Rental August/September 2019

SPECIAL REPORT: ENGINES What’s next in off-road diesel exhaust regulations?

August/September 2019

Business Survival Guide 2019:

NAVIGATING YOUR WAY

TO SUCCESS

Find the latest news at

www.ForConstructionPros.com/RENTAL

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B O B C A T. C O M / R E N T T O U G H

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VOLUME 41 ISSUE 6

GH

and

AUGUST/SEPTEMBER 2019

30

This year we tackle the question of the labor shortage and ways to approach finding and keeping good help.

SPECIAL ISSUE: 2019 BUSINESS SURVIVAL GUIDE

52 CONSTRUCTION SUPPORT EQUIPMENT metamorworks/iStock/Getty Images Plus

IN EVERY ISSUE

Portable Lighting

52

Today’s plug-in light towers shine light on more than just events.

62

06 Everybody’s Business Don’t just survive, thrive!

PRODUCT ROUNDUP

08 Manager’s Digest

Light Towers

16 Market Watch

68

Rental pros share their business survival tactics.

SPECIAL REPORT

62

24 New Products 78 Industry Update

What’s next in diesel exhaust regulations?

74

90 Eye on Rental Columnist Dick Detmer urges us to beware of political changes that threaten rental businesses.

Engines

PRODUCT ROUNDUP

68

Engines

Cover Photo Credit: MicroStockHub/iStock/Getty Images Plus

www.ForConstructionPros.com/RENTAL

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VOLUME 41 ISSUE 6

CONTENTS

AUGUST/SEPTEMBER 2019

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COVER: TOC SPECIAL SECTION OR COVER STORY

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RentalWATCH Rental TOC SECTION

Designed With You in Mind

BUYERS GUIDE

Fast, Relevant Product Information

Rental and Article Title Construction TOC description no Indent. Idi dioriae It’s easier perovitatium exeratio debisto exceatem eos than ever to find the industry news Market and information you need to run your equipment discitfagu magnatio.

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LookTOC here daily for the news SECTION and information you need Article Title most. To subscribe, go to

00

www.ForConstructionPros.com/

IN EVERY ISSUE

www.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.

TOC description no Indent. Idi dioriae www.ForConstructionPros. perovitatium exeratio debisto exceatem eos com/subscribe/email.

VISIT TODAY!

www.ForConstructionPros.com/RENTAL

RENTAL/inventory features the industry’s most comprehensive guide to construction-related products and equipment. Visit ForConstructionPros. com/RENTAL and click on the New Equipment Directory for the most 00 Everybody’s up-to-date list of what today’s Business leading manufacturers have to offer.

A.

discitfagu magnatio.

00 Our Social Join TOC SECTION Media Community www.Facebook.com/ Article Title

Check out our Facebook RentalMagazine and join our Twitter TOC description no Indent. Idipage dioriae Rental@RentalMagazine feed. Leave perovitatium exeratio debisto exceatem eos a comment, post some news discitfagu magnatio. and photos, or just catch up on the latest happenings in the TOC SECTION world of Article Title equipment TOC description no Indent. Idi dioriae rental. perovitatium exeratio debisto exceatem eos discitfagu magnatio.

00

00 Manager’s Digest

NEWS FEED

00 Market Watch Propane Makes Its Way B. to a Jobsite Near You Diesel continues to be the 00 New Products predominant source of power for vehicles and equipment, C. but there are alternatives creeping into the mix.

www.ForConstructionPros.com/21072292

[VIDEO] U-Turn Rental Breaks New Ground in the Rental Industry

00 Industry Update D.

00 Eye on Rental

Leveraging lifelong experiences to start fresh in new market.

E.

www.ForConstructionPros.com/21072030

Gen

4

AUGUST/SEPTEMBER 2019

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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

Don’t Just Survive,

™

PRODUCT NEWS INSIGHT ■

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THRIVE

Changing your mindset from fear-based decisions to growth-based ideas might make all the difference Traditionally, our in order to thrive in business August/September issue – or anywhere, really - you centers on the theme of need to be fearless. Thriving business survival. With requires bold moves based that in mind, it’s our goal on courage, trust, curiosity to provide tips and ideas and enthusiasm, to name just for helping your business a few things. Quite simply, I WOULD thriving requires the opposite stay alive and well into next ARGUE year and beyond. But what of fear. if you want to do more than Sadly, so many of our THAT IN survive? Wouldn’t we all daily decisions are made ORDER TO based on reactions centered rather thrive?

If you think about it, THRIVE IN in fear, not courage or most of the obstacles that BUSINESS curiosity, for example. Some stand in the way of thriving of the most common fears for – OR boil down to one thing: many people include failure, fear. Ironically, a fear-based ANYWHERE, scarcity, disapproval… but mindset will most definitely REALLY - what if we threw all those help you survive. You’ll out the window and started YOU NEED making proactive decisions be defensive, anticipating threats, reacting to them based on a growth mindset TO BE as they come at you… the instead? This is not to say FEARLESS. “fight or flight” instinct you should start taking a lot comes to mind. We can all of foolish risks, but maybe agree fear is a handy thing an occasional calculated leap in survival. of faith is exactly what will Fear won’t help you propel your business from thrive, though. To thrive, a verb surviving to thriving. Whether it’s Webster defines as “to prosper; experimenting with a new product flourish,” requires much more niche, or opening a new branch, why not resolve to make this the than fear. Anyone who’s time to stop fearing and start raised children will tell you growing? Don’t just survive, that. But how does this translate to business? thrive!

I would argue that

■

Published by AC Business Media 201 N. Main Street, 5th Fl Fort Atkinson, WI 53538 (800) 538-5544 www.ACBusinessMedia.com

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Change of Address & Subscriptions — PO Box 3605, Northbrook, IL 60065-3605, Phone: (877) 201-3915 Fax: (847) 291-4816 • circ.rpnmag@omeda.com List Rental — Jeff Moriarty, SVP, Business & Media Solutions Infogroup, Phone: (518) 339-4511, Email: jeff.moriarty@infogroup.com Reprints — Erica Finger, efinger@ACBusinessMedia.com

AC Business Media CEO

Barry Lovette

CFO

JoAnn Breuchel

Vice President, Sales & Marketing Amy Schwandt Editorial Director

Greg Udelhofen

Published and copyrighted 2019 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the U.S. to rental centers, equipment distributors, and other businesses with rental departments. To subscribe please visit www.ForConstructionPros.com. Publisher reserves the right to reject nonqualified subscribers.

One year subscriptions for nonqualified individuals: U.S. $35.00; Canada and Mexico $60.00; and $85.00 all other countries (payable in U.S. funds, drawn on U.S. bank). Single issues available (prepaid only) $10.00 each.

Rental (ISSN 1067-0904, USPS 686-370) is published eight times per year: January/February, March, April, May, June/July, August/September, October/November and December by AC Business Media, 201 N. Main Street, 5th Fl., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI and additional entry offices. POSTMASTER: Please send change of address to Rental, PO Box 3605, Northbrook, IL 60065-3605.

Printed in the USA. Vol. 41, Issue 6, August/September 2019

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6

AUGUST/SEPTEMBER 2019

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CHOOSE HYDRAULIC, CHOOSE DEPENDABILITY

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MANAGER’S DIGEST

Construction Equipment Among Top Five MostFinanced Equipment in 2018 According to the 2019 Survey of Equipment Finance Activity (SEFA) released by the Equipment Leasing and Finance Association (ELFA), new business volume in the equipment finance industry grew 4.4% in 2018, lower than the 6.9% achieved in 2017, but exceeding real GDP growth (+2.9%) for the year. The increase marked the ninth consecutive year that businesses increased their spending on capital equipment.

The SEFA report covers key statistical, financial and operations information for the $1 trillion equipment finance industry based on a comprehensive survey of 126 ELFA member companies.

The top five mostfinanced types of equipment in 2018 were IT and related technology services, transportation, construction, agricultural and office machines. The end-user industries representing the largest share of new business volume were services, wholesale/retail, transportation, agriculture and industrial and manufacturing.

In addition to the survey findings, ELFA released a companion report, the 2019 Small-Ticket Survey of Equipment Finance Activity, plus indicated plans to roll out new offerings.

“The equipment finance industry saw positive growth overall in 2018, as reported in the 2019 Survey

of Equipment Finance Activity,” said ELFA President and CEO Ralph Petta in a press release following the report’s publication. “We are pleased to share this important industry data and we are excited to roll out new SEFA offerings this year. In addition to the traditional SEFA report, the Interactive SEFA Dashboard and the personalized MySEFA tool will allow users to crunch the numbers in new ways and make better, more data-driven decisions.”

For more information, visit www.forconstructionpros.com/ 21077250

COMMERCE DEPARTMENT REPORT

MAY U.S. CONSTRUCTION SPENDING SLIPS ON NONRESIDENTIAL’S FIRST 2019 DECLINE U.S. construction spending unexpectedly fell in May as investment in private construction projects dropped to its lowest level since January 2017.

The Commerce Department’s monthly estimates of the value of construction put in place showed May construction spending declined 0.8%, the biggest drop since November. Data for April was revised to show construction outlays rising 0.4% instead of being unchanged as previously.

CNBC reports that economists’ consensus forecast construction spending would rise 0.1% in May. The total value of construction since the first of 2019 is 0.3% below the first five months of 2018.

Residential construction – the biggest construction spending segment, nearly five times the size of the largest nonresidential segment – once again led the decline, falling 0.6%. May was the fifth consecutive month of falling residential investment, and the tenth residential-spending decline in 12 months. Year to date, spending on residential construction has fallen 8.2%.

Multifamily residential construction spending stood out with a 1.9% rise in May, its third consecutive monthly gain. Apartment and condo building continues to surpass expectations and is up 8.9% year-to-date.

For more information, visit www.forconstructionpros.com/21075980

8

AUGUST/SEPTEMBER 2019

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www.ForConstructionPros.com/RENTAL

7/30/19 2:21 PM

Trump Proposes Industry-Recognized Apprenticeship Program The unemployment rate has dropped to 3.6%, the lowest rate since 1969, and last year we saw the highest share of people entering our labor force from the sidelines since we started tracking in the early 1990s.

Through the White House’s Pledge to America’s Workers, job creators around the nation have committed to nearly 10 million training, upskilling or reskilling opportunities for American students and workers.

Our thriving job market brings with it new challenges, however. Our economy has 7.4 million open jobs, and for 14 months in a row it has had more job openings than job seekers. As businesses look to fill these jobs, we have an obligation to look for new ways to empower America’s workforce with the in-demand skills that employers need.

Our nation needs to empower more industries and professions to embrace apprenticeship opportunities.

That is why the Trump administration is proposing a second apprenticeship model: the Industry-Recognized Apprenticeship. The Industry-Recognized Apprenticeship program would stand alongside the Labor Department’s existing registered apprenticeships, which have found success in the building trades. This program would enable industries to come together through associations, consortia, nonprofits and other mechanisms to offer skills education to American students and workers.

Imagine if an employer joined forces with others in its industry to develop a cashier-to-store-manager program that would empower employees to have not only a job but a career — one that would allow employees to collect paychecks while at the same time learning the skills needed to climb the career ladder.

By the end of June, the Department of Labor will award $183 million to consortia of businesses and educational institutions to support Industry-Recognized Apprenticeship programs in sectors where apprenticeships are not widespread, such as technology, health care and advanced manufacturing. The department will also continue to fund the apprenticeship course Congress has specifically appropriated for the program.

www.ForConstructionPros.com/RENTAL

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SURVEY:

AMERICANS SUPPORT HIGHER TAXES FOR INFRASTRUCTURE A survey released June 21 by the Mineta Transportation Institute (MTI) found that a majority of Americans would support higher taxes for transportation, provided the money is used for such purposes – particularly to maintain roads.

Of 2,723 respondents nationwide, 92 percent said maintenance was a priority – the largest percentage in the nationwide survey. Large majorities also supported both road and publictransit related options, from building and widening local streets, roads, and highways, to adding more frequent transit service and subsidizing fares for low-income riders. The two options with the lowest support both related to encouraging the use of electric vehicles.

Since 2010, the annual survey has posed the same five options for increasing fuel taxes. Support has risen every year, with an increase of 13 percentage points or more for each tax option.

“Support for raising the gas tax is largely dependent on how the revenue will be spent,” says Dr. Asha Weinstein Agrawal, director of the Mineta Transportation Institute’s National Transportation Finance Center and one of the study’s authors. “Seventy-five percent of respondents supported a 10-cent increase in the gas tax if the revenue raised is dedicated to maintenance projects, but only 40 percent support the same increase if the money is used more generally to maintain and improve the transportation system.”

AUGUST/SEPTEMBER 2019

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MANAGER’S DIGEST Investor Home Buying

SETS NEW RECORDS 10 Years After Recession In 2018, the share of U.S. home sales bought by investors reached its highest level – 11.3% – in 20 years.

In releasing the data, Corelogic says the increase isn’t from big institutional buyers, but rather from smaller investors just getting into the game. What’s more, these investors appear to be focusing in the starter-home tier, giving first-time homebuyers a run for their money while also chasing homes in markets with relatively high rents (Corelogic lists markets with the most and least investor activity here).

The share of starter homes (defined as priced in the bottom third of the local market) purchased by investors peaked at over one-in-five homes in the past two years, with a rate of 20.3% in both 2017 and 2018. These rates are 2-3 times the investor purchasing rates of move-up (middle tier) and highend (upper tier) homes that also peaked in 2018 at 7.8% and 6.3%, respectively.

In the aftermath of the Great Recession investors bought at least two million homes, and almost certainly far more than that, the New York Times reports. Large-scale institutional investors bought tens of thousands of homes for less than they cost to build.

The flood of capital seemed like a one-time opportunity arising from the collapse of residential real estate prices. But investors never stopped buying.

In the most frenzied markets, investors bought close to half of the most affordable homes sold last year, and as much as a quarter of all single-family homes.

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MAY WEAKNESS IN US HOUSING CONSTRUCTION HIDES IMPROVING CONDITIONS

Total housing starts dropped 0.9% during May, more than doubling the slide predicted by economists’ consensus forecast. Monthly housing-construction estimates by the U.S. Commerce Department show a 10.9% rise in volatile multifamily starts was not enough to offset a 6.4% decline in single-family units.

The report follows a drop in U.S. home-builder confidence in June, as builders reported concerns over rising construction costs and trade issues.

Total starts in 2019 are 5.3% below the same period of 2018. But residential building continues to be fairly solid.

The 1.269 millionunit pace hit in May is slightly above the 1.222 million-unit pace averaged over the past six months.

Starts for both March and April also revised higher, and now show 6.8% and 4.4% monthly gains, respectively.

A 0.3% rise in total building permits during May also provides some cause for optimism. Single-family permits rose 3.7%, which ends a five-month streak of monthly declines. Multifamily permits declined 5.0%, however the overall number of new permits remains elevated.

The gain in permits along with more favorable buying conditions points to gradually improving activity over the summer. But lower mortgage rates are not expected to fuel a surge in residential activity.

