January 2018
CED
Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership
Blast From the Past AED Gears Up To Celebrate 100 Years
n Good Company Hvidtved Larsen's
Sewer Cleaning Tankers Are Sold Worldwide
n Canadian Concerns n A Closer Look
The Top Five Factors Impacting AED's Canadian Members
Learn More About AED Member e-Emphasys Technologies
Working together to move your business forward
WELLS FARGO EQUIPMENT FINANCE RETAIL FINANCE CAPITAL ASSET ACQUISITION INVENTORY & FLEET RENTAL FINANCE MANUFACTURER SUBSIDY PROGRAMS
In the construction business, having the right equipment is essential. When equipment is needed, your customers count on you. But they also count on getting a good deal. Providing the right financing options can not only help facilitate the purchase process, but also give you and your business a competitive advantage. At Wells Fargo Equipment Finance, we start by getting to know your business — the goals, challenges, and opportunities. Building on that knowledge, we use our experience and industry expertise to help guide you to the financial solutions that can help build your customer base and your business, today and over time. To learn more about how we can help you, visit wellsfargo.com/CED or call 1-866-726-4714. Visit us during the AED Summit on the 20th floor in suite #20046.
© Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries. Equipment financing transactions are provided in Canada by Wells Fargo Equipment Finance Company. Wells Fargo Equipment Finance Company is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company. The information contained herein is general in nature and not intended to provide you with specific advice or recommendations. Contact your attorney, accountant, tax or other professional advisor with regard to your individual situation. IHA-
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contents
CED Magazine | January 2018
vol. 84 no. 1
www.cedmag.com
>> FEATURES
40
Hvidtved Larsen Hvidtved Larsen has been in business for more than a century, remaining so in large part because those at its helm have looked forward. Today the Danish company develops and produces sewer cleaning tankers that are sold worldwide.
22
Blast From The Past
Associated Equipment Distributors will dive into the past to relive and bring to light major milestones in the Association’s history leading up to AED’s centennial celebration in January 2019.
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AED recently surveyed its Canadian members to develop baseline information about the impact heavy equipment distributors have on the Canadian economy and to find out what keeps them up at night.
e-Emphasys Technologies provides cuttingedge enterprise resource planning (ERP) software solutions to dealers and rental companies.
Canadian Concerns
A Closer Look
January 2018 | Construction Equipment Distribution | www.cedmag.com | 3
contents CED Magazine | January 2018
EDITOR'S DESK Sara Smith, Editor in Chief CED Magazine ssmith@aednet.org
vol. 84 no. 1
N
ew site, new style, same great content! I have spent many hours, days and weeks asking myself, what is CED Magazine and what do I want it to become tomorrow? So what is next for the publication? You’ve seen the revamp of CED Magazine, now look forward to something bigger and better. We will be launching a new website that will house CED Magazine. Subscribers will be able to utilize everything the publication has to offer; from current news, trending topics and featured stories before they are released. This platform provides a user-friendly experience, allowing individuals to search for specific information with instant feedback. AED is looking forward to unveiling this special project, so be sure to keep an eye out for the official launch date!
>> EDITORIAL Editor in Chief SARA SMITH ssmith@aednet.org Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com
>> WRITERS Paul Campbell Wheeler Machinery Company Christine Corelli Christine Corelli and Associates Stuart McCarthy & Raphael Brass Bluesky Strategy Group Inc. Brian Shanahan Shanahan Design Inc. Eric Stiles Sentry Insurance Lindsey Wreggelsworth Commercial Web Services
>> ADVERTISING Vice President JON CRUTHERS 800-388-0650 ext. 5127 jcruthers@aednet.org Production Manager MARTIN CABRAL 800-388-0650 ext. 5118 mcabral@aednet.org
>>INSIDE
16 >> Chairman's Corner
Former AED Chairman Paul Campbell discusses industry experiences.
New regional manager discusses new ideas for the new year.
Tackling the Technician Shortage
To Volvo Construction Equipment, an educated expert is the most valuable tool
Stone Equipment CO. offers customers a one-stop shop.
Uniting construction professionals along the entire value chain.
A wealth of product knowledge leads to success.
Here are some ways to lower your rate.
Nothing small about AED's inaugural small dealer event.
Learn how to lobby your members of Congress.
18 >> Regional Report
20 >> The AED Foundation Annual Campaign 21 >> Donor Profile
25 >> New Member Spotlight 28 >> INTERMAT
36 >> Journey to the Top
38 >> Credit Card Processing
44 >> Small Dealer Conference 46 >> Washington Fly-In
Since 1920 Official Publication of
650 E. Algonquin Road, Suite 305 Schaumburg, IL 60173 630-574-0650 fax 630-457-0132 4 | www.cedmag.com | Construction Equipment Distribution | January 2018
As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2018 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173 Phone: 630-574-0650. Periodicals postage at Schaumburg, Ill. 60173 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173.
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Booth #3513 COMFORTABLE. POWERFUL. TOUGH. Each machine is compatible with a wide range of attachments used in the skid steer loader industry. Because you put your machine through a lot each day, you need increased ROI, through lower cost per hour, increased productivity and increased operator safety - LiuGong skid steers are there for you. www.liugongna.com | (281-579-8882) | info@liugongna.com Š 2017 LiuGong Construction Machinery N. A., LLC Ad_template.indd 2
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business services your aed membership provides solutions and options AED’s membership services and benefits are designed to enhance and develop the profitability and continuity of construction equipment dealers by providing tools and resources.
aed legal call counsel AED’s call counsel is a FREE legal hotline for AED members provided by Kopon Airdo, LLC — AED’s general counsel. Take advantage of this member benefit today, call 312-506-4480 or visit www.koponairdo.com.
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aed hr help desk AED’s HR Help Desk allows AED members to get answers to simple questions or many employment-related issues free of charge. Call about any HR compliance or procedural issue, even sensitive personnel situations. Contact Karla Dobbeck at Kdobbeck@askhrt.com or (888) 412-8079.
1/14/2016 2:40:14 PM
>> FROM THE PRESIDENT BRIAN P. McGUIRE
Let AED Help You Turn 2018 Into Your Most Successful Business Year AED has some exciting events and tools to help our members strengthen their business and get the most out of their membership in 2018.
As we bid farewell to a great and successful 2017, we are eager for the new year ahead, and we hope you are, too. AED has some exciting events and tools to help our members strengthen their business and get the most out of their membership in 2018. Our Financial/HR Symposium in Napa, California, April 25 to 27, will challenge members to broaden their horizons. Hear about topics impacting the construction equipment industry and bring back tools to work with these issues. Topics will include adaptive leadership, talent management, collaboration methods, successful communication tactics, driving business results, and more. The 2017 Leadership Conference saw a record number of attendees. Join us in Louisville, Kentucky, for the 2018 conference. We look forward to gathering the rising talent in the industry at this event to help them develop new skills and techniques for managing and leading their teams. After a successful kickoff in 2017, we will hold our second annual Small Dealer Conference in 2018. This event will focus on growth strategies, maximizing departmental performance and best practices for dealerships. Keep an eye on aednet.org/aed-events for more information as it becomes available. New in 2018, AED will launch a Sales Manager Seminar in Chicago on November 15 and 16. Content will include how to be a highly effective coach, the
difference between a manager and a leader, the essential skills and mindset of sales management, creating a sales culture environment that produces results, identifying and developing effective sales people, and more. In case you can’t make it, The AED Foundation will add a sales certification to the Dealer Learning Center. Learn at your own pace through these sessions, and at the end you will be recognized for your knowledge. We will also launch a new mobile app, called AED360, where members will be able to access everything AED-related. Register for events, scroll through AED news, access CED Magazine, view our social media feeds and much more. CED Magazine has already gone through a huge revamp in the last few years, as many of you have noticed. Now you will be able to access the latest issues of the magazine, find current industry news and subscribe your employees to the magazine, all in one location. Watch for the launch of the new and improved CEDmag.com. We are pleased to provide you with many ways to leverage your AED membership and help your business grow. Keep an eye out for all the events coming your way, as well as the new additions we are making to the organization. We hope to see you become even more involved and engaged this year. We will make sure your time with us is time well spent.
BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at bmcguire@aednet.org. BRIAN P. MCGUIRE AED President & CEO
ROBERT K. HENDERSON AED Executive Vice President & COO
JASON K. BLAKE AED Senior Vice President & CFO
>> OFFICERS
>> AT-LARGE DIRECTORS
>> REGIONAL DIRECTORS
WES STOWERS Chairman Stowers Machinery Corp. DIANE BENCK Vice Chairman West Side Tractor Sales Co.
JAMES P. COWIN
MICHAEL LALONDE West Reg. Westrax Machinery, Inc. MATTHEW ROLAND Midwest Reg. Roland Machinery Co. TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC JOHN RIGGS IV South Central Reg. J A Riggs Tractor Co. BRAD STIMMEL Southeast Reg. ASC Construction Equipment KAREN ZAJICK Northeast Reg. Norris Sales Co. MICHAEL VAZQUEZ Southeast Reg. MECO MIAMI Inc. DAVID PRIMROSE Western Canada Reg. Finning Ltd.
MICHAEL D. BRENNAN Senior Vice President Bramco, LLC CRAIG DRURY Vice President Vermeer Canada Inc
Cowin Equipment Co., Inc. PAUL FARRELL Modern Group Ltd. GAYLE HUMPHRIES JCB of Georgia STEVE MEADOWS
RON BARLET Vice President Bejac Corporation
Berry Companies, Inc.
JOHN C. KIMBALL VP of Finance Kimball Equipment Company
Heavy Machines, Inc.
WHIT PERRYMAN Immediate Past Chairman Vermeer Texas-Louisiana DENNIS VANDER MOLEN Foundation Chairman Vermeer MidSouth Inc.
JAMES A. NELSON KENNETH E. TAYLOR Ohio CAT
January 2018 | Construction Equipment Distribution | www.cedmag.com | 7
>> AED INSIDER
AED Planning 2018's Annual Ottawa Briefing Event AED’s annual Ottawa Briefing has become a major event for equipment industry leaders wanting to learn more about how government programs affect equipment demand and dealer costs of doing business. The meeting is also an opportunity to build relationships with government officials and influence federal policy. The 2018 Ottawa Briefing event will take place from February 28 - March 1. The host hotel is the historic Fairmont Chateau Laurier, located a few steps from Parliament Hill. Stay tuned! AED is in the process of planning this exciting event. Register online today: bit.ly/2018ottawabriefing
Advocate, Inform, Impact at AED/EDA Washington Fly-In There’s too much at stake for your company and the industry not to attend the 2018 AED/EDA Washington Fly-In, March 20-22 – the equipment industry’s premier public policy event. You can make a difference. Times have changed. The business community has a receptive audience on Capitol Hill and within the administration. With infrastructure investment, workforce development, energy policy and regulatory reform at the top of the agenda in 2018, you can have a direct impact to push the industry’s priorities and ensure harmful initiatives are stifled. AED and EDA will have a jam-packed agenda to ensure your time in Washington isn’t wasted. We’ll get you up to speed on how to be an effective advocate on the issues important to your company. You’ll hear directly from senior lawmakers, administration officials, and Washington policy experts. We will even schedules meetings for you with members of Congress. All you need to do is show up and let your inner advocate show. And we promise, you’ll even have some fun!
Capitol Hill Meeting Scheduling Service
Do you want to attend the AED/EDA Washington Fly-In on March 20-22 in Washington, D.C. but don’t have time to schedule meetings with your lawmakers? Or have you always wanted to attend the Washington Fly-In, but didn’t bother because requesting meetings with your member of Congress was time-consuming and confusing? AED is pleased to announce an exclusive member benefit for Washington Fly-In attendees. The association’s Washington office will now schedule your Capitol Hill meetings for you. No more wasting time drafting emails and making phone calls. Just email AED’s Vice President of Government Affairs Daniel Fisher that you’d like to take advantage of this free AED member service for your Capitol Hill meetings. Register today at bit.ly/2018flyin 8 | www.cedmag.com | Construction Equipment Distribution | January 2018
Find us at booth 1612 at AED's 2018 Summit
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>> AED INSIDER
Member Spotlight
Upcoming Events Basic Rental Management Seminar
AED would like to thank one of our longtime supporters, Equipment Corporation of America, for reaching 75 years of membership!
March 15-16, 2018 | Chicago, IL This seminar is for attendees who are new to the rental department or whose company has a relatively small rental fleet (under 50 units). The focus of this seminar is for the attendees to understand the rapid evolution of the rental market, what are the drivers behind it and what it takes to compete successfully. Content includes: ▶ Understanding the difference between rent-to-sell and rent-to-rent and why your dealership most likely needs both ▶ Identifying what customers have come to expect and how to find your position in the competitive rental market ▶ Gaining a deeper understanding of the operational processes involved in a rental transaction ▶ Recognizing the profitability impact of a well-designed, efficiently operated rental fleet and how it can boost profits for your dealership
Basic Service Management Seminar
Birkey’s Construction Equipment Co. hosted Rep. John Shimkus and thanked him for his support of issues important to equipment dealers.
March 22-23, 2018 | Phoenix, AZ Are you new to a leadership role in your dealership’s service department? After learning how to assess your performance, do you want to learn practical tactics for improving not only your numbers, but your own personal performance as well? Then attend this 1.5-day program, which will cover the fundamental skills needed to effectively run your dealership’s service department. Attendees will develop personal action plans to take back to their dealerships. This course balances management strategy with down-to-earth tactics that you can implement in your dealership. Content includes: ▶ The role of a service manager ▶ Basics of finance for service managers ▶ Determining your departmental financial goals ▶ Understanding key performance indicators ▶ Assessing your departmental processes and procedures ▶ Scheduling tactics to minimize wasted time and maximize hours billed ▶ Becoming the leader of your service department Visit bit.ly/aedevents for more information.
Ritchie Bros. CEO, Ravi K. Saligram, visits AED board member Michael Vazquez and the MECO Miami team. 10 | www.cedmag.com | Construction Equipment Distribution | January 2018
>> INDUSTRY NEWS
Deere & Company Completes Acquisition of the Wirtgen Group
Deere & Company (NYSE: DE) has completed its acquisition of the Wirtgen Group, the worldwide leading manufacturer of road construction equipment. In June, Deere announced a definitive agreement to purchase the international privately held company. The Wirtgen Group has a global footprint with approximately 8,200 employees and sells products in more than 100 countries through a large network of company-owned and independent dealers. Wirtgen’s product portfolio is complementary to Deere’s existing construction equipment offering and establishes Deere as the industry leader in global road construction. The Wirtgen Group has premium brands across the entire road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation. Allen said the acquisition aligns with Deere’s long-term strategy to expand in both agriculture and construction – the company’s two global growth businesses.
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>> INDUSTRY NEWS Dobbs Management Acquires Seven John Deere Construction & Forestry Stores from Nortrax Dobbs Management Service LLC, a family investment office based in Memphis, Tennessee, has acquired seven John Deere Construction and Forestry stores serving the South Florida market. The purchase, through DJD Equipment Holdings LLC, included full-service stores in Lutz (Tampa), Orlando, West Palm Beach, Miami and Ft. Myers, Florida, in addition to parts-only stores in Pompano and Riverview, Florida. The business will operate as Dobbs Equipment and will keep its business headquarters in Tampa. “We believe this sale represents a key strategic distribution move for John Deere and Nortrax,” said Nortrax President and CEO Tim J. Murphy. “The Dobbs family has a phenomenal track record, going back to 1920, of investing and growing business for the long term. They are hiring all of the Nortrax Florida employees, which will retain the expertise and, more importantly, the relationships with the Florida customers. They bring a proven track record, great financial stability and a long-term commitment to grow and support the John Deere brand in the Florida market. I believe this is an exciting move for the Dobbs family, for John Deere, for the new Dobbs employees and most of all for our customers.” Edward Dobbs, chairman, expressed enthusiasm about the acquisition: “We are excited to partner with John Deere as a dealer in the Florida market. Our family has decades of experience in successfully representing top-tier manufacturers. We believe that John Deere represents the highest quality products and customer support in the market; we look forward to a strong and successful long-term relationship with Deere & Co."
