RoadBuilders 30th Anniversary

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RoadBuilders Machinery Reflects on 30 Years Company Credits Success to Hard Work, Success

By Giles Lamberston CEG CORRESPONDENT

Phil McCoy, president of RoadBuilders Machinery & Supply Co.

Phil McCoy, president of RoadBuilders Machinery & Supply Co., credits great employees and excellent products for the company’s uninterrupted record of success over the first 30 years of its existence — but Bob Fischer believes there is more to it than that. He also credits hard work… and Phil McCoy. “I was impressed with him from the start,” said Fischer of his boss and colleague. Fischer is RoadBuilders’s most senior salesman and an employee of the company from day one. “His leadership skills. His management expertise. His philosophy, which is to treat people fairly and then some. That’s the cornerstone of RoadBuilders Machinery.”

As for the hard work, Fischer said launching the company was stressful for everyone. “Any time you start something new, there is going to be a little nervousness about it, but you just work harder and make it work. The phrase people use now is ‘24-7.’ We didn’t know the term The original Road Builders Kansas City facility.

Already selling Bomag compaction equiupment, RoadBuilders made Komatsu its core product line and steadily added to it. Among the other major brands in the lineup today at Sandvik, Terex-Fuchs, FINN and Ingersoll-Rand, as well as several leading attachment manufacturers.

When a struggling three-store equipment company became available there in 2000, RoadBuilders took it over, thereby gaining Omaha (shown above), Lincoln, and Grand Island markets.

Midwest Equipment

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McCoy acquired the assets of an International Harvester companyowned dealership as the foundation of his new construction equipment outlet in the KC metropolitan area.

then, but that was what we did.”

The hard work has produced a diversified company that today operates in three states, employs 165 people, and is setting records year after year business-wide. “We knew after about five years that we had a formula that was working and it continued to get better,” McCoy said.

“Then we obtained the contract to represent Komatsu and we knew we were well on our way.”

The paint shop averages three or four final coats a week — heavy trucks, tractors, and construction equipment of all kinds — with outside customer requests outnumbering inside work.

RoadBuilders celebrates its 30th year in business ranking at the top of the Komatsu dealer network — the dealership with the leading market share in North America. McCoy acknowledges the significance of the ranking: “When you have the number one market share, you are doing something right.”

Heavy Equipment Services’s paint shop.

Building A Company In 1969, after earning an engineering degree from Wichita State University, McCoy went to work for Wichita’s major employer, Boeing.

He left the giant aerospace firm in 1977 after tiring of “working in a building without windows” and entered the machinery business. Eight

The Lincoln, Neb., facility.

Besides reconditioning equipment for rental and resale, RoadBuilders committed to the used parts business three years ago with a public warehouse devoted to second-hand and after-market heavy equipment parts.

To serve customers in the southwest quadrant of that state, RoadBuilders opened Midwest Equipment and Supply in Springfield.

years later, the 37-year-old McCoy, along with Fischer and a couple of others, headed east to Kansas City, Kan., to start his own firm.

McCoy acquired the assets of an International Harvester companyowned dealership as the foundation of his new construction equipment outlet in the KC metropolitan area. The IH connection turned out to be a promising one. International Harvester had sold its construction equipment division to Dresser Industries in the early 1980s. After Komatsu swallowed up Dresser in 1988, the Japanese company turned to fledgling RoadBuilders Machinery & Supply to represent its product line.

Already selling Bomag compaction equipment, RoadBuilders made

Komatsu its core product line and steadily added to it. Among the other major brands in the lineup today are Sandvik, Terex-Fuchs, FINN, Gradall, Takeuchi, Etnyre, and Ingersoll-Rand, as well as several leading attachment manufacturers.

“We think we represent some of the best equipment on the planet,” said Doug Murray, general manager of RoadBuilders’s three Nebraska locations. “The manufacturers we represent produce world-class equipment. In some cases, it is unrivaled and superior equipment. Not just as good as something else, better than. That makes us better. World-class products have to have world-class service to go with it.”