“We believe even the latest drop in mortgage rates, which has seen rates on conventional 30-year mortgages fall below 4%, will not be enough to overcome the rising anxiety among potential homebuyers who sense that lingering trade tensions are putting economic growth at risk,” according to Wells Fargo Economics’ analysis of the monthly Commerce Department housing estimates.

“We are still looking for modest gains in home sales and housing starts this year.

But rather than igniting a resurgence in home buying, lower mortgage rates will merely cushion the blow from slower global economic growth.

‘We now expect the Federal Reserve to cut interest rates twice this year, most likely in July and October.’ Wells Fargo “With growth slowing, interest rates have fallen substantially over the past month and the yield curve has fully inverted, with both the yield on the 10-Year and 2-Year Treasury Note falling below the federal funds rate. We now expect the Federal Reserve to cut interest rates twice this year, most likely in July and October. The interest rate for a 30-year conventional mortgage has fallen below 4% and is more or less expected to remain there through the end of next year.”

The South was the lone region to register a monthly gain on a seasonally adjusted basis. Wet weather so far this year, which has included floods in the Midwest and heavy rain in the South, may be skewing the seasonal adjustment process.

For more information, visit www.forconstructionpros.com/21073875

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7/30/19 2:21 PM

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MANAGER’S DIGEST INDUSTRY HAPPENINGS

UNIQUE EVENT REVEALS HOW TO BEAT WORKER AND MACHINE DOWNTIME In a unique industry event, Uptake and Trackunit recently held Eliminate Downtime at Uptake’s headquarters in Chicago. More than 40 construction industry leaders participated in the event to share stories, challenges, ideas, best-practices and experiences in an effort to eliminate downtime industry-wide by 2025.

Those attending were there to discuss solutions to the critical challenge of low productivity, missed deadlines and cost overruns. Presenters focused on innovation and technology to transform business models in the journey to eliminate downtime. While they reinforced the concept of sharing ideas and solutions with the industry, they also stressed individual training, transparency within the workplace (open communication and buy-in from the top down) and embracing data and technology as assets rather than unknown elements.

Organizations such as Komatsu, Admar Supply, United Rentals, Sunbelt, CAT, Bechtel, Messer Construction, Uptake and Trackunit contributed with presentations, workshops and a panel quickfire session. Presenters included: ■ Soeren Brogaard Jensen, Trackunit ■ Jay Allardyce – Uptake ■ Evan Brumm – Admar Supply ■ Burt Bracegirdle – CAT Entertainment Services ■ Don Rosing – Messer Construction Debates proved to be wide ranging, with discussions covering such topics as the voluntary Aviation Safety Reporting System (ASRS), to the inefficient manual rental systems that continue to be pervasive across the U.S. According to the program organizers, the presentations illustrated the need for collaboration and open interoperable systems, with the benefits to be gained in site safety and project productivity highlighted in numerous examples.

Jeff Cohen, president, Trackunit Inc, noted, “There are many examples of how data is transforming other industries; increasing productivity, safety and profitability. The presentations at the Eliminate Downtime event in Chicago demonstrated how our industry is now linking people, machines and data to create incredible solutions to costly problems in the construction market.”

For more information, visit www.forconstructionpros.com/21076028

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AUGUST/SEPTEMBER 2019

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HOME DEPOT WILL INVEST TO ACCELERATE TOOL-RENTAL GROWTH Home Depot’s tool rental business soared with professionals in recent years, but executives say there’s room for further growth.

“We know 90% of pros rent tools, but several years ago, only about one out of 10 pros rented from us,” Craig Menear, Home Depot’s chief executive, said on the earnings call, according to a FactSet transcript.

“Today, that number has improved to one out of four, yet there remains opportunity for further growth as we continue to invest in our tool rental experience.”

Home Depot said it has “the largest number of tool rental centers in North America” with about 1,100 locations in its stores.

“We know that when Pros start renting tools from us, they see a significant uptick in their overall Home Depot spend,” said Ted Decker, Home Depot executive vice president of merchandising.

“As part of our multi-year investment plan we are investing in more space, more tools and better technology to improve the customer experience and continue to grow this differentiated service offering.”

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C Y

INDUSTRY

INDUSTRY MARKET MARKET WATCH WATCH

By Rod Dickens, contributing editor

Rental Pros Share Survival Strategies

Savvy businesses make the most out of their markets

OREGON: RETAIL EVENS OUT CASH FLOW When Dan Domey, general manager for Eastern Oregon Rental and Sales in Baker City, OR, was asked what the key to survival in his market is, he answered with one word, “retail.” “A typical rental store probably generates 90 percent of its revenue from rental sales and the other 10 percent from retail sales.

Our stores are about 50/50. Borrowing a cliché, the mix makes us a one-stop shop and helps to even out our cash flow during the slower rental seasons.”

Eastern Oregon Rental and Sales has three rental locations in eastern Oregon and one retail store in neighboring Washington. On the rental side,

the stores rent everything from large earthmoving equipment like excavators and dozers, to sewer snakes and paint sprayers. Said Domey, “We rent to DIYers and other homeowners, nearly every size contractor, and even the commercial market.” The stores also carry a sizeable inventory of party and events goods.

On the retail side, he divides the store’s inventory into five categories, concrete tools and accessories, pipes and accessories, hardscape materials, stucco, and tools like Hilti and Husqvarna for the general contractor.

Another word the general manager might use to help explain survival strategies is “diversity.”

“…STORES THAT OVER PROMISE AND UNDER DELIVER HAVE A LOWER SURVIVAL RATE THAN STORES THAT RENT AND SELL TOP QUALITY EQUIPMENT, KEEP IT MAINTAINED, AND EXCEL IN PROVIDING EXCELLENT SERVICE.” 16

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“Our stores are not located in large metropolitan areas where contractors and subcontractors would likely be constructing huge housing developments and dealing with stores that specialize in renting dozers, excavators, aerial lifts, and other equipment used primarily in the housing market.

When our phones ring, a customer might very well ask about renting a large piece of iron. Or he or she may be inquiring about a pressure washer, hand grinder, or even a barbeque grill or PA system.”

Still another word is “service,” he added. “It probably goes without saying, but stores that over promise and under deliver have a lower survival rate than stores that rent and sell top quality equipment, keep it maintained, and excel in providing excellent service.”

Domey said the latter, along with strong retail sales and a diverse customer mix, will help Eastern Oregon Rental and Sales take advantage of economic trends that look to remain very favorable for the next two or three years.

www.ForConstructionPros.com/RENTAL

7/30/19 2:29 PM

©

CONNECT YOUR FLEET GTH-5519

New York City

Manage Your Fleet X

Genie GTH-5519 Genie GTH-5519

Last Communication: Feb 14th 1:34 PM

227 hr

32 %

12.05 V

Hour Meter

Fuel Level

Battery

LEARN MORE AT WWW.GENIELIFT.COM/LIFT-CONNECT © 2019 Terex Corporation. Terex, Genie and Lift Connect are trademarks of Terex Corporation or its subsidiaries.

© 2019 Terex Corporation. Terex, Genie and Lift Connect are trademarks of Terex Corporation or its subsidiaries.

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INDUSTRY

MARKET WATCH

OEM recommendations. “The last thing you, or more importantly your customers, want is to get equipment home or in the field and have it quit MICHIGAN: after 20 minutes of operation.” As he EQUIPMENT RELIABILITY put it, having reliable equipment is a TOPS NEW BUSINESS PLAN key component to providing excelWhen Mike Jennings purchased lent customer service, one that also a long-time rentincludes being friendly to cusal store three years tomers and educating them on ago, he put togethequipment operation. er a new business plan. The D.I.Y. Equipment Rental owner of D.I.Y. Equipment and Storage has a cusRental and Storage in Marshall, MI, tomer mix of 65 percent looked at ways to improve his equiphomeowners and 35 perment lineup and store, advertise, cent smaller contractors. reduce costs, and, of One of Jenning’s course, increase profgoals is to modify “ONE OF THE its. Three of the plan’s his business plan to FIRST THINGS I four elements — bring in more conimprovements, costs, tractors. Currently, IMPLEMENTED and profits — had a he noted his store is common theme, to very busy on weekWAS TO CLEAN focus on equipment ends with DIYers, EQUIPMENT reliability. but more unpredictIt was a natural able during the week.

EVERY TIME IT fit for Jennings who Bringing a few more WAS RETURNED.“ contractors would had worked 15 years as a maintenance help grow the busitechnician and later ness while evening oversaw a large maintenance operaout the work week. tion. “When asked about surviving CONNECTICUT: in the rental business, there are so CONSISTENCY PAYS OFF many areas that can make a differDaren Rokicki has been in ence, but from my perspective having the industry for 11 years. When reliable equipment is second to none,” asked what his secret to survival is, said Jennings. “One of the first things the owner of Arnold’s Equipment I implemented was to clean equipRental in South Windsor, CT said, ment every time it was returned. “being consistent.”

When you clean equipment you can He commented, “I believe most find something that needs to be fixed business failures fall directly on the immediately or spot a potential issue owner’s shoulders instead of being like a worn belt or loose bolt. blamed on the economy or a compet“I know some rental stores require itor down the street. You need a solid customers to clean equipment before business plan and the wherewithal to returning it. We don’t. Even if a cusfollow it in good and bad times alike.” tomer cleans off the dirt and grime He noted that some owners may before bringing it back, we give it get a little complacent during the another cleaning.” good times and forget to be consisJennings noted he also develtent with their marketing, making the oped a preventive maintenance plan extra sales efforts and phone calls, for his computer, one that follows

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“YOU NEED A SOLID BUSINESS PLAN AND THE WHEREWITHAL TO FOLLOW IT IN GOOD AND BAD TIMES ALIKE.” keeping up on their inventory, providing good customer service and so forth. They can get away with being inconsistent with the above during good times, but it will ultimately hurt their sales during a more difficult period.

“Pricing is another area where owners need to be consistent,” added Rokicki. “You have to be competitive, but not to the extent that discounting becomes a standard practice. Save the discounts for your best customers. You don’t have to give equipment away to grow your business.”

Area contractors comprise a large portion of Arnold’s customers mix, as evidenced by an inventory of dozers, scissor and boom lifts, excavators and mini excavators, skid steer and track loaders, along with other heavy-duty rental equipment. To date, Arnold’s sales have nearly doubled over what they were last year at this time, and last year was a good year, Rokicki pointed out. He attributes the growth to a strong housing market, an overall healthy economy, and, yes, being consistent.

NEW YORK: A GOOD STAFF ALLOWS GOOD COMPANIES TO STAY GOOD Product mix, staff, customer service and having a special niche all play a large role for surviving a downturn. “But you can’t sell yourself out of bad times, product mix can only do so much, and if you don’t have

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7/30/19 2:29 PM

RPN0819_

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INDUSTRY

MARKET WATCH

“FOR BIG TICKET ITEMS, I’VE NEVER SHIED AWAY FROM BUYING GOOD USED EQUIPMENT.”

excellent service you’re already out of business,” said Dave Aylward, general can anticipate the ebbs and flows rental and used manager for Liftech and make the changes both require.

Equipment Companies, located in Whether it’s a downturn or a boom, Syracuse, NY. and one usually follows the other, “It is the responsibility of the forward-looking owners, a solid manmanagement team to recognize the agement team, and an excellent senior approach of bad times like those in staff can make all the difference.”

2008. I have been with companies that Liftech Companies is a large had the intuition to see it coming and, industrial, construction, and with others that did not react until well ag dealership with seven locaafter the dive. Both scenarios shared a tions throughout the Northeast. common thread — staff, one having a Headquartered in Syracuse, the comgood staff the other, not so good. pany employs 160 people and rents a “Having good employees allows wide variety of forklifts, boom lifts, good companies to stay good. A and scissor lifts, along with other good staff helps companies adjust to construction-related equipment. market fluctuations and makes downWASHINGTON: times more manageable. One case in BUSINESS SURVIVAL point was where I worked previously.

CAN BE A CATCH 22 The owners saw the 2008 downturn Jeff Lambert, owner coming and hired a general managof Diamond Rentals Inc., er who was very qualified to handle in Oak Harbor, WA has been the decline in sales and make the in business 28 years and knows somerequired adjustments. thing about surviving the ups and “He surrounded himself with stadowns of the marketplace. “I guess ble people who did not overreact to you can call me frugal,” he remarked. the situation and who understood how “For big ticket items, I’ve never shied to motivate people in a down time. away from buying good used equipWhen 2010 came along, we were ready ment.” The strategy, he added, allows for the boom, thanks to systems we him to be a bit more competitive and had in place and the other early moves insulates his two stores from paythat helped us avoid the mistakes other ing the higher cost for new Tier 4 companies had made. Ironically, the equipment. general managHis conservaer saw the writing “HAVING GOOD tive approach to on the wall and business expands left knowing his EMPLOYEES ALLOWS to other areas methods would of his inventonot work in a bull GOOD COMPANIES ry where, in his market.

TO STAY GOOD.” words, he often “By being propractices a “wait active, the owners and see” attitude saw the downturn before adding a new item to the line. coming, prepared their management “I did something a bit out of the norm team accordingly, and gave them the yesterday when a customer wanttools to make the required adjusted a 26-ft narrow scissor lift that I ments. A solid management team

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didn’t have. I purchased a new one last night and had it for him this morning.

Again, that’s unusual for us. I usually will wait until something is requested three or more times a month before considering adding it to our inventory.”

He admitted this approach can be a Catch 22, causing him to miss out on opportunities, but it has paid off in the long run. What has also helped is his company’s high utilization rate, something he attributes in part to working closely with longtime customers.

Oak Harbor is located on Whidbey Island about two hours north of Seattle. Life on the island is a bit different, allowing Lambert and his staff to develop a closer working relationship with customers than possible in other more metropolitan areas.

“If customers have a project forthcoming, ideally we like to work with them to understand their needs and ensure we have the right equipment for them,” he noted. “Of course, this doesn’t happen all the time, but it always helps both of us when we know how they plan to use a piece of equipment. It’s not unusual for me to drive by a property ahead of time to ensure the equipment they want to rent is right for the job.”

None of this, being frugal or having a high utilization rate, is possible without have the right staff in place, Lambert emphasized. Between the Oak Harbor location and a store in Anacortes 20 miles north, Diamond Rentals employees 15 people. “We not only have a great staff, but people with the right mix who enjoy working together. It makes all the difference in both good and more difficult times.”

www.ForConstructionPros.com/RENTAL

7/30/19 2:29 PM

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VALUE TESTIMONIAL Advertisement

WESTERN GLOBAL:

INCREASING RENTAL PROFIT$ Western Global has set the standard in rental fuel storage. With many rental-ready tanks, including the TransCube, Western Global improves fuel handling across many industries.

Construction, industrial and event markets are just the beginning. Their minimal maintenance, high utilization and fast ROI provide rental companies an opportunity to unlock additional rental revenue.

United Rentals in Montcon, New Brunswick, experienced Western Global’s revenue-boosting potential firsthand. United Rentals customers frequently rent Frost Fighters and other ground-heating devices for winter operations. By adding fuel tanks to the menu, the rental company has seen an increase in profits from renting out more heaters because of the added fuel tanks.