Atlas Copco To Acquire U.s. Mining Equipment Distributor Atlas Copco, a leading provider of sustainable productivity solutions, has agreed to acquire the assets of Cate Drilling Solutions LLC, a U.S. company that distributes and services Atlas Copco drilling equipment and components. Cate Drilling Solutions is based in Salt Lake City, Utah, and is active in the states of Utah, Nevada, Wyoming and Idaho. The company is an Atlas Copco full service distributor for surface drilling products. Cate Drilling Solutions also has a state-ofthe-art remanufacturing shop that further serves customers’ needs. It has 35 employees. “Having the strong team at Cate Drilling Solutions as part of our group will enable us to get closer to and serve even better our mining customers in the central United States,” said Helena Hedblom, president of Atlas Copco’s Mining and Rock Excavation
Technique business area. The acquisition is expected to be completed in the first quarter of 2018. The purchase price is not materially significant to Atlas Copco’s market capitalization and was not disclosed. Cate Drilling Solutions will be part of the Mining and Rock Excavation Service division in Epiroc, the wholly-owned subsidiary of Atlas Copco that will be listed on the stock exchange in 2018 pending shareholders’ approval.
Accruit LLC Announces Purchase of PaySAFE Escrow Inc. Accruit LLC, a financial technology company specializing in escrow and 1031 exchange services, announced that they have signed an agreement to acquire the assets of PaySAFE Escrow Inc. including its PaySAFE® web-based escrow technology (http://www.PaySAFEescrow.com) that gives buyers and sellers the ability to complete online purchases with financial protection and proper documentation. The acquisition of PaySAFE Escrow Inc.’s assets aligns with Accruit’s goal of expanding its financial technology services. Accruit will invest heavily in the marketing and further development of the PaySAFE® online escrow and auction settlement services pioneered by PaySAFE Escrow Inc. “The increasing frequency of online transactions worldwide opens a significant opportunity for Accruit to meet this growing need and continue to serve our existing customers as a trusted intermediary,” said Accruit CEO Brent Abrahm. “PaySAFE Escrow Inc.’s PaySAFE® online escrow platform is positioned as a leader in safe and secure settlement services
12 | www.cedmag.com | Construction Equipment Distribution | January 2018
by partnering with some of the largest marketplaces across many industries.” PaySAFE Escrow Inc. currently serves online auctions, insurance settlements, asset acquisitions and collectibles markets. Accruit intends to continue the evolution of the current user interface, develop mobile applications and enhance the API functionality for integration with additional online marketplaces. Matthew Medlock, PaySAFE Escrow Inc.’s president and founder, will join Accruit as a vice president of business development and will lead the growth of the online escrow platform and API integration efforts. Accruit LLC is a financial technology company specializing in escrow and 1031 like-kind exchange services. Accruit facilitates all types of commercial and individual transactions by serving as a trusted independent escrow agent and qualified intermediary.
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>> PRODUCT PREVIEW New John Deere L-Series Compact Wheel Loaders Tackle Toughest Job Site Tasks Built for construction contractors, landscapers and rental center operators, the new John Deere 204L and 304L compact wheel loaders deliver higher productivity, increased uptime and lower daily operating costs. An evolution of the 204K and 304K models, the L-series models are built for tasks that require peak productivity in small spaces and over rough terrain. “We’re packing more productivity and efficiency into the wheel loader with the release of our L-Series models,” said Drew Miller, product marketing manager, compact wheel loaders, John Deere Construction & Forestry. “Perfect for year-round use, these workhorses were designed to take on tough jobs from warmer summer months to snowy winter conditions, while enabling the use of a versatile attachments portfolio when you need them.” The 62 horsepower (46 kW) 204L and 67 horsepower (50 kW) 304L models are equipped with Final Tier 4 Yanmar engines and fuel-efficient hydrostatic transmissions to keep noise to a minimum while still providing the productivity needed on the job. An optional ride control is now available, which reduces material spillage and makes for a smoother ride over rough and uneven terrain. Automatically activated front and rear differential locks provide increased traction in harsh conditions. The machine height of the 204L is also configurable to less than 8 feet, ideal for jobs with overhead space constraints. The L-Series compact wheel loaders are equipped with features to minimize maintenance. Hydraulically released, selfadjusting park and service brakes, groundlevel maintenance point accessibility and excellent cooler access provide safer and easier means of machine upkeep. The new models also offer extended service intervals for engine oil/filter, final drives oil and hydraulic oil.
Talbert 35-Ton Close-Couple Lowbed Trailer: Dependability for Day-to-Day Loads
Talbert Manufacturing, a North American leader in specialized heavy-haul solutions, gives contractors an efficient and safe way to haul day-to-day loads with its 35CC-HRG lowbed trailer. The lowboy unit is rated at 70,000 pounds overall and 70,000 pounds within a 12-foot load base. It also features Talbert’s removable hydraulic gooseneck for fast and easy equipment loading and unloading. “Equipment is getting bigger, wider, taller and heavier,” said Troy Geisler, Talbert Manufacturing vice president of sales and marketing. “We’ve built a reputation on accommodating that need, but contractors also have smaller equipment they need to safely transport to and from jobsites every day. This is why we also offer dependable trailers designed specifically for that purpose.” Talbert offers the 35CC-HRG with optional features such as fixed or platform goosenecks and various front and rear ramps, as well as multiple swing radiuses, deck lengths and widths. The trailer also can be equipped with a beavertail and ramp so users can drive equipment over the rear of the trailer rather than detaching the unit’s gooseneck. This allows for fast equipment loading and unloading in confined areas. “Our customers require a great deal of versatility. Each day or week could consist of moving a variety of equipment,” Geisler said. “This is why we take the time to listen and design our trailers to provide the most flexibility, tailoring each unit to the specific needs of the customer.”
14 | www.cedmag.com | Construction Equipment Distribution | January 2018
The 35CC-HRG is part of Talbert’s CloseCouple Lowbed Series. The trailer’s two axles are close-coupled and can be designed to accept an optional pin-on axle for loads requiring three axles in a row. The overall length of the 35CC-HRG is 43 feet, 9 inches, which includes a 24-foot-long deck that is 8 feet, 6 inches wide, and a 9-foot 9-inch rear bridge section. Swinging outriggers provide 12 inches of additional width on each side of the deck to accommodate oversized equipment. Contractors can also remove the outriggers to minimize weight and for easy maintenance. Like all Talbert trailers, the 35-ton CC-HRG is rated in half the deck length to safely meet concentrated load requirements as high as 70,000 pounds. Talbert designed the 35CC-HRG with an 84inch swing radius and a non-ground-bearing hydraulic gooseneck. The gooseneck features four hydraulic cylinders that are parallel to the ground, rather than two vertically positioned cylinders. This eliminates the risk of the trailer sinking into soft ground as equipment is loaded. Also, because the cylinders are horizontally placed, they are easier to access for maintenance and last longer due to their low-pressure hydraulic system. Contractors can use the 35CC-HRG to haul a variety of equipment. The trailer’s recessed cross members in the rear bridge allow for easy positioning of an excavator boom. The deck flooring is 1.5-inch Apitong, which provides exceptional strength for long-term durability under heavy loads.
When the other contractors saw the power of that excavator, their jaws dropped to the floor. Powerful productivity.
That’s our Ex Factor. – Glenn Korner, owner, Midstate Site Development
Midstate Site Development owner Glenn Korner says having Volvo on the job won them a school job by allowing them to propose a slide rail system. It required a machine powerful enough to drive the slide rail system into the ground. It saved the customer $250,000 — and got Midstate in, out, and on to the next job in just two months. Find tips to get the most from your excavator at volvoce.com/ExFactor.
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>> CHAIRMAN’S CORNER
PAUL CAMPBELL WHEELER MACHINERY COMPANY
Former AED Chairman Paul Campbell Discusses Industry Experiences and Benefits of AED Involvement My favorite thing about being AED chairman was the regular interaction with really great people.
I’ve worked in the construction equipment industry for 35 years. I started mowing lawns and pulling weeds at our company – Wheeler Machinery Company – while in high school in 1982. Wheeler Machinery Company is a Salt Lake City Caterpillar dealership with a long history. Founded in 1926 by Herbert Landes and Jesse Wheeler as the Landes Tractor & Equipment Company, we had the distinction of being the very first Caterpillar dealership in the Intermountain West. My father, Lyle Campbell, joined Wheeler Machinery Company in 1956. He and Don Wheeler assumed leadership of the company in 1971 and ownership control in 1981. I started doing odd jobs there the following year. After college, I had decided to attend law school when my dad suggested I work the summer at Wheeler. I started working full-time in marketing, eventually moving to sales and, finally, to management. That summer changed everything, and the rest is history. My two older brothers and I purchased the dealership from Don Wheeler and my dad in 1996. My brother Rob and I run the company today as president and executive vice president, respectively, and are in the process of transitioning the business to the third generation. Wheeler Machinery Company sells, rents and services more than 400 Caterpillar-brand machines and power systems. We also offer sales, rentals and service for a variety of Trail King, Multiquip, Valew, Pioneer, Sullair, Metso and Trimble products and equipment. We are a dealer covering the state of Utah and parts of Wyoming and Nevada, and we serve the mining, construction and energy markets, primarily. Our focus is improving customer production while lowering their operating costs. This is accomplished through a tremendous investment in customer support capabilities and the finest experts in the industry. The company’s headquarters sits on 80 acres in South Salt Lake City. The state-of-the-art facility is among the largest and most advanced equipment dealerships in the nation. Wheeler Machinery Company also has locations in Ogden, Lindon, Logan, Vernal, Salina, Cedar City, Hurricane and Huntington, Utah, as well as a branch in Ely, Nevada.
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AED has been a part of our dealership from the very beginning, and we have been involved in all aspects of AED.
Safety is one of our company’s guiding principles, and our fierce commitment to providing a safe workplace is why we’re the number one Caterpillar dealer in North America for safety. AED has been a part of our dealership from the very beginning, and we have been involved in all aspects of AED. My father was heavily involved in AED and was instrumental in getting me started on my own involvement with the organization. I first attended a Washington Fly-In with him shortly after joining Wheeler Machinery Company and was very impressed with everything the Association was doing. After that, I began regularly attending the various conventions and fly-ins. From the Washington Fly-In to The AED Foundation and executive education, AED has been an integral part of our growth and history. After being actively involved with AED for many years, I was asked to join the executive committee by Walter Berry, filling a spot that had become available. I served as chairman of the AED board of directors in 2008. I spent a few years on the board prior to that invitation and gained tremendous respect for the individuals involved in leadership positions in Oak Brook and around the country. I was also previously a member of AED’s Government Affairs Committee, worked on AED’s Future Leaders Task Force and was an active member of AED of Utah, even serving as that organization’s president for a time. My favorite thing about being AED chairman was the regular interaction with really great people. I was able to visit Canadian dealers and meet terrific people from all across the United States. I miss those interactions and look forward to renewing friendships at conventions and meetings. To learn more about Wheeler Machinery Company, visit wheelercat.com. Wheeler Machinery Company is also on Facebook, Twitter, YouTube, Google+, Instagram and Pinterest.
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Southeast Dealers: New Regional Manager, New Ideas for the New Year As one of several new faces at Associated Equipment Distributors (AED), I want to introduce myself and provide you with my goals for helping you, the dealer, improve your bottom line. I have been AED’s new Southeast regional manager for a little over three months now, and what a busy three months they have been. I have visited dealers in Philadelphia, Atlanta, and Washington, D.C., as well as in Nashville at AED's inaugural Small Dealer Conference. After spending much of my time over the past few weeks preparing for the 2018 AED Summit and Construction Dealer Expo (CONDEX), I am happy to be starting off the new
REGIONAL REPORT
Sean Fitzgerrel
year in Las Vegas with many of you who will be attending this event. I am also looking forward to spending more time at O’Hare International Airport, especially this winter as I begin my journey south to meet distributors in my region. After graduating from the University of Illinois in 2015, I served on the legislative staff of the Illinois House Minority Leader, where my area of focus was elementary and secondary education. After serving there for a year, I accepted an offer to join a small contractual government relations firm where I advocated on behalf of a diverse clientele in front of Illinois’ executive and legislative branches. As a result of these experiences, I developed a passion for working with and on behalf of members of associations, which led me to my current position with AED. Both AED and The AED Foundation offer many educational programs and tools that are often underutilized or not used at all by members. As a regional manager, my task is to ensure that you as a member are taking advantage of the tools offered by both AED and The AED Foundation, to improve the bottom line of your dealership. I am also here to listen to you regarding how AED can create programs that will better serve your company. Most AED members are aware of the business benchmarking reports, self-study courses, webinars, and live seminars offered
throughout the year by AED and The AED Foundation. However, the national workforce shortage of diesel-equipment technicians has been the common problem in every dealership I have visited thus far in my travels, and it has come to my attention that the work being done by The AED Foundation on addressing the workforce shortage is being overlooked. In 2015, The AED Foundation commissioned a report with the College of William & Mary to assess the skills gap – its causes and possible solutions. The report concluded that the U.S. heavy equipment distribution industry forfeits at least $2.4 billion dollars every year because of dealers’ inability to find and retain technically skilled workers. This figure represents an estimated nine percent of earning forgone by members of AED. As a result of the report, The AED Foundation has stepped up their efforts to resolve the workforce crisis. The Foundation created the publication “Standards for Construction Equipment Technology” to ensure that postsecondary institutions prepare students with the knowledge and skills they need to begin successful careers as equipment service technicians. These standards are regularly reviewed by industry professionals and updated by The AED Foundation’s Technical Training Committee. The Foundation also offers a Technical Assessment program that serves as an excellent tool to evaluate the technical knowledge of pre-hire job applicants and currently employed technicians. This assessment tool was developed by a task force of industry experts, equipment dealers and technical colleges. In my short time with AED, I have seen the emphasis The AED Foundation has put on ensuring that your techs are ready to start work on day one. The Foundation is enabling the community colleges and technical schools that produce your technicians to provide an education that focuses on more complex and sophisticated skills and knowledge sets, both technical and academic, which are required by today’s diesel-equipment technicians. During the upcoming year, I am committed to working with dealers in the Southeast to hold a career day specific to the construction equipment industry, modeled after the successful event held in Salt Lake City by AED’s Senior Regional Manager Phil Riggs. A light meal will be featured, and dealers will be able to bring equipment and set up their own tents. This will provide a perfect opportunity to get out in front of students and potential employees. I challenge you to contact your regional manager to discuss ways you can make an impact and help raise money for The AED Foundation to advance their efforts on the nationally recognized workforce shortage.
