396232 october 2014

October 2014

www.cedmag.com

While the rest of us were hard at work... See how every single le lawmaker voted on AED’s most critical issues

What Was Congress Doing?

Plus: 22 Don’t let a fire put you out of business 24 New spins on rental could change the market 38 How did they come up with THAT name?

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Contents

Award Winning

OCTOBER 2014 Editorial Team Executive Editor and Director of Programs KIM PHELAN kphelan@aednet.org

Vol. 80, No. 10

FEATURES

COLUMNS

From the Chairman 5 Out with the old, and in with the – happening!

Contributing Editor JOANNE COSTIN pr@aednet.org

Editor’s Note 7 Educating yourself should trump everything else.

Graphic Production EVA BELMONTE design@aednet.org eva@neggie.net

On the Numbers 45 Pay attention to these Top 3 trends.

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

Business Outlook 47 The Hidden Costs of a Dealership Accident 22 When developing your company’s risk management plan, consider all the things that aren’t covered by insurance – this should change your approach on prevention!

Who and What Are Shaking Up the Rental Model 24 A new “third-party” service company could do to equipment rental what Expedia did to travel. And another enables machine and operator rental among contractors.

North American market still best in the world.

Aftermarket 49 Technology is your friend in capturing market share.

View From the Hill 51 Texas Congressman calls for tax reform with Jumpstart America plan.

FROM THE COVER

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

DEPARTMENTS Inside AED Groundwork Industry Beat Advertisers’ Index Dealer Data

Advertising Sales Manager ALBERT J. RAMIREZ 800-388-0650 ext. 311 aramirez@aednet.org Production Manager MARTIN CABRAL 800-388-0650 ext. 313 mcabral@aednet.org

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

Who Did What in a “Do-Nothing” Congress? 28 As November elections near, use AED’s exclusive Vote Chart to determine which lawmakers have sided with the industry’s top priorities.

The Name Game 38 Ever scratch your head about machine nomenclature? CED takes a light-side look at some of the thinking that goes into naming equipment models.

8 14 16 55 56

Plus: Closer Look: ForwardLooking Finance with DLL 42

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

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From the Chairman President & CEO - BRIAN MCGUIRE Associated Equipment Distributors Oak Brook, Ill.

Change Is In the Air

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

Time to get movin’ with AED, because this bus is on a roll for your business.

OFFICERS

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

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 TIM WATTERS

For AED, 2014 is all about being new, refreshed, energized, current, updated, modernized, and even happening – and the Executive Forum in Chicago proved no exception!! Congrats to Brian McGuire, Kim Phelan, and the rest of the staff for packing so much value into such a short format (just a day-and-a half!) – I can’t remember when I’ve enjoyed the Forum experience as much as I did this year. (see pictures on page 10). I really enjoyed our ‘Pecha Kucha’ session (Dude!), and if you don’t know what that is, then you should have been there – and don’t make the same mistake next year!! Other things I especially liked: Mike Thompson’s story of successfully battling extreme “no-growth’ environmental groups to get approval for a much-needed highway around Birmingham An informed and upbeat, economic forecast from Dave Zwicke of the Portland Cement Association A stirring, if a bit frightening, call-toaction from Ed Gordon, author of the book Future Jobs: Solving the Employment & Skills Crisis, to forestall the looming labor shortage crisis about to hit U.S. industries of all types Meeting producer, director, and journalist Phelim McAleer, of the film FrackNation Our own Christian Klein with his always insightful Washington report, and Mike Frommelt’s seminar on corporate values and the importance of finding people that fit your own unique company culture But the one thing that I found most valuable from attending the Forum this year, and it’s the same thing that I find to be the most valuable at every other major AED event – is catching up with all my friends and contacts that I meet there!! Be they suppliers, banks, finance companies, manufacturers, or other dealers, I truly enjoy and value the opportunity to see and dialogue

with the great personalities that work in and around our industry. And there is no other event or place where you can find such a collection of ‘movers and shakers!’ Only at AED events will you find people from ALL sectors of our industry, and from ALL manufacturer networks, gathered at one place with a common goal of driving our collective selves forward! This year’s Forum achieved exactly what was intended: to give dealer principals and key managers information, data and tactics to improve our business practices, policies, and strategic planning, and introduce new ideas to help us stay ahead of the curve, ready to take advantage of new opportunities as they arise and reduce the fallout from hazards or threats to our businesses. And from what I am hearing, the Forum is just a small taste of what we are going to get at the AED Summit in Orlando this February!! Don’t miss the Summit! Change is in the air at AED, and will continue to be a major theme at the Summit. Expect a lot more emphasis on dealer education at Summit, plus a lot more fun. And even more ways to participate in your association! New committees and advisory councils, new spins on our networking. It’s great to be a part of this evolution – why not join us and help continue our progress. This bus is moving, and to some great new places, are you going to be on it? Or are you going to be left at the curb? Registration for Summit opens online Oct. 15 – bring your key people to Orlando Feb. 10-13!

TIM WATTERS (timwatters@hoffmanequip.com) is president of Hoffman Equipment in Piscataway, N.J.

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

It’s our business to know the insurance needs of your industrial equipment dealership. We help you create flexible, custom-made risk management solutions to protect you when you need it most, including employee safety, equipment and inventory management, and employment practices liability. With Sentry, you’ll spend less time worrying about insurance and more time focusing on your industrial equipment dealership. And that’s good business. Property and casualty coverages and safety services are underwritten, issued and/or administered by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. 73-25

729249 03/07/13

Editor’s Note

When to Play Your Trump Card A million things vie for your calendar – but some opportunities should always win out.

BY KIM PHELAN

List-makers like me like to have –not of a personal nature – that would all their ducks in a row – we’re also actually cause you to bump a meeting just plain afraid of forgetting imporoff your calendar? tant tasks because our brains are too May I be so bold as to recommend saturated, and in my case, shrinking two that are deserving of a place on with age. So, I keep a running digital your must-do list, regardless of what “Stickies” list on my computer screen as else is already going on. well as a real Post-it note pad next to my keyboard at all times. Get On Board With Telematics Saturday is not exempt from my Attendees at last month’s Executive lists; in fact, without a to-do list on Forum heard from Association of my counter I would flounder aimEquipment Management Professionals lessly through my weekend, posCEO Stan Orr, who spoke on behalf of sibly advancing no further than my the fleet managers who comprise this customary mimosas and TV cooking association – and what Stan emphashows. There’s so much to do and so sized is the non-negotiable need for little time, and I must stay focused on dealers to lead the way on adoption the priorities lest my herd and I face a and applications of telematics for their weeklong diet of Doritos and rotting customers. Their most urgent needs refrigerator remnants; and worse are that dealers (1.) understand what than that, a week of empty underthe customer needs from telematics, wear drawers. But last weekend, my (2.) understand how they will deSaturday got trumped and in all ways ploy telematics, (3.) offer a staff well trampled by something of imminently trained in the advantages and opgreater importance: utter deference portunities of telematics, and (4.) put to every whim and perceived need of people in place to receive data and my daughter on the occasion of her alerts and be prepared to provide the first Homecoming dance. Lucky for appropriate assistance. me this child is not a big foo-foo diva Your customers are looking to your company for guidance, education and girl, but all my goals were readily set aside because that day, really, nothing collaboration. They’re asking you to be their trusted advisor and partner in else mattered except making happy this technology, which they and their memories for her. customers are demanding. Please don’t You have trump cards, too. The let them down. The best way you can personal ones are no-brainers, and I doubt anyone ever regrets laying down immerse into telematics is to attend their own agenda when the needs of a AEMP’s Asset Management Symposium Nov. 4-5 at Nashville’s Sheraton loved one are at stake. I would suggest that business trump Music City Hotel, where they are devoting almost the entire agenda to cards are more difficult to identify and best practices in this area. AED has had act on. A million things a day clamber a role in the program for the first time, for our attention and bellow that they and is presenting a dealer panel titled, alone are more important than everything else. But what is the kind of thing “Taking the ‘No’ Out of Technology: the

Promise, the Power – Yes, the Problems – of Telematics.” See the details and sign up at aemp.org/symposium. It’s time to scout out this huge profit and customer-service opportunity. Your Go-To Place for Dealer Education The second trump card that deserves a move to the top of your list is AED’s education-ignited Summit on Feb. 1013 at Orlando’s Marriott World Center. We’re working diligently to create a dynamic new convention experience for you and your managers with a wide selection of industry-specific hot topics running concurrently on two afternoons. If you’ve ever viewed Summit as an expendable, flip-a-coin type of event, we are determined to blow that approach out the window. Never again can an AED member afford to miss the AED Summit! Education tracks will include HR, Sales, Product Support, Executive, Financial, and Marketing, and the span of subjects is richer and fuller than it’s ever been. Registration opens online Oct. 15 with tiered pricing designed to encourage multiple attendees from your company. Honestly, there is going to be way more going on than you could possibly cover alone, so make it a foursome at least, which reminds me: Don’t forget to golf with the AED Foundation on Tuesday morning the 10th! Block off Feb 10-13 now, and don’t let anything muscle it off your calendar. Thanks for reading! KIM PHELAN (kphelan@aednet.org) is the executive editor of Construction Equipment Distribution and director of programs for AED.

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

Inside AED

$(' WR +RVW )LUVW ´2WWDZD %ULHÀQJµ 2FW All Canadian members are invited to attend and learn more about the federal issues impacting your costs of doing business. AED will host its first-ever public policy conference on Thursday, Oct. 30 at the Ottawa Marriott in downtown Ottawa. Attendees will hear from a range of high-impact speakers about the policy issues affecting the construction, energy, farm, and mining equipment industries in Canada. “When AED and CAED joined forces in 2010, we agreed to deliver the same level of programming and support to you that are provided to all of our members in the U.S.,” said AED President and CEO Brian P. McGuire. “One of our greatest services is our ability to influence public policy that affects the equipment industry. This is why AED has partnered with the North American Equipment Dealers Association (NAEDA) and the Canadian Construction Association (CCA) to organize this unique and powerful event.” The goal of the Ottawa Briefing is to strengthen the network of Canadian dealers and make their voice better heard on Parliament Hill. The Ottawa Briefing will map strategies to achieve positive policy outcomes, outline opportunities for partnership between national interest groups and industry members and investigate the issues that affect everyone’s bottom line. Federal policy is poised to have a bigger and bigger impact on Canadian dealers. The New Building Canada Plan will provide $70 billion for public infrastructure over

the next decade, the largest and longest federal infrastructure plan in the nation’s history. However, challenges remain for the businesses competing for this investment. The industry must also focus more on the fight to reduce compliance burdens and administrative costs, reform the tax structure, and ensure the healthiest possible environment for equipment industry growth in Canada. Please visit http://www.aednet.org/ottawabriefing to learn more about the event and to register. Call 773-7399513 for details. Book lodging at the Ottawa Marriott, 100 Kent Street, Ottawa, Ontario, 800-853-8463. http://bit.ly/AEDOttawa Topics will include: Tax and regulatory issues that affect dealer costs of doing business How government and industry can work together to confront the skilled worker shortage The provincial versus federal role in policymaking The economic implications of the 2015 federal elections How the equipment industry can more effectively engage with government to help the industry achieve positive policy outcomes

Where the Rubber Meets the Road: Hear Harley-Davidson Branding Lessons at Summit If you want brand-building theory, pick up a marketing textbook. If you want to know what works, don’t miss Clyde Fessler’s presentation at AED Summit in February. Fessler, now retired, is considered by many to be the marketing guru behind the dramatic turnaround of Harley-Davidson. In his presentation, he offers a behindthe scenes look at the strategy that took Harley-Davidson from the verge of bankruptcy to one of the top performing companies on the New York Stock Exchange, and one of the most recognized brands in the world. Fessler spent nearly 25 years at Harley-Davidson. He

Proposed New Members Diamond Mowers Sioux Falls, S.D.

FirstMerit Bank Des Plaines, Ill.

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.

8 | www.cedmag.com | Construction Equipment Distribution | October 2014

joined the company in 1977 as the advertising and promotions manager just as the brand was facing fierce competition from foreign rivals as well as poor economic conditions. To address the situation, HarleyDavidson analyzed its strengths and weaknesses and decided on a strategy focused on the four basic “P’s” of marketing – product, price, place and promotion. Convinced that they could not compete with competition head-on, Harley -Davidson decided to do things differently and be the alternative – they would do things the competition couldn’t do. “Any product can be imitated, but a brand cannot,“ said Fessler. Through (continued on page 12)

While marketing manager, Clyde Fessler launched the Harley Owners Group that today boasts more than 500,000 members. As vice president of General Merchandise, he led the Motor Clothes team from $20 million in annual sales to over $100 million in a period of five years.

“Having a lender that understands this industry is important – to me and my customers.”

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The right equipment finance programs are critical to helping you sell equipment. So talk to an equipment finance company that has experience in and a commitment to the construction industry — one that has the stability and flexibility to support you through all economic cycles. Not only do we know the difference between a dozer and a grader, but we understand that making the purchase process quick and easy for your customers is essential. Whether you sell equipment in the U.S., Canada, or both, we can help. To learn more about what the Wells Fargo Equipment Finance team can do for you, start a conversation with us today by calling Sidney Sexson at 480-784-9667. wellsfargo.com/construction

Manufacturer subsidy programs

© 2013 Wells Fargo Equipment Finance, Inc. All rights reserved. All applications are subject to credit approval. Canadian coverage provided by Wells Fargo Equipment Finance Company, a company that is not regulated as a financial institution, a bank holding company or an insurance holding company in Canada. MC-5533

Inside AED

*UHDW 0RPHQWV )URP WKH )RUXP Program scores 30-percent increase in attendance with lively new speakers and formats.

Mike Thompson from Thompson Tractor, the Caterpiller dealer in Birmingham, Ala., told why it’s important to show up and fight back when environmental extremism threatens approved highway projects.

Chandra Brown, an official from the U.S. Department of Commerce, provided a global perspective on issues impacting equipment exports.

Economist David Zwicke, Portland Cement Association, set the stage Thursday morning with an optimistic outlook.

If you care about the future of your business after you exit, then values and culture must play an equal role ass financial planning, according to Mike Frommelt, KeyStone Search.

10 | www.cedmag.com | Construction Equipment Distribution | October 2014

Author and consultant Ed Gordon warned of the worsening shortage of a skilled workforce, and detailed what the long-term, regionally-based solutions look like.

We watched his movie, “FrackNation” over lunch, then heard journalist and filmmaker Phelim McAleer talk about the absence of facts in celebrity-driven antifracking movements.

Inside AED

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AED President & CEO Brian McGuire recognized Jassen Volk from Blanchard Machinery, Columbia, S.C., for the dealership’s 25 years of AED membership.

Steve Leonard, president and CEO of American Truck & Bus, gave practical tips that will create organic growth in profitability.

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A warm and humorous welcome was delivered by AED’s 2014 Chairman Tim Watters, who speculated on the true meaning of Pecha Kucha.

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October 2014 | Construction Equipment Distribution | www.cedmag.com | 11

Inside AED

(“Where the Rubber Meets the Road ” continued from page 8)

the Harley-Davidson case study Fessler provides marketing lessons in branding, customer service and getting close to the customer. “Rather than theory, my story is where the rubber meets the road,” said Fessler. Fessler will challenge dealers to think beyond products, to service, parts, support, and education. “Customers want more than a product,” explained Fessler. He dismisses the idea that small companies cannot be brands. “Every dealership is a brand unto itself,” added Fessler.

According to Fessler, HarleyHear Clyde Fessler at Summit 2015 Feb. 10-13 Davidson dealers were fully Orlando, Fla. supported by the manuwww.aednet.org/events facturer throughout the turnaround, providing tools “While the tactics today may be such as education, financing, different, the principles are the same,” inventory and management techhe said. In the process of demonstratniques. This became a differentiating ing how he overcame challenges at factor. “We gave them the tools they needed to succeed in the marketplace, Harley-Davidson, Fessler covers how to create a vision and mission, define and with that we drove a wedge goals and strategies, create customer between us and the competition,” loyalty by exceeding expectations and said Fessler. build a brand. Dealers and manufacSo what relevance does Harleyturers will both walk away with new Davidson’s marketing problem have tools and thinking to drive their brand for today’s construction equipment dealerships? building back home.

MARK YOUR

CALENDAR

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

Oct. 28

Nov. 4

Webinar: The Customer of the Future: Will They Be Loyal to You?

Webinar: Parts Management – Tele-selling - 11 a.m.-Noon CDT

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

Presented by Ron Slee

Webinar: Purposeful and Productive Team Meetings: A Workshop for Sales Managers - 10-11:30 a.m. CDT

Oct. 21 Webinar: Service Management – Inspection - 11 a.m.-Noon CDT

Presented by Ron Slee Oct. 21 Webinar: Service Management – Work Order Processing

2-3 p.m. CDT | Presented by Ron Slee Oct. 22 Webinar: Service Management – Labor Rates - 11 a.m.- Noon CDT

Presented by Ron Slee Oct. 22 Webinar: Service Management – Service Organization - 2-3 p.m. CDT

Presented by Ron Slee

Oct. 28 Webinar: Parts Management – Basic Inventory Control - 2-3 p.m. CDT

Presented by Ron Slee Oct. 29 Webinar: Parts Management – Warehousing - 11 a.m.-Noon CDT

Presented by Ron Slee Oct. 29 Webinar: Parts Management Pricing - 2-3 p.m. CDT

Presented by Ron Slee Oct. 30 Webinar: The Customer of the Future: Will they be loyal to you?

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

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

Presented by Don Buttrey Sales Professional Training Nov. 6 Webinar: Developing an Effective Marketing and Strategy Plan Through Research - 10-11 a.m. CDT |

Presented by Debbie Frakes Nov. 10-11 Parts Management Unit I: When It’s Right (WIR I) - Chicago, Ill.| Presented

by Ron Slee Nov. 11-13 Four Pillars of the Sales Profession for Dealers - Dayton, Ohio | Present-

ed by Don Buttrey Feb. 10-13, 2015 2015 AED Summit & CONDEX

Orlando, Fla.

Groundwork OFFICERS

Chairman A. ROY KERN Equipment Corporation of America Coraopolis, Pa.

