Erb Equipment 70th Anniversary

Erb Equipment Celebrates 70 Years of Customer Satisfaction Proactively seeking used tractors to buy and recondition, Alvin Erb sold them outside of his grocery store at 8821 Gravois Road in the St. Louis suburb of Affton.

By Giles Lambertson CEG CORRESPONDENT

diverted to produce military equipment and materials. Due to the void in production, farm tractors were an example of equipment that was difficult to obtain during these years.

Raised on a farm in Illinois, Alvin Erb saw an opportunity to help Missouri and Illinois farmers obtain tractors to sustain their livelihoods. Erb had moved across the Mississippi in the late 1930s to Alvin Erb founded the become a grocer. His entrepreneurial company in 1943 when the country was caught instincts led him in a new direction when up in World War II. he realized the shortage of agricultural equipment. Proactively seeking used tractors to buy and recondition, he sold them outside of his grocery store at 8821 Gravois Road in the St. Louis suburb of Affton.

His freshly repainted tractors were of many colors and brands — green Olivers, gray Fords and orange Allis-Chalmers to name a few.

Just one year later, however, in 1944, a representative of the John Deere Company in Moline, Ill., identified Erb as a promising prospect for a Deere dealership. Forging the relationship between Erb and John Deere Inc. changed the color of the Gravois Road inventory to Deere green.

Success as a dealer didn’t come immediately. “It took a while for the prosperity boom after the war to put money into the hands of the consumers. It wasn’t until the 1950s that people could afford decent homes,” said Bob Erb, chairman and son of Alvin, who was born in the building that housed the original grocery store opened by his father.

Celebrating 70 years of success as a family-owned company and a premiere dealer of John Deere construction and industrial equipment, Erb Equipment Company pays due respect to its past. On a rock-solid foundation of excellent customer service and non-negotiable family values, Erb Equipment has ambitious plans to grow the business for many generations to come.

Unwavering focus on both employee and customer satisfaction has been the high-performance fuel that has propelled Erb Equipment through 70 years of accomplishments and milestones.

“Fundamentally, our success is the result of serving customers with employees who are happy,” said Carrie Roider, who became chief executive in 2012. “We invest a lot of time and money, particularly in training, to ensure that our employees are engaged in the company’s work and confident in their positions. If they are satisfied in the employment situation, they can produce a satisfying product for our customers. “ “Subsequently, we will not be taking the company in a different direction. We are committed to improving our capability to push our dealership to be the best,” added Gregg Erb, president and director of sales.

An Upstart During the War Years Carrie Roider and Gregg are siblings and the third generation of the Erb family to head a business that their grandfather, Alvin Erb, founded in 1943 when the country was caught up in World War II. It was a time of scarcity for the commercial economy as manufacturing assets were

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70 YEARS OF COMMITMENT

Working side by side with Erb for 70 years.

Congratulations on 70 years of operation, Erb Equipment. Here’s to many more years doing business in the construction industry.

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Congratulations on Erb Equipment’s 70th Anniversary and wishing them continued success.

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Post-war homebuilding in the 1950s coincided with Deere’s introduction of tracked equipment for industrial and construction industries. Erb Equipment evolved in tandem with the Deere product line as yellow heavy construction equipment eventually replaced green farm tractors in the Erb Equipment yard.

Growth and Expansion Currently, there are eight Erb locations in Missouri, Illinois, Kentucky, and Indiana. All of the locations are full-service Deere Construction equipment centers offering repair parts, field service, used equipment, rentals, and a full line of new Deere machinery. The Erb headquarters has remained in (L-R): Ken Erb, Marilyn Asinger, Bob Erb, Gregg Erb (on tractor), Gary Erb, Jim Asinger, Carrie Roider and Karen the St. Louis area, moving from Matzenbacher.

Affton to Sunset Hills in 1959, and to Fenton, its present location, in 1988.

With the passing of Alvin Erb in 1973, Bob Erb headed a group of family members including his brother, Ken, sister, Marilyn (Asinger), and Alvin’s brother, Willard Erb until his death in 1978, as managers of the business. The company expanded outside of the St. Louis area, opening a branch store in Cape Girardeau, Mo., approximately 100 mi. south of its headquarters. To spearhead the new store, the Erb family chose Dave Heisel, an experienced equipment salesman, with whom they were familiar.

Heisel came aboard as a stockholder in the company and managing partner of the Cape Girardeau facility. It was the beginning of a working relationship that spanned more than 30 years — 13 years managing the Cape Girardeau location with the remainder of his career spent as the general sales manager based at the St. Louis headquarters.