SEAN FITZGERREL is AED's Southeastern Regional Manager. He can be reached at 630-468-5130 or sfitzgerrel@aednet.org. 18 | www.cedmag.com | Construction Equipment Distribution | January 2018
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The AED Foundation’s 2018 Annual Campaign:
Tackling the Technician Shortage
By Whit Perryman 2018 AED Foundation Chairman The AED Foundation’s 2018 Annual Campaign is underway and we are counting on you. With your contribution, The AED Foundation will be able to continue Tackling the Technician Shortage and provide even more learning opportunities to improve the skills of your employees and increase the success of your dealership. Currently, over 700 diesel-equipment technicians enter the workforce annually, graduating from 42 programs at 32 schools across North America that are accredited by The AED Foundation. With your help, by the end of 2020, we will have over 50 AED Accredited and Recognized programs at over 40 colleges and high schools. The AED Foundation has also launched a new Technician Certification Program, which will recognize and reward heavy equipment technicians for their expertise and provide dealers with an objective way to measure their technicians’ aptitude and knowledge. Please join me in supporting The AED Foundation’s 2018 Annual Campaign by visiting bit.ly/2018aedfcampaign (case sensitive) to contribute online. Your tax-deductible donation will allow The AED Foundation to continue serving you in
2018 and for years to come. To make a contribution, please visit bit.ly/2018aedfcampaign or contact Marty McCormack at 630-468-5113 or mmccormack@aednet.org. When you invest in The AED Foundation’s Annual Campaign, you are supporting the goals of improving the quality and success of your dealership. The AED Foundation is actively addressing the serious shortage of skilled professionals in the construction equipment industry in North America by expanding its community-based, school-to-work school partnership strategy. This strategy emphasizes dealers and technical schools working together to meet mutual needs. Check out the new investment incentives that come with your contribution to the 2018 Annual Campaign:
Bronze investors will receive: Access to all recorded webinars Investor’s name and company published in AED’s monthly publication, CED Magazine Listed as an investor at www.aedfoundation.org Name recognition on large displays at AED’s 2019 Summit Silver investors will receive: All bronze level benefits plus Access to all recorded and live webinars in 2018 Gold investors will receive: All bronze and silver benefits plus Access to AED President and CEO Brian P. McGuire’s exclusive VIP reception at Summit on Wednesday, January 17 in the President’s Villa Platinum investors will receive: All bronze, silver and gold benefits plus Your company’s name and logo displayed on your AED Summit hospitality suite and/or CONDEX booth Preferred seating and/or reserved table at AED events Platinum Plus investors will receive: All bronze, silver, gold and platinum benefits plus Two complimentary tickets to The AED Foundation Gala during the 2019 Summit Industry Champion investors will receive: All bronze, silver, gold, platinum and platinum plus benefits plus Four complimentary tickets to The AED Foundation Gala during the 2019 Summit To find out what your contribution amount for these levels would be, please visit bit.ly/2018aedfcampaign. Contributions to the AED Foundation Annual Campaign are tax deductible to the extent of the law. The AED Foundation is a 501(c)(3) educational foundation. 20 | www.cedmag.com | Construction Equipment Distribution | January 2018
▶ THE AED FOUNDATION DONOR PROFILE
To Volvo Construction Equipment, an educated expert is the
MOST VALUABLE TOOL By Heidi Bitsoli The technician training opportunities that The AED Foundation works to develop is one of the most valuable resources it offers, according to Volvo Construction Equipment. The Sweden-based manufacturer of articulated haulers, wheel loaders, excavation equipment, road development machines and compact construction equipment has a global footprint and is a one-stop shopping experience of sorts, as it provides servicing, financing, used and new equipment, rental options and more. “Our single biggest challenge is the qualified technician labor shortage, which means (it’s a serious challenge to) the industry overall,” Kenneth Silverman explains. He is the vice president of customer support for the Region Americas division, based in Shippensburg, Pennsylvania (though Volvo Construction Equipment has a presence in all 50 states). He cites a wish common among dealers. Ask just about anyone in the industry and they’ll freely admit, if they could find a dozen qualified technicians they’d hire them on the spot. The need is that great. “It’s not one of the most glamorous industries. It’s handson; you work in the elements. It’s even more reason to invest resources to develop educational programs. It’s the single biggest area of value in The AED Foundation.” The Foundation most heavily focuses on tackling the technician shortage. It works to accredit postsecondary construction equipment technology programs and offers job training and continuing education options. It also funds research to provide evidence about the value of education and workforce development programs as well as to share that information with educators, the media, and other stakeholders. The Foundation’s strategy is to establish standards, connect educators and dealers, implement recruitment options, educate qualified students, and, in turn, help the industry overall via increased productivity. There’s a true need, too, as the technician shortage is currently costing the equipment distribution industry more than $2.4 billion in potential revenue. As a result, The AED Foundation is actively working to develop college programs and self-study, webinar and seminar options so technicians, managers and others in the industry can further their learning. By the end of 2017 The AED Foundation had 46 accredited colleges at 36 schools nationwide, and by the end of 2020 The Foundation will have more than 60 AED-accredited and
Your donation fuels the work that allows The AED Foundation to develop a dealer model for success. The future of dealerships depend on how we come together to build our industry's workforce. Thank you, Volvo Construction Equipment, for investing in the future of our industry! To contribute to The AED Foundation annual campaign, visit bit.ly/2017aedfcampaign. recognized programs at more than 50 colleges and high schools. “My job is to be sure to engage with other dealerships to use those resources,” Silverman says. Since knowledge is power and can only help the industry, “I encourage all of our dealers to become active supporters of The AED Foundation by contributing to their annual campaign and utilizing their educational resources available.” Volvo Construction is a strong supporter of The AED Foundation. In addition to to participating on the board of directors, Volvo, contributes to the annual campaign, serves on the 2018 Gala host committee, donates to the live auction, and purchases gala tickets. Personally, Silverman has been involved with The AED Foundation for about the last five years, but Volvo’s membership long predates his time with the company. “We support The AED Foundation because of the education it offers to dealers,” Silverman explains. “Dealers are required to have a certain amount of training each year; we are tied to The AED Foundation training. We try to encourage dealers to use those resources. The AED Foundation educational resources are comprehensive and current; it’s an advantage for dealers.”
January 2018 | Construction Equipment Distribution | www.cedmag.com | 21
Blast From the Past: The Journey to AED’s
100-YEAR
ANNIVERSARY CELEBRATION
22 | www.cedmag.com | Construction Equipment Distribution | January 2018
By Megan Mattingly-Arthur stablished in 1919, Associated Equipment Distributors (AED) will dive into the past to relive and bring to light major milestones in the Association’s history, that will lead to AED’s centennial celebration in January 2019. Both the world and the Association have evolved in the past 100 years, but, according to AED’s Executive Vice President and COO Robert K. Henderson, some things never change – like the Association’s commitment to its members. “There have unquestionably been technological advances since the Association’s founding, when things were horse-drawn or run with belts,” Henderson said. “Now our industry has the most modern and technologically advanced equipment in the world. There are certain factors that seem to be present no matter what time period you’re in, such as economic decline, recessions or industry consolidation. Since its founding, AED has always worked hard to keep up with what’s going on in the industry and to match the Association’s programs and services to the needs of its members. That’s never changed, regardless of the time period.” AED has had a significant impact on the construction and mining equipment industry through the years, working closely with both equipment manufacturers and distributors to facilitate a distribution channel that benefits members on both ends of the spectrum. “Manufacturers don’t distribute, and distributors don’t manufacture, so this
E
distribution channel in North America is a partnership that AED has locked in and helped facilitate,” said Henderson. “AED brings manufacturers and distributors together to efficiently and productively push products to market. We have a saying around here: Successful distributors make for more profitable manufacturers. We definitely believe that. It’s a team effort and always has been.” Arguably, one of AED’s greatest achievements is The AED Foundation, which was established in 1991 to address the professional education and workforce development needs of the heavy equipment industry. The Foundation divides its focus between workforce development, technical college accreditation and industry research, with a goal of helping members overcome challenges such as a $2.4 billion opportunity due to the skilled technician shortage, and an era of globalization in which rentals and online sales are surpassing traditional brick-and-mortar operations as the preferred mode of doing business. The AED Foundation is in its 26th year, and Henderson, who serves as The
AED Foundation’s president, has been there since the beginning. “One of the main things that The Foundation does is recruit young professionals for careers in construction equipment distribution,” he said. “We don’t think everyone needs to go to a four-year educational institution – nor is it usually profitable for them to do so – so we encourage young people to complete twoyear programs at technical colleges that The Foundation has accredited. We set the standard, so that when folks graduate from one of our accredited programs, potential employers know that these graduates have what it takes to do the job.” To that end, The AED Foundation launched its Technician Certification Program in late 2017. The first of its kind for the construction equipment industry, the program includes a comprehensive 160-question technical assessment that covers core standards for diesel engines; electric and electronics; hydraulics and hydrostatics; power trains; air conditioning and heating; and safety and administration. Through its government affairs office,
AED is also encouraging its membership to lobby their members of Congress on important issues like tax reform and infrastructure improvements. “We’ve made a huge effort to increase our presence on Capitol Hill,” Henderson said. “If our members aren’t out there talking to their representatives and getting their agenda out there, then the members of Congress do not know what they can do to help our industry.” With nearly 100 accomplishment-packed years behind it, AED is gearing up for another 100 years of success. “Even though the basics never change, there are always new ideas and new things to bring forward,” said Henderson. “One thing’s for certain: AED won’t be standing still. There’s a new capital campaign on the way, several new schools gaining accreditation, and we’re updating and renewing many of our offerings. There’s a lot to look forward to and we’re very excited about what the future holds.” To learn more about AED’s mission, programs and services, email info@AEDnet.org or visit www.aednet.org.
January 2018 | Construction Equipment Distribution | www.cedmag.com | 23
24 | www.cedmag.com | Construction Equipment Distribution | January 2018
>> NEW AED MEMBER
New AED Member
Stone Equipment Co. Offers Customers a One-Stop Shop From Finance to Delivery
By Megan Mattingly-Arthur fter nearly 20 years of working in the heavy equipment industry, Doug Stone did what some only dream of: He quit his job and became his own boss, founding Stone Equipment Company in Montgomery, Alabama. “I founded Stone Equipment Co. in 2010,” Stone said. “I had spent 18 years in the heavy equipment business and had the desire to start my own company. We opened with the intent to rent and sell quality used construction equipment, but in 2013 we made the change and became primarily an aggregate, recycling and demolition equipment company.” The change in focus appears to have been advantageous. Stone Equipment Co. now serves customers throughout Alabama, Georgia, Mississippi, Tennessee and Florida. “Right now we have two locations,” Stone said. “Our main location is in Montgomery, Alabama, and we have a second location in Villa Rica, Georgia. We are also working toward a January 2018 grand opening of a third location in Nashville, Tennessee.” Just what can customers expect to find when visiting these locations? “Stone Equipment Co. provides sales, service, parts and rentals for the complete line of KPI-JCI and Astec Mobile Screens – including the track, portable and stationary equipment – at our locations in Alabama, Georgia and Tennessee. We are also the Breaker Technology dealer for those areas as well. And, at our locations in Georgia and Tennessee, we offer Doppstadt products.” Stone Equipment sets itself apart from the competition by putting values like hard work, honesty and excellent customer service into action, and by serving as a one-stop shop that offers its customers complete solutions to specialized projects. The company is also dedicated to bringing their customers whatever they need – whether it’s equipment or parts, they’ll bring it right to the job site. “We are one of a very few who offer a complete solution all from one source,” Stone said. “For example, we can offer a complete aggregate spread from one factory and can offer it in portable, trackmounted or stationary models. And with our Doppstadt product
A
offering we can do the same in the organic side of recycling and construction. We are also a true rental company and we will travel all over the Southeast to help our customers with these specialized projects.” Stone Equipment Co.’s hard work has not gone unnoticed. The company recently received the 2017 Sales Excellence award from KPI-JCI for material handling. Of course, running a heavy equipment business is hard work and Stone doesn’t do it all for the awards or accolades. His favorite thing about serving as Stone Equipment Co.’s president and founder is being able to put together a stellar team: “I really like the idea of building a team and the interaction we have with each other, and then watching that team get better and better each day,” he said. Stone Equipment Co. recently joined AED and they are looking forward to taking advantage of member benefits such as networking events and education courses. “We joined AED because we were looking for opportunities to be in contact with other dealers and manufacturers, so we can make sure we’re doing things the correct way and maybe learn something as well. I am really big on networking! Having more networking opportunities is a huge reason why we joined, but we’re also looking forward to taking advantage of educational courses.” For more information on Stone Equipment Co.’s products and services, call 844-786-6373, email info@stoneequipmentco.com or visit www.stoneequipmentco.com. January 2018 | Construction Equipment Distribution | www.cedmag.com | 25
Canada: Clock Is Ticking on Major Liberal Government Commitments By Stuart McCarthy and Raphael Brass he halfway mark of the Liberal government’s first term in office was met with mixed reviews as infrastructure investments rolled out at anemic rates and the bulk of funding budgeted to spur innovation was left unspent. While the process to get money out the door has been painfully slow, there is reason for optimism that the government will deliver, with an election fast approaching in the fall of 2019. The government doubled down on this optimism by launching an online “Mandate Letter Tracker” so Canadians can monitor the status of all commitments found in Prime Minister Justin Trudeau’s mandate letters to ministers. Clearly there is much still to be achieved. Here are a few of the categories: ▶ Jobs and Innovation: 12 priorities - one delivered, nine in progress. ▶ Sustainable infrastructure: 13 priorities none delivered, 12 in progress. ▶ Export and investment: 20 priorities none delivered, all in progress. Let’s take a deeper look at some of the
T
MORE CANADA NEWS AED surveys Canadian members to determine their top five concerns: Page 42
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initiatives in these priority areas. The federal government divided its proposed infrastructure program into three main categories – public transit, green infrastructure and social infrastructure – promising the largest amount of infrastructure spending in Canadian history. The Liberals’ first budget in March 2016 was intended to show that they are serious, and earmarked $125 billion to be spent over 10 years. Nevertheless, bureaucratic red tape and evolving priorities have delayed this spending for potentially years to come. In the 2016-2107 fiscal year, the government failed to spend $2.17 billion, about 40 percent of the $5.3 billion in funding allocated for distribution. Of the $3.43 billion that did roll out, a large portion was spent on supporting transit infrastructure projects across the country. This included funding for a host of projects in cities and provinces, such as new and expanded subway lines in Toronto and Ottawa’s light rail. In November 2017 the government launched the social infrastructure envelope
by announcing the National Housing Strategy. If carried out according to plan, $40 billion dollars will be invested over 10 years to build 60,000 new housing units and refurbish 240,000 existing low-income units. While some of this money will begin to roll out in April 2018, the lion’s share will only come post-2021, and only if there is provincial and private sector buy-in. The devil is in the details, as the federal government’s contribution is $15.9 billion with the balance expected from provincial government and municipal government contributions. Nevertheless, by most accounts this is an attainable goal that will make a difference in the lives of low-income Canadians across the country. Spending to support innovation in Canada is puttering along after a bit of a reset. First, the Minister of Innovation, Science and Economic Development announced $2 billion in funding over three years to help postsecondary institutions build new academic infrastructure. Second, the government launched consultations in 2016 on its Innovation Agenda. Following the consultations, the government launched the Strategic Innovation Fund (SIF), which consolidated four existing innovation funding programs and added additional
The federal government divided its proposed infrastructure program into three main categories – public transit, green infrastructure and social infrastructure – promising the largest amount of infrastructure spending in Canadian history. funding, for a total of $1.26 billion over five years. A new application process expanded eligibility, and more than 300 applications have been submitted to date. Applications can still be submitted. The first funding approvals are expected this year. The government also created the $1.26 billion Innovation Supercluster Initiative with the goal of creating five Supercluster hubs across Canada. These hubs, like those in other countries, are expected to cluster Canada’s most innovative ideas and spur economic growth and competitiveness of Canadian companies.
The Innovation Supercluster Initiative utilizes the $800 million of innovation funding earmarked by the government shortly after the 2015 election and repurposes $150 million in green infrastructure and public transit funding allocations in the 2016 budget. These funds will be invested into Canadian companies between 2017 and 2022, matched by private sector money. This first-of-its-kind initiative in Canada attracted more than 50 applications representing more than 1,000 businesses and 350 research institutions, colleges and universities and government agencies. Of these, nine proposals have been shortlisted, and the five finalists will be announced in March 2018. Finalists include advanced mining, sustainable offshore oil and gas, and advanced manufacturing proposals. With less than two years to go until the next election in October 2019, the government needs to show Canadians that they can deliver on their promises and move money out the door with results. This is compounded by the spending timelines which see vast amounts of the funding flowing after the election. The Liberal government is gambling that it can achieve enough checkmarks in the “delivered” column to earn a second mandate to continue its vision of growth through innovation.