The AED Foundation’s School-To-Work Strategy

Vice Chairman DENNIS VANDER MOLEN Vermeer MidSouth, Inc. Jackson, Miss.

More than 500 technicians graduate from AED-accredited technical colleges annually.

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.

The AED Foundation and its AED-accredited technical college network are streaming highly trained technicians into the equipment distribution industry at a rate of 500 graduates per year. Our school partnership programs are based on industry needs with input from AED-affiliated dealers, manufacturers, technical colleges and volunteers. Currently, there are 36 diesel/equipment AED Affiliated programs at 26 colleges and one high school program. The accreditation process requires countless hours of work and can take years, but the payoff – thousands of new technicians in the workplace – is well worth the effort. Schools, students and dealers all enjoy the benefits of an AED-accredited program. Here’s what they have to say: “Working with an AED Accredited School, State University of New York at Cobleskill, gives Nortrax the confidence to know students coming out of the two-year program have the experience in Deere Stacey Johnson products, hydraulics, etc. to work at our dealership right after graduation. The program not only provides students the technical skills required but also teaches them responsibility and accountability; both important characteristics to our business.” Stacey Johnson; Corporate Recruiter, Nortrax, a John Deere Company “When I discovered that State University of New York at Cobleskill (AED Accredited School) had a program directed toward construction and forestry equipment I knew it was the school that I wanted to earn my degree from. I have always been intrigued by the way things work and how to repair

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

them. While completing the program I worked at Nortrax. Now that I have completed the program, I plan to continue working for Nortrax as a technician, with the hope of someday Ben Davis owning my own logging and excavation business.” Ben Davis, 2013 Mike Rowe scholarship recipient; State University of New York at Cobleskill graduate, now a Nortrax employee “The relationship that AED has helped to facilitate with the AED member dealers and our SUNY Cobleskill Diesel Technology students is exceptional. The department has developed many new dealership contacts through this partnership, which in turn helps to keep our coursework relevant and provides Douglas job opportunities for our Hammmond students upon graduation. Students leave the program trained on modern technology prepared to be a productive technician in the workforce. It is a win for all parties involved; students, dealers, and the college.” Douglas Hammond, Department Chair; Agricultural Engineering Technology Department; State University of New York at Cobleskill This month, the AED Foundation kicks off the 2015 Annual Campaign. To continue the development of these and other AED Foundation services and programs, we need your help. Call Rebecca Lintow at 630-4685113 or e-mail rlintow@aednet.org to make a tax-deductible donation. All investors are recognized for their generosity on listings in an issue of CED magazine and on the Investor Boards at AED Summit in February.

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Industry Beat

New Draft Telematics API Standard Available

Dealers, end-users are encouraged to review, understand 19 data fields. The AEM/AEMP Draft Telematics API (Application Programming Interface) Standard is now available to help dealers and end-users become familiar with its contents. Users can download the standard at the AEM or AEMP websites and are encouraged to ask questions and receive clarifications through an API developer group. Interested individuals can access the group at: https://groups.google.com/d/forum/telematicsstandard. Final language is pending acceptance through the International Organization for Standardization (ISO). The AEM/AEMP Draft Telematics API Standard expands the original AEMP Telematics Standard to include 19 data fields (with fault code capability). The Draft API standard also changes how the data is accessed: via an Application Programming Interface (API) with standardized server-toserver communication protocols, so end users with mixed equipment fleets can use their own business systems and software without the need to work across multiple

telematics provider applications. Currently, telematics data related to crane operations as well as other niche products are excluded from the Draft API standard. Next steps include working on inclusion of crane data fields, followed by mobile elevating work platforms and air compressors. The standard is a collaborative effort of the Association of Equipment Manufacturers (AEM) and the Association of Equipment Management Professionals (AEMP), working on behalf of their members and the industry. To achieve a globally recognized standard for conformity worldwide, the AEM/AEMP Draft Telematics API Standard will be submitted for acceptance by the ISO. The Draft API standard’s secure Internet protocol allows for manufacturer protection of proprietary information; disclosure to third-party companies for the purpose of aggregation is not permitted. More information is available at aem.org or aemp.org.

Sumitomo Mitsui Finance and Leasing Debuts in New York The world’s third largest equipment finance and leasing company has launched a business based in the United States’ largest city. Sumitomo Mitsui Finance and Leasing Co. (SMFL), Inc. debuted in New York City on Oct. 1. With a starting staff of 25 professionals and housed in the world’s 16th largest bank, SMFL has its sights set on the U.S. construction, transportation and information technology sectors, as well as U.S. based clients of parent companies Sumitomo Mitsui Financial Group and Sumitomo Corporation. The new leasing business also has a branch office at in San Mateo, Calif. Jeffrey Whitcomb of Batavia, Ill., has been appointed as senior vice president and executive director. A veteran of 16 years in the equipment leasing and finance industry, he started his career as one of three founders at Captive Capital Corpora- Jeffrey Whitcomb tion – one of the first web platforms for managing multilender vendor finance programs. He then led business development for the C&I team at De Lage Landen Financial Services. Finally, Mr. Whitcomb helped lead continued growth at People’s Capital and Leasing Corporation as they expanded their construction and transportation portfolios coming out of the financial crisis.

Bill Mattocks has been appointed senior vice president, director of program management. He will be responsible for developing deep vendor relationships with SMFL’s program partners in both the construction and transportation segments and for managing a team of five regional sales and marketing managers. Bill comes to SMFL from Bank Bill Mattocks of the West, where he served in a similar role. Bill will be headquartered out of Savannah, Ga. Thomas J. Pagnotti has been hired as vice president and Northeast region sales manager for construction and transportation leasing and finance. Tom comes to SMFL from Susquehanna Commercial Finance. Tom’s career in the industry spans 28 years including working for Furnival Machinery Company (a Komatsu dealership), Ingersoll-Rand Thomas Pagnotti Finance, Citi Capital Commercial Corporation, De Lage Landen Financial Services, Co-Activ Capital Partners, and Penn Jersey Machinery (a Volvo Construction Equipment dealer).

(continued on page 18)

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Industry Beat

Atlas Copco Celebrates 30th Anniversary of Atlascopcosaurus “Not every company has a dinosaur species named after it,” said Sofie Gielen, Atlas Copco’s marketing communications director, in commemorating the 30th anniversary of the discovery of Atlascopcosaurus. “Three decades later, we’re still extremely proud of the fact that our equipment helped unearth the fossilized skeleton of Atlascopcosaurus so it could be shared with the entire world.” Atlascopcosaurus was estimated to be 6.5 to 13 feet long and weighed 276 pounds. The dinosaur belonged to the Hypsilophodontidae family and lived during the early Cretaceous Period. Scientists infer that it was a small, bipedal herbivore that would have foraged for its food and stayed out of the way of larger, carnivorous predators. Thomas H. Rich, Ph.D, a paleontologist from the Museum of Victoria, Australia, and Patricia VickersRich from Monash University, Melbourne, discovered Atlascopcosaurus at Dinosaur Cove, a fossil-rich area on the southeast coast of Australia, close to Victoria. During Rich’s first visit to the area in 1980, he and two colleagues revealed fragments of rock-embedded bone. Four years later, a group of hundreds of student volunteers, paleontology scientists and miners began excavations. The research group’s equipment included Atlas Copco rock drills, pneumatic tools and compressors. The digging teams often worked in dark, narrow tunnels, which at times were muddy and slippery. The excavation

site was located next to a steep cliff overlooking the sea, which complicated work even further. The fossils they were after were embedded in layers of sand, mud and clay that had been pressed together into hard rock for millions of years, according to some scientists. It was slow going, with the teams removing approxiAtlascopcosaurus was discovmately 66 pounds of hard ered in 1984 and named in rock for every two pounds honor of Atlas Copco’s supof dinosaur bone. port of archeological research. Ultimately, the excavation revealed Atlascopcosaurus loadsi. The specific name loadsi refers to Bill Loads, Atlas Copco’s manager in Victoria, who made the decision to support the project. When Rich and Vickers-Rich named the fossil in 1989, they looked to the company whose equipment and expert assistance was so instrumental in the success of the dig. Rich said he was grateful for the support Atlas Copco provided and impressed with the reliability of the equipment. “It was because of that record of reliability that, in 2007, I insisted on using Atlas Copco equipment during a dinosaur excavation from permafrost in a tunnel on the North Slope of Alaska.”

AED Joins Coalition to Request Rescission on OSHA Crane Operator &HUWLÀFDWLRQ *XLGDQFH AED joined a broad coalition on a letter to Secretary of Labor Thomas Perez requesting a rescission of OSHA guidance on crane operator certification with the goal of reduction of crane accidents caused by operator error. The coalition unanimously agrees that the current certification requirements in 29 CFR 1926.1427 for “operator qualification and certification” would seriously undermine crane safety and that implementation of 1427(b)(2) would jeopardize the well-being of operators, other workers and the general public. The coalition is encouraging OSHA both to issue a revised regulation providing that the employer’s training and qualification assessment remain the same as it has

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since the Act was created in 1970, and also to immediately rescind the agency’s guidance on certification by capacity and type. To support these requests, the letter highlighted the lack of underlying analysis to support the rule as well as the potential impact on business caused by its implementation. Above all, the small businesses with limited training budgets – and the highest fatality rates – are delaying certification actions until there is clear direction on requirements. With the Nov. 14 date of enforcement imminent, AED is continuing to support the coalition effort and working to minimize the regulatory burden of crane operator certification for our members and their customers.

Industry Beat

IN THE NEWS QUICK COUPLER SAFETY CLASS DRAWS CUSTOMERS

Proper equipment usage and jobsite safety is a top priority for the construction industry. More than 35 customers, operators and foremen recently attended a quick coupler safety class hosted by RoadBuilders Machinery & Supply, in conjunction with JRB/Paladin Attachments, in the dealer’s Grand Island, Neb. location. “It’s great to partner with our vendors and manufacturers for events like this to maintain awareness about safety,” said Tony Randone, district sales manager for RoadBuilders Machinery & Supply. “I guarantee everyone learned something new.” Jason Andringa, will serve as Vermeer Corp.’s next president and CEO beginning Nov. 1, 2015. In preparation, he will take on the responsibilities of president and chief operating officer for one year (starting Nov. 1, 2014), and then will transition to the role of president & CEO. He currently serves as president of Forage and Environmental Solutions. Mary Andringa, current president and CEO, will assume the role of CEO and chair of the board on Nov. 1, 2014, and will transition exclusively to chair of the Board on Nov. 1, 2015. Bob Vermeer, current chairman of the board, will assume the role of chair emeritus.

Vermeer Texas-Louisiana, with 12 locations across Texas and southern Louisiana, has announced several promotions. Darren Tallman has been promoted to vice president and chief financial officer. Tallman has been with Vermeer Texas-Louisiana for 13 years, previously serving as vice president of finance. In this role, Tallman will oversee the accounting, credit and finance departments as well as manage special projects, including acquisitions. Jason Rush has been named vice president, North Region, and Brian Harris has been named vice president, South Region. Rush and Darren Tallman Harris are responsible for sales, parts, service and overall operations management for the six locations in their respective regions. Rush has been with Vermeer TexasLouisiana since 2000, Jason Rush previously serving as the sales manager for North Texas. Harris has also been with the company since 2000 and most recently was the branch manager for the San Antonio location and sales Brian Harris manager for South Texas. Dennis Goodman has been promoted to vice president of Parts and Service. Goodman has been with the company for nine years and is Dennis Goodman responsible for the overall operations of the Parts and Service departments in addition to the information technology

and warranty departments. Goodman is also responsible for overseeing the company’s rebuild facility. Stowers Machinery Corp. acquired the expanded Cat Mining equipment distribution and support business for its territories from Caterpillar Global Mining LLC. Stowers Machinery is the authorized Cat dealer in east Tennessee. Komatsu Ltd. recently opened the newly constructed Kanto Spare Parts Distribution Center on the premises of the Oyama Plant in Japan. Combined with the Global Operation Center, a new organization to comprehensively control the sales, production and inventory of spare parts of construction equipment, the new Distribution Center is positioned as Komatsu Group’s global spare parts center. Current plans call for the introduction to parts distribution centers in Australia, North America and Japan (Kansai and Hokuriku areas) by the end of FY2015. The longest standing Liebherr dealer in the U.S, American State Equipment, has renewed its dealer agreement for the full line of Liebherr earthmoving and material handling equipment in the states of Wisconsin, Minnesota and the Upper Peninsula of Michigan and expanded its territory to include the entire state of Illinois with subsidiary Finkbiner Equipment Company. American State Equipment operates five branches including Milwaukee, Wausau and Little Chute, Wis.; Minneapolis/St, Paul, Duluth, Minn., and Finkbiner Equipment Co., located in Chicago. Hitachi America, Ltd. appointed Masaya Watanabe president and CEO. Watanabe succeeds Kenji Nakamura, who takes on the role of advisor to CMO, Corporate Sales & Marketing Group of Hitachi, Ltd. He also continues as vice president (continued on next page)

October 2014 | Construction Equipment Distribution | www.cedmag.com | 19

Industry Beat

and executive officer of Hitachi, Ltd., in charge of Global Service Business Promotion of Information & Telecommunication Systems Business, chairman & CEO of Hitachi Information & Telecommunication Systems Global Holding Corporation, and chairman of Hitachi Consulting Corporation. Watanabe began his assignment in the U.S. in April 2014 to more effectively oversee Hitachi’s operations in the U.S. Terex Corp. opened its new Genie Oklahoma City Training Center. The 18,000-square-foot facility is centrally located for ease of travel from either U.S. coast. An amphitheaterstyle training room provides comfortable seating for up to 12 students. Genie will also continue to offer training at its Redmond, Wash., campus.

Hyundai Construction Equipment Americas, Inc. is partnering with Werk-Brau to provide a wider array of attachment options to their customers. The agreement will allow customers to purchase Hyundai equipment with Werk-Brau attachments through Hyundai’s dealer network. Werk-Brau will be responsible for the timing and delivery of all products.

Atlas Copco has appointed Andrew Walker to be president of the Construction Technique business area and member of group management. Walker is currently president of the Service division in the Compressor Technique business area.

F&W Equipment Corp. celebrates its 75th anniversary serving the Connecticut construction market. Since 1939 and for three generations, F&W has been committed to delivering high quality in equipment sales, rentals, parts, and service. Founder Harold O. Funk originally opened the business as F&W Welding Service in Wooster Square, New Haven. He saw demand increase during World War II when iron and steel were needed for multiple military and stateside projects. During the war, Funk worked hard, collaborating with iconic Electric Boat to create innovative, life-saving submarine technology. After the war, F&W changed gears and began to provide equipment and equipment service for the surge in post-war construction in addition to the repair work the company was already known for. In 1955, F&W Equipment Corp. moved from its historic New Haven location to a new home in Orange, Conn. The firm moved again in July of 1965, to its current site at 164 Boston Post Road. Service Manager Jim Funk, one of the third generation Funks at F & W, credits his hard-working employees for helping to create F&W’s solid reputation over the last 75 years. “The service team is constantly exceeding our customers’ expectations with its ability to diagnose and repair equipment with all sorts of issues,” said Funk. “We have a secret weapon in the field: his name is Adam and he is a legend in the business of getting machines back to work. “Another of our notable service heroes is Charlie,” Funk added. “He began operating equipment in the 1950s with cable-powered machines. He has been at F&W since 1992 and has rebuilt many older machines with his vast history and technical wizardry.”

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Screen Machine Industries recently hosted Congressman Pat Tiberi, (R-Ohio) (12th) at its headquarters in Etna, Ohio.

Chicago-area Congressman Peter Roskam (center) visited Tuffpad-maker BLS, hosted by Barry Stoughton (right) and son Matt Stoughton.

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

The Illinois Equipment Dealers Association hosted Republican Illinois gubernatorial candidate Bruce Rauner who is challenging Gov. Pat Quinn.

Industry Beat

EBS Helps Dealers Navigate 50 Years of Change If ever a business has proven itself to be adaptable it would be EBS. Since 1964, Houston-based EBS has provided dealerships with enterprise business systems – computer solutions to support every aspect of their business, from accounting to service to rental and everything in between. Think about the changes that have transpired in computers since 1964 and you recognize what a huge accomplishment it is for EBS to continue to serve dealers for 50 years.

EBS Computers circa 1988

The year EBS was founded, IBM introduced the first main frame computer. “Back in the early days, in the 60s and 70s, our customers would box all their documents and we would punch them into cards,” said Bill Jones, chairman of the board and CEO of EBS. The laborintensive process might take as long as two or three days utilizing two shifts. EBS would also convert hand-written sales tickets into weekly invoices.

Eventually, dealers started doing more of the keypunch work themselves. Then along came paper tape and magnetic tape. Today, a laptop has as much computing power as a mainframe computer from the ‘60s. Bill Jones, chairman of the board and CEO, Change in the technology is celebrates the 50-year anniversary with happening at breakneck speed employees. compared to the ‘60s and ‘70s when computers might last 10 years. EBS has a long track record of keeping support; and Kim Prevost is director of dealers ahead of the curve. “It’s very business development. unusual for people in our business to Jones says the biggest differentiating last 20-25 years,” said Jones. “They factor for the software is that it’s their have a good product, they sell it for own product, not adapted from a thirdawhile, but then they fall into the party vendor. It’s designed to meet ashbin of history.” the specific needs of the construction, Jones believes keeping an eye on agricultural, lift-truck, and material the product has been the primary handling equipment industries. reason for their success. “Most of our competitors start with “Whatever the new guys are selling, something like a base system from you have to make sure your product can Microsoft or another vendor. We sell compete with them,” said Jones. “We what we create ourselves,” said Jones. continually are adding enhancements “What this means is that our customers and new products to what we sell.” are not bound to make upgrades. Our Keeping existing customers happy software is fully integrated. There is has been the emphasis for EBS. no duplication of data anywhere. Data According to Jones, nearly three goes everywhere in the dealership it dozen customers have been with EBS needs to go,” he added. for more than 30 years. Not surprising, One of the company’s published the core management team has been mantras really says all you need to together for more than 20 years. know about the 50-year old system Ron Rogers has been president and provider: “We believe that a company COO for 11 years; Jay Spencer is vice that does not specialize in your busipresident, development and software ness has no business asking for it.” Sandvik Construction has appointed Crusher Works the official distributor of its surface drills line servicing the needs of its customers in Alabama. Crusher will supply a comprehensive range of Sandvik surface drills, as well as full aftersales support, spare parts and dedicated customer service.

