the future. It will take time, but our group will be present

November 2016 | Construction Equipment Distribution | | 15

>> INDUSTRY NEWS CD Group and Denovo Join Forces CD Group announces it has entered into an agreement to be acquired by Denovo, one of the largest full-service JD Edwards consulting and managed services providers. This is effective October 3, 2016. Effective immediately our combined firms will begin conducting business as Denovo Ventures LLC. Established in 2003, Denovo Ventures LLC is a full-service enterprise hosting/cloud computing and professional services firm with extensive expertise in designing, implementing and supporting enterprise software and hosting/cloud solutions. Denovo delivers enterprise hosting/cloud computing and extensive managed services from their certified data centers located in the United States. As an Oracle Platinum Partner, Denovo’s Professional Services team has over 150 years of Oracle JD Edwards and ERP experience and has successfully completed Oracle ERP implementation projects for a wide variety of commercial and public sector clients. The company is headquartered in Niwot, Colorado, in the Denver-Boulder technology corridor and serves a worldwide client base from its East, Central, and West regional offices. Visit www. for additional information. Our companies already share many customers and partners, and we intend to enhance and expand these essential relationships. As a result of our business combination, there are several strategic implications for both our clients and partners, including the following:

Enhanced JD Edwards capability and expertise for consulting services and managed services

While CD Group provides JD Edwards consulting services, Denovo is a full-service private cloud infrastructure provider and a leader providing exclusive JD Edwards solutions. By joining forces, Denovo now employs more JD

Edwards consultants than any other Oracle partner worldwide. These JD Edwards consultants have the most extensive experience in the industry and are leveraged to provide superior solutions for existing and future clients. Through our combined years of experience, our unrivaled resources and infrastructure will ensure that best-in-class services will continue to be provided to the JD Edwards market space. Ultimately, this acquisition will provide tailored services to fit our individual clients’ needs.


Additional geographical strength

CD Group clients currently span the country and include Fortune 1000 companies. The services provided geographically to our clients will be expanded, as Denovo’s JD Edwards global presence will bolster our services, most notably in the Western and Rocky Mountain regions, along with their large focus within the Distribution, Manufacturing and Public Sector industries. Together, Denovo and CD Group will provide you, as our partner, with unprecedented expertise and access to a more powerful resource for managed services: JD Edwards, Oracle Cloud ERP, and E-Business Suite. We are dedicated to maintaining and increasing the quality of innovation, support, and services that you have come to expect from us as your partner. You can expect to see increased market opportunities through expanded solutions, programs, and services. Both Denovo and CD Group are very grateful to our partners who have referred both consulting and managed services clients. We greatly appreciate your trust in us and our partnership. As a trusted partner, we look forward to our continued joint growth. If you have any questions regarding this transformation, please contact us.

16 | | Construction Equipment Distribution | November 2016

Leo Matthews, 1939-2016 Leo L. Matthews passed away on Sunday, September 4, 2016. Leo served as president and CEO of Allied Construction Products, LLC (formerly known as Allied Steel & Tractor Products Inc., over two separate periods of time, from 1976 through 1983 in Solon, Ohio, and from 1993 through 2005 in Cleveland, Ohio. During his recent period in office as president and CEO, he also served as a board director for Allied until his passing. Matthews began his career in the early 1960s as an accountant with Arthur Andersen & Co., working in the auditing and small business departments. He maintained his status as a certified public accountant throughout his entire working career. He also worked for the Legal News in Cleveland, Ohio, and served as a consultant for NPK Construction of Walton Hills, Ohio, until returning to the helm at Allied. During his time spent at Allied, Leo was well respected throughout the construction equipment industry. He served as a member of the Distributor Contractors Association (DCA) and a member of Associated Equipment Manufacturers (AEM) and Mounted Breaker Manufacturers Bureau (MBMB). He brought a customer-support-oriented philosophy to Allied along with a keen business acumen, both of which were attributes that helped him achieve the highest possible levels of success. Leo, a native of Orange, Ohio, is survived by his wife, Cherry, and a son and daughter.

>> INDUSTRY NEWS Wells Fargo Extends Financing Relationship with Doosan Businesses, Including Bobcat Company in U.S. and Canada Wells Fargo & Company (NYSE: WFC) has announced the extension of its vendor financing relationship with dozens of Doosan businesses – including Bobcat Company, the compact machinery maker and distributor – through December 2020. Doosan’s recent agreement with Wells Fargo Vendor Financial Services strengthens its financing program and provides competitive, comprehensive financing solutions for more than 500 dealers and thousands of their customers across the United States and Canada. The announcement comes as a number of Doosan and Bobcat dealers gather in Chicago this week for the 6th annual Dealer Forum, sponsored by Wells Fargo. “We are proud to continue our long-standing relationship with the Doosan and Bobcat brands,” said Jim Kelly, head of Wells Fargo Vendor Financial Services. “We are dedicated to building products and services that strengthen customer relationships, helping identify opportunities, and driving operational efficiency.” Wells Fargo & Company acquired the Doosan and Bobcat relationship earlier this year in the purchase of GE Capital’s vendor finance businesses in the United States and Canada. GE Capital and its predecessors had financed equipment for West Fargo, N.D.-based Bobcat Co. since 1969. The relationship expanded to include financing for Doosan-branded construction equipment in 2012. “Wells Fargo has proven it can deliver competitive financing solutions and cutting-edge technology to our broad network of dealers and their customers to help them succeed financially,” said Ed Hetherington, president of Doosan Infracore Financial Solutions. “As we look to grow market share, Wells Fargo plays a key role in our strategy.” Every year, Wells Fargo processes nearly 20,000 credit applications, finances more than 12,500 pieces of equipment, and services nearly 40,000 Bobcat and Doosan customer relationships. In addition to financing, dealers who work through Wells Fargo Vendor Financial Services benefit from inventory management capabilities, a retail program, efficient online tools, and dedicated account management. From 2010 through this year to date, nearly 60,000 Bobcat and Doosan pieces of construction equipment for end users have been financed through the relationship with Wells Fargo. About Wells Fargo Vendor Financial Services Wells Fargo Vendor Financial Services helps manufacturers, dealers, and distributors manage their equipment inventory, enhance sales opportunities, and serve their customers through a full range of financing programs designed for their specific business needs. From referral services and wholesale solutions to integrated and customized programs, Wells Fargo Vendor Financial Services’ experienced team and value-add tools help customers succeed. Wells Fargo Vendor Financial Services is the trade name of the equipment finance businesses of Wells Fargo Bank, N.A., and its subsidiaries. Canadian business is transacted by Wells Fargo Equipment Finance Company.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,600 locations, 13,000 ATMs, the internet ( and mobile banking, and has offices in 36 countries and territories to support customers who conduct business in the global economy. With approximately 268,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.

About Doosan and Bobcat

Doosan Infracore Construction Equipment America and Bobcat Company are the North American subsidiary of Doosan Bobcat Inc. and Doosan Infracore Co., Ltd. Doosan Infracore is an industry leader in the engineering, manufacturing and marketing of compact and heavy construction equipment, attachments, air compressors, lighting systems, generators and articulated dump trucks. Its world-renowned brands include Doosan, Bobcat, Montabert, Geith, Tramac, Doosan Moxy, and Doosan Infracore Portable Power. Relying on more than 3,500 dealers worldwide, Doosan Infracore products have been used in countless projects all over the world to help customers do their jobs more efficiently and effectively. November 2016 | Construction Equipment Distribution | | 17

>> PRODUCT PREVIEW KOBELCO USA Launches Enhanced SK140SRLC-5 Excavator KOBELCO Construction Machinery USA, a world class crawler excavator manufacturer, is pleased to introduce the upgraded SK140SRLC-5 excavator in North America. The model retains its compact design and short rear swing agility while providing industry-leading value, productivity and durability through enhanced capabilities. The KOBELCO SK140SRLC delivers unmatched performance and boasts a dynamic digging force of 21,357 lbs to achieve leading-class work volume – even while minimizing fuel consumption. Its compact design and long digging reach capabilities provide a broad working range and easy maneuverability, while its top-of-class digging depth of 19’ 7” and impressive swing speed of 11 rpm shorten the cycle times. In addition, the SK140SRLC’s strong drawbar pulling force produces powerful travel capabilities, enabling it to tackle steep and rough terrain with ease. Independent travel, an exclusive KOBELCO feature, allows the SK140SRLC to move, lift and swing simultaneously without experiencing loss of power. A variety of operating modes also enable the SK140SRLC to supply the perfect balance of fuel economy and jobsite productivity to suit the needs of the day. The upgraded model boasts an impressive 21 percent decrease in fuel consumption while operating in ECO-mode and delivers a 5.2 percent increase in work volume per hour while in H-Mode. Equipped with ISUZU’s renowned Tier IV Final engine, the KOBELCO SK140SRLC delivers full-size power and superior efficiency. Its new engine is fitted with a diesel oxidation catalyst and selective catalytic reduction system to control emissions without using a diesel particulate filter. This system ultimately decreases NOx emissions by 88 percent while providing the lowest possible operation costs. KOBELCO also redesigned the

SK140SRLC’s iNDr configuration to include a revolutionary double offset duct structure which allows the machine to suppress noise to a minimal 70-dB. Maintenance on the SK140SRLC is quick and cost-efficient. Easy access to the cooling unit, engine compartment and electrical components ensures convenient day-today maintenance. A machine information display provides data from the operation management system to greatly improve ease of maintenance scheduling and secure a long service life. Operators can also expect extended service intervals for engine oil, hydraulic oil, filter changes and greasing. When it comes to comfort, the KOBELCO SK140SRLC delivers intuitive operation and comprehensive safety. The expanded cab boasts various features including an optimized control layout, wide access doors

for ease of entry and exit, and an adjustable suspension seat to lessen operator fatigue. A powerful air conditioner, radio with USB, Bluetooth and auxiliary capabilities, large cup holder and ample leg room give operators a pleasant work environment on even the toughest of work days. Furthermore, windows on all sides, as well as a rear view and right side camera, provide excellent visibility to ensure safe operation. KOBELCO Construction Machinery USA offers industry-leading crawler excavators in the 3,000 lb. to 245,000 lb. classes including compact, standard, long-reach, mass excavation, demolition, and zero-tail-swing models. For more information on KOBELCO Construction Machinery USA or KOBELCO products, please visit www.KOBELCO-USA. com or call 281-888-8430.

Leading Edge Attachments Introduces The Fang Rake™ The “Fang Rake” from Leading Edge Attachments Inc.® is a land clearing, rock and stump removal tool for excavators and backhoes that provides the operator the ability to comb the ground, removing stumps, brush and rocks for simplified land clearing. The rake has no cross members to act as obstructions. The tines are designed to lift rocks and roots up and out of the ground with the least amount of energy required from the machine and are man18 | | Construction Equipment Distribution | November 2016

ufactured using high-strength Swedish Hardox 400 alloy steel. When used in conjunction with a hydraulic thumb, stumps and boulders can be grabbed and removed or positioned, with action similar to that of a hydraulic grapple. Come visit us! at CONEXPO at Central Hall 1, Booth C-20771 in Las Vegas, March 7-11, 2017.

>> PRODUCT PREVIEW New John Deere Grading-Heel Buckets Offer Smooth Productivity John Deere is expanding its lineup of easy-to-use Worksite Pro™ attachments with the new grading-heel buckets. Specially designed for the new SmallFrame G-Series skid steers (312GR, 314G, 316GR, 318G) and compact track loader (CTL) (317G), the grading-heel bucket attachments are ideal for customers performing final grading applications. The grading-heel buckets are similar in style and dimensions to standard dirt buckets, but feature a squared-off heel for back-dragging applications. The bottom of the bucket is smooth, with no lifts or edges, which allows the bucket to create a flat surface with ease. These features make the grading-heel bucket an ideal option for a variety of jobs, including land shaping, dirt leveling and installation of new landscape for

sodding, irrigation and drainage. The grading-heel buckets are available in two sizes — 60-inch and 66-inch — for use with most compact models in the G-Series lineup. “We’re seeing construction spaces getting tighter, especially in the residential building indus-

try, and customers are seeing the value of operating smaller machines in these areas,” said Gregg Zupancic, product marketing manager, John Deere Construction & Forestry. “Add an attachment like the new grading-heel bucket, and contractors can work comfortably and efficiently in

tight quarters without sacrificing productivity.” Worksite Pro™ buckets, like the grading-heel options, are the ideal way to take advantage of skid steers’ and CTLs’ steep dump angle and high bucket rollback. Not surprisingly, they also enhance the performance of many competitive skid steer models. With the universal, self-cleaning Quik-Tatch™ easy attachment system found on all John Deere skid steers, CTLs and compact excavators, the machine can easily add and remove the grading-heel bucket in no time. The new attachment series is also backed by John Deere parts, service and warranty coverage. To learn more, visit www. or contact your local John Deere dealer.

