340625 july 2014 by Associated Equipment Distributors

July 2014

www.cedmag.com

Dig In

To Your Market

O annuall Attachments Our Att h t Buyer’s B ’ Guide shows you y more than 30 new p products roducts that can boost sales and customer productivity. productivity y.

Plus: 18 Sell off obsolete parts and expand your brand on eBay 24 Homebuilder fights to curb regulatory overreach 52 Case dealer gets tech savvy with college partnership Since Sinc Si nce e 19 192 1920 20 2IÀFLDO 3XEOLFDWLRQ RI 2IÀF 2I ÀFLLDOO 3 3XE EOLFDWWLR LRQ Q RI

www.aednet.org

W O H E E S

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Contents

Award Winning

JULY 2014 Editorial Team Executive Editor and Director of Programs KIM PHELAN kphelan@aednet.org Contributing Editor JOANNE COSTIN pr@aednet.org Graphic Production EVA BELMONTE design@aednet.org eva@neggie.net

Vol. 80, No. 7

FEATURES

COLUMNS

President’s Message 5

Sold O n

Give young leaders the “one thing” they need most.

Editor’s Note 7 Serendipity here, there, and everywhere

On the Numbers 55 Financial engineering you can easily attain.

Columnists GARRY BARTECKI Financial Consultant to the Construction Equipment Industry CHRISTIAN KLEIN AED Vice President of Government Affairs ELI LUSTGARTEN ESL Consultants RON SLEE R.J. Slee & Associates

ventory eats into the profits of virtually rship. Obsolete or unused inventory carries cost of the products themselves, the loss of sh and the ongoing holding costs When

Sold On eBay 18

Hawthorne Cat has incorporated eBay into its overall sales strategy with its own eBay store presence, and has already doubled its 2013 results in the first half of this year.

‘As Housing Goes, So Goes the Nation’ 24 Delaware homebuilder Kevin Kelly, 2014 Chairman of the National Association of Home Builders, talks policy, mortgages, and the need for context and common sense.

Aftermarket 59 Customers’ Top 2 non-negotiables

Washington Insider 61 You’re the host with the most for elected officials..

DEPARTMENTS

Vice President–Sales/ Publisher DAVID W. GORDON 800-388-0650 ext. 334 dgordon@aednet.org

Inside AED Groundwork Industry Beat Advertisers’ Index Dealer Data

Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 311 aramirez@aednet.org

600 22nd Street, Suite 220 Oak Brook, IL 60523 630-574-0650 fax 630-574-0132 www.aednet.org

Smoothly scaling succession obstacles, all in the family

FROM THE COVER

Advertising Contacts

Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org

Just So You Know – an occasional guest column 57

Dig In To Your Market 28 Attachments Buyer’s Guide features great products on the market now to help improve jobsite efficiencies and your bottom line.

Artist Captures the Drama, Strength of Construction on Canvas 48 Fine-art painter Brad Burns celebrates the machines and the scenes of our industry.

9 12 14 63 64

Plus: What Would You Do If It Happened To You? 44 Best Practices: The Power Of Being Wanted 52

July 2014 | Construction Equipment Distribution | www.cedmag.com | 3

President’s Message President & CEO - BRIAN MCGUIRE Associated Equipment Distributors Oak Brook, Ill.

Every Young Leader Needs One Thing, and We’ve Got It

Executive Vice President & COO ROBERT HENDERSON Associated Equipment Distributors Oak Brook, Ill.

OFFICERS

Chairman - TIM WATTERS Hoffman Equipment Co., Piscataway, N.J.

Nothing can take the place of the education and experiences of Leadership Academy.

Vice Chairman - DON SHILLING General Equipment & Supplies, Inc. Fargo, N.D. Sr. Vice President - WHIT PERRYMAN Vermeer Equipment of Texas, Inc. Irving, Texas Vice President - RICK VAN EXAN Toromont Industries Ltd. Concord, Ont., Canada Vice President - WES STOWERS Stowers Machinery Corp. Knoxville, Tenn. Vice President of Finance MICHAEL D. BRENNAN Brandeis Machinery & Supply Co., Louisville, Ky. Past Chairman - MIKE QUIRK Wagner Equipment Co. Aurora, Colo.

AT-LARGE DIRECTORS

TODD BACHMAN Florida Coast Equipment, Inc. Boynton Beach, Fla. RON BARLET Bejac Corp. Placentia, Calif. DENNIS J. HELLER Stephenson Equipment Inc. Harrisburg, Pa.

LARRY R. MILLER Kelbe Bros. Equipment Co. Inc. Butler, Wis. MITCH NEVINS Four Seasons Equipment, Inc. Houston, Texas MIKE ROONEY Thompson Tractor Co., Inc. Tarrant, Ala.

REGIONAL DIRECTORS

RYAN GREENAWALT Midwest Reg. Alta Equipment Co. Wixom, Mich.

TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. Burnaby, B.C. PATRICK W. MCCONNELL West Reg. Clyde/West, Inc. Portland, Ore. CHRISTOPHER PALMER Northeast Reg. Wood’s CRW Corp. Williston, Vt. GILES POULSON Rocky Mountain Reg. Faris Machinery Co. Commerce City, Colo. JAY RODES, Southeast Reg. Wilson Equipment Co. Lexington, Ky. RICK VAN EXAN Eastern Canada Reg. Toromont Industries Ltd. Concord, Ont. GARY D. VAUGHN South Central Reg. OCT Equipment, Inc. Oklahoma City, Okla.

BY BRIAN MCGUIRE

Some people can look back at their past and trace their present success to one big event or decision, or to one chance encounter or one special mentor – but that “one thing” is probably the exception rather than the norm. For most of us, success results from all those things stacked together. One of the first things I decided to do in my new role as AED’s president and CEO was to focus on the one thing that could actually help create a tall stack of resources that would quickly add up to very tangible business success for people in the equipment business: That one thing is AED’s Leadership Academy. When you add up all the education and experiences we build into this 48-hour conference for young leaders, you wind up with a solid stack of takeaways that no future owner or executive should be deprived of. In other words, the ONE THING your company’s rising stars need most is the big lineup of benefits found at this event. utside – There’s no substitute for getting outside of their routine, outside of the business; of course, there’s never a good or easy time to break away, but getting away for personal development is critical for business success. etwork – Everyone in this business needs a peer network, a go-to group of people they’ve become friends with, who they trust and can shoot a text to or call anytime. Where else but AED Leadership Academy is your son or daughter or other future leader going to be able to find that industry foundation of people their own age? mployees – Today’s young leaders care very deeply about good culture and creating happy employees who will play it forward and create happy customers. We’re placing substantial emphasis on this area to help them keep building strong business culture when they become the decision-makers. ools – Our aim is not just to inform but to actually engage with attendees, answer

their questions about real stuff they’re dealing with and provide application that is as relevant the day they get back to the office as it sounded when they were hearing it. elp – Building on that notion of tools, our presenters are not only subject matter experts, they’re also a bunch of great human beings who keep it real. Young leaders might need help in a wide range of areas, and Leadership Academy provides a safe environment for asking questions. nvestment – I would recommend that you look at this conference as one of the best investments you can make in the future success of your company. And if you happen to be a young leader who has recently taken over the reins of an equipment business, Leadership Academy is for you, too. ew – What’s new, you ask? Well for starters, I decided that holding the conference in August would open up some great opportunities for fun. So, from the time our participants arrive on Tuesday, Aug. 26 till the time they depart on the afternoon of Thursday, Aug. 28, they will be able to enjoy a great round of golf, a patio reception and barbeque party with live music from local favorites Frank & Dave, as well as a fantastic boat party downtown on the Chicago River with architecture narration, open bar, excellent food and unbeatable company. row – In the end, this is what it’s all about. Make them ready, build their confidence, and encourage them to be the leader everyone needs them to be and the leader they want to become. I take this event very seriously, and I want you to do the same. It’s definitely the one thing you can do this year to create lasting results. (aednet.org/leadership)

BRIAN MCGUIRE (bmcguire@aednet.org) is president and CEO of Associated Equipment Distributors.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 5

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Editor’s Note

My Serendipity Is Good Fortune For You Come and see the future of our industry – and expect the unexpected. BY KIM PHELAN

Today, I’d like to talk about later the couple had brought her back serendipity. Once in while, isn’t it nice due to some allergy or something. Tracy when some pleasant little surprise said to me, “They felt so bad about walks up behind you, taps you on the bringing her back that they let me shoulder when you least expect it and keep $500. I can now sell her to you says, “Here’s a gift for you, something for $500 if you’re still interested.” Ok, to brighten your day.” now maybe I’ve been under too much Let me give you an example from stress lately, but I’m not ashamed the Life of Phelan. About two months to tell you that as soon as I hung up ago, we resurrected the subject of a the phone I walked outside and had dog in my household. It’s been about a good old-fashioned cry-fest while a year since we lost our Welsh terrorist, giving the happy news to my family. It’s I mean terrier, and my daughter was now three weeks later, and our baby beginning to push my puppy but“Millie” is one spunky little bundle of joy. ton. My weakness when it comes to canines is a special breed of little devils We’re On a Roll called wire fox terriers, a combination If you haven’t turned the page yet, of adorable, smart and comedic. I had retching from all this puppy mush, I’ve resolved years ago during the pregot another serendipitous story for vious reign of terrier that if ever I were you – and this one, I promise, is all foolish enough to indulge once more about you. in puppy-parenthood, it would have to I’ve been knee-deep for several be a wire. months organizing the agenda for So, I started putting feelers out, visitthis year’s Executive Forum, Sept. ing websites and e-mailing breeders. It 18-19, and one highlight I’m espehad been over two decades since I cially excited about is a keynote on had bought a wire pup, so I wasn’t environmental extremism with Phelim prepared for the price tag of $1,200 McAleer, the investigative journalist for the little tike I located about an who produced the awesome docuhour from our home. Even when the mentary, “FrackNation.” We’re going breeder, Tracy, came down to $1,000, to view the film over the lunch hour my inner cheapskate (as well as my and then hear from McAleer himself! Ladies and gentlemen, it’s going to be bank account) could not justify this kind of expenditure right now. So, I ex- outstanding! But then serendipity struck – again. plained that $500 was really my outer Thanks to a visit this spring from AED limit, parted on friendly terms with President Brian McGuire to several Tracy, and regrouped with the family dealers in Birmingham, Ala., AED to determine our next move. Shelter learned about the incredible battle visits and other breeder conversations one of our members has been wagdidn’t go well, and a week of disaping against antigrowth environmental pointment passed. groups that have succeeded in halting Then the phone rang. numerous highway projects throughIt was Tracy. She had sold the pup out the South. last weekend, she said, but two days

That dealer is Mike Thompson, owner of Thompson Tractor, the Cat dealer in based Birmingham. Just the other day Mike agreed to come to Forum and share with all of you his incredible story of why he did it and what will happen to the country and our industry if this powerful, well-organized and wellfunded force is not dealt with. One more story and I’m done. One of my Forum speakers cancelled on me a couple weeks ago, and that is a phone call no content planner ever wants to receive. But I got another surprise – my friend Rob Park at Capistar, did an amazing thing and connected me with someone who’s going to be absolutely phenomenal. I got to meet Steve Leonard on the telephone a few weeks later – Steve is president and CEO of American Truck & Bus Inc. in Annapolis, Md., and also teaches business at University of Maryland. He’s going to come to Forum and talk to us about getting more profitable results in our distribution companies, and he’s a guy who walks the talk. I know you will take a boatload of application home after hearing and later visiting with Steve. Clearly I could go on and on. Bottom line, please don’t miss Executive Forum – put yourself in serendipity’s path and watch for the “ah-ha’s” to light up your mind. But, tempting as it may be, just don’t start to cry. Thanks for reading. KIM PHELAN (kphelan@aednet.org) is the executive editor of Construction Equipment Distribution and director of programs for AED.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 7

Inside AED

Inaugural Meeting of AED’s New Manufacturer Advisory Council Sets Stage for Change Council to focus on ensuring value for manufacturer members. As the new president of AED, Brian McGuire is asking a lot of questions, and none are more important than those centered around AED’s manufacturer members. “Since 2008, manufacturers have not participated in AED at the level they once did,” said McGuire. “We need to ensure that we are delivering value to our manufacturer members and that we are providing the best program and services to support a successful network of dealers. The AED President’s Manufacturer Advisory Council is the first step in that process.” At a meeting held in early June, McGuire assembled a cross section of manufacturers to address their needs and start a conversation with AED management and current Chairman Tim Watters. David Combs, co-chair of the Council, and senior manager for MTU America Inc., commented on the meeting, which started off with a review of all that AED does for dealers. “As manufacturers, we tend to focus on what happens David Combs at Summit and CONDEX and then forget about what AED does the rest of the year,” said Combs. “It was very interesting to myself and the other manufacturers to learn what AED does for our dealers and distributors. Unanimously, all of the 15 manufacturers in

attendance agreed that AED is a viable organization and that a strong AED is good for dealers, manufacturers and the industry.” Top on the manufacturers’ agenda was greater attendance at Summit and CONDEX, as well as AED’s Executive Forum. “It was clear our initial focus should be to add value to CONDEX and Summit,” said Combs. “It’s critical to all of AED’s programs that we get our events back on track,” he continued. AED will take the ideas shared through the President’s Manufacturer Advisory Council and use them to reinvent and reinvigorate AED’s major events, with the most significant changes coming in 2016. The Council agreed to meet twice a year, with the second meeting to be scheduled at Summit 2015 in Orlando. Ideas will continue to be developed throughout the year and will be discussed at length in February. Based on the meeting, some future topics that the Council might tackle are recruitment of technicians and the impact of a growing rental business on the manufacturer-distributor relationship. “We’re very fortunate to have a dedicated group of manufacturers who are committed to AED’s success and recognize the value we have to their dealers,” added McGuire. “We look forward to making AED everything it can be – for all our members.”

New Legal Service for AED Members ‘Call Counsel!’ gives all AED members free access to AED’s general counsel, Michael Airdo at Kopon Airdo, LLC Last month, AED rolled out a new benefit exclusively for AED member companies – Call Counsel! is a free, completely confidential hotline staffed by attorneys from the Chicago office of Kopon Airdo, LLC, with a network of attorneys nationwide. Callers receive immediate guidance on commercial, employment, and litigation-based legal questions, enabling them to evaluate possible courses of action – and to understand the ramifications of such

actions – when a legal situation arises or is looming. How It Works

Michael Airdo

An AED member calls the hotline (312-506-4480) with a legal question. The caller will reach Michael Airdo or another Kopon Airdo professional. (continued on next page)

Proposed New Member Kello-Bilt Inc. Red Deer County, Alberta This list is published each month as required by AED bylaws. Comments on the applicants should be directed to AED President and CEO Brian McGuire 800-388-0650, ext. 326. July 2014 | Construction Equipment Distribution | www.cedmag.com | 9

Inside AED

The caller will be asked to summarize his or her question, and the lawyer will determine whether the question is within the purview of the legal work of the firm. For example, questions about divorce, child custody, and criminal questions, among others, are not part of the program.

The Kopon Airdo attorney will respond to the question with an overview of the particular law(s) most applicable to the situation. The attorney will also provide guidance about the method of approaching the problem, investigating the issue, and/or developing corrective strategies.

If the question is beyond the scope of the Call Counsel! Program, the attorney will advise the caller to retain independent counsel. Next Steps To connect directly with an attorney from Kopon Airdo, call Michael Airdo at (312) 506-4480. In addition to the Call Counsel! Program, AED members are encouraged to use the Kopon Airdo website (www.koponairdo.com) as a resource for educational articles and materials.

Please Read The Call Counsel! Program is not intended to provide a determinative answer as to whether a specific adverse action should be taken. Before a legal decision is made, your company should consult with and/or retain licensed counsel in your jurisdiction. In contrast, the Call Counsel! Program provides an excellent opportunity to obtain general information about a broad range of subjects. For example, while the hotline cannot be used to determine whether it would be discriminatory for a particular individual to be denied a promotion, you can ask about the factors to consider when evaluating possible claims relating to the denial of promotion. Similarly, while the hotline cannot be used to determine whether a particular individual must be reinstated after a medical or family and medical leave, it can be used to provide information about when the law requires that a medical or Family Medical Leave Act covered leave be granted and factors to consider when evaluating reinstatement. While Kopon Airdo, LLC, cannot approve an adverse employment action or give legal advice regarding a specific matter through the Call Counsel! Program, it often can provide a general legal overview or explain why a contemplated course of action is risky and could expose you to costly liability.

Attachments

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Attachments for compact utility tractors.