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INTERMAT FIGURES 1,500 exhibitors, including 70 percent from outside France 183,000 visitors, including 35 percent from outside France 40 countries represented 167 visiting countries, including 52 in Africa and the Middle East 100+ new products presented 1 in 2 visitors works for a construction contractor
UNITING CONSTRUCTION PROFESSIONALS ALONG THE ENTIRE VALUE CHAIN In a global society undergoing major change, and considering the increasingly pressing requirements for buildings and infrastructure, a wide and varied range of projects is emerging in France and around the world, offering an unprecedented springboard for creativity and inventiveness. As a leading international event in the construction and infrastructure calendar, the vocation of INTERMAT Paris is to combine all the ingredients of efficiency, but also all the sources of innovation and inspiration, to serve the projects of the future. With its strong position in the EMEA zone (Europe, Middle East and Africa), this event has over the years become a unique opportunity for profitable meetings between all international construction market figures. To address current and future challenges, the upcoming edition, held from April 23 to 28 in Paris, will resolutely fly the flag of renewal, with new perspectives on French and high-potential and developing markets, a new sector organization attuned to supply and demand, a new economic Observatory for the construction sector for the years 2025 to 2030, and new fully-targeted and qualified business development tools. The six days of the event will also feature a number of special theme days, talks, lectures, round tables and visits by foreign delegations, rounding out a unique program to support tomorrow’s construction projects, reach high-potential and developing regions, encourage business with a qualified and diverse ecosystem, and highlight the innovations of the future in a fast-expanding global market! Isabelle Alfano Director, construction business unit INTERMAT exhibition director
28 | www.cedmag.com | Construction Equipment Distribution | January 2018
INTERMAT 2018: NEW SPECIAL EVENTS INTERMAT has revisited its sector organization to fulfill its exhibitors’ and visitors’ wishes for a clearer presentation of the industry’s equipment, solutions and techniques; a more efficient visit; and a spotlight on the sector’s latest innovation. The show is now organized into four hubs of expertise: ▶ Earthmoving and Demolition ▶ Minerals and Foundations ▶ Buildings and Concrete Sector and Lifting ▶ Handling and Transportation
All of the indicators seem to be turning to green for the 2018 edition of INTERMAT: the worldwide construction market is set to record annual average growth of 3.9 percent between now and 2030. In France, further improvement is also forecast for 2018, with 3.4 percent growth in the building sector and 1.7 percent in public works. Such is the healthy backdrop for the forthcoming edition of INTERMAT, the international trade show for construction and infrastructure, to be held from April 23 to 28, 2018, in Paris. INTERMAT promises to be a premium meeting place for market players from the EMEA zone (Europe, Middle East and Africa) such as: - Building contractors, - Manufacturers and suppliers of equipment and solutions, who will be able to discuss and develop their projects designed to contribute to the development of regions.
INTERMAT has confirmed its status as the reference trade show for the construction and infrastructure sectors, catering to the challenges of all of the stakeholders in this ecosystem. The 1,500 exhibitors and 183,000 trade visitors from 167 countries will be offered access to innovation, educational lectures, networking opportunities, market analysis and insight into the “potential of major construction projects.” “The construction and infrastructure sector is a key contributing factor to the development of regions and their appeals as regards mobility, housing, energy and employment. In view of the profound economic, social and environmental changes currently happening, INTERMAT accompanies industry players in this transformation with new high added value tools and content. This has resulted in the show adopting a new sector organization, focusing on the sector’s technological innovations,” explains Isabelle Alfano, director of INTERMAT.
January 2018 | Construction Equipment Distribution | www.cedmag.com | 29
LAUNCH OF CONSTRUCTION OBSERVATORY IN ASSOCIATION WITH BUSINESS FRANCE MARKET FOCUS FRANCE +3.4% growth in 2017 in buildings in France +7.5% in 2017 and +15% in 2018 in sales of construction equipment +1.7% growth in 2017 for public works INTERNATIONAL +3.9% average growth between now and 2030 in the worldwide construction market +24% between 2016 and 2020 in sales of construction equipment 30 | www.cedmag.com | Construction Equipment Distribution | January 2018
The INTERMAT Observatory came about as a result of the desire to establish stronger bonds with the market and provide construction equipment manufacturers with strategic research on 12 countries in the EMEA zone, handpicked for their planned investment levels in infrastructure and buildings. The objective of the Observatory is to offer insight into market opportunities for the equipment manufacturers present across the exhibition’s four hubs of expertise. For each country examined, the Observatory will analyze its national investment plans, the main challenges for seven application sectors, the main imports and exports of construction equipment and the foreign brands already established on the market. The Observatory will offer an exclusive analysis of the major construction projects underway and planned for the future to 2025–2030 and of the main market players involved in these projects.
INTERMAT INNOVATION AWARDS 2018: SUPPORTING INNOVATION IN GROWING SECTOR With 80 percent of visitors claiming that their main objective at the trade show INTERMAT is to discover new products, innovation is a key lever for the construction and infrastructure sector. Innovation Awards As a platform for the revelation of innovative solutions on the market, INTERMAT Paris 2018 will bring together all the international players from the realms of construction and infrastructure who have entered the INTERMAT Innovation Awards. This competition, chaired by FNTP, will acknowledge the latest equipment, technology, services and products in construction and infrastructure. The 2018 edition will have a brand-new judging panel comprising experts from European construction firms and will be divided up into four categories corresponding to the new sector organization of the show and four additional special awards. Exhibitors have until October 2, 2017, to submit their entries. “Intermat reasserts the importance of research and development and supports the innovations contributing to market success in the construction and infrastructure sector. The 2018 edition aims to reveal the new technologies currently emerging which contribute to meeting the challenges of regional development,” says Isabelle Alfano, director of INTERMAT. Through their innovations, candidates will improve equipment performance and user safety with a perspective of optimizing productivity while being environmentally responsible. These innovations will compete in the various categories reflecting the four hubs of expertise at the show. To be selected, entries will be judged on five specific criteria: ▶ Cost efficiency: lower investment and maintenance costs, easier maintenance, improvement of production system and enhanced use of products or techniques ▶ Technical design and technologies used: improvement of performance and productivity, ease of maintenance ▶ Operation: work quality, productivity improvements, ease of maintenance and energy efficiency ▶ Use: ease of use, user-friendliness, risk prevention, and comfortable, safe and improved working conditions ▶ Environmental protection: protection of the climate and biodiversity, to promote the circular economy Prestigious Judging Panel To examine entries, the INTERMAT Innovation Awards call on a judging panel made up of European specialists from research and the construction industry. Also with the participation of FNTP and under the chairmanship of Bruno Cavagné, these specialists will award the prizes for “Equipment and Machinery” and “Components and Accessories” in the four sectors at INTERMAT Paris, and four additional exclusive awards: “Digital Transition,” “Energy Transition,” “World of Concrete Europe” and “Start-Up.”The results will be officially announced three months before the show at Pre-Intermat. The awards ceremony, scheduled for January 18, 2018, will be an opportunity to bring together all of the players who innovate for the benefit of construction and infrastructure.
INTERMAT INNOVATION AWARDS Chaired by FNTP, the INTERMAT Innovation Awards competition pays tribute to the machinery techniques, services or products that contribute to driving progress in the construction and infrastructure sector. For this edition, INTERMAT has enlisted the support of a judging panel made up of experts from European construction contractors and firms.
JUDGES: Bruno Cavagné, Chairman of FNTP France Pascal Beeckmans, Purchasing Director – BESIX Belgium Pierre Boels, Chairman of ERA (3). CEO – BOELS RENTAL Pays-Bas Ramon Gil Mataix, Purchasing Director – OBRASCON HUARTE LAIN Spain Bernard Heritier, Publishing Director – RGRA France Thierry Lahuppe, Equipment Director – LOXAM France Pascal Lemoine, Technical and Research Director – FNTP France Thomas Le Diouron, Founder – IMPULSE PARTNERS France Didier Thevenard, Equipment Director – EUROVIA France Kjetil Tonning, Vice President of FIEC (4). Regional Director, Construction – VEIDEKKE ENTREPENOR. Board member – The Confederation of Norwegian Enterprise (NHO) and The Nordic Road Association (NVF) - Norway
January 2018 | Construction Equipment Distribution | www.cedmag.com | 31
FOUR THEME VILLAGES TO PROMOTE THE SECTOR’S TECHNOLOGICAL INNOVATIONS Responding to the challenges of digitalization in building and public works and offering an extensive range, INTERMAT 2018 will showcase the sector’s technological innovation by creating dedicated features zones. In each zone, lectures and talks will be given on topical subjects, offering a platform for exchange and informationsharing between professionals.
FOUR THEME VILLAGES
Construction Tech Start-Up Village: Selected innovative products and solutions Smart Building Village – With firms from the Smart Building and BIM sectors · Automatic operation of earthmoving machines · Automation and robotic technology · BIM cabin · Building data management systems · Digital design and robotic manufacturing · Digital tools on the worksite · Earthmoving monitoring using airborne 3D surveys Smart Road Village – With firms from the road-building sector · Data transmission stations · Detectors · Energy · Engineering · Intelligent transport systems and services · New technology for road infrastructures · Sensors Demolition & Recycling Village – With firms working in demolition and recycling
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WORLD OF CONCRETE EUROPE JOINS INTERMAT PARIS 2018 A benchmark event dedicated to the European concrete market, World of Concrete Europe (WOC Europe, first launched in 2015 in association with Informa Exhibitions), will be held from April 23 to 28, 2018, as part of INTERMAT Paris, combining exhibition space, an educational forum and a demonstration zone. Under the banner of “Connecting the Concrete Sector,” this event unites all of the European players and aims to fulfill their expectations while also maintaining and enhancing the sector’s relations with its stakeholders. With aggregate turnover of 12 billion euros in France and almost 65,000 direct jobs offering local employment, the Concrete Sector (FIB, SFIC, SNBPE, SYNAD, UNICEM, UNPG) actively contributes to the vitality and development of regions. “Concrete is the most widely used material in the world, with applications in building construction, renovation, public works, and decoration. Through a wide-ranging offer in both content and format, WOC Europe will fulfill the needs of the Concrete Sector market in Europe and will offer a global vision of the entire sector with a glimpse of the latest trends in concrete technology. By accommodating World of Concrete Europe for the second time, the exhibition INTERMAT 2018 also demonstrates its desire to put into perspective the purpose of concrete production and laying equipment,” says Isabelle Alfano, Exhibition Director of INTERMAT and WOC Europe. As the only European event dedicated to concrete and aimed at industry players working in construction and infrastructure, the show brings together market leaders to give visitors an exhaustive overview and an expert vision of the latest breakthroughs in technology, digital, aesthetics and environment – whether in products, technology, applications or equipment. All of the key players in the European concrete sector will be in attendance to create a unique platform, engage with all the figures in the profession, display their business activity and vitality, support an attractive and fast-changing sector and be the ambassadors for the image of
a universal, innovative, versatile and multi-faceted material. Quadra, Putzmeister, Skako, Frumecar, Mapei, Chryso, Cifa, Schwing Stetter, Mecbo, Teka France, Trimble Solutions, and Wacker Neuson have already confirmed their participation at the forthcoming WOC Europe. The combination of an exhibition area, an educational forum and a demonstration zone will allow visitors to discover the full range available in the concrete sector, from the earliest stages of production (materials, products and additives) to the end of the cycle (decorative concrete, coatings, coverings, engineering and services). “The concrete sector makes a substantial contribution to cater to the new challenges of the energy and digital transition and sets out to conquer cities and regions: it’s a proximity industry, with an asserted commitment to the circular economy and the BIM process, a smart and constantly developing material, advantages in terms of functionalities, etc. 2018 promises to be another year of growth. Our companies will therefore require visibility more than ever to highlight their capacity to respond to the issues of worksite safety, management and efficiency, but also source information on the latest developments in equipment or applications to succeed and make their projects last in the long term,” adds Philippe Gruat, Chairman of the French Concrete Industry Federation (FIB). A “CONCRETE DEMOS” SPACE TO HOLD NONSTOP FEATURES The “Concrete Demos” space will host nonstop features dedicated to applications of concrete products, in particular decorative, polished, bush-hammered and printed. These highlights will also showcase the methods of layers and the demonstrations of the tools and equipment of concrete industry experts.
TALKS AND LECTURES: To respond to current challenges in the concrete sector, such as innovation, the circular economy, sustainability, etc., sector experts have drawn up a program of educational talks and workshops on the most topical subjects on the market. This forum thus promotes dialogue and information-sharing between industry professionals. Members of the WOCE Steering Committee: Anouk Thebault, Director of Professional Relations, CERIB Estelle Reveillard, Head of Communications and Public Relations, CIMBETON Frédéric Gluziki, Editor in Chief, Béton(S) le Magazine Julien Beideler, Secretary General, UMGO Vincent Simon, Deputy Secretary General, UMGO Christophe Jeaunau, Chief Executive, MAPEI
January 2018 | Construction Equipment Distribution | www.cedmag.com | 33
ABOUT THE ORGANIZERS S.E. INTERMAT brings together the trade organizations of equipment manufacturers and importers: CISMA, the French association of equipment manufacturers for construction, infrastructure, steel and handling equipment industries; SEIMAT, the French association of international civil engineering, mining, construction and hoisting equipment industries; and Comexposium, a European leader in event organization. The Comexposium Group, one of the world leaders in event organization, is involved in more than 170 consumer and trade events, covering 11 different sectors of activity, such as· Food· Agriculture· Fashion· Homeland security· Construction· High-tech· Optics . Transport Comexposium hosts 45,000 exhibitors and more than three million visitors in 26 countries around the world. Comexposium is developing worldwide through its activities in around thirty countries: Algeria, Argentina, Belgium, Brazil, Canada, China, Germany, India, Indonesia, Italy, Japan, Korea, Monaco, the Netherlands, New Zealand, the Philippines, Qatar, Russia, Singapore, Spain, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States. 34 | www.cedmag.com | Construction Equipment Distribution | January 2018
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JOURNEY TO THE
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A Wealth of Product Knowledge Helped Cemen Tech President and CEO Succeed in the Heavy Equipment Manufacturing Industry
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By Megan Mattingly-Arthur aking an effort to gain extensive product knowledge can help a good salesperson become a great one. It also helped Cemen Tech President and CEO Connor Deering make it to the top of the heavy equipment manufacturing industry’s corporate ladder. An interest in watching things get built is what initially drew Deering to a career in heavy equipment manufacturing. His first job in the manufacturing industry was as a sales trainee, which is where his passion for product knowledge was born. “I love to watch things being built,” Deering said. “My first job in manufacturing was as a sales trainee, where I spent a tremendous amount of time learning the product and out on the manufacturing floor building products. I also spent a great deal of time traveling around the country conducting training demonstrations for end-user customers, which was a great way to learn about the industry and gain product knowledge.” From there, Deering went on to hold a variety of positions in manufacturing organizaions, including working in territory and regional sales, as a national sales and marketing manager, and as a vice president/general manager who was responsible for multiple divisions. Eager for the chance to run a stand-alone manufacturing business, Deering accepted the president and CEO position with Cemen Tech in 2014. The Indianola, Iowa-based company is the world’s largest manufacturer of volumetric mixers and continuous mixing equipment. Not only does Cemen Tech operate in more than 50 countries worldwide, but it also supplies equipment to militaries in several nations. “Cemen Tech has a proven process for new equipment purchases that sets us apart and ensures our customers are successful,” Deering said. “We have a 90-day performance guarantee on our equipment, we ship emergency parts in 24 hours or less, and we provide the
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absolute best after-sale support. Cemen Tech is also an employeeowned company, which means every one of our employees has a vested interest in ensuring our customers’ success!” In his role as president and CEO of Cemen Tech, Deering works to maintain the organizational culture, outline and set strategic direction, and remove obstacles that could impair the company’s overall growth. He not only excels at the job but enjoys it as well. “My favorite thing about my work in this industry is watching a new customer who has placed their trust in us become successful,” he said. “Watching the order being placed, the equipment manufactured, and then working in the field creating jobs and making our customers successful is very rewarding. I also enjoy getting great people on our team and watching them do their thing – the right people in the right roles can do amazing things!” Facing a significant workforce shortage, the heavy equipment industry is one that could definitely use more great people. To those considering pursuing a career in the industry, Deering offered this advice, which has served him well in his own career: “Do the things you need to do to get to the next level. Early in my career I realized I wasn’t going to achieve what I wanted until I committed to start doing the things that would advance my career.” When he’s not busy fulfilling his duties as president and CEO of Cemen Tech, Deering enjoys spending time – and traveling – with his family. He also likes to squeeze in a round or two of golf whenever he gets the chance. “When not working, I spend time with my family,” he said. “My daughter is a competitive tennis player and my son plays AAA hockey, so a lot of time is spent watching, traveling with and supporting them. "And, when time allows, I very much enjoy playing golf!” For more information on Cemen Tech, visit cementech.com. Cemen Tech is also on Facebook, Twitter and Instagram.