Komatsu America Corp. Introduces New Wa270-8 Wheel Loader Popular, all-around performer moves from farm work to snow removal with ease Komatsu America Corp., a leading global heavy equipment manufacturer, recently introduced the new WA270-8 wheel loader. Equipped with an EPA Tier 4 Final certified engine, this addition to the wheel loader family combines high production with low fuel consumption and improved operator comfort. The WA270-8’s parallel-lift linkage, with auto tilt-in to simulate a Z-bar, can be used in virtually any application, from pallet handling to hard digging. Fuel consumption is lower by up to 3 percent in V-cycle loading and 2 percent in load-andcarry applications. “Whether you’re lifting, digging or changing attachments on the fly, the WA270-8 is compact enough to squeeze between farm buildings, yet powerful enough to tackle jobs often planned for bigger machines,” said Frank Nyquist, product specialist, Komatsu America. “It’s one of the most versatile machines Komatsu offers.” Standard features of the new WA270-8 include: A powerful 6.69 liter, 149 HP, EPA Tier 4 Final certified, SAA6D107E-3 engine uses up

to 3 percent less fuel than its Tier 4 Interim predecessor. The Komatsu Diesel Particulate Filter (KDPF) and other after-treatment components are designed in conjunction with the engine for efficiency and long life. The new SCR system reduces NOx emissions and is designed to last the life of the engine. More than 98 percent of KDPF regeneration is performed passively, with no action required of the operator and no interference with machine operation. A proven, fourth-generation hydrostatic drivetrain with variable traction control and S-mode provides excellent traction control to reduce wheel slip. S-mode is ideal for snowy, icy or slippery conditions. Creep mode in first gear is easily controlled via a knob on the RH console. This mode allows the operator to dial in travel speed from one to eight miles an hour. The pioneering KOMTRAX telematics system and monitor provide key machine metrics, including KDPF status and DEF-level data, fuel consumption, plus performance information collected and sorted by operator ID.

November 2016 | Construction Equipment Distribution | | 19

Planting a Flag in Florida

This summer, six AED dealer members met with administrators at Hillsborough Community College (HCC) in Tampa, Florida, to express their interest in helping them create an AED Foundation Accredited Heavy Equipment Technical program. HCC wasn’t a random, shot-in-the-dark selection. It was recommended as a good REGIONAL prospect for starting an accredited program REPORT during an early April visit at Linder Industrial BEN YATES Machinery. HCC is in the final stages of building a medium duty truck diesel program, which is slated to start in January 2017 with a class of 15 students and over $1 million in tools and equipment in a recently renovated facility. Schools with existing diesel programs are a good fit because it is a component of AED’s accredited program. Another reason HCC is a good prospect for The AED Foundation Accreditation is because they currently offer similar career technical training programs for automotive, welding, law enforcement, and firefighting to name a few. And in addition to the new diesel program, 2017 will also mark the beginning of new programs for alternative fuels and light rail systems. John Meeks, HCC’s Director of Post-Secondary Adult Vocation and Workforce Programs, is excited about the prospects of becoming accredited by The AED Foundation. “We had no idea that this need existed and that the dealerships literally surrounded our campus, some only a stone’s throw away. When we took a closer look, we realized these are terrific companies willing to provide great careers for students with the right training – training that doesn’t currently exist anywhere in the state of Florida. The overlap of certain courses with the new diesel program gives us a great head start on achieving the AED Accreditation.” That first meeting this summer served several purposes beyond general introductions. For the dealers, they wanted to demonstrate the local need for such a program, review the capabilities of HCC and set expectations for the skills sets they want students to possess upon completion of the two-year associate degree. The message from the dealers to HCC was clear: What our

industry wants and needs is students that understand the general principles of electrical components, drivetrains, HVAC, safety, and hydraulics in addition to possessing a general fundamental knowledge of diesel engines. Dealers will provide the product specific training. HCC wanted to use the meeting to evaluate the potential market for these students, gauge the level of commitment from the dealers and determine the appropriate next steps. This entails the dealers to pledging three things; apprenticeship opportunities, equipment

donations or loans (when available) and a designated employee to participate on a dealer advisory committee. There is still a great deal of work to be done, and obstacles to overcome, but the promise of a steady stream of quality technicians was enough for all dealers to pledge the support requested by HCC. And in turn, HCC is continuing to pursue The AED Foundation Accreditation with their new advisory committee. AED dealers located in Florida that are interested in participating on the advisory committee and partnering with Hillsborough Community College please contact Ben Yates at or 630-468-5130 for further details.

BEN YATES is AED’s Eastern Regional manager. Ben can be reached at 630-468-5130 or at 20 | | Construction Equipment Distribution | November 2016

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Taken together, these six equipment types CONSTRUCTION FOR DECISION MAKERS EquipmentWatch cover approximately 45.1 percent of the total OVERALL 1 Interested in connecting? Visit us at Director of Business Insights FINANCE:NEXT Eastern Canada continues resale market. to hold strong in markets for used For this regional snapshot, EquipmentAn analysis of the major brands repreconstruction and agricultural equipWatch takes a closer look at the Eastern part sented in these six equipment types reveals ment. As such, we expect the resale of Canada, which consists of six provinces more interesting trends. In two of our recent channel in this region to maintain its containing nearly 70 percent of Canada’s Regional Snapshot articles (Alaska and the resilience to the energy issues in othpopulation. Used equipment markets in American Southwest), Caterpillar dominated er regions and continue to grow. Eastern Canada have seen some interesting in the equipment types. In Eastern Canada, trends over the last two years. though, there appears to be much more US Federal Reserve. Combines appear to be Eastern Canada covers a substantial competition among equipment producers. portion of the country, and these six provon a long-term downward trend in resale Caterpillar continues to maintain the highest inces are home to strong manufacturing and prices, although the seasonal spikes shown in percentages among construction equipment agricultural sectors that supply parts and the graph below mitigate much of the decline. but is challenged in several equipment types crops to other countries around the world. Wheel tractors and standard excavators have by other brands. Kubota, for example, holds As a result, the used equipment markets 18 percent of the resale market for compact also declined over the last two years, while in Eastern Canada are grounded heavily excavators. These excavators have incurred a backhoes, wheel loaders, and compact excain standard earthmoving and harvesting flurry of attention in recent months as many vators have held steady or increased slightly in equipment types. In the fourth entry in our top manufacturers have shifted excavator value since January 2015. series of Regional Snapshots, we investigate strategies. Among agriculture equipment While Western Canada (Region M) has resale channel composition for this group of types, the mix in Eastern Canada is fairly experienced a great deal of adversity over provinces. representative of the entire North American the last few years due to a stagnant energy Since January 2015, EquipmentWatch has resale market. John Deere holds the largest sector, Eastern Canada has continued to grow recorded approximately 107,934 observations share and is followed by Case IH and New and establish itself as a powerful player in from the resale channel for the provinces in Holland, after which the rest are taken by the North American economy. We expect Region N, which can be found listed at the Kubota or AGCO brands. agricultural and construction equipment on bottom of this article. As befitting a region Although they exhibit slightly higher than the resale channel to remain relatively stable with significant grain exports, wheel tractors expected variance from month to month, in terms of supply and average price, although and combines are both present among the top average asking prices on the resale channel a revitalized industry-wide focus on new six equipment types. Rounding out the list are in Eastern Canada are very similar to the compact excavator production may have a the usual suspects in yellow iron—excavators, average across North America. Slightly less detrimental impact on used markets. loaders, and backhoes. These earthmovers than 35 percent of the observations used in Region N: New Brunswick, Newfoundland are ubiquitous on construction projects this analysis were listed in Canadian dollars, and Labrador, Nova Scotia, Ontario, Prince regardless of sector, so it is no surprise to see all of which were converted to US dollars Region N with a significant number of them. using daily exchange rates produced by the Edward’s Island, and Quebec. © 2016 EquipmentWatch, a Penton brand. All rights reserved.

22 | | Construction Equipment Distribution | November 2016

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Getting It Done For Dealers In A Toxic Political Environment We got a lot done over the past two years, but there’s still much to do.

Given how much you’ve heard from candidates about the toxic political environment on Capitol Hill, it might come as a surprise to hear that the 114th Congress – which started in January 2015 and ends in December - was one of the most productive and successful in recent memory for AED. Consider where things stood when Congress convened at the beginning of 2015. In two major areas – highways and taxes – uncertainty had long been the status quo. The federal highway program had been suffering for years under a series of short term extensions that created enormous volatility in municipal construction markets. And the federal tax code, which is difficult to interpret under the best of circumstances, was made more complicated by the fact that important provisions expired on annual basis. AED made restoring certainty to the highway program and the tax code the central themes of our lobbying in 2015. Although the association has a long history of lobbying those issues on Capitol Hill, we put a new emphasis on member engagement to help us move the ball down the field. The new team of AED regional managers worked with the Washington office to coordinate scores of meetings with members of Congress at dealer facilities around the country. Those visits created the opportunity for lawmakers to sit down with equipment executives, talk about issues, meet employees, and hear and see first-hand how congressional action (or inaction!) was affecting companies “back home”. All those individual conversations made a difference and momentum slowly but surely built for action on both a highway bill and taxes. Ultimately, most of the progress came in the last few weeks of 2015. In early December, President Obama signed the FAST Act into law. It authorized more than $300 billion for road and bridge construction for fiscal years 2015 through 2020, which AED estimates will create more than $13 billion in market activity for dealers and support more than 4,000 dealership jobs each year. AED also scored another series of major victories in late December 2015 with the enactment of the PATH Act, which restored a semblance of certainty to the tax code. Most importantly for AED, it reinstated bonus depreciation (50 percent in 2015,

2016 and 2017, 40 percent for 2018, 30 percent for 2019). The bill also permanently increased the Sec. 179 small business expensing allowance and phase out cap to $500,000 with a $2 million respectively for 2015 and indexed those numbers for future years. Though not tax related, the PATH Act also lifted the decades-old ban on crude oil exports thereby giving U.S. producers direct access to foreign markets. Lifting the ban had been one of AED’s top energy priorities in the current Congress. The 114th Congress also saw progress in other key areas. Leaders in both the House and Senate unveiled detailed tax reform plans and set the stage for a major reform debate next year. Both the House and Senate have also passed bills to reauthorize Army Corps of Engineers construction programs and there’s a reasonable chance a conference report will be enacted by the end of the year. We also made progress on workforce policy issues. Over the past two years, AED positioned itself to play a leading role in the fight to improve career technical education (CTE). An AED Foundation-sponsored report released earlier this year showed, among other things, that the technician shortage costs equipment dealers $2.4 billion per year in lost economic activity. AED used that data to lobby for legislation to reauthorize the Perkins Act, which funds federal CTE programs. A Perkins bill passed the House with overwhelming support in September and is on track for Senate consideration after the election. We got a lot done over the past two years, but there’s still much to do. Finding a long-term revenue solution for the Highway Trust Fund, comprehensive tax reform and restoring accountability and transparency to out-of-control regulatory agencies are all top priorities. Educating all the new members of Congress and congressional staffers about our industry and issues will be our focus in early 2016. It’s not going to be easy, given the charged, partisan atmosphere we’re going to encounter on Capitol Hill, but as the past two years have shown, when dealers step up and get engaged, we can accomplish big things, even in a difficult political environment. AED’s team is looking forward to working with our members to make the 115th Congress even more successful.

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

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The AED Foundation Canada College Affiliate Program

The AED Foundation recognizes the importance of building relationand also focuses on motive power business, shop management and parts ships and bridges among college diesel-equipment technology programs management. in the U.S. and Canada. Toward that end, the Foundation is pleased to Mr. Stephen Speers, Chair, Trades and Apprenticeships commented introduce the AED Canada College Affiliate initiative. on becoming affiliated with AED, “Conestoga has enjoyed a very positive The initiative offers: ▶ Networking opportunities to meet and develop relationships with representatives of AED Accredited colleges. ▶ One AED Foundation funded $1,000 scholarship annually for each Canadian member college. ▶ Opportunities to exchange information on best practices in teaching, as well as information and resources available to improve curriculums, and source teaching aids and equipment. ▶ The support of AED’s Public Policy staff to assist in federal and provincial lobbying in Canada in the better interests of Canadian schools: funding, program support and legislation. ▶ Canada college promotion to the North American equipment industry via AED/AED Foundation media. The faculty, from left: Reg Legere, Stephen Speers, Stuart Hood and Greg Dinsmore; below, student ▶ AED member pricing for professional development education opportunities and AED Kurtis Oliver. events. ▶ Representation on Foundation committees and task forces: Technical Training Committee, AED technical standards task force and event committees. ▶ An AED Canada College Affiliate Committee that will meet regularly to provide direction for this initiative. The AED Canada College Affiliate initiative, combined with AED’s Accreditation program, will create an AED “umbrella group” of North American diesel-equipment technology college programs. This positions AED and The AED Foundation to better leverage its resources, speak more forcefully to Career and Technical Education challenges that exist in North America; and facilitate positive change. and productive relationship with the Canadian AED for several years Conestoga College, Guelph, Ontario now and we very much look forward to enhancing and expanding that Having applied in April 2016, Conestoga College is the first Canadian relationship through our new Affiliate membership with the AED. Our college to affiliate with AED. Established in 1967, Conestoga now serves AED membership has already provided increased access to industry approximately 12,000 full-time students at seven locations, delivering contacts and information, both critically important for the effective devela full range of career-focused education, training and applied research opment and maintenance of our programs. In addition, AED is providing programs. student scholarships, an important demonstration of industry support for Conestoga offers two heavy diesel-equipment programs; a one-year our students and programs.” Heavy Equipment Techniques Certificate, and a two-year Motive Power The first AED Canada Affiliate scholarship of US$1,000.00 was Technician – Heavy Duty Equipment Diploma. The programs prepare awarded in 2016 to Mr. Kurtis Oliver, from Embro, Ontario. Mr. Oliver students for, and may exempt them from, the level I and II governfirst studied in Mechanical Engineering, but soon discovered that was not ment ministry apprenticeship examinations. Conestoga’s Motive Power what he wanted to do. He then began his heavy equipment technician certificate programs provide students with a combination of training studies at Conestoga College and now, “aspires to, “become a skilled techat the pre-apprenticeship level and at the apprenticeship level; and a nician within an established company where he will do his best work.” great pathway to apprenticeship. The Motive Power Technician - Heavy We congratulate Mr. Stephen Speers, Chair, Trades and ApprenticeDuty Equipment Diploma program is for students who are interested in ships; Mr. Stu Hood, Professor/Coordinator; Mr. Reg Legere, Instructor; opening their own shop, or becoming a parts manager or working with Mr. Greg Dinsmore, Instructor and Mr. Jason MacLay, Instructor on this specialized technology. This program provides a strong technical base affiliation with AED that will provide benefits to all involved. 26 | | Construction Equipment Distribution | November 2016