Find more attachments, specs, videos at

Inside AED

MARK YOUR

CALENDAR

For information on any upcoming AED events, visit www.aednet.org or call 800-388-0650. Aug. 17-20

Sept. 18

2014 APWA International Public Works Congress and Exposition - Toronto, Ontario

Webinar: Techniques for Creating Effective E-mails - 10-11 a.m. CDT

Burr Ridge, Ill. | Presented by PriSim Business War Games

Presented by Barry Himmel

Oct. 7

Aug. 26-28

Sept. 23

2014 AED Leadership Academy

Webinar: Run Your Territory Before It Runs You: Time Management for Sales Professionals -

Webinar: Delivering an Exceptional First Impression for Receptionists and Others - 10-11 a.m. CDT

Itasca, Ill. Sept. 17 Webinar: Industry Financial Updates for CEOs/CFOs

2 p.m. CDT Moderated by Garry Bartecki Sept. 18-19

10-11:30 a.m. CDT Presented by Don Buttrey

Oct. 20 Webinar: The Customer of the Future: Will they be loyal to you?

Sept. 25 Webinar: Protecting Your Dealership’s Data - 10-11 a.m. CDT

10-11:30 a.m. CDT Presented by Christine Corelli

Presented by Ed Becker and Jim Foote

Oct. 21

Oct. 1-2

Webinar: Service Management – Inspection - 11 a.m.-Noon CDT

AED/Infor Executive Forum

Rosemont, Ill.

Presented by Barry Himmel

Test Drive: The Business War Game for Distributor Executives

Presented by Ron Slee

FASTER. SAFER. SMARTER.

Vacuworx provides the safest heavy-duty vacuum lifting equipment in the industry. Our lifters cut project times in half – with a fraction of the ground personnel required by conventional methods. Vacuworx helps you work... Faster. Safer. Smarter. +1 - 9 1 8 - 2 5 9 - 3 0 5 0 | req u e s ts @ v ac u w o rx . co m | 1 0 1 0 5 E a s t 5 5 th Pl a c e , Tu l s a , Ok l a h o m a 7 4 1 4 6 US A | v a c u wo rx.com July 2014 | Construction Equipment Distribution | www.cedmag.com | 11

Groundwork OFFICERS

Chairman A. ROY KERN Equipment Corporation of America Coraopolis, Pa. Vice Chairman DENNIS VANDER MOLEN Vermeer MidSouth, Inc. Jackson, Miss.

President BOB HENDERSON The AED Foundation Oak Brook, Ill. Treasurer JOHN D. CRUM Wells Fargo Equipment Finance Pittsburgh, Pa. Immediate Past Chairman CHRISTOPHER PERA Highway Equipment Company Zelienople, PA AED Board Representative WES STOWERS Stowers Machinery Corp. Knoxville, Tenn. Executive Director STEVE JOHNSON The AED Foundation Oak Brook Ill.

DIRECTORS

GARY BRIDWELL Ditch Witch of Oklahoma Edmond, Okla. JOHN COSGROVE Central Power Systems & Services, Inc. Liberty, Mo. MIKE HAYES Komatsu America Corp. Rolling Meadows, Ill. TIMOTHY KRAMER Kramer Ltd. Regina, Sask. DR. WAYNE LONGBRAKE Former Dean, Penn. College of Technology Williamsport, Pa SONJA METZLER Ohio CAT Broadview Heights, Ohio DAVID REILLY John Deere Construction Equipment Moline, Ill. KENNETH SILVERMAN Volvo Construction Equipment Shippensburg, Pa. MARK TEEL Caterpillar, Inc. Peoria, Ill. M. KEITH TIPPETT Kirby-Smith Machinery, Inc. Oklahoma City, Okla.

Turning Talk into Action on Career and Technical Education Funding Funding cuts show a disappointing lack of legitimate government support. We continue to hear about the mismatch between job openings and qualified people to fill those positions. But talk is cheap. Funding tells the real story. The Perkins Act provides funding to integrate academic and technical instruction. Perkins funds supplement (not supplant) the educational programs generally offered with state and local resources. From 2002-2011, the Perkins Act was essentially flat-funded at $1.27 billion each fiscal year. In FY2011, Perkins funding was cut by $140 million, an 11 percent reduction to $1.13 billion. In FY2011, Tech Prep, a Perkins-funded program for connecting secondary and post secondary CTE programs was eliminated ($103 million), and basic state grants were reduced by $37 million. In 2013, budget sequestration cut Perkins funding by another 5 percent or $58 million. Congress held hearings on Perkins Act funding in 2014; the approved legislation provided an increase of $53 million for Perkins, to just below pre-sequestration levels. For 2015, the Association for Career Technical Education (ACTE), told us the “ask” from the CTE community to Washington legislators is a $5 million increase that brings funding fully back to pre-sequestration levels. State education funding has fallen, and 44 percent of total U.S. educational spending comes from state funds. In FY2014, 34 states now provide less percapita funding than in 2008; for 13 states, reductions exceed 10 percent. In several states the cuts are more than 20 percent. In

12 | www.cedmag.com | Construction Equipment Distribution | July 2014

15 states, funding continued to fall in the latest school year. There is more conversation about CTE and the skills/jobs gap, but it hasn’t been translated into government initiatives and funding. The minimal “ask” for 2015 funding tends to confirm that status. What Can You Do? There are no easy solutions, but companies needing employees with technical skills and knowledge, such as service technicians, need to develop their “hiring pipeline.” Get the facts on what is happening with CTE funding. On ACTE’s website (acteonline.org) you will find a summary of CTE funding for each state. Make your voice heard on the importance of funding career and technical education with federal and state legislators. Contact them using AED’s Government Affairs website (www.aedaction.org). Lastly, support your local diesel/equipment technology high school and college programs. They need your help serving on advisory boards and committees; your input on curriculum; information on internships, loans, scholarships, and mentoring; procurement of equipment for education such as parts, simulators, training boards and other training aids; student recruitment activities and more. The success of various AED local dealer groups demonstrates what can be done where there is a commitment to technician education and recruitment. Contact Steve Johnson at (630) 468-5134, sjohnson@ aednet.org if you want to do more than just talk about the problem.

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Industry Beat

AED Supports Sustainable Water Infrastructure Act Chairman Tim Watters underscored economic benefits at a June press conference with lawmakers.

AED Chairman Tim Watters, president of Hoffman Equipment, headquartered in Piscataway, N.J., joined Rep. Bill Pascrell and Sen. Robert Menendez in Cliffside Park, N.J., at a press conference June 2 in support of the Sustainable Water Infrastructure Act. (H.R. 4237/S. 2345). The bill, which would attract $5 billion annually in private capital for water infrastructure investment, lifts the state volume cap on private activity bonds for such projects. The legislation will spur economic growth and job creation in the construction equipment industry by generating as much as $6 billion in demand and supporting nearly 1,000 employees over the next decade, said Watters. Water infrastructure investment is a win-win for everyone, including the government. According to an

AED-commissioned study by researchers at the College of William & Mary’s Thomas Jefferson Program in Public Policy, investing $1 in sewer systems and water infrastructure generates $2.03 in tax receipts (including $1.35 for the federal government) over 20 years. “The time is long overdue for substantial investment in water infrastructure projects,” said Watters. “The Sustainable Water Infrastructure Investment Act will create jobs, protect the environment, and grow the economy nationwide while improving the quality of life for New Jersey’s residents and all Americans. The men and women of the construction equipment industry commend Rep. Pascrell and Sen. Menendez and urge immediate congressional action to enact this bipartisan legislation.”

Sentry Again Rated as A+ Superior by Insurance Industry Authority Recently, A.M. Best, the industry’s leading rating authority, reaffirmed Sentry’s financial strength with an “A+ Superior” rating for Sentry Insurance (an AED Preferred Provider) and all insurance subsidiaries. This is the 23rd consecutive year the Sentry Insurance group achieved the superior rating. A.M. Best’s rating is an independent opinion of an

EPA Unveils Climate Change Proposal On June 2, the Environmental Protection Agency (EPA) released details of a proposed rule that will require states to reduce carbon dioxide emissions from fossil-fueled power plants by 30 percent by 2030. The unveiling marks another attempt by the Obama administration to circumvent the legislative process after climate change proposals stalled on Capitol Hill. States will be given flexibility to meet EPA’s new standards (such as by implementing capand-trade regimes), but inaction will result in the agency stepping in. As expected, EPA’s announcement was lauded by environmental and public health groups, but industry groups panned the proposal, citing higher electricity costs for businesses and consumers and jobs lost in the coal sector. AED is coordinating its response to the EPA proposal with allies in various Washington, D.C.-based coalitions.

14 | www.cedmag.com | Construction Equipment Distribution | July 2014

insurer’s financial strength and the ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile. Only 9.3 percent of rated Property and Casualty companies are rated A+ or higher.

New Honnen Equipment Facility

Honnen Equipment, the John Deere dealer headquartered in Commerce City, Colo., announced the June 9 dedication of its new, 60,000- square-foot, state-of-the-art facility in Salt Lake City, Utah. Pictured left to right: Travis Davis, Project Executive, Hughes General Contractors, Inc.; Patrick Leary, Deputy Mayor, Salt Lake County; Sara Welker, Member Relations Specialist, Salt Lake City Chamber of Commerce; Camilla Edsberg, President’s Ambassador, Salt Lake City Chamber of Commerce; Mark Honnen, President, Honnen Equipment; Dave Kolesky, Utah Region sales manager, Honnen Equipment; Shawn Walker, Utah Region service manager, Honnen Equipment; Paul Rasmussen, Utah Region parts manager, Honnen Equipment; Rich Thorn, president, AGC of Utah

Industry Beat

IN THE NEWS

Curry Supply Wins 2014 Governor’s ImPAct Award Curry Supply Company was recently honored with the 2014 Governor’s ImPAct Award for consistent job growth. With more than 700 people on hand at a ceremony held in Hershey, Pa., Pennsylvania Governor Tom Corbett recognized Curry Supply for consistently creating and retaining jobs over the past two years. Mark Ritchey, Curry Supply principal partner (Center), accepted the award. The Governor’s ImPAct Awards recognized 50 companies from throughout the state in five categories: Jobs First, Community Impact, Small Business Impact, Entrepreneurial Impact and Export Impact. The awardees were chosen by an independent judging panel selected by the state’s partners, Team Pennsylvania Foundation (Team PA) and Journal Multimedia. “We are extremely proud to receive this award,” said Jason Ritchey, Curry Supply president. “Our dedicated and hard-working employees are a key ingredient to

Mark Ritchey, Curry Supply principal partner (center) accepts the 2014 Governor’s ImPAct Award from (left to right) David J. Karafa, president, PA Operations, FirstEnergy; Governor Tom Corbett; John D. Moran, Jr., president & CEO, Moran Industries Inc. and Co-Chair, Team Pennsylvania Foundation; and Jeffrey J. Vrabel, Partner and Manufacturing, Distribution and Technology Industry Practice Leader, ParenteBeard LLC.

our growth over the past 80 years. We have hired, and retained, 193 employees in the past two years alone. To be recognized in this way is a huge honor.”

Faris Machinery Grand Opening Faris Machinery’s Colorado Springs branch celebrated the Grand Opening of its expanded facility on May 29, 2014. More than 100 people toured the branch, met manufacturers, checked out the equipment and enjoyed a pancake breakfast. The new expansion increased the square footage of the interior space by 200 percent and included the addition of two-story office and parts storage, a larger machine shop and repair bays. Pictured left to right: Ron Bachmann and Giles Poulson of Faris Machinery, along with Mike Quirk Wagner Equipment (AED’s 2013 Chairman), and Steve Kearney (Colorado Springs Business Alliance). IronPlanet recently launched allEquip. com, an online, “buy now” marketplace of used construction equipment for sale at competitive prices. TECSYS Inc., announced that HOLT CAT, the largest Caterpillar Dealer in the U.S., has selected TECSYS’ warehouse (WMS) and delivery management solutions to optimize its service parts operations and provide improved service to customers across the state of Texas.

The U.S. aerial work platform rental market rebounded in 2013 with strong growth of 9 percent to reach approximately $7.2 billion, according to the IPAF U.S. Powered Access Rental Market Report 2014. The U.S. AWP rental fleet expanded by 6 percent last year. The report can be purchased at www.ipaf.org. JCB has added Rocky Mountain JCB in Missoula, Mont, to its North American dealer network. Formerly known as

Rocky Mountain Rental Specialists, LLC, the newly branded dealership will represent the full line of JCB construction equipment, including new, pre-owned and rental models. Rocky Mountain JCB will also provide JCB parts and service to customers throughout Western Montana.

(continued on next page)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 15

Industry Beat

Komatsu America and North Dakota State Partner on Diesel Technology Program Representatives from North Dakota State College of Science (NDSCS), Komatsu America Corp., General Equipment & Supplies, Inc. and Road Machinery & Supplies Co. recently announced an educational partnership resulting in the addition of a Diesel TechnologyKomatsu program to the NDSCS Diesel Technology Department. Through this innovative partnership, students will receive state-of-the-art technical training on Komatsu construction equipment and related products. A combination of classroom instruction, hands-on laboratory instruction and cooperative educational work experience at participating Komatsu dealerships, such as General Equipment & Supplies, Inc. and Road Machinery & Supplies Co., will provide students with extensive experience servicing Komatsu equipment. “We are pleased to add Komatsu to our reputable list of partners and value their contributions to this program,” said Dr. John Richman, NDSCS president. “With the recent completion of our $10.3 million diesel educational facility expansion, the time is right to add this highly technical Diesel Technology-Komatsu program.” The program will launch in August, and graduates of the program will exit with an Associate in Applied AED Recognizes Caterpillar for 25 Years of Membership

AED President and CEO Brian McGuire (center right) and AED Executive Vice President and COO Bob Henderson (far left) presented a commemorative plaque in June to Pablo Koziner, (second from left) Caterpillar vice president, Americas Distribution Services Division, and Mark Teel, (far right) Caterpillar regional manager, Western U.S. and Canada. The Gorman-Rupp Company’s wholly-owned subsidiary, National

Pictured left to right: Barbara Bang, NDSCS; John Richman, NDSCS; Terry Marohl, NDSCS; Don Shilling, General Equipment & Supplies; Michael Hayes, Komatsu America; Mike Mencel, Road Machinery & Supplies

Science degree. Through scholarship assistance, program costs associated with tuition, fees and supplies may be reimbursed up to 90 percent depending on a student’s grade point average. “NDSCS has been pivotal in making this partnership happen,” said Don Shilling, president of General Equipment & Supplies. “The need for highly educated diesel technicians continues to grow. In fact, we could easily hire a dozen technicians right now throughout our locations in North Dakota, Minnesota and South Dakota.”

Pump Company completed its purchase of the business of Bayou City Pump, Inc. based in Houston, Texas. During 2013, BCP had approximately $16 million in revenue from sales of its products and services through its Houston, Texas, headquarters and its service facility location in Baton Rouge, La.

year. Cummins, which ranks 15th in the 2014 annual list, was selected from more than 1,200 companies that participated. Vacuworx is celebrating 15 years in vacuum lifting technology and heavyduty material handling equipment. The company says it’s poised for further growth as demand for reliable and innovative solutions in pipeline, utility, construction and trenchless horizontal directional drilling (HDD) applications grow worldwide.