AED selected WTP Exchange as its Preferred Provider for LikeKind Exchange (LKE) services for the fourth year in a row. WTP Exchange is an affiliate company of global tax and business advisory firm WTP Advisors that has been listed on the Inc 500|5000 list of America’s fastest-growing private companies since 2008.

Crusher Works President Neil McCoy (left) and Avery Martin, Sandvik business line manager, Surface Drills. October 2014 | Construction Equipment Distribution | www.cedmag.com | 21

Play It Safe

The Hidden Costs of a Dealership Accident

Prevention and risk management right now could mean the difference between recovery and ruin after a catastrophic loss. BY ERIC STILES

Having the appropriate insurance coverage and insured limits is one of the most important decisions that any dealership can make to safeguard their operations and assets. The commercial insurance process can seem complex, but in its simplest form, dealers pay a premium to their insurance provider and in turn receive a promise that insured buildings, equipment, employees, and liabilities will be protected and the dealer or employee compensated in the event of a loss or injury. But in addition to insurance premiums paid to the provider, other expenses can burden the dealership, expenses that are not covered by any policy. How substantial are these hidden or indirect costs? Consider the following: A technician performing repairs on a front-end tractor loader in their service area was not able to finish the work by the end of the day. That night, while the business was closed, a fire started and soon engulfed the building. Local fire departments responded to combat the blaze and ultimately the fire was extinguished. Unfortunately, fire and smoke damage to the building structure, technician tools, dealer and customer equipment, was severe. The resulting investigation found the fire most likely originated

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

from faulty electrical wiring inside the loader that was being serviced. The business recovery lasted almost a year and the insurance provider paid over $4 million in repair, replacement, and lost revenue expenses. In this loss, the resulting direct (or insured) costs are apparent: the building, its contents, and business interruptions were all covered under the dealership’s commercial insurance policy. But let’s review some potential indirect costs that can have an unexpected impact on immediate and long-term dealership profitability. Examples of Indirect Costs Suppose your dealership suffered a similar catastrophic event. What could be some of the primary indirect expenses you would have to absorb? Lost productivity would be experienced immediately. As your operations become less efficient or productive following a loss, your ability to deliver on sales, parts, and service needs to your customers is significantly reduced or eliminated in the short term. Even loyal customers will be forced to identify other sources for their business needs, leading to a decline in your customer base when operations are finally restored.

Play It Safe

There is also a significant investment in administrative time following a loss. Management and other employees can be tasked with compiling large volumes of data to document the loss through the majority of the recovery effort, taking them away from producing revenue. What about your staff following a fire? An event as devastating as a fire can challenge a dealership’s long-term survival, creating fear that it ultimately may not recover. Some employees may look for other employment, and finding replacement staff can add to administrative time and labor cost. 5LVN 0DQDJHPHQW ² $ 3URÀW Producer Profit is essential to the continued growth and health of any dealership. Unfortunately, a frequently overlooked profit producer is an effective risk management program. Along with the indirect cost examples above, additional costs include deductibles, third party services including legal and security, among many others. In some cases, the indirect costs can be as much as 20% of the total paid loss. If your loss was equal to $4 million, those uninsured costs would total $800,000. Now consider the sales – at your profit margins – that would be needed to recoup those expenses. The additional revenue needed to offset indirect costs could be in the millions of dollars. While the cost of workplace accidents, injuries, and other losses can often be controlled, consider the challenges and costs that a major disruption to your operations would cause. Prevention is simply the best course of action to avoid these situations, and an improved safety record may contribute more to profit than even your best salesperson. Property and casualty coverages and safety services are underwritten, issued and/or administered by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. This document is made available by Sentry Insurance a Mutual Company and its subsidiaries and affiliates (collectively “SIAMCO”) with the understanding that SIAMCO is not

engaged in the practice of law, nor is it rendering legal advice. The information contained in this document is of a general nature and is not intended to address the circumstances of any particular individual or entity. Legal obligations may vary by state and locality. No one should act on the information contained in this document without legal advice from competent and licensed local professionals. THE INFORMATION CONTAINED IN THIS DOCUMENT IS DISTRIBUTED BY SIAMCO “AS-IS”, WITHOUT ANY WARRANTIES. SIAMCO WILL HAVE NO LIABILITY TO ANY PERSON OR ENTITY WITH RESPECT TO ANY LOSSES OR DAMAGES CAUSED, OR ALLEGED TO HAVE BEEN CAUSED, DIRECTLY OR INDIRECTLY BY THIS DOCUMENT, REGARDLESS OF WHETHER SUCH CLAIM IS BASED ON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND FOR PROPERTY DAMAGE AND DEATH) OR OTHER GROUNDS.

ERIC STILES is Sentry’s lead account executive responsible for maintaining the AED/Sentry relationship. As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs.

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October 2014 | Construction Equipment Distribution | www.cedmag.com | 23

Rental

Who and What Are

Shaking Up the Rental Model Two new, web-centric companies offer alternative approaches to renting equipment. BY JOANNE COSTIN

Web-based businesses are popping up everywhere, including in the construction equipment distribution space. BigRentz.com and Yard Club are two you should know about. An inside look at these companies will help you determine if partnering with them makes sense. BigRentz.Com. Focuses on New Level of Service BigRentz.com. is a website that wants to be to the equipment rental industry what Booking.com, Trip Advisor and Expedia are for travelers. They don’t actually own any equipment to rent, but rather, they match leads generated off of the website with appropriate dealer partners in each of the country’s nine regions. Since jumping onto the scene in 2012, BigRentz.com has added 6,000 rental locations, offering far more access to equipment than even the industry’s largest rental companies. What they offer end-users is the convenience of ordering for multiple locations from one source. They also believe their rating system will elevate the level of service in the industry. During the course of a rental transaction, BigRentz.com has several touch points with customers to monitor the rental experience. In addition to providing a quote and taking the order, they monitor equipment delivery, equipment pickup and then ask end-users to complete a post-rental survey. How it works: End-users looking to rent a machine find BigRentz.com online when searching for a machine to rent. A BigRentz.com rental expert talks to the customer over the phone and provides a quote based on location and delivery date. Rates shown online are national rates and

not specific to a market. A booking agent then sources the equipment from the company’s database of suppliers to find a suitable match based on customer preference and an algorithm that takes into account supplier ratings, pricing and location. Participating dealers set the price for which they agree to rent their equipment to BigRentz. Dealers are notified when their rental equipment is needed. At the end of the month, dealers receive a consolidated report and income for the rentals. “We are not the cheapest and that is not what we are looking to be,” said company CEO Dallas Imbimbo. With 24/7 service and the largest network of rental locations, Imbimbo contends the service level is greater than what is provided by any other supplier in the industry. Worried that BigRentz.com will result in lower prices for rentals? Imbimbo believes that BigRentz.com actually helps raise rental rates in the market, because if a customer comes back and chooses to work directly with the dealer, they will be renting at the market price established by BigRentz.com. One reason why BigRentz.com has been able to add locations so quickly is that there is little risk to sign on. It’s free for a supplier to be included on the list. Since August of 2013, the number of suppliers has grown from 50 and 1,000 locations to 900 suppliers and 6,000 locations. According to Imbimbo, in August of 2014 they used 200 different suppliers to fill orders. BigRentz.com has seen double-digit growth in each of the months since it launched and was recently named one of the fastest growing companies in Orange (continued on page 26)

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

Dallas Imbimbo

Rental

(“Who and What Are Shaking Up the Rental Model” continued from page 24)

County, Calif. Staff has grown from 30 employees to more than 70. For now, BigRentz.com transactions are primarily done over the phone. Imbimbo says renters don’t have enough confidence to move to online ordering yet – they aren’t willing to risk having a crew on the jobsite without the right equipment. Now that its network has been built, the company plans to focus on strengthening relationship with suppliers and rewarding them for the level of service they bring to customers. To help them reach the next stage of success, BigRentz. com has hired Robert Gray, formerly of Wynne Systems; and Brandon Huff, a former vice president of Yahoo, will lead the company’s search engine marketing efforts. The company is spending close to $5 million per year on Internet marketing to drive traffic

to its website. Technology expert Liam Stannard was hired to build out the website to provide visibility into equipment availability at each location. For dealers without any online visibility, BigRentz.com could be a great help to gain market share from end-users looking for rentals online. But for dealers who are already optimized to rank locally for search, BigRentz.com may not do as well as your own search engine marketing efforts. Still, it has the potential to bring in new rental customers. Imbimbo says some dealers have doubled and tripled their rental fleets since working with BigRentz.com. Is BigRentz.com Stealing Your Customer? While there is a possibility that one of your customers will turn to BigRentz. com for their rental needs, it won’t be because their sales reps are calling on them. BigRentz.com operates a call

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

BigRentz & Dealers

Dallas Imbimbo

Here’s what dealers can do to improve their chances of getting business from BigRentz.com.com 1) Provide great service every time. 2) Provide an accurate list of the equipment in your rental fleet and any requirements. 3) Price equipment competitively. center fielding inbound calls generated from its online presence. They do not send sales reps into the field. Imbimbo believes there are three reasons why people rent from BigRentz.com: (1.) the renter is new or inexperienced and does not have existing relationships with traditional rental companies; (2.) the renter may be working in a new city or state; (3.) the renter may not be satisfied with his current provider. Stevenson Sales & Service is a crane and aerial work platform supplier that has benefited from its relationship with BigRentz.com. Since coming on board as a supplier in June 2014, they have obtained 14 rental transactions. “They do the advertising and we follow through,” said Phil Benedia, who manages sales for the dealership. Orders include the jobsite address and contact, but may not include the company name. “BigRentz.com clients are primarily new customers that we currently don’t do business with,” he added. A full line of newer cranes and aerial work platforms helps Stevenson get orders from BigRentz.com. The dealership also carries some unique pieces of equipment such as the JLG 185. To date, Benedia has been satisfied with the business relationship and has had no instances of a wrong machine being ordered.

Rental

“At the end of the day, the users know they can go direct to any of our suppliers and some chose to,” said Imbimbo. “We merely act as an intermediary that is willing to provide exceptional service along the way. Our partners not only get more customers by working with us, they get more satisfied customers,” he added. If other dealers have similar success, the only question seems to be: Are you ready to deliver an exceptional customer experience? Yard Club Facilitates Peer-To-Peer Construction Equipment Rental The best business ideas often originate when there is a real need for a product or service. Such is the case with Yard Club, a business that facilitates peerto-peer construction equipment rental through its website. Company founder Colin Evran was looking for a way to help his family’s construction business. “It’s a very tough business. The average contractor margin is 3 percent. You need to make a big upfront investment with little certainty of whether you will win work,” said Evran. He launched Yard Club through a Stanford University incubator program while studying for his masters in Business Administration. The 2013 pilot program with five contractors was such a success that he decided to expand it. Yard Club provides an income opportunity for contractors whose equipment is sitting idle. And because Yard Club machines can be rented with an operator, it helps maintain a steadier income for a contractor’s operator employees when business is slow. Yard Club began in Northern California and recently expanded to Southern California, where they are ramping up membership, and a new general manager has been hired for that operation. While the company does not release sales figures, Evran says they continue to grow aggressively in terms of both memberships and transactions, reaching new highs each month. How it works: Structured as a club, contractors are screened by their peers and must agree to a code

before becoming members. Rental rates are typically set by Yard Club (to make things easy) based on demand for the machine, and are typically 20-30 percent below dealership pricing. Once a Yard Club decals are magnetic and cover up any unwanted machine is rented, there is a two-way contractor signage on the machines. rating system for the equipment and operator. Yard Club “We hope the technology will help has invested in technology to make contractors to manage their fleet from end to end and optimize their capital the process very easy for the renter. spend going forward,” said Evran. Yard Mobile Apps for iPhones and Android cell phones and a sophisticated website Club processes all the transactions and collects a percentage based on the allow users to rent equipment in one rental income. click. The system allows you to browse pictures and ratings of the equipment “If any machines or operators are and order online. Confirmations can be rated low we address those pretty sent via e-mail and text and notificaproactively” Evran added. He believes (continued on page 55) tions sent via the apps.

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Election

While You and Your Customers Were Working Hard...

Who Did What in a “Do-Nothing” Congress?

AED’s exclusive analysis of how your representatives and senators voted in key infrastructure, tax, and regulatory issues. BY BRETT LEVANTO

As summer has turned to fall and the pivotal midterm elections draw closer, Congress’ report card is full of red marks. The American people report historically high levels of dissatisfaction with their lawmakers; fewer than one in five individuals polled believe that the majority of the current Congress should be re-elected. According to a Washington Post-ABC News poll published in August, for the first time in 25 years the majority of voters disapprove of how their own representative is “handling his or her job.” That’s at least partially a reflection of how little lawmakers have

accomplished in the last two years. The 113th Congress is on track to be the least effective in history when measured by the number of substantive bills enacted into law. Further, much of the real work on Capitol Hill – legislation that keeps the economy going – has been done at a knife’s point or staring over yet another selfmanufactured political cliff. Rather than leading through reasonable, proactive and collaborative policymaking, our elected representatives choose instead to legislate by crisis. Next month, Americans will return to the voting booths to select the men and women who will comprise

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

the next Congress. It grows harder with each election to hear through the noise of campaigns and to see optimistically past current frustration. However, with so much at stake (the next crop of lawmakers will be casting votes on infrastructure, tax, energy, labor, and environmental policy), AED members must educate themselves to ensure their votes support candidates who are champions for the construction equipment industry’s policy priorities. This is an important challenge. AED members must make their vote selections not only as citizens performing a civic duty, but as the owners,

Election

executives, and employees of small and medium-sized businesses. Your ballot should represent not only what is best for your family, but also reflect what’s at stake for your company, your industry, and the economic future for our nation. This article designed to help you answer one important question: When my economic prosperity and that of my employees was at stake, how did my elected representatives vote? AED carefully selected the most important House and Senate votes for our industry and produced the following report card. The 113th Congress: How We Got Here The 2012 presidential election resulted in minimal change to the national political landscape. Democrats maintained control of the White House and Senate, while the GOP held its House majority. During the last two years, both parties continued to butt heads over executive authority, the implementation of Obamacare, and the size of the federal government while straining to internally manage the more radical factions within their own ranks. AED’s legislative priorities were clear – restore certainty to the federal highway program by reauthorizing and fully funding surface transportation investments; bring simplicity and certainty to the tax code; reinstate important capital investment incentives; keep the energy boom on track; and reduce the regulatory burden on the economy. Unfortunately, the political climate wasn’t ripe for productive legislating. The fight over the Affordable Care Act took lawmakers to – and over – the brink. Locked in arguments about the implementation of the president’s signature health care law and unable to pass a funding bill by the start of the new fiscal year on Oct. 1, Washington watched as the federal government entered a 16-day shutdown.

The third longest in the nation’s history, the closure sent hundreds of thousands of government workers home and ceased all but the most essential operations. Even after the government returned to work – first through a continuing resolution and finally a long-term budget compromise – the die had been cast. The partisan tone on Capitol Hill had become dour enough to drive Congress over self-made cliffs and chasms by choosing short-term fixes, patches and delays over lasting, responsible solutions. Though there has been disappointment on big issues and despite much contention, hardline rhetoric and a well-earned reputation as a “do nothing” Congress, lawmakers were able to vote “yes” enough times to move some important bills down Pennsylvania Avenue for the president’s signature, including preventing the near-term collapse of the federal highway program, port and waterways investment, and workforce development program modernization. As you consider how to vote in November, review the records of your lawmakers on the construction equipment industry’s key issues. Make sure that both you and your employees are making educated decisions to shape the next Congress. How We Picked ’Em AED’s key votes (and all the association’s policy priorities) focus on proposals that lower equipment distributors’ cost of doing business, expand markets for equipment, and restore certainty and growth to the broader economy. Consequently, AED supported legislation to invest in our nation’s highway and water infrastructure. AED also called on Congress to take action on issues that had been in political limbo for far too long. We have highlighted votes to permit the Keystone XL pipeline project, eliminate the estate tax, and make permanent

expiring provisions of the tax code that stimulate capital investment. An Informed Decision The vote charts that follow are an objective measure of how lawmakers voted on issues important to the equipment industry and are a small fraction of their overall voting record. The charts do not include other factors you should consider when casting your ballot in the upcoming election, such as a candidate’s character, professional qualifications, or positions on other issues that matter to you personally. AED’s voting record analysis should neither be read as an endorsement of any candidate, nor as a statement of opposition to a lawmaker’s re-election. As you analyze this information, it is important to remember that legislation is rarely ever simple or straightforward. While a bill may contain important provisions for the equipment industry, unrelated issues can cause a member to vote no. Finally, remember that not all members served the entirety of the 113th Congress. In these circumstances, their vote totals may be skewed because they cast fewer votes than their colleagues. This chart provides a quick reference to allow you to see where your elected officials stood on issues that affect your markets and cost of doing business. When you encounter candidates on the campaign trail, use this information as a starting point for a conversation with incumbents about why they voted as they did and to inquire of challengers how they would have voted had they been in office. When you reach the ballot box or step into the voting booth, remember how they’ve represented your interests and consider how you want to be represented in the years to come. BRETT LEVANTO is AED’s senior manager of Government Affairs.