AED Foundation Self-Study Courses Now Online The new courses can be completed virtually and feature updated material. The AED Foundation has long offered self-study courses that allow members to enrich their understanding of key industry issues while working at their own pace, eliminating the need for costly and time-consuming industry-related educational travel. While self-study courses have always been a hallmark of AED’s offerings, the Foundation’s new and improved educational programming is better than ever. In the past, AED members who took self-study courses through The Foundation had to wait for their books, DVDs and other course materials to arrive in the mail, and then mail them back when they were finished – a system that was decidedly inconvenient for everyone involved. Fortunately, those days are gone. The AED Foundation’s self-study courses are no longer mail-based. Now they can be completed entirely online. “The AED Foundation had previous self-study courses that were DVD- and book-based, and members mailed the course materials back and forth,” said Rebecca Lintow, director of sales and development for Associated Equipment Distributors. “We’ve revamped our self-study courses this year to increase their convenience factor – they can now all be done completely online.” “Many of our members who took self-study courses were frustrated because they had to wait to get a DVD – and we had limited inventory,” she said. “Now, as many people who want to can take them.” The move to online courses isn’t the only thing that’s changed. The course material has also been updated to reflect current trends in the industry. “Our self-study courses have also been revamped to include new content,” Lintow said. “Our previous courses were developed in the early 2000s, so we’ve updated them so that the rental courses relate directly to what’s going on currently in the rental industry, as well as parts and service.” AED Foundation self-study courses cost $295 and give the member online access to the course for 30 days. Each course consists of a variety of engaging videos, workbooks and activities, and is designed to take between four and six hours to complete. The courses can be taken individually or in conjunction with AED certification for parts, service, rentals or branch. They are segmented depending on which track is taken and conclude with a certification test. One of the greatest things about AED’s new self-study courses is that they can be started at any time – there is no set start date – so members can begin their educational enrichment whenever they’re ready.

Also, there is an assessment at the end of each course to ensure that the member has grasped the new knowledge. These assessments have an added benefit for managers: not only do they let a manager know that the employee has completed the self-study course in question, but they also demonstrate that the employee is ready and able to use the new information they’ve learned. AED’s self-study courses are divided into various tracks, such as Financial,

Parts, Service, People Management, Rentals and Sales. Available self-study courses include the following: ▶ Financial Management 101- Introduction to Business Finance ▶ F​inancial Management 102 - Ratio Analysis ▶ Parts 101- Basics of Parts Management ▶ People Management 103 - Champion Results ▶ Rental 101 - Introduction to Rental ▶ Rental 102 - Intermediate Rental ▶ Rental 103 - Rental Management ▶ Service 101 - Basics of Service Management ▶ People Management 101 - Own the Vision ▶ People Management 102 - Align the Resources ▶ Parts 201 - Advanced Parts Management ▶ Service 201 - Advanced Service Management Learning information that can improve a business doesn’t have to mean traveling to a far-away city and sitting in seminars and workshops for hours. The AED Foundation’s new self-study courses give members the tools they need to succeed, and the convenient online format and ability to learn at their own pace eliminates many of the obstacles that may have discouraged industry business owners from enriching their business education in the past. For more information on AED’s new self-study courses, call 630-574-0650, email or visit November 2016 | Construction Equipment Distribution | | 27

DEALER LEARNING CENTER The AED Foundation offers a wide variety of flexible learning options, including manager certification, self-study courses and webinars. AED members benefit from industry- and position-specific educational programs in all areas of dealership operations, including people management, service, finance, marketing, parts, customer service, branch operations, rental and sales. Enjoy affordable access to a variety of employee education in one convenient location. The AED Foundation’s Dealer Learning Center includes:

Self-Study Courses

When you take a self-study course, there is no additional cost for travel or time away from the dealership. Benefits include studying the materials at your own pace while participating in an interactive learning environment.

AED Certification

AED offers Manager Certification which recognizes industry professionals who complete job-specific training in parts, service, rental and branch operations.

Industry-Specific Webinars

Enhance your professional growth by registering for our live or on-demand webinars. Topics include training in HR, Parts and Service, Sales, Finance, Rental and more! All webinars are presented by industry experts.

Upcoming Webinars:

Machine Salesman / Rental Salesman – Can They Be The Same? Includes a Live Event on 11/10/2016 at 11:00 AM (EST) It is not uncommon for dealers to consider using the same machine salesman to also be responsible for the Rent to Rent (RTR) fleet. Is this a good idea? Do the skills of a machine salesman translate into effective rental sales? Is the customer contact the same person for capital purchases as well as renting? What about the personality styles and the drive of these two salesman, are they the same? In this webinar, we will take a hard look at why this is a challenge and discuss some insights how you might make it work. Setting Rental Rates – Science Or Art? Includes a Live Event on 12/08/2016 at 11:00 AM (EST) For years dealers entering the rental business have been searching for the magic formula for setting rental rates. Shouldn’t it be 5% of the dealer net? Does the customer really care what you paid for the machine? What is the ratio for daily rates to weekly rates? Isn’t (4) weeks the same as a monthly rate? How do I know if I am getting a good rate on my machine? These are just a few of the prevailing questions that will be answered during our webinar. Getting the pricing right is critical to your success in rental.

BUILDING A DEALER MODEL FOR SUCCESS The impact of your 2017 AED Foundation Annual Campaign Investment Your donation fuels the work that allows The AED Foundation to develop a dealer model for success. Building upon our 25 year track record, The Foundation is launching a bold plan for a new era of engaged dealers. We will be raising $300,000 for the construction equipment industry through our annual campaign. This funding will ensure a more predictable and stable future for technician availability. Your donation will enhance the success of dealerships for years to come.

Fighting for a Cause

The future of dealerships depends on how we come together to build our industry’s workforce. No organization is better equipped than The AED Foundation to address the ongoing issue of the present and future technician shortage. Our workforce research will address and identify how The AED Foundation and dealerships can work together to help

combat this issue. The AED Foundation is strong but will need bold new thinking and continuous support to get where we need to be.

Developing Dealer Employees

The AED Foundation has comprehensive education for dealer employees. We strive to continue to develop existing employees, specifically parts, service, rental and branch managers. A number of self-study and onsite training opportunities are provided for the convenience of our members. Special Investor Incentives You can directly invest by visiting or by downloading the investment form. (Contributions to The AED Foundation are tax deductible to the extent of the law. The AED Foundation is a 501 (c)(3)

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educational foundation.) ▶ $2,000 Donation: When you invest a minimum of $2,000, you will receive access to The AED Foundation’s 2016 webinars for your main location for all of 2017. ▶ $3,000 Donation When you invest $3,000, you will receive access to The AED Foundation’s 2015 and 2016 webinars for your main location for all of 2017. ▶ $8,000 Donation When you invest $8,000, you will receive co-branding on our Dealer Learning Center with your logo. Visit to view the Dealer Learning Center. In addition, you will receive access to all 2016 and 2015 webinars for your main location for all of 2017.


VANGUARD COMMERCIAL ENGINES OFFER MORE THAN JUST RELIABLE POWER TO KEEP YOU RUNNING. Technology, strength and support to take on the world’s most demanding job sites. Vanguard offers exceptional service, next day parts delivery* and industry-first innovations like TransportGuard™—which reduces maintenance and downtime. And all engines are backed the largest sales, service and support network in the industry. Experience the power to get more done every day.


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By John Fleming I recently visited a local GMC, Cadillac and Buick dealer and learned from one of the owners (of multiple dealerships) that their focus on used vehicles is determined by what is currently selling in each dealer market. They do not keep more than 60 days’ supply at any location. Their goal is to sell it off their lot or wholesale it for cash. “Cash,” he said, “is king.” It allows them flexibility to buy what their market demands or to invest, and to be nimble over seasonal and economic cycles. It made me think. What have we been missing in the used heavy equipment industry? “Cash is king” might be the mantra. Either you have equipment that will bring cash for a profit or you turn the equipment you have into cash. Regardless, the cash is needed to invest or buy what can be sold to drive your profit. Carrying inventory for months at a time simply erodes capital. Not only do carrying costs rise, but in this market, prices of the machines decline with time. Traditionally, used equipment inventory has been placed on the back burner and hasn’t always been viewed as a worthwhile source of cash generation. Understanding that “cash is king,” the question becomes how to leverage your used equipment to increase cash and maximize the return on the asset. New to the industry is the option of selling equipment 30 | | Construction Equipment Distribution | November 2016

at wholesale direct to other dealers. Many have realized this is a viable option to increase cash flow and create new opportunities for dealers. Having a constant stream of excess inventory flowing into a wholesale channel will allow a dealer to generate cash that can be reinvested much more profitably than just leaving iron tied up in the yard. Technology has rapidly advanced to allow dealers, without regard to the brands they represent, to pool their inventory as soon as a trade is generated or a machine is scheduled to come out of the rental fleet or off of lease. This pooling works a lot like a commodity market: dealers make their inventory available in a private pool that only other dealers can search. Thus, it becomes a virtual supplemental inventory that only members can share. Through sharing, each dealer is able to focus their physical inventory investment on high-demand products, turn slow-moving units into cash, and use realtime virtual inventory to prevent lost sales. Inventory that is shared virtually is available for all participants to sell. This increases the probability of a faster sale and provides a greater return on invested capital with higher margins. The greater return is generated by the reduction in carrying cost and higher sales of the product in demand. It also means that dealers can reduce lost sales (the inability to meet a customer request from physical inventory) by relying on a virtual inventory. Sales from the virtual inventory pool

provide additional income. The wholesale cost is a pass-through, and the margin the customer pays is incremental. The return on this investment is many times greater than that of a machine carried in physical inventory. For example, let’s say a machine is available on a wholesale basis for $100K, and the current market value is $120K. When that unit is bought wholesale the cost is approximately 1.5%. Thus, the dealer pays $1,500 out-of-pocket to generate a gross profit of $18,500, or a 1133% return. Let’s look into this a little further. I began asking dealers how often they have a lost sale on a used machine. That is, if 100 people walk in or call, ready to buy at that time, what percent of requests can be fulfilled from your used equipment inventory? Their answers ranged from a low of 5 percent to a high of 25 percent. In other words, from 75 to 95 percent of requests cannot be fulfilled at the time of the initial request. That is a “lost sale.” Let’s carry this one more step. What percent of these customers find the equipment elsewhere? The average response was 33 percent. That is, 33 percent of prospects actually become lost customers and lost relationships, not to mention the lost potential for downstream parts and service business.

Thus, even with an estimated 270 or more days of used inventory, heavy equipment dealers are still having lost sales that are on average greater than 80 percent. Yet in the auto industry dealers turn this around with shared inventory and wholesale pools they can draw from. Can we in the heavy equipment industry learn from this? Of course we can. We can participate in shared wholesale pools, increase cash flow and improve margins through reduced cost and incremental sales. Using a virtual inventory pool simply turns product into cash. All the inventory we make available in a pool is instantly available for every other member to sell – and for the member dealer to generate cash. It is, in fact, a win-win. Load used inventory, generate cash, reduce carrying cost and utilize the shared pool of other dealer inventory to reduce lost sales and generate incremental income. As with everything in business, it’s first important to know the available options, then it’s important to know which path to take for each situation to effectively maximize the desired return. If “cash is king,” then an option like wholesale pooling of inventory is one way to keep that king on top.

JOHN FLEMING is a seasoned global industry executive who currently serves as CEO of The Heavy Equipment Exchange, the world’s first online, dealer-only wholesale marketplace for the global trade of both on- and off-brand used heavy equipment. www.theheavyequipment. exchange 512.656.9011

November 2016 | Construction Equipment Distribution | | 31

Here’s how to get the most out of your

CONDEX TIME By Christine Corelli ttending the 2017 AED Summit and the I]\industry's leading Construction Dealer Expo, CONDEX, could be the best business move you will ever make. To create and sustain success in today’s environment, you need to have complete, up-to-date information about what is happening in the industry. This event is by far the best vehicle to get the latest feedback, disseminate the most current information, and obtain ideas that will help you to make the right decisions for your business. Furthermore, it allows you to network and initiate new business relationships while cementing and enhancing existing ones. The most important reason to attend the event is to take advantage of the opportunity to hear the exciting keynote speakers – former Vice President Dick Cheney, Daymond John and Richard Picciotto – and attend the educational sessions presented by industry experts. Another good reason to attend Summit is that it will put you in the energizing equipment dealer environment and provide the inspiration to help you take a more creative approach to your business. You just might even obtain that one big idea that will make an impact on your bottom line.