Wacker Neuson has launched a Certified Dealer Award program for its full-line, contracted dealer network. The award recognizes Wacker Neuson dealers that show exceptional afterAtlas Copco’s U.S.-based Quincy market service and support. To qualify, dealers must reach a minimal threshold Compressor LLC has finalized the acquisition of the compressor business on a point evaluation system, which of National Pump & Compressor is based on a variety of aftermarket services including spare parts availability, Ltd. and McKenzie Compressed Air Inc. in the United States. National organization structure, machine record Pump & Compressor has business management and continuous training. locations in Texas and Alabama while Cummins Inc. has been named one of McKenzie Compressed Air is focused on Texas. the Top 50 Companies for Diversity by DiversityInc for the eighth consecutive

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Industry Beat

Komptech USA Inc. has become Komptech Americas LLC. Morbark added nine new dealers and expanded the equipment offerings of three existing dealers over the past year. New dealers Bobcat of Buffalo, Bobcat of Fort Wayne, Cubex, Ltd., Encon Equipment, Equipment Seekers, Goodfellow Corporation and Greenman Machinery Company, as well as existing Morbark industrial equipment dealer James River Equipment, became authorized dealers of Morbark tree care equipment, selling the company’s heavy-duty Beever line of brush chippers, as well as Morbark stump grinders. New dealers Suffolk County Brake Service, Goodfellow Corporation and AfrEquip, as well as existing Morbark tree care dealers Alexander Equipment Company and Ness Turf Equipment, are now official industrial equipment dealers, handling Morbark’s complete line of recycling and forestry machines. Morbark is the first original equipment manufacturer to require all of its authorized dealers to have Tree Care Industry Association (TCIA) chipper operator specialists on staff. To date, 20 Morbark staff, 66 Morbark dealer personnel and more than 300 chipper users have attended the nine TCIA Chipper Operator Specialist workshops Morbark and its dealers have hosted, along with two that Morbark has sponsored with TCIA. Brush chipper accidents are a significant concern for tree care and landscape employers, employees and equipment manufacturers; and many chipper operators receive little formal training on how to use the equipment and avoid accidents. Caterpillar recently announced that Randy Krotowski, vice president with responsibility for the Global Information Services (GIS) Division and the company’s Chief Information Officer (CIO), has elected to resign from the company to pursue other opportunities.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 17

Sales ales

Sold O n

Hawthorne Cat augments traditional channels by selling used and obsolete equipment, parts and attachments on eBay. BY JOANNE COSTIN

Surplus inventory eats into the profits of virtually every dealership. Obsolete or unused inventory carries with it the cost of the products themselves, the loss of working cash and the ongoing holding costs. When Hawthorne Cat faced a surplus of equipment in 2010, they decided to try a creative alternative to traditional channels and place items on eBay, described as one of the world’s largest online marketplaces. Since that time, eBay has become an important part of Hawthorne Cat’s used and obsolete equipment selling strategy. The Caterpillar dealer for San Diego, Hawaii, Guam, Saipan and American Samoa has its own eBay store with more than 100 items available for sale each month. Managed in-house by sales analyst and eBay specialist Taylor Ness, the distributor has already doubled last year’s unit and sales volume in the first six months of 2014. “Our eBay strategy has evolved,” said Steve Dunn, the dealer’s corporate marketing manager. With less surplus equipment to be sold today, Hawthorne’s eBay store is being used to sell aging inventory, thus increasing

inventory turns and keeping the average age of the fleet and attachments less than 36 months. The type of machinery sold has grown beyond attachments to include power systems and smaller machines such as walk-behind compactors and concrete cutters. They have moved away from placing larger machines on eBay due to the higher fees associated with selling them and the complexity of shipping them. “We focus on the aged inventory,” said Ness. “Outdated pieces that aren’t being used – perhaps they are attachments that won’t fit a current machine. For some customers with older machines, a new attachment just won’t work.” Hawthorne Cat’s goal is to reduce its attachments inventory by 50 percent. “It is a great method of advertising those pieces that are depreciated with low book value,” added Dunn. According to Dunn, traditional channels such as CAT Used and CAT Auction Services and other publications and websites are still used to sell equipment, but the (continued on page 20)

18 | www.cedmag.com | Construction Equipment Distribution | July 2014

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Place

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Sales

“Being on the eBay platform allows us to sell to a different type of user – true end-users – who are not eBay store augments those efforts. The prices of items looking to wholesale buy one or two machines; they sold in the Hawthorne CAT store on eBay range from need to make informed intelligent trusted decisions $250 to more than online,” said Hawk. bidadoo $30,000. The biggest offers an alternative for movers are items under dealers who want the eBay $5,000. audience but don’t have While Ness concedes the time or volume to invest that eBay fees incurred in managing the channel by the dealership may themselves. He says bidabe slightly higher than doo’s expertise in selling on some traditional channels, eBay typically earns sellers he believes the wider a higher price than through audience, opportunity to other outlets. brand the dealership, and Dunn at Hawthorne Cat higher prices it delivers says that while many eBay make it worth the investcustomers are new customment. eBay boasts 145 ers and one-time buyers, million active buyers with others have become repeat more than $20 billion buyers. By gathering e-mail in sales generated over addresses on eBay and mobile devices. promoting the eBay store “eBay is a marketplace initially with print and later for everything,” said Rob with social media and e-mail, Francis, eBay Verticals. Hawthorne Cat has grown “We pride ourselves on their eBay business. having an enormous “eBay customers are very selection – from vehicles, loyal to eBay and loyal to trucks and boats to clothsellers,” added Francis. ing, iPads, cell phones. One unanticipated We have true end-users benefit of selling on eBay for who are willing to pay the Hawthorne CAT has been highest price.” the impact on the company’s Ritchie Brothers is extending the EquipmentOne solution to its eBay recently stepped search engine optimizahuge database of equipment buyers up its efforts to position tion. According to Dunn, itself as a place for used heavy equipment sales with the Hawthorne Cat’s eBay store items typically rank very high launch of its Heavy Equipment Center in December 2013. in search engine results. The center is a hub for the largest equipment sellers How It Works on eBay including bidadoo, Prowler, McGrew and Titan An eBay seller can choose to list an item in several ways Attachments among others. The site features online including: (1.) auction with no reserve, where the seller auctions held every Thursday. According to Francis, the Heavy Equipment Center started by featuring the largest agrees to sell to the highest bidder; (2.) auction with a reserved price; (3.) fixed price where the buyer can equipment sellers but will soon open up to more eBay purchase immediately with no bidding; or (4.) fixed price heavy equipment, parts and accessories sellers with substantial sales volume (more than $50,000 per month). with best offer. You can also add a “Buy it Now” price to an auction style listing. Ness prefers the fixed price Sellers on eBay’s Heavy Equipment Center benefit from option for the majority of Hawthorne’s listings. premium placement, an eBay consultant to offer best “We strive to keep the pricing affordable,” said Ness practices and integrations, as well as advertising support. “Our goal is to sell an item within six months,” To set If interested, you can e-mail eBay at heavyequipment@ the price, he will compare what the company would get ebay.com. at auction with the price they would get at Machinery Howard Hawk, co-founder and president of bidadoo, an online auction company that is the largest industrial seller on Trader or other publications. Francis says an eBay store (versus individual listings) eBay, built their entire business around the eBay platform. (“Sold On eBay” continued from page 18)

20 | www.cedmag.com | Construction Equipment Distribution | July 2014

Sales

How to Create Successful Listings on eBay:

1) Use multiple pictures and video to show the product. 2) Make sure your title includes key search terms. Imagine what terms you would use to search for your listing. Use the most common terms. 3) Link to your store from social media, other websites and within your listings. 4) Use e-mail marketing to promote to potential and past customers. 5) Offer free quotes on freight. 6) Price competitively. Evaluate your pricing, shipping and return policies vs. competitors. 7) Be responsive to customer questions. allows dealers to brand and market themselves in the world’s biggest online mall – creating a central shopping destination where buyers can learn about all the products they sell. eBay provides the tools to design the store as well as marketing and reporting features, and customer support. A basic subscription is $15.95 per month and includes 150 listings. In addition, after a buyer commits to purchase an item, you’re charged a final value fee based on the total amount of the sale and charged per item. If a listing ends without a sale, no final value fee is charged. While Hawthorne Cat has earned a 100 percent satisfaction rate on eBay, Francis says this is actually uncommon among heavy equipment sellers due to the nature of the items being listed. “It’s hard to describe a 2002 Bobcat that has 100s of points of failure,” said Francis. “Buyers may come back dissatisfied and threaten a negative review. A new policy is designed to give sellers more ability to push back on buyers who are being unreasonable.” (continued on next page)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 21

Sales

(“Sold On eBay” continued from page 21)

Now, if a dispute arises on eBay, NetNeutrals. com, an online dispute resolution program, will make it possible for sellers to state their case and potentially have negative feedback removed. To qualify for the program, sellers must offer a 100 percent back guarantee on the item until time of pickup. They must also make reasonable effort to satisfy the customer. Learning Curve Ness warns that there is a fairly steep learning curve on eBay. One caution is to make When Hawthorne Cat launched its eBay store in 2010 it used traditional media sure the prices of the items are correct on all marketing avenues. For example, items should to promote it, but it now relies on exclusively on email and social media. This banner was featured in an recent email campaign. be listed the same on eBay as they are on CAT Used. “Make sure that all departments communicate well and are aware of the asking price,” issue. Dealing with a single reliable freight carrier reduces advised Ness. At Hawthorne Cat, the used equipment risk for the dealer, and customer satisfaction with the shipping rates has been high. Most items ship to U.S. manager or rental manger has the final say on the price. destinations and sellers can select the geographic regions Dealing with freight costs was a challenge for they want to sell to. Hawthorne Cat initially, but once its internal shipping PayPal is the preferred method of payment on eBay department streamlined the process, it has not been an because it protects both buyer and seller. Buyers can make payments without sharing their bank or credit card details. PayPal also protects the full value of most purchases, including shipping, under the eBay Buyer Protection. In addition to PayPal, Hawthorne Cat also will complete transactions through bank transfers.

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22 | www.cedmag.com | Construction Equipment Distribution | July 2014

More Online Marketplaces Acceptance for buying and selling heavy equipment assets, parts and accessories over the Internet has grown tremendously, opening up new opportunities and markets for used equipment sellers. Both traditional and online auction companies have entered the market, providing alternatives to self-managing the process on eBay. bidadoo – Online auctioneer bidadoo will take the work out of the online auction process for companies looking to sell equipment on eBay. “Our success is based on accurate information, inspection reports, detailed reports and live video that give people the information and the confidence they need to bid online,” said Hawk. Hawk believes the company is a good fit for the dealer’s business model, offering a quick turnaround and several alternatives for selling, such as auction and consignment. They will even buy equipment outright. “We give them a new set of tools and options. They can structure deals quickly and turn it into collateral or cash.” Ritchie Bros. EquipmentOne – Ritchie Bros. Auctioneers launched Ritchie Bros. EquipmentOne in January

Sales

2013 in recognition of the need for an additional market solution to their unreserved auctions. Similar to eBay, sellers have several options for listing their items and greater control over the pricing and timing when compared to a traditional auction. However, unlike eBay, the EquipmentOne marketplace offers an exclusive focus on equipment and has the complementary power of the larger Ritchie Bros. ecosystem. â&#x20AC;&#x153;The same people that are physically going to Ritchie Bros. auctions, or bidding on auctions online are buying from EquipmentOne,â&#x20AC;? said Chris Connell, president of EquipmentOne. â&#x20AC;&#x153;Sellers get exposure to a huge buying audience. Ritchie Bros. sold more than $3.8 billion worth of equipment and trucks in 2013. EquipmentOne is a small part of this but growing rapidly, generating nearly $100 million in sales, including buyersâ&#x20AC;&#x2122; premiums, in its first year.â&#x20AC;? According to Connell, EquipmentOne differentiates itself through its equipment focus, approach and process. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re really focused on completed transactions and have a high success rate for an online marketplace,â&#x20AC;? said Connell. Reducing risk for buyers and sellers is one of the key objectives. The company actually holds funds in escrow until the buyer confirms they picked up the item. EquipmentOne charges a listing fee of $50 and a commission based on the sales price, capped at $250. It offers a full range of services such as free shipping estimates through uShip, as well as financing and insurance. One new feature is an integration with Assetworks, an enterprise asset management (EAM) software company. AssetWorksâ&#x20AC;&#x2122; customers can now seamlessly post assets to EquipmentOne straight from their EAM software, reducing the time and effort required to identify, list and sell surplus equipment. EquipmentOne is also working with

manufacturers to use the EquipmentOne marketplace to facilitate trades within their dealer network, and then if items are not sold, post seamlessly to EquipmentOne. Iron Planetâ&#x20AC;&#x2122;s allEquip â&#x20AC;&#x201C; Launched just last month, Iron Planetâ&#x20AC;&#x2122;s allEquip is the latest entry into the online used equipment â&#x20AC;&#x153;buy nowâ&#x20AC;? marketplace. allEquip manages the complete transaction between the buyer and the seller, from equipment listing on the site through final payment. Every item for sale has a guaranteed inspection report, a â&#x20AC;&#x153;buy now, haggle-free price,â&#x20AC;? and can be quickly purchased directly from the site. The Future of Private Sales Online Added control over pricing and timing is a powerful benefit that is driving interest in online

marketplaces. And with buyers showing increased confidence in purchasing used equipment online, dealers need to investigate the new ways to facilitate private sales. Hawthorneâ&#x20AC;&#x2122;s approach on eBay has been recognized by Caterpillar and will likely be emulated by other dealers. With the right online marketplace, now may be the time to finally find a new home for that attachment thatâ&#x20AC;&#x2122;s been sitting on your lot. We know youâ&#x20AC;&#x2122;ve got a place for the cash. Â&#x201E;

JOANNE COSTIN is a freelance writer and marketing consultant focusing on the construction industry. She can be reached at (847) 358-1413 or jcostin@costincustom.com.

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A Closer Look

‘As Housing Goes, So Goes the Nation’

One-on-one with homebuilder Kevin Kelly, 2014 Chairman of the National Association of Homebuilders, who says level-headed and context-based policy on areas of mortgage, immigration and regulation is what will keep homebuilding strong and homes affordable. BY GILES LAMBERTSON

Homebuilders and the construction industry in general are battling government overregulation at every level, unrealistic environmental demands, and a genuine workforce crisis, says Kevin Kelly, 2014 chairman of the National Association of Home Builders. In a wide-ranging interview last month, Kelly said he is optimistic about the growth of the housing market this year and next, a confidence reflected in the latest survey of the housing industry. Yet Kelly says the “depression” the industry experienced in the last few years left its mark on surviving companies, including Leon N. Weiner & Associates. Kelly is president of the Delaware contracting firm. He was interviewed the day

after testifying before a House of Representatives committee on water resources and environment. A proposed rule would expand the authority of the EPA and the U.S. Corps of Engineers and, Kelly testified, “lead to increased litigation, permit requirements and lengthy delays for any business trying to comply.” CED: At the end of the day, did you feel like anyone was really listening? Kelly: I will tell you that the very, very strong sentiment expressed on a bipartisan basis was that the proposed rule really needs to be scrapped. The overwhelming sentiment from both sides of the aisle was that there are significant reservations about it. We support the principle and the premise articulated in the

24 | www.cedmag.com | Construction Equipment Distribution | July 2014

Clean Water Act. It served to improve the water quality throughout the country. But this rule goes so far beyond the pale of congressional intent that quite frankly we are at a loss to understand what the heck they were thinking. We were shocked, to put it simply. CED: Regarding the housing market, have we returned to a period of steady growth? Kelly: We have made progress. It is moderate, but we are moving forward. I keep reminding people where we were a couple of years back. We are projecting to go north of a million housing units this year, with 2015 significantly better than that. The first quarter of the year was a struggle because of winter weather. Some of us are not accustomed to

Sector Point of View

Constantly Monitoring What Burdens Small Business Giving back to his industry is why Kevin Kelly accepted the NAHB chairmanship; he’s glad to be actively contributing to a trade association, which, like AED, serves as watchdog over regulatory and policy issues affecting many in the construction industry. In 1979, when Kevin Kelly joined Leon N. Weiner & Associates, which develops land and builds single and multifamily housing in Delaware, he soon learned about being a contributing member of the industry. “Leon hired me when I was in my 20s – a long time ago – and I quickly was infected with the notion that you have a responsibility to give back to the industry,” he said. “That is a credo we follow. Leon was an NAHB president in 1967 and is regarded by some as one of the most influential, if not the most influential, homebuilders in the country. There is a bust of him in the NAHB center in Washington.” Six past presidents of the Delaware Home Builders Association are present or former Weiner executives. So when it appeared he was in the running to become national NAHB chairman, Kelly sat down with his Wiener associates before accepting the challenge. “I am very fortunate to have partners who said, yes, you ought to do this,” he said. “We discussed what it would take to do this properly.” It turns out that properly executing his NAHB responsibilities this year takes about 80 percent of Kelly’s day. What is it the NAHB does that is significant for housing industry members? “Advocacy, certainly,” he said. “Information we provide is invaluable on the regulatory front. We as an industry are touched every day at the local level, as well as in state and federal overlays. Since we are impacted at every step, it is necessary to protect and defend the industry at all those levels. “We estimate that last year we saved members some $6,300 per housing start by helping modify certain regulations and proposed codes, and defeating onerous regulatory or legal initiatives that would have added dramatically to the cost of a house. Those are the kinds of things we do on an ongoing basis.” In the current session of Congress, NAHB testimony helped modify a flood insurance bill so that flood insurance rates rise at a reasonable rate rather than swamp homeowners. “I have friends who lost home sales because a home buyer would sign a contract indicating a flood insurance estimate of hundreds of dollars, and when the premium came in at $12,000, the home buyer just got up and walked away,” Kelly said. “Helping modify that bill was an enormous victory for us.” The flood insurance component is especially important to homeowners whose property is in the Midwest and other locales away from obvious river and coastal flood plains. Kelly was asked if there is anything NAHB is working on at present that is of special interest to construction equipment dealers. He suggested that many NAHB issues overlap the industry segments. “A lot of our members are developers who utilize heavy equipment on a daily basis,” Kelly said. “We want to make them even busier than they want to be. To that end, we constantly strive for balanced economic and tax policies that will foster a sounder housing market. I suspect equipment dealers, like our members, typically are small businesses, and we are constantly monitoring laws and regulations that burden small businesses. “We were very outspoken about some requirements of the health care law,” he says. “We were part of the coalition that limited participation to businesses with 50 or more employees. And we seek to have a regulatory structure and tax policies that will foster a strong and vibrant economy that cuts across all groups.” 15 inches of snow and wind chills in the minus numbers. That had a very significant impact on both the psyche and the market, which translated into fewer permits and starts for our members. All in all, we are optimistic. But

there is no question that we face headwinds, such as the availability of lots for our builders. As housing production dropped 80 percent from the highs of 2006, things weren’t taken through the pipeline. No one was moving projects ahead through

the land approval process. Now lots are a scarce commodity and it is a long process to secure those land entitlements. That is a head wind. CED: How about loans? Are banks opening their coffers to small (continued on next page)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 25

Sector Point of View

(‘As Housing Goes, So Goes the Nation’ continued from page 25)

homebuilders now? Kelly: We survey our members regularly and they say it is improving, but it is improving slowly and painfully. The improvement varies from region to region in the country. There needs to be a lot more loans being made. That remains a challenge. CED: The struggles for the industry began with the housing bubble and collapse. Is there a definitive explanation for who was to blame – Congress, banks, regulators? Kelly: Rather than point a finger at any one group, I would say there are a lot of people who can share responsibility for it. Underwriting standards went right out the window. When that happened we had to live with the consequences for it. CED: Weren’t those lax standards encouraged by Congress?

