Rental March 2017

SHOW REPORTS FROM THE RENTAL SHOW AND CONEXPOCON/AGG Check out product introductions and news from the industry’s March 2017

PRODUCT NEWS INSIGHT ■

biggest shows

■

State of the Industry:

Bobcat MT85 Brings

BIG-MACHINE BENEFITS

WHERE ARE WE GOING?

Rental and construction industries enter uncharted territory with a forecast for growth in an uncertain political climate

Part 2

MANAGING FOR SUCCESS

7 ROOT CAUSES TO POOR COMMUNICATION Find the latest news at ForConstructionPros.com/RENTAL

INTRODUCING

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MA185

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INTRODUCING

MaxiPower ™

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Allmand™, a subsidiary of Briggs & Stratton Corporation, offers portable light towers, mobile industrial heaters, flashing arrow boards, portable light stands, and now towable equipment to the global rental market.

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Allmand. Reliability, Performance and Integrity Since 1938

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MARCH 2017

VOLUME 39 ISSUE 2

2017 STATE OF THE INDUSTRY REPORT A look at what 2017 has in store for the rental, construction and transportation sectors Find out what experts say the near-term future looks like for you and your customers.

40 78

IN EVERY ISSUE

MANAGING FOR SUCCESS, PART 2 Seven Root Causes to Poor Communication Sue Dyer of OrgMetrics relays what successful teams need to guard against in order to be successful.

92 SPECIAL REPORT: TELEMATICS

84

Can Machine Data Impact Resale Value?

SHOW REPORTS News from The Rental Show and Conexpo-Con/Agg 2017

Telematics provide a more complete history for your equipment, potentially boosting its appeal to buyers.

Get the low-down on what happened at recent industry events.

6 Everybody’s Business Excitement stokes the industry for growth.

10 Manager’s Digest 28 New Products Product introductions from The Rental Show and Conexpo-Con/Agg.

20 Market Watch

70

96 Industry Update

CONSTRUCTION EQUIPMENT CLOSEUP

106 Eye on Rental

Bobcat MT85 Brings Big Machine Benefits More power, a stand-on platform and an ISO-pattern joystick boost productivity and ease of use.

www.ForConstructionPros.com/RENTAL

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Dick Detmer reminds us to focus on success in the face of excitement and uncertainty.

MARCH 2017

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CONTENTS

RentalWATCH Rental

Rental and Construction Market Updates Get all the latest information pertaining to the topics that matter most to your business. Look here daily for the news and information you need most. To subscribe, go to ForConstructionPros. com/Register.

ForConstructionPros.com/RENTAL

Rental@RentalMagazine

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Fast, Relevant Product Information

Designed With You in Mind

It’s easier than ever to find the industry news and information you need to run your equipment rental business. Just point your browser to ForConstructionPros.com/RENTAL, and scroll for the latest reports. Whether you’re using your desktop, laptop, tablet or smartphone, you get the same simple-tonavigate experience, only faster than ever before.

VISIT TODAY! ForConstructionPros.com/RENTAL

Join Our Social Media Community www.Facebook.com/ RentalMagazine

BUYERS GUIDE

Check out our Facebook page and join our Twitter feed. Leave a comment, post some news and photos, or just catch up on the latest happenings in the world of equipment rental.

ForConstructionPros.com/ RENTAL features the industry’s most comprehensive guide to construction-related products and equipment. Visit ForConstructionPros.com/ RENTAL and click on the Buyers Guide for the most up-to-date list of what today’s leading manufacturers have to offer.

NEWS FEED Why Small Businesses Are Turning to Backup Gensets for Onsite Solutions How to help your customers live up to customer expectations.

ForConstructionPros.com/12316795

VIDEO: Buzz from Conexpo-Con/Agg 2017 Includes Positive Economic Vibes ForConstructionPros.com Editor Larry Stewart shares insights from the show.

ForConstructionPros.com/12314397

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EVERYBODY’S BUSINESS // B y

J e n n y L e s c o h i e r, e d i t o r

jlescohier@ACBusinessMedia.com

Excitement Stokes the Industry for Growth Attendees and exhibitors at industry tradeshows express genuine enthusiasm for the prospect of economic expansion

L

isten to conventional wisdom of late and you’ll be left wondering where exactly this year will take us. Experts have done their studies, Congress is doing its thing (or not) and the economic outlook is... good? Not phenomenal or outstanding, but definitely “positive.”

Compare that to what we saw and heard when surrounded by our peers in recent tradeshow venues. The vibe and the message there was quite different. If you were among the thousands who attended any of the recent construction-related tradeshows — chiefly The Rental Show and Conexpo-Con/ Agg — then you probably know what I’m talking about. Rental and construction professionals were simply stoked.

There’s no better word for it.

The American Rental Association kicked off its show with an official statement predicting good solid growth for the rental industry through 2020, but that was just the beginning. Attendees at both events showed up with a mission and when asked, many said they were excited about what 2017 might have in store. And most exhibitors seemed ecstatic about the buying activity.

Brad Boehler, president of Skyjack, summed the feeling up perfectly when he said, “Everybody’s positive and everybody wants to buy equipment.”

So where do we really stand? Do we go with tempered enthusiasm or unbridled optimism as our view for the near-term future? We all must decide that for ourselves but in the meantime, one thing seems evident and that is the power of a self-fulfilling

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™

PRODUCT NEWS INSIGHT ■

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www.ForConstructionPros.com/RENTAL Published by AC Business Media Inc. 201 N . Main S treet Fort Atkinson, W I 5 3538 (800) 538-5544 www.ACBusinessMedia.com

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Dick Detmer

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Angela Kelty

Advertising S ales ( 800) 5 38-5544

THE M ORE W E BELIEVE IN ITS SUCCESS, THE B ETTER CHANCE W E HAVE OF MANIFES TING IT. prophecy. I don’t think anyone - not even the experts - can really predict what President Trump might do with his time in office. To many of us, that’s more than a bit scary. But if you choose to focus on how the prospect of a greater investment in infrastructure, a revised corporate tax code and a more relaxed stance on regulations is firing up business owners, I say let it ride. The economy has always been nothing if not a colossal leap of faith anyway. The more we believe in its success, the better chance we have of manifesting it.

No doubt there will be many roadblocks on that path to continued growth, and we must work to anticipate and prepare for them, but it sure is invigorating to witness genuine excitement in our industry and watch where that alone might take us. ■

Sean Dunphy Jill Draeger Erica Finger Amy S chwandt Denise Singsime Tom L utzke

sdunphy@ACBusinessMedia.com jdraeger@ACBusinessMedia.com efinger@ACBusinessMedia.com aschwandt@ACBusinessMedia.com dsingsime@ACBusinessMedia.com tlutzke@ACBusinessMedia.com

ForConstructionPros.com Digital Operations Manager

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Vol. 39, Issue 2, March 2017

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BARRETO’S 3104CMS CHIPPER MULCHER SHREDDER THE PERFECT SOLUTION FOR YOUR LANDSCAPING NEEDS!

The Barreto 3104CMS Chipper/Mulcher/Shredder transforms yard debris into valuable mulch and is powered by a 31hp Briggs Vanguard V-Twin engine with electric start. The CMS is designed to chip logs and branches up to 4”, while the mulching hopper accommodates smaller leaves and branches. The CMS comes ready to tow with a standard torsion axle and quick release coupling. To reduce maintenance costs, the chipping blades are double sided and the mulching/shredding hammers have four hammering surfaces. The chipping blades have quick access ports for easy servicing or repair.

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MANUFACTURER PROFILE

WHEN IT COMES TO PURCHASING TIRES FOR YOUR RENTAL FLEET,

DON’T LEAVE IT TO CHANCE Machines in your rental fleet probably have to work in a number of applications and perform several different jobs, some of which you’re not even aware of. These applications and duties demand specific mobility requirements and thus present a suite of challenges from a tire perspective.

Too often, customers and managers rely on price as the governing factor in tire and track selection when it comes to equip or replace tires or tracks on their equipment. In most cases, the cheapest solution may not be most effective solution for a particular application. You’ll know this quickly when your tire fails or wears earlier than anticipated. That said, the deal you initially thought you had proves costly in maintenance, tire repairs and customer complaints.

one tire. That’s why its crucial to understand the application in which your machines will be running. What’s the severity? Is it harsh or more general duty? How much traction is required?

Are you at risk from a sidewall impact or punctures? Is the surface soft, mixed or hard?

Choose the right tires and tracks according to the application

Trust a reliable tire dealer

It’s basically impossible to cover every surface type or duty cycle with

Train the user One of the main failure causes we see in rental is due to the user. A welltrained operator will drive carefully when he goes into aggressive conditions and thus spare the tire from flat or the track from a detracking or other types of catastrophic failure. We can’t control the conditions, but we can certainly train the driver properly so he uses it correctly.

A host of considerations are factored into the optimum tire and track choice. That’s why fleet managers have a

Camso SKS 532 for mixed and soft surfaces

lot to gain in working more closely with their tire dealer. Work with someone locally who has the product knowledge to guide you to the right solution for your operation.

Since there are so many factors to consider when selecting a tire, it should never be a “one size fits all” approach.

To avoid the frustration of under performing equipment or premature tire wear, put the right tire or track on first. Camso offers the broadest range of tire and track solutions for compact construction equipment in the industry and has solutions purpose-built for rental requirements. Contact your local Camso representative or browse the Camso product selector to find the right tire and track according to your vehicle, brand and surface type to keep your rental fleet rolling.

Camso TLH 792S for severe applications

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www.ForConstructionPros.com/RENTAL

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TIRES AND TRACKS

TO KEEP YOUR RENTAL FLEET

ROLLING As off-the-road mobility specialist, Camso offers the largest range of tire and track solutions for compact construction equipment.

But it’s not just about having the widest range of tires and rubber tracks in the industry. What drives us is providing rental companies with the most durable and versatile solutions to achieve the lowest operating cost solution. To learn more about Camso products, visit camso.co

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MANAGER’S DIGEST

Single-Family Home Builder Confidence Hits

12-YEAR HIGH

Builder confidence in the market for newly built single-family homes jumped six points to a level of 71 on the National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005.

“Builders are buoyed by President Trump’s actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that impacts permitting,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, TX. “While builders are clearly confident, we expect some moderation in the index moving forward,” said NAHB

Chief Economist Robert Dietz. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current singlefamily home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components posted robust gains in March. The component gauging current sales conditions increased seven points to 78 while the index charting sales expectations in the next six months rose five points to 78. Meanwhile, the component measuring buyer traffic jumped eight points to 54.

CONSTRUCTION INPUT PRICES CONTINUE EXPANSION IN FEBRUARY Construction input prices expanded 0.3% on a monthly basis and 4.8% on a year-over-year basis in February, according to Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics (BLS) data. This represents the most rapid yearly growth in construction input prices in more than five years.

Only four key inputs tracked by BLS experienced monthly price declines, principally natural gas. Natural gas prices declined 18% in February, but are still up by more than 66% over the past year.

Crude petroleum prices are up 107% over the past year.

“There is growing evidence of inflationary p essures throughout the economy, and construction materials prices are no exception,” said ABC Chief Economic Anirban Basu. “After declining during the latter half of 2014 and throughout 2015, global commodity prices have begun to stabilize. There are many reasons for this, including a somewhat more stable global economy, decisions by producers to reduce supply, general increases in asset prices and expansionary monetary policy in much of the advanced world.

“Still, contractors should not worry excessively about prospects for massive additional increases in materials prices,” continued Basu. “The global economy is hardly poised to boom given structural factors like demographics and indebtedness. The U.S. dollar has continued to strengthen, which has helped to keep a lid on commodity price increases. Moreover, energy prices have begun to retrench recently, including oil prices, which fell below $50/barrel over the last few days.

“Of course, if the Trump administration is successful in implementing a proposed $1-trillion infrastructure package, dynamics change,” said Basu. “Under those circumstances, concrete and other materials prices stand to rise vigorously.”

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MANAGER’S DIGEST

Construction Backlog Indicator

FELL 4 % TO END 2 016 Construction backlog fell by 4% during the last quarter of 2016, according to Associated Builders and Contractors’ (ABC) latest Construction Backlog Indicator (CBI). Contractors in each segment surveyed — commercial/institutional, infrastructure and heavy industrial — all saw lower backlog during the fourth quarter, with firms in the heavy industrial segment experiencing the largest drop, down 16.8% to an average backlog of 5.5 months.

Overall, backlog — the amount of work under contract but yet to be performed — fell to 8.3 months during the fourth quarter. CBI rose a modest 0.4 months or 4.5% on a year-over-year basis.

“Many factors contributed to the dip in contractors’ backlog, but none is more important than the lack of public construction spending momentum,” said ABC Chief Economist Anirban Basu. “Indeed, backlog among firms specializing in infrastructure has declined from 12.2 months during the final three months of 2015 to 10.6 months one year later.

“CBI is intended to be a predictive tool and has accurately predicted declining public spending for several quarters,” said Basu.

“Recent construction spending data supplied by the U.S. Census Bureau confirm these declines. For instance, between January 2016 and January 2017, construction spending in the nation’s highway and street segment declined by more than 10%. In the water supply, public safety and transportation components, the level of construction spending declined by closer to 11%. In the sewage and waste disposal category, construction spending declined by a whopping 28%.

“A still fragile global economy, strong U.S. dollar, and stubbornly low energy prices have helped to translate into declining heavy industrial backlog,” said Basu.

“The only category experiencing construction spending stability is the commercial segment. Over the past year, construction spending in office, lodging and relative categories has surged. During that same period, the CBI reading in the commercial/ institutional category has remained stable.”

To read the full report, visit www.forconstructionpros.com/news/12315327

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4% JUMP

IN INSTITUTIONAL PLANNING BOOSTS FEBRUARY DODGE MOMENTUM INDEX UP NEARLY 2% The Dodge Momentum Index rose 1.6% in February to 144.0 (2000=100) from its revised January reading of 141.7. February’s increase was due to a 4.4% jump in institutional planning, while commercial planning slipped slightly, falling 0.3% for the month.

The Momentum Index has now increased for five consecutive months; however, the underlying components continue to be volatile on a month-to-month basis as large projects continue to sway the data. The overall trend, however, is rising. On a year-over-year basis the Momentum Index is 22% higher, with commercial planning up 28% and institutional planning moving 15% ahead of last year. This suggests that construction activity will continue to see further growth as the year progresses.

In February, four projects entered planning each with a value that exceeded $100 million. For the institutional building sector, the leading projects were a $100 million hospital in Westampton, NJ, and a $100 million military barracks in Great Lakes, IL. The leading commercial projects were a $470 million hotel in Nashville and a $130 million hotel and shopping center in La Puente, CA. The Momentum Index is a monthly measure of the first (or initial) eport for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year.

www.ForConstructionPros.com/RENTAL

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MANUFACTURER PROFILE

LEADING MANUFACTURER IN THE G LOB AL OF F-HIGHWAY TIRE M ARKET BKT is a leading manufacturer in the global Off-Highway tire market. Serving both Original Equipment Manufacturers (OEM) and the replacement market, we have focused on specialty segments such as agricultural, industrial vehicles as well as earthmoving, construction, port, mining, ATV and gardening applications.

As a global specialty tire supplier with distribution in over 130 countries, one of our strengths is the extensive Off-Highway tire lineup of over 2,300 products we offer.

To view our entire line-up, visit our website today, bkt-tires.com. For additional information or questions please contact the office in Akron, OH and we will be happy to help! The next time you visit your tire dealer, tell them you want BKTs.

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MANAGER’S DIGEST

February Represents BEST MONTH FOR CONSTRUCTION JOB CREATION In 10 Years National construction employment surged in February as the industry added 58,000 seasonally adjusted net new jobs, according to Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics data. February’s data represents the best month for construction job creation since March 2007.

Nonresidential construction added nearly two-thirds of net new construction jobs with 38,500 jobs added for the month.

In absolute terms, nonresidential construction employment growth was led by specialty trade contractors, which collectively added 21,500 net new jobs.

The heavy and civil engineering category posted the largest percentage growth with employment growing 1.6% for the month.

were created over the first nine months of 2016.

“Industry surveys indicate that the typical construction firm expects to be busier in 2017 than they were last year, and government data continues to support that optimism,” said ABC Chief Economist Anirban Basu. “Over the first two months of 2017, construction has added 98,000 net new jobs, as many as

“Leading indicators like the Architecture Billings Index have also been upbeat, suggesting that many contractors will encounter abundant bidding opportunities over the next several months,” said Basu.

“That has likely induced many construction firms to expand their staffing levels and to shore up their workforce.

“As always, the numbers must be interpreted carefully,” said Basu. “February’s weather was unusually mild, which likely translated into less interruption in employment than is typical.”

To read the full report, please visit ForConstructionPros.com/12314562

REPORT

EQUIPMENT MANUFACTURERS SUPPORT 1.3 MILLION JOBS, CONTRIBUTED $159 BILLION TO US GDP A new report found that the equipment manufacturing industry supported about 1.3 million jobs and contributed over $159 billion to the Gross Domestic Product (GDP) of the United States in 2016.

The Association of Equipment Manufacturers (AEM) unveiled the report as over 130,000 attendees gathered at CONEXPO-CON/AGG 2017, the industry’s premiere trade show. The report was prepared by the leading research firm IHS Markit, and details the size and reach of the three major sectors (Construction, Agriculture, and Energy) that make up the core of the equipment manufacturing industry.

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The report identified a number of key findings, including: • Equipment manufacturers supported over 1.4 million jobs between the United States and Canada in 2016, through direct, indirect and induced employment effects.

• Equipment manufacturers supported over $416 billion in sales activity in the United States in 2016, and added almost $159 to the GDP of the United States • The top four biggest states for the equipment manufacturing industry in 2016 were: Texas, Illinois, Wisconsin and Ohio • Equipment manufacturers generated over $25 billion in local, state and federal tax revenue in the United States in 2016 • Equipment manufacturers generated almost $87 billion in total U.S. labor income in 2016 To read the full report, please visit ForConstructionPros.com/12315124

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MANAGER’S DIGEST

Booming Stock Market Boosts Likelihood of Construction Industry Executives EXPECT INCREASED ACTIVITY IN 2017 Construction industry executives have entered 2017 with increased optimism for nonresidential construction activity, according to a recent survey of industry contractors and equipment distributors released today from Wells Fargo Equipment Finance, a subsidiary of Wells Fargo & Company. The 2017 Construction Industry Forecast revealed increased optimism driven by expectations of industry expansion through higher infrastructure spending and increased company profits.

The survey’s primary benchmark for measuring construction industry contractor and equipment distributor sentiment is the Optimism Quotient (OQ). The OQ reached its third highest reading in 20 years with a very positive 123 for 2017, a marked increase over the 2016 reading of 108. An OQ score greater than 100 suggests strong optimism for increased local construction activity versus the prior calendar year.

“An OQ reading at this level leads us to believe that the industry will continue to build on the momentum generated over the last few years,” said John Crum, senior vice president and national sales manager of the Construction Group at Wells Fargo Equipment Finance. “Contractors have increasingly improved their businesses and this year looks to provide more opportunities to do that again.”

A growing number of executives believe the industry will expand in the next two years, with 84% of executives expecting moderate to significant expansion in this timeframe versus the results in last year’s survey that indicated only 62% expected expansion.

Equipment sales and purchases Regarding equipment sales, distributors are expecting to move more new and used equipment this year with 65% expecting an increase in new and 66% expecting an increase in used sales, compared to contractors who plan to increase new and used equipment purchases by 39 and 25%, respectively.

A significant result of the survey showed that only 13% and 11% of contractors expect to decrease new and used purchases this year, respectively. In 2013, these figures were 30% and 20%. This reading shows the strong confidence that equipment end users have in their businesses.

Cost concerns Contractors and distributors report similar cost concerns in 2017. The top concern among contractors continues to be employee wages and other benefits (24%), followed by taxes (21%) and healthcare costs (19%). Contractors are also more concerned about equipment purchase costs in 2017 than in years past with 18% selecting this as their top concern, compared with just 10% in 2016. Top concerns for distributors include increasing concerns over equipment costs (31%) and continued concern over healthcare costs (22%).

March Interest Rate Hike The stock market reached yet another new high in mid March, the latest development to mock what economic commentators thought they knew about the world.

Bond market price growth now suggests investors expect consumer price inflation in the U.S. at 2.03% a year over the coming decade — consistent with the 2% inflation the Fed aims fo . It only recently reached that level, however, after being as low as 1.2% in February 2016. Similar measures of inflation expect tions have risen in Germany, Britain and other advanced economies.

Tuesday afternoon, William C. Dudley, the president of the New York Fed, said in an interview that it would be fair to assume that the central bank would raise interest rates sooner rather than later, given the improving economy.

“There’s no question that animal spirits have been unleashed a bit post the election,” Mr. Dudley told CNN. Fed watchers interpreted that to mean that an interest-rate increase could be on the way in March, just three months after the December increase. Yet that did nothing to slow the 1.4% gain in the Standard & Poor’s 500 on March 8, and might even have contributed to it, as a sign of the Fed’s confidence in the economy.

For the full report, please visit For ConstructionPros.com/12312298

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MANUFACTURER PROFILE

TROJAN DEEP

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FOR RENTAL EQUIPMENT Various issues impact the industry from reduced budgets to increased environmental regulations, which makes battery selection critical to ensuring reliable operation of forklift, AWP and other lift access rental equipment. Trojan Battery offers advanced deep-cycle battery technologies that are engineered to maximize equipment performance, reduce downtime and extend overall battery life.