Tips of the Trade

The following are a few tips that can help you achieve the most when attending the show. ▶ Bring key people. While it is difficult to take anyone away from your business, bring your GMs, branch managers, parts and service managers and other key players in your company who can help you make buying decisions and attend the great sessions that are offered. Bringing them along will be an added expense, but it will pay off in the long run. Consider dividing the show up into sections and meeting up later to discuss “Must See’s,” “Must Have’s,” “Too Cool to Believe,” and “Best Deals.” For educational sessions, many dealers have each team member sit in on a different session to maximize the amount of information gathered

by the entire team. ▶ Register in advance. Preregistration is always a smart move. If you haven’t done so, register now. Hotels go fast in Chicago in January, since many meetings and conferences are held at the same time. ▶ Maximize your time. Prepare in advance. Time is at a premium at the show. Review the list of exhibitors and what products or services they offer. Decide what exhibits you want to be sure to see. Make a game plan for exhibit “must-see’s” and book appointments in advance. Then make an alphabetical list, so that you can look them up quickly and write the booth numbers down. Then write them in the sequence of the aisles where they will be located. There will likely be exhibitors who are offering new products and services that may benefit your business. Be sure to be “in the know” and visit these vendors.

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▶ Walk with a purpose. Take the time to walk the show thoroughly and completely so you will get the biggest bang for your buck. Carry a small note pad, ipad or iphone and take as many notes as possible. Record information and ideas you want to implement after the show. ▶ Keep those business cards in your pocket. Exhibitors will be able to record your contact information if requested, but be sure to carry business cards in your pocket. If you pick up someone’s card, be sure to write notes on the back. Otherwise, when you look at it

after the show, you may not remember your conversation or why you have the individual’s card. ▶ Look for “Show Specials.” Some exhibitors offer special pricing if you place your order at the show. Some may extend the offer for thirty days. Be sure you are aware of these opportunities and take advantage of those that make sense for you and your dealer business. ▶ Knowledge is power. Gather as much information as you can. Find out what new solutions are available to you that can help you expand your product support and rental business and increase the two “P’s” – productivity and profitability. During the show, talk to industry experts to learn all you can to grow your business and hone your skills. ▶ Work a room wisely. Lunches, receptions, hospitality rooms, and similar events are not just for eating, drinking, and making merry. They also provide the best possible networking opportunities. There will be networking events you can’t afford to miss. Position yourself at the “center of influence” (the center of the room and not near the food and beverage areas). This way, you can see who is coming through the door and keep your eye out for owners or parts and service managers you may want to meet. ▶ Form strategic alliances. Another tip of the trade, and most definitely a good reason to attend

the show, is that you may find an opportunity to form a strategic alliance with another business. Many are formed at trade shows. Begin sowing the seeds for collaboration. Alliances can make a big difference in your bottom line. ▶ Join a Dealer 20 group! The AED staff can help you join a group where dealer members are matched by company size to discuss best practices, methods to profit in product support, financial advice, banking terms and financing options for the heavy equipment industry. ▶ Leverage vendor expertise. While at the show, talk with your vendors. Ask for their advice. They want you to be successful, because their success depends on your success. ▶ Take action. Going back to “business as usual” won’t cut it. After the show, your feet will be aching, but your mind will be creatively charged. Now’s the time to make smart decisions! Go over your handouts and your notes. Prioritize three actions you will take immediately after the show. Then, identify five critical success factors for your business and what actions you will need to take to achieve your goals. In today’s world, execution must be a strong part of your competitive strategy. Get the industry advantage. Attend this dynamic AED event and trade show. I’ll be there to meet you at the Summit!

CHRISTINE CORELLI is slated to present “Dealing with Difficult People and Situations.” To learn more about her, visit or call 847-581-9968. © Copyright 2016, Christine Corelli & Associates, Inc. November 2016 | Construction Equipment Distribution | | 33

AED Summit 2017: Filled with Dealer Educational Opportunities Sessions range from standard dealership topics to improving customer engagement. Associated Equipment Distributors (AED) will host its annual industry Summit Tuesday, Jan. 10 through Friday, Jan. 13 at the Hyatt Regency Chicago in Illinois. An exclusive event for dealers, manufacturers and suppliers in the equipment distribution industry, AED's Summit gives attendees an opportunity to network with peers, hear from leading experts and get a sneak peek at the latest products. This year Summit will offer a wide range of educational opportunities – even more so than what was available in previous years. Not only will the roster of Summit educational sessions include new topics, but AED has also added an additional day of programming, according to Rebecca Lintow, Director of Sales and Development for AED. “We’ve added more sessions this year, and we’ve added programming on Tuesday,” Lintow said. “Previously we just did sessions on Wednesday and Thursday, so we’ve expanded the time for training to include Tuesday. The benefit is that dealers who weren’t able to see all the sessions last time will have an opportunity

to see more sessions, or at least to see some, because of the extended schedule.” The Summit’s many educational offerings are divided into seven different tracks: Customer Engagement, Executive, People Management, Product Support, Rentals, Sales and Small Dealers. An extra day of educational sessions won’t be the only thing new to AED Summit 2017. When planning session topics, AED worked hard to think outside the box, coming up with topics that extend far beyond the typical ones dealers would expect to find at a trade convention. “We’ve added in some new speakers and tried to expand beyond the standard topics for a dealership to include those that relate more to customer engagement,” Lintow said. “For example, for the ‘Wine 101 for Business’ session, the idea is that you’re going out and having a business meeting, and knowing what you’re talking about from a wine perspective will actually make you look like you know what you’re talking about in other areas as well.”

34 | | Construction Equipment Distribution | November 2016

The summit will also offer creative sessions such as “The Science of Silence,” which is designed to give dealers insight into customers’ body language, movements and expressions, and “What’s Your Uber?”, which will discuss radical ideas that threaten to “wreak havoc” within their industries. Summit attendees can also take part in an interactive mini-workshop on the changing cultures of dealerships that will include a question-and-answer segment, shared experiences and ideas for how to enact change. “We are doing an interactive session on Tuesday called ‘That’s the Way…’ that will be about culture – how to identify yours, and how to change it,” Lintow said. “We have multiple generations working in dealerships and other generations taking over dealerships, so understanding what the culture is and how to change it (becomes really important).” “In the past, sessions primarily focused on topics related to our industry, like product support,” Lintow said. “This year we’re expanding our programming

to include session topics that help dealers interact with their customers.” Summit attendees can also look forward to a variety of more traditional sessions on topics such as the evolution of employment law, time management for smaller dealerships, the top reasons that rentals underperform, information on parts inventory, and an interactive session on investing in relationship capital. AED Summit 2017’s keynote speakers include former Vice President Dick Cheney, 9/11 survivor Richard Picciotto, and ABC’s “Shark Tank” host and notable businessman Daymond John. Dealers and other industry insiders planning to attend the AED Summit 2017 are encouraged to register for their desired educational sessions well in advance. For more information on the upcoming AED Summit, call 630-574-0650, email or visit AED is also on Facebook, Twitter, Google+ and YouTube.

THE AED FOUNDATION  Fundraising GALA Tuesday, January 10, 2017 6:00 pm - 9:00 pm Purchase Your Tickets Online at Join us at one of Chicago’s infamous speakeasies, Untitled Supper Club for an eventful fundraising night with sounds from the jazz age, a live auction, dinner, open bar and entertainment. Untitled Supper Club 111 W. Kinzie Street Chicago, IL 60654

The AED Foundation is a 501 (c)(3) educational foundation and tickets are deductible to the extent under the law. Black Tie Attire Optional

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AED is Excited to Announce Our Keynote Speakers for Summit 2017 Sponsorship Opportunities

If you and your company are interested in special sponsorship opportunities related to Dick Cheney’s visit, contact Jon Cruthers at or 630468-5127.

Daymond John and Richard Picciotto will be joining former Vice President Dick Cheney as keynote speakers at this year’s Summit! Daymond John, a co-star on ABC’s Shark Tank and clothing brand founder, offers tools to achieve personal and professional goals. Richard Picciotto gives a first hand account of 9/11 and how to prepare for critical events. With many great speeches to look forward to, register for Summit now online at We look forward to seeing you in Chicago!

Vice President Dick Cheney Across four decades of public life, Dick Cheney has served at the highest levels of government during some of the most critical days in modern American history. In the post-Watergate administration of Gerald Ford, the president turned to 34-yearold Dick Cheney to lead the White House staff in the work of restoring the nation’s confidence and waging the president’s 1976 campaign. Dick Cheney In 1989, he was nominated by President Former U.S. Vice President George Bush to serve as Secretary of Defense, and was confirmed unanimously by the and Secretary of Defense United States Senate. In his four years at the If you and your company are Pentagon, Cheney led American forces to vicinterested in special sponsorship opportunities related to Dick tory in Operation Just Cause in Panama, and Cheney’s visit, contact Jon Operation Desert Storm in the Persian Gulf. Cruthers at In 1991, he was awarded the Presidential or 630-468-5127. Medal of Freedom. Through most of the 1990s, Cheney worked in the private sector as chief executive officer of the Halliburton Company in Dallas, Texas. In 2000, George W. Bush asked Cheney to become his running mate and in August 2000, Cheney became the Republican vice presidential nominee. President Bush and Vice President Cheney were inaugurated for the first of two terms on January 20, 2001. In the eight eventful years of the Bush presidency, the vice president was best known for his involvement in national security matters following the terrorist attacks of September 11, 2001. Cheney has been recognized by many as the most powerful and consequential vice president in American history.

Keynote Speaker Agenda Wednesday, January 11 Richard Picciotto

His recount of the events on 9/11 is not one of death and destruction, but a celebration of life and its unpredictable nature. Picciotto offers an eyewitness account of that day. His courage gives him insight on how to be focused and prepared during critical events.

Thursday, January 12 Daymond John

As a brand and marketing expert as well as a co-star on ABC’s Shark Tank, Daymond John has set the standard of excellence in marketing, branding and business. His respected expertise and inspiring story offer audiences practical and invaluable tools to achieve personal and professional goals.

36 | | Construction Equipment Distribution | November 2016

Thursday, January 12 Dick Cheney

Dick Cheney was the influential 46th Vice President of the United States, with a long political career holding the titles of Secretary of Defense, House Minority Whip and White House Chief of Staff. Across four decades of public life,Cheney has served at the highest levels of government during some of the most critical days in modern American history.

Daymond John From humble beginnings to being one of the most sought-after branding and marketing experts in the country, and an investor on ABC’s hit show, Shark Tank, Daymond John has elevated himself to a 21st century renaissance businessDaymond John man, setting the standard of excellence in marketing, Founder and CEO of FUBU, branding, and business. With an entrepreneurial spirit indicative of his future Branding Expert & Investor endeavors, John’s career began at a young age, when he failed to find reasonably priced attire similar to what on ABC’s Shark Tank he saw on TV. He identified the untapped urban apparThursday, January 12, 2017 el space, leading him to create FUBU (For Us By Us), 8:30 am - 10:00 am now one of the most iconic urban fashion brands in the world. John developed FUBU from a mere concept into a $5 billion global fashion powerhouse, in part by pioneering the art of integrating fashion, culture, music, and branding. With expertise sought out by global organizations and Fortune 500 companies, including AT&T, Dell and Pfizer, John now provides insight and consultation through his branding company, Shark Branding.

Richard Picciotto, FDNY Firefighter and inspirational speaker Richard Picciotto was an FDNY Battalion Commander in Manhattan on September 11, 2001. Following the terrorist attack, Picciotto rushed inside the World Trade Center to rescue those inside, but soon found himself trapped in the smoldering rubble of the North Tower after its collapse. Buried for more than four hours, he emerged almost unscathed and was the highest-ranking firefighter to survive the collapse. Chief Richard Picciotto’s gripping, first-person account provides a firefighter’s view of the 9/11 World Trade Center catastrophe and emergency response. Picciotto played a vital role in that massive operation, testified in front of the 9/11 Commission, and has additionally appeared on many major networks, including CNN, the History Channel, and National Geographic. His book, “Last Man Down,” chronicles his experience on 9/11 and has become a bestseller.

Richard Picciotto FDNY Chief and Highest Ranking Firefighter to Survive the World Trade Center Collapse Wednesday, January 11, 2017 8:30 am - 10:00 am

Professional Dealer Education Sessions What’s New?

New to our 2017 Summit, AED is featuring professional dealer education sessions on Tuesday, January 10 - Thursday, January 12!AED wants to provide a convenient program for attendees to grow and develop skills unique to the construction equipment industry. With each session, there are tremendous opportunities to expand on existing knowledge while learning new, valuable information to take back to your dealership. Visit to view all of the on-site educational options available. November 2016 | Construction Equipment Distribution | | 37


▶ Determine how to get the most out of Summit 2017 ▶ Discover key issues for the equipment distributor industry ▶ Communicate & Manage different personality types ▶ Enhance your technician strategy and align your talent ▶ Learn the top reasons why your rent-to-rent fleet is under-performing ▶ Delegate to become a high performing and efficient dealer ▶ Determine marketing strategies for your dealership ▶ Detect how to maximize your parts, service and sales profitability

Outstanding Educational Sessions ▶ Modern Marketing Strategies for Engaging Invisible Buyers Online ▶ How To Get the Most Out of CONEXPO 2017

▶ Innovative Technician Recruiting ▶ Aligning Talent with Your Business Strategy

▶ Dealing With Difficult Customers and Situations

▶ Turning Investment into Margin: How to Make Your Customers Appreciate You

▶ What’s Your Uber?