(continued on page 30) October 2014 | Construction Equipment Distribution | www.cedmag.com | 29

Election

AED Legislative Scorecard – 113th Congress

House Votes 1. Keystone: Northern Route Approval Act (H.R. 3) During the past several years, AED established itself as the construction industry’s leader on energy issues, including the Keystone XL pipeline project. While the pipeline’s construction is expected to create thousands of jobs and significant economic activity, the administration has delayed approval because of perceived environmental concerns. Consequently, Congress has considered several proposals to either force the president to make a decision on the pipeline’s fate or actually approve the project. The Northern Route Approval Act (H.R. 3) was the only measure undertaken by the House to use congressional power to supersede presidential authority to issue the Keystone XL pipeline’s permit. The legislation was approved, 241-175, on a strong bipartisan vote. Unfortunately, the Senate hasn’t considered H.R. 3, and approval of the pipeline remains in limbo as the administration refuses to make a decision. House Vote: 113-1-179, May 22, 2013 Senate Vote: None AED Position: Yes 2. Natural Gas Pipeline Permitting Reform Act (H.R. 1900) As natural gas production increases and energy costs have risen, the nation’s network of pipelines has proven inadequate to transport energy resources to market. Unfortunately, the Federal Energy Regulatory

(“AED Legislative Scorecard – House Votes” cont. from page 29)

Commission’s (FERC) permitting process is slow and inefficient. The House approved, 252-165, the AED-supported Natural Gas Pipeline Permitting Reform Act to require FERC permitting decisions to be made within a 12-month window. While stalled in the Senate, the bipartisan vote was a clear indication that lawmakers are concerned about the impact bureaucratic delays are having on the country’s path toward energy independence. House Vote: 113-1-611, Nov. 21, 2013 Senate Vote: None AED Position: Yes 3. Prevent a Shutdown: Continuing Appropriations Resolution (H.J. Res. 59) The federal government’s failure to enact long-term appropriations and funding measures has created massive uncertainty and wreaked havoc on the economy. Finally, at the end of 2013, Congress agreed to broad budget parameters to set the stage for a longer-term agreement to fund federal government programs and avoid automatic spending cuts (known as sequestration). The continuing resolution, which was approved 332-94, helped stave off another government shutdown and allowed Congress to move away, temporarily, from fiscal battles that have distracted lawmakers from tackling other pressing issues. House Vote: 113-1-640, Dec. 12, 2013 Senate Vote: 113-1-281, Dec.18, 2013 AED Position: Yes 4. Prevent a Shutdown: Consolidated Appropriations Act (H.R. 3547) Carrying the momentum of the budget agreement from Dec. 2013 (see No. 3 above), Sen. Patty Murray (D-Wash.) and Rep. Paul Ryan (R-Wis.) reached an agreement on a $1.9 trillion government funding deal for fiscal year 2014 that established government spending levels for the remainder of fiscal year 2014. AED supported the legislation to give the federal government near-term certainty and allow Congress breathing

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

room to focus on other legislative priorities, such as saving the highway program. Lawmakers voted, 359-67, to approve H.R. 3547. House Vote: 113-2-21, Jan. 15, 2014 Senate Vote: 113-2-13, Jan. 16, 2014 AED Position: Yes 5. The Farm Bill: Agriculture Act of 2014 (H.R. 2642) The Agriculture Act of 2014 is the 11th farm bill since 1965. Farm bills are large pieces of legislation that govern an array of agricultural and food programs and are considered the central agriculture and food policy tool of the federal government. H.R. 2642 was approved 251-166, after months of contentious negotiations. The $489 billion legislation reformed farm policy and food stamps and repealed or consolidated nearly 100 programs administered by the United States Agriculture Department. Importantly, it provides muchneeded stability to the country’s agriculture sector. House Vote: 113-2-31, January 29, 2014 Senate Vote: 113-2-21, February 4, 2014 AED Position: Yes 6. Section 179: America’s Small Business Tax Relief Act of 2014 (H.R. 4457) AED has been at the forefront of the debate over capital investment incentives, including permanent reinstatement of increased Sec. 179 levels. The House, 272-144, approved H.R. 4457, which would permanently increase Sec. 179’s maximum amount and phase-out threshold to the levels in effect from 2010 through 2013 ($500,000 and $2 million respectively). Under current law, beginning in 2014, a taxpayer may immediately expense up to $25,000 of Sec. 179 property annually, with a dollar-for-dollar phase-out of the maximum deductible amount for purchases in excess of $200,000. Unfortunately, Senate consideration of its tax “extenders” package stalled and likely won’t see further action until after the midterm elections.

Election House Vote: 113-2-309, June 12, 2014 Senate Vote: None AED Position: Yes

Development Act (WRRDA). The legislation authorizes Army Corps of Engineers programs, including waterway and watershed management projects such as construction of locks and dams, and adds flexibility to the Clean Water State Revolving Fund (CWSRF). It also includes a pilot program to leverage capital by attracting substantial private and nonfederal investments to water, wastewater, and water resources infrastructure projects. Provisions in the final bill will accelerate Corps project delivery by streamlining environmental reviews, setting hard deadlines, and consolidating (or eliminating) duplicative studies. While WRRDA didn’t contain any new investment, its passage by 412-4, was a great victory for infrastructure champions in Congress and demonstrated the bipartisan nature of such proposals. House Vote: 113-2-220, May 20, 2014 Senate Vote: 113-2-163, May 22, 2014 AED Position: Yes

7. Depreciation Bonus: To amend the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation (H.R.4718) For nearly a decade, AED has been a leader in the fight to enact and expand bonus depreciation. With the capital investment incentive expiring at the end of 2013, AED supported H.R. 4718, which makes permanent 50 percent bonus depreciation. Approved by the House, 258-160, the major opposition to the proposal stems from its $300 billion ten-year price tag. Bonus Depreciation, along with Sec. 179 expensing, enjoy bipartisan support and have positively impacted the economy by incentivizing business purchasing and job creation. However, due to continuing economic uncertainty and slow recovery in certain sectors (e.g., construction), many businesses have not been able to take advantage of these laws. Similar to Sec. 179 expensing, Senate consideration of bonus depreciation will likely be delayed until after the midterm elections. House Vote: 113-2-404, July 11, 2014 Senate Vote: None AED Position: Yes

9. Workforce Innovation and Opportunity Act (H.R. 803) One of the major long-term strategic threats to the construction equipment industry is the skilled worker shortage. Consequently, AED strongly supported the Workforce Innovation & Opportunity Act (H.R. 803), which eliminates duplicative workforce programs, streamlines many of the burdensome requirements that hamstring existing outdated workforce systems and allows for increased incumbent worker training. Additionally, the legislation provides greater flexibility to state, local

8. Water Resources Reform and Development Act of 2014 (H.R. 3080) In a year of minimal legislative accomplishments, infrastructure supporters cheered as Congress finalized the Water Resources Reform &

and regional boards to tailor services to specific employment needs. While the federal government should be doing more to address this economy-wide crisis, Congress has taken a step in the right direction by overhauling skilled worker programs and updating the Workforce Investment Act (WIA), which was enacted in 1998. The legislation, which was approved 415-6, reaffirms congressional commitment to ensure businesses have the next generation of skilled workers. House Vote: 113-2-378, July 9, 2014 Senate Vote: 113-2-214, June 25, 2014 AED Position: Yes 10. Keep the Federal Highway Program Operating: Highway and Transportation Funding Act of 2014 (H.R. 5021) AED spent most of 2013 and 2014 ringing the alarm bells about the looming Highway Trust Fund (HTF) shortfall, which jeopardized more than $50 billion in annual investment. AED estimated “year zero” would endanger at least $2.4 billion in equipment market activity (i.e., dealer revenue from sales, rental, and product support) and close to 4,000 equipment dealership jobs. While not a long-term solution, AED supported enactment of H.R. 5021 to ensure the HTF’s solvency through May 31, 2015. The 367-55 vote, demonstrated that AED’s warnings were heeded and lawmakers recognized the importance of ensuring the HTF didn’t go broke in the near-term. House Vote: 113-2-414, July 15, 2014 Senate Vote: 113-2-248, July 29, 2014 AED Position: Yes

How the U.S. House of Representatives Voted on Select Issues Key Symbols Y: Agreed with AED’s Position N: Disagreed with AED’s Position P Voted Present NV Did Not Vote “-“ Unavailable for vote * The House Speaker does not usually vote unless the margin for passage is extremely close Score % agreement with AED’s position Highlighting denotes perfect AED score.

Vote numbers (across the top):

1. 2. 3. 4. 5. 6.

Keystone: Northern Route Approval Act (H.R. 3) Natural Gas Pipeline Permitting Reform Act (H.R. 1900) Prevent a Shutdown: Continuing Appropriations Resolution (H.J. Res. 59) Prevent a Shutdown: Consolidated Appropriations Act (H.R. 3547) The Farm Bill: Agriculture Act of 2014 (H.R. 2642) Section 179: America’s Small Business Tax

Relief Act of 2014 (H.R. 4457) Depreciation Bonus: To amend the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation (H.R.4718) 8. Water Resources Reform and Development Act of 2014 (H.R. 3080) 9. Workforce Innovation and Opportunity Act (H.R. 803) 10. Keep the Federal Highway Program Operating: Highway and Transportation Funding Act of 2014 (H.R. 5021) 7.

(continued on next page) October 2014 | Construction Equipment Distribution | www.cedmag.com | 31

House votes continued from page 31; see Key on page 31. Alabama Representatives

1

2

3

4

5

6

7

8

9

10

Score

Y

Y

Y

Y

Y

Y

NV

Y

NV

Y

80%

Rep. Bachus, Spencer (R-AL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Valadao, David (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Rep. Brooks, Mo (R-AL)

Y

Y

N

N

Y

NV

Y

Y

Y

N

60%

Rep. Vargas, Juan (D-CA)

N

N

Y

Y

N

N

N

Y

Rep. Byrne, Bradley (R-AL)

-

-

-

N

Y

Y

Y

Y

Y

NV

71%

Rep. Waters, Maxine (D-CA)

N

N

N

Y

N

N

N

Y

Y

N

30%

Rep. Roby, Martha (R-AL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Waxman, Henry (D-CA)

NV N

Y

Y

N

N

N

Y

Y

Y

50% Score

Election Rep. Aderholt, Robert (R-AL)

Rep. Takano, Mark (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Thompson, Mike (D-CA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Y

Y

100%

Y

Y

50%

Rep. Rogers, Mike (R-AL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Colorado Representatives

1

2

3

4

5

6

7

8

9

10

Rep. Sewell, Terri (D-AL)

Y

Y

Y

Y

Y

N

N

Y

Y

Y

80%

Rep. Coffman, Mike (R-CO)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Alaska Representative

1

2

3

4

5

6

7

8

9

10

Score

Rep. DeGette, Diana (D-CO)

NV N

Y

Y

N

N

N

Y

Y

Y

50%

NV Y

80%

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Gardner, Cory (R-CO)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

Arizona Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Lamborn, Doug (R-CO)

Y

Y

Y

N

N

Y

Y

Y

Y

N

70%

Rep. Barber, Ron (D-AZ)

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Perlmutter, Ed (D-CO)

N

Y

Y

Y

Y

Y

N

Y

NV

Y

70%

Rep. Franks, Trent (R-AZ)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Polis, Jared (D-CO)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Gosar, Paul (R-AZ)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Tipton, Scott (R-CO)

Y

Y

Y

N NV

Y

Y

Y

Y

Y

80% Score

Rep. Young, Don (R-AK)

Rep. Grijalva, Raul (D-AZ)

N

N

N

N

N

N

N

Y

Y

Y

30%

Connecticut Representatives

1

2

3

4

5

6

7

8

9

10

Rep. Kirkpatrick, Ann (D-AZ)

N

Y

Y

Y

Y

Y

N

Y

Y

Y

80%

Rep. Courtney, Joe (D-CT)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Pastor, Ed (D-AZ)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. DeLauro, Rosa (D-CT)

N

N

N

Y

N

N

N

Y

Y

Y

40% 60%

Rep. Salmon, Matt (R-AZ)

Y

Y

N

N

N

Y

Y

N

Y

N

50%

Rep. Esty, Elizabeth (D-CT)

N

N

Y

Y

N

Y

N

Y

Y

Y

Rep. Schweikert, David (R-AZ)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Himes, Jim (D-CT)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Sinema, Kyrsten (D-AZ)

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Larson, John (D-CT)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

9

10

Score

Arkansas Representatives

1

2

3

4

5

6

7

8

9

10

Score

Delaware Representatives

1

2

3

4

5

6

7

8

Rep. Cotton, Tom (R-AR)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Carney, John (D-DE)

N

N

Y

Y

Y

N

NV

Y

Rep. Crawford, Rick (R-AR)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Florida Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Griffin, Tim (R-AR)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Bilirakis, Gus (R-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Womack, Steve (R-AR)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Brown, Corrine (D-FL)

N

N NV

Y

Y

N

N

Y

Y

Y

50%

California Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Buchanan, Vern (R-FL)

Y

Y

Y

NV

Y

NV

Y

Y

Y

Y

80% 60%

NV NV

40%

Rep. Bass, Karen (D-CA)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Castor, Kathy (D-FL)

N

N

Y

Y

Y

N

N

Y

Y

Y

Rep. Becerra, Xavier (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Clawson, Curt (R-FL)

-

-

-

-

-

-

Y

-

Y

N

67%

Rep. Bera, Ami (D-CA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Crenshaw, Ander (R-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Brownley, Julia (D-CA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. DeSantis, Ron (R-FL)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Calvert, Ken (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Deutch, Ted (D-FL)

N

N

Y

Y

N

N

N

NV

Y

Y

40% 90%

Rep. Campbell, John (R-CA)

Y NV Y

Y

NV

N

N

Y

40%

Rep. Diaz-Balart, Mario (R-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Rep. Capps, Lois (D-CA)

N NV Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Frankel, Lois (D-FL)

N

N

N

Y

Y

N

N

Y

Y

Y

50%

Rep. Cardenas, Tony (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Garcia, Joe (D-FL)

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Chu, Judy (D-CA)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Grayson, Alan (D-FL)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Cook, Paul (R-CA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Hastings, Alcee (D-FL)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

NV NV

NV Y

Rep. Costa, Jim (D-CA)

Y

Y

Y

Y

Y

N

N

Y

Y

Y

80%

Rep. Jolly, David (R-FL)

-

-

-

-

-

Y

Y

Y

Y

Y

100%

Rep. Davis, Susan (D-CA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Mica, John (R-FL)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Denham, Jeff (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Miller, Jeff (R-FL)

Y

Y

Y

Y

NV

Y

Y

Y

Y

Y

90%

Rep. Eshoo, Anna (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Murphy, Patrick (D-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Farr, Sam (D-CA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Nugent, Rich (R-FL)

Y

Y

N

N

Y

Y

Y

Y

Y

N

70%

Rep. Garamendi, John (D-CA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Posey, Bill (R-FL)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Hahn, Janice (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Rooney, Tom (R-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Honda, Michael (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Ros-Lehtinen, Ileana (R-FL)

NV Y

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Huffman, Jared (D-CA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Ross, Dennis (R-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Hunter, Duncan (R-CA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Southerland, Steve (R-FL)

Rep. Issa, Darrell (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. LaMalfa, Doug (R-CA)

Y

Y

Y

N

Y

NV

Y

Y

Y

Y

Rep. Lee, Barbara (D-CA)

N

N

N

Y

N

N

N

Y

Y

Rep. Lofgren, Zoe (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Wasserman Schultz, Debbie (D-FL) N

N

Y

Y

Y

N

N

Y

Y

Y

60%

80%

Rep. Webster, Daniel (R-FL)

Y

Y

N

Y

Y

NV

Y

Y

Y

Y

80%

Y

40%

Rep. Wilson, Frederica (D-FL)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Y

50%

Rep. Yoho, Ted (R-FL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

N

90%

Rep. Lowenthal, Alan (D-CA)

N NV Y

Y

N

N

N

Y

Y

Y

50%

Georgia Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Matsui, Doris (D-CA)

N

Y

Y

N

N

Y

Y

Y

60%

Rep. Barrow, John (D-GA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Bishop, Sanford (D-GA)

Y

Y NV

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Broun, Paul (R-GA)

Y

Y

N

N

Y

Y

NV

N

N

40% 80%

N

Y

Rep. McCarthy, Kevin (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. McClintock, Tom (R-CA)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

N

Rep. McKeon, Howard (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Collins, Doug (R-GA)

Y

Y

Y

Y

N

Y

Y

Y

Y

N

Rep. McNerney, Jerry (D-CA)

N

N

Y

Y

Y

Y

N

Y

Y

Y

70%

Rep. Gingrey, Phil (R-GA)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

NV Y

Y

Y

N NV

Y

NV

Y

NV

50%

Rep. Graves, Tom (R-GA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

N

Rep. Miller, Gary (R-CA) Rep. Miller, George (D-CA)

N

N

Y

Y

N

N

N

Y

Y

N

40%

Rep. Johnson, Hank (D-GA)

N

Y

Y

Y

N

N

NV

Y

Y

50%

Rep. Napolitano, Grace (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Kingston, Jack (R-GA)

Y NV N

N

Y

Y

NV

Y

Y

NV

50%

Rep. Negrete McLeod, Gloria (D-CA)

N

Y

N

Y

Y

Y

N

Y

Y

Y

70%

Rep. Lewis, John (D-GA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Nunes, Devin (R-CA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Price, Tom (R-GA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Pelosi, Nancy (D-CA)

N

N

Y

Y

Y

N

N

Y

NV

Y

50%

Rep. Scott, Austin (R-GA)

Y

Y

Y

N

Y

Y

Y

Y

Y

N

80%

Rep. Peters, Scott (D-CA)

N

Y

Y

Y

N

Y

Y

Y

Y

N

70%

Rep. Scott, David (D-GA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

NV Y

Rep. Rohrabacher, Dana (R-CA)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Westmoreland, Lynn (R-GA)

Rep. Roybal-Allard, Lucille (D-CA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Woodall, Rob (R-GA)

Rep. Royce, Ed (R-CA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Hawaii Representatives

Rep. Ruiz, Raul (D-CA)

N NV Y

Y

N

Y

Y

Y

Y

Y

70%

Rep. Gabbard, Tulsi (D-HI)

Rep. Sanchez, Linda (D-CA)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Hanabusa, Colleen (D-HI)

N

Rep. Sanchez, Loretta (D-CA)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Idaho Representatives

1

2

3

4

5

6

7

8

9

10

Rep. Schiff, Adam (D-CA)

N

N

Y

Y

N

N

NV

Y

Y

Y

50%

Rep. Labrador, Raul (R-ID)

Y

Y

N

N

Y

Y

Y

NV

Y

N

60%

Rep. Sherman, Brad (D-CA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Simpson, Mike (R-ID)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