Trojan works closely with equipment manufacturers to ensure our batteries provide the functionality needed to keep pace with new designs and customer demands. Using advanced testing procedures and state-of-the art manufacturing practices, enable Trojan to deliver quality deep-cycle batteries for demanding applications.

Flooded Trojan’s deep-cycle flooded batteries are the flagship of Trojan’s product

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portfolio, offering rugged durability and long life. Featuring Trojan’s T2 Technology™, an advanced battery technology that provides maximum sustained performance and increased total energy, Trojan’s deep-cycle flooded batteries are perfectly suited for use in a variety of applications.

HydroLink™ Deep-cycle flooded batteries need regular watering to ensure maximum performance and life. Trojan’s HydroLink™ single-point watering system simplifies this process, and can save time and money by helping avoid premature battery failures, as well as the cost of successive battery replacement due to lack of consistent watering. With Trojan’s HydroLink advanced singlepoint watering system, precise battery watering is made easy when on the job by filling a set of batteries in less than 30 seconds.

AGM & Gel Non-spillable batteries such as AGM and gel designs, are gaining in popularity due to various regulatory requirements. To meet this growing worldwide demand, Trojan offers a broad range of deep-cycle AGM and gel batteries that require minimal maintenance, and can be used in locations where mandates require equipment be powered by batteries that do not spill or gas. Trojan’s non-spillable deep-cycle AGM and gel batteries feature unique design elements for optimum performance and rugged durability.

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3/17/17 11:24 3/20/17 12:39 AM PM

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3/20/17 11:24 AM

MARKET WATCH

By Rod D ickens, c ontributing e ditor

NEW YEAR AND NEW PRESIDENT Evoke Range of Response from Equipment Rental Businesses

W

e asked renta l c omp an i e s from around the country about the challenges they’re currently facing and whether a new president will bring about significant change to the way we do business.

Here’s some of what we heard:

Minnesota Rental Operator Sees a Foggy Vision is his Crystal Ball Kelly Danielson has been in the rental business for 15 years. The owner of Centre Rental Inc. in Sauk Centre, MN, thought last year would be a good year, but it wasn’t. “It’s the economy,” he explained. “Farm prices were down and I don’t believe the small contractors who do business with us had much work. The party and events rental sales helped us get through.”

Part of the challenge is the small market. The town has only 4,000 residents. The other part of the equation is the long winter. In Danielson’s words,

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“You only have so many months to make up for 12. Sauk Centre is approximately 100 miles northwest of Minneapolis and we see a lot of snow and temperatures in the negative reading. Some weeks in the winter, we might only bring in a couple hundred dollars by renting a snowblower, a few miscellaneous hand tools, and a skid loader or possibly an insulation blower. Most everything we rent, including our events and party goods, are used out of doors.”

Still, Danielson’s hoping for a better year this year. “Every day is a guessing game in this business,” he said. “Owners like myself have to have one of everything and more of other things, and we can’t stagnate.

Most every year we add on a new piece of equipment or two just to keep moving forward.”

As he pointed out, keeping rental items on the floor in good shape and adding new equipment is costly, something that some customers don’t understand. But that’s the price of being in business. “I’ve enjoyed rental

and look forward to a better year,” said Danielson.

At least he will have more time on his hands to help grow sales. Just two weeks ago, he sold a towing and recovery business he ran with a partner. They ran seven tow trucks, including three ‘heavies’ to recover tractor trailers. The work kept them on call 24/7.

Now, with more time, a bump in the local economy would be timely. Maybe the Trump administration will lend a helping hand? “Possibly,” he added, “if people do what they say they’re going to do.

Washington Rental Company with Specialty Market Meets Unique Challenges, Opportunities Brock Rentals Inc. in Monroe, WA h a s b e e n r e nt i n g B r o k k remotely controlled demolition machines since 2000. The electro-hydraulic machines, which range in size from

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3/21/17 9:43 AM

MARKET WATCH

BACK IN THE EARLY 70S W E COULD P AY O UR EMPLOYEES 2 0 P ERCENT M ORE THAN EVEN THE CITY COULD P AY T HEM. NOW, WE F IND IT DIFFICULT TO COMPETE ON THE W AGE F RONT.

900 to 12,000 lbs., are used in a wide variety of demolition tasks from demolishing bank vaults, stairways, floors and chimneys; remodeling hotels; and replacing brick linings in furnaces to virtually any jobs where access might be limited.

“We’ve had machines on chimneys and even underwater,” explained President Tomas Lundstrom, who noted their market extends throughout the U.S., Canada and Mexico. “Our customers are primarily concrete demolition contractors, both large and small, who cannot justify buying a machine to accommodate a specific project or two.”

When asked how business has been over the last few years, he used the words “up and down.”

“Last year, we may have been down five percent from the previous year, but then again, two years ago rental sales were up 15 to 20 percent. The market is unpredictable, yet it doesn’t vary that much, either. It’s more or less steady.”

That held true during the Great Recession when Lundstrom mentioned his company didn’t suffer the big downturn that hurt so many general rental stores. Many large demolition projects were ongoing and helped sustain sales throughout 2008 and 2009, not to say his business model is not without its challenges.

“Because the equipment is so specialized - with only two manufacturers and not a huge demand for used specialty machines, manufacturers are reluctant to take in used machines - it pays to keep them maintained and in good condition,” explained Lundstrom.

“Payback can be long, too, up to five years for a machine that costs anywhere from $100,000 to $300,000.”

The upside, of course, is that

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competition is less keen. You won’t find another specialty rental store across town or even in a neighboring state, and there will always be demolition projects where large machines cannot be used or where air pollution is a concern.

Looking down the road, Lundstrom doesn’t see the Trump administration dramatically affecting his market or rental sales. “Most infrastructure projects such as roads and bridges won’t require the type of equipment we rent, except for tunnel projects, of course. If the new President can reduce taxes, that would be helpful,” he commented.

California Rental Business Struggles with Post-Recession Economy, Workforce When Sorensen’s True Value Rental Owner Miles Sorensen talks about it being a different world today, he’s talking about both a place and time. “We’re located in Los Banos in the San Joaquin Valley where agriculture accounts for nearly 95 percent of the economy,” he related. “The recent drought and the ’08 downturn had a tremendous impact on the local economy.

Our store has yet to reach the retail and rental sales level it had prior to the recession.”

Compare that, he added, to a different valley, the Silicon Valley, only 60 miles due west where the computer chip, not agriculture, is king. “The economy there is booming and the rental market is strong. Not to say we don’t look to grow next year. We do and I would be happy with a 4-percent growth, similar to what we had last year.”

Sorensen joined the family hardware and equipment business in 1974.

A rental department was added 12 years later in 1986. The other world he was referring to is the labor force he employed in 1974 compared to the labor force today.

“Back in the early 70s we could pay our employees 20 percent more than even the city could pay them. Now, we find it difficult to compete on the wage front. You can’t pay the type of people we need in both the hardware and rental business, those who have experience in the electrical and plumbing trades and with equipment, what they’re worth.”

Despite recent challenges, Sorensen is optimistic about 2017 and beyond.

“Rental has been a good business for us and we expect it to continue to be a good business,” he added. When asked about the potential impact the Trump administration would have on have on the local agriculture economy and labor, he didn’t want to speculate. Only time will tell.

Optimism is High in the Northwest that Trump Will Make Good on his Word Last year was a good year for Lake City E quipment & Event Rental.

Between two locations, one in Hayden, ID and another in Spokane, WA, business was up 15 percent over the previous year. Owner Mike Macomber anticipates the same for this year, maybe even better if the Trump administration does what it says it’s going to do.

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3/21/17 9:43 AM

MARKET WATCH

WHEN THE OIL P RICE G OES U P, WE G ET THE TRICKLE-DOWN EFFECT F ROM P EOPLE W HO ARE M AKING M ONEY, T HOSE WHO ARE P URCHASING NEW HOMES OR U PGRADING THEIR CURRENT ONES.

“ L a s t y e a r, despite the regulations, people were m a k i ng it h ap pen here,” reported M a c o m b e r. “ It w a s g o, g o, g o for framers, concrete contractors, and e ve n l and scapers, many of w hom re p or te d having one of the best years in a long time. If the Trump administration can reduce the tax burden and bring industry back into this country, this year should even be better.”

But this veteran of more than 20 years in the industry is a realist, too.

“The Great Recession was devastating for us and catastrophic for many rental stores that were leveraged beyond their means. The recession had a residual effect and owners who have gone through it and survived are a bit more cautious about overextending themselves. It’s not just what’s happening to the economy in this country, but what’s happening around the world that impacts our industry and others.”

With that said, Macomber remains very optimistic about this year, not to say there aren’t challenges to overcome.

“Our biggest challenge is trying to find quality employees,” he said. “This business is not your typical retail operation.

Our employees need to be knowledgeable about the equipment they’re renting, something that one can’t just learn overnight.

“The other ongoing challenge is competition. A pent-up demand for services has given many more people the idea there’s money to be made in the rental market,” Macomber observed.

As he pointed out, competition isn’t

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all bad; it just makes stores sharpen their pencils. If nothing else, Macomber’s looking for Trump’s administration to make that sharpening a little less onerous.

The Economy is Top of Mind in Texas When asked what his store’s biggest challenge will be in 2017, Hayden Gallagher, president of Q Rental Inc., said quickly, “The economy, what else? He noted his Mathis, TX store’s rental sales have been down considerably for the last two years. In fact, he only purchased one new piece of rental equipment last year and has plans for only a couple more this year.

The price of oil is part of the problem, said Gallagher, who started his rental operation in 2004. Prior to that he worked as a highway contractor.

“When the oil price goes up, we get the trickle-down effect from people who are making money, those who are purchasing new homes or upgrading their current ones. This hasn’t been happening the last few years. We’re hoping the

new administration will turn the economy around, not only for those in the oil industry but for others, as well.”

In the meantime, Gallagher has diversified, looking to retail sales to bring in more customers. His store picked up Stihl outdoor power equipment, along with Jacobsen Truckster utility vehicles and Dixie Chopper mowers. He also opened his shop to work on all brands of customers’ equipment and has started to sell units in its rental fleet.

“Retail sales have certainly helped us keep going in a down economy,” Gallagher said. “As the economy improves, we will bring on more rental units again, as always letting customers dictate what items we add to our fleet.”

Localized Missouri Rental Market Likely Insulated from Political Change Located in the Ozark foothills, Top Quality Rental Sales has been in business 14 years.

Owner of the general rental store in Doniphan, MO, James Fletcher, doesn’t expect the Trump administration to have much of an impact on his business.

“We’re in a small town with a population of 14,000 or so,” Fletcher said.

“The market here is driven by a few manufacturers and chicken farms.

“Last year was a good year for us and we think this will continue into this year. Our store rents primarily to smaller contractors involved in custom homebuilding for single-family homes.”

Fletcher calls his business very niche oriented and in some ways insulated from larger market forces. The area is both a tourist attraction and an attractive place to raise a family and retire, all of which doesn’t hurt the rental business. ■

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3/21/17 9:43 AM

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MANUFACTURER PROFILE

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CONSTR UCTION & FORES TRY RENTAL John Deere Construction & Forestry Division, a leading producer of heavy and light construction equipment, and the world’s leading manufacturer of forestry equipment, continues to build on its history of innovation and fulfilling its pledge to listen and respond to rental customer needs.

John Deere construction equipment is used in numerous types of earthmoving applications, including road building, underground utilities, site development and residential construction; and in material handling, road repair and maintenance. John Deere’s Construction & Forestry Division products are distributed through a network of more than 600 dealer locations worldwide.

John Deere values its relationship with Independent Rental Companies – large and small.

Overall, John Deere has a product line that is a great fit for rental needs. A trusted brand contributes to high rentability, and a trained dealer network is ready to support rental stores. Today’s construction equipment rental offerings consist of: • Backhoe Loaders • Compact Track Loaders • Crawler Dozers • Excavators • Skid Steers • Tractor Loaders • Wheel Loaders John Deere also sells other products into the rental segment, including Gator Utility Vehicles, compact utility tractors, and OEM engines available from other John Deere divisions.

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Several years in the making and designed with direct customer feedback, John Deere recently introduced four Final Tier 4 G-Series skid steers (312GR, 314G, 316GR, 318G) and one compact track loader (317G). These machines are proving themselves as the most rentable and most reliable skid steers and compact track loaders John Deere has ever built. Rental industry professionals helped design the new G-series, with four models under 6,500

pounds so they’re easy to transport, easy to operate, easy to service and easy to keep on rent.

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

NEW PRODUCTS Here’s the latest of what leading suppliers have to offer

SHOWINTROS The industry looks to be in for another year of growth, which means the time is right to consider new lines of equipment. Check out some of the products introduced at The Rental Show and Conexpo-Con/Agg.

 JCB Teleskid JCB debuted the world’s first skid steer and compact track loader with a telescopic boom. The JCB Teleskid has a forward reach of 8 ft., a lift height of 13 ft. and can dig below its chassis to a depth of 3 ft.

• Bucket-positioning leveling system allows bucket level to be set and maintained throughout the boom’s range of movement

 Bobcat R-Series

 Ditch Witch ST37X

The next-generation R-Series excavators will initially include the E32 and E35 in the 3- to 4-ton size class, with additional models to be introduced at a later date.

The all-new machines feature dual-flange rollers that extend the undercarriage structure closer to the track’s edge and provide up to a 15% increase in over-theside capacity and more stability.

Ditch Witch’s construction-grade ST37X stand-on trencher is designed for heavyduty operation with an integrated digging system.

• Integrated rear counterweight design lowers the center of gravity to further enhance machine stability

• Tier 4 37-hp Yanmar diesel engine

Excavators

• Strengthened hinges and latches and rigid, aligned excavator panels reduce vibration in the cab • Easy-to-reach control pattern selector allows operators to quickly switch from ISO controls to standard controls.

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Stand-On Trencher

• Multi-position trencher

• Fully enclosed cab that is 33% larger than industry average • JCB’s myCHOICE software allows control responsiveness and joystick sensitivity to be tailored to suit operator preferences • 74-hp JCB Ecomax Tier 4 Final engine will provide high torque at a low rpm Search: 12312995

• Centerline to offset digging • 74-sq.-in. spring-supported operator platform • Heavy-duty, 50,000-lb. chain • Trenches up to 16 in. wide and 36 in. deep

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• 43 in. of track on ground

USE THE EIGHT-DIGIT CODE

• Standard, dual-lever ground drive controls

For more information on any of the products in this issue, simply type the unique eight-digit code into the search bar at the top of www.ForConstructionPros.com/Rental.

• Track tensioning system with grease cylinder for easy adjustments, track removal and maintenance Search: 12308578

 New Genie SX-105 XC and SX-125 XC Telescopic Booms Round Out XC Line

Updating the legacy Genie S-105 and S-125 telescopic boom lifts, the new Genie SX-105 XC and SX-125 XC booms are engineered to work in more applications that require higher capacities.

• Industry-leading dual lift capacity — 660-lbs.

• Smooth operating envelope • 80-ft. of outreach • Ability to work 8 ft. 10 in. below grade Search: 12315595

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3/20/17 1:55 PM



NEW PRODUCTS Here’s the latest of what leading suppliers have to offer

 Perkins Syncro Line Perkins introduces a range of compact engines, including the Perkins Syncro 1.7- and 2.2-liter electronic products, to deliver optimized performance for today’s rental market.

• Power from the Perkins Syncro 2.2-liter, four-cylinder turbocharged aftercooled model has been boosted to 67 hp with a maximum torque of 208 Nm at 1,800 rpm • Rated speed is up to 2,800 rpm • Customers also have the option of a turbocharged model offering up to 48 hp • Performance from the three-cylinder turbocharged Perkins Syncro 1.7-liter is 39 hp with a maximum torque of 120 Nm at 1,800 rpm, with rated speeds up to 2,800 rpm • All models feature common rail direct injection and full authority electronics and meet U.S. EPA Tier 4 Final/EU Stage IIIB emissions standards Search: 12311300

 JLG Enters Utility Vehicle

Market with 315G & 615G JLG has entered the utility vehicle market with its new three-seat 315G and six-seat 615G utility vehicles.

• 10-in. ground clearance • Four-wheel drive with independent suspension

 Little Wonder Enhances Optimax Blowers’ Proven Performance with New Accessories Little Wonder introduces new accessories — a tool holder, parking brake and solid front wheel — to its Optimax blowers, adding convenience and safety as well as increased durability.

• 12-guage steel tool holder attaches to either side of the blower to hold a shovel or broom; two tool holders can be added for maximum productivity • Parking brake kit can be added to push models to secure both wheels, which reduces roll-offs on hills and enhances security during transportation • Solid wheel option adds durability for applications in abrasive terrain • Optional, easy-to-install Swivel Wheel Kit gives users the ability to make 360-degree turns while minimizing tire wear

• 1,000-lb. cargo box • 1,500-lb. towing capacity • Removable truck bed panels accommodate a full size skid • Rugged axle, standard skid plate, brush guard bumper, heavy-duty steel frame and powder-coated paint enhance durability Search: 12312988

 Barreto 13STKH/16STKB Track Trencher

With its compact size and weight of 1,085 lbs., the STK track trencher has the same key features as Barreto’s larger track trenchers and features an innovative new track system and compact frame design to provide both stability and maneuverability.

• Hydraulic cooler with incorporated fan keeps oil temperatures regulated • Adjustable Trenching Controls (ATC) use rod linkage instead of cables and can be positioned to modify the trenching speed of the tracks individually while on the go, keeping trench straight

• Independent floating track system utilizes independent undercarriage idlers that move in response to the terrain, keeping a significant portion of the track in contact with the terrain at all times, reducing ground USE THE EIGHT-DIGIT CODE pressure and increasing traction conditions For more information on any of the products in this issue, Search: 12315637 simply type the unique eight-digit code into the search bar at the top of www.ForConstructionPros.com/Rental.

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 Generac Introduces Three New Light Towers With Durable LED Fixtures

Generac Mobile Products introduces the MLT6SMD light tower, PLT240 LINKTower TM, and MLT4060MVD light tower.

Each light tower comes equipped with four durable 240-watt LED lights.

• MLT6SMD and MLT4060MVD feature a multi-speed engine that runs at low speed when the LED lights are on, conserving fuel, reducing emissions and extending run time up to 580 hours on one tank of fuel • PLT240 LINKTower offers the same illumination power as a full-size LED light tower but is powered by a standard 120 V outlet and can be run off any other power source, including another light tower • Multiple LINKTower units can be connected together to accommodate larger mobile lighting needs Search: 12311311

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

NEW PRODUCTS Here’s the latest of what leading suppliers have to offer

 Point of Rental Elite Software Point of Rental Elite is a fully customizable software that adapts to the current infrastructure that a company is using.

• Standard with flexible features including user-defined KPIs for analytics reporting • Multilingual • Fully integrates with other applications such as SmartEquipment, Rouse Analytics, Microsoft CRM, SalesForce and AEMP Telematics • Features include Contract Fulfillment, Dispatch Center and Mobile Workforce • Software tailored to each company but shared code enables all companies to access new features Search: 12311777

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 Sullair Unveils New 1600H Tier 4 Final Air Compressor

The new BOMAG BVP 10/30 compactor is designed for day-to-day use in soil and asphalt repair and maintenance compaction applications.

Sullair’s new 1600H Tier 4 Final portable air compressor is powered by the Sullair 25 Series air end and a Caterpillar C15 engine, offering versatile operation, rated at 1,600 cfm at 100/150 psi.

• Weigh just over 100 lbs.

• Completely redesigned Tier 4 Final emissions-compliant 1600H is 20% smaller and 2,500 lbs. lighter

• Compact design with 11.8- by 20-in. plate width and length • Generates 2,250 lbs. centrifugal force at working speeds reaching 82 fpm

• Improved fuel efficiency - approximately 20% lower part load fuel consumption and 10% overall fuel consumption - with up to 10 hours of uninterrupted run time Search: 12312938

• Optional vulcolan mat for setting paving stones.

• 2.8-hp Honda gas engine

 Karcher Electric Pressure Washers

Search: 12312002

Karcher’s North America’s new line of electric pressure washers with TruPressure deliver up to 30% more cleaning pressure than competitors, according to the manufacturer.

• Includes the K1700, K1800, K1900 and K2000 models • On/off foot pedal switch • Turbo nozzle with maximum cleaning power for stubborn, hard-toclean areas • Ergonomic cord holder winds at a high level near the handle to reduce awkward bending • Compatible with industry-standard pressure washer hoses and accessories Search: 12310532

 Case C Series Mini Excavators The Case C Series mini excavator line includes six new models with zero tail swing, short-radius or conventional design.