▶ Does E-commerce Really Work in Our Industry?

▶ The Science Of Silence: Can You Hear Your Body Talking?

▶ Parts Inventory: Valuable Asset or Black Hole?

▶ Keeping You Connected to Your Customers

▶ Maximizing Parts Sales and Profitability

▶ Wine 101 for Business

▶ Drone Industry 101: The Critical Components to Use Drones Effectively

▶ Navigating the New Lease Accounting Regulations

▶ A Financial Perspective on Dealership Operations

▶ Mergers & Acquisitions: Key Issues for the Equipment Distributor Industry

▶ Future Distribution – Rent to Rent is Required!

▶ Forecasting for 2017: An Economic Outlook

▶ Top 10 Reasons Why Your Rent to Rent Fleet is Underperforming

▶ The Evolution of Employment Law: How Social Media, Marijuana, and LGBTQ Rights Impact Your Business

▶ Negotiating the Big Sale: Tips for Aspiring Sales Leaders

▶ The View From the Hill: Risks and Opportunities in the New Political Environment

▶ Predictive Marketing Strategies for the Data-Driven Dealer

▶ A Dealer’s Guide to Navigating Private Equity

▶ VITAL Planning Regimens for Construction Equipment Sales Professionals

▶ The Business Benefits of Minority and Woman Owned Dealerships

▶ The SELL Process: Your Offense and Defense (part 1)

▶ Run, Hide, or Fight: Surviving an Active Shooter Event ▶ Communicating with Impact: Managing Personalities Different than Yours ▶ More than Just Compliance: The Changing Face of Wage and Labor Law ▶ That’s the Way We Do Things Around Here 38 | | Construction Equipment Distribution | November 2016

▶ The SELL Process: Your Offense and Defense (part 2) ▶ Investing in Relationship Capital ▶ Getting More Done: Effectiveness and Time Management ▶ When to Outsource: Partnerships That Pay ▶ Knowing When to Delegate

Summit Featured Events

Summit 2017 will feature special spotlight events that will make your time in Chicago unforgettable. Take a trip back to the 1920s with the inaugural AED Foundation Fundraising Gala. Or walk the floor at CONDEX and browse brands, services and prices under one roof. New to Summit 2017, attendees and guest can learn the history of one of the greatest retail stores and experience the sights and tastes of Chicago's culture during these fun tours around the city. Learn more about these events below: The AED Foundation Fundraising Gala

Tuesday, January 10, 6:00 pm - 9:00 pm The roaring twenties will come alive at this The Great Gatsby themed Gala at the Untitled Supper Club with sounds from the jazz age, casino tables, and our 10th Annual Live Auction presented by The AED Foundation and Ritchie Bros. This event will bring awareness to what matters most, industry-specific education and workforce development.

Construction Dealer Expo (CONDEX)

Wednesday, January 11, 10:00 am - 3:00 pm Thursday, January 12, 10:00 am - 2:00 pm AED's Construction Dealer Expo (CONDEX) provides a unique opportunity for dealers to browse over 100 companies that offer ways to better their dealerships and view items that benefit their customers. CONDEX provides instant access to the latest software and products available for your equipment to help improve productivity and enhance your customer's experience.

Special Guest Attendee Events* Macy's Store Tour and Lunch Wednesday, January 11 at 10:00 am Guests will learn the history of one of the greatest retail stores in retail history and hear the stories of Marshall Field, Frango Mints, and the famous Chicken Pot Pie. Then taste the history with lunch in the famed Walnut Room. See what makes the building an architectural masterpiece.

Chicago Ethnic Food Tour Thursday, January 12 at 11:00 am Take a culinary trip through Chinatown, Little Italy and German restaurants while hearing about Chicago immigrants who made this food coma possible.

November 2016 | Construction Equipment Distribution | | 39

Fee Type Late Registrant Fee Member Fee: Non-Member Fee: Equipment Dealer:Single Registrant Member Fee: Non-Member Fee: Equipment Dealer: 2 Attendees Member Fee: Non-Member Fee: Equipment Dealer: 3 Attendees Member Fee: Non-Member Fee: Equipment Dealer: 4 Attendees Member Fee: Non-Member Fee: Equipment Dealer: 5 Attendees Member Fee: Non-Member Fee: Equipment Dealer: 6 Attendees Member Fee: Non-Member Fee:  Equipment Dealer 7 or More Attendees Member Fee: Non-Member Fee: Spouse/ Family Member/ Guest Member Fee: Non-Member Fee: CONDEX Exhibitor/Suite Participant Member Fee: Non-Member Fee:  Manufacturer/Service/Financial - Non CONDEX Participant Rate Member Fee: Non-Member Fee:

40 | | Construction Equipment Distribution | November 2016




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$1,025.00 $2,050.00

$1,075.00 $2,150.00

Summit Hotel Information AED has secured rooms at the Hyatt Regency Chicago for the 2017 Summit & CONDEX. The Hyatt Regency Chicago is conveniently located near many tourist attractions including The Shedd Aquarium, Soldier Field, The Willis Tower, Grant Park, and Cloud Gate “The Bean”. Stay in a hotel steps away from the Magnificent Mile while enjoying all the exciting activities Chicago has to offer. Please contact the hotel directly to make your reservation (1-312-565-1234) or reserve online at . If calling, please mention that you are attending AED Summit & CONDEX. Room rates start at $133, book early to receive you room! Rooms are available here on an exclusive basis. The room block ends on Friday, December 16. Beware of Unofficial Housing Offers! Please be aware some third party travel companies may attempt to solicit you regarding housing for the 2017 AED Summit & CONDEX. Despite the fact that these companies represent themselves as the “official” housing source, they are not authorized by AED and may provide false information regarding the availability of rooms at the conference hotel. If you are contacted by a travel or housing company, please notify AED at sbrassel@ immediately. Reservations should only be made through the link provided on the AED website ( or by calling the Hyatt Regency Chicago directly and indicating you are with AED. Book within the block! ▶ The group rates have been negotiated especially for AED Summit & CONDEX attendees. ▶ It’s easy! You don’t need to search for a local hotel, simply click here and make your reservation. When booking please notify the hotel you are with Associated Equipment Distributors to get the discounted rate. ▶ Staying within our designated hotel room block allows us to keep your registration costs low and continue to negotiate competitive room rates for all attendees.

Hyatt Regency Chicago 151 East Wacker Drive Chicago, Illinois, USA, 60601 Tel: +1 312 565 1234 ** Reservations must be cancelled 72 hours in advance of arrival to avoid cancellation fee assessed by the hotel.**

Reserve your room today: November 2016 | Construction Equipment Distribution | | 41

CONDEX CENTRAL Thanks to all of our 2016 Exhibitors. We look forward to seeing you in Chicago, Illinois!

Hyatt Regency Chicago 151 East Wacker Drive Chicago, Illinois, USA, 60601 Tel: 312 565 1234

There’s just no place like AED’s Summit!

We’re Serious About Dealer Business AED’s 2017 Summit in Chicago is your starting line for a successful year. We make it easy to stand out amongst the crowd with successful U.S. and Canadian dealer decision-makers. Choose from dozens of opportunities to put your brands in the spotlight, ranging from exhibits and suites, to sponsorships of events, speakers and more. Head to Chicago on January 10-13 and kick off your 2017 business year with a great start. Whether you’ve been serving the U.S. and Canadian equipment market for decades or just entering the industry, we make it easy for you to connect with dealers all in one location. The Summit is strictly dedicated to dealers – end users do not attend this event, so you can focus on your dealer 42 | | Construction Equipment Distribution | November 2016

partners and prospects. Summit promises to deliver an even bigger return for attendees than 2016. Top 3 Benefits of Attending AED’s Summit 1. Two days to introduce your company’s products and services to successful dealers 2. Enhance brand awareness – put a face to your products and services 3. Gain new & existing dealers undivided attention prior to CONEXPO. Kick start your CONEXPO year at AED’s Summit 2017! Jon Cruthers and Sandy Brassel are your personal consultants ready to help you create a memorable AED Summit experience for your company. You can reach them by calling Jon Cruthers at 630-468-5127 or Sandy Brassel 630-468-5126.

Hospitality Headquarters

Create a comfortable environment in which to expand your one-on-one meeting time with dealers. An AED hospitality suite provides you with a private setting for entertaining your business partners and prospects, as well as conducting confidential business meetings. Suites are assigned on a first-come, firstserved basis. Removal of Furniture Furniture in the hospitality suite can be removed for a service fee of $250 plus the cost of a second room for storing the furniture at $99 per night. Removal of furniture will require booking the suite one day in advance and one day after for furniture removal and replacement. Information On Your Hospitality Opportunities Suite Marketing Services: Upon booking your room, suite holders will be provided with the following complimentary marketing services and materials: ▶ Media list and assistance in presenting press releases and/ or product introductions ▶ Listing on AED’s Hospitality Headquarters web page with a

company description and direct link to your website ▶ Listing in CED magazine and product coverage in the show preview issue ▶ Listing in the Summit program Suite Move-In Monday, January 9th after 3:00 pm * This information will vary depending on suite availability. Suite Hours Tuesday, January 10th 8:00 am to 4:00 pm Wednesday, January 11th 10:00 am to 3:00 pm Thursday, January 12th 10:00 am to 2:00 pm All suite personnel must register for Summit in order to participate in the hospitality suites or any part of the convention. The reduced registration fee of $300 for each suite holder provides access to all programs and social events. For more information, contact Sandy Brassel at 630-468-5126 or sbrassel@aednet. org.



Tuesday, January 10 6 to 9 p.m. Join us at one of Chicago’s infamous speakeasies, Untitled Supper Club for an eventful fundraising night with sounds from the jazz age, a live auction, dinner, open bar and entertainment. Untitled Supper Club 111 W. Kinzie Street Chicago, IL 60654 Black Tie Attire Optional

This event has a separate registration price of $200. Tickets can be purchased at The AED Foundation is a 501 (c)(3) educational foundation and tickets are deductible to the extent under the law.

November 2016 | Construction Equipment Distribution | | 43

The AED Foundation: Benefits Are Diverse By Heidi Bitsoli

John Coughlin, president and CEO of Linder Industrial Machinery Company, says The AED Foundation provides a voice for the industry and is an educational tool with tremendous value.


ohn Coughlin, CEO and president of Linder Industrial Machinery Company, based in Plant City, Florida, says the company he oversees has found great value in The AED Foundation's products and services. For the past 25 years The AED Foundation has been focusing on building a dealer model for success within the construction equipment industry. Launching in 1991, The Foundation serves as a voice for equipment dealers in North America, and they continue to bring awareness to the workforce crisis and provide dealer-specific education for the industry."The AED Foundation's benefits are straightforward, providing the interests and enhances our ability to know the infrastructure and dealer needs," Coughlin said. "We’re not without our own advantage, but we get taxed pretty heavily to do our business. It can be very challenging, and we need the U.S. government to know the costs.” For instance, when converting equipment to be sold in Europe and other markets, it’s not simply a case of putting a For Sale sign on the item. There are international restrictions requiring modifications for things such as injectors, filters, and exhaust. Fuel emissions standards are stricter in parts of Europe and in Japan, so there is no universal market. The AED Foundation helps by speaking for the industry about these particular challenges and the expenses to modify equipment. AED’s voice for the industry, and the information it has at hand, “helps contractors and us,” he said. In today’s connected world, “we cover a wide territory,” Coughlin says. For example, Linder is the largest volume Komatsu dealer in the United States. “As contractors, we’ve become more mobile, and it’s nice to have a 'one-stop' to get needs met in the Southeastern U.S.” Linder can, as a result, develop relationships and focus on service. Coughlin has worn a lot of hats in his years in the industry, serving hands-on roles before landing his current post. He attended tech school at SUNY–Alfred. He’s dealt in parts and service, served as a technical rep for Komatsu and a general manager for Columbus Equipment in Ohio, and headed Linder’s Carolinas division for service and parts, before assuming his role as CEO and president in 2010. That came as a bit of a surprise, on some levels, though he says “I thought I had the right skills.” His education paired with work in the field gives him a working knowledge, not just one built on theory. “Komatsu offered real great exposure to best practices.” Coughlin believes the Foundation’s role in educating and shaping the workforce of tomorrow is critical. Things have changed drastically over the decades. “Computerization has had the biggest impact. Computers were used in the 1970s, and really started to take off in the ’90s, but we were nowhere near as dependent on them as we are now.” Now it’s a new way of thinking; technicians must approach the job differently. “It’s very sophisticated,” he says, “even more so with intelligent machine control. With a machine (today) you can program it and be grading in two days.” Job sites are designed on digital maps, plotted ahead on machine. “Sometimes you have to be the king – or queen – of self-diagnostics,” he says. Coughlin also finds great value in The AED Foundation's role in education. Komatsu, for example, has two diesel technician programs, one in North Dakota and one in Oklahoma. The same would be welcome in the Southeastern United States, he says. “The fact that The Foundation works on industry challenges, such as finding technicians, he says, is fantastic." Using best practices to develop templates or ideals for intern training would fulfill a great need. Tools and programs are necessary to further grow development and recruiting efforts, and helping to develop internal training would be beneficial, too. Essentially the goal is to build a better employee, and the services that The AED Foundation provides has a hand in shaping our industry's workforce..