“I never felt like an outsider at Erb because I fully shared the family’s desire to see the company grow. It was a good fit for my skills and talents, and spending the majority of my career with Erb was a great experience.”

David L. Heisel Retired, Former Director (L-R): David L. Heisel, vice president; Robert S. Erb, president; and Kenneth C. Erb, vice president of Erb Equipment Companies in 1987.

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The Paducah, Ky., facility.

Now retired, Heisel said, “I never felt like an outsider at Erb because I fully shared the family’s desire to see the company grow. It was a good fit for my skills and talents, and spending the majority of my career with Erb

was a great experience.”

In the early 1980s, Erb Equipment opened locations in Foristell, Mo., and Mt. Vernon, Ill. Stores in Paducah, Ky., and Cuba, Missouri joined the roster in the

1990s. In 2009, the acquisition and rebranding of KW Equipment Company, with locations in Evansville, Ind., and Owensboro, Ky., paved the road for Erb’s expansion into these markets.

The employees of the Wentzville, Mo., location.

The employees of the Paducah location.

Erb Equipment’s Wentzville, Mo., facility.

70 YEARS OF COMMITMENT

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In the early 1980s, Erb Equipment opened locations in Foristell, Mo., and Mt. Vernon, Ill. Stores in Paducah, Ky., and Cuba, Mo., joined the roster in the 1990s.

The employees of the Mt. Vernon location.

The company’s appetite for growth remains a driving force. The Evansville store was relocated and expanded in 2012. Now, a larger, more prominent parcel of land has been purchased for relocation and the construction of a new facility twice the size of the outgrown store in Owenboro, Kentucky.

The employees of the Cuba, Mo., location.

“We do $13 million a year in sales at our Owensboro location, but we have the potential for so much more,” Roider told the Daviess County, Kentucky fiscal court at a recent hearing to uphold a rezoning decision that enabled the purchase of the property for light industrial use.

Recession Strategy Erb Equipment learned many lessons in survival during the late 1970s, the worst of economic times in the industry. Heisel remembers those years, which were marked by 21 percent interest rates and soaring inflation. “There was growth to be had even in those tough times.

Erb’s Cuba, Mo., facility.

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70 YEARS OF COMMITMENT

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7 n o y n a p m o C t n To Erb Equipme

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Wicker Machine Company Congratulations on your impressive milestone!

EQUIPMENT COMPANY

We wish you the best for many years to come!

It is a pleasure to work with you and we look forward to many more years of a successful relationship.

1400 East Ave N • Hollandale, MS 38748 • 1-800-748-9476 www.wickermachinecompany.com

Available at 8 Locations: St. Louis, MO (636) 349-0200

Foristell, MO (636) 463-2500

Mt. Vernon, IL (618) 244-6800

Cape Girardeau, MO (573) 334-0563

Paducah, KY (270) 554-1131

Cuba, MO (573) 885-0500

Owensboro, KY (270) 684-2339

Evansville, IN (812) 473-0484

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In 2009, the acquisition and rebranding of KW Equipment Company, with locations in Evansville, Ind., and Owensboro, Ky., paved the road for Erb’s expansion into these markets.

You just worked harder to get market share. Erb has always been a costefficient, well-managed company focused on planned growth. For these reasons, it will continue to grow.”

When the construction economy collapsed in 2008-11, Erb Equipment felt the pain of reduced new business along with the rest of the industry. One tactic of the company’s survival strategy was to emphasize used equipment sales. “We remained profitable,” said Gregg, “because we diversified our ‘bucket,’ especially concentrating on used equipment sales. Whenever we lost a dollar in new equipment sales, we picked one up in used sales. So, while these were not our most successful years, we did continue to grow during the recession.”

Erb carries up to 400 pieces of used machinery in inventory and all locations offer it. Overseeing that segment of the business is Matt Heisel, nephew of Dave Heisel, who has been with Erb for 14 years.

“Generating $35 million in annual sales, we excel at selling used equipment and it is a part of our culture. Our product support allows us to focus on it,” Heisel said.

The pre-owned machines are traded in or bought from other dealers, never from auctions, and are mostly Deere, though not exclusively. The used equipment ranges from skid steers to large crawlers, with staples such as Deere 200D excavators always on hand. The equipment is thoroughly inspected by certified mechanics, ensuring that each machine is free of repairable defects, has clean filters and fresh oil, and a sound power train.

“Everything we do as a dealer we are going to do right. The company has spent a long time building a very good reputation in new and used equipment and we will not compromise our integrity by knowingly selling a machine that has a problem,” Heisel added.