“Frost Fighters are great machines and are in high demand, but they have a small holding tank,” said Denis Carrier, United Rentals general manager. “A 400,000 BTU heating unit will only last 10 hours on its internal tank, but with a TransCube, the customer can operate the machine for three days.”

The TransCube is available in capacities ranging from 132 U.S. gallons (500 liters) to 1,242 U.S. gallons (4,701 liters) and was designed and perfected with the rental industry in mind. The tanks are transportable, environmentally friendly and double-walled.

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“Customers love the convenience of the TransCube,” Carrier said.

“They’re easy to move around, with forklift pockets and lifting brackets on top.

Customers are able to save money by buying fuel in bulk, and avoid safety issues that might come with outdated fuel tanks.”

In addition to the TransCube, Western Global offers a wide range of solutions for the safe transportation and storage of fuel, diesel exhaust fluid, lubricants and more.

For more information on adding fuel tanks to your rental menu, visit www.western-global.com.

www.ForConstructionPros.com/RENTAL

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FUEL MORE PROFITS

In the construction sector, over 95% of equipment relies on diesel fuel. Adding fuel tanks to your rental fleet is a natural complement and an easy way to increase profits.

Contact us today to start fueling your bottom line.

EASY UPSELL OPPORTUNITY PROVEN RETURN ON INVESTMENT RENTAL READY INNOVATIVE FUEL & FLUID STORAGE SOLUTIONS | WESTERN-GLOBAL.COM OR CALL 866.814.2470 RPN0819_16-23_MarketWatch_JAL.indd 23

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NEW PRODUCTS

Auger Torque Variable Mulcher This line of variable mulcher attachments enables excavators and skid-steer loaders to tackle overgrown ditches, low-level vegetation or whole tree removal.

• Working widths of 40 or 60 in.

• Provides capability of changing the whole tooth drum instead of individual teeth • Hinged cover helps to contain debris and allows easy access to the tooth drum • Robust motor and gearbox conceal gears and bearings to prevent dust and dirt ingress • Low-profile design for enhanced visibility www.forconstructionpros.com/21070419

 Bobcat UV34 and UV34XL

Diesel Utility Vehicles

The UV34 has seating for three and provides a 1,900-lb. total vehicle rated capacity (payload), while the extended UV34XL has room for six and is rated at 2,075 lbs.

• Both models are powered by 23.5-hp engines and feature a new chassis and enhanced suspension system • Tow rating of 2,500 lbs.

• Cargo box load capacity of 1,250 lbs.

• Maximum travel speeds of 35 mph • Large, rugged cargo box can be emptied manually or with an optional powered cargo box lift www.forconstructionpros.com/21070076

 JLG Material Racks for Large, Rough-TerrainScissor Lifts

JLG’s material racks for Large Rought Terrain (LRT) and Rough Terrain (RT) Scissor Lifts provide safe and efficient transfer of sizable materials on the jobsite. The racks include fixed deck footers that allow the extension deck to expand and retract.

• Support up to 860 lb. of material with two operators in the platform • Nylon straps • Foldable cradle accommodates variety of building supplies • Extendable arms for loading www.forconstructionpros.com/21075583

 ASV VT-70 High Output Posi-Track Loader The mid-frame, vertical lift VT-70 High Output Posi-Track loader provides 207 ft.-lbs. of torque, which is transferred to the internal drive sprockets via the drive motor.

• Internal rollers reduce friction loss in the undercarriage, resulting in maximum power being transferred to the track, regardless of drive spee • Unit is powered by a 74.3-hp Deutz 2.2-liter, turbocharged, Tier 4 Final engine with DOC-only aftertreatment • Rated operating capacity of 2,328 lbs., tipping load of 6,650 lbs. and speeds up to 11 mph www.forconstructionpros.com/21071028

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Husqvarna LP 9505 Trench Compactor Husqvarna LP 9505 also features remote control, with a display that sends alerts to the operator when something needs to be checked. The remote control uses radio technology, which enables the operator to choose the best position to stand, providing better ergonomics and safer working conditions.

• Wide drums and low center of gravity deliver excellent stability to increase safety • Servicing is quick and easy with all service points clearly marked and easily accessible under the protective hoods • Single lifting point with a large lifting eye • Articulation joint is secured with a foldable transport lock • 7.9 gal (30 liter) fuel tank allows for 8.6 hours of uninterrupted work

 Snorkel S2255RT and S2755RT Rough-Terrain Scissor Lifts

These narrow compact scissor lifts are suited for working in confined spaces with rough terrain or uneven ground conditions • 5,313-lb. S2255RT has a maximum working height of 27 ft. 3 in. and a lift capacity of 926 lbs.

• 6,062-lb. S2755RT delivers a maximum working height of 32 ft. 4 in. and a platform capacity of 661 lbs.

• Filters, hydraulic hoses and other components are clearly marked with article numbers to facilitate the ordering of spare parts • On-board battery station and storage compartment is lockable and integrated into the hood, providing storage for the remote and on-board charging of the second battery • Connect or charge accessories with the 12-volt power outlet

• Both models have a chassis that is just 4 ft. 9 in. wide

• High operating weight enables efficient compaction without vibration, from the initial static passes all the way to the finish

• Standard large roll-out deck extension, non-marking tires, automatic self-leveling stabilizers, an oscillating axle and powerful four-wheel drive

• Fuel-efficient Kubota diesel engine is Tier 4 Final compliant and provides class-leading power, while the articulated steering allows the compactor to turn corners without digging up soil

• Kubota diesel engine is standard with an available bi-energy power source that provides the option to run the lift on either the diesel engine or on 24V battery power

• Extra high and wide drum pads are designed to provide traction in wet or dry cohesive soils www.forconstructionpros.com/21072844

www.forconstructionpros.com/21072471

 MEC Leak Containment System (LCS) for Scissor Lifts MEC Aerial Work Platforms continues its history of innovation with the announcement of the patent-pending Leak Containment System (LCS). With a system of trays integrated into MEC slab scissor lifts to contain leaks, LCS delivers a better solution to operating machines on surfaces that require protection.

• LCS is integrated within the unit to avoid interference with critical machine functions including deployment of the pothole protection system, static strap utility, and front wheel operation • With LCS incorporated inside the machine, there’s unrestricted access to the emergency stop button, emergency lowering functions and the base controls • Integrated trays are protected from damage due to jobsite debris, forklift handling and weather elements that can compromise leak containment • LCS was developed for easy installation and leak detection through its sleek design with pre-cut absorbent pads for quick replacement www.forconstructionpros.com/21075846

www.ForConstructionPros.com/RENTAL

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CB Hammers are available for excavators, backhoes and skid steers ranging from 0.8 to 55 tons.

• Compact, lightweight range for compact excavators and skid steers includes a unique valve system and plumbing design that provide power and efficiency while requiring less oil flow

 General Pipe Cleaners Mini-Rooter The Mini-Rooter power drain cleaning machine from General Pipe Cleaners offers plenty of clog-busting power and is easy to transport, maintain and use for clearing drains from rooftop to basement, including kitchen, bath and laundry lines.

• Carries 50 ft. of 1/2-in. of Flexicore cable for clearing clogs in 2-, 3- and most 4-in. drain lines • Weighs just 60 lbs.

• Optional J-Drum with 50 ft. of 1/4- or 5/16-in. cables handles smaller 1-1/4- to 2-in. drain lines • 1/3-hp electric motor features a momentary contact reverse switch to protect the cables from operator abuse • Quick-release open-cage drum permits cable switching and cleaning in seconds, with minimal mess and downtime between turns • Snaps to an optional dolly for easy moving and maneuvering

• Medium range for backhoes and excavators offers power and versatility for working with a wide range of operating pressures and oil flows • Heavy-duty range for excavators beyond 20 tons features a fully box framed with damping materials to reduce noise and recoils to the carrier, and comes pre-installed with an auto grease system www.forconstructionpros.com/21070427

• Flexicore cable offers kinking resistance and strength with the right amount of flexibility

NEW PRODUCTS

 Rockwater CB Hydraulic Breakers

• Safety slip clutch for cable protection • Pneumatic foot pedal for hands-free cable control www.forconstructionpros.com/21077545

EDCO TS-8 Electric Floor Stripper EDCO’s TS-8 electric floor stripper removes glued down floor coverings from concrete and wood surfaces. It has an oscillating blade drive system that slices under flooring material making removal quick and easy.

• Push electric floor stripper has two working positions and a reinforced head assembly for increased production • Remove up to 200 sq. ft. per hour of vinyl or other related soft material (amounts and time will vary based on material and adhesion) • Folding handle for easy transport and storage • Sharktooth wrench for easy blade changes • Heavy-duty steel material deflector shield • Multiple position hand held assembly • Heavy-duty flexible rubber isolators • Belt-driven oscillating blade system provides 1,850 hits per minute • Quick release pin angle adjustment • 7-gauge steel welded construction • Pinch blade system accepts floor stripper blades of any make and size www.forconstructionpros.com/21075901

www.ForConstructionPros.com/RENTAL

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VALUE TESTIMONIAL Advertisement

VARIABLE MULCHERS FROM AUGER TORQUE Are you tired of spending a fortune for a mulching attachment when you only use it occasionally? Then we’ve got a solution for you! Whether you’re tackling overgrown ditches, low level vegetation or whole tree removal, Auger Torque’s variable mulcher offers the ideal solution with perfect results.

Suitable for excavators and skid steer loaders, the variable mulcher provides working widths of 40 or 60 inches and has the unique feature of being able to change the whole drum instead of individual teeth, saving you a LOT of time in the process.

The 40 inch model is perfect for smaller skid steers with hydraulic flow as low as 15.8 gpm while the larger 60 inch unit allows you to process trees up to 10 inches in diameter and can accept up to 25 gpm flow. Both can accommodate machines with higher flows thanks to an internal limiter valve.

Features Include: ■ Working widths of 40 or 60 inches ■ Suitable for machines with hydraulic oil flow of 15.8 gpm or higher ■ Capable of cutting and mulching trees up to 10 inches in diameter ■ Replaceable toothed cutting drum ■ Heavy duty steel construction ■ Hoses included ■ In-stock ■ Competitively priced ■ 2-Year Standard Warranty ■ Hinged cover helping to contain debris and allowing easy access to the tooth drum ■ Low-profile design for ultimate visibility

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We par qua tim Tha

The variable mulcher is part of the Auger Torque landscaping range of attachments including stump planers, log splitters, hedge trimmers, sweeper brooms and more.

At Auger Torque we do things a bit differently – which is a good thing. When you partner with us, you’ll get exceptional quality products at competitive prices delivered on time and backed by an industry leading warranty.

To start your Auger Torque experience and learn more visit augertorqueusa.com.

E A T S M H M S

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WORLD CLASS ATTACHMENTS Experience the Auger Torque Difference We believe different is a good thing. When you partner with Auger Torque, you get exceptional quality products at competitive prices delivered on time and backed by an industry leading warranty.

That’s the Auger Torque difference.

EARTH DRILLS AUGER BITS TRENCHERS STUMP PLANERS MULCHERS HEDGE TRIMMERS MIXER BOWLS SCREW PILE TORQUE HEADS augertorqueusa.com Auger Torque USA | 2640 Jason Industrial Pkwy | Winston, GA | 30187 844-287-6300 | sales@augertorqueusa.com RPN0819_24-29_NewProd_JAL.indd 29

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BUSINESS SURVIVAL GUIDE 2019 //

B y A l e x a n d e r S c h u e s s l e r, P h . D, f o u n d e r o f S m a r t E q u i p I n c .

WHY TECHNOLOGY INNOVATION IS CRITICAL in Countering Service Labor Shortage

Technicians remain hard to come by, but new systems have allowed them to become three times as productive as they were 20 years ago

D

uring the early 2000s, I participated in a study across national rental companies to analyze how much time on any given day a service technician spent servicing equipment. We tabulated the number of work orders being generated by technicians across a company’s locations, and the time logged for each repair.

We correlated these numbers with the number of parts requests from company-internal stock, as well as the number of orders being placed from outside sources. To really understand the surrounding service workflow, we followed technicians around with clipboards and stopwatches to see what they were doing.

The final results to us were shocking: On average, the amount of time these valuable and very capable employees spent performing service and repairs – or their “wrench time” – was less than 50%. How could this be? And what were they doing the rest of the time?

Well, a wide variety of things.

Prior to working on the machine, they were locating the relevant service information to determine the repair that needed to be performed from manufacturers, dealers, and from their internal service departments. They consulted hundreds of books or CDs – either of which were often missing or outdated – or websites, which were organized differently for each equipment brand, all requiring hundreds of different user names and passwords.

After identifying parts, they checked whether they were in stock anywhere in the company, or whether they had to be ordered. If an order was required, technicians had to request permission and identify the right source, following both supplier rules for different equipment types – whether to order from a dealer or directly from the OEM – as well as company rules, as to when to utilize alternate suppliers.

metamorworks/iStock/Getty Images Plus

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Technicians also needed to know specialization among employees required to spend a lot of their time equipment service history and deterresponsible for “direct” spend (parts performing laborious, low-skill mine whether it was still under and equipment) on the one hand, vertasks. The resulting cost pressure on sus “indirect” spend (consumables, warranty, and what the warranty subcompany profitability was further stationary, retail items) on the other, mission rules were, as they varied worsened by an accompanying reducso service technicians often ended up widely across suppliers. Alongside, tion in revenue: if a repair job took purchasing a lot of unrelated items, they needed to judge how to prilonger to complete, this meant equipfurther cutting into valuable repair oritize a particular job over other ment was unavailable for rental. time. repairs, dependFinally, the shorting on current WE MAY HAVE A HARD TIME HIRING age of service and customer demand for SERVICE TECHNICIANS, BUT WE ALSO parts labor personnel equipment.

By the time we BENEFIT FROM SYSTEMS WHICH MAKE THEM is a global problem.

In certain parts of were done underMORE PRODUCTIVE THAN EVER BEFORE. the world, this trend standing the is further worsened extraneous demands As we subsequently learned, these through structural labor market of these service technicians, we marchallenges for national rental compachanges. Equipment rental companies veled at the fact they could still nies proved to be even worse for in Singapore, for example, have tradifind time in their day to smaller, “mid-market” comtionally benefitted from service labor perform actual repairs. panies with only a handful of from India, Malaysia, Indonesia, Service technicians locations, where service techThailand and other parts of Asia. are among a rentnicians wore many hats. For As the Singaporean government has al company’s these companies, frequentreduced the ability for companies to most skilled ly there was no dedicated employ foreign labor, the rental marand highly accounts payable department, ket labor shortage has tightened more compensatand it was up to the drastically, resulting in an even greated employees, service technician er shortfall of service personnel. but they were to reconcile differences in Technology saves the day While service labor markets tightparts pricing between en, technological innovation has order and provided powerful counter measures, invoice. resulting in dramatic efficiency gains: There was We may have a hard time hiring serno dedicatvice technicians, but we also benefit ed training from systems which make them more department, productive than ever before. The folso they had lowing is a sample of capabilities to spend which have profoundly improved sertime bringvice efficiency over the past decade. ing more junior AUTOMATED DELIVERY OF SERVICE SUPPORT: Integrating live employees up electronic parts and service catalogs to speed. There with rental management systems enable were no dedicated IT teams, manufacturers to deliver service and so parts masparts information to the technician, ter lists had to intelligently customized to the serial be loaded into number of the equipment they are servicing. The SmartEquip Network, for rental management systems. And example, dynamically maps the individual rental company asset number to there was no formal AUGUST/SEPTEMBER 2019

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BUSINESS SURVIVAL GUIDE 2019 //

the make, model, and serial number of equipment, and then delivers the right, always-current service documentation onto the technician’s mobile device, saving hours of searching.

payable” burden for either service technicians or the back office, and by extension mitigates corresponding “accounts receivable” challenges for the suppliers.