44 | | Construction Equipment Distribution | November 2016




JCB’s Field-Proven Range of Heavy Equipment When it comes to choosing what brand of equipment to represent, why not choose the third largest manufacturer of construction equipment in the world? For over 70 years, JCB has been a leader in equipment innovation. The backhoe…we invented it. Telescopic handers…we pioneered them. With over 300 models of equipment to choose from, we’re sure to have the equipment your customers need, with the parts and service support in place to deliver what they want the most…uptime. JCB currently has dealer opportunities in select market areas across North America. To learn more about how you can put your best fleet forward, visit or email


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Dealer-Specific Education: Long-Term Growth through Employee Reinvestment You know the old saying: Investing in our people will pay dividends in the short and the long term. The same applies to our dealerships.

Is your dealer group getting the right education as a group, or as individuals within the group? How do we continue to raise the bar within each department, not to mention in the entire dealership? From an industrial distribution standpoint, which is where the majority of us fall, we all need to ask ourselves one very direct, yet simple question: are we doing enough to educate our dealership team with dealer-specific education? We have to consider the dealership as being really no different than an individual. By this I mean the entity as a whole must continue to go out and find training resources that add value to the organization. You know the old saying: Investing in our people will pay dividends in the short and the long term. The same applies to our dealerships. If we fail to invest in our people, we will ultimately fail to grow our businesses. So how do we do this? There are more training resources out there than we can mention in this article. However, to start with I would suggest using resources related to the OEM you represent. OEMs do offer many different levels of training, and this training would certainly fall under dealer-specific training, especially in terms of getting your dealership teams up to speed on any and all things related to what your OEM offers. In order for your teams to sell your products or services, those teams must be subject matter experts! Let’s face it, if your employees do not know the products you are selling and all the “features, functions and benefits” of said products, then how can you expect growth? Another source of dealer-specific education would be trade or industrial organizations, such as AED. This organization does offer various continuing education programs, and the ones that I have taken advantage of have been instrumental in helping me and my teams become better balanced and more well-rounded. Yes, this is a plug for AED, but I assure you I was not asked to say it! However, I would be remiss if I did not point out the benefits this organization offers to members and non-members alike.

There are also consultants that offer training in parts, service, sales, rental and financial improvement. Some even offer continuing education courses that are eligible for college credit. As mentioned above, this is not only an individual employee process; it’s something the dealership must do. Yes, this will start with each department’s employees, and from there the departments will do department team training, and from there departments will train with other departments. Before long, you will have all departments acting and working as one. This is, after all, how your customers view your dealership – as one dealership, not as individual departments. How can dealer-specific training improve your dealership’s standing in your respective markets? Well, the answer to this question would be basically endless; but we can point out a few examples. ▶ Improved internal dealership communication 1. Raising dealership, leadership and employee awareness and involvement 2. Leading to top down/bottom up leadership improvement... Leading to improved employee and departmental buy-in ▶ Improved dealership internal departmental collaboration 1. Reducing and/or eliminating the walls or barriers between departments 2. No more silos! ▶ Improved customer satisfaction and retention 1. Customers’ point-of-sale experience 2. Upsell opportunities 3. Growth of your business The three examples listed above cut straight to what matters most for any dealership, and if these items are not in your Top Ten list of important items, then taking a hard look at where you are today should become a priority. Whether you are pleased with your dealership’s results or not, the take-away for any dealership is how to grow the business in good times and bad through dealer-specific training and employee reinvestment.

TROY OTTMER is vice president of Fixed Operations at Doggett Heavy Machinery Services LLC in Houston. Ottmer has worked in the equipment and automotive industry for 24 years. He can be reached at troy.ottmer@ 46 | | Construction Equipment Distribution | November 2016

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Everyone Wins with Business connects equipment dealers with prequalified rental customers.


usiness connects equipment dealers with prequalified rental companies for re-rentals. pairs dealers with rental companies, enabling both to enhance their revenues, limit their expenses, and maximize the values of their fleets by re-renting otherwise idle equipment. Equipment dealers and rental companies know that time is money. Every minute that a piece of equipment sits on the lot is a minute that it could have been generating revenues . In the past, when business was slow and equipment sat idle, dealers had precious few options for increasing traffic. Fortunately, that’s all about to change. Time is money; don’t waste either. Denver-based business is poised to revolutionize the equipment industry, changing the way dealers find customers and vice versa. pairs dealers with rental companies, enabling both to enhance their revenues, limit their expenses, and maximize the values of their fleets by re-renting otherwise idle equipment. Because leverages companies’ existing facilities, software and equipment, they’re able to help equipment dealers expand their customer base and increase their earnings, while ensuring that customers are able to find the equipment they need quickly and efficiently.. According to Tracey Benjamin, VP of Business Development, “ is a breakthrough technology that enables equipment dealers to rent their equipment to prequalified customers through over 14,000 rental locations in the United States,” “It leverages the rental companies’ existing facilities, rental yards, personnel, insurance, software, and most importantly, customer bases, at virtually no cost to dealers. Dealers vastly expand their rentals; rental companies expand their available inventories, and customers get everything they need in one stop. Everyone wins.”’s industry-changing business model was made possible, in part, by the availability of new technologies, including cloud-based inventory management, GPS and telematics, all of which enable us to do business in ways we 48 | | Construction Equipment Distribution | November 2016

never could before,” said Benjamin. The team has extensive knowledge and experience in the equipment industry and has used their deep understanding to develop a service that can actually make the industry more efficient. “It’s happening right now, and is at the forefront. We know and understand the issues faced by both dealers and rental companies. We also have considerable experience with their equipment and their customer bases, making us unique. We don’t just provide software; we provide a mechanism for making the industry better and more efficient.” will go live November 1st Equipment dealers and rental companies are invited to get in on the ground floor of what is sure to revolutionize the industry. As for Benjamin, she’s exceptionally proud of what Re-Rent- is about to accomplish. “We have identified a unique opportunity for industry participants to vastly expand their operations and revenues, while enabling them to be more efficient. she said. “This is not a question of ‘if’ but ‘when.’ The time is now.” An Associated Equipment Distributors (AED) member business, looks forward to networking with other AED member businesses and hopes to become a frequent contributor to AED publications. “The AED has been a tremendous source of industry information and expertise, marketing opportunities, contacts and introductions,” Benjamin said. “We actively look for ways to participate in AED-sponsored events and to contribute to its publications.” Already off to an exciting start, is a business to watch.


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November 2016 | Construction Equipment Distribution | | 49


Rental Decision Point

An analysis to determine the point at which it makes sense to use owned versus rented equipment. By Garrett Schemmel

Vice President and Market Leader

The Rental Decision Point™ is a proprietary metric from EquipmentWatch combining ownership/operating cost rates with retail rental rates to answer a question often asked by equipment managers: “When should I use an owned asset versus a rented asset?” For the average Excavator, Small (6.1-21.0 MT) we recommend that an equipment manager use a rented asset rather than an owned asset, if they use the machine less than 465 hours per year.

What’s in this analysis?

Above, you’ll see a visualization of the Rental Decision Point™ for Excavators, Small, 6.1-21.0 MT, specifically the Caterpillar 312D. To build this graph, we’ve put ownership costs on the Y-axis and meter reads per year on the X-axis. The curve is the ownership costs per hour of an average excavator with the assigned meter reads per year. 50 | | Construction Equipment Distribution | November 2016

The min and max of the X-axis represent the distribution of actual machine usage, coming from our proprietary Utilization Database, a custom database available through EquipmentWatch Consulting. This database was built for both nationwide and 11-regions (increased specificity), and was derived by leveraging the meter reads on machines at the point of transactions. For any model in our database, we show a distribution of machine usage per year (in hours) in 5% increments. In terms of data behind the calculations, for excavators, for example, we have tens of thousands of machines in our benchmark. The blue bar in the middle is the “Rental Rate Zone,” the min and max average hourly rate to rent a piece of equipment, depending on rate type selected. The top bound is the EquipmentWatch Retail Rental Rate, Daily, divided by eight. The lower bound is the EquipmentWatch Retail Rental Rate, Monthly, divided by 176 (our standard for assumed machine use per month). Where do we get our rental data? Through our Retail Rental Partnership Program, we have the most extensive rental data in existence (200+ rental houses), updated quarterly. How can an EquipmentWatch user replicate this analysis using their subscription?

To adjust the hourly ownership costs, use the Internal Charge Rate, Caterpillar 312D (or any model in size class). Once here, go to “Adjust Costs,” modify the “Annual Use Hours,” and click “View Adjusted Hourly Cost” to see how the Ownership Rate has changed. Plug this into your graph. To determine the monthly and daily retail rental rates, use the Retail Rental Rate, Caterpillar 312D (or any model in the same size class). Once here, look for the respective monthly and daily rental rates. By default, the “National Rental Rate” is displayed. For increased precision, if the

location of the rented asset is clear, you can modify the “Region.” Additionally, many equipment managers have contractual discounts with rental partners. Using the manual adjustment feature, you can modify the rental rate to reflect any discounting you may receive. Don’t have access to EquipmentWatch? With our Equipment Manager Package, you can replicate the analysis above yourself. If you are interested in doing this for a large number of machines, contact us at EquipmentWatch Consulting to find out how we can help do this for you.

November 2016 | Construction Equipment Distribution | | 51

On the ground in

CUBA The United States imposed a trade embargo on October 19, 1960, on exports to Cuba except for food and medicine, after Cuba nationalized American-owned Cuban oil refineries without compensation. I won’t elaborate on what has transpired these last 56 By Ron Barlet years, but I recently had the opportunity to AED Board Member visit, along with several of our AED members, this Pennsylvania-sized island that sits just 90 miles from Key West, Florida. Firsthand, were able to absorb for ourselves whether today such an embargo, which the United States remains nearly alone in enforcing, has relevance and whether it at least merits a discussion between our membership and our elected representatives. Landing in Havana, it becomes clear that we have entered a place where time seems to be more 1960 than 2016. Autos and trucks are from many different decades, with an abundance of 1950s Chevys that share the roads with sidecar motorcycles, horse-drawn carts and overflowing buses. Buildings are in need of repair or demolition, and roads off the main thoroughfare are mixes of gravel, asphalt and potholes. We take a quick tour of Revolution Square and arrive at our beautiful 1930s-built Hotel Nacional that could have competed with any hotel 60 or 70 years ago. We immediately meet with economics professor Romero from the University of Havana, who impartially explains that Cuba is in the middle of a very important economic and social transformation. He concludes that the “new scenario” for Cuba’s development is too complex, implying there are many opportunities but also tremendous challenges. My impression is that exiting this time capsule with a lifting of the embargo might not be the smoothest transition. 52 | | Construction Equipment Distribution | November 2016

Off to dinner that first evening, we enjoy our meal at a private sector restaurant known as a paladar, derived from the word “palate,” relating to taste. A paladar is not really private, as all Cuban businesses are either fully government-owned (employing nearly 75% of the population) or partners with the government, considered nonstate-sector jobs (the remaining 25%). Nevertheless, while the exteriors may look like places most of us would never enter, the interiors, typically old homes and small mansions, are very clean, attractive, and decorated in a fascinating eclectic style. They exhibit tremendous artistic expression and freely reuse seemingly any object. The food and drink are very enjoyable, with no weight loss occurring in our group! Old Havana is similar to older European cities, with cathedrals, plazas, and structures that remind us of Spain’s rule hundreds of years ago. Our tour guide fills in many blanks, both past and present, with inputs and answers to our questions that bombard our time-machine experience. A quick stop at one of Ernest Hemingway’s favorite bars provides us with our first taste of mojitos and exposure to the wonderful taste of Cuban rum. Lunch at a state-owned restaurant is just as delicious as our paladar experience, and we begin to witness the importance of tourism and its contribution to Cuba’s GDP. Throughout our trip, the Cuban hospitality workforce speaks pleasant English and attends to us expeditiously and warmly – and is very grateful for the desperately needed tips we leave. We must monitor our cash, since our spending must be converted from U.S. dollars to Cuban convertibles (CUCs) because our American credit cards cannot be used in Cuba. Sunday takes us on a two-and-a-half-hour bus drive to Veradero Beach to have lunch at the former DuPont home known as Xanadu Mansion, and a day in the sun at the adjacent beach resort. Since Canadians and many Europeans have been coming to Cuba for years, they have been enjoying this resort area expedited by a nearby airport that we cannot yet access. The soft sand, the warm clear water, and the music in the background could have placed us in any 21st century beach resort. Our drive back is nearly vehicle-free, as only 30 percent of Cubans can afford cars, which, even secondhand, cost double here. Fuel has increased to nearly $4 a gallon, even as we pass oil drilling rigs and refineries, and we learn that Cuba has found large proven reserves. Partnering with Canada’s Sherritt International as well as other modern-world