Erb also rents equipment, a practice that began in the 1960s. As renting continues to be a popular option for contractors, equipment rentals account for nearly 10 percent of total business volume, and is expected to grow this year to nearly $14 million in volume, up from $10 million in 2013. While this is a significant revenue stream, “Erb Equipment’s goal in renting equipment is ultimately to sell it,” said Bob Erb. “Most of the time when we have a machine in the yard, we rent it out in the hope that a customer will purchase it. We would rather sell it than continuously rent it.”

The employees of the Evansville, Ind., location.

The employees of the Owensboro location.

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The Owensboro, Ky., facility.

“The company has spent a long time building a very good reputation in new and used equipment and we will not compromise our integrity by knowingly selling a machine that has a problem.”

Matt Heisel Sales Manager

Another aspect of the business is the lawn and garden sales and service conducted at the Fenton headquarters.

Approximately 15 percent of the Fenton store’s floor and yard space is devoted to stocking and servicing a variety of outdoor power equipment, accessories and parts used by professional landscapers and homeowners.

Brand names include STIHL, Exmark, Honda, Frontier, Bill Goat, Kohler, Gravely and, of course, John Deere.

The Evansville, Ind., facility.

70 YEARS OF COMMITMENT

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Congratulates

Erb Equipment Company and their employees on 70 years of Service, Excellence and Success!

12813 Flushing Meadows Drive, Suite 280 St. Louis, MO 63131 314.726.5150 www.fiduciaryadv.com Our Company is Committed to Providing Better Retirements for Employees Fee-only: 401(k) Plan Services Investment Services Personal Financial Planning

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PARTNERING for the community.

At U.S. Bank, our success is directly related to the success and vitality of the communities we serve. And we believe strong communities help make for a stronger economy. U.S. Bank is committed to the construction equipment industry and companies that work to enrich the quality of life for everyone.

Because when our community succeeds, everyone wins!

U.S. Bank is proud to continue its partnership with Erb Equipment Company and is pleased to celebrate its 70th Anniversary, wishing them continued success in their...

Commitment to Service, Commitment to Excellence and Commitment to the Future.

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“Service is the backbone of any dealership.”

Terry Wichem Product Support Manager

Parts and Service The complexity of machinery today is far beyond that of the farm tractors that Alvin Erb reconditioned in the 1940s. To maintain and repair high-performance, extremely technical equipment, nearly 50 percent of Erb’s workforce of 215 employees is directly dedicated to parts and service. Stocking approximately 80,000 line items in its parts department and receiving training on technological advances, Erb’s certified parts advisers have the resources to assist a wide range of equipment owners, including those who own competitive brands.

Erb’s staff of thoroughly trained, experienced and certified technicians is similarly available for fast and efficient service for maintenance and repair jobs on most brands of heavy machinery.

A fleet of 25 field service trucks spread throughout the locations facilitate service calls within 24 hours for emergencies, if possible. To ensure that service trucks and crews are not held up at construction sites due to major repair work, disabled machines are trucked to the shop for repairs, plus a loaner machine or a discounted rental machine is made available to the customer.

“Service is the backbone of any dealership. It has always been that way,” said Terry Wichern, product support manager, who is a 16-year Erb employee with a family heritage of working with John Deere. “Sales sell the first machine to a customer, service sells the rest. That’s even more true now because of the complexity of today’s equipment. You can’t really see things any more on a piece of equipment, as they are not connected like they used to be. There are more electrical monitors and sensors. Thus, a laptop is our main diagnostic tool.”

Gregg Erb and Carrie Roider are siblings and the third generation of the Erb family to head the business.

Erb’s executive management team is scouting other locations for expansion and a noncompeting supplier is being evaluated to augment Erb’s lineup of auxiliary equipment, which includes Bomag rollers and NPK breaker and excavator attachments.

The employees of the Fenton, Mo., location.

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The latest technology innovation is telematics — the long-distance monitoring and control of equipment by owners and dealers. Software updates are electronically transmitted to equipment in the field.

Malfunctioning machines are diagnosed on site by technicians back in the shop. Service managers at each of the Erb locations can perform the long-distance servicing.

As is the case across the industry, Erb Equipment is selling telematics to its customers who may be unfamiliar with the value of this technology. New Deere equipment from backhoes on up have factory-installed telematics and come with free three-year subscriptions.

Persuading buyers of new equipment to pay for the service after the initial subscription expires is a service mission. “It’s our goal to prove the value of telematics so a customer will want to renew it,” Wichern said.