EvgeniyShkolenko/iStock/Getty Images Plus

…TECHNOLOGY INNOVATION TO DATE FOR A TYPICAL RENTAL COMPANY HAS REDUCED COMPANY-WIDE LABOR TIME ASSOCIATED WITH A REPAIR BY APPROXIMATELY 85%, OF WHICH MORE THAN 65% IS IN THE FORM OF PURE SERVICE LABOR TIME.

AUTOMATION OF ADMINISTRATIVE WORKFLOW & TRANSACTIONS: Systems

integrations further allow rental companies to automate the creation of workflow documentation. When technicians select their parts, the system accurately auto-populates work orders and purchase orders, which are then submitted electronically to the supplier, with zero labor effort.

AUTOMATION OF BACK OFFICE ADMINISTRATION:

Smart e-commerce solutions update and enforce correct pricing for both buyers and sellers, therefore nearly eliminating the possibility of pricing mismatches. This dramatically reduces a company’s “accounts

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AUTOMATION OF SERVICE SCHEDULING: The number of

applications capable of providing “smart” scheduling of technicians by matching their specializations and capabilities against service priorities continues to become more sophisticated. Increasingly, they are being tied to transactional capabilities, where anticipated service needs will trigger the pre-emptive ordering of parts without requiring the intervention of the technician, resulting in optimized technician use.

REPAIR PREDICTION: A new and very exciting development is the automated interpretation of equipment sensor data to drive the prediction of equipment failure. Not

only are equipment sensors becoming ubiquitous, reporting in real time how a unit is faring, but the layering of statistical methods to predict machine failure is exceptionally promising. Companies like Trackunit and Uptake have partnered to connect sensor data with statistical inference (via “big data” and “machine learning”), to predict equipment performance and failure, thus saving hours in the service and repair process, and also in equipment downtime.

A recent return to our original study has shown that technology innovation to date for a typical rental company has reduced company-wide labor time associated with a repair by approximately 85%, of which more than 65% is in the form of pure service labor time. Even though technicians remain hard to come by, technology allows them to perform nearly three times as much work as they did 20 years ago by guiding their core work in real time and stripping away arduous extraneous tasks. This freed up wrench time is great for the company’s profitability and the technicians’ satisfaction, as it allows them to focus more exclusively on the type of work that attracted them to their job in the first place.

Alex Schuessler is a 20+ year technology and equipment industry veteran and founder of SmartEquip, a company which provides an industry-spanning, procurement and lifecycle management network across the equipment industry.

In North America, more than 85% of the locations associated with the Top-20 rental companies utilize this technology to manage their fleets, by driving service, parts management, and procurement across the supply chain. Schuessler presently leads the company’s international expansion, and the company’s pan-European customers include A-Plant in the UK, Boels Rental, and Riwal, both headquartered in the Netherlands, and Zeppelin Rentals headquartered in Germany.

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SOLUTIONS FOR FINDING SKILLED LABOR

Companies that don’t want to fall victim to the skilled labor shortage need to think about their strategies for recruiting employees

T

he skilled labor shortage in the construction and equipment distribution industries is costing businesses huge amounts of money.

Just how much money, exactly?

In the case of equipment repair technicians alone, a 2015 study conducted by The College of William & Mary on behalf of the Associated Equipment Distributors (AED) estimated that the technician shortage was costing the heavy-duty equipment distribution industry more than $2.4 billion per year in lost revenue.

That’s just equipment technicians.

What about all of the other occupations that require special skill sets?

The financial losses become even more jaw-dropping.

The skilled employee shortage could be growing even worse.

Construction industry companies, particularly equipment dealers and distributors, are bracing for roughly 10% of their workforces to retire by the year 2022. On top of that, twoyear college enrollment is lagging far behind four-year colleges.

Other technical vocations such as automotive repair are also feeling this trend, creating intense competition for

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what skilled labor candidates do exist.

Construction industry companies that don’t want to fall victim to the skilled labor shortage need to think about their strategies for recruiting employees. The sources and methods relied upon in the past may no longer work.

Causes of the skills gap LACK OF PEOPLE WITH THE REQUIRED “HARD SKILLS.” In years

past, a solid pool of candidates were younger people who’d grown up on farms. That pool is smaller today.

Similarly, there aren’t as many small diesel repair shops as in the past.

TECHNICIAN ISSUE HAS

ALWAYS BEEN A LOCAL PROBLEM.

Many up-and-coming repair technicians go away to school but want to come back home to find a job. In many instances, the end result is a dealership hiring a great employee, only to see them quit a year or two later.

PARENTS PREFER FOUR-YEAR SCHOOLS. The phenomenon of the

1990s still exists today: Parents push their children toward four-year degrees.

In many instances, though, a young person would be better served to pursue a two-year degree that offers great career opportunity in a certain occupation.

RECRUITING STARTS TOO LATE.

The construction and equipment distribution industries haven’t been aggressive enough in their outreach to high school guidance counselors. The thought today is that outreach must begin when students are still in middle school. These young minds need industry exposure much earlier than they have been getting it. So do the educators who are teaching and advising them. When everyone understands the opportunities in construction and related fields, the likelihood is greater that CTE (career and technical education) programs will continue to be offered.

Federal programs such as the Perkins Act, which provide funding for technical education, have been reinvigorated. Perkins also promises that employers will have an instrumental voice as to how state funds are allocated. Thus, it is very important for the construction industry — state by state — to speak with a strong, unified voice.

“The AED now has a 50-state playbook that tells you where the funds are going, who’s getting them and how much they are — and how we can help ourselves,” says Robert Henderson, executive vice president www.ForConstructionPros.com/RENTAL

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and chief operating officer of AED. Another common practice is for employers to contact schools shortly before graduation to ask if any students are looking for employment.

With the labor shortages across so many industries, it’s unlikely that this tactic will produce the desired results going forward.

“If you’re asking for students at this point in time, the answer could very well be ‘none,’ or at the least, ‘very few,’” says Terry Marohl, associate professor/chair transportation, North Dakota State College of Science. “And for the students who are left, there’s probably a reason that they don’t have a job yet.”

One of the challenges with this outdated approach is that a graduat-

encourage them to go to school to get training, they may have to go away to school, but they can then come back to you when they graduate to begin work,” Marohl says. “You have a much greater chance of retaining that type of employee.

“Hiring local individuals is like growing your own employees,” Marohl continues. “A lot of dealerships are now talking with juniors and seniors in high school to generate some interest in this type of career, and to see which students may have a knack for what they’ll need to do.”

As for outreach to college students, companies should work to recruit and identify potential employees in their first year of school, as opposed to weeks or days before they

AS FOR OUTREACH TO COLLEGE STUDENTS, COMPANIES SHOULD WORK TO RECRUIT AND IDENTIFY POTENTIAL EMPLOYEES IN THEIR FIRST YEAR OF SCHOOL, AS OPPOSED TO WEEKS OR DAYS BEFORE THEY GRADUATE. ing student likely knows very Deagreez/iStock/ little about the Getty Images Plus company recruiting them.

Likewise, the company likely knows very little about the student, i.e. background, interests, personality, etc.

This is another reason why it’s important to start the recruiting process earlier than in the past.

Tips for starting outreach earlier Companies should identify and begin recruiting local individuals before they begin college. This will help ensure that the student has a better understanding of a company when it comes time to graduate and enter the workforce.

“If you identify local people who’d be a great fit for company, and

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graduate. Then, companies should begin attending career fairs for not only graduating students but also students just beginning college who may be seeking part-time or summer employment. Internships can be a very effective tactic.

There are many advantages to conducting student outreach earlier in the student’s career: ■ Build better relationship with a student ■ Allow both student and employer to determine if they are a good fit ■ Work with school to help tailor student’s education to the needs of the industry and specific job Staying engaged with the student throughout their academic career is important. Companies can get involved with clubs and other student organizations, helping to sponsor

events or provide guest speakers.

Some companies also arrange field trips to either the company itself or other industry events, for example.

Why companies should hire military veterans According to David Coe, senior vice president of strategic programs for Orion Talent, military veterans are proven to perform 4% better than the average employee. Additionally, turnover among veterans is 3% lower.

Construction and related industry companies that can effectively recruit, assimilate and retain military veterans into their organizations can make great strides in closing the skilled labor gap.

The challenge for employers is that demand for military talent is also at an all-time high. Companies need a well-defined strategy for approaching military veterans as prospective employees. The good news is that, according to Coe, the construction industry is very appealing to military veterans.

Orion Talent helps employers find the best way to hire military veterans.

Coe himself is a retired active-duty U.S. Marine Corps officer and understands the process very well. He points to several best practices Orion Talent has identified.

CREATE A MILITARY TALENT PROGRAM. Companies should

involve all key decision-makers in the development of that plan. That includes human resources, operations, etc. Make it about your company, not what other companies are doing in the way of military veteran outreach.

UNDERSTAND MILITARY TALENT.

Companies should focus on gaining a clear understanding of the backgrounds and skill-sets each veteran is suited to. That helps match the right people to the right positions.

DEVELOP A BRANDING AND OUTREACH CAMPAIGN. Traditional

recruiting methods typically don’t

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work well when it comes to military talent. It’s important to reach veterans where they are, keeping in mind the uniqueness of their job search situation.

MAKE ON-BOARDING A PRIORITY. It’s important to properly

assimilate a veteran into your organization. Companies can create mentoring programs and networking opportunities to help veterans transition into not only the company but the civilian world in general.

Companies should also pay attention to benefits that will appeal to veterans.

SET MEASURABLE GOALS AND OBJECTIVES. Companies

should identify and track key metrics including hiring, performance and retention. Here are some key metrics to keep in mind: ■■ Most veterans go from first interview to accepted offer in under 35 days ■■ Interviews take place within 20 days of application ■■ Hiring managers respond in one or two days ■■ Time to selection is two to four days It’s important to keep these metrics in mind because, as pointed out, demand for military talent is higher than ever. Companies that fail to act in a fast, compelling fashion will likely miss out on great talent.

Avoiding bad hires Hiring employees costs a lot of money. According to Jerry Randecker, past president and owner of JordanSitter Associates, an employee recruiting firm, that cost can range from 16% for entry-level employees, to 213% for senior management.

Those costs mount as a result of job postings, administration, employee training and everything else that goes along with hiring a new employee.

With that kind of money involved, companies cannot afford to make bad

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hires they end up having to replace.

So how do companies avoid making bad hires?

“In many situations, it’s best to not hire at all than to hire simply the best person you have available,” Randecker says. In other words, it’s important to avoid the desire to settle. Companies need to find an ideal match. “In today’s environment of low unemployment, this is getting more difficult to do. It’s now a fulltime occupation to keep good talent coming along,” Randecker points out.

There are some core best practices that can help companies find their ideal match.

■■ Have a well-defined job description — then the employer knows precisely what it is looking for.

■■ Identify good candidates through multi-faceted recruiting — job postings, temp agencies, trade schools, specialized recruiting firms, etc.

■■ Don’t forget about referrals and word of mouth — statistics show that many younger employees found their last job through a social network such as Facebook or LinkedIn. Internal job postings can also prove very effective these days. Local organizations and churches, etc. can also be great sources of potential employees.

■■ Have a plan and prepare for interviews — proper questioning of a candidate helps get beyond what they want you to hear and have prepared for. “You need to spend some time with people to really learn about who they are,” Randecker points out.

■■ Don’t rely too much on interviews, though — “It’s amazing what you’ll find out about a candidate by simply doing a Google search after the interview,” Randecker says.

■■ Employee assessments are also important — references, drug tests, criminal record, driving record. This is especially important when hiring lowerpaying, entry-level employees.

“As you go through the hiring process, don’t take anything for granted and check all the boxes,” Randecker advises.

■■ Put a job offer in writing — This is to make sure everyone is on the same page with respect to pay and benefits, etc.

■■ Follow-up with employees daily, monthly and annually — and it doesn’t have to be a formal review every time. “If you’re hiring someone for the long-term, though, there needs to be constant communication,” Randecker says. Just checking in to see how things are doing can be very effective in encouraging employees to stick around.

It’s important to have a wellplanned recruitment strategy to generate as high a concentration of good leads as possible.

MORE RESOURCES CONEXPO-CON/AGG has released a downloadable eBook “The Ultimate Construction Career Guide” as a precursor to the upcoming CONEXPO-CON/AGG 2020. The eBook is the culmination of numerous articles and guides that provides tips and expert advice to help men and women get started in the construction trades or flourish in your current role.

To download and read The Ultimate Construction Career Guide, including more tips on finding skilled labor, visit: www.conexpoconagg.com/ ultimate-construction-career-guide/ www.ForConstructionPros.com/RENTAL

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Y E V

What Do Young A R SU Really Think About Tr The demand for skilled labor in America has never been higher and employers are struggling to fill a record 6.7 million new job openings

T

he demand for skilled labor in America has never been higher. Employers are struggling to fill a record 6.7 million new job openings. In the construction industry specifically, 78 percent of firms plan to expand their headcount in 2019, although 70 percent admit that they are having trouble finding qualified workers.

Trade schools are frequently touted as a solution to the growing labor gap. A trade school is a technical program that teaches skills related to a specific job. With shorter programs, smaller classes, and abundant hands-on training, trade schools often lead to well-paying jobs like electricians, construction workers, and nursing assistants.

Despite this, there has been a gradual decline over the past few years in students enrolling in occupational education programs, trade schools, and apprenticeships. IBISWorld predicts a decrease in demand for trade school courses and education.

To find out how young Americans feel about trade schools, we surveyed 3,000 people on trade school advantages. Major takeaways include:

Young Americans do not associate high pay and job security with trade schools We first tested participants aged 18-24 on the advantages of trade school over a four-year college, giving them the ability to select more than one option. Here were the results:

While it seems that young Americans were somewhat aware of the specialized learning opportunities and lower student debt, fewer saw job security and job opportunities as advantages. Only 11% thought that trade schools can lead to highpaying jobs.

Instead, 43% of Americans selected none of the above as an advantage.

While this could mean that young Americans thought of an alternative advantage for trade schools, it could also suggest that they don’t associate crucial factors like job security and well-paid jobs with technical education.

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g Americans ut Trade School?

to another country. In addition, the aging population of skilled trade workers means more opportunities for young people to enter the field.