• Adjustable boom with ability to offset left or right • Auto-shift travel system • Auxiliary hydraulic system with standard proportional controls, shutoff valve and joystick control patterns Search: 12312858

 Kohler KD Series Industrial Generators The KD Series of large diesel industrial generators are available globally in nodes ranging between 800 and 4200 kVA. They are powered by a new line of Kohler G-Drive engines, which will deliver between 709- and 3,608-kWm standby power at 50 Hz and between 891- and 4,250-kWm standby power at 60 Hz. • Designed to meet global emissions regulations • Highly customizable to match end user’s specific requirements • Designed for high ambient temperature conditions • High technology regulation and monitoring control systems on each component Search: 12309963

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After more than a century of listening to customers, we understand what you need on the job. And we deliver it with every durable, reliable Chicago Pneumatic product we make. See the full range at cp.com

Handheld Pneumatic & Hydraulic Tools

Portable Compressors

Light Towers & Generators

Compaction Equipment

Articulated Asphalt & Soil Rollers

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

NEW PRODUCTS Here’s the latest of what leading suppliers have to offer

 Minnich

Backpack Vibrators

Minnich Manufacturing introduces new gas-powered 50cc backpack model and updated 35cc unit designed to maximize comfort, mobility and productivity.

• Ergonomically designed, fully adjustable harness reduces strain and fatigue • Throttle assembly with combined quick disconnect allows core/casing to be changed out in seconds • Powered by Honda mini four-stroke engine for reliable performance, and the 35 cc version will have an allposition diaphragm carburetor for operation in any position without stalling

 Wacker Neuson 8115L All-wheel-Steer Wheel Loader Wacker Neuson’s 8115L all-wheel steer loader offers the power and capacity for larger jobs, but has a compact design to access hard to reach areas.

• Operating weight of 13,338 lbs. and straight tip bucket load of 9,480 lbs. and 7,992 lbs. with forks • Powered by 100-hp Deutz Tier 4 Final turbo diesel engine that does not require a DPF • Includes a rigid one-piece chassis that prevents shifts in the center of gravity even at full turn and a 40° steering angle on each axle for a high degree of maneuverability Search: 12313656

 Vacuworx introduces CM 3 Compact Modular Vacuum Lifting System

The Vacuworx CM 3 Compact Modular Vacuum Lifting System is adaptable to multiple applications and host machines and features rugged all-steel construction to handle materials up to 6,600 lbs.

• Patent pending CM 3 is adaptable to a wide variety of material handling needs, allowing larger skid steers and track loaders to lift concrete slabs, steel plates and pipe • Hydraulically driven vacuum pump operates off auxiliary hydraulics from the host machine (minimum 10 gpm required with maximum 3,000 psi) Search: 12314097

Search: 12313569

 Takeuchi TB216H

 Haulotte HA80 RTJ

Pro Articulated Boom

Haulotte introduces the HA80 range which builds on the same design, architecture and performance levels that drove the success of the HA46 and HA61 ranges of articulating booms • ACTIV’Lighting System-Safe Load illuminates controls and the area around the boom • ACTIV’Shield Bar 2.0 is fully provides a “safety gap,” so workers are protected from risk of crushing without compromising productivity • Combines three key assets: working height of 86 ft. 1 in., up-and-over clearance of 30 ft. 6 in., and 57-ft.

5-in. horizontal outreach to work in hard-to-reach areas.

Search: 12315720

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Hybrid Excavator

 Deere 30G

Mini Excavator s

John Deere replaced its 27D mini excavator with the new 30G with a 22% increase in bucket digging force and 11% increase in arm force.

• Comes with all standard G-Series features, including mechanical pattern changers, quick couplers and proportional auxiliary hydraulics plumbed to the end of the boom • 16% increase auxiliary hydraulic flow • 9-ft. 2-in. dig depth • Third service door improves access to the cooling core and other daily checkpoints Search: 12313318

The TB216H features both an electric motor and diesel engine with its own pump group to power the machine’s hydraulics. This dual-power feature enables the operator to work indoors or outdoors, greatly increasing versatility.

• When in diesel mode, machine is powered by a Yanmar Tier 4 Final engine offering output of 14.9 hp • For emissions-free environments, the machine can be powered by the 14.2hp electric motor • Diesel engine is ideal for normal dayto-day operation, to load, unload and power the machine to an enclosed jobsite where the machine can be plugged into a 400 – 480 volt three-phase power source for 100% emission-free operation Search: 12315746

www.ForConstructionPros.com/RENTAL

3/20/17 1:55 PM

EFFICIENT • QUIET • DEPENDABLE • PROFITABLE

MMD PowerPro™ Mobile Generators are engineered to handle the most rugged requirements for temporary jobsite power. Mobile, dependable and easy to operate, PowerPro™ towable generators are the right choice for all of your light-duty and medium-duty temporary power needs. Pictured Top to Bottom: MMD PowerPro™ 25, 40, 45, 65, 125 and 150

The MMD Lynx-Lite Pro Light Tower features a durable and efficient Kubota Tier-4 engine with a 72 hour runtime. The four 1000 watt metal-halide lamps produce lighting for any situation.

MMD Airman Air Compressors have been designed to perform. When it comes to product efficiency and dependability, they are extremely reliable, helping reduce downtime and maintenance. They meet environmental concerns and are fuel-efficient, light, and wellbalanced. Pictured Left to Right: Airman PDS185S, PDS100S

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Search: 10073936

3/20/17 1:55 PM

SJ85AJ LAUNCH READY!

Skyjack’s new SJ85AJ Articulating Boom is e

DUAL CAPACITY RATING OF 750/500LBS (227/340 kg)

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om is engineered with simple reliability in mind.

CLASS LEADING 85’ (25.91 m) PLATFORM HEIGHT

34’ (10.36 m) UP AND OVER CLEARANCE

TRUE VERTICAL RISE

Launching the newest addition to its growing boom lineup, the SJ85AJ RELAY BASED CONTROLS

fills out Skyjack’s offering in the core 40’, 60’ and 80’ boom classes.

www.skyjack.com VISIT US AT THE RENTAL SHOW BOOTH 4138

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

STATE OF THE RENTAL INDUSTRY B y J e n ny L e s c o h i e r, e d i t o r

WHERE ARE WE HEADED

IN 2017?

Economic forecasts suggest solid growth through 2020, but uncertainty lingers over Trump administration’s policies

I

f you were among the many who attended The Rental Show and/or Conexpo-Con/Agg this year, it’s likely you either felt or at least picked up on the excitement coursing through the exhibit halls.

There was a palpable feeling of enthusiasm at both events, supported by news that buying activity was brisk.

Add to this reports from the American Rental Association that industry growth is back on a solidly positive trajectory and you can make a solid case for optimism in equipment rental. What’s the impetus behind the sentiment? Some point to a new administration which promises fewer regulations and greater spending on infrastructure, while others suggest it’s simply a happy confluence of economic factors leading to an increased demand for equipment among construction professionals who are well aware of the benefits of renting.

Latest ARA forecast predicts solid growth through 2020 At its annual press conference at The Rental Show in February, the American Rental Association reported its projection for U.S. equipment rental revenue to reach $48.9 billion in 2017 and then continue to grow at an average annual rate of 4.3 percent to top $56 billion in 2020.

Construction and industrial equipment rental revenue is forecast to grow by 3.7 percent in 2017, 4.2 percent in 2018, 5 percent in 2019 and 4.2 percent in 2020. John McClelland, ARA vice president for government affairs and chief economist, said revenues for the general tool segment are expected to grow even faster during the out years of the forecast because of continued improvement in the U.S. housing market, with increases of 2.9 percent in 2017, 5.1 percent in 2018, 5.3 percent in 2019 and 6.6 percent in 2020.

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

“We continue to see strength in key economic data that drive our rental revenue estimates,” said McClelland. “The economy continues to gain strength and the promise of tax reform, reductions in regulations, a more accommodative energy policy and additional infrastructure will only add to that strength. The big question continues to be how fast these changes will occur and go into effect.”

In 2016, the ARA’s quarterly updates showed positive expectations, but included a gradual slowing in the expected growth of rental revenues over the year, according to — Scott figures compiled by IHS Markit, the economic forecasting firm that compiles data for the ARA Rental Market Monitor. The first new quarterly forecast for the ARA Rental Market Monitor in 2017, however, reverses the trend with an expected gradual increase compared to last quarter’s forecast.

“The economy definitely hit a soft patch toward the middle of 2016 that somewhat lowered our expectations for growth in the economy as a whole as well as rental revenues,” said Scott Hazelton, managing director of IHS Markit. “We are now seeing a reversal in that growth trend suggesting a return to positive changes in our outlook for rental.”

from 52.9 percent in 2015 to 52.8 percent in 2016.

But according to experts, the flatness of the index this year does not suggest a leveling off of rental activity but instead, is due to the allocation of resources.

“The continued redeployment of equipment from oil and gas projects in early 2016, coupled with the expan-

Survey results suggest contractors will keep renting

Concern about the rising cost of equipment is creating concern among contractors who, in turn, expect to support construction expansion by renting equipment in 2017, according to the Wells Fargo Construction Industry Forecast 2017. Although their study says most (49 percent) continue to believe rentals will remain flat, a growing number of contractors (38 percent, up from 27 percent in 2016) believe it will increase.

The largest percentage of contractor respondents Hazelton, Managing Director of IHS Markit (49 percent) cited the need for flexibility as the most important factor in renting equipment instead of buying, while 29 percent said rental equipment being readily available is also very important.

“Rental companies, distributors and mansion in 2016 construction spending and ufacturers might notice that their employment, meant that contractors customers indicated increased rentwere expanding their fleets at a slightly al costs as a driver of more purchasing higher rate than rental companies were behavior. Even a small increase in rental expanding their fleets. The 10 basis rates of less than 5% could cause almost point change in the Rental Penetration one in five contractors to consider Index really indicates that rental compapurchasing over renting equipment,” nies in the construction and industrial said John Crum, senior vice presiequipment space are holding their own dent and national sales manager of the against increasing equipment acquisiConstruction Group at Wells Fargo tions by contractor fleets even in the Equipment Finance. face of some headwinds in early 2016,” Contractor respondents said they said Hazelton. would need a larger backlog of jobs to “Our forecast of a 3.9-percent feel more confidence in buying (and increase in construction and industrial the construction backlog fell 4% in the equipment investment in 2017 comlast quarter of 2016). At the same time, pared to 2016 is much stronger than distributors plan to reduce rental fleet the 2.1-percent investment growth sizes. As the demand for rentals increasfrom 2015 to 2016 and suggests that the es, distributors should manage fleet growth in rental fleets will continue to sizes accordingly, according to Wells increase,” said Hazelton.

Fargo. If distributors reduce fleet sizes,

“ WE ARE NOW S EEING A R EVERSAL IN THAT G ROWTH TREND S UGGESTING A R ETURN TO P OSITIVE CHANGES IN OU R OU TLOOK FOR RENTAL.”

Rental penetration remains flat A measure of how much potential market exists, the Rental Penetration Index is an estimate of how much equipment in use is rented vs. owned. IHS Markit reported the Rental Penetration Index for 2016 fell by 10 basis points

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

STATE OF THE RENTAL INDUSTRY

ARE WE FEELING THE TRUMP BUMP? Donald Trump’s surprising presidential election win has thrown expectations for the 2017 economic outlook into something a tailspin.

The probability distribution of potential outcomes is now greater than it otherwise would have been. Underlying aggregate demand has been consistently growing at around a 2-percent pace since the recession ended. Complacency had set in for decision makers. This past year should see growth slow further to just a 1.5-percent pace as fallout from the energy slump and slower economic growth overseas weighed on capital goods producers and exports, according to Wells Fargo.

Even with a slowdown in real GDP growth, employment growth remained steady and the unemployment rate looks like it will end the year below 5 percent. With the return of full employment, monetary policy was already expected to become less stimulative. The probability of progressively less stimulative monetary policy is now higher. Fiscal policy is also now likely back in play, particularly given that Trump began his term with both houses of Congress in Republican control, marking the first time a single-party had cont ol since 2010 and the first Republican single-party control since 2006.

The policy shift could be seen as coming at an opportune time. Consumer spending has showed signs of firming in ecent months and confidence is at the highest levels of the present cycle. Still, higher costs for out-of-pocket health care expenditures are reducing discretionary spending, as is evident in recent weakness in the restaurant sector. One risk is that this weakness will spread and intensify as household budgets are crimped further by steep increases in health insurance costs that kicked into effect at the start of 2017.

Energy prices have stabilized as the OPEC meeting resulted in agreements to scale back production enough to support higher prices. As of this writing, both Brent and WTI oil prices are just above $50/barrel. Wells Fargo says it continues to look for energy prices to firm over the fo ecast horizon, but crude oil inventories remain historically high and OPEC is producing well over its stated limits, making such a forecast far from certain. If prices were to hold near their current level, the energy sector would benefit considerabl . Break-even prices for oil production have fallen considerably as the industry has become much more efficient Should they occur, the combination of potential tax cuts, reduced regulation and increased federal government spending for defense and infrastructure would keep employment and income growing at a solid pace, although it also raises some concerns about pushing wages up a bit more rapidly. The timing of big fiscal policy measures like infrastructure programs coming when the economy is at or near full employment could stoke inflation. Such a development is not necessarily a bad thing, according to Wells Fargo, particularly given how hard policy makers have been striving for that outcome. Fed Chair Janet Yellen and other Federal Reserve officials have discussed the merits of allowing the labor market to run a little hot for a while. The Fed’s thinking is that although the unemployment rate has fallen back near levels consistent with full employment, considerable slack remains in the labor market due to underemployment and the persistent drop in the labor force participation rate over the past few decades.

purchasing their used equipment may be an opportunity for some contractors. Many respondents expressed concern for political and regulatory uncertainty with national and local economies, but still feel optimistic.

Rental of heavy construction equipment remained strong in 2016, but decreased slightly, with 80% of contractors saying they rented heavy equipment, according to Wells Fargo. On par with previous years, only about one-fifth of those who did not rent heavy construction equipment in 2016 anticipate rent-

THE F LATNESS OF THE INDEX THIS Y EAR DOES NOT S UGGEST A LEVELING OFF OF RENTAL ACTIVITY BUT INSTEAD, IS DUE TO THE ALLOCATION OF RES OURCES .

— Scott Hazelton, Managing Director of IHS Markit ing equipment in 2017. What would it take to consider buying equipment instead of renting? Just under half of the respondents (48%) said they would consider buying over renting if rental costs increased slightly or moderately. Nearly onefifth of respondents stated that it would only take a slight increase in rental prices to cause them to consider a purchase. ■

Source: Wells Fargo 2017 Annual Economic Outlook

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MANUFACTURER PROFILE

WITH ALL ACCESS EQUIPMENT, IT IS TRUE THAT

GREAT THING S COME IN SMALL PACKAGES

CMC 50L

All Access Equipment has been working with tracked lifts for many years now, and our CMC lifts are the perfect solution for your various application needs. We offer lifts of all sizes, ranging from 50 ft up to 135 ft. Our lifts up to 83 ft will all enter virtually any 36” door or gate with no problem. Our track drive system provides users the capability to navigate through narrow corridors and tight spaces, which will allow you to position the lift exactly where you need it. The variety in power options provides another advantage. Depending on the model, we offer Honda gas engines, Kubota & Hatz diesel engines, as well as 120V plug-in electric motors, and lithium ion batteries options. The lithium ion batteries allow the user to work a full shift (~10 hours) without needing to recharge. With All Access Equipment, it is true that great things come in small packages.

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CMC 60L

CMC 50L 44 ft platform height 23 ft lateral outreach 32” wide for single door access Only 4,310 lbs Fits in 10’ freight elevator Simple all-hydraulic controls CMC 60L 56 ft platform height 29 ft lateral outreach 30” wide for single door access Only 4,938 lbs Fast boom speeds Simple all-hydraulic controls

Other models available from 50 to 135 feet.

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MARCH 2017

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MANUFACTURER PROFILE

NEW JCB ACCESS PLATFORMS

BUILT TO A HIGHER S TANDARD When working above ground level, powered aerial access platforms are an attractive and safe alternative to ladders and scaffolding. That’s why these machines – scissor lifts, articulating booms and telescopic booms – are in increasingly high demand on job sites worldwide.

However, not just any access platform will do. In response to demand by rental store operators and contractors for a safer, more reliable aerial lift solution, JCB has announced its new Access range. Designed by JCB and built by JCB to a higher standard – a JCB standard – the range comprises 27 models which will be released in North America throughout 2017.

Each JCB Access machine is TUVcertified to EN280, to ensure that it meets the highest quality standards, and complies with the latest ANSI and CSA requirements. As with all JCB equipment, when a JCB Access platform needs replacement parts or service, the company’s 320-plus authorized dealer locations are ready to provide fast, world-class support.

JCB Access will offer rental companies and contractors a wide selection of aerial machines, including nine electric scissor lifts from 15’ to 45’; three diesel-powered rough-terrain scissor lifts; four diesel-powered articulating booms from 50’ to 80’; an electric articulating boom with a 45’ working height; and 10 diesel-powered telescopic booms from 65’ to 135’.

To learn more about JCB’s Access platforms, or to find your nearest JCB dealer, visit www.jcb.com.

/JCBNA

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@JCBNA

JCBNA www.jcb.com

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JCB’s Tier4 Final telehandler range A no hassle equipment solution.

• The FIRST Tier 4 Final telehandler up to 12,000lbs lifting capacity, with no DEF and DPF requirement.

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4458

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY

By Rod D ickens, c ontributing e ditor

STATE OF THE

CONSTR UCTION

INDUSTRY 2017 Leading construction economists reflect on 2016 and share their outlooks for 2017 and beyond

T

he year 2016 will b e remembered for many things. But for those in construction, it will likely be recalled for its mix of opportunities and challenges, as the market gained momentum in the first half only to falter in the second half in the face of labor shortages, the slow-growth general economy and an increasingly tumultuous presidential election cycle.

At the close of the year, we asked leading construction economists to share their views on the progress made and what the industry might encounter in the months ahead. Following is their outlook for general construction.

Building Construction

p While multifamily construction is likely to see a downturn, a number of other forms of building construction are expected to grow modestly or remain flat in 2017.

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Did building construction in both the commercial market and single- and multi-family homes continue to gain momentum in 2016 as expected? What is your estimate of starts for 2017?

Ken Simonson, chief economist, Associated General Contractors of America (AGC):

Office construction, which started to take off in 2015, grew even faster in 2016. Based on the huge projects that have been announced for numerous cities, 2017 will be another strong year for office work. Most of that is happening in center cities and entails mixed-use projects, unlike the standalone, low-rise, suburban office parks that predominated before the recession.

Data centers, warehouses and hotels have been hot segments for several years. That continued in 2016. For 2017, the data center niche appears to remain strong although, ironically, there is no data on data centers as a separate category. Warehouse work is likely to post slower growth, and hotel work could turn negative in 2017 or early in 2018.

Retail construction, aside from the ground floor of mixed-use buildings, is headed for another weak year.

Among institutional categories, school construction is benefiting from passage of more school district bond issues. But growth is likely to be modest. Meanwhile, state university and community college construction is being hurt by declines in enrollments and in state revenues in many places.

Healthcare construction will probably grow, but not dramatically.

Multifamily construction put in place again grew faster than single-family in 2016. But starts for multifamily have declined recently. There is no longer an overhang of permits, and apartment rents have

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3/21/17 8:07 AM

MANUFACTURER PROFILE

JENNY PRODUCTS —

QUALITY SINCE 1927 A manufacturer doesn’t acquire 90 years of history by building shoddy merchandise, which is why the focus for Jenny Products, Inc. has always been as an innovator and producer of the finest air compressors and pressure washers available.

Jenny manufactures a complete line of hand-carry and wheeled-portable compressors, all built to withstand the rigors of the rental market. Features such as cast iron pumps that are splash lubricated with Jenny Ultimate Blue synthetic oil, or belt drives with large flywheels for easier start-up and extra cooling, all lead to long life and minimal maintenance.

Jenny also manufactures pressure washers that are built with heavy-gauge steel and feature industrial-grade triplex ceramic plunger pumps that deliver a lengthy service life while providing the ultimate cleaning experience.

The only time people notice an air compressor is when it’s not working.

That’s why Jenny has basically gone unnoticed since 1927. It’s the hazard of offering the most reliable compressors on the market, but we wouldn’t have it any other way…nor would our customers.

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY

ticked down in some previously fastrising metro areas. These indicators all point to a downturn in multifamily construction spending once current projects finish up. That could occur in late 2017 and is very likely by 2018.

Single-family spending growth has been inconsistent but should accelerate slightly in 2017.

Robert Dietz, chief economist, National Association of Home Builders (NAHB): NAHB expected to see gathering strength for single-family construction and a slowing of growth for multifamily development in 2016.

For the most part, this has proved true.

Multifamily development has slowed as that market seeks a balance between supply and demand. Multifamily starts for 2015 likely represented a cycle high.

We expect multifamily starts for 2017 to be just over 380,000.

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Single-family construction continues to recover. We expect single-family starts to be up 8% for 2016, and more gains in 2017 and 2018 as additional labor and lots are added to the industry’s production pipeline. NAHB is forecasting single-family starts to total a little more than 870,000 in 2017.

MULTIF AMILY DEVELOP MENT HAS S LOWED AS THAT MAR KET SEEK S A BALANCE BETWEEN SUPPLY AND DEMAND.

p The outlook for 2017 calls for continued growth in both residential and commercial building construction but at a more moderate rate.

Anirban Basu*, chief economist, Associated Builders and Contractors (ABC): Low interest rates are a distinctive characteristic in much of the world, causing investors to go on a global hunt for yield on investment.

This has helped to push global capital into riskier investments like stocks and real estate.