NV N

Y

Y

N

N

N

Y

Y

Y

50%

Illinois Representatives

1

2

3

4

5

6

7

8

9

10

Score

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Bustos, Cheri (D-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Speier, Jackie (D-CA) Rep. Swalwell, Eric (D-CA)

N

N

32 | www.cedmag.com | Construction Equipment Distribution | October 2014

Y

Y

NV

Y

Y

Y

Y

N

70%

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

1

2

3

4

5

6

7

8

9

10

Score

N

N

Y

NV

Y

Y

N

Y

Y

Y

N

N

Y

Y

Y

NV

Y

Y

NV NV

60% 40% Score

Election Score

Rep. Davis, Danny (D-IL)

N

N NV

Y

N

N

N

Y

Y

Y

40%

Michigan Representatives

1

2

3

4

5

6

7

8

9

10

Rep. Davis, Rodney (R-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Amash, Justin (R-MI)

P

Y

N

N

N

Y

Y

N

N

N

30%

Rep. Duckworth, Tammy (D-IL)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Benishek, Dan (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Enyart, Bill (D-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Bentivolio, Kerry (R-MI)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Foster, Bill (D-IL)

N

N

Y

Y

Y

Y

N

Y

Y

Y

70%

Rep. Camp, Dave (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Gutierrez, Luis (D-IL)

N

N

Y

Y

N

N

N

Y

Y

NV

40%

Rep. Conyers, John (D-MI)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Hultgren, Randy (R-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

N

90%

Rep. Dingell, John (D-MI)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Kelly, Robin (D-IL)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Huizenga, Bill (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Kinzinger, Adam (R-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Kildee, Dan (D-MI)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Lipinski, Daniel (D-IL)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Levin, Sander (D-MI)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Quigley, Mike (D-IL)

N

N

Y

Y

N NV

N

Y

Y

Y

50%

Rep. Miller, Candice (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Roskam, Peter (R-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Peters, Gary (D-MI)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Rush, Bobby (D-IL)

N NV NV NV NV N

N

NV

Y

Y

20%

Rep. Rogers, Mike (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Schakowsky, Jan (D-IL)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Upton, Fred (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Schneider, Brad (D-IL)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Walberg, Tim (R-MI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Schock, Aaron (R-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Minnesota Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Shimkus, John (R-IL)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Bachmann, Michele (R-MN)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Indiana Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Ellison, Keith (D-MN)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Brooks, Susan (R-IN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Kline, John (R-MN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Bucshon, Larry (R-IN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. McCollum, Betty (D-MN)

N

N

Y

Y

Y

N

N

NV

Y

Y

50%

Rep. Carson, Andre (D-IN)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Nolan, Rick (D-MN)

N NV Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Messer, Luke (R-IN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

N

90%

Rep. Paulsen, Erik (R-MN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Rokita, Todd (R-IN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Peterson, Collin (D-MN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Stutzman, Marlin (R-IN)

Y

Y

Y

Y

N NV

Y

Y

Y

N

70%

Rep. Walz, Tim (D-MN)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Visclosky, Peter (D-IN)

N

N

N

Y

N

N

Y

Y

Y

40%

Mississippi Representatives

1

2

3

4

5

6

7

8

9

10

Score

Y

Y

Y

Y

100%

N

Rep. Walorski, Jackie (R-IN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Harper, Gregg (R-MS)

Y

Y

Y

Y

Y

Rep. Young, Todd (R-IN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Nunnelee, Alan (R-MS)

Y

Y

Y

Y

Y

Iowa Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Palazzo, Steven (R-MS)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Rep. Braley, Bruce (D-IA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Thompson, Bennie (D-MS)

N

N

N

Y

Y

N

N

NV

Y

Y

40%

Rep. King, Steve (R-IA)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Missouri Representatives

1

2

3

4

5

6

7

8

9

10

Score

NV NV

NV N

Y Y

NV NV Y

60% 100%

Rep. Latham, Tom (R-IA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Clay, William Lacy (D-MO)

N

N

Y

Y

N

Y

Y

N

40%

Rep. Loebsack, Dave (D-IA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Cleaver, Emanuel (D-MO)

N

N

Y

NV

Y

N

N

NV

Y

Y

40%

Kansas Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Graves, Sam (R-MO)

Y

Y

Y

Y

Y

Y

NV

Y

Y

Y

90%

Rep. Huelskamp, Tim (R-KS)

Y

Y

N

N

N

Y

Y

N

Y

N

50%

Rep. Hartzler, Vicky (R-MO)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Y

Y

Rep. Jenkins, Lynn (R-KS)

Y

Y

Y

Y

N

Y

Y

Y

90%

Rep. Long, Billy (R-MO)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. Pompeo, Mike (R-KS)

Y

Y

N

N

N NV NV

Y

Y

N

40%

Rep. Luetkemeyer, Blaine (R-MO)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Yoder, Kevin (R-KS)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Smith, Jason (R-MO)

-

Y

N

N

Y

Y

Y

Y

Y

Y

78%

Kentucky Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Wagner, Ann (R-MO)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Barr, Andy (R-KY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Montana Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Guthrie, Brett (R-KY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Daines, Steve (R-MT)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. Massie, Thomas (R-KY)

Y

Y

N

N

Y

Y

Y

Y

N

Y

70%

Nebraska Representatives

1

2

3

4

5

6

7

8

9

10

Score 90%

Rep. Rogers, Harold (R-KY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Fortenberry, Jeff (R-NE)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

Rep. Whitfield, Edward (R-KY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Smith, Adrian (R-NE)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. Yarmuth, John (D-KY)

Y

N

Y

Y

N

N

N

Y

Y

Y

60%

Rep. Terry, Lee (R-NE)

Y

Y

Y

N

Y

Y

Y

Y

Y

Y

90%

Louisiana Representatives

1

2

3

4

5

6

7

8

9

10

Score

Nevada Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Boustany, Charles (R-LA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Amodei, Mark (R-NV)

Y

Y

Y

Y

NV

Y

Y

Y

Y

Y

90%

Rep. Cassidy, Bill (R-LA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Heck, Joe (R-NV)

Y

Y

N

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Fleming, John (R-LA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Horsford, Steven (D-NV)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. McAllister, Vance (R-LA)

-

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Titus, Dina (D-NV)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70%

Rep. Richmond, Cedric (D-LA)

N

Y

N

Y

Y

N

NV

Y

NV

Y

50%

New Hampshire Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Scalise, Steve (R-LA)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Kuster, Ann (D-NH)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Maine Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Shea-Porter, Carol (D-NH)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Michaud, Michael (D-ME)

N

N

Y

Y

Y

Y

N

Y

Y

Y

70%

New Jersey Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Pingree, Chellie (D-ME)

N

N

N

Y

N

Y

N

Y

Y

Y

50%

Rep. Andrews, Robert (D-NJ)

N

N

Y

Y

N

-

-

-

-

-

40%

Maryland Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Frelinghuysen, Rodney (R-NJ)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Cummings, Elijah (D-MD)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Garrett, Scott (R-NJ)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Delaney, John (D-MD)

N

N

Y

Y

Y

Y

N

Y

Y

Y

70%

Rep. Holt, Rush (D-NJ)

N

N

N

N

N

N

N

Y

Y

N

20%

Rep. Edwards, Donna (D-MD)

N

N

Y

Y

NV

N

N

Y

Y

Y

50%

Rep. Lance, Leonard (R-NJ)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Harris, Andy (R-MD)

Y

Y

N

Y

N

Y

Y

Y

Y

N

70%

Rep. LoBiondo, Frank (R-NJ)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Hoyer, Steny (D-MD)

N NV N

Y

Y

N

N

Y

Y

Y

50%

Rep. Pallone, Frank (D-NJ)

N

N

N

Y

N

N

N

Y

Y

Y

40%

N

N

Y

Y

N

N

N

Y

Y

Y

50%

NV N

Y

Y

N

N

N

Y

Y

Y

50% 100%

Rep. Ruppersberger, C.A. Dutch (D-MD) N Rep. Sarbanes, John (D-MD)

N

Y

Y

NV

Y

Y

Y

Y

Y

70%

Rep. Pascrell, Bill (D-NJ)

NV N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Payne, Donald (D-NJ)

Rep. Van Hollen, Chris (D-MD)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Runyan, Jon (R-NJ)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Massachusetts Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Sires, Albio (D-NJ)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Rep. Capuano, Michael (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Smith, Christopher (R-NJ)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100% Score

Rep. Clark, Katherine (D-MA)

-

-

Y

Y

N

N

N

NV

Y

Y

50%

New Mexico Representatives

1

2

3

4

5

6

7

8

9

10

Rep. Keating, William (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Lujan Grisham, Michelle (D-NM) N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Kennedy, Joseph (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Lujan, Ben (D-NM)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Lynch, Stephen (D-MA)

N

N

Y

Y

NV

N

NV

Y

Y

Y

50%

Rep. Pearce, Steve (R-NM)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. McGovern, Jim (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

New York Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Neal, Richard (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Bishop, Timothy (D-NY)

N

N

Y

Y

Y

Y

N

Y

Y

Y

70%

Rep. Tierney, John (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Clarke, Yvette (D-NY)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Tsongas, Niki (D-MA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Collins, Chris (R-NY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

(continued on next page) October 2014 | Construction Equipment Distribution | www.cedmag.com | 33

House votes continued from page 33; see Key on page 31. Election Rep. Crowley, Joseph (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Doyle, Mike (D-PA)

N

N

Y

Y

NV

N

Y

Y

Rep. Engel, Eliot (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Fattah, Chaka (D-PA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Gibson, Chris (R-NY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Fitzpatrick, Michael (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Grimm, Michael (R-NY)

Y

Y

Y

Y

Y

Y

Y

Y

NV

Y

90%

Rep. Hanna, Richard (R-NY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Higgins, Brian (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Y

Rep. Israel, Steve (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Y

Rep. Jeffries, Hakeem (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Rep. King, Peter (R-NY)

Y

Y

Y

Y

Y

Y

Y

Y

Rep. Lowey, Nita (D-NY)

N

N

Y

Y

N

N

N

Rep. Maffei, Dan (D-NY)

N

N

Y

Y

Y

Y

Rep. Maloney, Carolyn (D-NY)

N

N

Y

Y

N

Rep. Maloney, Sean (D-NY)

Y

Y

Y

Y

Y

NV NV

40%

Rep. Gerlach, Jim (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Kelly, Mike (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

50%

Rep. Marino, Tom (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

50%

Rep. Meehan, Patrick (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Y

50%

Rep. Murphy, Tim (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Y

Y

100%

Rep. Perry, Scott (R-PA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Y

Y

Y

50%

Rep. Pitts, Joe (R-PA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Y

Y

Y

Y

80%

Rep. Rothfus, Keith (R-PA)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

N

N

Y

Y

Y

50%

Rep. Schwartz, Allyson (D-PA)

N

N

Y

Y

Y

N

N

NV

Y

Y

50%

Y

Y

Y

Y

Y

100%

Rep. Shuster, Bill (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. McCarthy, Carolyn (D-NY)

N NV NV NV NV

N

NV

Y

NV

Y

20%

Rep. Thompson, Glenn (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Meeks, Gregory (D-NY)

N

N

Y

Y

N

Y

N

Y

Y

Y

60%

Rhode Island Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Meng, Grace (D-NY)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70%

Rep. Cicilline, David (D-RI)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Nadler, Jerrold (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Langevin, Jim (D-RI)

N

N

Y

Y

N

Y

N

Y

Y

Y

60%

Rep. Owens, Bill (D-NY)

Y

Y

Y

Y

Y

N

N

Y

Y

Y

80%

South Carolina Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Rangel, Charles (D-NY)

N

N

Y

Y

N NV

N

Y

Y

Y

50%

Y

Y

N

N

Y

Y

Y

60%

Rep. Reed, Tom (R-NY)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Duncan, Jeff (R-SC)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Serrano, Jose (D-NY)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Gowdy, Trey (R-SC)

Y

Y

N

Y

N

Y

Y

Y

Y

N

70%

Rep. Slaughter, Louise (D-NY)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Mulvaney, Mick (R-SC)

Y

Y

N

Y

N

Y

Y

Y

Y

N

70% 100%

Rep. Clyburn, James (D-SC)

NV NV Y

Rep. Tonko, Paul (D-NY)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Rice, Tom (R-SC)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Rep. Velazquez, Nydia (D-NY)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Sanford, Mark (R-SC)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

North Carolina Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Wilson, Joe (R-SC)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Butterfield, G.K. (D-NC)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

South Dakota Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Coble, Howard (R-NC)

Y

Y

Y

Y

Y

NV

Y

Y

Y

Y

90%

Rep. Noem, Kristi (R-SD)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Ellmers, Renee (R-NC)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Tennessee Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Foxx, Virginia (R-NC)

Y

Y

Y

Y

N

Y

Y

Y

Y

N

80%

Rep. Black, Diane (R-TN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Blackburn, Marsha (R-TN)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Cohen, Steve (D-TN)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Cooper, Jim (D-TN)

Y

N

Y

Y

N

N

N

Y

Y

Y

60%

Rep. Holding, George (R-NC)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Hudson, Richard (R-NC)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Jones, Walter (R-NC)

Y

Y

N NV NV

N

N

Y

N

N

30%

Rep. McHenry, Patrick (R-NC)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. DesJarlais, Scott (R-TN)

Y

Y

N

N

N

Y

NV

Y

Y

NV

50%

Rep. McIntyre, Mike (D-NC)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. Duncan, John (R-TN)

Y

Y

N

N

N

Y

Y

Y

N

Y

60%

Rep. Meadows, Mark (R-NC)

Y

Y

N

N

Y

Y

NV

Y

Y

N

60%

Rep. Fincher, Stephen (R-TN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Pittenger, Robert (R-NC)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Fleischmann, Chuck (R-TN)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Rep. Price, David (D-NC)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Roe, Phil (R-TN)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100% Score

North Dakota Representatives

1

2

3

4

5

6

7

8

9

10

Score

Texas Representatives

1

2

3

4

5

6

7

8

9

10

Rep. Cramer, Kevin (R-ND)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Barton, Joe (R-TX)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Ohio Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Brady, Kevin (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Beatty, Joyce (D-OH)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Boehner, John (R-OH)*

-

-

Y

Y

-

-

-

-

-

-

100%

Rep. Burgess, Michael (R-TX)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Carter, John (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

N

90%

Rep. Chabot, Steve (R-OH)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Castro, Joaquin (D-TX)

N NV NV

Y

N

N

N

Y

Y

Y

40%

Rep. Fudge, Marcia (D-OH)

N

N

N

Y

Y

N

N

Y

Y

Y

50%

Rep. Conaway, K. Michael (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

100%

Y

Y

Rep. Gibbs, Bob (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Cuellar, Henry (D-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Johnson, Bill (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Culberson, John (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Jordan, Jim (R-OH)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

Rep. Doggett, Lloyd (D-TX)

N

N

Y

Y

N

N

N

Y

Y

N

40%

Rep. Joyce, David (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Farenthold, Blake (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Kaptur, Marcy (D-OH)

N

N

Y

Y

Y

NV

N

Y

Y

Y

60%

Rep. Flores, Bill (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Latta, Bob (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Gallego, Pete (D-TX)

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Renacci, James (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Gohmert, Louie (R-TX)

Y

Y

N

N

N

Y

Y

N

Y

N

50%

Rep. Ryan, Tim (D-OH)

N

N

Y

Y

N NV

N

Y

Y

Y

50%

Rep. Granger, Kay (R-TX)

Y NV Y

Y

Y

NV

Y

Y

Y

Y

80%

Rep. Stivers, Steve (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Green, Al (D-TX)

Y

N

Y

Y

N

N

N

Y

Y

Y

60%

Rep. Tiberi, Pat (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Green, Gene (D-TX)

Y

N

Y

Y

N

N

N

Y

Y

Y

60%

Rep. Turner, Michael (R-OH)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Hall, Ralph (R-TX)

Y

Y

N

N

Y

Y

Y

Y

Y

N

70%

Rep. Wenstrup, Brad (R-OH)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Rep. Hensarling, Jeb (R-TX)

Y

Y

Y

Y

N

Y

Y

Y

Y

Y

90%

Oklahoma Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Bridenstine, Jim (R-OK)

Y

Y

N

N

N

Y

Y

Y

Y

N

60%

NV Y

Rep. Cole, Tom (R-OK)

Rep. Hinojosa, Ruben (D-TX)

Y

N

Y

Y

Y

N

N

Y

Y

Y

70%

Rep. Jackson Lee, Sheila (D-TX)

N

N

Y

Y

N

N

N

Y

Y

Y

50% 50%

Y

Y

Y

Y

Y

NV

Y

Y

80%

Rep. Johnson, Eddie Bernice (D-TX)

N

N

Y

Y

Y

N

N

Y

NV

Y

Rep. Lankford, James (R-OK)

Y

Y

Y

N

N

Y

Y

Y

Y

N

70%

Rep. Johnson, Sam (R-TX)

Y

Y

N

N

Y

NV

Y

Y

Y

Y

70%

Rep. Lucas, Frank (R-OK)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Marchant, Kenny (R-TX)

Y

Y

N

N

Y

Y

Y

NV

Y

Y

70%

Rep. Mullin, Markwayne (R-OK)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. McCaul, Michael (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Oregon Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Neugebauer, Randy (R-TX)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. Blumenauer, Earl (D-OR)

N

N

Y

Y

N

N

N

Y

Y

N

40%

Rep. O'Rourke, Beto (D-TX)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Bonamici, Suzanne (D-OR)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Olson, Pete (R-TX)

Y

Y

N

Y

Y

Y

Y

Y

Y

N

80%

Rep. DeFazio, Peter (D-OR)

N

N

N

Y

N

N

N

Y

Y

Y

40%

Rep. Poe, Ted (R-TX)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Rep. Schrader, Kurt (D-OR)

N

Y

N

Y

Y

Y

N

Y

Y

Y

70%

Rep. Sessions, Pete (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Walden, Greg (R-OR)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Smith, Lamar (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Pennsylvania Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Stockman, Steve (R-TX)

Y

Y

N NV N

Y

Y

Y

N

N

50%

Rep. Barletta, Lou (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Thornberry, Mac (R-TX)