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RoadBuilders’s expansion into Nebraska illustrates the company’s organic growth. When a struggling three-store equipment company became available there in 2000, RoadBuilders took it over, thereby gaining Omaha, Lincoln, and Grand Island markets. Murray was the dealer representative at Komatsu for RoadBuilders and lived in Nebraska at the time. He became so involved in RoadBuilders’s Nebraska operation that McCoy lured him away from Komatsu to manage it.

And what did RoadBuilders bring to the Nebraska stores that turned them around? “Everything,” said Murray. “Honestly, everything — equipment inventory, parts inventory, service capabilities, salesmanship.

And the company brought tremendous integrity from Kansas City, the habit of doing the right thing every day.”

The trio of Nebraska markets differ — mostly agriculture out west and construction work in the eastern cities, for example, more rental in the east and used equipment sales in the west. The company flexes to meet the demand. “We give customers what they want,” said Murray.

Used Equipment Push Before its Nebraska acquisition, McCoy built out the company in KC.

Today, Bryan McCoy is company vice president with principal responsibility for accounting functions and regional and retail finance, but with some responsibilities in parts and services.

Phil McCoy (L) and Gerry Buser.

Gerry Buser, senior vice president and chief operating officer.

In 1992 the company began to aggressively enter the used equipment market beyond merely pushing tradeins.

Doug Murray, general manager of RoadBuilders’s three Nebraska locations.

To complement its inventory of new equipment, the company developed an engine and mechanical rebuild facility in 1992 and began to aggressively enter the used equipment market beyond merely pushing tradeins. “We really, really concentrate on the used side of the business,” McCoy said.

That’s really, really true. Besides reconditioning equipment for rental and resale, RoadBuilders committed to the used parts business three years ago with a public warehouse devoted to second-hand and aftermarket heavy equipment parts. Then it opened an off-road equipment paint and body shop for outside customers as well as for company use.

Tech-savvy equipment shoppers can even download a RBused.com app to stay in touch with RoadBuilders’s used equipment inventory. What else? Does it operate a used equipment online auction service? Yes indeed.

“We try to take care of our customers any way we can,” said David Mehrtens, who manages used equipment operations, including paint, parts and machines. He ramped up the segment when he joined RoadBuilders 15 years ago. The warehouse still is being stocked, with salvaged parts from upwards of 50 pieces of equipment on the racks so

The trio of Nebraska markets differ — mostly agriculture out west and construction work in the eastern cities, for example, more rental in the east and used equipment sales in the west. The company flexes to meet the demand.

Because Midwest is not an authorized Komatsu dealer, a mix of mostly used equipment is offered, along with full access to KC’s parts stockpile, and a full-service shop.

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The hard work has produced a diversified company that today operates in three states, employs 165 people and is setting records year after year business-wide.

Tech-savvy equipment shoppers can download a RBused.com app to stay in touch with RoadBuilders’s used equipment inventory.

far. The paint shop averages three or four final coats a week — heavy trucks, tractors, and construction equipment of all kinds — with outside customer requests outnumbering inside work.

The reconditioned and repainted equipment doesn’t sit around long either, according to Mehrtens: On average, one machine is sold each day.

The three-year-old auction company (RBusedauctions.com) focuses on moving RoadBuilders’s second-hand equipment, but it also handles customer consignments. More than 50 machines were auctioned last year.

A company embracing a different business philosophy might balk at offering customers both new and used parts, there being a distinct possibility of one cannibalizing the other. But Mehrtens said, “We are just helping out customers.”

Mike Hink agrees. Hink is new parts manager and a RoadBuilders veteran of 22 years. “Having both parts departments gives a customer an option to buy… new or used,” he said. “Whereas before, we only gave the customer one option.”

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“The least amount of down time is what (customers) are looking for. Taking care of customers is not just rhetoric around here,” said Mike Hink, parts manager.