Moreover, America’s relatively better economic performance than much of the advanced world, including Japan and much of Europe, as well as the trials and tribulations of emerging economies like China, Brazil, Russia, South Africa and Turkey, has resulted in a disproportionate share of global capital heading

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3/21/17 8:07 AM

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY

to America. This has helped to push up asset prices, generating positive wealth effects and leading to rising levels of investment, including in apartment, office and hotel construction.

Investment of these types may flatten in 2017. Commercial real estate lending standards have begun to tighten due to a combination of growing concerns among regulators and bankers regarding excessive valuations and construction. Expected increases in interest rates also serve to suppress the construction forecast.

Jeannine Cataldi, IHS: In 2016, the residential market was largely

driven by spending on construction of multifamily units, as single-family construction took a step back. Drivers of growth in the multifamily market continue to be related to pent-up demand from the recession, as well as a new generation of households that seems to be wary of actual home buying and content to rent. Singlefamily construction faltered as labor and financing constraints held back activity.

Looking ahead, construction spending in 2017 will moderate in the multifamily segment as supply begins to align with demand. Single-family

“ COMPANIES ARE FINDING W ORKERS B UT NOT ONES W ITH THE LEVEL OF CONSTR UCTION EXPERIENCE THEY WOULD P REFER. THAT S TORY I S LIKELY T O CONTINUE IN 2 017.”

— Ken Simonson, Associated General Contractors of America (AGC)

construction is expected to remain weak as pent-up demand is releasing slowly into the market. Housing starts are expected to grow at a stronger pace in 2017 than in 2016.

In the commercial segment, growth was relatively strong in 2016. Growth for 2016 will be stronger than that seen in 2015 as both the office and lodging components have remained robust through the first nine months of the year.

The outlook for 2017 calls for spending on commercial construction to continue but at a more moderate pace. There is some impact to business from the strong dollar and moderate global growth expectations.

The strongest growth is expected in the office segment, which is being driven by employment, income and consumer confidence gains that benefit from improving economic conditions.

Warehouse construction will also be healthy in 2017 as the increasing share of e-commerce retail sales creates a greater need for distribution centers.

Employment Please discuss the labor shortage in the construction industry.

Do you see this trend continuing in 2017? What can the industry do to help alleviate future labor challenges?

AGC: AGC of America surveys members each summer about workforce issues. Of the 1,459 respondents to the 2016 survey, two-thirds said they were having trouble filling at least one craft position, and half were having trouble finding supervisors or project managers. These fractions were actually down

t Industry data suggests that construction companies are finding workers but not with the level of construction experience they would prefer. That story is likely to continue through 2017.

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY

a bit from 2015 but still indicate a major, ongoing challenge for many contractors.

Bureau of Labor Statistics data show that construction industry employment is rising at about double the growth rate for the overall economy, but contractors are listing open positions for longer, and spending more on training and overtime. These measures all suggest that companies are finding workers but not ones with the level of construction experience they would prefer. That story is likely to continue in 2017.

Contractors are trying many ways of coping with this. They are getting involved with high schools, community colleges and workforce development agencies to get out the word that the industry is hiring and has well-paying, long-term employment opportunities. They are turning somewhat more to labor-saving equipment, methods such as BIM and tools such as drones, 3D printers and robots. In some cases, prefabrication allows substitution of factory for field workers. But there’s no one size fits all solution.

N A H B : L a c k of labor is the No. 1 factor holding back residential construction in a period of tight inventory. Over the last year, according to estimates from the Bureau of Labor Statistics and NAHB analysis, the job openings rate (unfilled jobs) has averaged just under 2.5% — the highest rate since before the recession. The workforce is — Anirban aging, and a declining U.S. labor force participation rate means adding jobs to the sector will continue to be a challenge. These trends will continue in the years ahead.

The industry must work collectively to recruit the next generation of construction workers. This will require a team effort between local building

associations, worker training groups like the Home Builders Institute, national trade groups like NAHB and businesses large and small. It will involve partnering with high schools, trade schools and community colleges to communicate the demand for workers and the potential for career growth.

ABC: While many express significant skepticism regarding the interpretation of unemployment rate measures, the fact of the matter is that most construction firms report intense difficulty securing electricians, heating/cooling professionals, welders and carpenters among others. The construction worker unemployment rate stood at 5.2% as of September 2016. That’s a far cry from the 13.3% unemployment rate that prevailed precisely five years earlier.

Data from the Bureau of Labor Statistics’ (BLS) Job Openings and Labor Turnover Survey indicate that construction job openings stand at a 10-year high.

The Christian Science Monitor indicated in a recent article that demand for

construction workers rose above $28/ hour. This is a natural reflection of an increasingly scarce supply of human capital.

The lack of skilled construction workers will remain the No. 1 industry challenge in 2017. A stimulus package would further exacerbate the issues and help drive construction worker compensation even higher.

Raw Material Costs

What impact did U.S. and global construction demand have on the cost of raw materials (e.g., asphalt, cement, steel and lumber) in 2016? Do you see prices going up or staying about the same for 2017?

AGC: Sluggish global growth and a strong dollar have held down materials costs for several years. But those conditions are slowly reversing. Materials costs will probably rise modestly.

NAHB: OSB prices increased over the course of 2016, and this is an area worth watching in 2017. Demand for construction should continue, placing additional upward pressure on building material prices. Concrete and gypsum prices have also posted gains over the last few years.

Builders should be aware of possible price increases in 2017, Basu, Associated Builders and Contractors (ABC) particularly if infrastructure projects are construction workers is so strong in debated or approved in Congress after Portland, ME, that the Southern Maine the election.

Community College has had to suspend ABC: Construction input pricits construction technology program es remained unchanged in October because too many students were leaving 2016 and were just 0.5% above where the program to accept employment offers. they were a year ago. Despite the modO ver the cours e of the past est increase in the aggregate input price year, average hourly earnings for level, October figures represented the

“ PROMISED INFRASTRUCTURE-LED STIMULUS AND TAX C UTS COULD CREATE ADDITIONAL P RICE P RESSURES AS W ORKER COMPENSATION R ISES FURTHER AND CONSUMER S PENDING HELPS B ID U P T HE P RICE OF G OODS AND SERVICES.”

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY largest year-over-year help put a lid on conprice increase since struction input price November 2014. inflation, suggesting that G e n e r a l l y, c o n contractors should not struction input prices, be deeply concerned by particularly natural gas prospects for rapid input and crude petroleum, price increases — at least have headed lower since not yet. the summer of 2014.

Deni Koehhemsi, However, that pattern of IHS: Demand in the falling prices no longer U.S., especially from holds. Crude petroleum housing construction, prices were up 10.5% on helped lift up lumber a year-over-year basis in prices in 2016. Absence October, while natural of a U.S.-Canada softgas prices were up 12.2%. wood lumber agreement These data are part as well as rising conof a larger inflation struction activity will story, with inflationary keep prices elevated, pressures largely temespecially during the pered by the decline first half of 2017. i n f u e l pr i c e s du rCement, ready-mix ing the past two years. and construction aggreCircumstances are shiftgates als o recorded ing. Healthcare costs higher inflation levels are spiking, wage presin 2016, not only drivsures are building and en by demand but also fuel prices are no longer by companies’ push to falling rapidly. Inflation recapture some of the has become more apparmargins lost during the ent in other categories, recession. Prices for including housing. these commodities are p Builders should expect higher labor costs and materials prices in 2017, Promised infraforecast to rise in 2017, particularly if increased infrastructure funding moves forward in Congress. structure-led stimulus but not to the levels and tax cuts could crerecorded in 2016. ate additional price pressures as worker copper, plumbing fixtures and nonSteel prices are at a turning point compensation rises further and conferrous wire and cable — begin to rise and are starting to rise once again. They sumer spending helps bid up the price more rapidly during the coming months will continue to rise over the first quarof goods and services more rapidly. At while fuel price increases remain stable. ter of next year. the same time, fewer restrictions on oil Broader inflation in the U.S. has Finally, asphalt prices fell in 2016, and natural gas production may limit become more likely, an expectation that in line with a large drop in energy pricfuel price increases. The result is a has been reflected in the form of higher es. With rising oil prices, there will be complicated picture in which the price interest rates since the election. However, an upward pressure on asphalt prices of certain inputs — such as iron, steel, a still sputtering global economy will in 2017.

PROMISED INFRASTRUCTURE-LED S TIMULUS AND TAX CUTS COULD CREATE ADDITIONAL P RICE P RESSURES AS WOR KER COMPENSATION R ISES F URTHER AND CONSUMER S PENDING HELPS BID U P THE P RICE OF G OODS AND S ERVICES M ORE R APIDLY. 56

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY

Overall Economic Outlook What level of economic growth do you see for 2017? What are some of the key drivers that will impact this growth either positively or negatively?

AGC: After more than seven years of economic growth, some folks worry that the U.S. economy is “overdue” for contraction. But economic expansions don’t die of old age. The economy should keep growing in 2017, albeit unevenly by segment, region and quarter.

Similarly, construction will increase overall, with notable contributions from office, power and singlefamily construction. But public construction will be sluggish, and multifamily, manufacturing and hotel construction are at risk of turning negative.

NAHB: NAHB continues to expect modest growth for the economy in the years ahead. The longterm average for GDP growth over the last five decades was 3.4%. For 2017, we expect a growth rate of 2.3%.

Growth in single-family construction activity should lift housing’s share of GDP in the year ahead. A low unemployment rate and a declining labor force participation rate emphasize the importance of improving labor productivity so that the gains in the employment market can also lead to growth in business income and GDP. Improving household formation should help sustain demand for multifamily rental housing and continue to grow for-sale demand of single-family housing.

Nonetheless, this recovery/growth cycle is aging and business planners should be aware that this is currently

the fourth longest expansion period since the Civil War. Imbalances increase over time, so while most economists are currently not forecasting a recession in the years ahead, the probability of one is rising.

That said, areas of the economy that are currently operating below historic norms, such as single-family construction, offer upside growth potential, particularly given favorable demographics.

of the United States will mean some major policy changes, including sizeable tax cuts, rollbacks of regulations and a much tougher stance on free trade and immigration.

The good news is that in the runup to the presidential election, the data showed the U.S. economy in reasonably good shape and on track to grow 2.0% to 2.5% in 2017. Assuming President Trump follows through with his campaign promise of more fiscal stimulus, near-term growth could be boosted, but likely not until late 2017 or early 2018.

The U. S . e c ono my will have added about 2.25 million jobs b etwe en t he four t h quarter of 2015 and fourth quarter of 2016, down from roughly 2.8 million in each of the — Robert Dietz, National Association prior two years and 2.4 of Home Builders (NAHB) million in 2014. The slowdown was triggered ABC: Given expectations for tax by the first decent gains in productivity cuts and promises of additional federal in two years, along with the first posispending in infrastructure and defense tive contribution from inventories since categories, the economic outlook for early 2015. Further productivity gains 2017 has firmed. should cool employment growth even The economy still remains vulnermore, with gains of only about 1.4 milable to adjustments in asset prices as lion in 2017. interest rates head higher. For several Inventory investment and net years, the U.S. economy has benefited exports, which boosted overall growth from large positive wealth effects genin the fall of 2016, are likely to restrain erated by equity and real estate markets. growth in early 2017. The U.S. expanWhat can rise can fall, and declining sion will become more balanced, with asset prices represent one of the leadconsumer spending, residential coning threats to the U.S. outlook in 2017. struction, business fixed investment The U.S. economy should manage and government spending all contribto expand around 2% in 2017. To the uting to economic growth. ■ extent that stimulus spending occurs and begins sooner than expected, that outlook could improve. *Anirban Basu is now chairman & US Economics commentary, CEO of Sage Policy Group Inc., an economic and policy consulting firm IHS, November 2016: The election in Baltimore, MD. of Donald Trump as the 45th president

“ AREAS OF THE ECONOMY T HAT ARE CURRENTLY OP ERATING BELOW HISTORIC NORMS, SUCH AS S INGLEFAMILY CONSTRUCTION, O FFER UPSIDE G ROWTH P OTENTIAL.”

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE TRANSPORTATION INDUSTRY B y L i s a Cl e a v e r, c o n t r i b u t i n g e d i t o r

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TR ANSPORTATION

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Industry experts predict what 2017 may hold for the road building sector

H

ere we are in the first half of 2017. The FAST Act has been in place for just over a year now, plus we have a new Presidential administration in place. What are the potential effects on the road building industry? What will 2017 have in store, and what challenges will the industry have to overcome?

We’ve asked a group of industry experts to give us a glimpse into what the road building sector might expect in the months ahead.

Q: What impact has the FAST Act had on the road building industry so far, and what lies ahead for 2017?

Dr. Alison Premo Black, senior vice president & chief economist, Deputy Director Contractors Division, American Road & Transportation Builders (ARTBA): The five-year funding levels of the FAST Act and some of the reforms are a positive market development for the road building industry. The funding levels in the bill for the federal fiscal year 2016, which ran from October 1, 2015 to September 30, 2016, did provide a modest increase in federal investment.

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much of their federal dollars during the last few months of the fiscal year.

As those projects are put out to bid and work gets underway, this investment will help support the market in 2017.

Asphalt Emulsion M a n u f a c t u re r s A s s o c i a t i o n (AEMA) Board of Directors: It takes some amount of time for funds to be disbursed and the effect of that spending to work its way through the system, so in some respects, the jury is still out. According to Tracy Taylor, partner with Williams and Jensen, the FAST Act has three actions associated that will affect preservation, maintenance and construction activities.

The FAST Act increased federal funding for highway infrastructure by 5.1% in 2016 and will increase it 2.1% to 2.4% in fiscal years 2017-2020. The additional funding coupled with the increased certainty and predictability that a long-term funding bill brings to agencies should result in increased agency investment in their road assets, for example, more highway spending.

Additionally, agencies need certainty and predictability in order to fully implement broader asset management plans in which pavement preservation plays a critical role — a long-term funding bill provides that.

The FAST Act reauthorized the Accelerated Implementation and

Deployment of Pavement Technologies Program. This program provides $12 million annually, divided equally between asphalt and concrete.

The FAST Act made permanent the Every Day Counts program, which instructs the FHWA to develop marketready innovations and best practices.

The FHWA is currently focusing on pavement preservation, having recently added the discipline to the Every Day Counts Initiative structure. The benefits of this program are more subtle but will be long term and widespread.

Contractors will want to be positioned to explore their options and be prepared to act on the potential opportunities.

Assisting the agencies as they develop their management plan in accordance with the requirements of the MAP-21 legislation will also be an opportunity to partner and further develop these important relationships.

Mike Acott, president, National Asphalt Pavement Association (NAPA): In most markets around the country, the FAST Act has stimulated a lot of resurfacing work as states dig out from the backlog of needed highway and road improvement projects that have built up after years of short-term extensions for the federal transportation programs. The FAST Act provided a needed boost in spending in the core highway program that typically funds ready-to-go projects, many of which have high asphalt intensities.

We had assumed a 6% growth in asphalt paving tonnages in 2016

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MANUFACTURER PROFILE

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STATE OF THE TRANSPORTATION INDUSTRY

compared to 2015 due in part to the FAST Act. That number appears to have been conservative in some cases as we are hearing from producers that tonnage is up noticeably in many markets.

A big focus for FHWA next year will be pavement preservation, which was included among the Every Day Counts EDC-4 initiatives. The agency will be looking to fast track the implementation and use of technologies and practices that can improve pavement performance and extend pavement life, and that includes Thinlay asphalt overlays.

Anirban Basu, chairman & CEO of Sage Policy Group Inc., an economic and policy consulting firm in Baltimore, MD: Despite the passage of the FAST Act and its various advantages over the prior status quo, Census Bureau data indicates highway and street-related construction spending was 8.3% lower in September 2016 than in September 2015. Other public infrastructure-related categories also experienced declines, including public safety, conservation/development and water supply.

This is consistent with the notion that the public sector continues to face unusual financial constraints, including in the form of managing rising Medicaid expenses and shoring up underfunded pensions. The national debt is approaching $20 trillion and Medicare and Social Security are both heading for insolvency within the next two decades.

The American Society of Civil Engineers recently gave the nation’s roads a grade of “D,” a mark that is unlikely to improve meaningfully over the near term. While the FAST Act authorizes more than $300 billion in infrastructure spending, not all of that spending is on roads. Moreover, money is fungible, which means that some jurisdictions are likely using federal funds to help finance infrastructure, and then shifting a certain fraction of local monies that would have been

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“ THE F AST ACT HAS S TIMULATED A LOT OF RESURFACING W ORK A S S TATES DIG OUT FROM THE B ACKLOG OF NEEDED HIGHWAY AND R OAD IMPROVEMENT P ROJECTS THAT HAVE B UILT U P A FTER Y EARS OF S HORTTERM EXTENSIONS F OR THE F EDERAL TR ANSPORTATION PROGRAMS.” — Mike Acott, NAPA spent on infrastructure to other categories, whether public safety, education or other services. The result is that total infrastructure spending is not expanding as anticipated.

Q: What were the funding challenges states faced in 2016? How have some states addressed these challenges?

Sage Policy Group: With $305 billion in federal funding authorized over five years, the financial uncertainty that surrounded a growing number of projects in various stages of development was mitigated, empowering individual state transportation leaders to move forward with projects that

had been temporarily mothballed.

Theoretically, this should have produced the unleashing of a significant volume of state and local government infrastructure spending.

For example, in June 2016, the Illinois DOT announced a six-year infrastructure repair plan to renovate 501 bridges and more than 2,500 miles of roadway in the state. Illinois has also been among the nation’s slowest growing states. Project leaders intend to use $134 million annually in FAST Act funds to support these projects. That said, these monies represent a relatively small fraction of the total project cost estimated at $11.2 billion.

This perhaps represents the fundamental issue with the FAST Act. While

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its passage demonstrated a rare ability for Republicans and Democrats to work together to pass a key piece of legislation, it didn’t really raise the bar on federal investment in infrastructure. In fact, the rate of spending increases is roughly equivalent to inflation, implying that the FAST Act falls far short of meaningfully helping America address its large and growing infrastructure gaps.

ARTBA: Each state market is unique, and many that have passed transportation funding increases in recent years are benefiting from the additional resources. Some examples of these measures include raising the state gas tax, bond authorizations, dedicating surplus funds to transportation investment or raising other highway user fee revenues.

The ARTBA Transportation Investment Advocacy Center (TIAC) tracked over 90 bills to increase state transportation funding in 38 states during the 2016 legislative session.

New Jersey lawmakers recently passed a gas tax increase, following 16 other states that have done so since 2013.

I believe there is a recognition among state and local governments that while the stability of the FAST Act is beneficial, the investment levels are not enough to drive significant real growth in the market. This means that it is up to them to provide additional resources to meet their infrastructure demands.

NAPA: States know they have to increase their investments in highways, roads and bridges. This is especially true now that states know what their federal contribution to their respective highway construction programs will be through 2020. New Jersey is just the latest example of a state that has raised its gas tax to fund its highway construction program. More states will be dealing with this issue in the 2017 legislative session.

Q: What impact might the Trump administration and its proposed $1 trillion infrastructure investment plan have on the industry?

Jeannine Cataldi, IHS: The implications of the election results for our U.S. construction spending forecast are positive in that infrastructure improvements have broad bipartisan support. The magnitude of the impact is less clear at this time.

We expect our forecasts will evolve over the next several quarters. Once the

and re-election chances. Therefore, there will be many congressional leaders, including Paul Ryan, who will strive for greater bipartisanship than has been in evidence over the past decade.

However, increases in infrastructure spending are likely to be accompanied by higher taxes on the wealthy, whether in the form of income or capital gains tax increases.

NAPA: Ultimately, America needs to invest more in its infrastructure, and that means we have to find a way to pay for that investment, and the power of the purse still lies with Congress. Congress must work in a bipartisan way to raise the revenue necessary to increase investments in America’s roads, highways and bridges.

Presidential leadership will help underscore the need, but the real work must be done on Capitol Hill where the leadership of both political parties must come together and do the right thing for the country and the roads and bridges that make up its economic backbone. NAPA will focus all of its legislative efforts on helping Congress to bridge the revenue gap and pushing for the enactment of an infrastructure bill during the first 100 days of the next Congress.

AEMA: There have been a few successful attempts to increase revenue through passage of state gasoline tax legislation. While this effort is always met with concern from lawmakers, there has not been the predicted revolt from the electorate. Assuming these successes continue, and assuming the case for a proposed increase is well made, we may see this topic trend upward in 2017.

Along with a new administration comes the prospect of changes to the many and varied regulations that affect the contractors’ ability to produce

“ THERE HAS B EEN A DEVELOPING CONSENSUS IN BOTH [ POLITICAL] P ARTIES AROUND THE NEED FOR MORE INFRASTRUCTURE S PENDING TO BOLS TER WOR KER PRODUCTIVITY, E NHANCE ECONOMIC EFFICIENCY A ND RAIS E INCOM ES.”

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— Anirban Basu, Sage Policy Group Trump [administration’s] policy proposals are detailed more clearly, and the budgets are formulated, the economic drivers will be in place to more clearly view the impact on construction spending forecasts.

Sage Policy Group: The new president’s plan to spend on infrastructure may meet with a surprising level of approval. There has been a developing consensus in both parties around the need for more infrastructure spending to bolster worker productivity, enhance economic efficiency and raise incomes.