The majority of Americans believe the pay gap is higher than it really is

Trade school advantages Trade schools offer a number of compelling advantages. Some programs take only six weeks to complete, while longer programs take up to two years. This is significantly shorter than a college program, which often requires four years. The average cost of a trade school education is $33,000 compared to a four-year college’s average $127,000 cost. On top of this, the debt accrued from a four-year college is on average three times the debt from a trade school.

Lesser known advantages that we see in our survey are pay potential and job possibilities.

Contrary to belief, trade schools provide access to high-paying jobs, such as a landscape designer ($63,000/year) and construction manager ($89,000/year). As opposed to a bachelor’s degree, a trade school certification often guarantees a job in the industry due to the specialized learning, direct skills, and the growing demand for skilled labor.

According to the Georgetown Center on Education and the Workforce, about 30 million jobs that pay an

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average of $55,000 per year do not require a bachelor’s degree.

Job security is another advantage, as most jobs obtained through a technical certificate — like carpentry and electrical — are difficult to export

Our survey also asked respondents aged 18-24 to guess the average entry pay gap between a graduate of trade school and one from a four-year college.

A combined 54 percent of young Americans thought workers with a trade school certification made an average of $18,000 less than workers with a bachelor’s degree. 1 in 5 young students alone thought there was a $30,000 gap.

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Entry level pay The average annual pay difference between trade school entry-level jobs and bachelor’s degree earners is just $12,000. Only 22 percent of Americans got the answer right. While this number does not account for long-term earnings, trade school graduates are able to enter the job field sooner, which means they can earn at least two more years of income. Furthermore, the lower cost of debt offers the possibility of higher net earnings.

Would young Americans choose trade school?

So why would Americans choose trade school over college? We asked respondents to pick a reason they would opt for technical education.

A combined 41% of Americans aged 18-24 years said they would attend a trade school over college for career opportunities and high pay potential. And yet, many have the misconception that trade schools do not pay well. One reason might be lack of knowledge — a survey conducted by Degree Query found that 30 percent of high school students only go to a university because they think it’s the natural path after high school and 23 percent attend college because they feel they are expected to.

In summary, our study isn’t to say that a college education offers no advantages, nor should students feel deterred from attending a traditional university. It’s more about how there are so few young Americans who are aware of the possible advantages and opportunities offered by trade schools, despite wanting those benefits. As trade industries continue to expand in 2019 and the skilled labor shortage reaches a critical point, it is important to highlight the value of trade schools and show the skilled trades as an equally viable, well-paying career path.

ADDITIONAL SOURCES National Center for Education Statistics 1, 2 | The Simple Dollar | NPR | EDsmart | Career School Now | FOX Business | Association for Career and Technical Education | SimplyHired

METHODOLOGY This study was conducted on Google Surveys using three survey questions served to a sample size of at least 1,000 respondents per question. The demographic consisted of people ages 18-24 years old living in the United States. The study was conducted during January 2019.

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7 THINGS MANAGERS CAN DO TO

kali9/E+/Getty Images

RETAIN GOOD EMPLOYEES

Employers have to view their relationships with employees differently than they used to

T

oday’s workforce is different. The society they live in is different. With low unemployment and worker shortages in many occupations, today’s workforce has a lot of leverage in the job market. And in most cases, it takes more than good pay to get employees to stick around.

“Employers have to view the employer-employee relationship differently than ever before,” says Cara Silletto, MBA, president and chief retention officer for Crescendo Strategies, a consulting firm that helps companies reduce unnecessary turnover by bridging generational gaps and making managers stronger. “Employers are starting to view that relationship differently because things like excessive overtime, worker shortages and turnover are beginning to really impact the bottom line. It can cost anywhere from $5,000 to $25,000 per employee that walks off the job.”

There is positive news for employers in the construction and utility industry, though. Silletto says there are some basic things companies can do to immediately begin strengthening their employee retention efforts.

1. Get a handle on the problem The first action is to recognize that retention is a problem. Silletto says that in order to do that, it’s important to take long-term employees out of the turnover calculation.

“Long-term employees have what we refer to as golden handcuffs,” Silletto says. They are largely loyal to a given company because they’ve earned inherent benefits as a result of their loyalty and tenure, such as considerable paid time off.

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Conversely, a company’s turnover problem often resides in its newer employees. “Most of these employees don’t have a pension and are offered little in the way of paid time off or bonuses,” Silletto points out. “I encourage senior leaders to look at the current tenure of their new hires over the past five years. What many companies find is that the average tenure declines every year.”

To begin reversing that trend, company leadership can do the following.

Plan for shorter-term workforce.

If people used to stay five to 10 years, they are now staying two to five years.

2. Plan for that.

“Operationally speaking, companies should look at how they are scheduling and planning for turnover on their teams,” Silletto says. By revamping the on-boarding process and creating better training paths, employers can better maximize the time they have with an employee. Videos and group www.ForConstructionPros.com/RENTAL

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BUSINESS SURVIVAL GUIDE 2019 // TOPIC HERE FEATURE training, for example, could help expedite the learning curve.

3. Create a retention champion.

Someone in the company needs to be in charge of the workforce retention initiative. It doesn’t even have to be a full-time position, and it doesn’t have to reside in the HR department. This person would help monitor employee perceptions, serving as a liaison between employees and management.

This person would also oversee the implementation and evaluation of different retention initiatives.

5. Communicate expectations.

Today’s new workforce wasn’t raised like the previous generation. New hires cannot read their managers’ minds. “The phrases ‘work ethic’ and ‘professionalism’ are very subjective,” Silletto adds. “Managers must spend more time and effort communicating expectations if they want employees to hit the mark.”

6. Appreciate a job well-done.

Many managers feel like they should only show appreciation when an employee goes above and beyond.

“Remember, it’s an employee’s market,” Silletto reminds. “Many employers say they have a problem with too many employees not showing up on time every day. I encourage managers to dig down deep into their hearts and admit the fact that they are grateful for the employees who do show up on time and do their jobs. A manager can become a better boss by just saying ‘thanks’ to their employees.”

7. Have an on-boarding plan.

Employees always start out in the HR department filling out paperwork. But the new hire experience continues once HR hands the employee over to his or her supervisor.

“A manager should have a plan for what they are going to do with the new hire once they get them,” Silletto says. Are the new hire’s tools in order? Are the other team members aware that the new hire is starting?

Cara Silletto will be speaking about these topics and more at ICUEE 2019 in Louisville, KY, October 1-3. Register Now. “I’m going to share some backstories on why Millennials and Generation Z have less loyalty coming into a company than previous generations,” Silletto says. “We’ll also talk about why they have more of a sense of entitlement. We call it the issues on the TABLE: technology, authority, balance, loyalty and entitlement. These five topics explain why today’s new workforce sees the employer-employee relationship so differently. We’ll also outline strategies for how companies can bridge this generational gap and begin reducing their unnecessary employee turnover.”

Kerkez/iStock/Getty Images Plus

4. Gather feedback.

Conducting employee surveys should be a core element of what the retention champion does. “It’s important to collect real data about why employees leave,” Silletto says. “If a company assumes it’s all about pay and schedules, they are wrong. All of the data points back to things like company culture, communication and management effectiveness.”

MORE RESOURCES 7 STEPS TO WORKER RETENTION #1…“On-boarding” www.forconstructionpros.com/11386128

#5…Engagement/Participation www.forconstructionpros.com/11442542

#2…The 90-day Plan www.forconstructionpros.com/11406483

#6…Responsibility Enhancement www.forconstructionpros.com/11458004

#3…Skill Training www.forconstructionpros.com/11416150

#7…Performance Review www.forconstructionpros.com/11473349

#4…Coaching & Mentoring www.forconstructionpros.com/11431204

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Wacker Neuson’s LTV light tower series offers big benefits in a smaller package. The compact body design and vertical mast allows for 18 units to fit on a 48-foot flatbed truck. But don’t let the size fool you. These light towers are designed for long hours of lighting and offer an industry-leading 1,000 hours between service intervals.

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CONSTRUCTION SUPPORT

LIGHTING

By Rod Dickens

Plug-In Light Towers Gain Exposure Electric light towers are great for events, and now even construction applications, thanks to LED technology

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lectric light towers have traditionally been deployed in the entertainment world, where noise is an issue, or indoors where the use of diesel engines is prohibitive. That’s changing and changing rapidly. These units with LED technology now shed light on construction sites, remote areas, and virtually anywhere shore power or a generator is being used.

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CONSTRUCTION TOPIC HERE SUPPORT

LIGHTING FEATURE

Manufacturers that market dieselpowered light towers now make room in their lineup for at least one if not several plug-in models. Rental stores are getting into the mix, as well, again making room on their floors for a plug-in option for customers.

Allmand’s Night-Lite E-Series (NLE) has been on the market now for a year. “We’ve seen a huge uptick in demand for electric light towers,” says Brian Northway, field service manager at Allmand.

“When our NLE was first introduced, we thought it would primarily be a fit for the entertainment industry, but now they’re going everywhere. These units are significantly less expensive because buyers are not paying for a diesel engine and a generator. They require less maintenance and don’t need to be refueled every day. Rental stores also like them since there’s very little customers can do to damage them.”

Northway emphasized the NLE model is built to the same high standard as the generator models in the company’s light tower lineup, including having the same five-section tower with a wind rating of 50 mph. Among features are a manual winch, an on/off timer and photocell, and four LED fixtures that have an output of 154,000 lumens.

“As with any new product, the challenge is to get the word out,” adds Northway. “Rental stores are helping us do that. Additionally, they are educating us as to how broad and diverse the market for this product really is.”

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More ways to go FTG Equipment Solutions, the exclusive distributor in the U.S. for Trime light towers, offers five electric light tower options. Choices include the Eco-Chain, a plugin unit; the Eco-Chain P, a plugin unit with explosion-proof lights; X-Battery, a skid unit powered by a battery; X-City T, a towable, compact tower powered by a battery; and the X-Hybrid, as its name implies, a hybrid model. All five have a mast height of 23 feet.

“The plug-in model features four LED fixtures with an output equivalent to four 1000W metal halide lamps,” states FTG Managing Director Steve Scattolini. “These units are very compact, draw only 7.5 amps, and can be daisy chained to provide even more light. The battery-powered and hybrid units have slightly less out-

Plug-in light towers are great in rental applications because there’s very little customers can do to damage them.

put, covering approximately 50 to 60 percent of what a traditional light tower covers.”

He notes the battery-only model has a run time of 36 hours and recharges in eight hours with a builtin charger. “The hybrid unit offers a

long run time, especially well-suited for remote locations where refueling can be difficult. Depending on run time, this unit may only need to be refueled every three months.”

“In temporary working sites where light is needed and electric power is available, electric light towers are a good alternative for four primary reasons,” according to Angel Nieto, product manager, power and light for Atlas Copco. “They have 1) a lower capital investment, 2) a lower cost of ownership because of extremely low maintenance and no diesel expense, 3) no or little noise output, and 4) they can be easily used in sensitive environments.”

The company has several plugin models for different applications.

Nieto explained that Model HiLight E3+ features an especially sturdy design ideal for the rental industry, along with a larger light coverage than the rest, thanks to 4 x 160-watt LED lights and a mast height of 23 feet. Model HiLight V3+ is mounted on a robust trailer where a small portable generator can be placed to power up the lights. This makes it especially suitable for applications where the light tower needs to be moved frequently, e.g., for road work.

It can be moved by one operator and without the need to extend power cords along the work site.”

Model HiLight P2+ is a stationary balloon-style light tower that features a special lighting optic built into a PE (polyethylene) rigid housing with built-in cooling. A dimmable floodlight spreads light 360 degrees.

“For additional light coverage, up to three E3 units can be daisy chained,” says Nieto. “Simply extend the power cord from one unit to another and you will have multiplied by three the light coverage using less than 2,000 watts, low enough for any small portable gas generator.”

www.ForConstructionPros.com/RENTAL

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CONSTRUCTION SUPPORT

LIGHTING

The LED factor LED technology is driving the many changes in the light tower industry. LED fixtures are more durable than metal halide lamps, last much longer and draw less power.

The latter has made a dramatic impact on both the diesel engine and plug-in light tower market.

“Because LED fixtures draw less power, generators now have extra capacity for another application at a jobsite,” Allmand’s Northway points out. “For example, if a generator that previously powered a metal halide light tower had 2 kw in reserve, it would now have 5 kw in reserve with LED fixtures.”

For the plug-in market, the reduced power draw has added to light tower versatility, allowing them to be powered by a small portable generator or, as mentioned above, daisy-chained together to provide additional lighting.

FOR THE PLUG-IN MARKET, THE REDUCED POWER DRAW HAS ADDED TO LIGHT TOWER VERSATILITY

s

er

LED fixtures are more durable than metal halide lamps, last much longer and draw less power.

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“Daisy chaining light towers together can also be very cost effective,” adds Michael Goche, Generac Mobile Products. “Consider a remote location where you might need three light towers. Instead of having three diesel engine light towers, you could have one and then easily connect two of our less-expensive PLT240 plugin LINKTowers, saving on fuel and maintenance costs, as well. A third plug-in tower could be added to the ‘chain,’ with the proper combination of cords and connections.”

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CONSTRUCTION TOPIC HERE SUPPORT

LIGHTING FEATURE

The PLT240 features two retractable handles and two caster wheels for easy one-person maneuverability, along with an adjustable 16-foot mast. Generac offers a second plug-in model, the CTF10, with a higher mast and no wheels. “Some customers prefer the CTF10 setup if for no other reason it’s less susceptible to theft,” said Goche.

Lind Equipment offers four models of its Beacon LED Towers, a flat-mast version with two or four lights and a vertical-mast version, again with two or four LED fixtures.

The flat-mast towers extend to 20 feet compared to 17 feet for their vertical counterparts. “All can run on a small suitcase generator, making it ideal for a remote location, or they can be deployed indoors or at an outdoor entertainment setting where external power is available,” says Lind Equipment President Brian Astl. “A single tower light needs only 6 amps to run, so a 15-amp/120-volt circuit will power two Beacon LED towers.

“Depending on the model, the towers weigh anywhere between 300 to 380 pounds and have a wind rating of 45 mph. Their light weight makes these units very portable, so two Beacon LED towers can fit in the

back of a standard-size pickup with ease. Both versions of the tower can also easily go through man doors. He notes the units also feature a lockable steel cabinet for a small generator that will run approximately 45 hours on a standard 2000-watt generator with an included auxiliary fuel tank.”

Astl emphasizes that since Lind Equipment is a lighting company exclusively, it offers a variety of lighting solutions for the construction and rental industries, including having a selection of flood and wide-area lights. Its portable wide-area flood light extends to 10 feet high and can be retrofitted to virtually any base.

Different directions LED technology is making its way into the rental market, but there’s still some customers who are resistant change and the cost of LED fixtures is still higher than metal halide, making the purchase a difficult one for some store owners.

“Reportedly, every year LED output increases by 10 percent whereas cost decreases by 10 percent,” states Generac’s Goche. “Whether that’s completely accurate or not, the trend is unmistakable, and

“REPORTEDLY, EVERY YEAR

LED OUTPUT INCREASES BY 10% WHEREAS COST DECREASES BY 10%.

