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January 1st, 2016 #09198 Page #30 TRUCKS & TRAILERS
2016……Wait….What?!?! That was my reaction when I realized last week that 2016 was right around the corner. Well, actually I hit a stark realization around the middle of December when I had a birthday and could not figure out how I got here. You know, to this place in time. It seems like yesterday that I was a hairy legged punk kid racing around on my motorcycle. But, that is another story. 1999 ASI/Haulin 42'-60' So, sitting at my computer to write this article, I started thinking Expandable Trailer about how we all got to 2016. The last 10 years had a little of everything. •Hydraulic Lift Neck We were all riding high when economic disaster struck. Then came the •Sliding Tandem Axles lean years where we all tried to figure out why we bought that last brand new piece of equipment instead of •Air Lift Load Control looking at good used equipment…..oh yes…..I remember…..we were riding high…..making money….letting •DOT is not current ego get in the way of sound business decisions…….that’s it. Then we all focused on pulling in the reins and $8,500 FOB IL. Wasserman & Associates worked hard at staying in business. We learned how to do much more with fewer people. Everyone became 800-382-0329 more productive and more knowledgeable about their business. Instead of making money by accident we www.wasserman-associates.com became experts in cost control. We all learned how to manage debt service and how to make a profit in the toughest of times. Then as things started to come back economically we would not let ourselves be deceived. We were absolutely going to be more cautious. We were going to maximize efforts with existing equipment and be certain that we needed more before even looking at a purchase. Could we squeeze another board foot of production from existing equipment? So, here we are. In speaking with a number of equipment manufacturers and salespeople I have learned a great deal. One of the things I learned is that I have a friend that must be an equipment savant. He called it way before anyone else. He said, “Look, everyone has been holding off on buying equipment. When the economy stabilizes the first equipment to be purchased will be saws. They are all using older technology and they will want to 2015 Precision Equipment get more productivity with a newer saw.” He was correct. First, all of the used saws left the market. They Roll-Off Trailers sold out quickly. A lot of good solid used equipment went overseas. It didn’t take long before orders for 40', 48' and 53' Fixed Lengths. 36' to 51', new saws started piling up. All of my friends in the saw business tell me they are 9-18 months out on saw 42' to 60', 46' to 64', 50' to 70' and 53' to 80' deliveries. I know, right?......it sounds absolutely insane. My “savant buddy” explained his thoughts further Expandable Lengths. 102" Wide. Air Lift by saying, “Pressing equipment, like gantry systems, will last a while longer, if maintained properly.” That ICC Bumper. Self Contained Hydraulic is true. Most pressing equipment will outlast a saw. But, now that we have some positive growth behind us, Power Unit. Spring Loaded Composite component manufacturers will start looking at upgrading presses and other production equipment. Finding Fenders. Dual Rear Rollers. New Low Pro Tires. Air Operated Roller Pin Lock System. the right equipment is the primary concern. Air Operated Load Control System. Sliding In the past we all witnessed companies automating simply for the sake of automation. They didn’t really Air Ride Suspension. Strobe Lighting. improve their throughput, they just automated and capacity remained static. A lot of companies automated Mesh Between All Rollers. Patented Load before the downturn and took on a pile of debt. This forced some of those companies out of business. Lifts. LED Lighting System. ExtendThey couldn’t manage the debt load when the economy moved in a negative direction. I place a lot of the a-Rail. 4" x 35' Load Straps. Patented responsibility on slick salespeople that didn’t evaluate the need of the manufacturer. They were simply making Strap Locks. Strap Winches. Dove Tail a sale. Of course, the buyer must take some responsibility as well. Evaluate your need. Do you really need on Rear of Trailer. Hydraulic King Pin the most automated, most expensive piece of equipment? What is the return on investment? Can you reduce Plate. Removable Headache Rack. 7 Way labor with the new equipment? Will the new equipment increase productivity? Do you have other bottlenecks Receptacle on Rear of Trailer. Split Rollers. Sliding Winch System. Aluminum Tool Box. that limit your productivity? These are all questions that must be asked and answered before deciding on any Trailer is Sandblasted & Primed with PPG purchase. That goes for buying new or used equipment. Polyurethane Paint Wasserman & Associates There are a lot of very bright people out there working as consultants that can provide an objective 800-382-0329 outside perspective. Yes, it costs money to have consultants provide an evaluation and recommendation. But, www.wasserman-associates.com it could be far less expensive than overreaching on a piece of equipment that isn’t going to provide the result you are trying to achieve. Reach out to your key people internally and ask for a solid reason for a new piece of equipment. Also, use your relationships with key suppliers for their opinion. If they have the best interest of your business in mind they will give you good solid information and not try to simply make another sale. Many of your suppliers have worked on both sides of the industry and have experience that could be very helpful in evaluating needs. So, there we have it. How we got here and how we should move forward. Move deliberately. Move cautiously. Make investments in your business carefully and with as much input as you can. Be certain that if the economy takes a step back (as it most surely will) that you have your debt structured in such a way that you will be able to remain in business and profitable. It all sounds pretty simple. Make a sign and post it in places you will see it every day. The sign should be simple. Mine simply says, “Think”. Those of you that Th e know me must be wondering about that……now, about that motorcycle story….. Component Manufacturing
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Carl Schoening - VP Business Development EAGLE METAL PRODUCTS 12300 Ford Road, Suite 110 | Dallas, TX 75234 www.eaglemetal.com PHONE: 800-289-5627
Serving the Structural Building Components Industry
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FAX: 800-524-4982