Congress is convinced that stalemate and a lack of accomplishment do not inure to the benefit of popularity

www.ForConstructionPros.com/RENTAL

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STATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY • S TATE O F T HE I NDUSTRY

STATE OF THE TRANSPORTATION INDUSTRY

efficiently. Monitoring the direction and degree of any changes in this regard will be high on the list of contractors, as well as other members of the community. One specific example... is in the CDL regulations that affect truck drivers responsible for moving the materials used in highway work. In many parts of the country, there is a significant shortage of drivers that are eligible to obtain a license under existing regulations.

This shortage creates a bottleneck in the operational process, ultimately resulting in less efficiency and increased costs.

Q: Overall, what is the outlook for road building activity in 2017?

Ken Simonson, chief economist, Associated General Contractors of America (AGC): The FAST Act provided a little more federal money to states, as well as flexibility in using it. But continuing improvements in fuel economy and a slump in heavy truck sales and mileage mean there has been little or no growth in federal and state highway tax receipts.

Highway construction spending in the first nine months of 2016 was actually slightly below the total for January through September 2015, and I don’t expect much of a pickup in 2017. The best prospects for increases are in states that have raised their own gas taxes or

other funding sources, or have approved toll projects, including public/private partnerships.

ARTBA: Although the December 2015 passage of the FAST Act law provided stability for public highway investment, the increases in the program funding levels are modest, just above anticipated project costs and inflation.

Many state DOTs did not obligate their federal funds in time for many projects to get started during the 2016 construction season. Nearly half of the FAST Act funds for FY 2016 (46%) were obligated in the last quarter of the federal fiscal year, between July and September 2016. Twenty percent of the federal funds available to the states weren’t obligated until September 2016.

Increased investment from state and local governments will be the main driver of any real growth in 2017

and the next few years. As was the case in 2016, the market will vary significantly from state to state. With some programs growing and others facing challenges, overall activity at the national level will be fairly flat.

The ARTBA forecast [also] looks at private highway, bridge, parking lot and driveway work that is part of residential and commercial construction.

Based on historical data, ARTBA estimates the private market will increase in 2017, and will continue to grow over the next five years as overall construction activity increases in those sectors.

NAPA: I would watch for further

“ INCREASED INVESTMENT FROM S TATE & L OCAL GOVERNMENTS WILL B E THE M AIN DRIVER OF ANY REAL GROWTH IN 2017 AND THE NEXT F EW Y EARS.” — Dr. Alison Premo Black, ARTBA 66

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STATE O F T HE I NDUSTRY • S TATE O F T HE INDUSTRY • S TATE O F T HE I NDUSTRY

implementation of the FAST Act, and especially the two new programs that fund highway projects that move freight.

These are bigger, more complicated projects that will start to see construction in 2017.

There was tremendous demand from states and cities for the new $800-million FASTLANE grants program to eliminate bottlenecks and improve freight movement. In addition, the states have to spend a portion of their allocated dollars on highway projects that move freight, so I expect we will see more freight-type projects in 2017.

AEMA: With some significant exceptions, like 1,000-year flooding events and a major hurricane, the weather in 2016 was exceptionally friendly. This allowed many projects to be completed or to at least gain ground related to scheduling.

Clearing the backlog may have set a high bar, but 2017 should be a productive year with opportunities slightly above those realized in 2016.

With renewed enthusiasm for dealing with required infrastructure improvements comes the prospect of a stable marketplace with increased funding. Although we all recognize the need for significant spending to address the state of our nation’s declining bridges, it is a fact that the monies required to do so often come at the expense of spending on roadways. Achieving a balance in this regard is critical.

Q: What is the greatest challenge facing the road building sector in the years ahead?

ARTBA: Despite the passage of the FAST Act, Congress did not finish the job. They used a one-time transfer of funds to pay for the bill, meaning that the gap between the revenues coming into the Highway Trust Fund and federal surface transportation spending levels will be even greater in FY 2020, when the FAST Act expires.

Absent Congressional action to solve this issue, the industry will once again face the prospect of continuing resolutions and short-term extension for the federal program. This is important because despite all of the recent increases in state and local funding, federal investment still accounts for about half of all state department of transportation spending on highway and bridge construction, right-of-way and planning and design work.

AEMA: Even with the additional funding afforded by passage of the FAST Act, the Highway Trust Fund is facing a very serious shortfall. The sooner this issue is addressed, the better for the prospect of economic prosperity. As we continue to “kick the can down the road,” the cost of raising the relative health of our network to a given level costs more and more... How the funding shortfall is dealt with will be a significant impact into 2017 and beyond. ■ Search: 10074524 www.ForConstructionPros.com/RENTAL

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MANUFACTURER PROFILE

SCANIA’S INDUSTRIAL ENGINES ARE

US TIER 4 F INAL AND EU S TAGE IV COM PLIANT Emissions Technology Scania uses the same modular engine platform for all emissions requirements throughout its complete engine range. Therefore, there is no need for global OEM’s to redesign their equipment for markets with dif different emission legislation.

Scania’s solution to meet Tier 4 Final emission requirements utilizes a SCR system in conjunction with a low mixture and cooled exhaust gas recirculation (EGR). This low percentage EGR keeps the cooling package requirements similar to non-EGR engines. Unlike most engine manufacturers, Scania is able to meet the strict emission requirements of Tier 4 Final without adding a Diesel Particulate Filter. Scania also redesigned the combustion chamber to improve engine efficiency and reduce the amount of harmful emissions produced by the engine. The fuel efficiency of the Scania Tier 4 engines was also improved compared to previous Tier engines. Scania uses the same after-treatment strategy for both their industrial, variable-speed engines and their new power generation, singlespeed engines.

Scania Service Network Since 2011, Scania has continued the expansion of the service network in North America and is now comprised of 340 marine and industrial service

points in the USA and Canada.

Scania’s service network includes over 700 technicians trained on the latest emissions standards and technology. Scania has processes in place to safeguard the quality of service received.

Scania Assistance (1-800-2SCANIA) provides customers with a 24 hour reporting line for any service issues they may face. All Scania Assistance cases are monitored until the engine is put back in service in order to ensure the customer gets maximum uptime and minimum downtime from their Scania engine. Scania uses metrics from Scania Assistance to measure everything from how quickly a customer is responded to all the way up to the time it takes to get the equipment back in service.

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EARTHMOVING EQUIPMENT

By Jenny Lescohier & Larry Stewart

BOBCAT MT85 BRINGS

BIG-MACHINE

BENEFITS

W

More power, a stand-on platform and an ISO-pattern joystick boost productivity and ease of use on this mini track loader

ho doesn’t like a mini track loader? They offer unsurpassed versatility when paired with a wide array of attachments, they’re super productive, easy on turf and are built to be simple to operate.

And they’re easy for a wide range of operators to use.

They give one the sense they could step right up to the controls and get stuff done.

We r e c e n t l y put this idea to the test when we took a deep dive into Bobcat’s new MT85 mini track loader.

We spent the day with this machine and put it through its paces to find out how some its new features affected performance and feel, and also how it compared to its predecessor, the now discontinued MT52.

Everybody’s got one Evidence of the growing popularity of mini track loaders can be seen in the

way today’s manufacturers are expanding their offerings of these machines that are designed to make quick, easy work of tasks that used to involve hours of back-breaking labor.

B obcat has offered two mini track loader models for a while, but recently upscaled its line dramatically by replacing its MT52, at 520-lbs. rated op erating capacity, with the 850-lb. MT85 a 6 3 % ju mp i n capability - with the goal of offering big-machine productivity in a compact package that can squeeze into tight spaces and is gentle on the landscape.

“Bobcat listened to their customers,” explains Casey Funseth, dealer principle at Bobcat of Janesville, who was with us when we tested the MT85.

“The MT85 brings to Bobcat an increased rated operating capacity for the MT loaders. Its tipping load is actually 2,400 lbs., even though it’s rated at 850 lbs., so that’s significant power.”

EDITOR’S NOTE: This is the second installment to our Construction Equipment Closeup series, a new feature on ForConstructionPros.com focused on what happens when editors go out in the field operate equipment and report on the experience. Look for it also in the April issue of Rental magazine.

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EARTHMOVING EQUIPMENT

He adds that since the machine only weighs 3,100 lbs., the 2,400-lb. tipping load gives it a tremendous power-toweight ratio.

In addition to more brawn, the MT85 boosts productivity with a 14-percent increase in lift height.

While the MT52 had a 71.2-in. hinge pin height, the MT85’s lift height is one of the highest in the industry at 81.6 in., allowing it to easily clear the side of a truck or bin for dumping.

“It also has great reach at its highest lift height,” Funseth says. “At 18.6 in., that’s nearly 20 in. of reach.”

SEE THE B OBCAT M T S ERIES IN ACTION: Bobcat Mini Track Loaders Leap 63% in Rated Capacity forconstructionpros.com/video/12304199 Closeup Operating Impressions: Bobcat MT85 vs MT52 Mini forconstructionpros.com/video/12307098 Novice Orientation to Operating Bobcat’s MT85 Mini Track forconstructionpros.com/video/12307100

Comfort and stability According to Funseth, Bobcat customers had been asking for better comfort and stability with their mini track loaders. And while these factors

aren’t usually top priorities for rental business owners when purchasing equipment, they’re pretty close to being game changers when it comes to operating the MT85.

HEAD TO HEAD

MT52 VS. MT85

→

On the day we tested the MT85, we asked Bobcat to bring along its MT52 for perspective. We did some clearing on an undeveloped lot with both the ride-on, 850-lb. rated-operating-capacity machine and the 520-lb. unit it replaced, with the sulky attached and without.

Not surprisingly, the differences were marked.

Larry Stewart, editor of ForConstructionPros.com, appreciated the new ISO ground-drive control on the MT85, and the grab handles that surround it and the loader joystick.

“With a machine like this, when you’re standing on it and it’s moving around, I want to be holding onto something with both hands,” he says. “I found that the grab handles around the joysticks gave me that anchored spot and let me operate the machine at the same time.”

The old-style controller on the MT52’s ground drive seemed to encourage a change in hand position when shuttling from forward to reverse that, for an inexperienced operator, didn’t feel as secure. The controller worked just fine, but the lea ning curve was just a little steeper.

The ISO pattern joystick’s S pattern – which reverses to the right when the joystick is pulled back and to the left, and vice versa – took some getting used to, but making that adjustment shouldn’t dampen the new joystick’s advantages.

For Jenny Lescohier, editor of Rental, the stand-on platform of the MT85 offered obvious benefits, but didn t completely outshine the walk-behind unit.

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“Being on the stand-on platform gives you unbelievable visibility, which is great, especially when you’re someone of my height,” she says of her 5-ft. 2-in. stature. “It’s just a good advantage to be able to see what you’re doing. And it really is responsive; you can feel every move that you make.”

She adds, “But really, as someone who has zero experience with this type of machine, I have to say I felt most confident when I was walking behind the machine, mayb because you can just walk away from it, no questions asked. But it’s completely missing that visibility.”

And Lescohier acknowledges that even a novice operator, after a day or so in the field on the MT85, would likely b comfortable enough riding the platform to fully appreciate the advantages of the newer machine’s design.

Stewart adds that while walk-behind units typically afford operators an easier brand of confidence, that can chang with the terrain.

“When we were down in the weeds, you couldn’t see the grade, you couldn’t see what was down there… there were holes,” he explains. “I could totally see being a lot more productive up here on the [MT85] because I definitely wouldn’t want to be down on the ground, walking around in that stuff.”

One thing is for sure, Stewart said, and that is he prefers the integrated stand-on platform to the sulky. “I could anticipate where I was going to go when the machine nosed into a hole. With the sulky, sometimes it went one way, sometimes it went another, depending on the underfoot… I felt better on a ride-on machine in that circumstance.”

www.ForConstructionPros.com/RENTAL

3/20/17 11:53 AM

THE NEW TB216H HYBRID EXCAVATOR

TB216H: TAKEUCHI’S FIRST HYBRID COMPACT EXCAVATOR The TB216H is a first in the innovative Takeuchi

undercarriage that retracts from 51.2 inches to 38.6

lineup: a hybrid dual-powered excavator that

inches. Another user-friendly feature of the TB216H

enables the operator to work indoors or outdoors

is that the ignition, throttle, joysticks and travel

for maximum versatility. The TB216H features both

functions are the same, regardless of the mode

an electric motor and diesel engine with its own

selected to power the machine.

pump group to power the machine’s hydraulics.

The TB216H has an operating weight of 4,277 Machine performance is consistent regardless of

pounds, maximum bucket breakout force of 4,250

the power source. In diesel mode, the machine is

pounds and maximum arm crowd force of nearly

powered by a Yanmar Tier 4 Final engine with an

1,843 pounds. It also features a maximum dig depth

output of 14.9 horsepower (hp), which is perfect

of 7 feet 10 inches and maximum reach of 13 feet

for day-to-day operation, loading and transport. In

5 inches. For details on the TB216H and more

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innovations that have made Takeuchi a world

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To access a wide range of jobsites and indoor applications, the TB216H features a retractable

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EARTHMOVING EQUIPMENT

“ BEING ON THE S TAND-ON PLATFORM G IVES Y OU UNBELIEVAB LE VISIB ILITY… AND IT R EALLY I S R ESPONSIVE; YOU CAN F EEL EVERY MOVE THAT Y OU M AKE.” JENNY LESCOHIER, EDITOR OF RENTAL One of the first things you notice about the MT85 is the new integrated stand-on platform. The MT52 offered a detachable ride-on platform in the form of a sulky, very similar to what’s used on some big self-propelled mowers. While the sulky got the operator up off the ground for better visibility, it offered little in the way of perceived stability.

“With the integrated platform, you get a higher center of gravity and a higher vantage point to the bucket. You feel one with the machine,” Funseth

The MT85 features an ISO-pattern joystick for drive functions, making it familiar for operators that are used to using bigger machinery.

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u Bobcat replaced its 520-lb. MT52 mini track loader with the 850-lb.

MT85 - a 63% jump in capability with the goal of offering big-machine productivity in a compact package that’s gentle on the landscape.

explains. “The previous model, with the sulky, had a tendency to counter balance or swivel with loading, unloading or even just going over hills. With this new platform, it really feels like the machine is an extension of you.”

Big-machine controls Another one of the most notable changes to the MT85 is the new ISO-pattern joystick control for drive functions. Using it is simple; operators use their left hand for drive functions and their right for arm-lift and buckettilt functions.

The benefit here is the machine is immediately familiar to operators who are accustomed to bigger machines.

“Bobcat didn’t change the lift functions, those remain the same,” Funseth says, “but [on the drive functions] the ISO joystick offers greater ergonomics for

the operator as well as greater similarity with other machines in the marketplace.”

The previous controls consisted of a horizontal handle that required constant down pressure and was steered by rotating left or right while in the gripping position.

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“The joystick allows for finer measurements, and less gripping means less fatigue for operators using the machine for longer periods of time,” says Funseth.

Competitive landscape The MT85 is not the biggest mini track loader on the market, as there are competitive models that extend above 1,000 lbs. rated operating capacity, but the new model brings a larger, more stable platform, a wider track, a higher vantage point and significantly increased operating capacity to the Bobcat line.

“It brings improved performance in horsepower, hydraulics, lift height and overall power to be more competitive,” Funseth says.

“The MT85 is ideal for landscapers, municipalities, grounds maintenance and any application that can benefit from less than 5 psi of pressure on the ground.” ■

SAFETY AND POWER IN KNOWING RATED OPERATING CAPACITY The rated operating capacity of mini track loaders serves as much of a safety role as it measures capability. Understanding how it is derived will not only make operators safer, but more confident with the machine s capabilities as well.

As with skid steers and compact track loaders, rated operating capacity (ROC) starts by measuring tipping load. This is done in a very controlled environment – level, paved pad; machine static; no wind. Weight is added to the raised bucket until the machine tips forward. That weight is the tipping load.

Rated operating capacity is essential because the loader arms of most of these mighty mites are capable of lifting well more than their tipping load. And since the whole point of a loader is to carry the load around, it would be patently unsafe to rate these machines based on their tipping load. It would be a load that the machine could never effectively work with.

So the International Standards Organization (ISO) adopted a standard (14397-1:2007, if you care to look it up) for determining rated operating capacity to help loader users avoid precarious situations.

ROC F OR S KID STEERS IS 50% OF TIPPING LOAD. … ISO S ET THE ROC F OR M INI AND COMPACT TRACK LOADERS AT 35% OF TIPPING LOAD.

It’s straightforward: the ROC for skid steers is 50% of tipping load. Because track loaders can pick up more weight, and they can work on soft, uneven terrain, ISO set the ROC for mini and compact track loaders at 35% of tipping load.

So while mini track loaders can pick up, and even carry, more than their ROC, the safe load they can work with falls somewhere far short of their tipping load. Exactly where is determined on each bucket-full or pallet load the machine picks. It’s a good idea to impress on users the ROC number.

The cowboys will find out how much mo e the machine can pick up. And the rest will operate a lot safer.

Some insights about tipping and ROC:

ForConstructionPros.com Editor Larry Stewart appreciated the intuitive controls on the MT85, but also found its predecessor, the MT52, to be a formidable tool in its own right.

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•

Adding counterweight increases tipping load and ROC, within limits.

•

Pallet forks move the load farther away from the machine’s center of gravity, which reduces tipping load.

•

Carrying a capacity-testing load down a hill? Better back it down, with the loader arms aimed uphill.

•

If the weight of replacement tracks or tires or wheels differs from original equipment, ROC will change.

•

Powered attachments can get heavy. Before you buy one, make sure it’s well within your loader’s ROC.

www.ForConstructionPros.com/RENTAL

3/20/17 11:53 AM

MANUFACTURER PROFILE

ALLMAND

WILL NOT F AIL Y OU WHEN YOU NEED THEM MOST AllmandŽ was acquired by Briggs & Stratton in August of 2014 and has since then made the effort to diversify its product offeroffer ings as well as its markets served. When it comes to offering rental equipment, you want products that will not fail when you need them most. You’re looking for trust and reliability. Allmand brings that to you, with almost 80 years of respected experience. Our intense focus on innovation has helped us develop state-of-theart towable jobsite equipment. Allmand, a subsidiary of Briggs & Stratton Corporation, offers portable light towers, mobile indusindus trial heaters, flashing arrow boards, portable light stands, and now towable generators and compressors to the global rental market.

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MANAGING FOR SUCCESS

By S ue D yer

Part 2 in a series by Sue Dyer of OrgMetrics...

ROOT CAUSES

to Poor Communication at Your Business

Here’s what effective teams need to guard against in order to find success

F

or the past 10 years I’ve asked project teams “from your experience, what it is that makes one project succeed and another fail?” Over 95 percent of team members said that good communication was the reason for their success and poor communication was the reason for their failures.

Clearly communication appears to be the key to team success.

After asking these questions of 134 different project teams, and then working with each team to improve their results, I began to realize that often what the team believes to be a communication issue is actually a symptom of the real problem – or root cause. When a team identifies their problem as one of poor communication, and then works to try and resolve the “poor communication” issue, I found that significant improvement could not be made. Only by understanding the root cause can you effectively work to solve the underlying issue.

Over time patterns began to emerge.

I’ve identified seven different root causes for team failure for which the

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project teams misidentified poor communication as their issue.

Let’s look at each of these root causes in more detail to see if you identify any that might be affecting your team and to learn what you might do to overcome them.

ROOT CAUSE #1 — Fear

you s ay you are going to do — and by doing your part to help the team succeed. Teams are interdependent. No one succeeds unless everyone pulls together. Trust erodes when someone feels they are being treated “unfairly.” So always talk about what is fair, put fairness on the table whenever you see fear erupting in your team. Then, work to find a way to resolve issues that is fair to everyone involved.

Fear makes team members feel the need to protect their own interests. When we feel TIP: the need to protect we certainly are not TR UST going to be open, AND F EAR therefore commuROOT CAUSE #2 — nication is going CANNOT Misaligned Expectations to be stifled. Worse COEXIST When team members each yet, our communihave a different expectation on how cation is likely to be an things are supposed to work you have argument about why we are misaligned expectations. Most often right and others are wrong. it is over roles, responsibilities and To overcome fear you must work to authority. With misaligned expectadevelop trust among the team memtions, no matter how hard each side bers. Trust develops when you do what

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3/21/17 8:11 AM

MANUFACTURER PROFILE

WE U NDERSTAND W HAT IS IMPORTANT IM P OR TANT TO COMPANIES COM P ANIES WHO R ENT TRUCKS: easy to use products that are rent-ready, that are delivered on time, and have a favorable residual value.

Curry Supply is a leading manufacturer and dealer of service trucks to the equipment rental industry. Whether you rent service trucks or need them to service your fleet, Curry Supply has water trucks, dump trucks, crash attenuator trucks, mechanics trucks, flatbed trucks, fuel/lube trucks, enclosed lube trucks, and lube skids in stock and ready to ship. As a rental industry provider, Curry Supply understands the things that are important to companies who rent trucks: easy to use products that are rent-ready, that are delivered

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MANAGING FOR SUCCESS

tries, they just can’t seem work to become a trusted leadto get together. The team er. A leader by definition is TIP: might be “communicatsomeone who has following” but understanding ers. And following is 100 DRAW is not happening. percent voluntary. A trustA PICTURE If a picture is worth ed leader is someone who a thousand words, then people follow because they why not draw a picture of trust them to lead the team to how your team is organized. success. When people trust the Who is doing what, how do peoleader then they feel they have a choice ple fit into the process? What is to be a part of the team. And the leader their role? Who has the authority to can offer clear direction, problem solvmake which decisions? What is the ing and decision making when needed. decision making process? By drawing a picture and allowing team memROOT CAUSE #4 — bers to ask questions, you will begin Loss of Momentum to align expectations by agreeing on When everyone on the team is not how things are supposed to (or need in the boat, facing the same direction, to) work. Doing this exercise should and rowing toward success, the project make it very clear where you have loses momentum. The more frustration misaligned expectations, or misunderthere is, the more loss of momentum standing, on roles, responsibilities and you will have. Frustration is caused authority. Then, you can work to come when the team goes forward but keeps to agreement. getting pulled back. Soon the project is behind schedule ROOT CAUSE #3 — and communication Confusion switches to finger TIP: Where there is confusion, chaos pointing, causing RES OLVE will break out. Again, this can be over even more loss roles and responsibilities, or over proof momentum.