countries to support oil exploration and development, this progress is very important today, since their primary supply of oil from Venezuela, purchased in exchange for Cuban doctors and other services, has not been as dependable. We notice modern power lines and poles and learn the electricity grid is adequate for today’s needs. My phone shows mostly five bars as we travel, enabled by the Telecommunications Act of 2015 that authorized President Obama to allow communication and connectivity investment of American as well as foreign companies. Although cell service is frugally used at $2.99 per minute, we mostly opt to wait for highspeed internet access back at the hotel. Our final day takes us on a guided tour of Hemingway’s home that was given to Cuba after his death and is impressively preserved by the government as he left it. Although it is nestled in a very rundown part of Havana, the view and the display of his U.S.-built fishing boat easily take us back to the 1950s. We take a beautiful drive along a parkway toward the Cuban capitol building. It is, incidentally, being renovated, and is nearly identical to the U.S. Capitol building but smaller in size and slightly taller, we are informed. One of the very first new hotels is being built, and we pass a park that includes a bust of Abraham Lincoln. A turn and a few blocks away, we experience the typical dilapidated buildings and dwellings, and streets in need of repair. We ask our guide for a side trip to see where the highest level of Cuban-loved baseball is played and arrive at the stadium that is the home of the Industrials. A few tips and we find an employee who guides us to the stands. The playing surface appears similar to American ballfields, but the stadium itself is closer to what we would be tearing down. We leave before anyone is in trouble and head to our final scheduled meetings before departure. Our meeting schedule has changed several

times, but we finally visit with members of the government tourism and commerce offices, who plead their case as to why the U.S. embargo is impeding their ability to progress. Coincidentally, the $100 combined limit for Americans to return with Cuban cigars and rum has been lifted, but our Cuban representatives are not impressed by these token concessions by the U.S. government. They want the embargo lifted, they want to trade in U.S. dollars, they want Americans to be able to use their credit cards, and they want to not only tap into our American tourism spending, but they want other countries to be free to transact with Cuba without repercussion from the United States. Their response to my question as to their plan if the embargo is lifted comes across as an answer similar to a poor man who has just won the lottery – not very convincing, nor likely a tremendous opportunity for more than a few of our members or our customers. Yet my common sense tells me the embargo has no purpose in this day and age and contradicts the relationships we have with so many other countries that are more restrictive and repressive. The well-educated Cuban people should have the opportunity to reunite with their families abroad as well as be offered the opportunities that their passion for our country only 90 miles away could afford them. If AED schedules another trip, I would highly recommend joining the delegation to visit with government officials and enjoying the safe movement and hospitality the Cuban people are sure to provide. The opportunity to experience this country while it’s still trapped in time will allow you to evaluate whether or not the embargo should be lifted. I believe you will experience an overwhelming appreciation of the hope for a “new scenario” in Cuba – beyond the rum and cigars!

RON BARLET is President of Bejac Corporation and AED’s Western Region Director. Bejac is a multi-line dealer featuring Liebherr, Komptech and Link-Belt, supporting recycling, waste, demolition and forestry segments with locations in California, Arizona and Nevada November 2016 | Construction Equipment Distribution | | 53



How to Attract

Today’s Top Talent W

hy is it so difficult to find and recruit top talent? The answer is simple. Prospective employees have changed how they look for opportunities and how they evaluate potential employers. Job descriptions are no longer effective in attracting and hiring strong candidates. This shift in the contemporary employment marketplace has left most companies struggling to find the right employees. Employer branding has become one of the most critical sources of success and failure for companies looking to bring on new talent. Here’s how companies can position themselves to take advantage of these new opportunities.

Identify and attract

Attracting talented candidates is a difficult task. Most talented professionals are currently employed, and experiencing a certain level of success with their current employer. These candidates are best described as passive candidates, meaning they are not actively searching for new employment opportunities. Traditional methods of identifying and recruiting talent, such as job postings and career advertisements, draw little to no interest from these candidates. Companies adapt to this lack of interest by engaging this passive pool of candidates through direct and indirect methods.

Job opportunities, not descriptions

Job descriptions no longer work in today’s employee marketplace. While they can be an effective tool for attracting active or unem-ployed candidates who are conducting local job searches, they do not reach the pool of talented professionals that companies should be targeting. Most employed candidates have little incentive to formally apply to jobs. Further, discrepancies in the desired background specified by a job description can dissuade otherwise qualified applicants. Many potential candidates do not apply because they think that they are not a match. Companies must shift from posting narrow job descriptions that cause potential candidates to disqualify themselves before the company has even had a chance to engage them in a conversation. Job opportunity postings, in contrast, engage both passive and active candidates. They focus on the candidates, and how the available career openings can benefit them. This type of posting highlights the position, the company, and the rewards of a career change. It gives passive candidates a reason to explore the opportunity.

Employer branding

Employer branding is the term commonly used to describe an

organization’s reputation as an employer. It has quickly become one of the hottest topics in our marketplace, due to the availability of information via the internet. A company’s reputation is now one of the most important factors that candidates weigh when they consider whether to join a new company. Employers must make sure that a company’s branding is consistent throughout the entire organization. Technology now gives potential candidates easy access not only to company-generated information, but also reviews, news, and other press from outside sources. As a result, candidates researching your company form their own opinion about the organization before their first interview. In this age of information, it is essential that your company’s website accurately describes your culture, the story of your organization, and any other factors that the company deems important to attracting talented professionals who will be a good fit. To build your employer brand effectively, the information, message, and culture your company conveys through its website and marketing materials should be consistent, motivating, and positive. They should include testimonials from current employees highlighting their reasons for joining and staying with your organization. Encourage your employees to share their stories and experiences with others. Your employees are the voice of your employer brand.

Know your audience

Before you can properly define your employee value proposition and your employer brand strategy, you must know your audience. Who do you want to hire? What are their interests? What can you offer them that makes you an attractive company to work for? Define your audiences and then tailor your messaging to each specific one. For example you might use one message to target recent college graduates, and another to reach experienced professionals. Will a local, regional, national, or global message be most effective? Knowing your audience and investing in effective messaging will help you land the best candidate in less time while reducing your overall hiring cost. Companies must acknowledge the shifts in how potential candidates determine whether and why they should change employers or careers. Understanding what is most important to the desired candidate audience allows a potential employer to connect with prospective employees who can contribute to the organization and help it grow. Strengthening your employer brand plays a major role in engaging top-notch candidates who will be happy in your company culture. Companies that embrace contemporary recruiting strategies stand the best chance of hiring and keeping today’s top talent.

JUSTIN HUBBARD is director of heavy-equipment recruiting at the Richmond Group USA, a professional search firm in Richmond, Va. He can be reached at 54 | | Construction Equipment Distribution | November 2016




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Speaking AED with the

Speaker of the

House A

By Scott McPherson n AED delegation led by the association’s Senior Vice President Diane Benck of West Side Tractor in Naperville, Illinois, and President and CEO Brian McGuire held a closed-door meeting with House Speaker Paul Ryan (R-Wis.) on September 1 in Milwaukee. AED Senior Regional Manager Mike Dexter and Senior Director of Government Affairs Daniel Fisher also attended. McGuire opened the meeting by discussing the importance of completing work on the Water Resources Development Act (WRDA) and reauthorization of the Carl D. Perkins Act in 2016. McGuire pointed out to the Speaker that enacting a WRDA bill this year would create jobs, spur economic growth and support American competitiveness. A 2012 AED-commissioned study by researchers at the College of William & Mary found that every one dollar invested in “conservation and development structures” (such as those supported by WRDA) leads to $10.59 in economic output (GDP) and generates $3.18 in tax revenues, including $2.12 for the federal government and $1.06 for state and local entities, over a twenty-year period. Regarding Perkins Act reauthorization, McGuire referenced a new study completed this year by the College of William & Mary which found that the technician shortage is costing equipment dealers approximately $2.4 billion each year in lost revenue and economic opportunity. McGuire urged Ryan to bring to the House floor the bipartisan

56 | | Construction Equipment Distribution | November 2016

Strengthening Career and Technical Education for the 21st Century Act (H.R. 5587). The AED-endorsed bill is a great step toward tackling the country’s technical education crisis. Ryan indicated that he recognizes the importance of both issues and that he will confer with House Majority Leader Kevin McCarthy (R-Calif.) who handles House floor scheduling issues. On the issue of tax reform, Speaker Ryan emphasized the need to make the tax code more competitive for manufacturers and small businesses. He noted the lack of international competitiveness in our current code. His overall goal is to lower the tax rate for companies and individuals. Benck mentioned the importance of like-kind exchanges (LKEs) (Sec. 1031 of the Internal Revenue Code) to construction equipment distributors and the impact repeal of the tax provision would have on AED’s membership. The Speaker stated that while he has no problem with LKEs, his ultimate goal remains lowering overall tax rates. The last in, first out (LIFO) tax accounting method was also discussed. In recent years, LIFO has been targeted for repeal by the Obama administration and many on Capitol Hill. While Speaker Ryan remains supportive of maintaining LIFO in the tax code, he’s concerned that the administration will repeal it through the regulatory process, leaving companies with no transition period and without providing lawmakers with the revenue that repeal would provide, which could be used to lower tax rates. Ryan referenced House Ways and Means Chairman Kevin Brady’s (R-Texas) tax reform blueprint, which proposes to repeal the federal death tax and business interest deduction, but permits 100 percent immediate expensing. AED 2016 Washington Fly-In attendees will remember Brady as a special guest at the association’s Capitol Hill reception. While emphatic that the country needs a more competitive tax code, Ryan commented that comprehensive tax reform’s chances very much hinge on Republicans controlling the Senate and the White House after November. Fisher then thanked Ryan for his leadership last December, which resulted in a multiyear surface transportation reauthorization, reinstatement of bonus depreciation, and permanently increased Sec. 179 expensing levels. Ryan elaborated on the importance of both the highway bill and the capital investment incentives for creating jobs and keeping the economy moving forward. In concluding the meeting, McGuire stated, “We hope Congress’s work for the year isn’t over. To place the economy and the construction sector on solid footing for many years, we strongly urge you to make the most of the waning legislative days left in this session and enact Perkins Act reauthorization legislation and a WRDA bill.” Ryan’s family, which owns a mass excavation and site-work contracting company, has been a long-time customer of Benck’s company, West Side Tractor. “Speaker Ryan’s extended family is in our business. As such, he understands the issues we face and I am convinced he will do whatever he can to move them forward expediently,” she remarked. AED’s impact that day was felt far beyond the private meeting with Speaker Ryan. At a later reception, the AED delegation discussed the issues important to the industry with several members of the Wisconsin congressional delegation, including Reps. Sean Duffy (R-Wis.), Reid Ribble (R-Wis.), Jim Sensenbrenner (R-Wis.) and Glenn Grothman (R-Wis.). The association also had a conversation with Michael Gallagher, the Republican nominee to succeed Rep. Ribble in Wisconsin’s 8th district. Governor Scott Walker (R-Wis.) and former governor and U.S. Health and Human Services Secretary Tommy Thompson (R-Wis.) also attended the event in Milwaukee.

November 2016 | Construction Equipment Distribution | | 57

AED Urges Permit Approval in Penn Pipeline Project By Kimberly R. Villiers Associate, Obadal, Filler, MacLeod & Klein, P.L.C. The Pennsylvania Pipeline Project (known as “Mariner East II”) – blueprinted to run 350 miles across Pennsylvania, West Virginia and Ohio – is currently on hold pending the approval of permits by the Pennsylvania Department of Environmental Protection (DEP). The DEP has requested additional information from the developer, Sunoco Logistics, who must submit the requested information by Nov. 7 (or seek an extension) if the project is to move forward. State regulators should work closely with Sunoco’s management to resolve and expedite the approval process, as both the national and local economies are dependent on pipelines such as Mariner East II. In a Sept. 15 letter to DEP officials, AED pressed the agency to approve the Mariner East II permits on the basis that “[t]he expansion and modernization of the state’s pipeline infrastructure is critical to the state’s continued position as a leader in America’s new energy economy.” Moreover, the increasing need for clean and inexpensive energy should persuade state regulators to support and invest in its production. The oil and gas industry plays an important role in strengthening the state’s economy and assuring U.S. energy independence. According to the Pennsylvania Independent Oil & Gas Association,

the industry has already generated an estimated $2.1 billion in state and local taxes since 2008. Continued development of the Utica and Marcellus shales will enable the oil and gas industry to create more than 300,000 new jobs and contribute more than $34 billion to the state’s economy in the coming years. Because approximately 51 percent of Pennsylvanian’s rely on natural gas as their primary heating fuel, utilizing local shale deposits is vital for ensuring the state has an abundance of clean and inexpensive energy in the future. The Mariner II pipeline will not only transport energy across the state but also bring an estimate $3 billion dollars of outside investment into other sectors of the economy. Over a two-year period, the project will create 6,900 construction jobs, more than 15,000 jobs in construction-related industries, and generate more than $1.9 billion in wages. The project will also require the state and the construction industry to invest millions in tools and equipment to bring the project to fruition. For this reason, the Mariner II pipeline project is particularly important to AED and its members. State regulators should carefully evaluate the pending permits and remove any further roadblocks from the project’s completion. Not only will the construction of the Mariner II pipeline be good for business, but is it also a sound policy decision.