Kelly: Some mortgage products were concocted by lenders themselves. Frankly, there was too much latitude in designing mortgages before. Now there is not enough latitude. We are looking for the pendulum to be right in the middle, right in the sweet spot. We need prudent underwriting standards that will protect the system. CED: Yet the NAHB is against a mandated minimum down payment. Isn’t that more of the “lax standards” problem? Kelly: To isolate a minimum down payment as an end all and be all is not a solution. Some state housing finance agencies have a very, very low downpayment point, sometimes zero. What they do have is very tight underwriting standards and a housing counseling component to educate buyers. A prudent underwriting standard is the prime determinant of the soundness of a mortgage.

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26 | www.cedmag.com | Construction Equipment Distribution | July 2014

CED: You are a developer and advocate of affordable housing. Are there still barriers to construction of such housing? Kelly: The fact of the matter is, excessively burdensome land use approval processes and regulations negatively impact all housing, from most affluent to less affluent. I do both rental and affordable for-sale. That for-sale market typically makes up 28 percent of all new home purchases. That’s down to 15 percent today. It is a very significant component of the traditional market that currently can’t access credit because of too-rigid standards. We need to see some loosening of them. I am not suggesting we ever go back to the insanity that occurred in the mid2000s. My buyers didn’t get interestonly loans, or no-document loans. They all got fixed-rate mortgages and have done well. The fundamental thing is a sound, prudent underwriting standard that ensures that someone is qualified to buy a home. CED: In the recently passed farm bill, NAHB argued that 900 communities should continue to be considered “rural” even though their populations grew. If the communities no longer are rural, why should they continue to qualify for rural housing programs? Kelly: The greatest challenge for people in rural America is to secure loans to buy homes. Changing the definition of what was a rural community would have eliminated availability of certain loan programs for the 900 communities. We argued for retention of the definition to keep those communities under the program until after the 2020 census. That will mean hundreds of thousands of mortgage loans that wouldn’t otherwise have been available. CED: But isn’t that part of the federal government’s budgetary problem – not allowing programs to change in the face of subsequent realities?

Sector Point of View

Kelly: That was an element of the debate. We felt there needed to be a broader look at the program, a deeper look at what was going on in those communities in this current environment. The rest of the country had a recession, but it was a depression in housing. We lost tens of thousands of builders. We argued for context. Context is often forgotten when you start talking about hard and rigid rules. Changing the definition now would have done more damage. CED: What is the remedy for the ongoing shortage of construction workers? More apprenticeship programs, for instance? Kelly: There are certainly things we can do to prepare for the long term, but what do you do in the next four, five or six years? By way of anecdote, I am told vocational schools had very few students during the downturn – parents weren’t encouraging their children to become a carpenter in a housing market that was collapsing around everybody’s ears. So those programs had dramatic shrinkage in enrollment, and in high school systems, when you don’t have any students in a program you close the program. Now, there is reluctance to reopen such programs. The association’s Home Builders Institute is working with secondary schools and community colleges to develop a construction trade workforce. The other component of this is the loss of subcontractors. Many were wiped out in the recession. Some were in their early ‘60s and are not jumping into that pond again. So we lost decades of experience in the running and operating of small businesses. It has created an enormous vacuum and a daunting challenge for the industry. CED: Is immigration reform part of the answer? Kelly: That is an important component. We believe a prudent immigration reform will permit sufficient numbers of construction workers to enter the country. Last year’s Senate

bill restricted the number to 15,000, which is very, very low. The last time I looked, the Department of Labor showed there were 170,000 vacant unfilled construction positions. An immigration bill isn’t going to come fast, though. The only thing members of Congress move fast on is bashing one another. CED: Has NAHB taken a position on how to consistently fund road building? Kelly: We really haven’t jumped into the discussion at the federal level. I will tell you here at the local level, in Delaware, we are supporting a proposal by the governor to increase the gas tax, with all the money to go to transportation infrastructure. Every state competes against other states to attract employers and we know that people assess the quality of infrastructure in areas where they may relocate. Without prudent management of

infrastructure, an overall economy is hurt, and when the economy is negatively impacted, it goes right down hill to the homebuilders. CED: If the climate change debate is going to be a factor in policy discussion, what direction would NAHB like to see it take? Kelly: We are proponents of prudent environmental regulation, but policymakers also need to recognize the feasibility of accomplishing what they articulate. To advocate for very stringent requirements in terms of energy consumption and sustainability is laudable, but the question is how to get from Point A to Point B in a practical sense. Communities can propose all kinds of standards that are literally not achievable because homebuilders have to heat and cool the homes they build. The next question is, what is the cost of all that? We are always looking at (continued on page 63)

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Dig In To Your Market

Attachments Buyers Guide

Our Annual Attachments Buyerâ&#x20AC;&#x2122;s Guide, featuring the latest and greatest in versatile tools, hooks you up with great opportunities. Editorâ&#x20AC;&#x2122;s note: A special thanks to the attachments manufacturers who supported this special product section with their advertising dollars. These great AED supporters are highlighted with red headlines. We appreciate the commitment of these companies to the industry and to your association.

A-Ward Delivers Massive Crushing Power www.a-ward.com

Contact: Mike Ganier, mike@a-ward.com, 201-697-7301

Downsizing large concrete structures has never been easier with the A-Ward Pulverizer. Theâ&#x20AC;? offset pivotâ&#x20AC;? gives you massive crushing power and the Pulverizer can be used with a coupler or as a direct pin-on. without loss of breakout force. This indestructible tool is quiet and very easy to operate while being inexpensive to install and maintain. Replaceable bolt-on upper and lower jaws made from 550 Hardox steel ensure a solid work platform. With the fast cycle times the Pulverizer provides an impressive return on investment.

Alliedâ&#x20AC;&#x2122;s Rammer Model 2577 Hammer â&#x20AC;&#x201C; $SSOLFDWLRQ 6SHFLĂ&#x20AC;F 3URGXFW 6ROXWLRQ www.AlliedCP.com

Contact: Greg Smith, Sales@AlliedCP.com, 216-431-2600

As attachment use increases, Allied Construction Products continues to lead the industry with product improvements. Alliedâ&#x20AC;&#x2122;s newest addition, the Rammer Model 2577 Mid-Range hammer weighs 3,880 pounds and is ideal for use on 46,300- to 66,100-pound excavators. The new Model 2577 hammer from Allied/Rammer provides the very latest in breaker design with the focus on the operator, environment and application. It features Rammerâ&#x20AC;&#x2122;s VIDAT (vibration dampened tie rod) System and utilizes new materials that make it lighter while retaining high levels of productivity. Incorporating Rammerâ&#x20AC;&#x2122;s Fixed Blow Energy (FBE) design, the Model 2577 delivers maximum impact energy with every blow for the greatest productivity regardless of flow fluctuations.

Allied-Gator Eats Rebar, Thin Stainless, No Problem www.allied gator.com Contact: Michael Ramun, mr@alliedgator.com, 330-744-0808

Allied-Gatorâ&#x20AC;&#x2122;s patented Serrated Gator Blades, exclusively for the MT mobile shear, have completely changed scrap processing. Serrated Gator Blades outlast traditional MT shear blades by up to 50 percent when processing general scrap, and up to 90 percent when shearing steel wire and cable. This new technology is also extremely effective in processing notoriously troublesome materials, like rebar and thin stainless steel. Allied-Gator Serrated Gator Blades are available for all 11 sizes of the MT Series Multi-Tool. (Attachments Buyers Guide continued on page 30)

28 | www.cedmag.com | Construction Equipment Distribution | July 2014

does grow on trees Take advantage of Allied’s

“Money does grow on trees” sales promotion that’s full of special Factory Authorized Retail Sales Prices. Allied’s business partner has authorized some amazing retail prices (see chart) for End-Users on selected hammer models. These models include Allied’s Small Range Hammers (Model 555, Model 777 and Model 999) and the ever popular Compact Range Model 522 with the unbreakable trapezoidal tool. These prices are not the only amazing part of this great “Money does grow on trees” offer. With each purchase, End-Users will receive standard hydraulic hoses, demolition tool, Free Mounting Bracket and Free Freight*. Delivery is to be arranged with your local Allied Distributor and 0% retail ﬁnancing for 12 months is available through Wells Fargo & Company (US only). These special Factory Authorized Retail Prices will be available through Wednesday, December 31, 2014 or while supplies last. Visit an Allied Distributor location nearest you to select a quality product from Allied’s “Money Tree” for your jobsite demolition needs. * For Alaska and Hawaii purchases, there will be additional freight charges.

Money does grow on trees : Factory Authorized Retail Sales Prices : Free Mounting Bracket : Free Freight : Standard Hydraulic Hoses : Demolition Tool

Model Number

Retail Price

Model 555

$9,500.00**

Model 777

$13,500.00**

Model 999

$17,500.00**

Model 522

$9,500.00**

**Plus applicable sales tax

Attachments Buyers Guide

ALLU’s NEW DL Screening Buckets Extend Range to Compacts www.allu.net Contact: Dale Mickle, 201-747-2292

ALLU Group Inc. introduces the new DL Screening buckets designed specifically for use with compact base machines such as mini excavators, small wheel loaders, skid steers and backhoes. One bucket allows you to change screen sizes ranging from 5/8”, 1 ¼” and 2” just by changing out the screen and hammers. The DL Screening bucket is the perfect tool for landscapers and is engineered to screen, mix, aerate and load topsoil, peat and compost.

Matting Is One-Man Job With AMI Attachments’ Excavator Rig Mat Grapple www.amiattachments.com Contact: 800-556-9452

The AMI Attachments Excavator Rig Mat Grapple is the industry standard for handling access mats and rig mats with ultimate efficiency. Building temporary roads and platforms that protect environmentally sensitive jobsites has never been easier. Pick and place mats with fluid-like productivity by hydraulically clamping and rotating mats at the same time. With 360-degree rotation the AMI Rig Mat Grapple makes positioning mats quick and easy. Matting is now a one-person job where the operator is always in the safety of the cab. Smooth control comes from AMI’s custom machined manifold that provides proportional control for precise positioning and avoids the need for costly extra hydraulic lines being installed on your machine. AMI Rig Mat Grapples are made in Canada and available with double straight edges or teeth and edge combinations. AMI Attachments also offers their industry-leading two-year warranty on the Rig Mat Grapple.

Antraquip’s Hydraulic Rock & Concrete Cutting Attachments www.antraquip.net Contact: info@antraquip.net, 301-665-1165

Antraquip Corp. is the leading manufacturer of hydraulic attachments designed to cut or grind rock and concrete for numerous applications including trenching, demolition, scaling, soil remediation, tunneling, underwater cutting, general rock excavation and more. These attachments deliver high production at a low cost making them ideal alternatives to hydraulic hammers. In addition Antraquip also offers carbide and diamond saws, patch planers (milling machines) and specialized soil mixing/remediation attachments.

The Bradco Ground Shark Clears The Tough Stuff www.paladinattachments.com Contact: Stephen Kingsley, 734-214-2085

Paladin Attachments introduces the Bradco Ground Shark Standard Duty Brush Cutter. It builds on success of the original Ground Shark Extreme Duty Brush Cutter’s innovative deck design, aggressive machine profile and high productivity. This highly efficient and productive attachment clears tough ground vegetation, light to medium density brush and hardwoods up to 4 inches in diameter. Three bi-directional blades cut in either direction to extend the operational life of the blades, minimizing fleet maintenance expenses. (Attachments Buyers Guide continued on page 34)

30 | www.cedmag.com | Construction Equipment Distribution | July 2014

Attachments Buyers Guide

CBI Introduces the RR30 Root Rake Attachment www.cbi-inc.com Contact: Art Murphy, amurphy@cbi-inc.com, 603-382-0556

CBI’s RR30 Root Rake grubs, pulls, backfills, rakes and loads – making “hog feed” out of dirt contaminated debris. Six massive primary rake tines clear root structure from the ground with ease, while the six secondary reinforced steel back-rake tines groom the surface area on the reverse stroke. CBI’s RR30 Root Rake weighs 7,500 lbs. and fits on a 65,000- to 90,000-pound class excavator. Continental Biomass Industries, Inc. of Newton, N.H. manufactures and distributes a complete line of grinders, shredders, chippers, flails and attachments for the biomass recovery and processing industries.

Meeting the Equipment Needs of the Mining and Construction Industries.

Whether you’re drilling in quarries, breaking rock on the jobsite or backfilling deep lifts, Furukawa Rock Drill USA (formerly Kent Demolition Tools and Furukawa Rock Drill) provides a reliable, cost-effective equipment solution. To learn more, visit us online at www.FRDUSA.com or call 800.527.2282.

34 | www.cedmag.com | Construction Equipment Distribution | July 2014

Scan this code for more information on FRD USA.

Attachments Buyers Guide

Chicago Pneumatic’s RC 308 Makes Quick Work of Most Jobs www.cp.com/usen Contact: Greg Petherbridge, Greg.petherbridge@cp.com, 800-760-4049

The RC 308 hydraulic rig-mounted compactor is engineered with features to increase jobsite efficiency. The RC line of hydraulic compactors is ideal for a variety of applications, including slope compaction, trench compaction, road repair, and waste compaction. The combination of the RC 308’s compaction frequency and vibrating force makes quick work of most jobs. Armed with CP’s AutoLube system, the RC 308 eliminates the need for manual greasing which increases jobsite productivity. With a service weight of 705 pounds, a length of 27.28 inches, and a width of 18.70 inches, the RC 308 is an extremely maneuverable compactor. The unit boasts a vibrating frequency of 2,100 n/min and a vibrating force of 5,071 pounds force, making the RC 308 as powerful as it is versatile.

Introducing the Carbide Cutter G3

THE NEXT GENERATION

THREE GENERATIONS OF CUTTING EDGE INNOVATION

Standard Carbide

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With ﬁeld-proven rugged durability, the reﬁned and balanced design of the Carbide Cutter G3 has made it the "gold standard" in the vegetation management industry. With the newest generation, Loftness has incorporated the latest power drive systems and cutting tooth technologies.

Quadco Planer Blade

Loftness has engineered a line of carbide-tipped and heat-treated steel teeth speciﬁcally for the G3. See page 8 for details. the Loftness Vegetation Management Equipment LEARN Visit website to learn more and experience the Carbide Cutter MORE G3 from every angle. www.vm-logix.com

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agricultural, vegetation and snow removal solutions at www.loftness.com Loftness Specialized Equipment

(Attachments Buyers Guide continued on next page)

WWW.LOFTNESS.COM

www.loftness.com P.O. Box 337 Hector, Minnesota 55342 USA

Toll Free US & Canada: 800-828-7624 International 320-848-6266 email: info@loftness.com

July 2014 | Construction Equipment Distribution | www.cedmag.com | 35

Attachments Buyers Guide

CE Attachments– Excavate Without the Excavator www.ceattachments.com

Contact: Michael Williquette, mwilliquette@ceattachments.com, 262-387-1210

New EDGE Backhoe attachments feature powerful digging depths from 8’5 to 11’1 inches to accomplish excavating jobs without bringing another large piece of equipment to a jobsite. Feature 180-degree boom pivot rotation and cushioned swing pads for a smooth stop at maximum swing. Buckets are available in 10-inch, 12-inch, 16-inch, 18-inch, 24-inch and 36-inch sizes with capacities from 0.92 cubic feet up to 4.05 cubic feet with bucket digging forces from 3895 to 6200 pounds.

Geith G3 Quick Coupler Provides Fully Automatic, Double Locking Attachment System www.geith.com Contact: Paul Shevlin, paul.shevline@geith.com, 800-762-4049

The new Geith Generation 3 (G3) hydraulic quick coupler provides operators with a safe, simple, proven and durable design by which to change attachments on the jobsite. Featuring four independent safety components, the double locking, fully automatic quick coupler configuration complies with the safety standards set forth by ISO/FDIS 13031:2013(E). In addition, the quick coupler’s curved engaging plate, or pin seat, holds the attachment’s link/rear pin firmly in place should a loss of hydraulic power occur.