IS SUES cesses. When people aren’t sure what Teams start QUICK LY they are supposed to do, not only does out and gain the team lose productivity, there is momentum over chaos as people move around trying to time. When probfigure out how things are supposed lems and issues arise it to work. This is true at all levcauses a loss of momenTIP: els. If a decision is made tum. However, if the problem or issue but no one understands is resolved quickly the momentum WORK T O how it is supposed to be is only slightly diminished and the BECOME A implemented, then you team continues to move forward and will end up with different grow. It is therefore imperative that TR USTED people implementing difyou have a clear process for resolving LEADER ferent solutions - leading to issues quickly. This process needs to be chaos and what appears to be known by all and used. One such propoor communication. cess is to agree to disagree on an issue For a team to succeed, someone and then empower a new set of people must be the leader. I see many teams to look at the issue so they can offer without a clear leader and the teams their ideas for resolution. Give these seem to lack direction and clarity. new people the power to decide. Then People vie for power and position, and move on. Indecision is your enemy. that never leads to success. Instead,

A LEADER B Y DEFINITION IS SOMEONE W HO HAS F OLLOWERS. AND FOLLOWING IS 1 00 P ERCENT VOLUNTARY.

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MANUFACTURER PROFILE

GENERAL PIPE CLEANERS

KEEPS DRAIN CLEANING RENTALS PROF ITABLE “When you’re renting drain cleaning equipment nearly every day, you need tough, reliable machines.”

So says Von Hunn, owner of Garden True Value Hardware, Garden City, KS – serving residential and commercial rental customers in southwest Kansas.

And drain cleaning forms a “significant” slice of his business.

“Easy” Choice That’s why Hunn chose General Pipe Cleaners’ range of drain cleaning equipment – with Easy Rooter™ for his flagship machines.

Easy to transport, use and maintain, rugged Easy Rooter brings heavy-duty performance, superior reliability and excellent safety features to a wide range of rental requirements.

Built tough for maximum turns and minimal down time, the Easy Rooter features powder coated steel frame with “roll bars” protects the motor, 10” heavy-duty wheels roll easily to the job, and a folding handle for easy loading into cars. So rental facilities enjoy maximum performance, longer life and greater efficiency – even under demanding rental conditions.

Hunn calls Easy Rooter “easy to demonstrate and safe to use.”

Bottom Line Most importantly, Hunn says, Easy Rooter – like all his G enera l equipment – works.

“I can’t remember ever having a problem with it – and it’s used for all sorts of drain cleaning jobs!”

Hunn calls it “excellent” for unclogging severe stoppages from 3” through 10” lines. The large steel cage carries 100 ft. of 3/4” or 5/8” Flexicore®* cable.

“Flexicore® is another reason why General is so crucial to the success of our drain cleaning rental business,” Hunn says.

Heavy-duty wire tightly coiled around 49-strand aircraft-type wire rope, Flexicore® offers superior strength, kinking resistance, and flexibility. Flexicore® cables carry a one-year warranty against defect or breakage – the industry’s best.

“We prefer General to other brands,” Hunn concludes. “Our customers are satisfied, and so are we!”

General Pipe Cleaners, a division of General Wire Spring Co., is a leading manufacturer of high quality American-made drain cleaning equipment. In business since 1930, the third generation family-owned company has celebrated 85 years. The Toughest Tools Down The Line. *“Easy Rooter” and “Flexicore” are trademarks of General Pipe Cleaners, a division of General Wire Spring Co.

TO LEARN MORE about General’s complete line of drain cleaning machines for the rental industry, visit www.drainbrain.com/ rental, or call the Drain Brains® at 800-245-6200 or 412-771-6300.

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MANAGING FOR SUCCESS

ROOT CAUSE #5 — Dissatisfaction

HAVING A MENTOR CAN SHORTEN THE LEARNING CURVE FOR NEW HIRES

BY DECADES .

Sue Dyer is president of OrgMetrics LLC, a p rofessional partnering facilitation firm. Sue recently launched Partnering FIT™ training using new virtual training technology that allows her t o i nclude 3 0 y ears o f l essons l earned and m ake t hem a vailable t o y our t eams a ny time, a ny p lace. T o r eceive a ccess t o a f ree chapter o f P artnering F IT™ , v isit w ww. getpartneringFIT.com o r t ext t he w ord PARTNERING t o 9 6000. T o l earn m ore about P artnering F IT™ i nquire a t i nfo@ orgmet.com o r c all 9 25-449-8300.

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Research shows that when teams look forward to going to their jobs (the level of job satisfaction is high) the project is highly likely to be on time and on budget. When teams TIP: “dread” going to work, BUILD the project is in deep trouble. When a projIN F UN ect is not fun to be on and a sense of dread appears, communication between project team members will be strained at best.

Teams that have fun perform better. And you can build in the fun. It’s important to take time to laugh and enjoy each other. I have seen teams that play golf, have barbecues, share a joke at the start of each meeting, and learn to fish together. These were top performing teams. So monitor the level of “fun” on your team and work to ensure that your team is having fun together.

level of stress that the team encounters.

Teams come together to accomplish something, so there needs to be celebrations along the way (perhaps at each milestone) of accomplishment.

ROOT CAUSE #7 — Unconscious Incompetence

Inexperienced staff can face a very steep learning curve. Even one inexperienced person in a key role can wreak havoc on your project. They just don’t know what they don’t know, so they focus on what is available to them. They must learn h ow t o r e s o l v e specific project TIP: problems as they BE OPEN TO o c c u r. O f t e n documentation MENTOR ING becomes the focus instead of problem solving.

Both experienced and inexperienced team members must be open to the possibility of sharing knowledge. Having a mentor can shorten the learning ROOT CAUSE #6 — curve for new hires by decades. Too Lack of Commitment often new people are sent to do the When people aren’t really commitgrunt work or sent into a project like ted to the success of your project you lambs to the slaughter. These are not have “slack.” This is like slack in a rope. very effective ways to deal with people You don’t have a strong team who need to learn. For those of you focused on what it will take who are new, you must accept to succeed. Inadequate that others who have been TIP: re s ou rc e s c an a l s o around for some time have MANAGE cause “slack.” The team seen a few more things loses faith that they than you have. You don’t THE LEVEL can achieve the project need to know everything.

OF STRES S goals. Lack of communiYour job is to learn. cation is usually the result.

By k n ow i ng t h e ro ot Some people are just cause of your communication along for the ride and are not problems you can vastly improve your really committed to the success chance for team success. The best way of your project or company. This causes to uncover communication problems enormous stress on the other team and their root cause is by conducting members. Sometimes you can’t do much a monthly measurement on how well to get rid of the lack of commitment, the team is communicating and workbut you can monitor and manage the ing together. ■

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MANUFACTURER PROFILE

As a college student, Greg Barreto worked as a mechanic in a rental yard and thought hydraulics were the answer to the frequent breakdowns that were occurring with their tillers.

Greg knew the parts most often needing repair were belts, chains, and gears.

If he could eliminate these high maintenance mechanical components, the tiller would be more reliable by design and more efficient for the owner and operator. He experimented with hydraulic power and found he could make a rental duty tiller - without belts, chains, or gears. He built his first all-hydraulic tiller in his garage in Oregon in 1982 and sold it to his employer at the rental yard.

Greg introduced the industry to the first all-hydraulic walk-behind tiller at a tradeshow in 1983 and founded Barreto Manufacturing, Inc. the following year.

Customers were so impressed with the performance and reliability of the Barreto tiller, Greg continued to look for ways to meet the needs of the rental

industry. He proceeded to design the first ever all-hydraulic walk-behind trencher in 1995 – a decision that has changed the trenching industry. Since that time, Barreto has continued to be

in design and quality in manufacturing are key to helping customers enjoy the greatest return on investment. Each piece of Barreto equipment is designed to excel in the most difficult conditions,

Each piece of Barreto equipment is designed to excel

in the most difficult conditions, without the downtime often experienced in harsh rental environments. on the forefront of innovation with a product line that now features tillers, trenchers, log splitters, stump grinders and wood chippers.

Barreto manufactures over 80% of their components in-house to ensure quality and keep parts in stock without lead times. Barreto believes innovation

without the downtime often experienced in harsh rental environments.

Backed by the philosophy that in order for a company to be successful, its customers must be successful, Barreto strives to provide the best quality and service possible.

For more information, please visit www.barretomfg.com or call (800) 525-7348. www.ForConstructionPros.com/RENTAL

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SHOW

FOLLOWING IS NEWS GATHERED FROM THE RENTAL SHOW AND CONEXPO-CON/AGG 2017.

REPORTS

For more complete coverage of the shows, please visit ForConstructionPros.com/Rental.

CASE Uses CONEXPO to Showcase the “PROJECT MINOTAUR” Fully Integrated Compact Dozer Loader CASE Construction Equipment introduces the DL450 compact dozer loader – aka “Project Minotaur” – a first-of-its-kind fully integrated design that matches the best operating characteristics of a compact track loader (CTL) with a crawler dozer. A launch/production date for the machine has not been confirmed, but CONEXPO-CON/AGG 2017 represents a new and advanced phase in product development.

“In 1957, we changed the industry with the introduction of the first-ever fully integrated backhoe-loader,” says Scott Harris, vice president – North America, CASE Construction Equipment. “The DL450 compact dozer loader represents that same

forward-thinking and practical innovation, but in an exciting new platform.”

With more than 30 new patents pending, the DL450 provides the power and performance of a small dozer in a platform that also serves as a loader and runs all of the attachments that a contractor currently owns for their skid steers and compact track loaders. The core feature of the DL450 is a C-Frame dozer interface that pins directly into the chassis of the machine. This provides the stability and smooth operating plane of a CTL, and ensures that all operating power and stresses are channeled through the machine’s chassis and not its loader arms.

ARA Reports HIGHEST

ATTENDANCE IN OVER A DECADE

at The Rental Show 2017 Amid a strengthening economic forecast for the equipment rental industry and a trade show floor that sold out for the fth straight year, rental business attendance at The Rental Show 2017 had strong increases over last year, according to the American Rental Association.

There were 6,276 rental business attendees in Orlando – the first time since The Rental Show s 50th anniversary in 2006 that the number of rental attendees topped 6,000 and the eighth consecutive year for growth in rental business attendance. This year’s attendees represented 2,730 rental businesses, the most companies at the Show since 2001. The 2001 and 2006 shows also were in Orlando.

Total attendance at The Rental Show 2017 was 11,648, and was the highest total attendance since 2006.

The attendance increases were a reflection of the positive mood overall at The Rental Show 2017. “The sentiment among attendees and exhibitors was one of optimism,” said Tony Conant, CEO of the American Rental Association (ARA). “Several exhibitors I spoke with were a bit surprised by the buying

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The C-Frame can then be unpinned from the chassis and disconnected like any other attachment, allowing the machine to perform like a standard CTL. “The problem with dozer attachments common with CTLs and skid steers... is that they channel all operating stress through the coupler and the loader arms, and are really only suitable for groundline work,” says John Dotto, brand marketing manager, CASE. “This affects performance and adds wear/stress to those components. The operator gets true dozing performance with this machine – no arm float, a consistent plane and true six-way blade performance through the machine’s new controls.”

activity. They said that the buyers were replacing fleet and ad ing fleet, which means that the ental operators are preparing for growth.”

ARA Chairman of the Board Roger Vajgrt, Home Rental Center and Sales Co. in Marshalltown, IA, said “the show floor was bus , orders were written and the vendors I talked to were ecstatic,” he said. “People seem to be positive.”

For Conant, who’s been ARA CEO since mid-November, his first time at The Rental Show “was a fantastic experience. The attendance exceeded our expectations and, more importantly, the initial feedback from the attendees was that this was one of the best shows in years,” he said. “With the highest total attendance since 2006, it is safe to say that there is momentum building in the rental industry.”

The five-year fo ecast for the equipment rental industry revenue released by ARA in January showed a moderate strengthening compared to the previous forecast from November 2016. U.S. equipment rental revenue is projected to reach $48.9 billion this year and grow at an average rate of 4.3 percent over the forecast to top $56 billion in 2020.

For 2018, The Rental Show will return to New Orleans and the Ernest N. Morial Convention Center with a full day of educational seminars on Sunday, Feb. 18, and the trade show from Monday, Feb. 19, through Wednesday, Feb. 21. Additional details on next year’s show will be available throughout the spring and summer at TheRentalShow.com.

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MANUFACTURER PROFILE

BUILT WITH THE

DURABILITY & SAFETY ITS CUSTOMERS DEMAND

CASE Construction Equipment, established in 1842, has spent nearly 175 years manufacturing light and heavy equipment, including some of the most popular products for the rental market today: backhoe loaders, skid steers, compact track loaders, excavators, wheel loaders, compactors, dozers and rough-terrain forklifts.

The company has navigated an evolving equipment landscape that has seen a change in how equipment is bought and utilized, and the entire line of equipment was redesigned to most efficiently meet emissions regulations.

Throughout this shift, CASE dedicated itself to engineering beyond emissions requirements to deliver more productive, practical and intuitive solutions.

As a result, today’s CASE equipment delivers improved productivity, excellent fuel efficiency, strong yet smooth

hydraulic power, as well as intuitive and comfortable operating environments that shorten the learning curve and help operators be as productive as possible. CASE Tier 4 Final engine solutions require little or no additional maintenance.

Every CASE machine is backed by more than 350 North American dealer locations, thousands of OEM, remanufactured and Gold Value™ parts, as well as flexible financing and insurance options.

CASE ProCare and FleetCare1 further allow rental businesses to grow their equipment fleet with the peace of mind that one of the world’s largest equipment manufacturers is there for support.

A recent example of CASE’s commitment to the rental market and its philosophy on designing practical and intuitive equipment: the CASE 580N EP backhoe loader. The 580N EP (Efficient 1

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Power) features CASE’s particulate matter catalyst, a Tier 4 Final solution that requires no fluids and no diesel particulate filter (DPF) maintenance. At 74 horsepower – and with a backhoe bucket breakout force of 11,517 pounds, backhoe lift capacity of 2,858 pounds, and peak torque of 233 foot-pounds – the 580N EP provides ample power and performance while still keeping fuel, maintenance, and owning and operating costs low.

For more information on CASE, visit CaseCE.com, and to see our latest news for the rental industry, visit CaseCE.com/Rental.

ProCare available on CASE heavy equipment lines for qualifying rental businesses, while FleetCare is available for larger national accounts.

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SHOW

FOLLOWING IS NEWS GATHERED FROM THE RENTAL SHOW AND CONEXPO-CON/AGG 2017.

REPORTS

For more complete coverage of the shows, please visit ForConstructionPros.com/Rental.

Wacker Neuson Celebrates 50 Year as Exhibitor at The Rental Show with Machine Giveaway Drawings

To celebrate 50 years as an exhibitor at The Rental Show, Wacker Neuson gave away eight cut-off saws and four rammers during the course of the show in Orlando.

As dealers placed orders at the show, their name was entered into the drawing. At the top of each hour, Todd Christifulli, director of sales & distribution development for Wacker Neuson, rang the anniversary bell and drew the name of the dealership winning either a BTS635 cut-off saw or a BS-series rammer.

While Wacker Neuson marked its 50th year as an exhibitor at the annual rental show, in 2017, the equipment manufacturer is also celebrating 60 years of doing business in the United States and 50 years in Canada.

WINNERS OF BTS635 CUT-OFF SAW: • Booneville Lawn & Garden, Booneville, IN • Hiawatha Reddy Rents, Minneapolis, MN • Southern Gulf Equipment, Fort Myers, FL • Road Machinery & Supplies, Savage MN • Hwy 55 Rentals, Hamel MN • Tri-State Bobcat, Inc., Burnsville, MN • Taylor Rental, Mundelein, IL • All Star Equipment Rental, Naples FL

WINNERS OF BS-SERIES RAMMERS: • Equipment 4 Rent, Avon MA • Wagner Equipment Co., Carbondale, CO • Lake Oconee Rental, Eatonton, GA • A-1 Rent-Alls, Regina, SK Canada

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NEW GENIE TECH SIGHT APP OFFERS ENHANCED TROUBLESHOOTING CAPABILITIES IN THE FIELD The new Genie Tech Sight application allows Genie Technical Services & Support team to now troubleshoot technical issues in the field using online video guidance for real-time visual assistance. The app enables Genie to engage in “live” interactions with field service technicians using video-enabled mobile devices, including smartphones and tablets — Android or Apple (iPhone and iPad) powered systems.

When a rental store service tech need assistance while working in the field, they can use the video call feature on this new app to connect with the Genie Technical Service and Support team. The visual component of this app allows rental stores’ service techs to share “what they see” for immediate troubleshooting and response. The Genie team can then interpret and explain what is going on based what is happening on the screen.

“The Genie Tech Sight app puts real-time field service support in the palm of a field service tech’s hand, providing the technical support they need when they need it,” says Bob Bartley, Genie senior director of product support and reconditioning, Terex AWP. “Using this app gives Genie technical experts the ability to quickly handle and resolve issues customers are experiencing in the field. It integrates customer service, field service, customer support and video calls all into one.”

Here’s how the new service support app from Genie works: • Connect with a Genie Technical Services & Support expert via phone, then initiate the app and point camera at the issue • Chat with a Genie expert to troubleshoot the issue, using the mobile device’s display as a viewfinder • Pause the video to highlight the issue and follow the Genie expert’s guidance on how to resolve “With our ability to offer 24/7 technical support online or by phone — and now with the Genie Tech Sight app,” finishes Bartley, “we can help keep our customers’ fleets up and running, meeting the demands at jobsites and building their rental return on investment (rROIC).”

www.ForConstructionPros.com/RENTAL

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MANUFACTURER PROFILE

PORTABLE POWER THAT

PACKS A PUNCH Kaeser Compressors is a worldrenowned manufacturer of compressors, blowers, vacuum pumps, and other industrial air system products. With a heritage that extends back to 1919, Kaeser is globally recognized for their superior quality and commitment to energy efficiency. Reliability, durability, and ease of maintenance are just some of the hallmarks of their German engineering.

Taking a closer look at their line of portable rotary screw compressors, it’s clear why they have a built for a lifetime™ reputation. Kaeser’s Mobilair™ portable compressors are engineered and manufactured in Germany to be reliable and pack the most efficiency possible into a compact, rugged design.

Models are available from 50 – 1,200 cfm at 100 psig. They have a heavy duty

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chassis and enclosure to protect from corrosion and the elements. Mobilair compressors feature larger, slower turning airends for longer life and bet-

committed to delivering portable compressors that outlast the others in the field. The fact that customers walk in to a rental shop and ask for us by name speaks volumes of the quality in a Mobilair compressor.”

Customers love the easy operation and the way they handle on the road.

Rental houses love Mobilair’s ability to take a beating and still deliver great performance.

ter efficiency, and produce up to 20% more air per gallon of fuel than other models in the same class. Tier 4 engines and smart, integrated controls add extra efficiency and convenience for rental houses and end-users.

“You can’t cut corners on quality,” explains Chance Chartters, Kaeser’s Mobilair Sales Manager. “We’re

For more information, visit www.us.kaeser.com/mobilair

us.kaeser.com/mobilair

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SHOW

FOLLOWING IS NEWS GATHERED FROM THE RENTAL SHOW AND CONEXPO-CON/AGG 2017.

REPORTS

For more complete coverage of the shows, please visit ForConstructionPros.com/Rental.

JLG MACHINE-LIFECYCLE SOLUTIONS CONTINUE TO UNFOLD AT THE RENTAL SHOW JLG Industries unveiled its AccessReady operator-training portal at The Rental Show, and took the opportunity to review the company’s extensive support offerings – including multiple equipment options, parts, service and training opportunities – throughout the lifecycle of its equipment.

The brand experience starts with the purchase of a machine, be it new, through JLG’s used equipment website www.jlgused.com or via a private sale. Certified, p e-owned equipment is available from JLG and is the first program of its kind in the access industry.

Three parts options offer a threetiered approach to make JLG a singlesource resource to JLG customers and those with mixed fleets • JLG Genuine • JLG Reman • Brand-new line of competitive brand parts launched at CONEXPO The first of two Parts Distribution Centers (PDC) planned for 2017 opened in the Las Vegas area. The second will be in Atlanta and open later this year. These two strategic locations have been selected based on geography and transportation systems to ensure quick delivery of JLG parts to customers across the country. All parts offerings can be ordered online by customers or through a retail order hotline at 877-JLG-LIFT. Additional locations are planned to open in 2018.

JLG opened its exclusive customer training center and proving grounds in McConnellsburg, PA, in 2014.