KIMBERLY R. VILLIERS is an associate of Obadal, Filler, MacLeod & Klein, P.L.C., the firm that provides AED’s government affairs program, assisting with international aviation safety regulation compliance. She is a licensed New York attorney and received her Master of Laws (LL.M.) at the Georgetown University Law Center in May 2016.

58 | | Construction Equipment Distribution | November 2016

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Introducing AED’s

Management Development Institute (MDI)


ED members asked for a program to grow the Next Generation of Managers as Equipment Distribution Business Leaders.

AED has responded with Management Development Institute (MDI), a quickhitting, broad-based program that compares favorably with prestige leadership programs at major universities, and goes beyond them by integrating BOTH industry-specific content and leadership “soft skills.” MDI is designed to improve the odds of your future success by developing your next generation talent bench so they can lead effectively in today’s demanding work environment, and grow to meet tomorrow’s business challenges. MDI will help you retain your talented high-potentials, who expect professional career development as part of your employment promise. Ask yourself: Are your next-level managers able to elevate their performance and that of their teams to a higher level as your business grows? Are your managers able to see the big

Three 2.5-day sessions over 6 months = $4,999 SPACE IS LIMITED MDI PHILOSOPHY & “QUALITY FIRST” APPROACH

Integrate Leadership Development and Business Content for significant program ROI Respected Industry Leaders and Leadership Development Experts facilitate interactive, in-depth learning sessions with industry-relevant case studies, role plays, discussions and simulations Challenge talented participants to build strong peer relationships to deepen business knowledge and learn from each other

picture and take on more responsibility so your business can expand through growth or acquisition? Are you building a bench of high-potential managers who can run the business for you? Have you prepared for a transition in leadership from today’s top exec to your next generation? Are you giving your high-potential managers what they expect -- Professional and Career Development -- as part of the employment deal? Want to be sure your best people stay engaged for the long term? Are you applying state-of-the art resources to development of your best talent? Do you need to challenge the thinking of your management team so they can scale up as your business changes? Are you confident you have enough depth in your succession plan? Would you like some people insurance for your business? Have you been looking for a way to retain your high-potential managers by offering them the quality and intensity of a significant Leadership Development experience with a workable time commitment and an affordable price point?

Share insights in mini-workshops based on key leadership assessments, including Myers Briggs Temperament Indicator (MBTI), Fundamental Interpersonal Orientation Behavior (FIRO-B), Thomas-Kilmann Conflict Mode Instrument (TKI), and Prevue Assessment Include 360-feedback from the people who know you best – your manager, your peers, your subordinates, and others –AED Management Excellence Assessment (ME360) Ensure on-the-job skills application and accountability with One-on-One Coaching by a professional Coach throughout the 6-month Program MDI INSTRUCTORS Well-known AED Experts facilitate the

60 | | Construction Equipment Distribution | November 2016

workshops and share in-depth knowledge as keynote speakers: Leadership & Organizational Development: Patsy Svare Rental: Larry Kaye Equipment Dealer Finance: Rex Collins Employment Law: Maureen Murphy Supplier Relationships: Matt DiIorio, Roy Kern (to be confirmed) Sales / Service / Parts (names to come) Business Simulation “War Games” Consultants (names to follow) MDI COACHES A professional Coach will work closely with each Participant throughout the 6-month program: ▶ Develop practical insights, challenge old habits, apply learning to changes on-the-job

▶ Provide one-on-one coaching throughout the 6-month program ▶ Debrief assessments, including AED ME-360 ▶ Create an Individual Development Plan (IDP) based on business priorities ▶ Ensure support of Dealer Top Executive and accountability for ROI MDI ASSESSMENTS As pre-work, Participants take a battery of leadership assessments to create self-awareness and highlight opportunities for professional growth. AED’s Management Excellence 360-Feedback Assessment (AED ME-360) is a customized multi-rater assessment designed for AED dealership managers. The assessment gathers both quantitative and narrative feedback from the Participant, as well as the Participant’s Manager, Peers, and Subordinates, and Others, comparing these ratings to the self-rating. Topics evaluated in the assessment include both functional business skill requirements (e.g., Sales, Rental, Parts, Service, Finance and Operations), as well as managerial leadership “soft skills.” Myers–Briggs Temperament Indicator (MBTI) is a self-report questionnaire that indicates psychological preferences in how people perceive the world and make decisions. One of the most popular business assessments, MBTI is used across the globe for personal insights and development. Fundamental Interpersonal Orientation-Behavior (FIRO-B) identifies individual behavioral tendencies, so you understand your preferred approach to expressed behavior and wanted behavior varies across the dimensions of Inclusion, Control, and Affiliation. FIRO-B is especially useful for developing increased personal awareness and building emotional intelligence in dealing with others. Thomas-Kilmann Conflict Mode Instrument (TKI) assesses an individual’s reliance or over-reliance on specific patterns for managing conflict. The model of managing conflict provides insights that strengthen the individual’s ability to interact successfully in any conflict situation. Prevue Assessment is an integrated assessment that measures abilities, motivation and interests, and a dozen personality traits and behavioral patterns that have direct bearing on performance. Prevue is used in selection with results compared to job-specific benchmarks. MDI “SKILL-BUILDER” CONTENT Curriculum covers major areas of running a dealership, including Finance, Sales, Service, Rental, Parts, and Operations. [content suggested below will be refined based on input from Keynote Instructors]


▶ Applying KPIs (Key Performance Indicators) to grow your dealership ▶ How to determine if a dedicated logistics service is a smart dealer decision ▶ Understanding the cross-functional Balance Sheet ▶ Variance, flat-rating, rent-to-rent or rent-to-sell ▶ Understanding the financial impact of an increase in rental fleet size ▶ How to create a budget for employee development and set goals in line with the company’s employee development program


▶ How to create an environment in the service department where professionalism and customer satisfaction are trademarks of all employees ▶ Understanding the financial impact the rental business has on the success of the service department. The rental department is the best customer for the service department ▶ Breaking down silos between service and other departments; building cohesion across profit centers ▶ How to get everyone in every location, in every shop on the same page regarding developing technicians and filling key positions. Dealers with a robust technician workforce experience more success because of their ability to get everyone on the same page and be brand ambassadors.


▶ Rent-to-Sell vs Rent-to-Rent decisions ▶ Identifying and implementing communication and operational process improvements between the rental and service departments ▶ Communicating the importance, relevance and “here-tostay” significance of the rental department to the rest of the profit centers. ▶ De-bunking the impression that rental is a fad ▶ Getting your team on the same page with a changing business model


▶ How sales teams can use big data to refine their sales strategies ▶ Avoiding the duplication of sales and customer outreach efforts – maximizing your relationships with customers ▶ Understanding big dealer / small dealer competitive advantages


▶ When is the time right to switch to a centralized parts warehouse model? Or is it even right for the business at all? ▶ The future of automation in the parts department: Opportunities, impact on overhead, and impact on customer experience ▶ How to create an environment in the parts department where professionalism, customer service, and satisfaction are a trademark of all employees in the department ▶ Creating a plan to teach parts department employees the financial side of the business


▶ Understand trends in employment laws across various states ▶ Use the full range of tools that ensure quality hires; create a competency-based Interview Guide; conduct a Behavioral Interview to identify the real talents of your candidates; apply the insights of Prevue Assessment; see how employment laws support good business practices ▶ How to implement an employee development program that supports business growth and takes generational differences into account ▶ How to break down silos between departments and establish a workplace culture that reflects YOUR dealership brand November 2016 | Construction Equipment Distribution | | 61

>> DEALER DEVELOPMENT NEW in 2017: AED’s Management Development Institute (MDI)

MDI offers attendees the opportunity to strengthen their leadership abilities, explore connections across business lines, deepen their functional knowledge and participate in workshops. MDI sessions are facilitated by expert leadership development professionals and business instructors, with executives from across the association participating as instructors.

Learn more at

2017 AED Summit January 10-13, 2017 Hyatt Regency Chicago, 151 East Wacker Drive, Chicago, IL Parts Manager Development Seminar- Level 1 March 21-22, 2017 Hyatt Place Atlanta Airport North, 3415 Norman Berry Drive, East Point, GA Service Manager Development Seminar- Level 1 March 23-24, 2017 Hyatt Place Atlanta Airport North, 3415 Norman Berry Drive, East Point, GA 2017 Washington Fly-In April 4-6, 2017 2017 Financial /HR Symposium April 26-28, 2017 Hyatt Regency Miami, 400 S.E. Second Ave., Miami, FL Basic Rental Management Seminar May 18-19, 2017 Embassy Suites by Hilton Baltimore at BWI Airport, 1300 Concourse Drive, Linthicum Heights, MD Equipment Business War Games (Test Drive) June 5-6, 2017 Hilton Rosemont/Chicago O’Hare, 5550 N River Road, Rosemont, IL

62 | | Construction Equipment Distribution | November 2016

For more information and to register, visit 2017 Leadership Conference August 20-22, 2017 Fairmont Sonoma Mission Inn & Spa, Sonoma, CA Parts Manager Development Seminar- Level 2 September 26-27, 2017 Hyatt Regency St. Louis at The Arch, 315 Chestnut St, St. Louis, MO Service Manager Development Seminar- Level 2 September 28-29, 2017 Hyatt Regency St. Louis at The Arch, 315 Chestnut St, St. Louis, MO Advanced Rental Management Seminar October 12-13, 2017 Hyatt Regency Cleveland at The Arcade, 420 Superior Ave, Cleveland, OH Branch Manager Seminar November 9-10, 2017 Hilton Phoenix / Mesa, 1011 W Holmes Ave, Mesa, AZ 2018 Summit January 15-19, 2018 Las Vegas

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Terramac.........................................................23 Unified Purchasing Group...............................55

STATEMENT OF OWNERSHIP MANAGEMENT AND CIRCULATION (Required by 39 U.S.C. 3685) 1. Title of publication: Construction Equipment Distribution 2. Publication Number: 0130-160 3. Date of filing: September 30, 2016 4. Frequency of issue: Monthly 5. Number of issues published annually: 12 6. Annual subscription price: $79.00 7&8. Location of known office of publication and headquarters: 650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173. 9. Publisher: Jason Blake, Associated Equipment Distributors, 650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173. Editorial Director: Sara Smith, Associated Equipment Distributors 650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173. 10. Owner: Associated Equipment Distributors, 650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173. 11. There are no known bondholders, mortgagees and other security holders. 12. The tax status has not changed in the past 12 months. 13. Title of publication: Construction Equipment Distribution 14. Issue date for circulation data below: September 2016 15. Extent and nature of circulation: Average No. copies Single issue each issue during nearest to preceding 12 months filing date A. Total number of copies printed 2,383 1,500 B. Paid and/or requested (outside county) circulation (Form 3541) 1,760 1,074 Other classes mailed through the USPS 150 108 C. Total paid and/or requested circulation 1,910 1,182 D. Free distribution by mail E. Free distribution outside the mail 0 0 Total free distribution F. Total distribution 1,910 1,182 G. Copies not distributed 473 318 H. Total 2,383 1,500 I. Percent paid and/or requested circulation 100% 100% 16. This statement of ownership will be printed in the November issue of this publication. 17. I certify that the statements made by me above are correct and complete: (Signed) Martin Cabral, Production Manager, 09/30/16.

November 2016 | Construction Equipment Distribution | | 63



When Gas Prices Go Down, Fill Up And Drive Defensively Reducing distracted driving doesn’t just make your drivers safer. It can help them react in time to avoid an accident caused by the actions of other drivers.

Q: I’ve heard lower gas prices have led to more road traffic, resulting in more auto accidents. What do we need to do to reduce the risk of auto accidents at our dealership? A: A Jan. 28, 2016, article in Fortune magazine by Brad Tuttle described “How cheap gas can be deadly.” In it, the author cited studies on gas prices and traffic fatalities. One in Oregon suggested that cheaper gas meant more vehicles on the road, increasing the likelihood of traffic fatalities by 13 percent. Another, this one covering the state of Minnesota, linked a 20cent drop in gas prices to an extra 15 deaths over the course of a year. The article also reported the possibility that cheap gas also encourages looser driving – more rapid acceleration and braking, speeding, and other habits that burn fuel faster. What can a dealership do to reduce the risk of an accident when there are more drivers out there driving less safely? While we can’t control the number of drivers on the road or how they drive, we can adopt strategies that lessen the impact of these factors. Avoiding accidents by

preventing distracted driving is the key. ▶ Develop and issue a hand-held device policy strictly prohibiting the use of any such device or technology while driving a vehicle. Require employees to pull over before taking or placing a call, or using a mobile device. ▶ Distribute your policy annually to all drivers and require they sign an acknowledgment confirming their agreement and commitment to follow your requirements. ▶ Charge all management overseeing drivers with the performance goal of actively enforcing the dealership’s hand-held device policy. Measure this in performance appraisals. ▶ Reinforce with all management staff how critical their leadership is in regards to this risk management practice. Adherence by management and ownership cannot be understated. Reducing distracted driving doesn’t just make your drivers safer. It can help them react in time to avoid an accident caused by the actions of other drivers. Preventing distracted driving makes the road – and your lot – safer.

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.

64 | | Construction Equipment Distribution | November 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





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 proactive 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 Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. 73-659

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November 2016: Summit 2017 Chicago  
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