More Versatility With General Equipment’s 471 DIG-R-TACH for Backhoes, Mini-Excavators and Compact Loaders www.generalequip.com Contact: Dennis Von Ruden, dvonruden@generalequip.com, 800-533-0524

General Equipment Co.’s Model 471 DIG-R-TACH Hydraulically-Powered Earth Drilling Attachment System is specifically designed for use with lower-auxiliary hydraulic system flow rates found on popular models of compact loader backhoes, mini-excavators and compact utility loaders. The 471 DIG-R-TACH system enhances the versatility of compact loader backhoes and mini-excavators by allowing them to become practical and productive options for many hole-digging projects. The system features a universal mounting bracket that readily conforms to a wide variety of loader bucket configurations. Mounted quickly and easily by one person, the 471 DIG-R-TACH requires no special tools, drilling or welding as the supplied bracket grips tightly with a positive locking system.

New GDR 400 from Genesis Attachments Fits 40- to 55- Ton Excavators www.genesisattachments.com Contact: info@genesisattachments.com, 888-SHEAR-IT

Genesis Attachments expands its Demolition Recycler concrete processor product family with the new GDR 400. Fitting 40- to 55-ton excavators, the GDR 400 features a 48-inch jaw opening and 41-inch jaw depth, making it the line’s most powerful all-purpose processing and cutting attachment for high-reach and standard demolition applications. The GDR 400 is available with concrete cracker or concrete pulverizer jaws.

36 | www.cedmag.com | Construction Equipment Distribution | July 2014

(Attachments Buyers Guide continued on page 38)

Attachments Buyers Guide

Helac’s Power Tilt Provides Easy Pick and Change for Wide Ranges of OEM Brands www.helac.com

Contact: Robert Kemp, attachments@helac.com, 360-825-1601

Helac Corporation extends the PowerTilt product line with an optional hydraulic pin grab coupler offering. The new hydraulic pin grab coupler option provides more choices in addition to the existing half hitch, Universal (Wain-Roy/CP), and brand specific couplers. As with the other options, the pin grab coupler still allows the PowerTilt to rotate up to 180 degrees side to side. The variable pin

FIRST-CLASS COMPANIES DON’T ENDORSE SECOND-RATE EQUIPMENT.

Only genuine Pierce long reach booms are designed to meet the strict demands of the OEM’s. And unlike cheaper offshore imitations, Pierce booms are approved and endorsed by all leading excavator manufacturers. We are a direct supplier they depend on to deliver…and we do! Hey, it’s your hard-earned reputation, don’t you think you should compare apples to apples? A Pierce boom is not an imitation wrapped in a different skin…can they make the same claim?

PORTLAND, OREGON EDMONTON, ALBERTA SEE YOU AT CON-EXPO IN LAS VEGASJACKSON, MISSISSIPPI

38 | www.cedmag.com | Construction Equipment Distribution | July 2014

WWW.PIERCEPACIFIC.COM 800.760.3270

center design allows easy pick up and change of the widest range of OEM attachments.

New Kenco Kl40000 Barrier Lift – Effortless! www.kenco.com Contact: Steve Volk, svolk@ kenco.com

The Kenco 40,000-pound capacity Barrier Lift will lift concrete wall effortlessly. Constructed with half-inch thick T-1 steel for extreme strength, its wide grip range will fit wall tops from 6- to 12-inch thickness. Pad angles rotate to match the slope of the wall – 864-square inches of elastomer pads grab the sides of the wall to provide superior grip, even in wet weather. The Barrier Lift attaches with rigging to any machine with lifting capabilities.

Attachments Buyers Guide

Loftness Offers Carbide Cutter G3 Mulching Head Attachment www.loftness.com Contact: Dave Nelson, dave@loftness.com, 800-828-7624

As part of its VMLogix line of products, Loftness offers the Carbide Cutter G3 highperformance mulching head attachment for skid steers. This new generation product incorporates the latest cutting-tooth technologies and power drive systems, while maintaining the rugged reliability expected of Loftness equipment. The Carbide Cutter G3 is available with 51-, 61- and 71-inch cutting widths. All models are offered with a variety of carbidetipped and heat-treated steel teeth to match any job application. The precisely engineered spiral tooth pattern on the rotor ensures continuous tooth contact with the material being cut. For maximum cutting performance, the Carbide Cutter G3 features a twostage cutting chamber with staggered counter teeth and a shear bar. This combination of features results in small particle sizes, while eliminating the s $EDICATED AND 1UICK #HANGE jamming and wrapping issues associ"UCKETS FOR #OMPACT %XCAVATORS ated with competitive products. "ACKHOES 7HEEL ,OADERS AND woodsequipment.com ,ARGE %XCAVATORS 800-848-3447

Ground

Engaging

one Scoop at a Time

Performance, Durability With LOWE Equipment Attachments www.loweman.com

Contact: Gerry Glass, gerryg@ loweman.com, 608-538-4000

s -ECHANICAL (YDRAULIC #OUPLERS s -ATERIAL #LAMPS 'RAPPLES s 3KID 3TEER !TTACHMENTS s )NDUSTRIAL "OX 3CRAPERS

At LOWE, attachments are not just add-on items to our product line – they are our entire focus. Lowe Equipment Attachments follows a simple philosophy: “Design and build specific products that offer the best performance, durability, and overall value in the attachment industry.” LOWE is a highly regarded producer of auger, trenching, and grapple attachments with a worldwide reputation. Designed for compact equipment such as skid loaders, track loaders, mini-loaders, compact excavators, compact utility tractors, small wheel loaders, and telehandlers. (Attachments Buyers Guide continued on next page)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 39

Attachments Buyers Guide

MB Crusher’s Small Bucket Packs Big Performance www.mbamerica.com

Contact: Rachel Tam, marketing@mbamerica.com, 855-622-7874 The MB-L 120 Crusher Bucket is the newest addition to MB Crusher’s line of crushers. Small but packed with high performance. It meets the need that arises in small yards and limited spaces. Easy to carry, compact, handy, easy to use, and low maintenance, the MB-L120 crusher bucket is suitable for skidsteers from 6,200 pounds and backhoes between 11,000 and 15,500 pounds.

Montabert V3500 Hydraulic Breaker Delivers Power In Demanding Conditions www.montabert.com

Contact: Tim Waine, tim.waine@montabert.com, 866-472-4373

The Montabert V3500 heavy-range hydraulic breaker features an automatic twospeed variation system – adjusting its impact energy and striking rate to deliver high energy per blow on hard ground and high frequency on soft ground. Designed for use on excavators weighing between 77,150 and 132,300 pounds, the fully hydraulic breaker delivers between 520 and 710 blows per minute. The 8,071pound V3500 requires a hydraulic flow rate of between 66 and 841/2 gallons per minute and is rated within the 10,000 foot-pound impact energy class.

Introduce Your Scrap/Recycle Customers to Northshore Manufacturing’s Builtrite www.builtritehandlers.com Contact: info@builtritehandlers.com, 218-834-5555

The Builtrite, Auto Dismantling System is designed to quickly and effi¬ciently dismantle autos, removing valuable alloys and then readying them for a car crusher or shredder. This system is recommended for 18-22 metric ton excavators with at least a two-speed travel circuit. The Hold Down Arms are mounted directly to the excavator’s mainframe and include a pair of large bore, highpressure cylinders, capable of applying enough force to crush and hold the auto in place. They operate off of the undercarriage drive circuit. The Auto Dismantling Grapple features a wide opening and 360-degree continuous rotation, providing the operator the necessary dexterity to perform even the most precise maneuvers, making easy and quick work of pulling engines, radia¬tors, wiring harnesses, heater cores, and more.

Experience What Pierce Built, Pierce Backed is All About www.piercepacific.com Contact: Greg Hildebrandt, 800-760-3270

Pierce Pacific has a long history of supplying excavator manufacturers (and their dealer network) with complete purpose-built booms, machine conversions and work tools for long reach, scrap and material handling, demolition and forestry market segments. Our equipment is designed using sophisticated engineering software, built with mill-certified steel and manufactured using cutting-edge assembly methods right here in North America. As a direct supplier to several OEMs, all Pierce products must meet or exceed tough OEM design standards. And with warehouses and technical support located throughout North America, you’re within quick reach of all you need to keep you going. Pierce products – quality from the drawing board to the bottom line. That is what “Pierce built, Pierce backed” is all about. 40 | www.cedmag.com | Construction Equipment Distribution | July 2014

Attachments Buyers Guide

Rotobec’s Grapple Cuts Fuel Consumption, Maintenance Costs www.rotobec.com

Contact: Josh McTeer, josh.mcteer@rotobec.net, 250-765-1161

Rotobec Power Attachment (RPA) grapples offer reliability and versatility. This grapple can accomplish demanding jobs effectively and efficiently in any industry. There are a number configurations available and can be equipped with either a dangling or positioned rotator. The RPA’s positioned continuous rotation minimizes the movement of the excavator and reduces fuel consumption and maintenance costs. Configurations include rake, bucket, trash, pulp and demolition.

Rototilt’s 40-Degree Side Tilt Lets ’Em Work Around Obstacles www.indexator.us

Contact: Gerry Mallory (519) 754-2171, Gerry.Mallory@indexator.com Rototilt attachments combine continuous rotation, 40-degree side tilt in each direction, and a hydraulic quick coupler all in one package. It allows a bucket or other attachment to be rotated and tilted at the same time, making it simple to operate around or under obstacles, and for any type of ground contouring.

The Xcentric Ripper by ShearForce Equipment – an Innovation in Excavation www.shearforce.ca Contact: Brad Dewit, brad@shearforce.ca, 800-255-5211

The Xcentric Ripper hydraulic ripper outperforms traditional hydraulic hammers and static rippers in nearly every type of material, particularly in rock with natural fracturing and layers. Using patented technology, the attachment works with the natural rigidity of the rock, and vibrations shake the material to deepen cracks for easier breakup. In certain conditions, the Xcentric Ripper is two to five times more productive than using a hydraulic hammer, and is ten times more productive than a hammer in frozen ground.

New Hydraulic Couplers from Strickland MFG www.stricklandus.com

Contact: Sean O’Reilly, seanoreilly@stricklandus.com, 804-306-4740

Strickland MFG has expanded its excavator attachments offering with the introduction of hydraulic couplers. The TwinLock range is manufactured from AR400 steel for maximum durability in tandem with an ultra low profile design for minimal loss of break out force. Two fully enclosed independent mechanical locking systems eliminate dirt and debris for maximum operational safety. Available for 8- to 45-metric ton excavators, all TwinLock couplers ship with machine specific wet kits and cab controls for easy installation.

SweepEx Mega 600 Offers 60-inch Sweeping Surface www.sweepexproducts.com Contact: info@trynexfactory.com, 800-725-8377

For clean-up, material handling and snow removal applications, the SweepEx Mega 600 is built with a 60-inch long mainframe. Ideal for a wide variety of applications including cleanup of dirt, leaves, snow, material spills, standing water, steel shavings and gravel, the SweepEx Mega Series broom attachment is adaptable to most service vehicles. Mounting kits for forklifts, bucket lips, three-point hitches (Class 1 & 2) and skid-steer pivots are available to maximize the broom’s versatility. Designed for high productivity and minimum down time, SweepEx brooms are built with no moving parts, eliminating the cleaning and lubrication of sprockets and bearings typically associated with rotary-style brooms. Brush replacement is quick and easy with the unique brush section system. (Attachments Buyers Guide continued on next page)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 41

Attachments Buyers Guide

TAG Manufacturingâ&#x20AC;&#x2122;s Mantis Buckets www.tagmfg.us

HCT Has the Right Connections 3LHRPUN O`KYH\SPJ MS\PK JHU IL H TPUVY HUUV`HUJL VY H THQVY JH[HZ[YVWOL ,P[OLY ^H` /*; JVUULJ[PVUZ TPUPTPaL [OL JOHUJL MVY SLHRZ [V KL]LSVW s OEM style ORFS or CD62 4 bolt ďŹ&#x201A;ange connections s Higher safety standards s EfďŹ cient designs with fewer connections, reduce the number of potential leak points

Contact: Bill Waits, BWaits@tagmfg.us, 678-910-0105 Mantis buckets feature independent thumbs that allow full clearance to â&#x20AC;?straddle â&#x20AC;? the dipperstick and boom when the bucket is fully curled. Twin robust cylinders provide added strength and higher impact resistance to increase reliability.

Terex Fuchs Material Handler Work $WWDFKPHQWV 'HVLJQHG IRU (IĂ&#x20AC;FLHQF\ Quick Changes www.terex.com Contact: Aron Sweeney, aron.sweeney@terex.com

Welded tube ends for maximum strength and durability.

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Terex Fuchs work attachments are purpose built to withstand the demands of scrap, recycling, logging and heavy-duty rehandling applications. With size ranges built specifically for each material handler model, these attachments work in unison with the machine to increase productivity and lifting efficiency. From cactus grabs to magnet plates to lift hooks, Terex offers a range of options with quick-attach designs, so operators can switch between attachments within a matter of minutes to reduce downtime and increase productivity. Terex Fuchs Cactus Grabs are solidly built to withstand the rigors of scrap handling, recycling and log handling applications. Featuring robust construction and advanced kinematics, these cactus grabs boast high tine-closing forces and hydraulics that are performance-matched to the machine for powerful and precise material handling. Constructed of high-quality materials and proprietary features, they offer long life in demanding applications for a higher return on investment.

Attachments Buyers Guide

Ultimate Hydraulic Demolition and Salvage Grapple From TRK www.trkattach.ca Contact: Brigitte Knapp, brigitte@trkattach.ca, 905-641-9981

The main advantage of the TRK Attachments Ultimate Hydraulic Demolition and Salvage Grapple is that it works without a stiff arm. When used with a quick coupler, this makes for fast changing between attachments. No more hammering pins; just hook up the hoses and you’re ready to go! It also works with direct pin-on. Our Hydraulic Grapple has a far greater range of motion, which allows you to access material at virtually any angle. If 360-degree rotation is required, it can be built into the design.

Tushogg – Texas Timberjack of Lufkin is Here for the Customer www.texastimberjack.com Contact: sales@texastimberjack.com

Texas Timberjack is a leader in forestry, mulching and construction equipment sales, parts and service. We aim to provide the highest quality of professional service to our customers. Featuring equipment from the leading manufacturers in the nation and the world in forestry, mulching, right of way, and construction equipment, we have the best available products to suit your project. Texas Timberjack offers a complete line of products for the successful logging professional and the construction industry. We offer a full range of financing options plus warranty, parts and service support on everything we sell.

15 Years and a Worldwide Reputation in Vacuum Lifting Technology – Vacuworx www.vacuworx.com Contact: Randy Hayes, 918-259-3050, randyh@vacuworx.com

Vacuworx offers a viable material-handling solution designed to improve safety, bolster productivity, and reduce operating expenses for construction contractors, governmental authorities, security agencies, and military personnel tasked with fast and efficient moves, lifts, or installations of concrete road barriers. This system lifts 8-, 10- and 12-foot barriers using the Vacuworx MC 5 or RC Series lifters.