The company has steadily grown its range of on-site and online training opportunities. Customers can choose among a variety of courses to become a certified operator or operator trainer for AWP’s and telehandlers. The courses can be taken at the training center or locally.

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AccessReady is the newest JLG training platform. The system is designed to connect operators who want to use JLG and competitive model AWPs and telehandlers safely and efficiently with JLG qualified trainers in their area. AccessReady trains operators on specific categories of equipment such as AWPs or telehandlers and is not brand specific. Any operator who successfully completes the training is qualified for th ee years on telehandlers and indefinitely for WPs. The company offers a factory reconditioning program to extend a machine’s lifecycle. The 11-day process restores the machine to its original specification, inside and out. Factory trained experts follow strict guidelines and use genuine parts to deliver fully inspected, like-new equipment with a best-in-class warranty.

A strong service arm with 71 customer support service centers and 400 trained technicians across the U.S. and Canada ensures optimal uptime and productivity. Each location is fully equipped to perform light and heavy repairs, contract and preventive maintenance, as well as inspections.

One hundred and fifty mobile service vehicles are dispatched on demand for field epair work to keep machines on the jobsite.

“Our end-to-end solutions ensure JLG customers receive the best service and support, wherever they are located, with the ultimate goal of reducing total cost of ownership and gaining optimal resale value,” said Jonathan Dawley, global vice president, aftermarket at JLG Industries Inc.

Volvo Launches 24-HOUR PARTS GUARANTEE Program in North America Volvo Construction Equipment demonstrates its commitment to customer uptime with a 24-Hour Parts Guarantee in the United States, including Alaska, and a 48-Hour Parts Guarantee in Canada and Hawaii.

The Volvo 24-Hour Parts Guarantee is a new program to help ensure Volvo delivers when customers need parts most. If a machine should go down, Volvo guarantees delivery of parts within 24 hours of order placement. The Parts Guarantee follows the opening of a third U.S. distribution facility — a $70-million Central Parts Distribution Center near Memphis, TN. With additional investments in systems, inventory and people, Volvo is continuing its commitment to customer support and expansion in North America.

“Giving customers the support they need to operate with confidence and increase uptime is our number one goal,” says Ken Silverman, vice president, customer support at Volvo. “This guarantee is just one more way to help contractors mitigate risk, realize more working hours and gain higher profitability.”

The 24-Hour Parts Guarantee joins a number of machine support offerings, including the Volvo Lifetime Frame and Structure Warranty, Fuel Efficiency Guarantee, and Volvo-managed telematics support program, ActiveCare Direct.

More information regarding the Volvo 24-Hour Parts Guarantee is available through authorized Volvo dealers and at volvoce.com/parts24.

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MANUFACTURER PROFILE

HAVING OPTIONS IS A POWERFUL THING

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When your customers demand solutions, having options is a powerful thing. You can choose from a lineup of 30 robust Cushman® work vehicles that can cover any task, from off-road construction and indoor hauling to big events and hospitality. Custom solutions are also available to meet the most specialized job site needs.

Designed with power, efficiency and versatility in mind, the Cushman industrial line of vehicles allows you to maximize every hour on the factory floor. Whether the job calls for hauling massive loads, carrying bulky materials or efficiently navigating through narrow aisles in warehouses or convention centers, you can be sure that there’s a Cushman vehicle to meet your every operational need.

For jobs that require a robust utility vehicle solution, the Cushman commercial line is equipped to offer reliable performance and support, regardless of the environment. From transporting equipment and facilitating property maintenance, to personnel or guest transportation, there is a vehicle solution configured to accommodate your customer’s needs.

These vehicles are ready to push the boundaries of all operations to allow crews to run more efficiently. With outstanding energy efficiency, low operational costs and endless options, you can raise your expectations on what Cushman vehicles can do for you.

Expand your business and your fleet with the complete offering of Cushman commercial and industrial vehicle solutions.

To learn more about building a stronger lineup, email Cushman@textron.com today.

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SPECIAL REPORT: TELEMATICS

By Cur t B ennink, c ontributing e ditor Images By: Ritchie Bros.

Can Telematics Data Impact Construction Equipment’s

RESALE VALUE?

Digital data provides a more complete history for your equipment, potentially boosting its appeal for buyers

A

nyone who has purchas e d pre-ow ne d equipment can relate to the anxiety of the unknown. Was the equipment maintained properly? How hard was it used? Is it reliable, or does it have a long history of repairs? Has it ever suffered catastrophic damage that could affect future performance?

Many of these questions can be addressed through proper

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documentation. But maintaining those records can prove challenging, and wading through a stack of work orders still might not provide a complete picture. The emergence of telematics systems promises to solve such dilemmas by providing detailed information on machine utilization, maintenance and repairs in an easier to use format.

Currently, used equipment documentation is all over the board. “Each equipment owner is different. Some keep complete detailed reports on every single machine; some not so much,” says Doug Olive, senior vice president, pricing, Ritchie Bros. “Anything that decreases paperwork is welcomed. We will share whatever information the owner has with interested buyers, and will continue to provide as much information as possible online.”

p Used equipment documentation is all over the board. Telematics can enable more complete recordkeeping, which can in turn boost residual value.

Well-documented machines are not necessarily the norm. “Complete maintenance records are not as common as one might think, and telematics can certainly help streamline the process,” says Randy Berry, senior vice president, operations and services, IronPlanet.

“Integrating telematics with a maintenance management program enables contractors to easily store their maintenance plans and records in one location.

“A complete set of maintenance records has a heavy impact on the residual value of a machine,” he continues.

“When time to divest, it gives future buyers confidence in the current condition of your asset, as well as setting it

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MANUFACTURER PROFILE

SNORKEL GROWS PRODUCT LINE FOR THE RENTAL INDUSTRY Snorkel, a leading global manufacturer of aerial lifts is expanding their product line and continues to prove themselves as the rental market’s answer for long-lasting and easy to maintain machines. Designed to handle the demands of the rental industry, the new models released at CONEXPOCON/AGG®, are true to Snorkel’s core values of simplicity, reliability and durability.

Reaching New Heights Snorkel introduced a 16 ft. electric drive version of its popular 12 ft. TM12 self-propelled telescopic mast lift. The TM16E has electric drive for long duty cycles, and includes a 20 in. roll-out extension deck for additional reach, plus a zero inside turning radius, making it ideal for working in confined spaces.

Increasing Productivity Snorkel raises the bar again with the addition of six material lifts. Delivering best-in-class load capacities, the new lifts feature a dual-handle, shift-on-the-fly,

two-speed winch for increased productivity when lifting loads, up to twice as fast as other material lifts on the market.

Snorkel’s First-Ever Telehandler Snorkel’s first rough terrain telehandler, SR5519, can lift a max load capacity of 5,500 lbs. and reaches heights of 19 ft. Although designed to be competitive, the SR5519 is still rich on features, including a spacious cab and large touchscreen interface for accessing load charts and manuals. The SR5519 will be available to order in North America in the fourth quarter of 2017.

The Snorkel S3019E features a brand new design with a low step-in height thanks to the sunken scissor stack that stows inside the chassis. The all-electric lift uses no hydraulic hoses, achieved through electric drive and electric steer.

The Snorkel S3019E can lift 500 lbs. to a platform height of up to 19 ft., and weighs 3,200 lbs.

Proven for the Rental Market Snorkel is recognized world-wide for creating robust and innovative machines that offer maximum residual value while outperforming the competition.

Snorkel Unveils Prototype Scissor Lift Providing a glimpse of what is still to come from Snorkel, the company unveiled a prototype design of its next generation electric slab scissor lift. www.ForConstructionPros.com/RENTAL

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For more on Snorkel product launches, please visit: www.snorkellifts.com MARCH 2017

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SPECIAL REPORT: TELEMATICS

apart from other similar machines that may be available… The more usage a machine has, the more important records become.”

Automation improves recordkeeping How telematics data is managed is critical. “The telematics data itself is important, but how well an owner manages the data is what makes an impact,” says Berry. “Using telematics can improve keeping track of maintenance records. This summary of a machine’s life has a big impact on the ultimate resale value.”

Documentation should include who performed the work and what parts were used. “Buyers are particularly interested in knowing how well a machine has been maintained — not just what work has been done, but whether the work was done by a certified or OEM dealer, and whether or not OEM parts and components were used,” notes Olive.

The goal is to verify machine condition and maintenance. “One of the factors that determines machine value is obviously condition,” says Tom Jacobson, division manager, equipment remarketing services, John Deere Construction & Forestry. “One of the drivers of condition is maintenance.

“Maintenance records and maintenance verification are going to be key drivers,” he continues. “What telematics offers is a more efficient way of delivering that information — better than a folder that is full of a bunch of work order pieces. The more efficient and automated and digital it can be, the more value it adds.”

Rental companies understand the value of complete maintenance documentation. “Well-maintained machines command a premium when sold,” says Helge Jacobsen, vice president, operations excellence, United Rentals. “It’s one of the advantages we have when cycling equipment out of our fleet.

United Rentals has made it a strategic

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imperative to have the highest caliber of maintenance in the industry, and customers see the value in that.

Maintenance and repair data was logged manually in the past, but with the intersection of our enterprise technology and telematics, we have an opportunity to capture data at an unprecedented level of granularity.”

Telematics data results in more detailed records for United Rentals’ fleet. “We have always kept excellent maintenance records, so I wouldn’t

as manufacturers add more features and capability.

John Deere began putting telematics on its equipment in Januar y 2011. “We just recently launched our Maintenance Manager feature on our JDLink Dashboard telematics portal,” says Liz Quinn, product marketing manager, John Deere WorkSight. “We also recently launched a complimentary My Maintenance mobile app that makes maintenance recordkeeping easier, and therefore more likely to be done.”

p Buyers are particularly interested in knowing how well a machine has been maintained – not just what work has been done, but whether the work was done by a certified or OEM dealer, and whether or not OEM parts and components were used.

characterize it as better,” says Jacobsen.

“But the data will be significantly more detailed. We have deployed about 150,000 telematics devices to date, each one transmitting the status of the equipment on a very regular basis. And with the ever-decreasing cost of sensors, we foresee continuing to increase the data that we capture. This is a much more valuable process than manually entering records when equipment is returned to the yard.”

Data continues to improve Data collection through equipment telematics systems continues to improve

This technology makes it more difficult to miss maintenance intervals.

“Maintenance Manager will provide the customer either a factory recommended interval checklist or the customer can put in his own checklist if he wishes,” says Quinn. “It comes with a My Maintenance mobile app that is designed for a service technician or someone who is responsible for doing the daily walk-around inspection to be able to efficiently document what has been assigned to them.”

Such technology promises to revolutionize maintenance management. “When we started down

www.ForConstructionPros.com/RENTAL

3/21/17 8:14 AM

MANUFACTURER PROFILE

INNOVATIVE, CUSTOMERDRIVEN BUSINESS MANAGEMENT SOLUTIONS Since 1986, Baseplan S oftware Group has developed innovative, customer-driven business management solutions specifically for the rental, sales and equipment industries.

An expanding global business, with customers spanning four continents, we have proven over the last 30 years that Baseplan Software provides our customers with a foundation that empowers them to run more efficiently. Customers are provided with the tools to build greater value into their business with prompt delivery of products and services, while maintaining superior after-sales support.

Baseplan Enterprise — a customized solution — is scalable, tightly integrated and module based.

Individually, the Sales, Rental, Service, Inventory and Financial modules offer unrivaled control and visibility of business processes and supply chain management in all crucial sectors of your business. Baseplan delivers a market-leading, seamless business management solution with endless benefits for your business and customers.

“We are excited about the growth Baseplan Software is experiencing. It represents our success in delivering on the commitment we made a few years back to bring to the U.S. rental and dealership industry a software solution unrivaled by anything www.ForConstructionPros.com/RENTAL

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“WE ARE EXCITED ABOUT THE GROWTH BASEPLAN SOFTWARE IS EXPERIENCING. IT REPRESENTS OUR SUCCESS IN DELIVERING ON THE COMMITMENT WE MADE A FEW YEARS BACK TO BRING TO THE U.S. RENTAL AND DEALERSHIP INDUSTRY A SOFTWARE SOLUTION UNRIVALED BY ANYTHING CURRENTLY AVAILABLE.” —Lisa Jones, COO, Baseplan North America

currently available,” said Lisa Jones, COO, Baseplan North America.

From field solutions to rental management, Baseplan Enterprise can offer business intelligence software to keep our customers a step ahead of the competition. As the industry changes and grows, Baseplan is there to provide customers with worldclass technologies, harnessing the importance of asset management, computerized inventory monitoring and equipment management solutions.

Baseplan has built its success on helping customers increase productivity, optimize business processes and maximize operational

effectiveness, all while creating greater value propositions for their customers.

Supported by our company-wide focus on excellence in customer service, Baseplan Enterprise is the only true end-to-end fully integrated software solution on the market.

www.baseplan.com 1980 Festival Plaza Dr, Suite 425 Las Vegas, NV 89135 (702) 410 8600 MARCH 2017

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SPECIAL REPORT: TELEMATICS

the development of the Maintenance generally translates into higher sales rental life remaining for a given unit.

Manager feature, we went all over the prices.”

We invested in telematics knowing that country and looked at how customAny additional information on a it has implications for fleet management ers were managing their maintenance piece of equipment can help allevion many levels, and that is proving to today,” says Quinn. “It is very much ate potential concerns. “Transparency be the case.” done on grease boards, Excel spreadhas always been a key element of busiIn addition to maintenance and sheets and spiral notebooks. We have ness since we began,” says Olive. “Our repairs, telematics is also capturing how seen a lot of different ways. live unreserved auctions are open to the machine was used. “As we begin to “Contractors who know how importhe public and equipment is available monitor more pieces of information off tant maintenance is have been using on our yard for inspection ahead of the machine, we are also very involved third-party telematics systems to try the sale. We provide detailed equipin monitoring production,” says Quinn. and automate things a bit more,” she ment info and high-res photos on our “How much dirt has that truck or loader adds. “But with our connection to the website. We also make service records moved? That also comes into the equamachine and our factory recomavailable to bidders. So we certainmendations on a particular model, it ly encourage increased info being gives us a little more of an advantage available.” to provide a comprehensive mainMany customers are becomtenance management, checkup and ing more aware of the existence of documentation tool.” telematics data. “We have had cus“You will see better recordkeeptomers ask to see telematics data on ing as machine owners begin to take used equipment, and I believe that advantage of the growing number will become more commonplace as of individual machines equipped telematics become more popular,” with monitoring technology,” Berry says Olive. predicts. “Technology has helped Telematics may also have more provide more detailed records in p The more a customer knows about a machine of an impact on how machines are other industries and will do the the more confident they will be when they bid – purchased in the future. “I don’t see and that generally translates into higher sales prices. same in the construction industry. the increasing use of telematics hav“A major hurdle is the sheer voling an influence on the way we sell ume of data — a single download from equipment,” says Olive. “However, as tion of how hard the machine worked, the ECM of a truck or piece of equipmore information becomes available to how productive it was, how healthy it ment can generate tens of thousands of people, it should have an impact on how was. It plays into that decision at the lines of data on everything from fuel they bid — and how much they are willtrade-in conversation.” efficiency to engine warning codes to ing to pay. The more informed they are, Changing the resale process oil pressure,” he points out. “There is a the more confident they will be when The first generation of telematlot of data available, but there is still a they bid.” ics-equipped machines is just hitting lot of work to be done analyzing trends IronPlanet claims telematics data the resale market, so it’s premature to in performance of individual systems to can help remote buyers bid more conpredict the full impact telematics data accurately predict how much useful life fidently online. “The increasing use of may eventually have on resale value. is left in a given unit.” telematics is another indicator of the Most manufacturers only recentUnited Rentals is still finding ways shift to online marketplaces for buyly began equipping the majority of it can utilize its telematics data. “We ing or selling equipment,” says Berry. their machines with standard telematknow infinitely more about equipment “Telematics is another advancement ics capability from the factory, and the today than we ever did,” says Jacobsen. that places information in a compatechnology continues to evolve.

“As a safety conscious company, we ny’s hands without the need to go and “At this point, we don’t have enough have always documented maintenance inspect a piece of equipment. They can information to determine whethevents, but now we can capture the stamake decisions on the machine or an er telematics data is having an impact tus of a unit in real-time updates. We upcoming project based on real-time on pricing at our auctions,” says Olive. are currently building the analytical data via their phone, tablet or comput“However, the more a customer knows capability to use the data to predict failer. Businesses want to spend their time about a machine, the more confident ures, create proactive alerts and get even focusing on the projects that drive their they will be when they bid — and that more granular in calculating the useful profits.” ■

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MANUFACTURER PROFILE

HELPS CUSTOMERS STAY

ON SCHEDULE & PROFITABLE

Ditch Witch, a Charles Machine Works company, specializes in the design and manufacture of high-quality underground construction equipment for utility installations. Globally recognized for advancing underground construction equipment technology and providing expert dealer support, the Ditch Witch organization helps customers stay on schedule and prof profitable. Today, the company designs, manufactures and markets the most complete line of directional drills, drill pipe, HDD tooling, vacuum excavators, trenchers, chain, teeth and sprockets,

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mini skid steers, vibratory plows, and Ditch Witch Financial Services offers a variety of financing and lease options.

Recent product launches include the next-generation JT40 directional drill, the ST37X stand-on trencher, a new line of construction-grade mini skid steers and a virtual reality HDD training

simulator. Handcrafted in the USA, its products are supported by the Ditch Witch dealer network with over 175 locations worldwide.

For more information, please visit:

www.ditchwitch.com

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INDUSTRY UPDATE

NICKELL RENTAL ANNOUNCES NEW LOCATION IN LAGRANGE, GA Nickell Rental, a family-owned southeastern equipment rental business, opened its doors on March 13 to its fourth location in LaGrange, GA at 1902 Roanoke Rd. This facility has over 15,000 square feet of space and features a large newly built 2500-square-foot showroom with a modern industrial design.

The selection of equipment offered to the West Georgia area will be comparable to the other three locations – in Newnan, Griffin, and Hiram, GA – in that there will be a full fleet consisting of the most common pieces and hard-to-find items for both heavy equipment jobs and tools for smaller projects.

“Our new LaGrange facility extends Nickell Rental’s commitment to provide exceptional rental equipment for small to mid-sized contractors, homeowners and light industrial markets,” says Josh Nickell, owner of Nickell Rental. “We’re excited to bring the core values of Nickell Rental and our expertly trained staff to the West Georgia and East Alabama market.”

The new location sits at the intersection of US Highway 29 and State Highway 209, which serve as corridors for the area and are the highest traffic routes crossing West Point Lake. The site also provides easy access to the industrial parkways of LaGrange and to Interstate 85, which will be beneficial to serving the surrounding areas.

John Muzio, the branch manager for the LaGrange location, says “During the renovation phase of the building, we had several customers stop by to express their excitement about Nickell Rental coming to town,” Muzio continues. “We are excited to be able to provide them with exceptional customer service, a quality product, and knowledgeable consultations so they know we’re getting them the right tools for the job at reasonable prices.”

IRONDIRECT RENTAL CO-OP OFFERS 1% FLEET ASSET LIQUIDATION SERVICE IronDirect has established a Rental Co-Op program that gives rental centers an online portal to purchase new equipment and to auction or otherwise liquidate fleet assets for a me e 1-percent fee.

well below what typical auction services charge. Customers have six-month access to this service from day one. To keep the service active, customers commit to a minimum purchase level of new equipment every six months.

“Our Rental Co-Op provides fleet resale services for an extremely low 1-percent fee and makes it convenient and easy for rental centers to acquire new equipment,” said IronDirect President Tim Frank. “This allows our customers to retain maximum value from their equipment fleets and einvest those dollars in new equipment.”

The secure Rental Co-Op portal gives rental companies one-stop access to purchase-leading brands of access products, telehandlers, excavators, backhoes, remanufactured trucks, compact track loaders, wheel loaders, air compressors, generators, skid steers and more. They also receive discounted pricing for IronDirect’s remanufacturing services, including reman Class 1 to 5 trucks, earthmoving machines, generator sets, compressors, aerial lifts and telehandlers.

Enrollees in the Rental Co-Op can list retiring fleet assets of any brand or kind for sale with IronDirect Resale Services, which will prepare each item for auction and aggressively market it in industry publications. All resale listings will include use of PreviewLive, IronDirect’s product virtual tour app. When the item sells, owners pay a small 1-percent fee,

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Rental companies interested in the co-op program should contact Tom Hlawek at (281) 639-0055 or via email, Thomas.Hlawek@IronDirect.com.

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MANUFACTURER PROFILE

EXCEEDING

CUSTOMERS’ LIFT CAPACITY

EXPECTATIONS To adapt to today’s widespread need to enable people to work at height safely with increasingly heavy loads using a single machine, Genie® Xtra Capacity™ (XC) boom lifts are designed to work in more applications that require higher capacities.

proposed ANSI A92 and CSA B354 industry standards in North America, as well as the current European EN280 and Australian AS 1418.10 standards.

“XC” Means Xtra Capacity

New Technology Enhances Work Practices

Exceeding customers’ lift capacity expectations, Genie XC booms combine the benefits of a dual-envelope design to provide an unrestricted range of motion with a platform capacity of 660 lb (300 kg) and a restricted operating envelope capacity of 1,000 lb (454 kg). These booms are designed to reduce the number of lift cycles, as well as the amount of equipment, operators need to get tools and materials to work areas at height — doing more with a single unit saves time and increases productivity.