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Brady, Robert (D-PA)

N

Y

Y

Y

N

N

N

NV

Y

Y

50%

Rep. Veasey, Marc (D-TX)

N

N

Rep. Cartwright, Matt (D-PA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. Vela, Filemon (D-TX)

Y

Y

Rep. Dent, Charlie (R-PA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Weber, Randy (R-TX)

Y

Y

N

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

Y

Y

Y

Y

N

Y

N

Y

Y

Y

60%

Y

Y

Y

Y

N

Y

Y

Y

90%

N

N

Y

Y

Y

Y

N

60%

Rep. Williams, Roger (R-TX)

Y

Y

Y

N

N

Y

Y

Y

Y

NV

70%

Utah Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Herrera Beutler, Jaime (R-WA)

Rep. Heck, Denny (D-WA)

N

N

Rep. Bishop, Rob (R-UT)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Kilmer, Derek (D-WA)

N

N

Rep. Chaffetz, Jason (R-UT)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Larsen, Rick (D-WA)

N

N

Rep. McDermott, Jim (D-WA)

Election 60%

Y

Y

Y

N

N

Y

Y

Y

NV NV Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

N

Y

Y

Y

70%

Y

Y

Y

N

N

Y

Y

Y

60%

80%

Rep. Matheson, Jim (D-UT)

Y

Y

Y

Y

N

Y

Y

Y

Y

N

80%

N

N

Y

Y

N

N

N

Y

Y

N

40%

Rep. Stewart, Chris (R-UT)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. McMorris Rodgers, Cathy (R-WA) Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Reichert, Dave (R-WA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Smith, Adam (D-WA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

1

2

3

4

5

6

7

8

9

10

Score 100%

Vermont Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Welch, Peter (D-VT)

N

N

Y

Y

Y

N

N

Y

Y

N

50%

Virginia Representatives

1

2

3

4

5

6

7

8

9

10

Score

West Virginia Representatives

Rep. Cantor, Eric (R-VA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Capito, Shelley (R-WV)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Rep. Connolly, Gerald (D-VA)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Rep. McKinley, David (R-WV)

Y

Y

N

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Forbes, J. Randy (R-VA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Rahall, Nick (D-WV)

N

Y

Y

Y

Y

Y

Y

Y

Y

Y

90%

Rep. Goodlatte, Robert (R-VA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Wisconsin Senators

1

2

3

4

5

6

7

8

9

10

Score

Rep. Griffith, Morgan (R-VA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Duffy, Sean (R-WI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Y

Y

Y

Y

Y

Y

100%

Rep. Kind, Ron (D-WI)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

NV N

N

Y

Y

Y

50%

Rep. Moore, Gwen (D-WI)

N

N

Y

Y

N

N

N

Y

Y

Y

50%

Y

Y

Y

100%

Rep. Petri, Tom (R-WI)

Y

Y

Y

N

Y

Y

Y

Y

Y

Y

90% 40%

Rep. Hurt, Robert (R-VA)

Y

Y

Y

Y

Rep. Moran, James (D-VA)

N

N

Y

Y

Rep. Rigell, Scott (R-VA)

Y

Y

Y

Y

Y

Y

Y

Rep. Scott, Robert (D-VA)

N

N

Y

Y

Y

N

N

Y

Y

Y

60%

Rep. Pocan, Mark (D-WI)

N

N

N

Y

N

N

N

Y

Y

Y

Rep. Wittman, Rob (R-VA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Ribble, Reid (R-WI)

Y

Y

Y

N

Y

Y

Y

Y

Y

N

80%

Rep. Wolf, Frank (R-VA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Ryan, Paul (R-WI)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Rep. Sensenbrenner, Jim (R-WI)

Y

Y

Y

N

N

Y

Y

Y

Y

N

70%

Wyoming Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. Lummis, Cynthia (R-WY)

Y

Y

N

N

Y

Y

Y

Y

Y

N

70%

Washington Representatives

1

2

3

4

5

6

7

8

9

10

Score

Rep. DelBene, Suzan (D-WA)

N

N

Y

Y

Y

Y

N

Y

Y

Y

70%

Rep. Hastings, Doc (R-WA)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

AED Legislative Scorecard – 113th Congress

Senate Votes

1. Keystone: An amendment to HVWDEOLVK D GHÀFLW QHXWUDO UHVHUYH fund to promote ‌ the construc tion of the Keystone XL Pipeline (S.AMDT.494) Though largely symbolic, the amendment to the Senate’s budget proposed by Sen. John Hoeven (R-N.D.) put the upper house on record in support of the Keystone XL pipeline project. The measure passed 62-37 with unanimous Republican support as well as yes votes from a geographically broad coalition of Democrats. Despite this small success, the Senate never considered the House’s bill to supersede presidential authority and approve the pipeline (see discussion under House vote No. 1). House Vote: None

Senate Vote: 113-1-61, March 22, 2013 AED Position: Yes

4. Prevent a Shutdown: Consolidated Appropriations Act (H.R. 3547)

2. Estate Tax: To establish a GHĂ€FLW QHXWUDO UHVHUYH IXQG WR permanently eliminate the Feder al estate tax (S.AMDT.307)

See discussion under House vote No. 4. The Senate passed the omnibus bill 72-26. House Vote: 113-2-21, Jan. 15, 2014 Senate Vote: 113-2-13, Jan. 16, 2014 AED Position: Yes

Senator John Thune (R-S.D.) proposed an amendment to the Senate’s budget to eliminate the federal estate tax. The proposal fell short, 46-53, before the budget itself scuffled to a 50-49 victory. Some estimates indicate eliminating the tax could stimulate the creation of over a million jobs and over a trillion dollars in new capital formation. AED’s tax survey found that association members pay $31.82 million on estate tax-related insurance premiums each year in addition to the hefty fees for lawyers and accountants. The work of restoring certainty and simplicity to the tax code would be aided greatly by eliminating these costs along with the so-called “death tax.� House Vote: None Senate Vote: 113-1-67, March 22, 2013 AED Position: Yes

3. Prevent a Shutdown: Continu ing Appropriations Resolution (H.J. Res. 59) See discussion under House vote No. 3. The Senate passed the continuing resolution 64-36. House Vote: 113-1-640, Dec. 12, 2013 Senate Vote: 113-1-281, Dec. 18, 2013 AED Position: Yes

5. The Farm Bill: Agriculture Act of 2014 (H.R. 2642) See discussion under House vote No. 5. The Senate passed the Farm Bill 68-32. House Vote: 113-2-31, Jan. 29, 2014 Senate Vote: 113-2-21, Feb. 4, 2014 AED Position: Yes

6. Water Resources Reform and Development Act of 2014 (H.R. 3080) See discussion under House vote No. 8. The Senate passed WRRDA 91-7. House Vote: 113-2-220, May 20, 2014 Senate Vote: 113-2-163, May 22, 2014 AED Position: Yes

7. Workforce Innovation and Opportunity Act (H.R. 803) See discussion under House vote No. 9. The Senate passed WIOA 95-3. House Vote: 113-2-378, July 9, 2014 Senate Vote: 113-2-214, June 25, 2014 AED Position: Yes

)RUFH D 'HEDWH DERXW /RQJ Term Highway Funding: An amendment to replace funding offsets in the House version (continued on next page)

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

Election (“AED Legislative Scorecard – Senate Votes” continued from page 35)

of the Highway Trust Fund bill with measures approved by the Senate Finance Committee (S.AMDT.3583) The continuing effort by AED to restore certainty to the federal highway program came to a head in late July. The House and Senate faced off with competing measures to save the Highway Trust Fund in the waning days before the federal government would begin delaying infrastructure payments to the states. The amendment proposed by Sens. Tom Carper (D-Del.), Bob Corker (R-Tenn.) and Barbara Boxer (D-Calif.) was one of four considered before the Senate’s initial vote on the bill to keep the Highway Trust Fund solvent for the near future. The proposal to force Congress to find a longterm solution for the federal highway crisis before the end of the calendar year passed 66-31, and was included in the Senate’s version of the Highway Transportation and Funding Act of 2014.

However, the House refused to take up the measure. House Vote: None Senate Vote: 113-2-245, July 29, 2014 AED Position: Yes

transportation funding to the states and slash the federal gas tax by 80 percent. The measure would have forced states to shoulder the burden of maintaining thousands of miles of roadway by bulldozing the federal funding streams that local authorities – and construction equipment businesses – trust for continued future investment. House Vote: None Senate Vote: 113-2-246, July 29, 2014 AED Position: No

9. Getting Rid of the Federal Highway Program: An amendment to eliminate the federal highway program by repealing most of the federal gas tax and devolving responsibility for transportation funding to the states (S.Amdt. 3584)

10. Keeping the Federal Highway Program Operating: Highway and Transportation Funding Act of 2014 (H.R. 5021)

The amendment proposed by Sen. Mike Lee (R-Utah) was one of four considered before the Senate’s initial vote on the bill to keep the Highway Trust Fund solvent for the near future. The proposal fell short, 28-69, and was not included in the Senate’s version of the Highway Transportation and Funding Act of 2014. The Lee amendment sought to devolve authority over federal highway and

See discussion under House vote No. 10. The Senate approved the short-term highway solution 79-18. House Vote: 113-2-414, July 15, 2014 Senate Vote: 113-2-248, July 29, 2014 AED Position: Yes

How the U.S. Senate Voted on Select Issues Vote numbers (across the top):

Key

1.

Symbols Y: Agreed with AED’s Position N: Disagreed with AED’s Position P Voted Present NV Did Not Vote “-“ Unavailable for vote * The House Speaker does not usually vote unless the margin for passage is extremely close Score % agreement with AED’s position Highlighting denotes perfect AED score.

Keystone: An amendment to establish a deficit-neutral reserve fund to promote the construction of the Keystone XL Pipeline. (S.AMDT.494) Estate tax repeal: To establish a deficitneutral reserve fund to permanently eliminate the Federal estate tax. (S.AMDT.307) Prevent a Shutdown: Continuing Appropriations Resolution (H.J. Res. 59) Prevent a Shutdown: Consolidated Appropriations Act (H.R. 3547) The Farm Bill: Agriculture Act of 2014 (H.R. 2642) Water Resources Reform and Development Act of 2014 (H.R. 3080)

2. 3. 4. 5. 6.

7.

Workforce Innovation and Opportunity Act (H.R. 803) 8. Force a Debate about Long-Term Highway Funding: An amendment to replace funding offsets in the House version of the Highway Trust Fund bill with measures approved by the Senate Finance Committee (S.AMDT.3583) 9. Getting Rid of the Federal Highway Program: An amendment to eliminate the federal highway program by repealing most of the federal gas tax and devolving responsibility for transportation funding to the states. 10. Keep the Federal Highway Program Operating: Highway and Transportation Funding Act of 2014 (H.R. 5021)

Alabama Senators

1

2

3

4

5

6

7

8

9

10

Score

California Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Sessions, Jeff (R-AL)

Y

Y

N

N

N

Y

Y

N

N

N

40%

Sen. Boxer, Barbara (D-CA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Shelby, Richard (R-AL)

Y

Y

N

Y

N

Y

Y

Y

N

N

60%

Sen. Feinstein, Dianne (D-CA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Alaska Senators

1

2

3

4

5

6

7

8

9

10

Score

Colorado Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Begich, Mark (D-AK)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Bennet, Michael (D-CO)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Murkowski, Lisa (R-AK)

Y

Y

Y

Y

N

Y

Y

Y

N

Y

80%

Sen. Udall, Mark (D-CO)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Arizona Senators

1

2

3

4

5

6

7

8

9

10

Score

Connecticut Senators

1

2

3

4

5

6

7

8

9

10

Score 70%

Sen. Flake, Jeff (R-AZ)

Y

Y

N

N

N

N

Y

N

Y

N

40%

Sen. Blumenthal, Richard (D-CT)

N

N

Y

Y

N

Y

Y

Y

Y

Y

Sen. McCain, John (R-AZ)

Y

Y

Y

N

N

N

Y

N

Y

N

50%

Sen. Murphy, Christopher (D-CT)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70%

Arkansas Senators

1

2

3

4

5

6

7

8

9

10

Score

Delaware Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Boozman, John (R-AR)

Y

Y

N

Y

Y

NV

Y

N

N

Y

60%

Sen. Carper, Thomas (D-DE)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Pryor, Mark (D-AR)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Coons, Chris (D-DE)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

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

Election

Florida Senators

1

2

3

4

5

6

7

8

9

10

Score

New Jersey Senators

1

2

3

4

5

6

7

8

9

10

Sen. Nelson, Bill (D-FL)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Booker, Cory (D-NJ)

-

-

Y

Y

N

Y

Y

Y

Y

Y

Score 88%

Sen. Rubio, Marco (R-FL)

Y

Y

N

N

N

Y

Y

N

N

N

40%

Sen. Menendez, Robert (D-NJ)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80% Score

Georgia Senators

1

2

3

4

5

6

7

8

9

10

Score

New Mexico Senators

1

2

3

4

5

6

7

8

9

10

Sen. Chambliss, Saxby (R-GA)

Y

Y

Y

NV

Y

Y

Y

N

N

Y

70%

Sen. Heinrich, Martin (D-NM)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Isakson, Johnny (R-GA)

Y

Y

Y

Y

Y

Y

Y

N

N

Y

80%

Sen. Udall, Tom (D-NM)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80% Score

Hawaii Senators

1

2

3

4

5

6

7

8

9

10

Score

New York Senators

1

2

3

4

5

6

7

8

9

10

Sen. Hirono, Mazie (D-HI)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Gillibrand, Kirsten (D-NY)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70%

Sen. Schatz, Brian (D-HI)

N

N

Y

Y

Y

Y

Y

50%

Sen. Schumer, Charles (D-NY)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80% Score

NV NV NV

Idaho Senators

1

2

3

4

5

6

7

8

9

10

Score

North Carolina Senators

1

2

3

4

5

6

7

8

9

10

Sen. Crapo, Michael (R-ID)

Y

Y

N

N

Y

Y

Y

N

N

N

50%

Sen. Burr, Richard (R-NC)

Y

Y

N

N

N

N

Y

N

N

N

30%

Sen. Risch, Jim (R-ID)

Y

Y

N

N

Y

Y

Y

N

N

N

50%

Sen. Hagan, Kay (D-NC)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Illinois Senators

1

2

3

4

5

6

7

8

9

10

Score

North Dakota Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Durbin, Richard (D-IL)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Heitkamp, Heidi (D-ND)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Kirk, Mark (R-IL)

Y

Y

N

Y

Y

Y

Y

Y

N

Y

80%

Sen. Hoeven, John (R-ND)

Y

Y

Y

Y

Y

Y

Y

Y

N

Y

90%

Indiana Senators

1

2

3

4

5

6

7

8

9

10

Score

Ohio Senators

1

2

3

4

5

6

7

8

9

10

Score 80%

Sen. Coats, Dan (R-IN)

Y

Y

N

Y

Y

NV

Y

N

Y

Y

70%

Sen. Brown, Sherrod (D-OH)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

Sen. Donnelly, Joe (D-IN)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Portman, Rob (R-OH)

Y

Y

Y

N

Y

Y

Y

N

N

N

60%

Iowa Senators

1

2

3

4

5

6

7

8

9

10

Score

Oklahoma Senators

1

2

3

4

5

6

7

8

9

10

Score 30%

Sen. Grassley, Charles (R-IA)

Y

Y

N

N

N

Y

Y

N

Y

Y

60%

Sen. Coburn, Tom (R-OK)

Y

Y

N NV N

N

N

N

Y

N

Sen. Harkin, Tom (D-IA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Inhofe, James (R-OK)

Y

Y

N

N

N

Y

Y

N

N

Y

50%

Kansas Senators

1

2

3

4

5

6

7

8

9

10

Score

Oregon Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Moran, Jerry (R-KS)

Y

Y

N

Y

Y

Y

Y

N

N

Y

Sen. Roberts, Pat (R-KS)

Y

Y

N

N

N

N

Y

NV NV NV

70%

Sen. Merkley, Jeff (D-OR)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

30%

Sen. Wyden, Ron (D-OR)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80% Score

Kentucky Senators

1

2

3

4

5

6

7

8

9

10

Score

Pennsylvania Senators

1

2

3

4

5

6

7

8

9

10

Sen. McConnell, Mitch (R-KY)

Y

Y

N

N

Y

Y

Y

Y

N

Y

70%

Sen. Casey, Bob (D-PA)

Y

N

Y

Y

N

Y

Y

Y

Y

Y

80%

Sen. Paul, Rand (R-KY)

Y

Y

N

N

N

Y

Y

N

Y

N

50%

Sen. Toomey, Patrick (R-PA)

Y

Y

N

N

N

Y

Y

N

N

N

40% Score

Louisiana Senators

1

2

3

4

5

6

7

8

9

10

Score

Rhode Island Senators

1

2

3

4

5

6

7

8

9

10

Sen. Landrieu, Mary (D-LA)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Reed, Jack (D-RI)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70%

Sen. Vitter, David (R-LA)

Y

Y

N

Y

Y

Y

Y

N

N

Y

70%

Sen. Whitehouse, Sheldon (D-RI)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70% Score

Maine Senators

1

2

3

4

5

6

7

8

9

10

Score

South Carolina Senators

1

2

3

4

5

6

7

8

9

10

Sen. Collins, Susan (R-ME)

Y

N

Y

Y

N

Y

Y

Y

N

Y

70%

Sen. Graham, Lindsey (R-SC)

Y

Y

N

Y

Y

Y

Y

N

Y

Y

80%

Sen. King, Angus (I-ME)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Scott, Tim (R-SC)

Y

Y

N

N

N

Y

Y

N

N

N

40%

Maryland Senators

1

2

3

4

5

6

7

8

9

10

Score

South Dakota Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Cardin, Benjamin (D-MD)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Johnson, Tim (D-SD)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Mikulski, Barbara (D-MD)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Thune, John (R-SD)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

Massachusetts Senators

1

2

3

4

5

6

7

8

9

10

Score

Tennessee Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Markey, Edward (D-MA)

-

-

Y

Y

N

Y

Y

Y

Y

Y

88%

Sen. Alexander, Lamar (R-TN)

Y

Y

N

Y

Y

Y

Y

Sen. Warren, Elizabeth (D-MA)