Werk-Brau’s Progressive Link Hydraulic Multi-Tined Thumb – Removed in Just Minutes www.Werk-Brau.com Contact: Alex Gundy, agundy@werk-brau.com, 800-537-9561

One of Werk-Brau’s newest offerings is the progressive linkage hydraulic thumb, which is custom built to match Werk-Brau and competitive brand couplers and buckets. The WerkBrau linkage design allows 180 degrees of rotation. The universal linkage pivot system installs on any excavator arm without removing dipper arm linkage, cutting the installation time in half. Increased rotation allows the thumb to match the bucket through almost 100 percent of its working cycle. The collapsible linkage design also allows the thumb jaw unit to close further to prevent damage to the arm while the machine is in the transport position. A strong, rigid skeletal structure increases torsion resistance, and built-in linkage positional stops offer protection of the cylinder on both the inward and outward stroke. The thumb includes a retaining pin to prevent to prevent cylinder drift when not in use. Removal of only two pins allows the jaw unit to be removed from the machine in a matter of minutes. Mechanics all over agree that this is one of the easiest thumbs to install in the industry. This thumb will be a valuable time saving piece in your attachment arsenal. July 2014 | Construction Equipment Distribution | www.cedmag.com | 43

A Closer Look

What Would You Do If It Happened To You? Now, not later, is the time to prepare for disasters and how your business will cope, manage, recover and survive. BY WILLIAM ATKINSON

Running a business day to day is hard enough without additional challenges. Unfortunately, those “additional challenges” can and do occur, and they must be managed. One of the most significant is dealing with natural as well as manmade disasters. Without proper preparation, these events can actually put you out of business. A small business can and should make preparations for disruptive and catastrophic events in an effort to maintain a viable business, according to James Nelson, president of Business Continuity Services (www.businesscontinuitysvcs.com), an international consulting company that provides expertise for private and public sectors in business continuity management, crisis management, data center management and consolidation, emergency management, facility risk and vulnerability assessments, IT disaster recovery, and risk management. “A business worth growing is a business worth protecting,” said Nelson. “Delays in planning for the unexpected can harm or destroy your business. A good plan today is better than a perfect plan tomorrow.” Understand Your Risks The first step in disaster planning is to understand your risk landscape - both internal and external. What are you most at risk for? This varies. 44 | www.cedmag.com | Construction Equipment Distribution | July 2014

“For example, if you’re in Minneapolis, you have different physical risks than if you are in Miami,” said Bob Boyd, president and CEO of Agility Recovery (www.agilityrecovery. com). “You need to tailor your plans for the higher risks for your region.” Agility Recovery works with the U.S. Small Business Administration (SBA) and the Federal Emergency Management Agency (FEMA) on the PrepareMyBusiness (www.preparemybusiness.org) monthly webinar series. The SBA and Agility also work together to encourage all small businesses to have a recovery plan in place. Agility Recovery offers testable, turnkey disaster recovery solutions and business continuity services for small and midsized businesses. “Customers pay a monthly fee,” said Boyd. “We help them get prepared, and develop a plan for them. If something happens, we provide all of the assets they will need, such as generators, office space, phone system, computer technology, etc., so they can open up again.” Take some time to consider the risks to your business location(s) and determine if there are some interventions or measures that you can put in place. What are the major risks that these locations are exposed to? “The most frequent risks most companies face are fire, flood, severe weather, and seismic activity,” said Nelson. “Any or all of these can result in loss of power and

Business Recovery

Protecting Your Business Information and Data “If you ask most businesses if they back up their data, most of them will say they do,” said Bob Boyd, president and CEO of Agility Recovery. “However, just because data is backed up doesn’t mean it can be recovered. It could be corrupted, or the owner may have forgotten to back up some important data, or forgot about a certain server.” According to James Nelson, president of Business Continuity Services, if you lose your business information and data, you become, in essence, a start-up organization. “Make sure that business information and data are backed up and off-site from your business premises,” he said. “This can be done for reasonable costs just using the Internet. As long as you have continued access to your business information and data, you can usually obtain the equipment that you need in order to continue business operations.” One company providing data protection and recovery services, among other services, is ADP (www.adp.com). “With the increasing digitization of business, there is a greater value and risk being placed on this valuable asset,” said Jeff Traylor, vice president of global hosting. “Fortunately, there is a wide array of technologies available to solidify and protect this digitized information.” Providers such as ADP realize that small business owners aren’t in the business of IT. Some don’t have the economies of scale for capital outlays required to solidify and protect this information. In addition, since technologies are changing so rapidly, anything that a small business owner does put in place today will quickly become obsolete. According to Traylor, the solution is to place these digitized assets into a “cloud” with a trusted cloud provider, to protect the information from the risks associated with telecommunications, and even damage to or destruction of your buildings.”

disaster. Cloud computing is a technology that involves connecting a large number of computers through a realtime communications network. “If a disaster strikes, while the physical assets of the business may be damaged or destroyed, the company’s information assets will remain safe,” said Traylor. However, if a company were to lose its physical assets and its information, it would be difficult to come back. ADP operates two Tier-4 data centers. (Tier-4 provides the highest level of protection of the four tiers). These data centers are staffed 24/7/365 and can withstand extended regional power outages, winds, flooding, etc. They are also located away from areas prone to large natural disaster, such as floods, earthquakes, and hurricanes. And, for further protection, all information is duplicated at both sites, so, in the unlikely event that one site became inoperable, everything would be available at the other site. One satisfied ADP customer is Edward Ehrbar, Inc., a heavy construction equipment distributor with locations in Yonkers and Holbrook, N.Y., and Danbury, Connecticut. The company relies on PFW IntelliDealerASP as its business information system. One reason the company selected this technology was because it would allow employees to work more efficiently and effectively, as well as avoid large capital expenditures. Another reason was that the system would provide disaster recovery and business continuity planning. “We can work from anywhere on ASP,” said Edward Ahern, IT manager. And, such an event did happen. The day after Hurricane Sandy struck, Ahern was able to work from a distant location, where he had power and access to the Internet. “Because our system is on the ASP platform, that allowed me to respond to our customers’ needs and requests,” he said. where are you going to go?” said Boyd. “What assets will you need at the new location? How are you going to get them there? It is difficult to figure this stuff out after the fact.” Waiting till a crisis situation has erupted could mean that temporary real estate, facilities or other resources are already taken by other businesses. You need to firm up these arrangements ahead of time.

Safety Considerations According to Nelson, one key to keeping your business viable is the human factor. “As a business owner, you should always use the principle of ‘Do the right thing,’” he said. “This will be beneficial to building goodwill, trust, and social capital with your employees and customers and will enhance your Power reputation and image in the community.” Make sure you One thing all businesses need is power, and after a disaster have an effective emergency evacuation plan that is exercised, power may no longer be available for a period of time. so that people know what to do if there is an event. On the “Almost no business owner knows how big of a generaother hand, sometimes it makes more sense to stay put, so tor they will need to power their business, although your be sure you have a “shelter in place” plan for incidents in the readers may know this, because they deal with heavy event that leaving the premises is risky or dangerous. equipment,” said Boyd. “Have an electrician look at your panel and let you know the size of the generator you will Locations need. Then, if you lose power, you can rent or install one Make plans for what you are going to do in recovery. “For instantly.” However, if you don’t know the size you need, example, if you have four feet of snow and the roof collapses, (continued on next page) July 2014 | Construction Equipment Distribution | www.cedmag.com | 45

Business Recovery

(“What Would You Do If It Happened To You?” continued from page 45)

there will be no way to find out after a disaster, because you won’t be able to get an electrician to come out. It is, of course, possible to purchase permanent back-up generators for your buildings, but this can be a very expensive capital investment. In addition, if your building is destroyed or damaged in such a way that you need to temporarily move locations, an in-place generator will have no value at all. If you rent or purchase a portable generator, you can take it with you to your new temporary location. Communications According to Boyd, few small businesses have a communications strategy in place for a disaster. “They don’t think it’s important,” he said. “However, when a disaster strikes, the traditional ways of communication may not work. These include e-mail, because power is

out. And you may not be able to use cellphones, because towers may be down. You need to identify some other ways to communicate with employees, customers, and vendors.” One option is to utilize portable, battery-operated computers. Another is to purchase satellite phones. Your Supply Chain After a disaster, you don’t want to be faced with customers having to wait for equipment and supplies. You need to identify strategies to make sure that you’re able to take care of your customers in the event of a disaster. “There have been several disruptions to supply chains in recent years,” said Nelson. “In fact, even events in other parts of the world can impact supply chains in the U.S.” Examples include the tsunami in Japan in 2011, which caused significant delays in shipments of equipment and other products to the U.S. from Japan. “It is prudent to review the health of your key suppliers and ask if they have

disaster and business continuity plans in place,” said Nelson. How financially viable are these suppliers? Also, do you have any single- or sole-source suppliers? If so, consider lining up some alternates. Investigate some other strategies that may keep your supply chain strong, such as expanding safety stocks on critical materials. Duration You need to consider the impact to your business if you are not able to conduct business as usual for a period of time. “All organizations have some level of tolerance for disruption,” said Nelson. “For example, recent experiences with severe weather across the nation have resulted in late openings, early closings, power outages, and less than full staffing situations.” Take some time to consider your tolerance for disruption of business continuity. Set a target that you cannot exceed – one that would result in a severe impact or loss of

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46 | www.cedmag.com | Construction Equipment Distribution | July 2014

Business Recovery

your business. Then, plan backwards from this worst-case scenario. “This will help you determine what level of protection and investment you need to make in order to keep your business viable,” said Nelson. “That is, you can decide what people, equipment, locations and supplies you may require in order to maintain operations at a diminished, but acceptable, level of service for your company.” Employees Prepare your employees. “A lot of small business owners may create disaster plans, but don’t bother to include the employees in the creation of the plans,” said Boyd. “In addition, many of them don’t even explain the plans to the employees after they have been created.” You need to train employees on what you expect them to do and what they should not do. You also need to get their input in the creation of the plans in the first place. “For example,”

he said, “you may decide that you want employees to work from home after a disaster, but by including them in the planning, they may explain some reasons why this wouldn’t work.” Testing Once you have plans in place, test them (or at least the portions of them that can be tested) in advance. “You will always find things that don’t work as expected when you first test them,” said Boyd. This gives you the opportunity to modify and/or replace the plans. Insurance Sit down with your insurance broker or agent at least once a year to verify what kind of coverage you have. “Be sure you are covered for equipment, premises, content, liabilities, and business interruption,” said Nelson. “Do not assume that your insurance coverage addresses everything. Talk with your broker about what is covered and what is not covered.

Then make a business decision as to whether you want to add some coverages that are currently not in place, or whether you are comfortable with the risks associated with these exclusions.” “As a result of Hurricane Sandy, I think there will be lawsuits for the next 10 years,” said Boyd. “People thought they had coverage, but insurance companies came back and said things like, ‘Your damage was caused by water, and you don’t have flood insurance,’ or ‘Your damage was caused by a windstorm, and you don’t have wind coverage.’” Meeting with your broker or agent is also a good opportunity to update your insurance provider on changes and expansions in your business to make sure that you will have coverage for those changes and expansions. BILL ATKINSON is a freelance writer based in Southern Illinois. He can be reached at w.atkinson@mchsi.com.

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A Closer Look

Artist Captures the Drama, Strength of Construction on Canvas

Painter Brad Burns – whose magnificent commissioned works are displayed in prestigious offices around the world – has nothing but elated clients. BY LORETTA SORENSEN

Translating the pride of the construction industry into rich, meaningful images has dominated the work of veteran fine arts painter, Brad Burns, for the past 14 years. With distinctive color, shadow and detail Burns is communicating the passion, commitment and effort invested in building projects across the U.S. and countries abroad. Working in combined digital and traditional painting mediums, Burns has created portraits of machines, workmen and company owners for patrons that include the Engineering and Utility Contractors Association (EUCA) offices in San Ramon, Calif., Preston Pipelines Inc. and Allied North America Insurance, both in Milpitas, Calif. Burns’ career as a professional art director began in California with Silicon Valley companies there who sought his work in advertising, marketing collateral, high-tech packaging, branding and other communication tools. In the late 1990s, when Burns was commissioned to create paintings for EUCA, a trade association representing union-affiliated contractors throughout the Western United States, his career took a significantly new direction. “It wasn’t unusual for me to create cover and spot illustrations for art directors of various construction publications,” Burns said. “The monthly ‘EUCA’ magazine paintings were created for use as covers. After that cover series came out, I began receiving calls from contractors 48 | www.cedmag.com | Construction Equipment Distribution | July 2014

who needed art for their offices. They wanted paintings that highlighted their passion for their work and reflect their commitment to the industry that helped make them successful.” The first pieces Burns created were often “tried and true excavators,” special construction projects or a significant founder or company employee. “My first large scale in-house art installation was for Mike Preston, CEO of Preston Pipelines,” Burns said. “He

“Quarry Cats” is displayed in the foyer of an underground utilities company in Northern California.

Someone You Should Know

was building a beautiful new facility. I worked closely with his interior designer to develop paintings that both helped tell the company’s story and harmonized with the facility designer’s palette.” This new development in his career wasn’t the first time Burns’ attention had been captured by the “smokebelching, bone-rattling machines” found on construction sites. His interest in construction equipment was piqued at the age of 10 or 12 as he watched the giants convert neighborhood apricot and prune orchards into subdivisions. “Early in my career I spent many hours at construction sites, sketching and creating compositions,” he said. “I learned more and more about the equipment with each new project It’s a rather dusty work environment, however I find working with my patrons’ photographs is a much better way to incorporate details and intricacies.”

Burns finds artistic inspiration through observation of both machines and workers. His search for the beauty of each scene includes scrutiny of inconspicuous places. “Texture on a rusted bucket, or a piece of equipment that’s been painted over and over, with each layer showing through to create a texture with a real story. Those are the details that capture my eye and imagination,” he said. The passion and commitment he observes workers investing in construction projects also sparks Burns’ artistic muse. “These are people who believe in an honest day’s work,” Burns said. “They seem to have an innate ability to complete projects and the drive to build both large and small things. I feel privileged to tell their story through art. Each project can get emotional, and I like it like that.” Portraits of company founders and executives are often combined with the landscape of a project site.

“Many times they have huge grins on their faces,” he said. “I think they’re happy to be out of their offices and free from paperwork for a few precious hours. They seem to go back to a place when their lives were about moving dirt around and building things for others.” Once he’s gathered information about a project, Burns begins his image creation in PhotoShop, using a pressuresensitive tablet. “That gives me the freedom to move things around, change colors, enhance important areas and remove distracting objects. Once I create the digital drawing I transfer the line work to stretched canvas and use either acrylics or traditional oil paint, glazes and varnishes to create the painting,” he explained. His canvas material is archival quality duck canvas mounted on traditional stretcher bars with a gallery wrap technique. “The image wraps around the stretcher bars, which is the same process used in art galleries and museums,” Burns said. “That eliminates the need for a frame and complements any changing decor because, after all, these paintings will last for generations.” Canvas sizes range from as large as 80 inches wide by (continued on next page)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 49

Someone You Should Know

(“Artist Captures the Drama, Strength of Construction on Canvas” continued from page 45)

120 feet tall to as small as 11 by 14. “Size depends on available wall space and the impact the client wants,” Burns said. “I usually work at about 32 by 24 or 30 by 40 inches.” It’s common for Burns to invest 40 hours in one painting. Larger images, of course, require more time. “I spent more than 200 hours on the Quarry Cats painting,” Burns said. “It took that much time to capture the essence of the landscape, equipment and the exquisite sunrise on the horizon. It’s also a very large painting, 14 feet by 5 feet.” At the University of California at Santa Cruz, Burns studied art with Mary Holmes and Jack Zajak. “The studies emphasized painting and printmaking,” Burns said. “That strong foundational training helps me meet the challenge of depicting the symmetry and sheer

An 8-foot by 3-foot canvas titled “Night Push” hangs at Appian Engineering – CEO Jack Estill stands proudly beside the painting.

50 | www.cedmag.com | Construction Equipment Distribution | July 2014

power of the astounding construction machines in my paintings.” Currently, Burns’ art portfolio includes more than 300 paintings, which are found in office installations across the United States, Germany, Finland, Japan, France and China. “I’m honored to have paintings in some of the most prestigious contractors, insurance companies and law firms in the world,” he added. All in a Day’s Work Burns was born in Hollywood, Kan., and grew up in northern California. He and his family now live on the island of Kauai in the Hawaiian Islands. Most days, he starts working on his projects by 5 a.m., breaking at 7 to take his children to school. “From there I work again until about 1. If the surf is good, I surf for a couple of hours, then work again until about 6,” he said. “Sometimes, I work later after everybody goes to bed. That’s when the house is quiet. With eight children, seven of them living at home, quiet time is a rare opportunity I cherish.” It’s not unusual for responses to his work to include the phrase, “Love it!” “I’ve done complete in-house art installations for large corporations, with 30 original commissioned paintings,” Burns said. “I’ve also done pieces for individuals. I once did a painting for the very loving wife of a guy that owned a Midwest demolition company. She was so excited to present her gift to her husband at Christmas. She even printed Christmas cards with the piece on it to send to existing and potential clients. Pretty smart lady. You can imagine how rewarding it is to see that kind of response after hours of crafting what you hope will be pleasing to your patron.” Each of his paintings is born out of Burns’ heart, soul and 25 years of art experience. However, one piece stands out in his mind. “I created a painting for Ghilotti Construction in Santa Rosa,” he remembers. “It was their work on the new San Francisco 49ers stadium, which proudly hangs in the corporate offices of the team. A large print of the painting hangs in the Ghilotti headquarters.” None of Burns’ patrons has ever been anything besides ecstatic about his creations. From time to time he does encounter someone who has developed a challenging concept. “All my work comes ready to hang,” he said. “I guarantee every painting 100 percent. I have no problem standing behind every commissioned piece, no questions asked.