January 2018 | Construction Equipment Distribution | www.cedmag.com | 37
Lower Your Rate Processing Credit Cards Courtesy of BASYS While there are many things that separate one credit card processor from another, pricing is a huge factor that has an immediate impact on you, the merchant. But with over 1,200 separate interchange rates, the age-old question of “What rate do you offer?” requires a much more detailed response. Several factors affect the actual cost of accepting payment with a credit card – industry, customer card type, processing method, settlement time, etc. Many variables impact what your customer’s card actually costs you. So, how do you lower your rate when processing credit cards? Although there are over 1,000 different rates, and numerous factors that impact the cost of accepting any given credit card, you are not helpless in reducing your costs. There are definitely best practices that can help you reduce costs and improve your bottom line. Here are four ways to lower your rate when processing credit cards. 1. Swipe or Dip: If you have a customer in front of you, swiping or dipping the card will get you a lower rate than manually keying in the same card. Interchange rates are closely related to risk – typically, the more risk a transaction holds, the more expensive it is. When you key in a card manually, the card brands (Visa, MasterCard, Discover, American Express) see it as “card-not-present.” Any time a card is considered to be away from the point of sale, higher risk is implied, and thus a higher cost for that transaction. Long story short: if you can see the whites of their eyes, swipe or dip the card. Do everything you can to avoid manually keying in a transaction. 2. Data, Data, Data: If you operate in a card-not-present world (e-commerce or mail/telephone orders), the more customer information you can provide, the lower your rate will be. With every transaction, provide the AVS information (the customers’ street
address and zip code), which will help qualify your transactions for the lowest possible rate. Even greater savings can be achieved with Level III interchange. This is unique to business and purchasing cards. Lowering the rate to this level requires a substantial amount of data to be submitted, usually from a specialized gateway like the one offered by BASYS Processing. 3. Settlement Times: Setting up your terminal for autosettlement is a quick update to any piece of equipment and can help improve your situation immediately. Many merchants have not been taught that leaving transactions unsettled in a terminal for more than 24 hours actually makes those transactions cost more! Except for very unusual circumstances, your processor should set your equipment to auto-settle at the same time every day. 4. Right Tool for the Job: While the credit card terminal is still the standard means of accepting a card payment, there are numerous other solutions, frequently unique to an industry. There are systems designed to accept credit cards specifically for e-commerce businesses and systems that are designed just for restaurants. Other systems are designed to operate in a business-tobusiness (B2B) environment, or for companies whose primary sales are recurring monthly payments. Just because the terminal you’ve been using for the last five years technically works doesn’t mean it’s the best fit for you right now. We recommend continually working with your credit card processor to learn what options are available to you, and to ensure you’re using the solution that can offer you the lowest rate qualifications and other helpful functionalities. These are some general ways you can lower your rate and control your costs, but the most important thing is to stay engaged. Just because you’ve always paid certain fees doesn’t mean you still need to be paying them.
BASYS Processing would be happy to provide you with a FREE SAVINGS ANALYSIS to show you how we can drive down your rates, ensure you are using a processing system that is the best fit for your business, and improve your overall credit card processing experience. If you have any questions about the credit card industry – lowering your rate, EMV chip card acceptance, chargebacks, PCI compliance, mobile processing – please reach out to us. We can be a tremendous resource for your business. Our website is www.basyspro.com. You can also find us on LinkedIn and Twitter. To speak with us, simply call (800) 386-0711 and ask for Derek. Or send an email to savings@basyspro.com. 38 | www.cedmag.com | Construction Equipment Distribution | January 2018
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>> GOOD COMPANY
Hvidtved Larsen Makes the Most of the Three Rs With Its Sewer Cleaning Tankers By Heidi Bitsoli Hvidtved Larsen has been in business for more than a century, remaining so in large part because those at its helm have looked forward. Today the Danish company develops and produces sewer cleaning tankers that are sold worldwide. “We can say we’re truly one of the leaders in the industry,” says Nicholas Bellwood, vice president of sales and distribution. Thanks to one man’s ambition and a dedication to innovation, the company helps clients the world over by making what amounts to waste work into a more manageable, economical and environmentally sound process. It all began in 1915, when J. Hvidtved Larsen founded a forge. Through the decades the company’s aims shifted and grew, easing away from repairs and concentrating on manufacturing.
Early output included bridge bascules and cranes. Then in 1956 it experienced a significant shift, when it assembled its first sewer cleaning unit. In 1996 it became a joint-stock company and began to focus exclusively on sewer cleaning tankers. It’s been a leader in the industry ever since. During the 1980s, Hvidtved Larsen began designing the RECycler. By 1997, the first version of today's RECycler was introduced to the European market. Today Hvidtved Larsen is owned by Swiss manufacturer Bucher Industries, which acquired it in 2016. Having Bucher and their network of related companies behind them has allowed Hvidtved Larsen to expand their presence in the U.S. market more rapidly than originally planned. About one third of the company’s sewer cleaning units are sold to Danish customers, but the rest are sold worldwide, including in
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the United States and Australia. Their tanks are made of 8mm boilerplate steel, built to withstand the most extreme conditions, be they arctic or desert climates. Hvidtved Larsen’s base models, aside from the RECycler, are the FlexLine and the CityFlex. All three were developed per market demand. The CityFlex is a smaller model that adheres to urban weight restrictions and is capable of doing a full-size job in a more compact setting. The FlexLine is designed for versatility, including handling clogged service lines, emptying septic tanks, transporting dangerous liquids and more. Their all-star is the aforementioned RECycler, with its environmentally friendly focus. It’s the most effective recycler on the market, according to Hvidtved Larsen. It was also the first on the market, so they
It all began in 1915, when J. Hvidtved Larsen founded a forge. bring experience and innovation to their product. With water, fuel and time often at a premium, this model truly follows the three Rs of reducing, reusing and recycling. When cleaning sewer systems, the operators use built-in filters to separate sediment and waste from the water and then reuse the same water until the job is done. “With the RECycler,” Bellwood explains, “you fill the truck (with water) in the morning and the team goes and jets water into the sewer, and as it is vacuuming it back up, it goes through filters and puts the water back in the truck – there is continuous operation.” There’s no need to return to empty the tank of waste water mid-job, because it is being filtered and reused. “A lot less water is used, and from a cost perspective it’s better, since water is not free everywhere,” Bellwood says. With water at a premium – the droughts in the western United States in 2017 serve as a recent example – the RECycler easily saves thousands of gallons of water per cleaning session. One client, UK-based Lanes Group PLC, found that they achieved 15 to 20 percent greater efficiency with the RECycler, thanks to less water, labor and fuel usage. Bellwood says that as the consumers warm to the concept, technology and operational benefits of RECycler's, Hvidtved Larsen is ideally positioned to meet the growing demand in the U.S. market. They’re exhibiting at the AED Summit & CONDEX in Las Vegas in January 2018 and have plans to build and sell tankers in the United States. Hvidtved Larsen has continued to expand their presence in the US market by working with customers that are interested in increased productivity while saving money on water, fuel and debris disposal. “The sewer-cleaning business is pretty much a constant,” Bellwood says, “because whether it’s good times or bad times, waste is produced.” It may be recession-proof, but conservation is always a welcome byproduct. January 2018 | Construction Equipment Distribution | www.cedmag.com | 41
CANADIAN CONCERNS: YOUR TOP FIVE By Stuart McCarthy and Raphael Brass ED recently surveyed its Canadian members to develop baseline information about the impact heavy equipment distributors have on the Canadian economy and to find out what keeps them up at night. Having this information is vital to conducting effective advocacy engagement with politicians and bureaucrats on behalf of the members – changing policy where necessary and creating an environment in which to conduct business. About 30 percent of the Canadian membership responded to our survey. Those responses have provided a good basis for prioritizing our advocacy goals in Canada. We will discuss the results in greater detail at the Canadian Breakfast during the AED Summit in Las Vegas, on Thursday, January 18,
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Top 5 Canadian Concerns 1. Availability of skilled laborers, trained and ready to work 2. The uncertainty and instability of NAFTA negotiations 3. Currency fluctuation 4. Tax changes 5. General economic instability
2018, and with a number of roundtables and presentations at the Ottawa Briefing, February 28 to March 1, 2018. So, what did Canadian members identify as their top priorities? Aggregating the responses, the top five concerns are as follows: ▶ Availability of skilled laborers, trained and ready to work ▶ The uncertainty and instability of NAFTA negotiations ▶ Currency fluctuation ▶ Tax changes ▶ General economic instability Let’s take a further look at some of those concerns.
Skills Shortage
Virtually everyone who responded to the survey made it clear to us that they are increasingly concerned about the double threat of an aging workforce and a shortage of skilled laborers. With the continuous technology upshift of increased complexity of systems, onboard computers, autonomous/remote controls and sensors, and more, it is vital that we maintain an accredited and knowledgeable workforce. Simply put, members are not able to fill the many positions available across our sector. To its credit, the Canadian government recognized in the 2017 federal budget that as technology advances there may be many people left behind without the skills needed for modern job requirements. Canada does not want to undergo the same experience as other Western countries, where increased automation has seen people let go from their manufacturing jobs with nowhere to turn. There will be more money going to postsecondary workforce training programs. There will also be reforms to the policy that caused people to lose their unemployment insurance and welfare payments if they enrolled in a postsecondary institution. This is being done to further incentivize people of all ages to gain skills needed to work in skilled labor jobs. AED’s goal is to make sure that the heavy equipment industry is well-positioned with the federal government so that the funding and skills training programs align with our needs.
Free Trade
The second-most-cited concern among members was the uncertainty of trade and tariffs with the North American Free Trade Agreement (NAFTA) negotiations underway. Of concern to Canadian members, especially with the magnitude of what’s at stake, is the bellicose language coming out of the White House to “tear up” and “cancel” NAFTA if the U.S. doesn’t get its way. When NAFTA replaced the Canada–U.S. Free Trade Agreement 20 years ago, it led to an industry that was inextricably linked across the border, with thousands of jobs and billions of dollars in trade dependent on the free flow of goods and services. Following are some of the relevant numbers (provided by U.S. and Canadian government officials): ▶ Canada is the largest trade and investment partner with the U.S. In 2016, cross-border goods and services totaled USD $627.8 billion. Exports from the U.S. to Canada were USD $320.1 billion; imports were USD $307.6 billion. ▶ U.S. foreign direct investment (FDI) in Canada (stock) was $352.9 billion in 2015 and Canada’s FDI in the United States was $269.0 billion. ▶ Top export categories for goods from the U.S. to Canada in 2016: vehicles ($48 billion), machinery ($40 billion), electrical
machinery ($24 billion), mineral fuels ($16 billion), and plastics ($12 billion). ▶ Top imports from Canada to the U.S.: vehicles ($58 billion), mineral fuels ($54 billion), machinery ($19 billion), special other (returns) ($15 billion), and plastics ($10 billion). ▶ Canada is the biggest export market for 35 states, with nine million U.S. jobs dependent on trade and investment from Canada. ▶ 600,000 Americans work for Canadian-owned businesses in the U.S. As with the automobile industry, as much as 80 percent of the content of heavy equipment sold in Canada crosses the Canada–U.S. border at least once. “Buy America” provisions and minimum content requirements have the potential to drive up the cost of products and harm sales on both sides of the border. NAFTA does need updating. The internet didn’t exist when NAFTA was enacted. Fixes to e-commerce and labor mobility would benefit members on both sides of the border. As a North American association representing member interests in Canada and the U.S., AED is an important voice in both Ottawa and Washington on ensuring that a robust, fair trade is maintained and improved for mutual benefit.
Tax Changes
AED members also expressed concern about proposed federal government taxation reforms and the impact on their businesses, especially family-owned operations. This was compounded during the summer when Finance Minister Bill Morneau introduced a number of measures which were seen as an attack on small business, as they sought to reduce benefits from family trusts, income sprinkling and passive income. Facing a huge backlash from many quarters, the government scaled back a number of the measures. At the same time, the Liberal government followed through on its 2015 election commitment to lower the small business tax rate from 10.5 percent to 9 percent. However, with the remaining tax changes set to come into force, this was now billed as ensuring that those changes would have a neutral impact on business. AED will remain vigilant for any new measures that might impact the transfer of family businesses; protection of income to offset the cyclical nature and external impacts on our members’ businesses; and fair compensation to family members down the road to compensate for unpaid work, “bootstrapping,” and selffunding of businesses during the startup and growth years.
Other Priorities
NAFTA negotiations and tax measures here and in the U.S. – particularly where the approaches are philosophically opposite – will unfortunately continue to impact currency rates and economic prosperity. On the trade front, Canada’s embracing of other regional free trade agreements, such as the Trans-Pacific Partnership (TPP), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and even, cautiously, the prospect of a free trade agreement in China, may provide some of the strength and economic stability AED members are seeking as a balance to the NAFTA turbulence. January 2018 | Construction Equipment Distribution | www.cedmag.com | 43
Nothing SMALL about AED's
Inaugural Small Dealer Conference By Karen Algeo Krizman ore than 50 association members converged in Music City in early November for the Associated Equipment Distributors’ (AED) inaugural Small Dealer Conference. Topics at the two days of meetings held at the Hilton Nashville Downtown covered everything from growth strategies and maximizing departmental performance to best management practices and making the most of an AED membership. “I think AED did an excellent job bringing smaller dealers together for this educational event,” said attendee Jeff Brown. “The hospitality was very good. I was able to network with fellow
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AED members who I have never met before. They were all very friendly, and very willing to help out and communicate with our dealership on different topics.” For Brown, the president of Global Machinery in Denver, there was a lot of value in having a conference dedicated specifically to small dealers like himself. Speaker Bill Mayes, who delivered presentations titled “Your Surplus Industry Is On Fire” and “Learning to Love Your Rental Department,” explained that smaller dealers have some needs that set them apart from heavy dealerships. “The challenge is they may not have the resources that the larger dealers have and they may
Topics at the two days of meetings covered everything from growth strategies and maximizing departmental performance to best management practices and making the most of an AED membership.