WHETHER THAT’S COMPLETELY ACCURATE OR NOT, THE TREND IS UNMISTAKABLE, AND COSTS SOON WILL NOT BE AN ISSUE. MICHAEL GOCHE, GENERAC MOBILE PRODUCTS

costs soon will not be an issue.

LED costs aside, Goche sees three areas of growth for LED light towers. “Deploying a combination of an engine light tower and plug-in models is bound to get more popular as rental customers and other users realize the benefits of one enginedriven light tower powering up to three additional light towers.

“Dusk to dawn features that incorporate smart technology to automatically turn light towers on and off will continue to grow in popularity to save on operating and maintenance costs. Controller interface simplicity is also needed to serve the wide range of customers operating our products,” he says.

Goche also anticipates an uptick in the hybrid light tower market being led by fuel-conscious European markets. Battery technology is improving along with lower power requirements of LED lights to help drive hybrid products. Again, the current stumbling block is the additional cost for a battery, engine and generator. “Still,” says Goche, “there are applications that are ideally suited for a hybrid light tower.

Entertainment or sport venues needing quiet operation at night and recharging the battery during the day would be one such occasion.”

The plug-in market will grow as rental customers and other users become aware of benefits like ease of setup, no fuel costs and maintenance, smaller carbon footprint, and virtual noiseless operation.

As Allmand’s Northway points out, rental stores have two important roles to play in this market: 1) to educate customers about these benefits, and 2) to help educate manufacturers about just how and where customers plan to use these lights.

noipornpan/iStock/Getty Images Plus

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PRODUCT ROUNDUP // LIGHT TOWERS

 Allmand Night-Lite NL5000 Light Tower The compact Night-Lite NL5000 60-Hz light tower includes Allmand’s 1,250-watt metal halide light system and a vertical manual winch tower deployed from the rear.

• Stepping pad enables easy fixture adjustment and mast rotation from the ground • Genset Protect system protects the engine and generator from starting and stopping with AC power and ensures the lighting system is off at startup and shutdown • Kubota 1005 liquid-cooled, Tier 4 Final/CARBcertified diesel engine • 45-gal. steel fuel tank provides approximately 90 hours of runtime

 Wacker Neuson

LTV6K LED Light Tower

An LED light package is available on the Kubota-powered LTV6K light tower.

It features four 240W LED lights with a life expectancy of 50,000 hours.

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• Provides improved fuel economy with up to 137 hours of runtime from the 45-gal. fuel tank

 Generac PLT240 LINKTower Generac’s PLT240 LINKTower is shore powered so it can be used indoors and outdoors with zero localized emissions.

• Instant on/off operation with no time needed for warmup and cool down period

• Link two LINKTowers together on a single 120-volt outlet

• Adjustable vertical mast with ground level mast rotator extends 23 ft. and can rotate 360°

• (4) 240W instant-on Generac LED lights with 88,000 total lumen output

• Choice of a 12.2-hp Kohler engine or 13.1-hp Kubota engine

• Zero localized emissions

• 6-kW Mecc Alte generator

• Mast extends up to 16 ft. and stows to fit through standard doorways

• Can withstand winds up to 65 mph with mast fully extended

• Retractable handles and added caster wheel for one-person maneuverability

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• Powered by standard 120-volt outlet

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 APT V4 S Safe  Atlas Copco HiLight V4W Light Tower The HiLight V4W includes a manually operated vertical mast that rotates 360° and has a maximum operating height of 25 ft.

• Four 1,000-watt metal halide lamps illuminate up to 43,000 sq. ft. with an average brightness of 20 lux • Can work in altitudes greater than 6,500 ft. and can withstand temperatures up to 122° F and wind speeds up to 51 mph • 8-kW water-cooled engine with three cylinders and a 42-gal. fuel tank for a runtime of up to 90 hours

• 8-kW watercooled engine with two cylinders

• Features a unibody trailer with four-point leveling system and heavy-duty base frame and stabilizers, spillage-free frame and HardHat polyethylene canopy

• Spillage-free frame and durable polyethylene enclosure

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• User-friendly controls and power panel with independent circuit breakers

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Light Light Tower

The self-powered V4 S Safe Light includes four 1,000-watt metal halide lamps supported by a 360° rotating manual mast with a 25-ft. height capacity that can withstand wind speeds of up to 51 mph.

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• 120VAC auxiliary power output • 28-gal. fuel tank for maximum runtime www.forconstructionpros. com/20994021

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 Allmand

E Series Light Tower

Allmand’s Night-Lite E-Series is a special event solution built to be easily deployed across a venue • Multi-directional forklift pockets and the ability to withstand high winds make this unit durable enough to be used in many different environments, such as outdoor corporate events, sports venues, weddings and festivals • Four LED light fixtures provide an output of 154,000 lumens • Automatic on/off functionality with a timer and photocell help ensure the highest level of performance and efficiency • Event managers and crews can rely on the timer feature to easily manage when the tower turns on and off, while the photocell can sense daylight and control the light accordingly • Developed with the coiled power cable secured to the top of the first, third and fifth sections to minimize tangling, making it easy for event crews to set up • Unit stabilizers feature a four-point design with foldable outriggers so the unit can withstand windy conditions www.forconstructionpros.com/20993886

 Lind Equipment LED Jobsite System Lind Equipment’s LED Jobsite System is a temporary lighting solution that combines ultra-efficient state-of-the-art LED technology with innovative design and rugged durability. A complete plug and play system that can be reused again and again across multiple construction projects, the LED Jobsite System provides quantifiable project cost savings along with dramatic energy savings.

• Lind Equipment compiles real-time data to precisely quantify the energy savings generated by their LED Jobsite System on active jobsites • Proactive and profitable step toward reducing the carbon footprint of construction sites • Waste is reduced by reusing the LED lights from project to project which reduces waste going to landfills and contains no hazardous chemicals such as the mercury present in compact fluorescent and metal halide bulbs, or other toxic heavy metals

For the last 50 years, TVH has grown to become one of the most respected names in the material handling and industrial equipment industry.

www.forconstructionpros.com/21077584

www.tvh.com

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Generator Test Set Model 650 - 30 KW - 120/240 V - 60 Hz

PUT AN END TO WET STACKING! Ensure your generators are A self-contained test set for electrical load testing of AC outputting what they should. generators

Generators up to 30 KW can be loaded to full capacity 120V/240V Single Phase.

PRODUCT ROUNDUP // LIGHT TOWERS

 Doosan LCV6 and LCV8 Portable Light Towers

The LCV6 and LCV8 feature a small body design (82” L x 55” W) and a manually extending, 23-ft. vertical mast with a clamshell-style canopy made of durable, lightweight composite material.

• Four 1,050-watt halide lamps or optional LED, 290-watt fixtures for glare-free lighting and nearly double the runtime

Run your diesel generators under full load to prevent Wet Stacking.

• Powered by Kubota Tier 4 Final diesel engines and 6- and 8-kW Mecc Alte alternators

Easy to use products at practical prices!

(800) 922-2969

• 52-gal. diesel fuel tank enables minimum runtimes of 119 hours (LVC6) and 97 hours (LVC8) • Optional fluid containment, electric winch, auto start/ stop control, low fuel shutdown and telematics package www.forconstructionpros.com/21007940

sales@sotcher.com

www.sotcher.com

 Generac MLT4060MVD LED Light Tower The MLT4060MVD LED mobile light tower is designed for remote locations and extreme environments, with features that allow for autonomous operation.

• Four 296-watt LED fixtures light up instantly and provide powerful illumination with 172,200 total lumens • Power Zone Autolight Controller offers programmable settings for automated control, including start/stop and dusk-to-dawn settings • 23-ft. vertical mast deploys quickly and easily and is fully rotational from ground level • Extra-large diesel fuel tank and low fuel consumption allow the tower to run up to 533 hours on a single tank fill, while a 750-hour oil change interval minimizes maintenance costs

QUALITY YOU CAN FEEL. SERVICE YOU CAN TRUST. INNOVATION YOU CAN LEAD WITH.

Compaction the way it should be!

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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.

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BARRETO MANUFACTURING, INC.,

TREE CARE PRODUCTS What began as a revolutionary idea for a hydraulic tiller back in the 80’s and led to developing the first allhydraulic walk behind trencher in the 90’s, has become an industry-leading product line of lawn, garden, and tree care equipment.

The first product in the Barreto tree care line was the Log Splitter introduced in 2006. Built specifically for the demands of the rental market, the Barreto log splitter features a 790 lb. frame, a high carbon wearalloy wedge, and a 6” x 25 lb. wide flange beam. The innovatively designed torsion axle can be moved to one of three positions to reduce or increase tongue weight to the owner’s preference. Safety is standard with a mandatory two-handed control system, cushion mounted log cradle, and spring loaded cleaning wedge.

In 2013, Barreto brought the 30SG Stump Grinder to the rental market. The 30SG has a hydraulically-driven cutter wheel that is raised and lowered into the stump and then moved from side to side to cut down. The tracks are driven by independent hydrostatic pumps mounted on the rear of the engine for easy access and simple linkage control. Counterbalance valves on each track drive prevent the motors from slipping while the cutter wheel is engaged, even while operating on a slope. All-hydraulic drive to the cutter wheel eliminates costly belts.

2016’s addition to the Barreto tree care line is the 3104CMS Chipper/Mulcher/Shredder. The CMS 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

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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. Both have quick access ports for easy servicing or repair.

Rounding out the Barreto tree care line is the all-new 13SGH/16SGB Stump Grinder, introduced in 2017.

This stump grinder’s unique design pivots over the center-line of the wheels, allowing the grinding head to sweep easily across the stump, while the wheel base remains stationary.

The innovative design and compact stature of this stump grinder makes it ideal for tight access areas. The swivel head has a swing arc of 35˚ and the cutting wheel has eight carbide green teeth with three cutting surfaces. The unique design provides limited need for maintenance and repair, allowing the stump grinders to remain in the field getting the job done.

See how the Barreto tree care line can help your rental business.

Call us today at 1-800-525-7348 or visit www.barretomfg.com.

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VALUE TESTIMONIAL Advertisement

THE WORLD’S LARGEST MANUFACTURER OF ENGINES FOR AUTOMOTIVE, POWERSPORTS, MARINE, AEROSPACE & POWER EQUIPMENT PRODUCTS

Honda is the world’s largest manufacturer of engines for a diverse array of automotive, powersports, marine, aerospace and power equipment products. The company offers a complete line of small, generalpurpose engines that supply smooth and dependable power for thousands of different product applications in the rental, industrial, and commercial industries along with consumer and residential markets.

Honda’s fuel-efficient, four-stroke models provide easy starts, quiet low-vibration operation, and dependable power—helping people get things done.

The all-new, high-output Honda GX50 expands the company’s Mini-Four Stroke lineup with a more powerful model. Joining the Honda GX25 and Honda GX35 MiniFour Stroke models, the new GX50 incorporates a higher displacement, making it an ideal power match for demanding rental, industrial,

construction and professional landscape applications. Available now and for sale to power equipment OEMs, the versatile Honda GX50 brings its light weight, compact design, easy starting and excellent fuel efficiency to power products ranging from brush cutters to rammers and vibrators to concrete screeds, post drivers and winches.

The Honda GX50 is quieter and features reduced vibration over a comparable two-stroke engine, pairing greater user comfort with top-class performance.

What’s more, the GX50 is the first Honda four-stroke model in the two-horsepower class that is 360-degrees inclinable during operation and storage. With valvetrain parts installed inside the oil chamber, along with an easy-tostart recoil that reduces the pulling force required to start the engine, the allnew Honda GX50 can power even more applications in the handheld market.

Follow Honda Engines and Honda Power Equipment news and video on: hondanews.com | engines.honda.com | powerequipment.honda.com | honda.com 66

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www.ForConstructionPros.com/RENTAL

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9 11:13 AM

Without a

Honda Engine, your customers see this:

Rental customers know reliable, easy-starting equipment by sight — it’s the equipment powered by a Honda Engine. And with legendary minimal downtime and a 3-Year Warranty,* Honda GX Series engines offer the type of durable performance that keeps customers coming back for more. Project after project, hour after hour, there’s only one name that powers the best. Honda Engines.

Learn more at engines.honda.com *Warranty applies to all Honda GX Series engines, 100cc or larger purchased at retail or put into rental service since January 1, 2009. Warranty excludes Honda GXV140 and GXV160 models. See full warranty details at engines.honda.com. For optimum performance and safety, please read the owner’s manual before operating your Honda Power Equipment. © 2019 American Honda Motor Co., Inc.

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SPECIAL REPORT

ENGINES

By Nathan M edcalf, contributing editor

What’s Next

IN OFF-ROAD DIESEL EXHAUST REGULATIONS? With the example of the European Union’s more stringent Stage V diesel emissions limits, will the U.S. be satisfied with Tier 4 Final?

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T

he year 2019 marks the first year that heavy equipment original equipment manufacturers (OEMs) can no longer produce off-road construction equipment equipped with Tier 3 engines for the North American market.

“OEMs were able to use Tier 3 engines for a seven-year period beyond the implementation of Tier 4 Interim,” says Steve Nendick, global off-highway marketing communications director at Cummins. “This regulation recognized that manufacturers with multiple equipment lines would not have the resources to be able to switch them all at one point in time.”

The Cummins Performance Series B6.7 engine is designed to serve both the European and North American markets. Most engine manufacturers serve global markets and offer flexible diesel engine solutions for customers in different regions. Photo Credit: Cummins

OEMs are now no longer able to sell new machinery with Tier 3 engines installed.

“Tier 4 Interim engines were first introduced in 2011, with Tier 4 Final in 2014,” says Nendick. “These solutions were a result of many years of experience in both on- and off-road markets.

The challenge has been to implement the emissions technology and add value to customers in terms of improving www.ForConstructionPros.com/RENTAL

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©

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TRAINING THAT MEETS

NEW ANSI REQUIREMENTS The new ANSI A92.22 standards for Safe Use and ANSI A92.24 standards for training published on December 10, 2018. Everyone must in compliance within one year. These new standards carry major changes and additional training requirements.

Helping equipment owners and operators be in compliance

by December 10, 2019, Genie® operator training programs meet the requirements in the new standards:

■ Genie Lift Pro™ Online Operator Training Program ■ Genie Lift Pro Train the Trainer courses ■ Genie Lift Pro classroom-based operator training courses Safety is job one on every worksite. Accidents happen when operators overlook safety precautions or don’t understand how to operate equipment. One of the biggest challenges in the aerial

industry is increasing awareness about why safety importance, especially as the standards change.

That’s why Genie updated its two-part training program — including both online and handson components — to deliver a standardized MEWPs or telehandler training package, so operators stay safe on worksites.

The updated Genie Lift Pro courses are designed to get trainers, operators and supervisors up-tospeed with the new standards efficiently, while promoting safety and knowledge development for properly operating MEWPs in today’s busy work environment.