Hink joined RoadBuilders shortly after Komatsu did, so he is steeped in Komatsu knowledge. He said customers appreciate his product mastery. “If you know the machines and can get customers parts in a timely manner, it makes for happy customers. The least amount of down time is what they are looking for. Taking care of customers is not just rhetoric around here.”

Besides reconditioning equipment for rental and resale, RoadBuilders committed to the used parts business three years ago with a public warehouse devoted to second-hand and after-market heavy equipment parts.

A Growing Business Seven years ago, McCoy and other company executives — including senior vice president and chief operating officer Gerry Buser, whom McCoy calls “a key, key guy”— took the company east into Missouri.

To serve customers in the southwest quadrant of that state, RoadBuilders opened Midwest Equipment and Supply in Springfield. Much of the region is wooded, with rocky outcrops, and lumber and quarry businesses located there needed another equipment source.

Jason Baer, Springfield’s territory sales manager, has seen a maturing

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Grand Island, Neb. (L-R): Clarence Brooks, Brad Jensen, Kyle Kult, Carrie Shepard and Josh Halte. Not Pictured: Tony Randone, Clayton Brooks, Luke Anderson, Russel Jacobitz and Jay Johnson.

Heavy Equipment Services, LLC (Paint Shop) — Kansas City (L-R): Jeremy Lapka, Tom Bledsoe, Daniel Gonzalez, Steve Horning and Ron Johnson.

Lincoln, Neb. (L-R): Scott Kilpatrick, Jim Lock, Darrell Andelt, Craig Arehart, Charles Miller, Aaron Collins, Don Walker, Chris Johnson and Michelle Braunsroth.

Not Pictured: Dru Davidson.

Machine Shop — Kansas City (L-R): Scott Smith, Darrell Williams, Jay Bullock, Caleb Patterson, Mike Chapman and Jaime Morche.

Parts Department. — Kansas City Back Row (L-R): Rick Woodson, Bill Dycus, Robert Dorsel, Luke Wiman, Mark Colwell, Tim Stonebrook, Mike Hink and Bryan Carrell.

Front Row (L-R): Deborah Wilson, Travis Price, Nelson Cline, Luke Taylor and Jill Gilreath.

(L-R): The father and son team of Bryan and Phil McCoy, Road Builders Machinery and Supply Co. Inc., visit the IronPlanet booth and speak with Carson Erickson, sales manager, IronPlanet.

With construction projects on the horizon, activity at the area’s rock and lumber industries is expected to pick up...and keep Midwest busy.

of the business in his seven years at Midwest. “First we were trying to build the business. Now we are working to maintain it. That changes the dynamics of the work. It took us a couple of years to get where customers were coming in on a regular basis, but we have a pretty large customer base established now.”

Because Midwest is not an authorized Komatsu dealer, a mix of mostly used equipment is offered, along with full access to KC’s parts stockpile, and a full-service shop. With construction projects on the horizon, activity at the area’s rock and lumber industries is expected to pick up… and keep Midwest busy.

Vince McBride, KC-based general operations manager, oversees the company’s Springfield outlet. That task is on top of monitoring RoadBuilders’s parts and service departments and IT functions. His unofficial title is “jack of all trades.”

Eighteen years ago, McBride started at RoadBuilders as a service writer and migrated into warranties and eventually became the de facto

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Rental Department. — Kansas City (L-R): Brian Burkert, Phillip Kitterer, Bryant Getz-Reel, Noah Montgomery, Brandon Marsh, Brock Chaltas, Brian Rosendahl, Rocky Shatto and Kim Reiter.

Midwest Equipment & Supply LLC — Springfield, Mo. (L-R): Jimmy Christian, Nick Kirkland, Mack Harmon, Justin Ward, James Broom, Anthony Coffman, Mike Wood, Dewayne Thornton, Jason Baer, Tom King, David Brill, Butch Core and Tom Everett.

Not Pictured: Steve Gaynor, Nick Spickard, Lonnie Williams.