not have specialists, so very often small dealers are challenged with wearing one, two, three…10 hats during the day,” said Mayes, who is the president of Mayes & Calero and a member of the Machinery Advisors Consortium. “They have to do the strategy in the morning and implement that strategy later in the day. Consequently, I think the challenge is you have an idea of what the big picture is, but you get so caught up in running the business that it’s a challenge to step back and, as Stephen Covey says, ‘sharpen the saw.’” Knowing how busy the audience is, Mayes, along with some of the other presenters, wanted to get “more into the nuts and bolts, and some of the day-to-day problems that arise.” “I wanted to give participants something very specific that they could take action on without having to do a lot more analysis, because one of the problems I’ve seen with any seminar that people go to is they get loaded up with information and ideas,” he said. “Then when they go back, they put this book on the shelf, never to open it again. After a week or two weeks, the motivation dies and they get back into business as usual. What I want is to give them something that they can take action on immediately.” Despite their hectic schedules, attendees particularly appreciated the opportunity to network with other small dealers. “Working with other dealers, that’s an outstanding benefit of going to one of these,” said Bruce Harvey, president of H&V Equipment Services in Corpus Christi, Texas. “By networking, you gain more information and knowledge on how you can come back and tweak your system.” For Molly Swanston, who returned to work for Swanston Equipment in Fargo, North Dakota, about a year and half ago, the networking aspect of the Small Dealership Conference was particularly important as she immerses herself in learning all there is to know about her family’s business. “I’ve just found it incredibly helpful to network with people in the industry,” she explained. “Being as I’m so new, I like surrounding myself with people who are executing and making things happen. Ideas start bouncing almost immediately when you get all these people into the same room. That’s the biggest benefit for me is learning from the experts in the industry, and everyone is more than willing to help. They see a young person getting involved and people just start talking about their early days and what they wished they would have done, and it’s just a great help.” January 2018 | Construction Equipment Distribution | www.cedmag.com | 45
Don't Miss the 2018
Annual AED/EDA Washington
Fly-In Learn How to Effectively Lobby Your Members of Congress
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By Megan Mattingly-Arthur ssociated Equipment Distributors (AED) and the Equipment Dealers Association (EDA) will host the 2018 AED/EDA Washington Fly-In March 20–22 in the nation’s capital. Heavy equipment distributors, manufacturers and service providers are invited to attend the industry’s premier public policy event to find out more about current legislative issues, hear from lawmakers and learn strategies to make their advocacy efforts more effective. “For better or for worse, what happens in Washington has a direct impact on construction equipment dealers,” said AED Vice President of Government Affairs Daniel Fisher. “The Fly-In gives dealers the opportunity to hear firsthand from key policymakers about what to expect in Washington, which allows companies to better prepare for the future.” Nearly 100 equipment dealers attended last year’s Fly-In. With an infrastructure bill on the legislative horizon, and business-friendly audiences on Capitol Hill and in the Trump administration, Fisher anticipates an even greater turnout this year – and infrastructure investment, energy development, regulatory reform and workforce development are expected to be hot topics. “It’s an important time for all of us to be active in Washington,” said Diane Benck, vice president of operations at West Side Tractor Sales Co. and vice chairman of the AED board of directors. “There are a lot of issues that are not resolved, including transportation funding, tax reform and regulations that affect our businesses.” As in previous years, attendees can expect to gain valuable
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political knowledge, as well as insight into the legislative process. “AED does a great job of educating us on the issues and suggested policy changes so that you can feel confident to address them with your representatives,” Benck said. “The best part of the Fly-In is, after we’ve been educated on the issues and use that knowledge in our meetings with our individual members of Congress, occasionally you can see the ‘light bulb’ turn on in their faces and you realize that the time away from our dealerships is well worth the effort.” Brent Abrahm, CEO, cofounder and director of financial services provider Accruit, agreed: “As professional associations go, I think AED is one of the top ones out there when it comes to engaging their members and helping them get involved in the advocacy process,” he said. “They have done a tremendous job of making sure that members understand issues that are specific to the heavy equipment industry and showing them that people in Congress are approachable and usually want to understand the needs of your business.” Also, for the second consecutive year, AED will schedule attendees’ meetings with their members of Congress. With AED taking care of the logistics, all attendees have to do is show up. “AED made it really easy for me to meet with my members of Congress and their staffers,” said Michael Lalonde, founder and owner of Westrax Machinery Inc., who attended his first AED/EDA Washington Fly-In in 2017. “I was surprised to learn that legislators know very little about our industry and what matters to us. I talked to people on both sides of the aisle and found that we have a lot in common – especially on issues like workforce development and infrastructure.” Registration, which runs through Sunday, March 4, is $500 for members and $1,000 for non-members. Late registration begins Monday, March 5, and costs $550 for members and $1,100 for nonmembers. “If you’ve never been to AED/EDA’s Washington Fly-In before, give it a shot,” said Fisher. “You won’t regret it and you can make a difference. Lawmakers are very responsive to business owners and executives in their home states. With infrastructure investment on the agenda next year, you can’t sit back. There’s too much at stake. Let your voice be heard and help push policies important to the industry and your company.” For more information on the 2018 AED/EDA Washington Fly-In, or to register to attend, call 630-574-0650, email info@AEDnet.com or visit aednet.org. AED is also on Facebook, Twitter, YouTube and Google+.
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Engaging Through AED to Shape Policy By all indications, 2017 was a momentous year for AED’s Government Affairs Program. Dealers participated in record numbers in the political and legislative process by hosting congressional visits, attending the AED/EDA Washington Fly-In, supporting AED’s PAC and engaging with lawmakers at AED events. In 2018, the Association hopes to build on this momentum as Congress considers infrastructure legislation and the midterm elections rapidly approach. Rather than telling you about everything AED’s Government Affairs Program accomplished last year, we’ve decided to show you!
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January 2018 | Construction Equipment Distribution | www.cedmag.com | 49
West Side Tractor’s
Family Tradition
Rich and Mary Benck started it all with a pickup truck and two technicians By Karen Algeo Krizman ich and Mary Benck took the spirit of giving to heart this holiday season, gifting $1 million to the employees of West Side Tractor Sales Co. and its sister company, RCE Equipment Solutions, a specialized rail business. The Bencks started West Side Tractor in Lisle, Illinois, 55 years ago with a pickup truck, two technicians and Rich handling all the sales. Today, the company is headquartered in Naperville, employing 243 people in 10 branches throughout Illinois, Indiana and Michigan. “The employees helped us make this company grow the way it has and we just felt it was time to give something back,” Rich said. “We have a very, very close working relationship with all the employees. They really are probably the most loyal employees that we could have. I just really felt that we should reward them for that.” Many of those employees have been with West Side Tractor for more than two decades, including one with 39 years on the books and 30 with 25 years. That longevity still pales in comparison to Rich’s history with
R
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heavy equipment. He was born and raised on an Illinois farm, where he was first exposed to farming equipment. After high school, he went to work for an equipment dealer and attended diesel trade school before joining the Air Force, where he taught diesel engine repair for four years. Once he left the service, he went to work as a technician at a dealership in South Holland, Illinois, eventually working his way up to shop foreman. “One day the boss came out and handed me a sales manual and said, ‘Why don’t you go out and see what you can sell,’” he recalled. “That was my total training, but I knew most of the customers and I enjoyed selling equipment. It worked out really well.” When an area John Deere dealer went bankrupt, Rich and a few of his coworkers cobbled together $30,000 to buy him out, and in 1962 West Side Tractor was born. Although Rich bought out his partners within the first 12 months, the early years were tough and required sacrifice by him and his family. “Our biggest problem was the cash flow,” he said. “With the
limited amount of money I had, I could not get a line of credit at that time. John Deere had a floor plan. They gave you a very liberal floor plan, but they also tied up all your assets so you couldn’t borrow against them. You had to make payroll and then once a month you had to settle with John Deere, so you had to keep the money turning pretty fast.”
Rich and Mary persevered, though, and overcame the hardships of those early years together. “We worked as a team all the time,” Rich said. “Mary was raising the family. She worked down there a few times, but not too often. Everything we did, we did as a team.” That teamwork eventually paid off, and in 1987, Rich turned the company over to his three children: Diane, who oversees the general operations and product support; Steve who manages RCE as well as machine sales; and Tom, who is in charge of used equipment and the consignment fleet. “We’ve given the children the company,” Rich said. “It’s completely in their names now. They are pretty well financed and they have the ability to make a pretty good living for their families. They’re probably doing a better job than I could.” That’s not to say Rich isn’t still involved in the equipment dealership business. After leaving West Side, he and Mary headed south to Texas where he purchased three struggling dealerships and again turned them around. After making a decent return on Longhorn real estate as well, he returned to Illinois and now helps his children by managing West Side Tractor’s and RCE’s facilities. In addition to their employees, Rich said the secret to the Bencks’ success all these years is simple. “If you can get the customer and keep them, then you can grow; that’s the name of the game,” he said. “Our philosophy all these years has been ‘service what you sell.’ Get a customer and keep them for life. You do that when you have good parts and service. We go out of our way to make sure we have the service if we sell something.” January 2018 | Construction Equipment Distribution | www.cedmag.com | 51
>> A CLOSER LOOK
e-Emphasys Puts Its Emphasis on
Customer Success
e-Emphasys Technologies has spent the last 20 years with a specific goal in mind: providing modern, cutting-edge enterprise resource planning (ERP) software solutions to equipment dealers and rental companies. e-Emphasys is a global industry enterprise solution provider with customers in over 20 countries, providing a fully integrated, end-toend ERP solution to optimize efficiency and drive revenue. Along with their core ERP product, e-Emphasys also provides other enterprise solutions such as Business Intelligence and Reporting, Mobile Field Service Apps and CRM systems which can be integrated into their ERP or any business system. “We combine decades of experience in the equipment industry with the powers of modern technology, allowing us to bring what we believe is the lowest Total Cost of Ownership and highest Return on Investment to our customers when compared to other solutions on the market,” said Milind Bagade, CEO of e-Emphasys. “We take great pride in the business benefits consistently reported by our customers.” In today’s world, ERP software is a vital part of the most successful and profitable companies. When e-Emphasys was founded in 2000, equipment dealers were using outdated legacy technology to manage their businesses. The limited functionality offered by these systems meant that equipment dealers were forced to use multiple software solutions, resulting in islands of information within the company. “Our legacy business system was a major impediment,” said John Coughlin, president of Linder Machinery. “We had no option but to follow the process defined in the software. e-Emphasys was a paradigm shift for us. Built-in best practices helped us immensely to drive efficiency at every level of our operation.” Working in collaboration with dealers, e-Emphasys invested 13 years and over 3,000 man-years of development into creating an ERP platform specifically for the equipment distribution industry. The platform that has been developed works on any database, device or browser, meaning that it can be a future-proof solution that is continually enhanced to meet the needs of the customer. “e-Emphasys has a proven history of on-time and on-budget implementations,” said Nick Orolin, president of e-Emphasys. “Over the years we’ve developed a repository of 350+ Industry Best Processes which is built in to the solution. This helps us to provide a quick implementation time and return on investment for our customers.” The driving force behind e-Emphasys’ implementations is their business process mapping tool, which is integrated into the ERP system with over 350 predefined processes. This helps to promote a learning organization and shortens training time. It also helps management to tighten controls and establish industry best practices across the entire organization, ensuring plans made in the boardroom are carried out on the shop floor.
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“e-Emphasys enabled us to get our implementation done on time and on budget. This is critical because it allowed us to experience ROI quickly,” said Peggy Smith, CFO of Linder Machinery. “e-Emphasys provided a ready-made best business practices framework which we were able to customize to meet our own needs. We understand that some systems take as long as 12 to 30 months to implement. In comparison, our implementation of e-Emphasys ERP took only four months.” e-Emphasys’ research and development (R&D) team of approximately 280 people is structured like a dealership, with separate departments for rental, parts, service, whole goods, integration, and finance/accounting. Through this structure, they have been able to fine-tune their solutions to meet the needs of each area of the dealership. Features such as their operational dashboards with real-time alerts have helped to increase productivity. These dashboards can be personalized by role or by user. Dashboards show the activities and pending work each day. For example, a rental manager would log on and see pending deliveries for the day or demo equipment overdue for return. These dashboards also allow management to track key performance indicators (KPIs) in real time from any device. “e-Emphasys has changed the way we do business in a number of ways,” said Jon Kimball, president of Kimball Equipment. “I use the business intelligence dashboards every day. It’s a refreshing change from the past, where I would generally ask once or twice a month how things were going. One of the first things I do when I wake up in the morning is look at my phone and see what we billed the previous day. I can look at KPIs for different locations, I can use the system to see reports.” Peggy Smith of Linder Machinery was impressed with the increases in productivity after switching to e-Emphasys. “We have the ability for our managers to get a level of data that was not available before. They can drill down to detailed information from reports in just a few mouse clicks. This ability should greatly enhance our productivity and profitability,” said Smith. “With e-Emphasys ERP we are finding that our KPIs are available daily instead of monthly. This greatly improves management’s ability to impact operations.” Customers have reported significant benefits in areas such as service. e-Emphasys provides fully integrated mobile field
service solutions designed to enhance the efficiency and profitability of technicians. Scheduling and dispatch capabilities allow service managers to dispatch technicians based on skills, availability and proximity to the job site. The mobile app provides technicians capabilities such as GPS navigation, complete customer information and job description, voice-totext capabilities for taking notes, the ability to capture signatures in the field and more. “I would say our revenue, particularly in service, has increased 30 percent this year,” said Brian Loderhose, vice president of the G.W. Van Keppel Company. “One of the areas that has helped us tremendously is the eService Tech. Being able to manage that day-by-day without paper has improved that process greatly. To go from a paper system of manual write-ups, of tracking time, of putting hours on a piece of paper and turning it in – now with e-Emphasys our efficiency has gone up tremendously.” General Equipment and Supplies has seen a massive reduction in technician time spent doing paperwork. “Pre e-Emphasys, our technicians
were spending hours and hours on their paperwork every day,” said Steve Stafki, vice president of service at General Equipment and Supplies. “Post e-Emphasys, they’re spending approximately 15 to 30 minutes a day getting all their paperwork done.” Many equipment dealers report that they spend a significant amount of time and money searching for documents, parts and more. To solve these problems, e-Emphasys has developed advanced document management capabilities which are integrated directly into the system. An example of this is the ability to attach pictures, contracts, invoices and more to relevant transactions so that all required information is easily accessible in one location, thus automating work that was previously done manually. “e-Emphasys has cut our service administration expense by at least 50 percent,” said Jon Kimball of Kimball Equipment. “I would say the reduction in time with e-Emphasys in generating financials is 70 percent or greater. Things that used to take two departments several days going back and forth now take, in
January 2018 | Construction Equipment Distribution | www.cedmag.com | 53
some cases, 10 to 20 seconds.” Rick Krause, CFO of the G.W. Van Keppel Company, was able to eliminate some administrative processes entirely. “Using the e-Emphasys ERP system has allowed us to be more efficient in our administration,” said Krause. “A good example is using the Avalara sales tax information which has allowed us to eliminate 100 percent of the work we were previously doing.” Rish Equipment reported benefits and savings in their parts department. “I would say accuracy with our physical inventory has probably improved by 20 percent. With our journal entries each month, we’ve reduced them in half,” said Steve Hamilton, managing director of Rish Equipment. “We’re able to manage the parts inventory to a certain level, say 10 million dollars, as far as how e-Emphasys would track that. By doing so we’re able to order parts from one of our large manufacturers without having to incur extra charges, such as restocking fees for parts that don’t work, special order cost and additional freight. All told, that would probably save us in a given years’ time $250,000 to $300,000 dollars.”
Scott-Macon Equipment has experienced growth in recent years, but has not had to add to their administrative force. “We’ve saved so much time with the eScheduler app, inter-company transactions and so forth that despite our growth we haven’t had to add anyone to our accounting department,” said William French, vice president and controller of Scott-Macon Equipment. For rental departments, speed is essential. e-Emphasys’ solution allows users to scan RFIDs and immediately generate a service work order directly in the system. The service manager is notified of the work order via text or email so that he can assign it to a technician using scheduling capabilities. Once that technician has completed the job, the job can be updated to show that the equipment is ready to rent again. This allows sales staff to have an accurate view of the equipment available to rent in real time, minimizing equipment downtime and maximizing rental revenue. With workforces becoming more and more mobile, e-Emphasys has made significant efforts to ensure that all the features of their software are available on
GEAR UP.
any device, in the office or in the field. The IoT (Internet of Things) and (AI) artificial intelligence are already integral parts of the world today and will only play a larger role in the years to come. e-Emphasys has started developing solutions using these advances in technology – for example, in preventative maintenance. e-Emphasys currently has a pilot program in place with one of their customers in which they integrate AI with a knowledge base to proactively identify potential machine failure. Resources are then automatically allocated to resolve the problem before the machine fails. This is just one example of AI and IoT impacting the equipment industry in the coming years. “e-Emphasys has a proven track record of customer success and takes pride in each and every customer relationship,” said Bagade. “Our customers consistently report significant ROI, and many are growing and acquiring companies. We strive to provide the premier dealer management solution for this industry, both now and in the future.”
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54 | www.cedmag.com | Construction Equipment Distribution | January 2018
The AED Foundation’s Certified Technician Program allows technicians to earn a professional industry certification by successfully passing an online technical assessment.
STEPS ON BECOMING AED FOUNDATION CERTIFIED:
1
Login at lms.aedu.org
Click the appropriate button under Technician Certification and complete your purchase
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Take the test or upload your assessment results
Become an AED Foundation Certified Diesel Equipment Technician!
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To learn more about The AED Foundation and the Certified Technician Program, visit www.aedfoundation.org or call 800-388-0650.