N

N

Y

Y

N

Y

Y

Y

Y

Y

70%

Sen. Corker, Bob (R-TN)

Y

Y

N

N

N

Y

Y

NV NV NV N

60%

Y

Y

60%

Michigan Senators

1

2

3

4

5

6

7

8

9

10

Score

Texas Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Levin, Carl (D-MI)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Cornyn, John (R-TX)

Y

Y

N

N

N

Y

Y

N

N

N

40%

Sen. Stabenow, Debbie (D-MI)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Cruz, Ted (R-TX)

Y

Y

N

N

N

Y

Y

N

N

N

40%

Minnesota Senators

1

2

3

4

5

6

7

8

9

10

Score

Utah Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Franken, Al (D-MN)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Hatch, Orrin (R-UT)

Y

Y

Y

Y

Y

Y

Y

Y

N

N

80%

Sen. Klobuchar, Amy (D-MN)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Lee, Mike (R-UT)

Y

Y

N

N

N

N

N

N

N

N

20%

Mississippi Senators

1

2

3

4

5

6

7

8

9

10

Score

Vermont Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Cochran, Thad (R-MS)

Y

Y

N

Y

Y

Y

NV

Y

N

Y

70%

Sen. Leahy, Patrick (D-VT)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Wicker, Roger (R-MS)

Y

Y

N

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Sanders, Bernard (I-VT)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80% Score

Missouri Senators

1

2

3

4

5

6

7

8

9

10

Score

Virginia Senators

1

2

3

4

5

6

7

8

9

10

Sen. Blunt, Roy (R-MO)

Y

Y

N

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Kaine, Tim (D-VA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. McCaskill, Claire (D-MO)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Warner, Mark (D-VA)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90% Score

Montana Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Tester, Jon (D-MT)

Y

N

Y

Y

Y

Y

Y

Y

Y

Y

90%

Sen. Walsh, John (D-MT)

-

-

-

-

-

Y

Y

Y

Y

Y

100%

Washington Senators

1

2

3

4

5

6

7

8

9

10

Sen. Cantwell, Maria (D-WA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Murray, Patty (D-WA)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Nebraska Senators

1

2

3

4

5

6

7

8

9

10

Score

West Virginia Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Fischer, Deb (R-NE)

Y

Y

N

N

Y

Y

Y

N

N

Y

60%

Sen. Manchin, Joe (D-WV)

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

100%

Sen. Johanns, Mike (R-NE)

Y

Y

N

N

Y

Y

NV

Y

N

Y

60%

Sen. Rockefeller, Jay (D-WV)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Nevada Senators

1

2

3

4

5

6

7

8

9

10

Score

Wisconsin Senators

1

2

3

4

5

6

7

8

9

10

Score 80%

Sen. Heller, Dean (R-NV)

Y

Y

N

N

N

Y

Y

Y

N

Y

60%

Sen. Baldwin, Tammy (D-WI)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

Sen. Reid, Harry (D-NV)

N

N

Y

Y

Y

Y

Y

Y

Y

Y

80%

Sen. Johnson, Ron (R-WI)

Y

Y

Y

N

N

N

N

N

N

N

30%

New Hampshire Senators

1

2

3

4

5

6

7

8

9

10

Score

Wyoming Senators

1

2

3

4

5

6

7

8

9

10

Score

Sen. Ayotte, Kelly (R-NH)

Y

Y

N

Y

N

Y

Y

N

N

Y

60%

Sen. Barrasso, John (R-WY)

Y

Y

N

N

N

Y

Y

Y

Y

Y

70%

Sen. Shaheen, Jeanne (D-NH)

N

N

Y

Y

Y

Y

Y

Y

N

Y

70%

Sen. Enzi, Michael (R-WY)

Y

Y

N

N

Y

Y

Y

Y

Y

Y

80%

October 2014 | Construction Equipment Distribution | www.cedmag.com | 37

A Closer Look

The

Name Game How come such a fun and hulky industry like construction equipment generally leans toward the bland for its machine monikers? (albeit with some exceptions) And what about naming standardization for the sake of customers? CED takes a lighthearted look at the logic behind the labels. BY GILES LAMBERTSON

“Sometimes you have to wonder, how did they come up with that?” Katie Herriges, marketing design coordinator for Manitou Group, thus voices underlying consternation about insipid product names for construction equipment. Dullness is the rule, with most titling of equipment employing nondescript combinations of letters and numbers. If galvanizing names for heavy equipment models is too much to ask, how about clarity? Workers chatting in a workroom or executives talking shop in an equipment manager’s office can’t converse about a model 135 without first establishing if they mean a JCB 135 (skid-steer loader), Link-Belt 135 (excavator), or Caterpillar 135 (motor grader). Of course, if only one machine sits in the equipment yard, model numbers don’t matter. In that case, talk is about the skid steer, excavator, or grader. But when a fleet of machines crowds a contractor’s yard, things get interesting. “Go get the 316, Hank,” a foreman might imprecisely say, 38 | www.cedmag.com | Construction Equipment Distribution | October 2014

and Hank is liable to crank up a Cat excavator, Bobcat miniexcavator, or Kramer wheel loader of that designation. (And if Hank doesn’t hear well, he might errantly power up a John Deere 315 skid steer.) Image vs. Tech Data The business-to-business market in which construction OEMs battle for market share is not the same as the consumer market. Everyone understands that. B2B is deemed to be a relatively rational marketplace, with technical features and durability generally more important than style and other superficial considerations, such as a product’s name. Yet OEMs would chafe at the suggestion that their designers pay no mind to style. Most equipment might come in one color, a shade of yellow, but look at some of those cab shapes and engine hoods and ask yourself if the swoops and tucks and venting are purely functional. The

Branding

answer is no. Heavy equipment machine designers are still designers. The same cannot be said for most of the industry’s name designers. The whole business of distinguishing products falls under the rubric of naming architecture and convention, or nomenclature. It is the affixing of names or designations to a company product in a way that logically relates the product to other company products – and helps customers easily identify and become attracted to a product. Quiz: Which of the following does not satisfy the second criterion of desirable nomenclature, which is to help customers in their product shopping: A. Coca-Cola Zero B. Ford Fusion C. Hyundai HL757CTD-9A You see the problem. The situation is particularly egregious because the industry is rife with memorable and vital images it could call upon. These include machine features like thumbs and grapplers, couplers and – booms! The industry has machines called skid steers, companies called Caterpillar and Ditch Witch, a delightful slogan of “Nothing Runs Like a Deere,” and yet is awash in tired and innocuous product titles. Cleaner Understanding At Manitou Group, the Mustang lineup of side-steer loaders is being clarified somewhat – if not actually energized. Herriges says that a new R Series of skid steers has model designations that are based on maximum lifting capacity – 1350R, 1500R and so on. They succeed a 2000 Series line. “The models 2041, 2044 and so on were named because of their inclusion in the series,” she said. “The last two digits really served no purpose other than their model designations in the series. There was no correlation in lift height, capacity, engine, etcetera.” Naming products at Mustang is a collaborative effort of its engineering and marketing departments, according to Herriges. The new designations “make for cleaner understanding and give a model and number a little more obvious meaning.” “A little more obvious meaning” is an improvement, of course, but hold the applause. Rational cataloging of sequentially scaled models is not the same as introducing the products with verve. How about extending the Mustang brand image into its product lineup – a Thoroughbred Series, perhaps, or a Lariat Line? Herriges says such thematic designations are reserved for Mustang sales literature. Too bad. Nothing about an “R series” encourages personal identification with the machines as might, say, a Colt Series. “Colt” is an embraceable identity. Consider GMC truck owners, who affectionately give their muscular rides the diminutive name of “Jimmy.” Admiring mining industry veterans know the largest single-bucket digging machine in the world as “Big Muskie,” not as the Bucyrus-Erie 4250-W. It’s tough to feel cuddly about numbers.

The utility truck body segment of the construction industry also is “very commonsense-based,” according to Tony Marshall, product manager at Knapheide Manufacturing Company. That is true at Knapheide partly because the company offers so many different products – 300-400. The sheer number makes it tough to come up with “a lot of flashy names and models,” Marshall says, especially in a segment of the industry as prosaic as service bodies. “Our company has historically been heavily focused on the engineering side of products. As we develop a product, we name it very logically on the configuration of a body. As we add more bodies, for familiarity’s sake we just maintain the same strategy.” Asked if current labeling – such as “KMT1 Mechanics Truck,” “60J Crane Body,” and “Value-Master-X” (in which the X “is just an add-on and doesn’t stand for anything”) – might be identified in more dynamic ways, Marshall said, “Not really. There is no compelling reason to change. The name often tells us exactly what the body looks like.” Marshall says market-leading Knapheide has put a lot of thought in being responsive to its customer base and differentiating its brand. “We have a very strong image and name and we intend to leverage it.” Another industry leader, Deere & Company also has a full plate of products that might test the skills of even the best name-creation agency. But what if the company produced a one-of-a-kind machine – would that lend itself to a distinctive name? As it happens, Deere created such a singular machine in 2009, a “high-speed dozer” that it dubbed the HSD 764. The initials HSD are self-explanatory, if not exactly catchy. “Quik-Dozer” might have been grabbier. But why the “764” tag? A scan of its specifications doesn’t explain the three digits. Yet even if there is some relevance to 764, why attach the number and muddy up the designation? The machine is, after all, the only one of its kind in the world! (John Deere marketing people declined to be interviewed for this article.) Striving for Standardization The Manitowoc Company is home to crane companies of diverse heritage. Potain tower cranes, Grove mobile telescoping cranes, and National crane boom trucks now nest with Manitowoc lattice boom crawler cranes. In the last couple of years, executives in product development, engineering, and marketing have been working together to blend the various legacies using a common jargon. “With different companies coming together into one, everyone kind of had his own system,” said Chris Bratthauar, Manitowoc’s director of global marketing. “It’s a lot easier for a customer if there is a standardized nomenclature Now there are two or three letters followed by a series of numbers and the letters and numbers specify something. Before, there was a lot less logic to it.” So, for example, a GMK6300L all-terrain crane stands for a Grove Mobile Kron (“kron” is “crane” in German; (continued on next page)

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

Branding

(“The Name Game” continued from page 39)

admittedly, “GMC” could be confusing) with 6 axles, a 300-metric ton capacity and an L (for long) boom. The Manitowoc system is logical, if still a bit of a porridge – and it is not without its illogical elements: The various models skip back and forth between metric and U.S. tonnage labels. The GMK7550, for example, despite its name lifts 450 metric tons (550 imperial tons). Bratthauar says such inconsistencies will be ironed out moving forward. “Internally, we go by serial numbers,” the marketing director said. “Yet the benefit of this new system is both internal and external. It is a lot easier to expand a product line if the nomenclature makes some sense, and moving to a standardized nomenclature makes the most sense. It is easier for our customers to understand when we talk to them and they talk to us.” As for the likelihood that the industry as a whole will move to more accessible and imaginative product labeling, Bratthauar is noncommittal. “I honestly think every manufacturer does their own thing. There is no standard for the standards.” In the view of Marc Dowdell, president of LiuGong North America, industry standardization of nomenclature would be preferable from a customer and manufacturer viewpoint. “I think the market as a whole would greatly prefer some standardization for easier identification and comparison. I would think a contractor would prefer standardization for all OEMs on model designations.” LiuGong NA might be especially eager for comparisons because it is a recent entry in the North American market and wanting to match up with rivals in the minds of potential customers. The Chinese subsidiary incorporated as a North American entity in 2008 and, according to Dowdell, is experiencing 40 percent annual growth. In LiuGong idiom, equipment models are purely rational. For example, the 950E is an E-model excavator (9 is arbitrary shorthand for excavator) with a 50 metric-ton operating weight. The company’s CLG856III is a China LiuGong (CLG) wheel loader (8 designates such machines) with a 5 metricton payload and a Tier-3 (III) engine. OK. And what about the “6” in the foregoing model’s ID? “That doesn’t have significance,” said Dowdell. Nevertheless, Dowdell believes the LiuGong designation of its excavators and wheel loaders “is logical and simple.” He concedes that naming a series of machines might be valuable “for marketing purposes.” He added, “In regards to model numbers, I am sure the end user would prefer standardization for quick reference and understanding. At the end of the day, the most important person is the end-user and their needs.” Attachment to Names Specialty companies in the industry seem less inhibited in their product naming. Some examples: Fifty years ago, Allied 40 | www.cedmag.com | Construction Equipment Distribution | October 2014

Construction Products introduced its now-standard trenchshoring product and called it the Tren-Shore. In the 1970s, Rockland Manufacturing introduced its sifting conveyercollector machine that strips land of rocks and roots – the Rockland Rotoveyer. Genesis Attachments Co. doesn’t mince words in offering a Pulverizer Jaw and a Concrete Cracker Jaw. Then there is Leading Edge, a Massachusetts attachments company that seems to find special joy in imaginative product names. Its rock-ripping buckets have appellations that allude to animals and animal parts. The company offers Multi-Ripper Talon and V-Raptor buckets for backhoes and excavators, as well as a tree stump scoop called a – wait for this – Stumpiranha. The audacious terminology is a conscious attempt to brand the company in the minds of equipment shoppers. “If we keep hammering it,” said Lee Horton, slipping into appropriate metaphoric language, “we believe it will become a memorable thing and people will come to us when they are looking for attachments.” Horton is president of Leading Edge and a former engineering manager at Woods Manufacturing, which used to have a plant in New England. He and a few former Woods colleagues formed Leading Edge to design, market, and sell attachments, all of which are manufactured for them by Woods. The novel names mostly are a product of Horton’s imagination, but Leading Edge isn’t just name-happy. Its steady introduction of products with high utility has earned it New Product of the Year awards (the most recent in 2012). Its ripping buckets feature wicked-looking shanks arranged in an arc. The technology is trademarked as “Sharc” (shanks on an arc), and has proven to be faster and more effective than a hydraulic hammer and single ripper tooth. After 20 years of innovations, Leading Edge claims to lead the industry in rock-working attachments for excavators. It continues to patent and introduce new products: Coming soon to a construction site near you is a Leading Edge plate that goes on the head of a hydraulic hammer and turns it in a compactor – the Compachyderm. For a former engineer, Horton demonstrates an unusual aptitude for marketing. He notes that the name of the growing company, Leading Edge, refers to both the front surface of an excavation bucket and the concept of being state of the art. “The whole thing is about brand recognition,” he said. “If our marketing can catch the eyes of industry shoppers, they might say, ‘I don’t need that now.’ But when they run into a rock, they are apt to remember our product names and look us up.” By any name, that’s dynamic product marketing. 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

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A Closer Look

Forward-Looking Finance

Life Cycle Asset Management

1

Lifecycle Asset Management challenges end-users and manufacturers to move away from thinking about owning assets and instead focuses on leasing the services the equipment provides. View the video at www.delagelanden.com

Few would debate the fact the construction industry has experienced some major shifts in how equipment is managed. Economic uncertainty has caused businesses to rethink purchasing and turn to leasing and rental to meet their needs and get the most use out of their assets. At the same time, anticipated new Accounting Standards being discussed and finalized by the International Financial Reporting Standards and Financial Accounting Standards Board are causing businesses to evaluate how they will purchase and finance assets in the future. A Vendor Finance Focus De Lage Landen (DLL), a fully-owned subsidiary of Rabobank, is intent on keeping abreast of these changes and looking for new ways to accommodate the needs of the market. Unlike some industry finance companies, De Lage Landen’s focus is solely on vendor finance. Since 2001, they have had an active presence in the U.S. construction market. Tom Casey, vice president and general manager for the company’s Construction, Transportation and Industrial Business Unit in the Americas Region believes that offers some specific advantages. “Because we support the manufacturer, dealers know they are talking with us in confidence. We are not going down the Tom Casey street to a competitor. When dealing with De Lage Landen, that deal is sacred,” said Casey. Don Knackstedt, CFO of Hayden-Murphy Equipment, based in Minneapolis, Minn., concurs that DLL has a very strong alliance with manufacturers. “There is a high degree of credibility, trust and confidence that they know how to get the job done on the finance end.” In the 2014 Monitor 100 Survey, De Lage Landen ranked No. 1 in new business volume among the Top 25 Vendor

42 | www.cedmag.com | Construction Equipment Distribution | October 2014

De Lage Landen is developing solutions to benefit the enduser, the dealer and the manufacturer in the construction equipment industry BY JOANNE COSTIN

Finance companies in the U.S. for the third year in a row. The Monitor is a U.S. Leasing Industry publication. Construction Industry Expertise De Lage Landen offers a full suite of products and services including traditional loans and leases as well as asset-based working capital facilities, floor-plan facilities, and rental-fleet finance products. According to Knackstedt, knowledge of the industry sets them apart from the competition. “I think the most important thing is their commitment to the heavy construction equipment business,” he said. Hayden-Murphy uses De Lage Landen for retail and wholesale financing on both LBX excavators and Grove and Manitowoc cranes. “They are very tied-in. They understand the equipment and customers, and you know they will be in this industry for a long time. Other traditional sources such as banks sometimes get in and get out of it.” Understanding the assets is another key factor. “Because they understand the equipment, they have a better appreciation for the values and the life of that piece of equipment,” added Knackstedt. “It makes the process and the transaction very easy.” According to Knackstedt, an independent finance source may not understand what the values are. “We’ll give DLL the make and model number, and they know what we are talking about. They often know who the customer is.” According to Knackstedt, understanding customer needs is just as important as understanding the equipment. “In a cold weather climate, a customer might need to have special payment terms. They might have to have months where they skip payments. You have to have a finance company that understands that and is willing to work for the customer.”

A Closer Look

Nontraditional Financing to Grow With its global footprint and involvement in other industries, DLL is in a position to move with emerging trends in equipment financing. One of those trends is the growth of nontraditional financing options including managed solutions. Managed solution programs focus on the usage of assets. End-users are driving the change, as they seek ways to lower their equipment costs, increase utilization, improve their balance sheets, and arrive at a total solution. “The behavior in most markets is such that companies don’t want to finance a machine; they want to pay for the use of that machine, versus the ownership of that machine” said Casey. According to Casey, pending accounting changes are also fueling interest in nontraditional financing. If International Accounting Standards are adopted in the U.S., they will likely change the way leases are accounted for. “We think there will be a shift as to how assets are going to be carried,” said Casey. “We’re considering innovative ways to find a solution and assist the end-users, distributors and manufacturers up and down the supply chain if this were to come about.”