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Most of my clients give Giclee prints to their clients and employees and use the image in marketing materials. Their logos are generally displayed in a subtle way in the art, so they really get a lot of mileage for their investment.â&#x20AC;? Burns has worked with many different industries, including high tech, bio tech, galleries and art dealers. â&#x20AC;&#x153;I have found those involved in the construction industry to be down to earth, cash and carry men and women,â&#x20AC;? he said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve worked closely with CEOs of multimillion-dollar companies and my experience has always been positive. Theyâ&#x20AC;&#x2122;re big boys with big toys, and huge budgets.â&#x20AC;? Burnsâ&#x20AC;&#x2122; most recent painting project is Distant Fires, a theater production scheduled to appear on Broadway. The humorous play is about a crew of high rise construction workers arguing their way up the â&#x20AC;&#x153;ladder of opportunity.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a play about these hard-working people who are building America,â&#x20AC;? he said. Burns is painting construction scene backdrops for the set.

At the age of 60, as he contemplates his future painting options, Burns notes that seascapes and landscapes also capture his attention. â&#x20AC;&#x153;I would love to have a show in France and here on the island,â&#x20AC;? Burns said. â&#x20AC;&#x153;Of course, with notoriety comes larger commissions, so that would be nice. From a philosophical point of view, I believe there is beauty and intrigue in all Godâ&#x20AC;&#x2122;s wondrous creation if you just open your awareness and stop looking for something that has already found you.â&#x20AC;? More information about Brad Burns and his work is available at www. constructionfineart.com. Â&#x201E;

LORETTA SORENSEN is a South Dakota-based freelance writer who covers construction, business, and agriculture. She can be reached at sorensenlms@gmail.com.

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%ULDQ )UHLWDJ July 2014 | Construction Equipment Distribution | www.cedmag.com | 51

The Power Of Being Wanted

Best Practices

Washburn Tech students in Topeka, Kan. work on the latest equipment donated by Case Construction Equipment.

Building a heavy-duty diesel program in a few months took some doing, but with a dealer, manufacturer and tech educators working together, it became a reality in Topeka, Kan. And by recruiting students the way colleges recruit athletes, this ‘techsavvy’ program is stirring huge interest. BY JOANNE COSTIN

Reputations in this business are built on one thing: getting the job done. When a machine goes down, dealers approach the problem with laser focus. However, when it comes to recruiting technicians, many dealers have hit a wall, and are unsure of how to solve the problem. “There is a huge shortage of technicians,” said Bill Esterly, vice president of product support for The Victor L. Phillips Company (VLP). Over the years the company tried many different tactics – recruiting technicians from competitors, advertising, visiting high schools. But problems persisted. “Even when we did get people, they didn’t have the skills we needed,” said Esterly. “One of the problems is that schools are teaching students on equipment and engines donated 10-15 years ago.” The Kansas City-based dealer with six locations in Kansas and Missouri was hardly alone in their frustration. Other Case dealers had voiced concerns through the Case Construction Equipment dealer advisory board. Case got the message and decided it was time for the manufacturer to provide support to help attract young technicians to Case dealerships. James Ruffalo, who heads up service development at Case was tasked with the job of launching a nationwide techniciantraining program. When Esterly learned that Case was looking to support a technical school, he thought of Washburn Institute of Technology (Washburn Tech), based in Topeka, Kan. The school had been renting Case machines for their heavy equipment operator program from The Victor L. Phillips Company and had a diesel technology program geared toward the trucking industry. 52 | www.cedmag.com | Construction Equipment Distribution | July 2014

What happened next is testimony to a manufacturer, dealer and technical school working hand-in-hand to get the job done. An initial meeting in March of 2013 blossomed into a full blown program in less than six months. Trade School Turn-Around Fortunately for Case and VLP, Clark Coco, dean of Washburn Institute of Technology is a man with marketing savvy and a vision for tech education. Since arriving at the school two years ago, he has made it his mission to enhance the school’s image. “We wanted to build a flagship institution in the state of Kansas that our legislators could go and see how tech ed could be delivered at a very high level and how that would help with the economic turnaround of the state of Kansas, he said.” It started with a clean-up of the school’s neglected grounds and a commitment to change the perception of the school. According to Coco, the staff bought into a simple but powerful idea that hangs on a banner at the school: We celebrate the dignity of work. Washburn Tech’s strategies appear to be working. In 2013 the school had a 26.3 percent increase in enrollment (the largest of any school in the state on a percentage basis) as well as the highest graduation rate of any institution in the state. It offers more than 30 technical programs in five divisions – Construction, Health Care, Transportation, Human Services and Technology. Ruffalo witnessed the transformation of the campus from its dark and dingy past. “Washburn is doing a phenomenal job,” he said. “The campus looks completely different.” Despite state funding that has been basically stagnant for

Best Practices

seven years, Washburn has managed to secure more than $800,000 in grants in the last two years. And industry partnerships, such as the one it forged with Case, and another with Trane Inc., are essential to the school’s success. The first meeting was held between Washburn Tech and VLP to identify the need for a Heavy Diesel Construction program. Once the dealer confirmed with Clark Coco that Washburn Tech was interested in creating a program, a second meeting was held with Washburn Tech, VLP and Case Construction Equipment where a vision for the program emerged. A partnership agreement was formalized and the program then went into full throttle to prepare for an August 2013 semester launch date. A renovation of the school’s diesel technology facilities was already under way when the agreement with Case was finalized. Ruffalo and Esterly arranged for more than a half-million dollars in equipment to be delivered to the school, along with industry curriculum, lesson plans, and instructor training. “They had a diesel program for trucks and an operator program for construction equipment,” said Ruffalo. “They didn’t have a heavy equipment program. We created that from scratch in about five or six months.” Coco recognizes the importance of their partnership with Case and VLP. “It could never have happened without their investment in the program,” he said. “They showed tremendous commitment, and did everything they said they would.” VLP played an important role, donating tools, components and time. “I would say we probably donated 500-700 man hours to get that program going,” recalled Esterly. Meetings were held every three weeks during the start-up phase, and are now held quarterly. Technicians and service mangers all helped the program get up and running. Next year, VLP will offer $5,000 in tuition reimbursement if graduates work for the company. As part of the curriculum, heavy equipment students will come to the VLP’s Topeka location and go through a dealership orientation. According to Esterly, students will spend time with a parts manager, service manger, and sales manger to see how a dealership works. “Nobody wants to turn wrenches until you are 65,” said Esterly. “Being out in the heat and the cold, it will wear on you. There are so many different job opportunities at a dealership for a technician to move into should they want to change jobs: sales, PSSR positions, parts or service manager positions.” The idea of the orientation is to create an awareness of career opportunities within a dealership. Graduates of the program earn a technical certificate or an Associate of Applied Science Degree (AAS) in Diesel Technology. A total of 35 students completed the 2013-2014 school year, which began Aug. 12, 2013. The program complements Washburn Tech’s existing Commercial and Heavy Construction pathway for heavy equipment operation. The first year includes general training on diesel technology followed by a second year where students select a track in one of three

Washburn’s ribbon cutting ceremony held in the Fall of 2013, was attended by (from left) Rhonda Monks, director of Service, CASE Construction; Dr. Jerry Farley, president, Washburn University; Governor Sam Brownback, (R) Kansas; Clark Coco, dean, Washburn Tech; Bob Foreman, vice chairman of the board, The Victor L. Phillips Company; Bill Shoenfelder, president, The Victor L. Phillips Company

areas: construction equipment, over the road, or diesel locomotive mechanics technology. Students can select morning or afternoon classes to accommodate work schedules or double up and complete the program in one year. Simply through the image changes at the school and word of mouth, 60 students are expected to enroll in the diesel program in the fall of 2014. The program is affiliated with the National Coalition of Certification Centers (NC3). In addition, all students in the heavy construction equipment program will take Case online assessments. An Innovative Approach to School Recruitment To date, recruiting diesel technology students hasn’t been a challenge for Washburn Tech. “If I could get a bigger space, I could get 100 students,” said Coco. Washburn’s stunning program for recruiting technical students is modeled after the way colleges recruit athletes. A former college basketball coach, Coco asked his staff why they couldn’t use a similar recruitment process for tech ed. “We talk to as many students as possible and then rank them within the system to get the best 60 we can find. We sign them with a national letter of intent for technical education,” said Coco. During the upcoming academic year he fully expects the school to have a waiting list. On Feb. 20, 2014, more than 431 students showed up for the first national signing day. “The power of being wanted is an unbelievable recruiting tool,“ said Coco. “Students will make a much stronger commitment if they know an institution has an investment in them and wants them.” “Sometimes there is that idea that if you can’t go to a university, you go to tech school. We work really hard at squashing that thought,” said Coco. Image changes and Washburn Tech t-shirts help promote the school and (continued on page 62)

July 2014 | Construction Equipment Distribution | www.cedmag.com | 53

YOU WANT SOLUTIONS AND OPTIONS

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Three new reasons your AED membership pays off!

On the Numbers

What’s In Your Vault? How do you financially engineer increased profit without increased earnings? (Hint: AED peer groups and coaching raise the tide on everyone’s performance.) BY GARRY BARTECKI

I was reading my financial 2. Use their cash balances to buy journals over the weekend and noted back shares. comments by Richard Lehmann in 3. Take advantage of these low Forbes (June 16 issue) where he states interest rates and cash balances that it is the resilience of business that to make acquisitions of poorly run is propelling growth as opposed to the operations, which when brought under various Fed programs geared to pump the control of the acquirer will add to up the economy. earnings. And, of course, when I hear the If an analyst reviewed your company word resilient I immediately think of what would they say about your ability AED members and how they continue to manage earnings; would you be a to manipulate their way through the “Buy,” “Sell” or “Hold?” business cycles associated with the My point is there is no reason why construction industry, including the grandan AED dealer can’t duplicate what the daddy of them all that started in 2008-09. public companies are doing in terms Lehmann also noted that our of downsizing, productivity and overall resilient corporations are reflecting cost-cutting. But if you don’t know growth in earning without the top line the answer to the above question or to go along with it. With the “sales” the results provided by these activities line lacking, cost-cutting, downsizing that’s a problem, because you should. and productivity gains have been In addition, you should also have used extensively to grow profits and discussed financial engineering generate “economic growth” that options and at least been able to make keeps pumping stock values higher informed decisions about banking and higher. terms, financing options, downsizing A great program if you can pull it the balance sheet based on current off: flat sales but an increasing earnings sales levels, M&A opportunities or stream to generate economic growth. product line optimization. Being able to provide these types of I encourage you to review the The earning moves is a real positive, but if Strategic Profit Model in the front of the you throw in some financial engineernew CODB Report, because it covers ing the results can become even better. both the earning and financial engineerProducing exciting annual numbers ing aspects of running the business. is only part of the puzzle to get These are important financial issues maximum shareholder value. Financial that need to be reviewed regularly. engineering also has to be considered. If you plan to transition out of In short, how does management take the business within the next five steps to increase shareholder value over years or plan on making acquisiand above what earnings provide? tions to improve the value of What public companies are doing your business, you need a plan to from a financial engineering standpoint maximize EBITDA by increasing are three things: productivity and properly finan1. Leverage the balance sheet to cially engineering your company. generate cash to buy back shares, You also need a detailed tax plan which thus increases earnings per share. for individual and company tax

basis, including projected changes in tax basis applying anticipated changes to the tax laws. It does you no good to maximize EBITDA if 40+ percent goes to Uncle Sam when the deal closes. AED’s new performance peer group program is designed to help dealers understand and take action to cut costs, right-size when necessary, improve productivity and financially engineer their balance sheets with a goal to increase the value of those shares sitting in your personal “vault.” This is not going to be a typical 20 Group program – your group will review operating results but also cover the topics discussed in this column. This will be a flexible program where we match dealers by size and provide coaching as requested for better overall performance and value. Size of groups will be flexible, as well. I see no problem working with as little as five members if they are of similar size and truly interested in reaching the goals they have set. Two meetings per year, monthly or quarterly reporting, virtual discussions and updates – this is an investment that is sure to provide a significant ROI every year. I want to hear from you. I need dealers in the $200 million plus range for a group. And $50 million and up are also required. Others will be created for any size dealer, as long as we can get the dedicated players. So, are you ready to find out if you are a “Buy,” “Sell” or a “Hold”? GARRY BARTECKI (gbartecki@ aednet.org) is founder of Dealer-Rental Success LLC, is a financial consultant to the equipment industry. He can be reached at 708-347-9109.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 55

Just So You Know – a Guest Column

Good Planning and Communication Help Family-Business Owners Sidestep Succession Obstacles BY ANDRE W. AHERN

Food for thought if you’re thinking of exiting in the next five years.

It is not unusual for a familyanything, other than the potential to owned business to have no formal take over the business – if they are successor plan in place. The fact of the capable. matter is, the transfer of power from If you’re the owner of a family the first to the second generation business and you want to begin the seldom happens, when the founder is process of reviewing how to “pass the alive and still on the scene. Even if it baton,” it is extremely important to does, there are certainly many chalkeep success from damaging the busilenges that must be considered. ness or the family, so you need to take If you own a family business and you the sting out of some of the emotional want the ownership to remain within issues, such as: the family, you need to have a plan. In 1. Identifying the values of each fact, in a recent survey about control of generation a company, 79 percent of respondents 2. Recognizing the older generasaid the senior generation wants the tion’s financial concerns business to stay with the family. Of 3. Communicating to the entire those surveyed, however, only 17 family – it’s important to build up percent stated they were confident of support and family unity, which the next generation’s commitment to means if other siblings are involved the business. you need to share with them Family businesses generate intense the entire plan – don’t rush to the emotions, not only for the found“transition”. ers but with other family members Remember, planning and communiemployed in the business. Too often, cation are essential tools to achieving a these emotions derail the smooth successful plan. transfer from the older generation to When Ahern is involved in a succesthe next. sor plan, we take somewhat of a novel To complicate matters, passive approach. We advise the owners of owners can’t appreciate the time, a business to wear several hats and mental energy, risk and capital needs label them Dad, Mom, Boss, Brother, of operating a business; not to Grandfather, etc., so that the relatives mention that it’s not fair to require of the employees are crystal clear on active stockholders to support the which role they’re hearing from when lifestyle of passive ones. the owner is addressing them. I’m constantly asked, is there a Additionally, when you are trans“golden rule” for a family business. My ferring the business to family, you response: Yes! “Ownership and partici- need to look at the family not as your pation in a family business is a unique children or as your relatives, but as your experience – not an inalienable right.” employees: There can only be one person in I’ve been involved in numerous successor plans, and in some instances, charge The rest must embrace that indisome family members believe they’re vidual in implementing and operating entitled because their name is “Jones,” the business. “Smith,” or whatever. The reality is, An easy statement to make, a family members are not entitled to

difficult task to accomplish. When choosing a family successor there are captive measurements you should look for: 1. What are the successor person’s personal goals? 2. Does he/she know your intent for them? 3. Will they stand in the way of or encourage family business goals? 4. Has the successor learned about the business? Is he/ she a quick study? Has the successor practiced good money management in life and work? 5. Do they have outside experience, and has the work within the firm prepared that family member for the challenges that the business or industry poses? 6. Can they learn from the mistakes they make/made? You have to recognize that you need to look at your children as employees and you need to do what’s in the best interest of your company It’s important to recognize that family conflicts can be one of the most difficult and destructive forces in a business. Look at the U-Haul international fiasco. Ultimately, the founder and chief executive officer was voted out of his own company by his children. Successor planning needs to begin at least three to five years before the owners plan to exit the business. Although highly emotional, if the business is to stay in the family the transition process must be made sooner rather than later. ANDRE W. AHERN, CPCM, is the CEO of Phoenix-based Ahern & Associates, Ltd., a transportation management consulting company. He can be reached at ahern@ahern-ltd.com or visit www. ahern-ltd.com.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 57

GLAMOROUS? not so much

COOL FACTOR?