To meet that challenge, the telematics sales effort is coordinated inhouse. Three staff members are dedicated to the task of helping customers understand the new technology. “It is a matter of getting out there and educating the customer. Everyone has a hot button — fuel, maybe, or how much idle time their machines are experiencing — and we can help the customer latch on to how telematics can address his hot button issue,” said Gregg.

“Overall, we are pushing the company to get more current with technology,” Roider said. “We are in the midst of an upgrade to a computer system that more fully integrates our multi-state operation. The new system will track the turnover of equipment and coincide with GPS processes in a way that better serves customers.”

Looking Ahead Roider is comfortable revamping the dealership’s organization.

From growing up around the activities of the Erb headquarters, she learned to operate the machinery and became involved in the administrative side of the business. After graduating from St. Louis University with a degree in accounting, earning the distinction of CPA, and working for a brief period with a CPA firm, she “came home” to the dealership.

With Roider’s appointment to CEO, Erb Equipment became a woman-owned, operated and controlled company as certified by the Women’s Business Enterprise National Council. In a male-dominated industry, Erb Equipment is the only John Deere dealership thus certified and one of only two woman-owned equipment dealerships of any kind in the country.

Gregg, likewise, grew up in the family business, working his way up from servicing tractors and restocking parts. Gravitating toward sales as a career, he became the sales manager for all Erb locations in 1994. In 2012, he was appointed president and director of sales, driving the business development efforts of two dozen new and used equipment salesmen, plus continuing his role as an integral member of the executive management team.

He sees fresh opportunity in a line of portable crushing and screening machinery manufactured by Construction Equipment Company in Oregon. Adding this brand opens an avenue for the company to more aggressively tap the aggregate and quarry industry, just as recently adding the Genesis line of shearing and crushing attachments has led to scrap and recycling business. “I’m really excited about it,” he said.

“By branching into these industries, we are also challenged to ramp up our service because downtime is extremely costly to these businesses.”

The employees of the Cape location.

When the construction economy collapsed in 2008-11, Erb Equipment felt the pain of reduced new business along with the rest of the industry.

One tactic of the company’s survival strategy was to emphasize used equipment sales.

(L-R): Bob Erb, Carrie Roider and Gregg Erb.

70 YEARS OF COMMITMENT

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Saluting our friends at

Celebrating seventy years of success!

In St. Louis:

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Congratulations to

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CONGRATULATES

ERB

EQUIPMENT ON 70 YEARS OF EXCELLENCE

EQUIPMENT COMPANY

CONGRATUL ATIONS ON YOUR

70

Genesis is proud of its partnership with Erb Equipment. Together, we look forward to many more years of delivering superior attachments, equipment and service to the scrap, demolition and material handling industries.

YEAR ANNIVERSARY

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As renting continues to be a popular option for contractors, equipment rentals account for nearly 10 percent of total business volume, and is expected to grow in 2014 to nearly $14 million in volume, up from $10 million in 2013.

In addition, an expanded relationship with Deere Construction is in the works. Deere approached Erb Equipment about becoming the authorized national repair and reconditioning center for all John Deere equipment that was previously leased. The program will build on Erb’s existing reconditioning and paint facility, plus it will provide Erb with a fresh source of used equipment to market.

Erb’s executive management team is scouting other locations for expansion and a noncompeting supplier is being evaluated to augment Erb’s line-up of auxiliary equipment, which includes Bomag rollers and NPK breaker and excavator attachments. Everything considered, business volume of $200 million is projected by 2019.

The prospects are brightened by the knowledge that Erb employees are quite satisfied in their work. In an independent survey, nearly 85 percent of employees responded that Erb Equipment is the best company they have worked for, and almost 90 percent believe the company cares for them as individuals.

“We have a great team devoted to serving our customers,” said Gregg. “Our customers and our people make our business what it is today—and what it will be tomorrow. As we are proactively looking for ways to serve our current customers better and to earn the business of new customers, we are very optimistically looking ahead to the next 70 years of progress and success at Erb Equipment.” CEG

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Reader Service No. 6115

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On Celebrating 70 years in Business!

S

C

GRATULATIO N N O

ERB EQUIPMENT COMPANY

7045 College Blvd., 4th floor | Overland Park, KS 66211 888-240-8803, x2808

70 Years and Counting!

Congratulations on your anniversary!

Ryterski Trucking Inc. 21108 State Route 127 Nashville, Illinois 62263

Phone: 618-336-5371 AL - PAUL - BOB - ROSS

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CONGRATULATIONS ATTIONS AT IONS Erb Equipment Co. on your 70th Anniversary!

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Congratulations

Erb Equipment Company

on 70 years in business Thank you for the continued partnership

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