Used Equipment and Parts – Kansas City (L-R): Charlie Brown, Jennifer Vogts, Doug Mehner, Jay Thorne, Justin Reece, Mike Johnson, Todd Russell, Kyle Eitel, Garrett Crane, Early Hughes, Barry Maddock, David Mehrtens, Raul Pacheco, Jack Williams and Jerry Yanez.

Not Pictured: Bill Warren, Troy Long, Chris Holman.

Omaha, Neb. (L-R): Todd Kelsey, Casey Porter, Rusty Kilpatrick, Aran Alley, Ty Sutherland, Doug Murray, Becky Anderson, Carter Herold, Carl Simmons, Dean Alfers, Fred Grote, Chuck Walters, Marty Hagemann, Eddie Miranda, Chuck Page, Chris Sutherland, Jeff Smith, Bob Williby, Dave Meyerring, Warren Kutz, Ryan McCardle, Pauline Siderewicz, Jake Riesberg and Ted Christensen.

Not Pictured: Al Hoggatt, Don Wilmer, Chris Murphy, Tim Grubb, Garret Desautels, Ray Borchers, Dennis Anderson and Steven Borchers.

The Kansas City Service Department (L to R Back Row): Murray Penaia, Kevin Pride, Melissa Patterson, Vince McBride, Tim Keagy, Mike Jenkins, Joey Burger, Mary Smith, Jeff McConnell, J.D. Carson. (Front Row): Corey Blair, Brandon Lees, Tao Paletaoga, Brian Elwell, Joe Drummond.

Not Pictured: John Bannister, John Brummett, Kevin Colwell, Rusty Coons, Doug Curry, Steve Dutton, Steve Griffeth, Julie Lynn, Richie Stevens, Jesse Stewart and Loren Werth.

IT guy. Besides keeping an eye on the flourishing parts departments, he watches over equipment service, including shop work, field calls, and fleet management packages. He said the service work — which accounts for about 20 percent of total sales — is managed relatively simply thanks to the company’s credo.

“When our owner gave me the job, he told me to tell the truth and do the right thing and you won’t have to worry about any consequences,” he said. “Occasionally there will be a service issue where you have to make it right, and that’s what we try to do. If it sounds like we should have done something a little better, we try to rectify it.”

The Next Generation Bryan McCoy was 10 years old when his father started RoadBuilders.

Just a few years later, when a fire melted the wiring on a Bomag roller, he was given the assignment of rewiring it. “I put it back together and, after that, I was hooked.” Following graduation from Wichita State in 1998, he plunged into the business full time, beginning as a rental manager.

Today, Bryan McCoy is company vice president with principal responsibility for accounting functions and regional and retail finance, but with some responsibilities in parts and services. He attests to how the various company units perform at a high level in tandem with one another and with minimal oversight from above. He credits his father for the smooth functioning of the company’s interrelated parts.

“I think the biggest factor is that Dad has always surrounded himself with people who are fully able to take care of their responsibilities. They are given freedom to run their departments or areas,” he said. “I have learned from that, learned to get involved only when you need to.”

The company is not standing still — a fourth Nebraska branch will open this year in Norfolk, for example, and bar-coding systems are coming to parts warehouses — and Bryan McCoy said standing pat is not an option. “The only way to keep the company going is to grow. There is nothing immediately available, but we are going to have to expand to keep moving ahead.

“I don’t know what direction that will be… a new product line, serving our customers in a better way, maybe a new territory will open up down the road. Whatever it is, we always are open to new opportunity and willing to look into it.”

(This story also can be found on Construction Equipment Guide’s Web site at www.constructionequipmentguide.com.) CEG

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CONGRATULATIONS ROAD BUILDERS ON 30 YEARS OF BUSINESS * 29

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We think we represent some of the best equipment on the planet. The manufacturers we represent produce world-class equipment.

In some cases, it is unrivaled and superior equipment. Not just as good as something else, better than. That makes us better. World-class products have to have world-class service to go with it.

- Doug Murrary, general manager of RoadBuilders Machinery and Supply Co., Inc.

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www.roadbuildersmachinery.com