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Aftermarket

Get Creative and Meet Customers’ Top Two Non-Negotiables This will take a new way of thinking and preparing – old methods and excuses just won’t cut it anymore if excellence is your goal. BY RON SLEE

Last month, I referenced the “Product Support Opportunities Handbook” and the fact that these customer surveys, conducted every five years, give us invaluable information. We talked about customer needs and wants. This is information I use as the starting point in how I teach the Balanced Scorecard. I believe it is a powerful place to start as a result of our employees working harder to satisfy customers than they will to satisfy their bosses. But what do we need to excel at in order to satisfy these customer needs and wants? When you ask what they want, you open up a risk: If you don’t act on their feedback the customer will become even more cynical about your desire to satisfy them. Internal excellence takes on many shapes and forms. It could be a simple matter of better communications. It could be much larger such as Internet ordering tools and electronic catalogs. It runs the whole gamut. I want to focus on two of the major customer needs. One for parts, one for service. Parts Department No. 1 Priority: Availability Over the past two decades, I have written often about inventory management and expediting – and even purchasing. I am a strong proponent of activities such as guarantees for availability. I go crazy (crazier) when you have backorders on fast moving parts. I am fanatical about finding every part every customer has ordered the day they order the part. I believe availability has influenced customer retention more than

anything in the parts business. So, become consistent in finding every part every day. It should not be that difficult. In fact, it isn’t but many are afraid of all the work this would entail. I want to break you out of your comfort zone – some people call it thinking out of the box. The box doesn’t exist – it is simply our fear. Develop the procedures, the processes, and the systems so you can succeed at finding every part every day. What is the search sequence? First you pick parts from your store then what do you do? Do you check your other branch stores? What about your vendor? Then do you reach out to dealers in your OEM network, wherever they are? Do you take parts from machines in your inventory? And what about other sources for parts, even if they aren’t genuine? How do you do it? Make it happen. Service Department No. 1 Priority: Responsiveness With service it becomes more difficult. Everyone defaults, saying, “I can’t find any technicians I want to hire.” Every service manager is trying to hire a journeyman technician. That is a “fool’s errand” today. Every good technician out there has a good job and a good wage. They are not going to be knocking down your door looking for a job. If they are looking for work I would be suspicious. Something doesn’t add up. So how do we address the responsiveness issue in this environment? Go back to basics. Make a list of all the journeymen you have in your employ. How many of them would be good mentors? Then hire that

many helpers to work with those journeymen. This is just like the old days. You leverage the skills of the scarce resource by taking from them the work that someone else could and should do. Like sheet metal work, for example. And bring back the “helper” rate. That will be about half of the journeyman rate. The customer will like that, and they’ll like getting their work done in a more responsive manner. Then, let’s start to develop people. Let’s consider an “apprentice” program. Partner with a local technical school or junior college and create a program that will deliver the skills you need to obtain. They are more than willing to help out. Get more aggressive in your maintenance programs. This one needs your creativity. I believe, and most of you do, too, that you can train someone with basic mechanical skills to perform maintenance work within a three months. So, let’s hire people who have mechanical aptitude and train them. Consider hiring technical school students for four hours of work in the evening, or on weekends. There are many options, but we have to be creative. The time is now. RON SLEE (ron@rjslee.com) is the founder of R.J. Slee & Associates, Rancho Mirage, Calif., celebrating more than 30 years in business in the United States, a consulting firm that specializes in dealership operations. Ron also operates Quest Learning Centers, a company that provides training services specializing in product support, and Insight (M&R) Institute, a company that operates and facilitates “Dealer Twenty” Groups. Follow Ron on Twitter: @RonSlee; and read his blog at learningwithoutscars.com.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 59

Washington Insider

In Politics, A Little Hospitality Can Go A Long Way Inviting elected officials to visit your company is an educational experience they won’t forget. BY CHRISTIAN KLEIN

With the 2014 congressional elections fast approaching and distributors facing unprecedented political risk, AED is stepping up efforts to coordinate visits by members of Congress and congressional candidates to member facilities. Not only are congressional visits easy to set up and host, they also yield major benefits for you and AED. Simply put, there’s no better way to build the relationship between your company, your association, and your elected representatives than by bringing them to your facility. Coming to Washington, D.C. for the AED Fly-In and meeting with legislators on Capitol Hill is important because it shows you’re committed and invested in the process. But a facility visit makes abstract concepts more understandable, shows first-hand how you impact the local economy, illustrates how you’re affected by congressional decisions, and puts names to faces (specifically, yours and your workers). If you don’t think outreach matters, keep in mind that roughly one-third of the members of the House and Senate have been elected in the last five years. That means there are a lot of new people on Capitol Hill who know nothing about our industry. If you don’t think they’re interested in coming to see you, think again. Most of the lawmakers I’ve met want to do the right thing for their constituents; they just don’t always know what that is. Visiting your company is way to collect vital intelligence to guide their political decision-making. And then there’s the fact that our industry has a big “wow” factor. Whether male or female, Democrat

or Republican, every member of Congress is a former kid who probably played with construction equipment and would love to see real machines up close (and maybe even sit behind the controls). Coming to your company is their opportunity to do that. It’s also your opportunity to build the emotional connection between them and your business and plant yourself in their political memory. When an issue comes up that affects you, they’ll remember and (hopefully!) do the right thing from a policy perspective. If you haven’t had a politician to your company before, the concept might seem a bit intimidating. Just remember that you’re a voter and that every elected official works for you. Also keep in mind that you know infinitely more about your company, your industry, and how you’re affected by federal policy than they do. If you’re worried that the process of scheduling and hosting a visit may be difficult or confusing, don’t. Over the years, AED has helped organize countless meetings between AED members and elected officials. We’ve got it down to a science. The first step is to contact AED’s Washington office. We’ll help you identify your members of Congress and the appropriate staffer to reach out to about scheduling a visit. Then we’ll contact them on your behalf or give you a pre-written note to send extending an invitation. It may take a few weeks to work out the details, but it’s rare that members of Congress don’t ultimately seize the opportunity to come and see you. The visits themselves usually take

place mid-morning or mid-afternoon and start with a meeting in your conference room with your congressional guest and your company’s senior leadership team. That meeting is your opportunity to educate the member of Congress about your company, what it does, and its economic impact. It’s also a time to put policy issues in a real world context and explain how you’re affected (AED can provide talking points to help guide the conversation). After telling your guest about your company, take them on a tour to show them. During the tour, explain how various types of equipment are used, which helps illustrate the markets you serve. Where the opportunity presents itself, point out how federal policy affects your operations and markets (for example, that service technicians with commercial driver’s licenses are subject to hours of service rules). Of course, introduce your employees, show the lawmaker your machines up close, and take lots of pictures. If they want to do so, you can even gather your employees together and let your guest make some brief remarks. And don’t forget to give them a company cap to make the visit even more memorable. Let us know if you’re ready to take the plunge and set up a visit. You’ll find that in politics a little hospitality goes a long way. CHRISTIAN KLEIN (caklein@aednet.org) AED’s vice president of Government Affairs and Washington counsel. He can be reached at 703-739-9513.

July 2014 | Construction Equipment Distribution | www.cedmag.com | 61

Best Practices

(“The Power Of Being Wanted” continued from page 45)

generate positive word of mouth. Three recruiters work 16 local districts in Northeast Kansas to identify candidates. Coco also changed the program name from Diesel Technology to Heavy Diesel Construction, a term used by industry that is more marketable and descriptive. Working with Washburn made Esterly realize where the industry had shortcomings. “We as dealers need to get out and see these kids and talk to counselors in ninth and 10th grade, and give them a better understanding of our industry,” he said. “Partnering with Washburn will help us do that.” Washburn has made a commitment to removing barriers to technical education and helping students succeed. For example, to avoid losing potential candidates because of the upfront investment needed in tools, the school purchased $300,000 in tools from Snap-On. Four students are assigned to each toolbox. High school students entering the program can also save money because the state will pay the tuition for high school students in technical training programs. In addition, Washburn students also graduate with an OSHA card, as well as NC3 certifications in torque, diagnostics and metering. Something Worth Bragging About Coco doesn’t hesitate to promote the advantages of becoming a diesel technician. He says Washburn Tech offers a hands-on, high-tech, life-changing opportunity. “I say, ‘Pick a place where you want to live. You can get a diesel job. You can pick and choose if you are a good worker and drug free. Yes it’s dirty, sweaty and hot, but you are going to make a lot of money and love your work. Six figures if you are really good.’” While it’s still early in the program, Esterly is already excited about the opportunity to partner with Washburn Tech. “To see these students, the excitement level of starting their first year,

National Signing Day for Technical Education On Feb. 20, 2014, Washburn Tech held the first ever signing day for technical education. More than 600 students have signed letters of intent to attend the school. According to Clark Coco, dean of Washburn Institute of Technology, the signing brings dignity to the student’s choice and the decision to earn a technical education. the smiles on their faces. They were so excited to have this modern technology. It was a real pleasure to be part of it,” he said. VLP will continue to be involved with students enrolled in the program as it moves forward. While a high income is certainly a positive for recruiting technicians, it also makes it a challenge to find instructors. Consider that an instructor, who typically earns $45,000 per year, can earn twice or three times that working the field. The Case Technician Training Program While Victor L. Phillips is a key investor in Washburn Tech, the program has been designed to benefit all North American dealers who need technicians. Midwest Case Construction and Case IH dealers were invited to the school’s open house. “My goal with this program was not just to find technicians for VLP but to supply the industry with technicians,” said Esterly. He believes their company could potentially hire seven technicians from the program graduates. But among Case Construction, New Holland, and Case IH, there are more than 3,000 dealers who offer employment potential in North America. Case plans to set up three regional diesel technology schools – Washburn in the Midwest; Central Pennsylvania Institute of Science & Technology in the

62 | www.cedmag.com | Construction Equipment Distribution | July 2014

East (partnering with Groff Tractor); and a yet-to-be-named school on the West Coast partnering with Sonsray Equipment. According to Ruffalo, the plan is for each program to graduate between 16 and 32 technicians per year for a total of 48 to 96 qualified techs entering the workforce annually. An annual Career Day at each school will provide an opportunity for other dealers to recruit technicians for opportunities within their respective dealerships. While Case has supported technical schools in the past, they had never before invested this heavily in technical education. With a deeper level of involvement, Case will have much greater input to ensure the technicians learn the required skills and be able to provide dealerships with assessments based on their own standards. By reviewing assessments, they can identify and address any gaps in what students are learning. Instructors will all go through Case factory training during the summer. The investment is significant, but one that Case recognizes it must make to keep a high standard of customer service among its dealer network, and to help provide the industry with the technicians it needs. But equally important are the simple things that Washburn has done to attract interested students. There is a lot to be learned from this tech savvy partnership.

Sector Point of View

(‘As Housing Goes, So Goes the Nation’ continued from page 27)

ways to improve the performance of homes and consumption of energy, but standards have to be based on achievable goals. CED: Both the House and Senate have housing finance reform bills. NAHB supports the Senate bill. What is your reasoning? Kelly: The Senate bipartisan bill strikes an appropriate balance. We feel it provides a path forward to transparency and a way for large and small banks to participate in the mortgage finance system, which is an absolute imperative. Unlike the House bill, the Senate bill provides a federal backstop by creating a fund to be paid into by all participants in the game, a catastrophic fund, in the event we have another downturn. A prudent federal backstop is what has given the housing finance mortgage system a 30-year fixed rate mortgage. You won’t find such a mortgage in Canada. It gives

working families the first step up on the ladder to home ownership. If we are successful in the Senate, I am hopeful the House will move to adopt a more middle-of-the-road position. This would be a historic and monumental step forward for the nation and our economy. CED: Did your company’s business plan change as a consequence of the housing collapse? Kelly: Every builder standing today had to modify its business operation and we did the same. We went from building a lot to acquiring rental property and modernizing it. We have done a lot of that over the last few years and it has done well for us. We have a bunch of new things on the drawing board that we believe we will be able to move ahead with in the next six months or a year. CED: You sound optimistic. Kelly: We are optimistic that things will continue to improve. Like the rest of the industry, we are looking for prudent, balanced regulation, reduced regulation in

many instances, which will lead to greater job creation. We estimate the regulatory burden adds 16-25 percent to the cost of a home. There is egregious regulatory overreach at the federal level, but also at state and local levels. We believe that as home costs go up, opportunities to acquire homes diminish. We try to convince policymakers at all levels of government to understand that. A reasonable person will acknowledge some regulation is warranted. However, in terms of the homebuilder industry, regulation is excessive at every level of government. The negative impact goes beyond homebuilding, because as housing goes, so goes the nation. GILES LAMBERTSON is a retired journalist and freelance writer whose interest in the construction industry goes back to his carpentry days. He can be reached at gparkerel@ gmail.com

ADVERTISERS’ INDEX Ajax Tool Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Lowe Manufacturing Company, Inc. . . . . . . . . . . . . . . . . . . 46

Allied Construction Products, LLC . . . . . . . . . . . . . . . . . . . . 29

Okada America, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

BidSpotter.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

PFW Systems Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CE Attachments, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Pierce-Pacific Manufacturing Co. Inc. . . . . . . . . . . . . . . . . . 38

Charter Software Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Ritchie Bros. Auctioneers . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Coneqtec Universal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Direct Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 26 e-Emphasys Technologies, Inc. . . . . . . . . . . . . . . . . . . . .32-33 EPG Insurance, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 FRD Furukawa Rock Drill, USA . . . . . . . . . . . . . . . . . . . . . . . 34 Glynn General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 51

SANY Heavy Industry Co., LTD . . . . . . . . . . . . . . . . . . . . . . IFC Screen Machine Industries, Inc. . . . . . . . . . . . . . . . . . . . . . . 17 Sentry Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Solesbee’s Equip. & Attachments Inc. . . . . . . . . . . . . . . . . . 31 Stewart-Amos Equipment Co. . . . . . . . . . . . . . . . . . . . . . . . 47

HKX, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Sullivan-Palatek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IBC

HydrauliCircuit Technology . . . . . . . . . . . . . . . . . . . . . . . . . 42

Unified Purchasing Group . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Infor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Vacuworx Global, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Leading Edge Attachments . . . . . . . . . . . . . . . . . . . . . . . . . 27

Woods Equipment Company. . . . . . . . . . . . . . . . . . . . . . . . 39

Loftness Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

XAPT Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OBC

As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2013 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate — $39 per year for members; $79 per year for nonmembers. Office of publication: 600 W. 22nd St., Suite 220, Oak Brook, Ill. Phone: 630-574-0650. Periodicals postage at Hinsdale, Ill. 60521 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 600 W. 22nd St., Suite 220, Oak Brook, Ill. 60523 July 2014 | Construction Equipment Distribution | www.cedmag.com | 63

Dealer Data

April Construction Advances 3 Percent Gains reported for nonresidential building and housing, while nonbuilding construction (public works and electric utilities) retreated. First four months of 2014: $153.8 billion, unchanged from the same period a year ago. Year-To-Date Construction Starts Unadjusted Totals, In Millions $

Monthly Construction Starts Seasonally Adjusted Annual Rates, In Millions $ Nonresidential Building Residential Building Nonbuilding Construction TOTAL Construction

April 2014

March 2014

% Change

$533,716

$518,521

Source: McGraw-Hill Construction, www.construction.com

Nonresidential Building Residential Building Nonbuilding Construction TOTAL Construction

4 Mo. 2014

4 Mo. 2013

% Change

$153,825

$154,307

-0-

Source: McGraw-Hill Construction, www.construction.com

Monthly Sales Volume by Original Equipment Cost with Recovery %

This graph illustrates sales of used rental fleet by the major North American rental equipment companies for the last 24 months. Each monthâ&#x20AC;&#x2122;s equipment sale volumes are expressed as a percentage of the total original equipment cost (â&#x20AC;&#x153;OECâ&#x20AC;?) sold in the highest volume month, with December 2013 representing 100 percent, (e.g. total OEC sold in June 2013 was approximately 60% of total OEC sold in December 2013). Actual sale $ volume is illustrated as the blue component of each bar in the graph. The recovery (i.e. sales $ as a percentage of OEC sold) is indicated within the bar for each month (e.g. June 2013 sales $ recovery was 52.6% of total OEC sold).

Source: Rouse Asset Services. Contact Gary McArdle at gmcardle@rouseservices.com, (310) 363-7520

The Dirty Dozen - 8&& Ă&#x20AC;OLQJV RQ HDUWKPRYLQJ XQLWV Equipment Description Articulated Dump Trucks Crawler Dozers

APR 13

MAY 13

JUN 13

JUL 13

AUG 13

SEP 13

OCT 13

NOV 13

DEC 13

JAN 14

FEB 14

MAR 14

Grand Total

111

120

108

1,008

269

307

267

355

365

352

362

309

435

384

197

318

3,920

Crawler Loaders

105

662

719

733

700

847

778

767

605

965

799

504

649

8,728

282

749

925

775

886

809

815

909

702

996

1,027

467

704

9,764

104

112

110

105

121

110

125

1,236

Skid-Steer Loaders

960

1,076

896

912

797

912

1,238

1,319

1,632

1,115

721

861 12,439

Tractor Loader Backhoes

Excavators - Crawler, Hydraulic Excavators - Wheeled, Hydraulic Mini Excavators Motor Graders Scrapers - Conventional

361

356

294

400

383

366

369

290

418

431

246

400

Wheel Loaders < 80 HP

131

134

1,011

Wheel Loaders > 80 HP

489

484

440

522

467

518

590

563

865

552

372

484

6,346

4,564 4,069 5,729

4,615

Grand Total

3,715

4,168 3,700 4,064 3,999 4,060

Supplied by Equipment Data Associates, Charlotte, N.C.

64 | www.cedmag.com | Construction Equipment Distribution | July 2014

4,314

2,770 3,776 49,229

Diesel or Gas Powered 185 Construction Air Compressors

Industry Shows 2 Tools Sold with Every Portable AirCompressor

Large Portable Air Compressor Pressure Ranges 750 - 1800 cfm Industrial Air Compressors Range from 5 - 450 HP Sullivan-Palatek 1201 W US Hyw 20 Michigan City, IN 46360 PH: 219-874-2497 - 800-438-6203 www.sullivanpalatek.com

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