The XC nomenclature also lets rental customers know that the new Genie booms comply with the overload restriction guidelines in the

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To increase performance, decrease set-up time and improve the overall productivity, all Genie XC models boast the ability to do zeroload field calibration. These new Genie booms are equipped with a load sense cell that continuously checks the weight in the platform and adjusts the envelope to match the load chart. A tilt sensor also gives users access to different ranges of motion based on the machine’s rated slope limit, on certain machines even on extreme angles, maximizing

the ability to access even the most hardto-reach work areas.

An updated CAN-based control system on most of the new Genie XC models brings the familiar SmartLink™ control system features to these new booms. Operators will find the control layouts on these new Genie XC machines to be consistent and intuitive, making operation of the booms easy and straightforward. And, service technicians will appreciate the onboard diagnostics available on the new LCD display at the ground controls, allowing machine setup, calibration and troubleshooting right on the machine — no need for a laptop or any additional accessories.

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INDUSTRY UPDATE

HUSQVARNA GROUP TO ACQUIRE HTC,

Strengthening its Position in Surface Preparation Husqvarna Group’s Construction Division has signed an agreement to acquire the Floor Grinding Solutions Division of HTC Group AB, the market leader in floor grinding solutions “We have previously communicated the ambition to grow our Construction Division. The acquisition of HTC is an important step on that journey and, together with the recent acquisitions of Pullman Ermator and Diamond Tool Supply, is seen as an expression of that goal. Combined, these acquisitions give us a strong position in the fast growing and attractive surface preparation market,” says Kai Wärn, president and CEO of Husqvarna Group.

“The combination of HTC and Husqvarna Construction will create a strong platform to educate floor owners and a chitects about the benefits of polished conc ete floors and increase the preference of this flooring solution. Th ough the acquisition, we will strengthen our ability to develop and offer customers the best total solutions for the segment” says Henric Andersson, president of Husqvarna Construction.

Further details will be announced closer to the finalization, which is expected by mid-year. The acquisition of HTC Floor Grinding Solutions is subject to approval from competition authorities and the impact on Husqvarna Group’s earnings in 2017 will be limited.

Auto Cable Feed

Auto Cable Feed Unit Shown

Upright Position

Model CT UNIQUE Variable Speed Motor Feature gives operator maximum cable control and exceptional cleaning power from 75 to 350 RPM with constant torque.

Professionally designed to clean 3/4” to 2-1/2” diameter drain lines up to 50 Ft. Standard unit features a hand tighten Jacobs Chuck. The CT is also available with a 2-way auto cable feed that keeps hands off rotating cable as it advances and retrieves cable with the push of a lever, and helps keep work area clean.

Well balanced, heavy-duty steel tubular frame allows for 2 position operation.

Rugged stainless steel cable drum will not rust and resists denting.

Holds up to 50’ of 1/4” cable, 50’ of 5/16” cable, or 35’ of 3/8” cable.

• •

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The Counter-Top Drain Cleaner You Can Count On For Top Performance!

1-800-833-1212 www.electriceel.com

Rent The Professional’s Choice!!!

JLG OPENS DISTRIBUTION CENTER IN LAS VEGAS JLG Industries Inc. announced plans to open its new parts distribution center (PDC) in Las Vegas this spring.

The new 215,000-square-foot parts distribution center will stock more than 20,000 SKUs. The parts offering from this facility will include all products from the JLG Genuine, JLG Reman and new MaxQuip lines. All available parts can be shipped with next-day delivery in North America.

“Opening the Las Vegas parts distribution center represents our continued commitment to being the industry leader in aftermarket service and reducing our customers’ cost of doing business,” said Jonathan Dawley, global vice president, aftermarket at JLG Industries Inc. “This new PDC brings our parts inventory geographically closer to customers for quicker delivery of parts.”

Customers will continue to use JLG’s easy-to-use Online Express customer portal or retail order hotline (877-JLG-LIFT) to place parts orders for new or remanufactured JLG and competitive-make parts.

Orders will be shipped from the nearest JLG parts location directly to the customer. Shipping options will remain the same.

The new parts distribution center will employ a team of 25 full-time workers and is part of a strategic partnership with XPO Logistics, a proven provider of distribution and logistics services. JLG plans to open an additional 316,000 square foot parts distribution center in Atlanta later this year.

Search: 10072858

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3/20/17 2:32 PM

Sumitomo Corp. Acquires Remaining 20% of Sunstate Sumitomo Corporation announced it has acquired the remaining 20% interest in Sunstate Equipment Co., LLC through its subsidiary SMS International Corporation, making Sunstate a wholly owned company of Sumitomo Corporation Group.

Sunstate is the 7th largest equipment rental company in the United States and the 24th largest in the world. With its 40 years of industry experience, Sunstate has grown from a single Arizona location to over 60 branches in nine states, employing nearly 1,600 individuals.

The United States is currently experiencing rapidly deteriorating infrastructure systems, for which repairs are estimated to exceed billions of dollars over the next 10 years. This in turn provides anticipated growth for the construction equipment rental industry, which already exceeds 30 billion dollars and is expected to continue to grow due to the demand for infrastructure projects.

GENIE UPDATES CABLE REPLACEMENT PROTOCOL FOR BOOM LIFTS Designed to save and simplify, Genie announces a revised protocol for cable replacement on its cable-operated telescopic booms — the Genie S-60/S-65, S-80/S-85, S-100/S-125, SX-135 XC, SX-150 and SX-180 models.

Moving from a required 10-year replacement cycle, the updated protocol calls for a mandatory 12-year inspection of the boom extend/retract cables, which are the main components responsible for the extension and retraction of the boom tubes. With this protocol, replacement is only required if the cables do not pass inspection. The updated protocol offers Genie customers more equipment uptime and a lower cost of ownership over the potential life of a cable-operated boom.

“With rental equipment constantly going out and coming in, less time in the shop translates to more time out on rent,” says Bob Bartley, Genie senior director of product support and reconditioning, Terex AWP. “This revised protocol replaces the mandatory cable replacement process with an inspection-only procedure, reducing maintenance time and costs. This change could significantly decrease our customers’ total cost of ownership, driving a higher rental return on invested capital (rROIC).”

AT14S 180º SWIVEL DUMP

Sumitomo became engaged with Sunstate in 2009 with its firs investment in their Convertible Preferred Interests. As a minority shareholder, Sumitomo was focused on strengthening a partnership with Sunstate’s management while gaining an understanding of the industry. This led to Sumitomo acquiring the controlling interest of Sunstate in 2012 by increasing its ownership of Common Membership Interest to 80%. Following the acquisition, Sunstate expanded its business and tripled sales from 2009.

Sumitomo looks forward to contributing to the further expansion of Sunstate and the US economy by involvement in infrastructure construction projects and by creating employment within this field

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AT14S POWER TRACK BUGGY

Equipped with a 90º dump angle and a 180º pivoting dump this 14 cubic foot track buggy can place your material exactly where you need it.

PARAGOULD, ARKANSAS, USA // 870.236.7751 or 800.643.0095 (USA ONLY) // WWW.ALLENENG.COM

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INDUSTRY UPDATE

Vanguard Dramatically Extends Oil Change Intervals with New Oil Guard System Briggs & Stratton Commercial Power introduces the Vanguard Oil Guard System for its 810cc EFI VTwin and BIG BLOCK commercial engines. Oil Guard is a first-of-its-kind solution for the comme cial engine market, offering major productivity gains and allowing for 500-hour oil change intervals.

Vanguard engineers developed the system in conjunction with Ferris, a Briggs & Stratton brand.

The technology first launched on 2017 Ferris mowers, and anguard is actively exploring additional commercial applications for the innovative system.

“Oil Guard completely alters the way our customers look at oil changes. But, at its core, this new system is about increasing productivity — the same driving force behind all Vanguard innovations,” said Rick Zeckmeister, vice president of marketing and planning at Briggs & Stratton. “Vanguard’s ability to work with its sister company, Ferris, provided unique development insights from the perspective of an equipment manufacturer and helped us engineer a better overall solution. This oil management system shows strong potential for commercial applications outside of turf.”

The Vanguard Oil Guard System works by continuously exchanging oil between the engine and a 5-quart external oil reservoir. Its design protects oil from thermal breakdown, which extends oil maintenance intervals and produces a cooler-running engine. Direct access to the oil filter and drain tube esults in quicker, easier and mess-free oil changes.

Contractors operating commercial equipment with a Vanguard engine featuring the Oil Guard System will extend their recommended oil change intervals from 100 to 500 hours. This decreases the time and costs associated with conducting oil changes.

The Vanguard Oil Guard System is a factory-integrated technology, not an aftermarket add-on, so Vanguard’s 3-year commercial engine limited warranty applies.

DEUTZ TO SUPPLY REM ANUFACTURED ENGINES FOR TER EX AWP RECONDITIONING SERVICES DEUTZ Corporation will provide Terex Aerial Work Platforms (AWP) Reconditioning Services, now located in Oklahoma City, with DEUTZ Xchange remanufactured engines. These remanufactured engines will be installed in reconditioned Genie aerial equipment, including boom lifts, scissor lifts and telehandlers.

“Terex’s new streamlined remanufacturing operations in Oklahoma City will produce high-quality machines fitted with our DEUTZ Xchange engines,” said Robert Mann, president and CEO of DEUTZ Corporation. “These engines carry a three-year, same-as-new transferable warranty that is supported by our global service network.”

DEUTZ’s Pendergrass, GA remanufacturing facility will ramp up engine production to meet Terex’s requirements, using Terex’s new-machine-production

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logistics channels in Oklahoma City to ensure a seamless transition. DEUTZ will provide “plugand-play,” dressed Xchange engines with pre-installed mounting components and ancillary systems to minimize cycle time and manufacturing complexity.

“Terex’s AWP Reconditioning Services provide customers with a cost-effective alternative to purchasing new machines,” said Bob Bartley, senior director of Genie product support and reconditioning for Terex AWP. “The popularity of reconditioned Genie aerial equipment is increasing, due in large part to a strong warranty, short lead times and an excellent service network. DEUTZ Xchange engines support these elements that are mandatory for

the success of our reconditioned units.

“Due to the growth of its reconditioning business, Terex needed to par tner with an integrated supplier that has a long, proven track record.

The reconditioning business is highly dynamic due to the wide variety of Genie aerial equipment and engine models available. It would be challenging to grow this business without a flexible, capable supplier.

That’s what we’ve found with DEUTZ.” “We’re honored to continue growing our partnership with Terex,” said Steve Corley, chief sales officer for DEUTZ Corporation. “By supplying Terex’s new reconditioning operations in Oklahoma City with DEUTZ Xchange products, our mutual customers be able to easily access high-quality alternatives to new machines.”

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MANUFACTURER PROFILE

CHICAGO PNEUMATIC:

PEOPLE. PASSION. PERFORMANCE.

Chicago Pneumatic has a rich history of shaping the American infrastructure. From the Golden Gate Bridge to the Hoover Dam to the Empire State Building, Chicago Pneumatic tools and equipment have been trusted to build some of the most iconic landmarks in the U.S. Since its origination in 1901, the Chicago Pneumatic name has been providing high-performance tools and equipment designed for an extensive range of applications. The manufacturer has a wide product offering with an array of pneumatic, hydraulic and gasoline-driven equipment, portable compressors and generators, light towers, rig-mounted attachments, and concrete and compaction equipment for the construction and demolition industry.

Chicago Pneumatic is available where you are, with a global network of distributors that are backed by great sales and service support. The combination of a large network, outstanding support and durable products keeps customers coming back.

At Chicago Pneumatic, delivering high performance equipment is of paramount importance — from their smallest air tool to their biggest hydraulic breaker —because Chicago Pneumatic believes their customers deserve nothing less. Chicago Pneumatic is innovative, consistently adding new products to their lineup.

That innovation stems from listening to the needs of the customer. Whether it is a small modification or introducing a brand new tool, Chicago Pneumatic is a provider of innovative solutions.

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The slogan at Chicago Pn e u m at i c i s Peopl e .

Passion. Performance — and it all starts with people for a reason. Chicago Pneumatic takes great pride in their knowledgeable and friendly staff. Not only is the team well equipped to answer any product-related questions, they also provide a high level of insight for the industries that they serve. The internal team is only part of the puzzle that makes up the people of Chicago Pneumatic; When Chicago Pneumatic refers to its people, it also includes their dealer and distributor partners, rental representative groups and end-users too. Thanks to loyal Chicago Pneumatic customers and channel partners, Chicago Pneumatic is able to continue to offer the most innovative construction equipment on the market today.

The passion at Chicago Pneumatic is evident across the board from the brand to the products to the industries and associations that they serve. It is that passionate drive that continually pushes Chicago Pneumatic to make their product offerings better.

This leads right into their third pillar with performance. Performance is a direct result of creating product solutions to better suit their customers’ needs.

Much has changed in the past century, but the core principles of Chicago Pneumatic remain the same— standing by their customers with tough, durable products.

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INDUSTRY UPDATE

RECORD360 PARTNERS TO FULLY DIGITIZE THE EQUIPMENT RENTAL CHECK-IN/CHECK-OUT PROCESS Record360, the industry-leading provider of asset documentation software, announces a new partnership with GoFormz, which offers a complete business solution to eliminate paper forms and modernize how businesses work. This partnership provides a modern-day solution to rental and leasing customers, offering a fully electronic check-in/check-out process that encompasses all aspects of the rental agreement and asset documentation.

The integration of these two services aligns with increasing business demands for high-tech solutions that streamline and fully digitize asset exchange processes. GoFormz drives digital transformation by providing businesses the easiest and most complete way to digitize their paper forms and processes. This partnership removes the need for paper when capturing rental agreement information, making Record360 a completely digital rental check-in/check-out solution.

Record360 already offers rental and leasing companies the ability to decrease damage disputes and expenses with their unique video and photo asset condition review process. Expanding product offerings with GoFormz mobile forms allows Record360 customers to further digitize their forms processes and improve customer service. GoFormz offers a mobile forms and electronic document platform used by businesses of any size and industry around the globe. This partnership means that rental and leasing businesses can now enjoy a 100-percent digital rental agreement and asset documentation experience.

“Our customers have been requesting a complete solution that fully digitizes the check-in/check-out rental process, in an effort to completely do away with paper forms,” said Shane Skinner, founder and CEO of Record360. “We are excited to integrate with GoFormz and we are confident that our asset protection solution combined with GoFormz smart mobile form technology will provide customers a much-needed solution that will streamline rental processes and officially make paper rental forms a thing of the past.”

Jeff Fildey, CEO of GoFormz, added, “We are helping thousands of businesses and partners around the world digitally transform the way they work. We are thrilled to partner with an innovative company like Record360. Our joint solution will truly modernize the agreement and asset documentation workflows for rental and leasing companies.”

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ALLMAND EXPANDS Into Portable Air Compressor and Mobile Generator Markets

Air Portable Air Compressor and a full line of Maxi-Power Mobile Generators.

Allmand Bros Inc., a long-time manufacturer of high-performance portable equipment, expands its product offerings with the Maxi-Air Portable Air Compressor and a full line of Maxi-Power Mobile Generators. The Maxi-Air launches with two models, the MA185 and MA400, both providing consistent, high-pressure air volumes at low RPMs for enhanced fuel efficienc . The Maxi-Power generator line is launching with seven high-performance, easily maneuverable generators to accommodate a variety of applications ranging in power output from 25 to 150 kVa. “Allmand is focused on providing reliable, high-quality products to help our customers manage their jobsites,” said Brian Northway, Allmand product manager. “With the Maxi-Air and Maxi-Power, we’re expanding our presence in the construction, rental, oil, gas and mining markets – areas where Allmand already maintains an excellent reputation for durable, easy-to-maintain products.”

www.ForConstructionPros.com/RENTAL

3/20/17 2:32 PM

SMART NUTS SPEND A COMBINED

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ADVERTISER’S INDEX ADVERTISER

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All Access Equipment ..............................................................................43 Allen Engineering ....................................................................................99 Allmand Brothers Inc. ..........................................................................2, 77 Applied Machinery Sales..........................................................................53 Barreto Manufacturing Inc. ..................................................................7, 83 Baseplan ...........................................................................................71, 93 BKT USA, Inc. ..........................................................................................13 Briggs & Stratton .....................................................................................15 Buffalo Turbine LLC ...............................................................................105 Camso, Inc. ........................................................................................... 8-9 Chicago Pneumatic .........................................................................35, 101 CK Power ................................................................................................59 Classen Turf Care.....................................................................................33 CNH - Case Corporation ....................................................................17, 85 Curry Supply Company ............................................................................79 Cushman Commercial .......................................................................49, 89 Ditch Witch, A Charles Machine Works Company..............................95, 108 Ebac Systems ........................................................................................105 Electric Eel ..............................................................................................98 E-Z Trench ...............................................................................................51 General Pipe Cleaners .......................................................................11, 81 Ground Hog ............................................................................................61 Hercules Sealing Products ......................................................................104 Horton Inc. ..............................................................................................29

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ADVERTISER

PAGE

JCB Inc.............................................................................................. 44-45 Jenny Products, Inc ..................................................................................47 JLG ................................................................................................... 30-31 John Deere Construction Equip. ......................................................... 26-27 Kaeser Compressors ..........................................................................23, 87 Kobelco Construction Machinery ........................................................ 54-55 Kohler Company ........................................................................................5 Little Wonder ..........................................................................................65 MMD Equipment .....................................................................................37 Precision Components .............................................................................25 Rock Line Products Inc.............................................................................75 Sakai America, Inc. ..................................................................................67 Scania USA ....................................................................................... 68-69 Skyjack Inc. ....................................................................................... 38-39 Snorkel..............................................................................................57, 91 Sotcher Measurement Inc. .......................................................................74 Takeuchi Manufacturing Co..............................................................73, 107 Terex USA .........................................................................................21, 97 Trask-Decrow Machinery........................................................................104 Trojan Battery.................................................................................... 18-19 Turbo Technologies ................................................................................104 TVH Parts Co. ..........................................................................................63 Weber Machine (USA) Inc. .......................................................................74

This index is provided as a service. The publisher does not assume liability for errors or omissions.

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MARCH 2017

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3/21/17 9:15 AM

EYE ON RENTAL // B y

Dick Detmer

BY DICK DETMER

New Era Brings

EXCITEMENT & UNCERTAINTY to Rental Industry Vow to remain successful in the face of change by making bold, but strategic moves

W

hat a fabulous time to talk about the state of the rental industr y!

We’re being constantly bombarded with mega doses of news about issues that directly affect our economic well being. The country voted for major change and we certainly are experiencing it. While I don’t expect the cringing and hang-wringing over our new President’s decisions will subside any time soon, I do believe it’s wise to vow to remain successful in your rental business no matter what happens.

Looking into my crystal ball While pondering how 2017 will shape up, I see some strong themes.

Here are a few thoughts, observations and predictions: The economy has the potential to become an awesome, jet-propelled freight train. Yes, you can feel the electricity of it. Tempering the euphoria, however, is my strong sense that the new administration will make a colossal foreign policy blunder that could derail the super-prosperity train. I don’t think I’m alone in my excitement and in my concern.

Of course, many rental companies in 2016 were hesitant to do much to propel their businesses forward. They took the “wait and see” approach because let’s face it, it can be difficult to invest in much more than inventory upgrades when there are so many political and economic uncertainties.

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The bold will benefit.

Even as all of the uncertainties of 2016 and the election were being felt, a large number of my customers were making bold, but strategically sound moves to take advantage of tremendous opportunities in their market areas. I believe 2017 will prove to be an even more pivotal year characterized by significant and bold initiatives by forward-thinking independently owned and operated rental companies.

Competition will be fierce.

Remember that you are not alone in your vision of what the country’s new direction could bring. Less regulation, greater infrastructure spending, more disposable income and a number of other possible business-friendly outcomes will be noticed by your current and potential competitors as well as you. With that in mind, it’s often not wise to be overly conservative and it’s never a good idea to rest on your laurels.

Expect expansion. I believe we’ll see growth that’s significantly stronger that what’s been forecasted, particularly for progressive independently owned and operated rental companies. I predict there will be many more independents actively seeking to grow their rental companies through starting another location in a neighboring community but outside of their traditional territory.

Some rental companies have been hesitant to secure the additional space they desperately need to grow their

business and inventory. This hesitancy has been partly due to political uncertainty and a far less than business-friendly administration for the past eight years. But we’re in a new era.

Of course, always seek the advice of a rental business consultant who has worked with a significant number of rental companies before pulling the trigger on large investments.

Emphasize training. Another trend I foresee for 2017 and beyond is a greater emphasis on employee effectiveness and efficiency. The need in these areas has been great for some time but I’ve seen increased demand for this type of training - for employees and managers - due to increased competition for quality help.

Whether the world is facing extreme uncertainty or unbridled optimism, the most important objective for your rental business should be to remain positively focused on moving forward at all times. ■ Dick Detmer is a nationally recognized consultant, lecturer and writer with 35 years of experience in the equipment rental industry. In 2013, he celebrates the 25th anniversary of his business, Detmer Consulting Inc., of his column in Rental. Dick can be contacted at dick@detmerconsulting.com, (309) 781-3451 or by visiting his website www.detmerconsulting.com.

www.ForConstructionPros.com/RENTAL

3/20/17 2:33 PM

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