Today’s Genie Lift Pro training courses cover: ■ Machine terminology ■ Selecting the proper mobile elevating work platform (MEWP) for the application ■ Creating and adhering to a safe use plan ■ Performing detailed risk assessments, including rescue planning ■ Recordkeeping best practices ■ Occupant knowledge of machine operation and best practices safe use

For information about the standards changes, visit: www.genielift.com/support/ansia92-csab354 For information about Genie Lift Pro Training programs, visit: www.genielift.com/en/support/training www.ForConstructionPros.com/RENTAL

© 2019 Terex Corporation. Terex, Genie and Lift Connect are trademarks of Terex Corporation or its subsidiaries.

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SPECIAL TOPIC REPORT HERE

ENGINES FEATURE

efficiency and capability, as well as reducing total cost of operation.”

A European invasion?

For two decades, EPA regulations have been driving engine technology and cleaner engine adoption.

Now, there are no new regulations in North America influencing manufacturer and consumer behavior. Efforts for cleaner engines in North America have plateaued.

The European Union (EU), however, has surpassed the U.S. in its efforts to decrease particulate matter (PM) and oxides of Nitrogen (NOx) emitted from construction equipment.

MANY IN THE NORTH AMERICAN CONSTRUCTION INDUSTRY ARE WONDERING IF THE U.S. WILL EVENTUALLY ADOPT THE SAME OR SIMILAR LEGISLATION AS THE EU. THEY ARE ALREADY REFERRING TO IT AS TIER 5…

“In 2014, the EU Stage IV and U.S. Tier 4 Final legislated against the same levels of PM and NOx,” says Nendick. But while both Tier 4 Final and EU Stage V limit PM mass (0.015 grams per kilowatt-hour), Stage V takes it a step further by introducing a PM number count for engines between 19 and 560 kW (25 to 750 hp). “This is only achievable via the use of diesel particulate filter (DPF) aftertreatment systems.”

Many in the North American construction industry are wondering if the U.S. will eventually adopt the same or similar legislation as the EU. They are already referring to it as Tier 5, even though U.S. regulators have announced no plans to move past Tier 4.

“I think most global OEMs see the EU particulate number standard as inevitable for the U.S. I would not

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be surprised to see the [PM number] standard be incorporated into the U.S. rules at some point in the future,” says Allen Schaeffer, executive director, Diesel Technology Forum.

In fact, numerous manufacturers are already prepared to distribute “Stage V/ Tier 5” technology in North America.

“Unsurprisingly, the technology Cummins has developed to meet the challenge set by Stage V in Europe is being incorporated into engines available in North America. Called the Performance Series engines, they give OEMs and end users access to engines that deliver more with less.

Power and torque are increased on average by 10% and 20%, respectively, across the range,” Nendick explains.

“Stage V technology impacts Tier 4 engines in that John Deere is focused on developing flexible aftertreatment solutions that can comply with varying levels of regulation. In fact, most of our Tier 4 Final/Stage IV products are already Stage V-ready today,” says James Knoll, product manager, John Deere Power Systems. “We’ve been using the technology needed to meet Stage V emissions since our Tier 4 Interim/Stage IIIB engines. Also, many Stage V technologies have been implemented in both the on- and offhighway markets for some time.”

A whisper in the wind So, if manufacturers are prepared to move to more stringent regulations in North America, why doesn’t the EPA move on this? The answer is in the air.

“The EPA uses air quality data from monitors combined with their own emissions inventory estimates from various sectors of the economy, in part, as a basis for creating exhaust emissions standards for sectors such as non-road mobile equipment,” says Ajay Prasher, product marketing manager, Caterpillar. “At Caterpillar, we monitor U.S. EPA and California studies and statements related to www.ForConstructionPros.com/RENTAL

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GENERAL PIPE CLEANERS

KEEPS DRAIN CLEANING RENTALS PROFITABLE “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 General 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 90 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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ENGINES FEATURE

The Cat C9.3B delivers 18% more power while reducing system weight by 12%. Greater power densities are features of Tier 4 engines.

Photo Credit: Caterpillar

potential future emissions regulatory trends.”

“Air quality is improving in the U.S., and the EPA has proposed retaining the current ozone standards, so I don’t know that I see the ambient air quality standards changing anytime soon,” says Schaeffer.

Manufacturers have substantially reduced diesel engine emissions since legislation began with Tier 1 in 1996. “The latest products are nearzero, with the level of emissions being so low they are becoming increasingly harder to measure,” Nendick points out. “With the plans for further emissions regulations being unclear, the challenge for the onand off-road markets is to move vehicle and equipment populations to ones powered with the latest engines and obsolete older ones.”

Given the population of older diesels still operating in the U.S., removing older engines from the market can deliver the most air quality improvement. A Tier 4 Final engine eliminates PM and NOx by more than 99% (vs. a non-tiered engine). A Tier 1 engine eliminates 90% of PM and NOx. So the payoff in air quality from replacing non-tiered engines with tiered ones, and by moving lower tiers to Tier 4, is bigger than the tenths of a percent gains from moving from Tier 4 Final to EU Stage V.

Technological alternatives to regulation OEMs serving North America are moving to cleaner, innovative diesel engine technology without further requirements from government. “[Cummins’] in-house combustion, exhaust aftertreatment, turbocharging, fuel system, electronic

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controls, filtration and alternative power capability mean we can adopt the optimum solution which not only reduces emissions, but also brings customer value in terms of performance, productivity and cost of ownership,” says Nendick.

“Caterpillar’s latest Tier 4 Final engines are more sophisticated and high performing than ever,” says Prasher. “In terms of performance, we’ve been able to increase power and torque density by 20% in some cases and reduce fuel consumption by more than 10% in some cases.

Furthermore, our latest designs are more compact than ever. We’ve transformed the OEM experience where the engines are simple to install with plug-and-play options, helping to reduce the total cost of installation.”

In the coming years, Knoll anticipates a continued investment in electronic control systems. “Engines will become smarter and more capable, not only in terms of lower emissions or higher power, but more reliable to run in the way people want,” he comments. “Telematics and the remote diagnostics and prognostics capabilities of those systems will continue to expand. Those capabilities will become more readily available, as well as more intelligent.”

“The need to reduce exhaust gas emissions coupled with the rise of urban zero- and low-emissions zones in major cities around the world has been a key factor in the discussion around alternative power solutions, rather than further regulations,” says Nendick. “Electrification, either full or hybrid, is a viable power option for off-highway.”

Cleaner engines taking their place in the market, technological alternatives filtering into key applications and improving ambient air quality suggest little reason to expect further off-road diesel regulation by the EPA. So anyone “waiting for the other shoe to drop” can breathe a sigh of relief for now. www.ForConstructionPros.com/RENTAL

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PRODUCT ROUNDUP // ENGINES

 Scania

 Deutz

Tier 4 Final Industrial Engines

 Hatz H50 Open Power Unit

The 382-lb. H50 turbocharged, fourcylinder, Tier 4 Final diesel engine is available as an Open Power Unit that comes fully assembled from the factory with cooling package and mounting assembly.

• Develops maximum power of 74 hp • Bosch high-pressure, common rail system

2019 Diesel Engines

In 2019, the portfolio will include four new in-line engines between 9L and 18L capacity, as well as a three-cylinder addition to the lower power output range.

These Tier 4 Final industrial engines will feature exhaust gas recirculation and selective catalytic reduction, with no particulate filter required.

• TCD 9.0 four-cylinder model and TCD 12.0/13.5 and 18.0 six-cylinder models deliver power output from 402 to 831 hp and are suited for heavy-duty off-highway applications

• 9-, 13- and 16-liter ranges with power ratings from 275 to 700 hp • Share same cylinder design to facilitate servicing, repair and parts supply

• TCD 9.0 to 13.5 include a standardized customer interface and identical front and rear sides for easier installation and service

• Common-rail fuel injection • Scania XPI (extra high pressure injection) with all electronic control

• Intercooler for maximum power

• Engine management for highprecision control of combustion and aftertreatment

• No diesel particulate filter (DPF) or downtime for regeneration

• 500-hour maintenance and oil change intervals

• High-speed fans available for enclosures and extreme ambient temperature applications

• Three-cylinder TCD 2.2 offers output from 30 to 75 hp, is based on the same platform as the fourcylinder TCD 2.9 and is suited for low-load applications

www.forconstructionpros.com/10887161

www.forconstructionpros.com/21006216

• Cooling fan can be configured as puller or pusher fan www.forconstructionpros.com/12208818

 Cummins X12 Engine At 2,050 lbs., the X12 engine is designed for weight-sensitive applications.

• Provides up to 500 hp and 1,700 lbs.-ft. of torque • Low-friction design for higher MPG • Maintenance intervals rival the X15 with longer oil drains and DPF maintenance beyond the first owner • Compatible with a broad choice of fully automatic, AMT and manual transmissions www.forconstructionpros.com/21024158

 Kubota D902-T-E4 Engine  Perkins

Stage V/Diesel Engine

Perkins Stage V engines include 14 different engine sizes from 0.5L to 18L and ranging from 8 to 630 hp.

• Offers an output of 24.8 HP at 2,800 to 3,200 rpm and a maximum torque of 57.5 lbs.-ft. at 2,000 rpm without the need for aftertreatment • Mechanical fuel injection system

• Seven new Stage V models include the 1700 Series, 2200, 2400, 2500 and 2800 Series and Syncro 2.8L and 3.6L

• Turbocharger enables use in applications at high altitudes

• 1706J-E93TA 9.3L Stage V/Tier 4 Final engine offers a high-power output of up to 456 hp

www.forconstructionpros.com/21028914

• Upgraded Syncro 1.7L offers a torque increase of 34% and power increase of 24% • 1204J-E44TTA 4.4L delivers up to 200 hp (+15%) and a 5% improvement in fuel consumption plus a reduced cooling package size for easy integration into equipment www.forconstructionpros.com/21006248

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The D902-T-E4 three-cylinder, 0.9-liter, turbocharged, Tier 4 Final diesel engine is designed for use in compact excavators, mini-track loaders, trenchers, welders, utility vehicles, power sources and more.

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• Offers the same footprint as the naturally aspirated D902-E4 mechanical engine

WANT MORE PRODUCT INFO?

USE THE EIGHT-DIGIT CODE

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.

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MULTIQUIP & HATZ:

A POWERFUL COMBINATION For rental operators, having confidence that equipment will perform, with minimal downtime, is a key factor in deciding fleet investments.

Multiquip, likewise, weighs engine selection heavily while designing equipment. This mutual requirement for performance and reliability are core reasons why Multiquip selected Hatz Diesel engines for its high-end dewatering pumps and concrete finishing equipment. Multiquip Inc. is recognized within the rental industry for a diverse product range that is utilized in a variety of construction and industrial applications.

The Multiquip MQ600 is the company’s highperformance 6-inch trash pump. A workhorse for construction, municipal and industrial applications, the pump can be found on sites all across the Americas – from Alaskan mining operations to the Panama Canal. When the company needed to repower the pump, it selected the Hatz 4H50TIC diesel

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engine for its compact, high torque, fuel efficient design. The powerful, 4-cylinder, turbocharged engine is ideal for the continuous duty applications common to pumping.

MQ Whiteman power trowels are recognized as the leader in concrete finishing equipment. As concrete finishing practices evolve and the size of flatwork jobs continue to increase, the finishing crews expect more from their ride-on trowels. Two MQ Whiteman ride-on trowels, the 8-foot wide HTX6H and the 10-foot wide STX6H, are equipped with the Hatz 4H50TIC turbo diesel engine.

The engine was the first engine to be

installed on a ride-on trowel to comply with US EPA Tier 4 final emission requirements. Powerful and reliable, the engine drives a proven hydraulic system that turn the machines twin rotors and enables operators to break open a fresh concrete slab and provide the final burn needed for industrial floors.

www.hatznorthamerica.com

O

M

E T s h w q c m is

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9 12:03 PM

Our After-Market Support Has You Covered!

Maximizing Uptime...Minimizing Downtime Even the most reliable engines have days where immediate attention is required.

That’s why Hatz has systems in place to take care of problems quickly and keep down-time storm clouds away. Hatz Diesel’s worldwide organization of distributors and dealers has highly-trained technicians, parts and technical support covering North America and the world. Our parts distribution system is designed to get the correct parts to Hatz customers quickly and efficiently. And Hatz H-series interchangeable parts adds to the assurance the correct parts will be readily available when and where they’re needed. With Hatz aftermarket support, customers will have everything they need to make sure the sun is always shining on our highly reliable engines.

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7/31/19 9:05 AM

INDUSTRY UPDATE

Minnich Adds Farrell Equipment & Supply to Midwestern Dealer Network

Minnich Manufacturing, a manufacturer of concrete dowel pin drills, concrete vibrators and vibrator monitoring systems, has added Farrell Equipment & Supply Co. to its dealer network in Wisconsin and Minnesota.

For more than 50 years, family-owned Farrell Equipment & Supply Co. has been a trusted provider of construction equipment, tools and supplies. Farrell comprises seven locations in Eau Claire, La Crosse, Madison, Rochester, Wausau, Appleton and St. Paul.

Each Farrell location now carries the Minnich Stinger electric flex shaft concrete vibrator. The 14.5 lb universal motor can drive the full line of Minnich vibrator shafts and heads from 3/4 in. to 2½ in., and it comes standard with a quick disconnect that adapts to the vibrator shafts and heads of many other manufacturers.

“We’re excited about the addition of Farrell to our dealer family. They share our commitment to offering the best in equipment and service,” says Rob Minnich, president and chief marketing officer at Minnich. “Like us, they celebrated their 50th anniversary in 2018. We look forward to a long partnership, and bringing high-quality equipment to Farrell customers for years to come.”

In addition to carrying the Stinger, Farrell will have access and authority to sell all Minnich products, including concrete dowel pin drills, concrete vibrators and vibrator monitoring systems.

JOHN DEERE CONSTRUCTION & FORESTRY BUILDS NEW ILLINOIS TRAINING FACILITY John Deere recently completed the construction of a 7,500-sq.-ft. facility in Coal Valley, IL, to better meet internal training demands, along with supporting customer visits and events. The building is part of the Construction & Forestry Training Campus and includes three classrooms that can be used separately for training purposes, or combined to hold over 250 people for larger events.

In addition, there is nearly 4,000 sq. ft. of covered canopy space for outdoor training and equipment walkarounds.

“The primary function of this new facility is to provide much-needed additional classroom space for dealer sales staff and technician training,” said David Reilly, manager, worldwide training, John Deere Construction & Forestry. “Training is a core part of our program, but beyond that, the C&F Coal Valley Training Campus also hosts other important events throughout the year.”

The facility will also include a John Deere simulator – further bridging the gap between the classroom and jobsite. Onsite events include customer-specific activities where they can demo equipment and interact with John Deere experts.

“With this new facility customers and dealers can walk out of the classrooms and directly into the demonstration area,” said Tim Hilton, manager, demonstration sites, John Deere Construction & Forestry. “We’re excited to share this new experience with dealers, technicians, customers, and media.”

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INDUSTRY UPDATE

H&E Opens 96th Location With

New Facility in Prineville, OR Effective July 1, 2019, H&E construction equipment.