Selling New by Offering Pre-Owned Assets

Selling new E\ RƪHULQJ SUH RZQHG DVVHWV

In this whitepaper(at delangelanden.com), De Lage Landen dispels the view that offering remanufactured or refurbished assets negatively impacts new asset sales. The study was established in close cooperation with 26 representatives of 14 manufacturers across the industries of construction, transportation, agriculture and healthcare. Manufacture RƪHULQJ UHP rs frequently fear that UHIXUELVKHG DDQXIDFWXUHG RU new sales. VVHWV QHJDWLYHO\ LPS Myth or true DFW story? See

what counts

.

1

Some usage-based solutions include cost per hour, fleet management services, and life-cycle asset management. Here’s how they would work: Life Cycle Asset Management (LCAM) at DLL is the economical and sustainable management of assets throughout their entire technical life. This is accomplished by providing tailored financial services (like operational lease, swapping of assets, extended usage, redeployment, second-life finance, etc.) with proactive repair and maintenance, refurbishment and remanufacturing skills. Executed properly, LCAM enables manufacturers, dealers, end-users and DLL to extract more value out of the quality of the assets while fostering a sustainable economic model. Casey believes there is an opportunity for dealers in looking at not only the first sale, but in every stage of the lifecycle. “There are opportunities to improve efficiency,

De Lage Landen Retail Products for Construction $1 Purchase Option Lease Loan & Security Agreement Fair Market Value/Operating Lease/Open-Residual Fixed Price Purchase Option Skip Payment Deferred Payment Plans Step or Graduated Payment Plans Customer Promotional Rate Programs Rental Fleet Financing/Hire Purchase Term 12 to 72 months or longer Subsidized Pricing Early Buy-Out Options

from a resource standpoint, while generating new income streams for distributors,” he said. In a fleet management solution, DLL would assist the dealers in the management of assets during its entire life, from lease origination to lease termination. In this way, manufacturer, dealer and end-user effectively manage residual risk and maintain a competitive position in the marketplace by completing periodic portfolio reviews, secondary market analysis, realized residual forecasting, and sensitivity analysis. According to Casey, one new financing idea is to pay for equipment based on utilization. Instead of paying a flat rate for a period of time, as is common in equipment leases, end-users would lease equipment with a minimum utilization rate. This would result in a less onerous payment when equipment is not in use and production is low, and a higher payment when production is high, thereby paying more for the equipment usage in the years when revenues match higher equipment utilization. Increased usage of telematics supports service, and makes this process easier to manage. “Manufacturers and distributors need to rethink the manufacturing and distribution of assets for their endusers,” said Casey. He acknowledges that in order for managed solutions to work effectively, manufacturers and dealers need to be on board. Asset-based solutions require a thorough analysis of risks and rewards. “You need a trifecta to support it,” said Casey. “You have to have all three parties participating in the solution.” Looking Toward the Future Casey believes working together with a financial solutions provider will become ever more important in the future, as usage-based solutions have the potential to enhance sales opportunities within the market. For now, they are working with manufacturers and dealers to fully understand the risk and rewards in bringing these end-user-focused programs to market. While construction typically lags behind other industries in adopting new ideas, the significant benefits of managed solutions may lead contractors to take the plunge sooner rather than later. October 2014 | Construction Equipment Distribution | www.cedmag.com | 43

www.liugongna.com T O U G H W O R L D . T O U G H E Q U I P M E N T.

LiuGong North America offers a full-line of machines including DRESSTA bull dozers.Rugged terrain, extreme climates, remote locations. LiuGong machines are developed to excel in the toughest conditions which makes them your true reputation builders. LiuGong, Dressta, their respective logos, as well as corporate and product identity used herein, are trademarks of Guangxi LiuGong Group Co., Ltd and may not be used without permission. Š 2014 LiuGong. All rights reserved.

On the Numbers

Top Three Trends To Watch Out For – Or Take Advantage Of The signs are out there, and I’ve been reading them. BY GARRY BARTECKI

I am an avid reader and student of the financial markets, options trading, the energy sector, as well as the construction industry, including OEMs, dealers, contractors and the rental industry. In addition, I have owned a retail dealership, audited many dealerships, and currently work part time as CFO for an 800-unit rental company. Putting all this experience together, I’ve identified emerging trends that could have either a positive or negative impact on your company – depending what you do about them.

equipment sold to rental companies is probably sold direct without any of the product support business that dealers need to survive. The point here is that every OEM and dealer needs to see how they fit into this expanded rental environment and adjust their strategic plan to get a piece of this action. Tip: Read “Meeting the Needs of Contractors,” from the August edition of ARA’s Rental Management – this is a must-read to understand how contractors are making rental decisions.

Secular Shift to Rental Continues Executive Surveys ARA expects rental revenues to be $38 One of the publications I love to read billion in 2014. I think we all kind of every month is Forbes, because I am expected that and recognize that since constantly amazed at the devotion the Great Recession contractors find and ingenuity of entrepreneurs in the rental to be a better alternative for a lot good old USA. Forbes also does white of the equipment used on the jobsite. papers and surveys, covering 400-500 The trend, however, indicates that executives in different sectors of the by 2018 rental revenues will total $51 economy. After reading the last three billion, a 34 percent increase in rental. reports, I see a trend developing Now, calculate how much rental regarding CEOs’ perceived areas of risk: equipment is required to generate 90+ percent worried about loss of $51 billion in rental revenue, and that market share should stimulate some thinking for 70+ percent worried about OEMs and dealers, especially those relevance of their product in the that do not have a healthy investment marketplace in the rental business. 60 percent worried about new The 34 percent increase represents entrants disrupting their business model both an increase in construction For this industry, I believe the rental activity as well as an increase in rental shift alone can produce loss of market use by contractors. But the big issue share and product relevance, because is, who is selling this equipment into when contractors call to rent equipthe rental industry and who will service ment they do not specify brand and this equipment once it is in the rental will easily switch to another vendor if industry. If a dealer is formally in the you do not have the requested product rental business I guess we can assume available to rent. In short, management his or her OEM line makes up a good better spend that time on the strategic portion of the rental fleet along with plan so that they know where they are supplying any related parts to service going and how they plan to get there. the fleet. On the other hand, any The risk is real.

Three Components of Stock Market Returns Another article I read spelled out what makes up the value of a stock for a public company. While you may not be public, the basic components the author was talking about apply to any business: Dividends Earnings Growth Change in P/E ratio For 2013, the S&P 500 increased in value by 32 percent, which came from a 5 percent growth in earnings, a small 2 percent from dividends, and 25 percent because investors were willing to pay more for stocks in 2013. The trend here results from the fact that M&A activity is picking up and buyers may be willing to pay more to expand or increase their rental presence. How does this fit in with our industry? A couple of ways: We have dealers who want out. We have dealers who wish to expand. We have OEMs that need to solidify their supply chain. Interest rates make it attractive to buy now. These interest rates allow for more aggressive pricing, because less cash is required for debt service. If there was ever a time for OEMs and dealers to partner up and manage their market, this is the time to do it. To do otherwise leads to loss of enterprise value on both ends. GARRY BARTECKI (gbartecki@comcast.net) is founder of Dealer-Rental Success LLC, is a financial consultant to the equipment industry. He can be reached at 708-347-9109.

October 2014 | Construction Equipment Distribution | www.cedmag.com | 45

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Business Outlook

Cranes Take a Hit But overall, North America continues to improve, while ‘Rest Of World’ remains questionable at best.

ELI LUSTGARTEN

The U.S. economy appears to be on a roll as we head toward the last quarter of 2014. Construction employment hit a fiveyear high in August, with construction workers employed up 4 percent YTD (twice the increase in non-farm employment) to just over 6 million workers, the highest total since May 2009. GDP in 2Q2014 was surprisingly increased in the first revision to 4.2 percent with most pundits still looking for 2H2014 growth of around 3 percent. Moreover, the value of nonresidential construction starts jumped 25 percent in August from the same period a year ago and is up 8.3 percent in the first 8 months of 2014 compared to the same period last year, according to Reed Construction data. However, just as the economic data begins to drive optimism toward improved economic growth, a major construction OEM pre-announced a major shortfall in crane demand. Terex announced that despite a positive trend in book-to-bill ratios over the first half of 2014, the cranes order rate has dropped significantly in July and August. Additionally, crane customers in developing markets are struggling to secure financing for orders scheduled for delivery in the second half of 2014. It appears NA demand is ok, but the rest of world lags. The bottom-line is that Terex now believes the top-line outlook for the crane sector has been reduced from low single digit growth to a mid-single digit decline; operating margins outlook has also been reduced from mid/upper single digits to mid single digits. Terex also took down their forecasts for port equipment and materials processing while slightly improving their projections for aerial work platforms (AWP).

The uncertainty and unevenness of demand will likely continue to strengthen the secular trend by contractors toward rental to take care of near-term equipment needs. This has driven rental companies’ share of construction equipment purchases to over 50 percent of the market in the past several years and possibly over 60 percent of all equipment sold in 2013. Latest data suggests that earthmoving equipment such as dozers, tractors and wheel loaders saw somewhat over 50 percent of industry sales to rental houses, while material handling, cranes, AWPs, and rough-terrain lift trucks are closer to 85-90 percent purchased by rental companies. The construction outlook for the remainder of 2014 and into 2015 will likely be a continuation of current trends. Recently reported construction spending in the U.S. for July rose in all major categories and at $981B (up 8 percent Y/Y) reached the highest level since December 2008. Private nonresidential (up 14 percent Y/Y) should remain strong for the rest of 2014 and well into next year, and residential spending (up 8 percent) is likely to continue to improve moderately for the foreseeable future. Public spending (up 2.1 percent Y/Y but -0.1 percent YTD) is still facing inadequate funding for needed public infrastructure programs. Construction activity outside of the U.S. continues to be soft. Europe has been modestly improving in 1H2014, but recent conditions have deteriorated. Italy is back in recession, France appears to be in free fall, German activity has slowed in part due to the Ukraine/Russia conflict, and conditions in Southern Europe remain uncertain. Only the UK appears to be

improving. Latin America continues to see suppressed demand in most countries and China demand remains weak. The mining sector continues to be searching for a bottom and there is some sign of stabilization as MRO activity has improved in most regions of the world. We continue to believe that construction equipment demand (excluding cranes) in 2014 will increase by low double-digits (about 10-12 percent) driven by the strength of the U.S. market, which appears to be up low to mid-teens in several segments of earthmoving, and in specialty equipment such as AWPs and telehandlers. We currently expect demand to continue to improve in 2015 at a mid- to high-singledigit rate assuming global political issues do not escalate. Mining equipment demand will hopefully stabilize next year and even the demand for cranes should show some rebound to perhaps a mid-single-digit growth. In our view, the key to more significant demand lies in the natural gas/ LNG sector. Both the U.S. and Canada now have dramatically increasing supplies of natural gas driven by the rapid expansion of shale gas production. What’s missing is the needed transportation and storage infrastructure to move and export the surplus gas. As of July, there were 14 LNG export terminals in the U.S. and three in Canada awaiting approval from federal regulatory authorities in Washington and Ottawa; 25 additional sites are listed as potential projects. These are potentially boom numbers. ELI LUSTGARTEN (elustgarten@aol. com) is president of ESL Consultants, an industrial consulting firm.

October 2014 | Construction Equipment Distribution | www.cedmag.com | 47

Telematics

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Aftermarket

Every Machine is Your Product Support Customer And every single machine contributes to the foundation of your long-term success. BY RON SLEE

There’s an old saying – I’m sure you know it – that a salesman sells the first machine to a customer, and every machine that follows is sold by the parts and service departments. For parts and service, the machine is the customer. But how do we deal with each of these new opportunities? Let me present a short series of questions: Do we go to the customer at the time of delivery? Do we visit with the customer after delivery and talk about all of the programs and service that are available from the dealer? Do we explain the warranty program, what is covered and what is not? Do we talk about the maintenance programs that are available and sell one of these programs to the customer? Do we sell extended warranties? I am sure there are a lot of heads nodding yes. What I want to know is, why doesn’t every dealer do them for every sale of a piece of equipment? The usual answer I get is that we don’t have enough salesmen. I agree. Those of you who read these columns regularly know that I want each dealer to have an equal number of product support salesmen as they have equipment salesmen. But that doesn’t normally happen, does it? I find that both puzzling and troubling. The parts and service businesses are the foundation of a profitable dealership. The gross margins in parts and service are respectively three times and six times the gross margin of a machine. So again I wonder, why don’t we cover the market more completely than we do? I believe part of the answer lies in the fact that we give the

parts and service businesses within the dealership a pass on market penetration and market capture. We don’t know what the market share is for our parts business and our service business. Let me suggest to you, based on survey data published in AED’s Product Support Opportunities Handbook, that our market share in parts on the high side is 40 percent of the available labor market, and service on the high side is 30 percent. Note I am suggesting that is the high side of the market share. My belief is that 90 percent of the dealers have less than 15 percent market share in labor and maybe 25 percent in parts. The trouble is we can debate forever and no one can prove or disprove it. With all of the technology available to us today – machines with GPS and telematics connections to the dealer management systems, machine population systems, and customer relationship management – why don’t we know the potential business available from each and every customer? The truth is, we can make that calculation. So why don’t we? Is it because it is too much work? Is it because we really don’t want to know? I believe we are on the brink of a significant shift in the management of our businesses. Erik Brynjolfsson, the director of the MIT Center for Digital Business and a research associate at the National Bureau of Economic Research, suggests that we need to have a generational change in the leadership of business before the general purpose technologies truly penetrate the operation of organizations. He graphs productivity changes and suggests that the period from 1890-1940 is similar to the period

1960-2011. He suggests the coming transformation of business will be caused by mind, not matter; brain, not brawn; ideas, not things. From the perspective of product support selling today, we could track each machine all day of every day. For instance, we could determine the percentage of time that the machine idles. Is that an important piece of information? If you are looking at the life of components it sure is. If you are looking to calculate the potential business of each machine to the dealership it clearly is significant. It is working hours that determines parts and service consumption not idling hours. This is something that each dealership will have to get a hold of soon. I suggest to all of you that you look at your parts and service market with fresh eyes. That you focus on increased and improved market coverage. That you focus on increasing market share for both parts and service. That you work hard to eliminate customer defections. If you do that you might radically transform your businesses. It is no longer good enough, if ever it was, to continue to do what you have always done. 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.

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

Private Meetings in Suites

Industry-Specific Education CONDEX Trade Show

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View from the Hill

A Business Perspective on True Tax Reform Four simple pillars will JumpStart the U.S. economy. BY CONGRESSMAN ROGER WILLIAMS (R-TEXAS)

When I first decided to run for are organized as “flow through firms,” are currently allowed to deduct wages, Congress, I did it because I didn’t their profits pass through to the owners’ rent, taxes paid, transportation and think enough people were fighting for individual return. Under this plan, both other business expenses. But herein lies small businesses. As a business owner corporations and flow-through firms the problem: Businesses such as mine for more than 40 years, I’ve had the would face the same rate of tax on their purchase tangible goods that must be opportunity to experience what most income, a flat and globally-competislowly deducted or “depreciated” over businesses face every day – more regu- tive 20 percent. Cutting the corporate many years. That’s why my plan would lations, more bureaucracy, and more tax rate from 35 to 20 percent treats all make the so-called “bonus depreciataxes. Every day, Americans are asked businesses, big or small, the same. tion” permanent at a 100-percent to give more. level. Instead of creating That’s why we need true accounting controversies comprehensive tax reform, such as LIFO (which this and we need it now. Tax plan fully supports), invenreform will enable businesses tory should not be different to grow and expand, creating than any other business cost. more jobs and opportunity. If money is spent in a given Americans are looking for year, the cost should be certainty and direction, and deducted in that given year. with my plan we can truly Our high corporate tax Jumpstart America. On Sept. 5, Rep. Roger Williams (center with gold necktie) rates encourage far too many First, my plan cuts rates participated in a Dallas/Ft. Worth-area AED ImPACt event with companies to store their on capital by eliminating local equipment distributors, including AED’s Senior Vice earnings abroad instead of the Obamacare investment President Whit Perryman (front right). Please e-mail aeddc@ investing them in expansion surtax of 3.8 percent and aednet.org to learn more about AED’s ImPACt program. and employment at home. cutting the capital gains In 2005, companies were and dividends top rates to stimuI would also collapse individual rates allowed to repatriate foreign earnings late new investment. I’d then elimiinto two brackets, 30 percent and back to the U.S. at a lower rate, and nate the death tax – the most unfair 20 percent. This simplifies the code the result was staggering – over $300 tax we have in our country. According for both individuals and businesses. billion was brought back home. It’s to a study by the American Family Furthermore, for most Americans, the time to do this again – not just once, Business Institute, eliminating the payroll tax is a bigger burden than their but permanently. death tax would create 1.5 million jobs income tax liability. By cutting payroll These four pillars will help every in America. Instead of being burdened taxes for not only the employee but taxpayer in America – from the with this tax liability, which can destroy also the employer, both individuals employee to the employer, from Main family businesses, Americans currently and businesses will have more cash to Street to Wall Street. subject to this tax would be free to hire, expand, and buy more equipment. CONGRESSMAN ROGER WILLIAMS expand their businesses. Cutting payroll taxes would boost (R-TEXAS) is in his first term repreSecond, Jumpstart America employment – it’s that simple. addresses important business-related Another important part of Jumpstart senting Texas’ 25th congressional district. He serves on the House Transportation & tax provisions. Currently, American America helps alleviate punitive taxes Infrastructure Committee and the House companies face some of the highest on capital and job creators by moving marginal tax rates in the world, putting to a cash flow system of business taxa- Budget Committee. Prior to being elected to Congress, Williams owned and operated his them at a severe disadvantage in the tion. For the most part, this tax system family’s car dealership. global market. Since most businesses is already in place: business owners October 2014 | Construction Equipment Distribution | www.cedmag.com | 51