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CERTIFIED
Technician of the Month Training Manager Tony Tice Completes Certification Program to Encourage Others By Megan Mattingly-Arthur Tony Tice is extremely knowledgeable about the heavy equipment industry, having worked as a technical programs educator for more than three decades. Like many who go on to become technicians, Tice was initially drawn to the career because of an interest working with his hands. “I’m one of those guys who always liked to work on things and fix things,” he said. “I got my initial diesel training at Northeast Mississippi Community College in Booneville and from there I went on to work in a diesel fuel injection shop in Tupelo. A Tony Tice NEMCC instructor encouraged me to come into the heavy equipment field. I came on a college visit and was recruited into this industry because of my technical skills.” Recruited into the industry himself, Tice now works to recruit others into technician careers, currently serving as the training manager for LaVergne, Tenn.-based CAT distributor Thompson Machinery. “As a corporate training manager, I oversee the company’s trainers and make sure we’re staying on the right path,” Tice said. “In my job, I get to interact with Thompson Machinery’s nearly 600 employees, which is something I really enjoy.” Tice also volunteers for The AED Foundation, visiting technical colleges going through the accreditation process to ensure that their curriculum matches The AED Foundation's exacting – and recently revised – standards. “Right now we’re going through the accreditation process for Hinds Community College in Jackson, Mississippi, which will be the first AED Foundation-accredited program in the state,” he said. “We go in and make sure that what they teach matches The AED Foundation standards that were revised in 2017. It’s exciting and I’m glad to be a part of it. The volunteer work I do through The AED Foundation is my way to pay the industry back for all the years that it’s been good to me.” While some with such extensive experience might not feel the need to distinguish themselves with an industry certification, Tice jumped at the chance to be one of the first technicians to complete The AED Foundation’s recently launched Certified Technician Program. However, rather than gaining the certification for his own benefit, Tice did it so that he could help prospective technicians know what to expect. “As a recruiter for Thompson Machinery and someone who’s been in this industry for a number of years, I wanted to be able to 56 | www.cedmag.com | Construction Equipment Distribution | January 2018
LaVergne, Tenn.-based Thompson Machinery has nearly 600 employees.
talk intelligently to prospective technicians about getting AED Foundation-certified,” he said. “So I sat down one morning and took the test. It’s 160 questions and you know the results as soon as you’re done.” Tice agreed with what many others have said about the 160-question assessment, characterizing it as challenging but fair, and a great way for technicians to pinpoint their strengths and weaknesses. “I was able to see pretty quickly that I’m strong in some areas and I need a little assistance – a little update – in other areas.” For those considering a career as a technician in the construction and heavy equipment industry, Tice has this recommendation: “There are two major areas of focus in the work we do now: electrical and hydraulics. If you have opportunities to do training in either of those two areas, I would strongly advise it, because we’re always looking for technicians who have those skill sets.” When he’s not busy working as a corporate training manager or volunteering with The AED Foundation, Tice is an avid golfer who never misses a chance to hit the links. He also enjoys spending time with his family, which includes four grandchildren ranging in age from just a few months to 12 years old, and loves to travel with his wife, Paula. For more information on The AED Foundation’s Certified Technician Program, call 630-574-0650, email info@aednet.org or visit aedfoundation.org/certified-technician-program. The AED Foundation is also on Facebook and Twitter.
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The competition is
Competitive Analysis By Christine Corelli
FIERCE
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Here Are Some Simple Ways To Get Going! Forget tough! Today’s competition is fierce. What are your competitors doing? How are they thinking about the industry and the marketplace? What sales tactics are they using? What marketing, social media, and service strategies do they have in place? Are all of their technicians certified? What maintenance and service programs do they offer? How about pricing? What technology and business systems do they use that might make them more efficient and be able to serve customers faster? To ensure your dealership has a competitive advantage, you need answers to these questions and more. Whatever you By Christine Corelli don’t know can be obtained by performing a competitive analysis - the practice of researching, analyzing, and comparing your competitors’ dealership to yours. Progressive dealers routinely conduct sophisticated competitive analysis. Many state the analysis strongly influences the decisions they make. But not every dealership has the budget or marketing staff to gather the business intelligence to perform this important business project. They are too busy with day-today operations and watching the bottom line. Some plan to do it, but it never gets to the top of the to-do list. Others feel the task is too complex and don’t do it all. Here are some simple ways to get going:
Just Get Started
Google knows everything about you. They also know everything about your primary competitors and make it easy for you to obtain intelligence. Use Google, Yelp, Alexa and other tools to learn about their strengths and weaknesses. Find out if they have made mistakes, which is always good to know. How about their websites? While equipment distribution is a serious business, be sure your website has the “Wow” factor as soon as a prospect or customer lands. Determine how your user / ordering experience stacks up against yours. Advertising copy often not only reveals your competitor’s pricing, but often how innovative their dealership is. Pay attention to the publications, frequency, special offers, design and tone of their advertisement. How does yours compare?
Where Else to Gather Competitive Intelligence
Your sales staff. No brainer. Sales people often have more access to competitive information than anyone else. Prospects and existing customers often show salespeople literature, and price quotes. They also get customers to discuss problems they have with a competitor’s product or service department. Where do they take their equipment to be serviced? Why them? Do they offer a “Real Deal” that you don’t? What needs are not being met?
Benefits for YOU
Benefit from the time and energy, and perhaps funds you put into doing a competitive analysis by identifying as many
weaknesses of your competitors as possible. Turn them into strengths for your dealership. Then, put strategies and tactics in place and make changes that will make you outshine them. Then you’ll be and in a far better position to win the battle to gain market-share.
Set the Bar
Many business experts feel the competitor is there only to challenge you to perform better. Your dealership should set the bar for your competition. In other words, be proactive, not reactive. Strive to be the leader.
Be a Business Partner
Let’s not forget to mention the two things your competitors can never duplicate – YOU. Internalize these five things: 1. That person thinks about their business day and night. 2. It is very close to them. 3. It is dear to their heart. 4. Your competitors are vying for their business. 5. You had better deliver more value and work harder to develop a relationship. Stand out from your competitors by positioning yourself as a business partner. You’ve heard that before. But how well do you do it? How can you improve? Talk to your prospects and existing customers and ask them questions about their business. Look for ways to help them run their businesses more effectively and help them to get results where they can see it - in their bottom line. Offer it up, and help, help, help. They want to do business with someone that can help them reduce their total operating cost, improve efficiency and achieve a competitive advantage – just like you do. When you partner for success, provide solutions, and more help them far more than your competitors, you will be more apt to enjoy a distinction that creates a competitive advantage.
Get and Stay Closely Connected
If you are the dealer principal, stay closely connected to your customers. Visit them often, and thank them for their business. Give them access to your cell phone and let them know they can call on you whenever they feel the need.
A Weapon to Fight Your Competition
Make every effort to ensure you have a far superior workforce than your competitors. Invest in them, invest in training. Make sure they know how to treat customers and provide a consistently great customer experience.
The Competition is Everywhere.
Our entire economy is based on competition. Decide where you want to be in the marketplace. Will you be at the top, the middle, or the bottom? If you want to be at the top conduct frequent competitive analysis, and do whatever it takes to stay at the top.
CHRISTINE CORELLI is a conference speaker, columnist, and author of five business books, including the best-selling Wake Up and Smell the Competition and Capture Your Competitors’ Customers and KEEP Them. Visit www.christinespeaks.com, or call 847-581-9968. January 2018 | Construction Equipment Distribution | www.cedmag.com | 59
Sales Ena
What H When Sa Market Align
By Brian Shanahan etting sales and marketing to play nice in the same sandbox is more than just an organizational challenge. It can have dramatic impact on a dealership’s bottom line. Differing views can diminish strategies and revenue for the business if both groups aren’t on the same page. Alignment of these two teams can be a beautiful thing, though, and warrants some operational investment in a sales enablement program. We’ve identified some proven benefits, and we’ll share them with you here. The whole idea of sales enablement is to provide the sales team with the appropriate selling tools to help them have better conversations with customers and qualified leads. Effective sales enablement initiatives provide the sales staff with invaluable information, including buyer personas, insights, challenges, interests and pain points. Armed with appropriate, more
G
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personalized data, the sales team can quickly zero in on prospect and customer needs, accelerating the sales process and generating revenue faster. When equipped with the right tools, training and information, sales teams are better able to hold relevant dialogues with prospects and customers. Marketing devotes a substantial amount of time and resources to the sales department in the form of sales materials, campaigns and qualified leads. But the two groups aren’t always in the best alignment, with each working on its own goals without visibility into how or what they’re doing impacts the other. With appropriate collaboration, marketing can support sales with useful communications tools delivered on a timely basis to enable better sales conversations. When marketing and sales are better aligned, support is enhanced with more targeted marketing tools. This alignment
ablement:
Happens ales and ting Are ned?
dramatically reduces the time that sales teams waste digging for relevant information and getting it in front of prospective customers. Marketing does what it does best and sales does what it does best when there is a healthy flow of communications. Realizing that both teams are on the side of the company, efforts can be streamlined and targeted, with better revenue wins for the business. With an open sales enablement strategy, sales activity will be more visible to more people in the business, which will help them understand how everyone can have a positive impact on sales. Sales should be directly and indirectly the responsibility of everyone in the company—accounting, marketing, finance, training, parts,
customer service, etc.—and if more people are aware of their place in the buyer’s journey, they will be more effective in their contributions to the process. When sales enablement becomes part of the company culture, everyone has a vested interest not only in sales today but also in customers for the long haul. Is there one magic bullet to turn prospects into lifetime customers? Not really. But using sales enablement strategies will convert them quicker than before so that you can start developing a broader base of loyal customers. This alignment will lead to more closed deals and better sales opportunities that will drive revenue for the organization and help ensure profitability well into the future.
BRIAN SHANAHAN is president of Shanahan Strategy Inc., a marketing and web development agency based in San Mateo, California. With over 20 years’ experience, Shanahan Strategy helps manufacturers, distributors, and dealers evaluate and set strategic plans to grow sales. Services include growth strategy, lead generation, web development, content marketing, and consulting. To learn more visit shanahanstrategy.com or call 650-393-5966. January 2018 | Construction Equipment Distribution | www.cedmag.com | 61
How to Market ... on a Budget By Lindsey Wregglesworth By this time, you’ve probably solidified your goals and strategies for the 2018 fiscal year. Along with this comes establishing your budgets for the year. We understand firsthand that every dealer and manufacturer we work with has different needs and different capacities (aka money) to implement our services. There is plenty you can do with a small budget; you just need to get creative and think outside the box. In this article we want to share some ideas for things you can do if your marketing budget happens to be limited. Here’s our list of 10 low-cost marketing ideas: Content Generation: As the inbound marketing trend continues to grow, we encourage you to jump on the bandwagon by creating educational, insightful content that can help your customer base, and by publishing it in every way you can think of – on your own business blog, on an industry website, or even on Reddit. Content Recycling: Is your creativity spent from writing article after article for your business’s blog? Consider recycling some of that old material and repurposing it for your email newsletter, social media, or even reposting on your blog. There’s no shame in using what you already have at your disposal! Email Marketing: Although there are plenty of snazzy services available to provide you with personalized, automated emails, these often come at a pretty steep cost. Consider how you could use your traditional email platform to send out quarterly or monthly newsletters, promotions, etc., to get the word out about your latest news and offerings. Social Media: If you aren’t already on the social media bandwagon, there’s no time like the present to hop on! Social media has changed everything for businesses and consumers. You may think your customers wouldn’t benefit from your business’s social page, but you’d be surprised how userfriendly and community-building these pages can be! Ad Promo Credit: Not sure if you can fully invest yet in advertising for your business, but want to test the waters? Many platforms, including Facebook, LinkedIn,
There is plenty you can do with a small budget; you just need to get creative and think outside the box. and Google, offer promo credits to get businesses interested in advertising. Think about which of these offers might work best for your business and give them a try – you’ve literally got nothing to lose but their money! Video Marketing: We’ve kept our eye on the booming trend of video marketing, and it seems to be an excellent way to get your business noticed by social communities, or to increase engagement through your email marketing. Even if your prospect doesn’t think they have time to read through an article, everyone finds time in their day for a video. With the technology available on smartphones today, you can create your own with little equipment. Just make sure it’s tasteful and clear. DIY Collateral: Don’t have a graphic designer at your disposal? No problem! Nowadays there are plenty of tutorials to help you learn how to create flyers, one sheeters, or infographics. We’ve loved the
program Canva, which is a free beginner’s design program that comes with templates for each type of collateral you are aiming to create. Customer Referral Program: We recently wrote an article on the topic of customer loyalty and how referral programs are a great way to garner loyalty for your business. Customer referral programs are beneficial because you are able to credit those customers who bring in new business, thus not spending anything extra on big prizes. Industry Partnerships: If you find yourself short on funds for a project or special event, such as a county fair booth, consider teaming up with another local business (but not a competitor) to showcase both companies’ offerings. This also takes the pressure off of your team, as there is power in numbers when it comes to event planning and exhibiting. You could even team up for an online promotion and split the cost of a big giveaway! Customer Appreciation Day: Make sure your customers know you appreciate them by hosting a simple cookout or potluck at your dealership, where customers can feel less like a commodity and more like family. This can deepen your partnerships and even generate some local buzz around town! There are millions more creative ways you can market your business locally and broadly to your industry prospects.
LINDSEY WREGGLESWORTH is the marketing manager at Commercial Web Services, a division of Trader Interactive, which specializes in providing commercial dealers and manufacturers with products and services to establish and grow their online presence in today’s market. 62 | www.cedmag.com | Construction Equipment Distribution | January 2018
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Hackers Targeting Your Phone:
Here Are 15 Ways to Slow Them Down By Luke Bencie, Camille Mouliard and Maxime Proud © 2017 Harvard Business School Publishing Corp. Mobile phones have become the new prey of choice for hackers and other nefarious individuals. Once compromised, our phones offer easy access to our personal and financial information, giving hackers the ability to sell that information on the dark web and to ransom our information. But despite the growing threats to our smartphones, most people — even most corporate executives — still don’t take basic security precautions. According to a 2016 report on mobile security by Intertrust, the cost of mobile app hacks and breaches will reach $1.5 billion by 2021. What can you do to protect yourself and your mobile device? Here are 15 simple steps that will make you a harder target: 1. Immediately change factory passwords on your phone. Avoid using 0000, 1234, your birthday or similar easy-to-guess codes, and avoid settings for autologin or saving passwords. Change your voicemail password from time to time, too. 2. Keep your operating system up-to-date and back up your phone regularly. Install app and system updates as soon as they are available, because these updates may be fixing a bug or security issue. 3. Use a dedicated email address for authentication and pin number resets. This email address should be different from your personal day-to-day email address, which may be widely known. 4. Be cautious about installing apps from unknown sources, especially free versions of popular apps. 5. Only download apps from the App Store, Google Play or other official sources, as they constantly screen and remove 64 | www.cedmag.com | Construction Equipment Distribution | January 2018
suspicious apps. 6. Do not access sensitive information (your bank account, for example) while using unsecure public Wi-Fi. 7. Use a Virtual Private Network (VPN) to create a more secure channel between your smartphone and the internet. 8. Set your phone’s lock-screen feature to engage quickly when the phone is not in use. 9. Set your phone to autoerase if too many incorrect logins are attempted (and make sure to back up your phone regularly). 10. Turn off your phone’s Bluetooth feature when not in use. 11. Enable the “Find my phone” feature so that you can quickly locate it if it’s lost or stolen. 12. Consider installing security software on your phone — but only approved and well-known software. 13. Try not to keep personal information on your phone for too long. Keep your phone as “clean” as possible by moving photos and documents and photos from it to a more secure device. 14. Turn off your devices when not in use (do not just hibernate them), especially when traveling. 15. Install privacy screens for your devices. (These are tinted screen protectors that prevent bystanders from seeing what’s on your screen.) Nobody easily recovers from being hacked. While computers have always been vulnerable to attack, your phone has evolved into the target of choice for criminals. Protect yourself by recognizing the threats ahead of time and making the efforts to mitigate them. Luke Bencie is the managing director of Security Management International.