Equipment Services Inc. (H&E) The branch specializes in aerial opened its newest branch in lifts, telescopic forklifts, earthmoving Prineville, OR, the 96th machinery, and general location nationwide. construction equipment “We’re an and represents these The new location is at 2541 SW High Desert equipment manufacturers: Atlas Drive. It provides full-serCopco, Bomag, Club Car, company, vice coverage to customers Gehl, Generac, Genie, in central Oregon. The Hyundai, JCB, JLG, John run by 23,500-square-foot facilDeere, Laymor, Lincoln, equipment ity sits on 5.5 acres with MEC, Miller, MultiQuip, a fully fenced yard area, Polaris, Skyjack, Skytrak, people.” offices, parts warehouse, Sullair, Takeuchi, and a repair shop with six UniCarriers, Wacker bays. The facility is capable of servicNeuson and Yanmar. ing a variety of general industrial and “After successfully maintaining an on-site rental yard since March 2018, we are very excited to take the next step and establish a full-service facility in Prineville. Customers can count on us for quality equipment, excellent product support, and a friendly, professional staff. When customers call, we strive to provide a solution before we wrap up the conversation,” said Lee Anderson, Prineville branch manager. “As our slogan says, ‘We’re an equipment company, run by equipment people.’ Although our Video is streamed directly to any mobile Mobile device not included resources are vast, we understand the device which can be used as your monitor importance of tailoring our business The compact eCAM Ace 100-Micro delivers everything to meet the needs of local customyou need to perform quick inspections in pipes ranging from 1-1/2” to 3” dia. and up to one ers. I’m confident that central Oregon hundred feet in length. Weighing in at only 15 Single Button can truly benefit from our business pounds makes this camera perfect for easy Wi-Fi Hub model, experience, and resources.” portability. The system comes equipped with a 512Hz transmitter and a resettable on-screen In addition to equipment rentfootage counter. Audio & video can be recorded als, the facility provides new and to your mobile device as well. Files are saved on your device and can be transferred via used equipment sales, in-shop and email, text or the Cloud. Its compact size and portability make this mobile service, comprehensive parts camera user-friendly for contractors, plumbers and homeowners alike. availability, training, and other valueadded services.

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JLG LAUNCHES NEW ONLINE EXPRESS PLATFORM JLG Industries Inc. is launching a new version of its online parts ordering system. The upgraded Online Express will provide customers with an easy-to-use interface offering several new enhancements accessible via mobile, tablet and desktop devices.

“JLG is constantly evaluating customer feedback in order to provide a quick, convenient purchasing experience,” said Travis Myers, JLG director of product support. “The improved Online Express is an efficient, userfriendly purchasing tool for customers to order parts for their entire fleet.”

Some key features of the new Online Express include: ■■ Enhanced search capabilities by part, description or serial number ■■ New shopping cart for viewing

orders and improving checkout ■■ Interactive manuals are now mobile friendly and can be searched by serial number ■■ Administrator features that allow customers to add and manage their own users ■■ New shopping list feature makes common parts reordering faster and easier ■■ Freight quoting provides visibility to parts availability and entire order freight costs Myers added, “Online Express helps customers place orders from anywhere using any device, and now

features an intuitive user experience, enhanced site navigation and simpler reordering of parts.”

For more information about Online Express, visit onlineexpress.jlg. com. For more information about JLG, visit the website at www.jlg.com.

For more information, visit www.forconstructionpros.com/21077467

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7/31/19 11:58 AM

INDUSTRY UPDATE IPAF

CEO OF GLOBAL POWERED ACCESS EQUIPMENT ORGANIZATION TO STEP DOWN Tim Whiteman will be stepping down, effective immediately, from his role of managing director and CEO of the International Powered Access Federation (IPAF) after 15 years in the position. Former IPAF President Andy Studdert will act as interim CEO to provide continuity while the search for a replacement is conducted.

The IPAF Board recruited Whiteman in 2004 to take on the challenge of making the organization a truly international player. At the time, the Federation, founded in 1983, had reached around 400 members, most of whom were in the UK, and earned 95% of its revenue from the region. Today, more than 45% of income is from outside of the home market, despite continued growth in UK membership. IPAF currently boasts almost 1,400 members in nearly 70 countries.

About his departure, Whiteman stated, “It has been a privilege to work with the dedicated IPAF members and team members around the world. The passion to deliver the safe and effective use of powered access motivates so many people, and IPAF shares their knowledge and experience to help keep people safe.

However, after 15 years, I’m looking forward to a change, and I thank the Board for its support in making this happen.”

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Wacker Neuson Names New President & CEO The Wacker Neuson Group has appointed Gert Reichetseder as president & CEO – North America effective July 1, 2019. This addition to the Wisconsinbased Executive Management Board demonstrates the importance of the growing North American construction and agricultural machinery market to the global organization, while strengthening local leadership and ongoing commitment to the United States and Canada.

Reichetseder has served as commercial director of Wacker Neuson’s largest production plant in Linz, Austria since 2011.

His successful international career includes several senior-level positions with Engel Global.

As part of his new role, Reichetseder will act as spokesperson for the North American Executive Management Board, which includes Johannes Schulze Vohren, executive vice president Sales & Marketing North America, and Ryan Gile, executive vice president Operations & COO North America.

“This is a big transition for me and my wife,” said Reichetseder, “as I am changing my home base from Austria to Milwaukee after having been in charge of our Linz facility for the past eight years. However, the potential of Wacker Neuson in North America reinforced my decision for this new assignment.”

This latest move supports Wacker Neuson’s 2018 realignment of Menomonee Falls, WI production facilities, which now includes Will Wright as vice president of Product Engineering and Purchasing and Raimund Lindner as vice president of Manufacturing and Production Administration.

The company is confident that it is now strategically positioned to seize market opportunities and optimally serve regional customer needs in North American region.

“Our main goals are growing the market share of Wacker Neuson core products in North America and globally,” Reichetseder commented. “My focus and energy will be directed toward our customers and our valued employees, as these two groups are the reason Wacker Neuson exists.

www.ForConstructionPros.com/RENTAL

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A HISTORY OF SERVICE AND SUPPORT TO THE RENTAL INDUSTRY

For more than 150 years, DEUTZÂŽ engines have supplied customized, cost-effective power to a broad array of machine types and market segments. In fact, DEUTZ produced its nine-millionth engine in 2015. However, while we may have manufactured millions of engines over the years, we continue to nurture an ever-evolving innovative spirit.

That innovative spirit means that DEUTZ is always one step above the competition, developing new, more efficient engine technologies.

From its headquarters in Norcross, Georgia, DEUTZ Corporation, a subsidiary of DEUTZ AG, supports a product range of 25-to-830-hp diesel and natural gas engines, serving as a sales, service, parts, and application engineering center for the Americas, employing nearly 300 people.

DEUTZ Corporation also operates

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a value-added production facility for some of its key OEM customers, as well as an engine remanufacturing facility, in Pendergrass, Georgia.

DEUTZ Power Centers and Service Centers were launched in 2016, serving as one-stop shops for supporting OEM partners, end users, and rental companies with quick and reliable access to DEUTZ Genuine Parts, highly trained service, DEUTZ Xchange remanufactured engines, and new engines.

The company operates with the premise that productivity and profitability are on the line each day for all of our customers. That’s why every person in the organization comes to work each day with one central purpose: to help rental customers grow their businesses by providing them with the service and support they deserve.

(770) 564-7100 www.deutzamericas.com

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INDUSTRY UPDATE

DOOSAN BOBCAT ANNOUNCES OPENING OF NEW GLOBAL COLLABORATION CENTER IN MINNEAPOLIS Global compact equipment supplier Doosan Bobcat has announced the opening of a new Global Collaboration Center in downtown Minneapolis, MN. The center will house some elements of the company’s global functions and provide a central meeting location to allow those teams to work closely to accelerate innovation and collaboration.

This news follows the company’s recent announcement of a global organizational structure and the appointment of global function leaders.

“The Global Collaboration Center will further advance the pioneering spirit of Doosan Bobcat by paving the way to new levels of innovation and success,” said Scott Park, Doosan Bobcat CEO. “Our future is exciting, and the collaborative nature of the center will move us farther and faster.”

America headquarters in West Fargo and other facilities in North Dakota.

Park said he is enthusiastic about the center’s location, as he believes it will provide a greater connection to new skill sets and top talent to complement the company’s current teams.

“The Global Collaboration Center will further advance the pioneering spirit of Doosan Bobcat by paving the way to new levels of innovation and success.”

“Minneapolis has long been recognized as a hotbed of technology and engineering talent,” said Park.

“We’re excited for Doosan Bobcat to become a part of this vibrant community and contribute to its innovative spirt with our growing team of professionals.”

The company serves a worldwide market and offers manufacturing, parts distribution, research and development, engineering —Scott Park, and sales facilities all Doosan Bobcat CEO around the world, including the Czech Republic, France, Belgium, China, Singapore, Australia, India and throughout the United States.

The 10,600-sq.-ft. office space provides Doosan Bobcat North American operaa collaborative, innovative environment tions are based in North Dakota, with and features open work areas with administrative, sales and marketing modern finishes and a variety of work offices in West Fargo, and production spaces. In addition, it has six meeting and engineering facilities in Gwinner, and conference rooms with AV packBismarck and Wahpeton, ND, and ages, along with a team room, huddle Litchfield, MN. In addition, the comareas, community space and a hospitalpany’s Acceleration Center – a facility ity area for guests. focused on engineering, research and The downtown Minneapolis location development, training and product was selected due to its convenience and testing – is in Bismarck. ease of accessibility for global employees The company has also announced and visitors via the nearby Minneapolis – intentions to open a digital business St. Paul International Airport. In addition, innovation center in downtown Fargo, the center is within a short drive or ND, in the fall of 2019. quick flight from Doosan Bobcat’s North

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Skyjack National Accounts Manager Dave Lillquist Dies at 57 David “Dave” Arthur Lillquist, 57, of Phoenix, AZ passed away on June 8, 2019. He was a national account manager for Skyjack Inc. for the past five years.

Dave is survived by his sons Magnus & Henrik, wife Amy, father Arthur, brother Keith, and sister Karen. Dave also leaves behind many more family members and friends.

According to a press release from Skyjack, those who knew Dave know that he was an honest and jovial man who loved to make people smile. He was also a very dear friend and coworker although, with Dave’s vibrant personality, working with him never did feel like a job.

“He was always professional, diligent, and above all, honest.

He built relationships with coworkers and clients, which turned quite easily into friendships,” the release says. “We at Skyjack offer Dave’s family our deepest condolences during their time of grief. We hope that Magnus and Henrik can find some solace in knowing their father was a great and successful man.

Dave will be missed dearly and live in the hearts of many for many more years to come.”

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EYE ON RENTAL // B y

Dick Detmer

Equipment Rental Businesses Should Prepare Now for Potential Obstacles

S

ince the theme of this issue of Rental is the annual “Business Survival Guide,” it was suggested that I provide my thoughts and opinions on survival in the rental industry today.

This is only my opinion, but I see some ominous signs of change. I feel that politics and the upcoming elections could have a negative impact on small business owners. Perhaps even more worrisome is the uncertainty surrounding government policy.

Regardless of one’s political views, it’s tough to argue with the fact this can cause U.S. business growth to grind to a halt. Somehow, even with plenty of current turmoil, many experts are forecasting continued growth.

In times like this, it’s wise to remember that what goes up, must come down. Even though the current U.S. economic expansion has lasted over 120 months (which is the longest in history), interest rates are very low, the stock market has hit new record highs and there are many other very promising signs, I just don’t believe it’s healthy for U.S. businesses to expect the decisions some of our leaders are or will be making won’t harm us all.

We should all prepare for the worst and hope for the best in the months and years following not only

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Photo: H&E Equiopment Services

Beware of governmental policy changes that could threaten the health of the U.S. economy

the presidential election and U.S. House and Senate races, but also the state and local contests. It’s my opinion that politics can often have a negative impact on small businesses. I feel, for example, that a heavy burden might be placed on rental companies if some of the ideas being promoted by some presidential candidates are enacted. I believe business owners often pay the bulk of hefty new initiatives and small businesses sometimes lack the reserves to take the prolonged hit of huge new government spending programs. Even if the significant increase in over spending doesn’t materialize after the upcoming election cycle, in time it’s likely to happen. So, regardless of your political leaning, get involved by at least letting your representatives or potential representatives know where you stand on issues. Consider doing so as an important survival strategy.

More headwinds Another potential economic headwind facing independent rental companies is that of increasing competition. Some strong equipment distributors, manufacturers and others related to these are growing their own rental businesses and independents are definitely feeling the squeeze in some markets.

As I’ve mentioned in the past, for the sake of business survival, it’s important to take the large rental chains seriously. Don’t underestimate their ability to take more market share. Independent rental companies should become even hungrier for more business. They should also intensify their search for

new products and services that make them different from all competitors.

Remember to explore and seize opportunities that often arise out of dramatic change in your market area.

When some companies are contracting and/or closing a rental business, it might be a good time to consider expanding your company. As long as independents can adapt to change and are committed to excellence, there will be a strong need for them.

Another of my concerns is there are so many young rental business operators who haven’t yet experienced a serious economic downturn, and some might be unprepared for the shock. One might think they are prepared but some storms are more violent than anticipated.

Avoid complacency Try not to take the just “stand by and wait to see what happens” approach. Once you see what happens, it’s often too late to do anything about it. Instead, be proactive by strengthening your business now.

During any period of economic and/or geopolitical trouble, business survival and expansion will depend on solid preparation in a wide variety of areas. Just a few of these include having well-established, adhered-to, and wise company processes and procedures; adequate capital reserves to withstand a possibly prolonged period of adjustment; and a laser-like focus on equipment, facility, personnel, financial and marketing efficiency.

I have full faith that the wellprepared independently owned and operated rental companies will survive and thrive.

Dick Detmer is a nationally recognized consultant, lecturer and writer with almost 40 years of experience in the equipment rental industry, including 30 writing the Eye on Rental column for Rental. For consulting, training or to order one of his books, visit www.detmerconsulting.com. Dick can be reached directly at dick@detmerconsulting.com or at (309) 781-3451. www.ForConstructionPros.com/RENTAL

7/31/19 9:37 AM

“ DEUTZ GETS THAT OUR BUSINESS IS 24/7.”

– Brian Bost, Branch Manager, Aerial Work Platform Branch Sunbelt Rentals, Inc., Houston, Texas DEUTZ Corporation understands that the rental business is 24/7, and customer expectations are high. Productivity is always on the line.

That’s why we strive to be a valuable partner to the rental industry, by providing solid engine design, reliable parts support, dedicated technical service training, and proprietary diagnostic systems.

We work hard, because you do.

DEUTZ Corporation

3883 Steve Reynolds Boulevard | Norcross, Georgia 30093 770.564.7100 | www.deutzamericas.com

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Rental focused Rental strong Our commitment to the highest standards in the products we make, personalized services we offer, and our global distribution network, is the Rental Channel’s guarantee of satisfaction and our pledge to help maximize your ROI.

www.perkins.com/rental

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