FIGHT OR FLIGHT
How to Control Your Emotions During a Difficult Conversation By Amy Gallo © 2017 Harvard Business School Publishing Corp. It’s hard not to get worked up emotionally when you’re in a tense conversation. After all, a disagreement can feel like a threat, and so your body ramps up for a fight by triggering the sympathetic nervous system. If your body goes into “fight or flight” mode, you may lose access to the prefrontal cortex, the part of your brain responsible for rational thinking. And making rational decisions is precisely what you need to do in a difficult conversation. Luckily, it’s possible to interrupt this physical response. There are several things you can do to keep your cool during a conversation:
Breathe
Simple mindfulness techniques can be your best friend in tense situations. When you start noticing yourself getting tense, try to focus on breathing. Notice the sensation of air coming in and out of your lungs. Feel it pass through your nostrils or down the back of your throat.
Focus on your body
Sitting still when you’re having a difficult conversation can make the emotions build up rather than dissipate. Experts say that standing up and walking around helps to activate the thinking part of your brain. If you and your counterpart are seated at a table, you may say, “I feel like I need to stretch some. Mind if I walk around a bit?” If that still doesn’t feel comfortable, you can do small physical things like crossing two fingers or placing your feet firmly on the ground and noticing what the floor feels like on the bottom of your shoes.
Try saying a mantra
Come up up with a phrase that you can repeat to yourself to remind you to stay calm. You can try “This isn’t about me,” “This will pass” or “This is about the business.”
Acknowledge and label your feelings
When you’re feeling emotional, “the attention you give your thoughts and feelings crowds your mind; there’s no room to examine them,” says Susan David, author of “Emotional Agility.” To distance yourself from the feeling, label it. “Call a thought a thought and an emotion an emotion,” she says. When you put that space between these emotions and you, it’s easier to let them go — and not bury them or let them explode.
Take a break
The more time you give yourself to process your emotions, the less intense they are likely to be. So when things get heated, you may need to excuse yourself for a moment — get a cup of coffee or a glass of water, go to the bathroom or take a brief stroll around the office. Try saying something like, “I’m sorry to interrupt you, but I’d love to get a quick cup of coffee before we continue. Can I get you something while I’m up?” Let’s face it. Conflicts with co-workers can be tough. Hopefully, these five tactics will help you move from angry and upset to cool as a cucumber. Amy Gallo is a contributing editor at Harvard Business Review. January 2018 | Construction Equipment Distribution | www.cedmag.com | 65
5 Tips for Launching an Effective Learning Management and Employee Development Program By Sean Pomeroy re you considering implementing a formalized employee development program? It is an investment that’s likely to pay off. Organizations with a career development program in place enjoy up to 250 percent higher productivity. And the benefits don’t stop there. Reduced turnover, higher employee engagement levels, increased innovation and improved risk management are some of the additional benefits companies realize when they implement a formal training and career development program. Training also serves as a recruiting tool – you’re more likely to attract and keep good employees if you offer them development opportunities. If your company doesn’t have a training and development program in place, it may seem daunting to get started. But it doesn’t have to be. Here are five basics to keep in mind as you work to implement an effective and efficient employee training and development solution in your organization. 1. Consider it an investment There is a tendency among business owners and executives to view employee training as an optional expense – and that mindset can prove very costly to your organization in the long run. The moment you think of employee development and training as just another expenditure, you’ll neglect it. Instead, think of it as an investment that can prove extremely valuable for the long-term success and growth of your organization. 2. Remember you’re planning a program, not an event A training program is more than just a series of unrelated courses or workshops. It should reflect your organization’s goals, as well as the needs of your staff. What’s important is that your staff training program has some reason behind its structure. An unrelated series of presentations or activities might have some value, but it will benefit neither the staff nor the organization as much as a training program that forms a coherent whole. Spend the time to outline and flesh out your course offering, aligning it with your business needs and goals. Document the desired outcomes of each course and determine how you will measure and track those outcomes. 3. Involve your staff Make it a point to involve staff members in the planning and implementation of your training program. The people who actually do the work are usually in the best position to figure out what their needs are. Ask questions, gather input, and structure training opportunities that meet employees where they are and take them where they want or need to be. Training breeds commitment, and committed employees are happier and more productive. 4. Incorporate the basics – but don’t stop there Companies often decide to implement a training program to address compliance matters (think OSHA or Department of Labor),
A
to manage risk (think sexual harassment and diversity training), and/or for professional certification or credential tracking – and these are certainly areas that benefit from a formalized approach to training. Job function training is another common (and worthy) goal of an employee training program. As you plan your training program, consider broadening it into a full-fledged employee development program. Think of training as a retention tool, helping to instill loyalty and commitment in employees. One idea would be to offer career development courses, enabling employees to prepare themselves for promotion. Staff will be more likely to stay if you offer them ways to learn and grow while at your company. Don’t give them a reason to move on by
letting them stagnate once they’ve mastered initial tasks. 5. Leverage technology A training and development initiative won’t succeed if it isn’t easy to maintain. Companies often rely on spreadsheets, Word documents and calendar reminders to track employee training. Usually these programs were initiated when the company was much smaller or was training fewer individuals. A disjointed system like this requires administrators to enter data in multiple locations, making reporting, analytics and data sharing virtually impossible. This may work when your training needs are minimal, but as you grow this system becomes overly labor-intensive. Employee training, with the myriad of details to be tracked, is an ideal candidate for automation. Not long ago, learning management software was only within financial reach of the largest companies. But now, there are affordable learning management solutions accessible to small and mid-sized companies. Give your initiative the best chance of succeeding by establishing an easy-to-manage infrastructure that’s both scalable and accessible.
SEAN POMEROY is the founder and CEO of Visibility Software, a provider of Cyber Recruiter (talent acquisition-ATS) and Cyber Train (talent development-LMS) software solutions. He has a blended mix of human resources experience spanning more than 20 years, which includes being an HR practitioner, selling and consulting in the HR technology industry, building and designing HR solutions, and teaching at the college level. Sean holds Bachelor’s and Master’s Degrees in Industrial-Organizational (I/O) Psychology from Radford University. 66 | www.cedmag.com | Construction Equipment Distribution | January 2018
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>> EVOLUTION OF SALES TROY HARRISON
Break The Rules! Wait, What Rules? The point is, right now, there are very few rules in selling.
I’ve written much in this space about the evolution of selling in recent years. Much of the evolution has been driven by the internet and the ease of access to information that the internet gives customers and sellers alike. That the internet is a double-edged sword for salespeople is a foregone conclusion by now. That the internet is a primary force of change in sales is also a foregone conclusion. However, the Net isn’t the only driver of change, and some of the change goes beyond being positive. In fact, right now is probably the most fun time in selling that I can remember in my 27 years. Why? Because the old rules don’t apply – and many of those old rules haven’t been replaced by new ones. Changes in everything from the way salespeople are managed, to the way accounts are managed, to how customers are interacted with are being laid wide open for experimentation – and there’s nothing more fun in sales than the freedom to experiment. Example One: Paid Consulting. For as long as salespeople have been selling, one bugaboo has been customers who use us as free consultants. In other words, the customer allows us to do a comprehensive needs analysis, proscribe the correct products and/or services, and come up with a complete proposal to solve their problem. The customer then takes that proposal and shops it to companies that don’t have the cost of sales invested and can easily lowball a price – and the salesperson who offered real value ends up without the sale. The “old line” sales defense has been to not offer actionable information to the customer until they have committed to a purchase. The problem with this approach is that it can work against the salesperson who is trying to build a relationship – the salesperson comes off as standoffish and untrustworthy. Now, there’s a better option (or at least one worth trying). A coaching client of mine experienced this situation recently, and I suggested that she charge for the value of her consulting. After much discussion, she proposed this to the customer, and he readily agreed.
This is one instance where I think the internet helps us. There is so much free content out there on the Web that I think people now have a much higher perceived value of knowledge and expertise that must be paid for. Hence, when a salesperson asks to charge for his/her expertise, the customer perceives that the expertise provided is well worth it. In the case of my coaching client, she got not only a consulting fee, but she also got the order. Example Two: Team Selling. In an example I wrote about a few months ago, two salespeople who work for one of my clients decided to team up, thinking that in this case two heads were better than one. They were right. One is a superstarlevel prospector, and one is a highly talented and skilled account manager. In a process that was not initiated by management – but is now endorsed – they combined their territories and their talents. The result is that the superstar prospector consistently wins more new business annually than nearly any other salesperson the company has (there is one guy that pushes him pretty hard), while the talented account manager hangs onto the business and develops it. They both get to do the parts of sales that they like best and excel at, and the results are huge. In their business, a “quota-level” salesperson typically sells around $1 million per year; at last count, the team achieved over six times that level. The best part is that this was initiated not by sales management, but by salespeople who were willing to put their own skin in the game in terms of commissions. They made decisions as entrepreneurs would, and that yielded a terrific result. Again, the old rules of this industry require one salesperson per customer, and the person who won the business is the person who manages it. Rules broken, with a great result. The point is that right now, there are very few rules in selling. The internet has turned things upside-down. And all of these “rule breakers” above did so in order to accommodate to the way the customer wants to do business. Is it time to reevaluate your sales model?
TROY HARRISON is the author of “Sell Like You Mean It!” and “The Pocket Sales Manager” and is a speaker, consultant, and sales navigator. To schedule a free 45-minute Sales Strategy Review, call 913-645-3603 or email Troy@TroyHarrison.com. 68 | www.cedmag.com | Construction Equipment Distribution | January 2018
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>> SALES SUCCESS
JOHN CHAPIN
How to Communicate Effectively During the Sales Process Once you have the proper mindset and are prepared to sell, here are some great communication rules to follow.
In theory, sales is pretty simple: communicate the right way with the right people, and you’ll make sales. It’s in practice that most people complicate the issue. So how do you keep it simple? Assuming you’re selling something where someone has to deal with you for any length of time (in other words, you’re not selling batteries at Walmart), you need to get several points across. One: you care; two: you’re trustworthy; three: you understand their problem; and four: you’re competent and can solve their problem. That said, effective communication begins with mindset. First, you must be completely sold on and have confidence in your product, your company, and yourself. Next, you have to have empathy for the people you’re selling to and you must put them first, before your company, your product, the sale, and even before yourself. If you enter the sales conversation with confidence, caring, and compassion, putting the other person’s needs first, you’re off to a good start. Next is preparation. You need to know your product, the competition, how to identify the needs, wants, and desires of the prospect, and how to present your product solutions. You must have answers to objections, and you must be able to close. Once you have the proper mindset and are prepared to sell, here are the other communication rules to follow: Rule 1: Be honest and authentic. Rule 2: Agree with people. Never argue or debate. Rarely will you get anywhere by beginning a conversation by disagreeing with someone. When you push back, most people dig their heels in even further. Start by agreeing, let them be right, build some rapport, and then start to shift the conversation. Rule 3: Listen well. The better you listen, the more people will like you, because most of us are not listened to during the day. While we are speaking, the other person is thinking about what they’re going to say. Especially on initial calls, you want to be listening far more than you speak, about 70 to 80 percent of the time. Take notes if necessary and make sure you actually hear what
is being said. Read between the lines and wait five seconds after someone is done talking before you speak. Rule 4: The most important part of communication is the mindset of the audience. What is going through their brain? What are they thinking? If they think it’s green and you think it’s red, you’d better figure out why they think it’s green and how you may be able to educate them as to why it’s actually red. If you’re going to connect and communicate effectively, you need to be able to see things from their viewpoint. Rule 5: People listen via their favorite radio station: WIIFM (what’s in it for me). Focus on the other person and what they are interested in. Why should they be listening to you? Why should they care about what you’re saying? Use “you” versus “I” language and ask good questions to find out what’s important to them. Rule 6: Always speak in benefits. Never give a feature without the resulting benefit. Again, what does the feature mean to them? How does it save them time, money, effort, energy, or headaches? How does it make their life better? Rule 7: Be extremely responsive and answer client/prospect communications as quickly as possible. Also answer calls and emails at night and on the weekends. Rule 8: Do what you say you’ll do when you say you’ll do it. Then go one more step and go above and beyond, doing more than you promise. Rule 9: Everything affects your communication and how people hear you. You will be judged on what you wear, how you speak, the car you drive, the pen you use, and everything else that the senses can pick up. Rule 10: Make sure your body language, facial expressions, eye movements, tone of voice, and words match the point you’re trying to get across. Most of communication is nonverbal. Rule 11: Don’t use industry-speak, jargon, acronyms, or words the other person is not familiar with. Rule 12: Speak intelligently about your product or service. If you don’t know the answer to a question, be honest, and then follow up with an answer as quickly as possible.
JOHN CHAPIN is a motivational sales speaker and trainer. For his free newsletter, or to have him speak at your next event, go to www.completeselling.com. Reach him at johnchapin@completeselling.com. January 2018 | Construction Equipment Distribution | www.cedmag.com | 71
>> RISK MANAGEMENT
ERIC STILES
Sentry Insurance’s Tips for Reducing the Risk of Fire
AED PREFERRED PROVIDER
These best practices can make a difference in avoiding a catastrophic loss.
Q: Are there any specific fire exposures I should be concerned about at my dealership? A: One of the biggest risks to a dealership comes from equipment left in the service area after-hours that have symptoms of electrical or fuel-related problems. Sometimes they ignite when no one’s there, damaging or destroying the building. Many cases share some similarities: ▶ Failure to recognize the danger: Often, employees didn’t identify or secure the equipment with fuel or electrical issues before closing the dealership. ▶ Precautions not taken: Batteries weren’t removed from the malfunctioning equipment, leaving the electrical system active overnight. ▶ Caught too late: The fires went undetected until the building was engulfed, providing little chance to limit the damages. ▶ Secondary damage: Smoke and water damage to the building caused as much destruction as the fire. But there are things you can do to protect your business. These best practices can make a difference in avoiding a catastrophic loss: ▶ Ask if the equipment has shown any electrical, fuel system, or hydraulic problems when filling out a service-order. ▶ Tag the unit if any of these mechanical issues
are mentioned so service technicians are aware of the elevated fire risk. ▶ Keep the equipment outside until the service work can be done all at once to avoid leaving it indoors after-hours or over the weekend. ▶ Pull all connections to the battery and note it on the service-order if the work can’t be completed immediately and the unit must be left inside overnight. ▶ Disconnect any charger connected to a battery overnight or during the weekend unless the battery is out of the equipment. And to further reduce the overall risk of fire at your dealership: ▶ Replace temporary-use extension cords with permanent wiring for any need longer than two weeks. ▶ Have a qualified electrical contractor inspect your building’s entire electrical system every two years and perform any upgrades or repairs as soon as possible. ▶ Store dirty shop rags in a UL- or FM-approved commercial rag can to prevent spontaneous combustion fires. By taking these simple steps, you can better protect your equipment dealership, giving you more peace of mind.
As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs. ERIC STILES is Sentry’s lead Account Executive responsible for maintaining the AED/ Sentry relationship. 72 | www.cedmag.com | Construction Equipment Distribution | January 2018
Have a seat—we’ll steer you right Your insurance company should understand your risks—and your goals. With Sentry, great things happen when we learn what makes your dealership unique. That’s because we offer you custom insurance and related services—like smart risk management—to help you succeed now and over the long haul. Rely on us to dig in and do the heavy lifting, so you can invest more time bolstering your bottom line. Right By You
Let’s get the conversation started. Learn more about how we can help you manage costs and take advantage of opportunities at Sentry.com
Property and casualty coverages and safety services are underwritten and provided by a member of the Sentry Insurance Group, Stevens Point, WI. Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. In New York, individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, NY. 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. In New York coverage provided through policy form numbers: (Life insurance) 585-3000-01, 390-1000 (SLONY), 390-2003-SLONY; (Disability) 685-9000-31; (Dental) 785-7000; (Group Annuity) 840-300(NY); (Individual Annuity) 380-440. Short-term disability insurance is not available in New York. 73-710
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