August 2018
CED
Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership
Summit 2019:
Boehner in the Spotlight Make history at this year’s Summit in Orlando, Florida, featuring keynote speaker John Boehner
n CED Exclusive 2018 Engine Showcase
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n A Good Company Superior Tire & Rubber Corp.
n A Closer Look
SmartEquip
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COST OF DOING BUSINESS and C O M P E N S AT I O N R E P O R T
Expanding Financial Perspective with AED’s 2018 Cost of Doing Business and Compensation Report
I N T H E A G E O F D ATA , T H E S E R E P O RT S P R O V I D E INVALUABLE INSIGHTS FOR GAUGING STRENGTHS, WEAKNESSES AND IMPROVEMENT OPPORTUNITIES.
N E W F E AT U R E S S TAT I C
REPORTS
The full, industry-wide report as well as a personalized Company Performance Report (CPR)
REPORT
CARD
Provides an objective, qualitative evaluation of the business’s performance; participants can see how their company “grades” versus the industry on several key financial metrics
PERFORMANCE
GRAPHS
Graphically tracks company data versus the industry on several key financial metrics
INTERACTIVE
PEER
REPORT
A feature that allows participants to create company performance reports on demand; participants choose the data cuts they would like to compare against
SEARCHABLE
R E S U LT S
A feature that allows participants to dig deeper into the data by creating custom aggregations of the survey results
Find out more information about financials in the construction equipment industry by purchasing these reports at bit.ly/aedreports
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contents
CED Magazine | August 2018
vol. 84 no. 8
www.cedmag.com
36
A Closer Look:
20
CED Exclusive: 2018 Engine Showcase CED’s engine showcase is your best source to preview and browse the most anticipated offerings from the industry’s engine manufacturers .
SmartEquip wants to help equipment distributors and owners achieve maximum productivity with minimum wasted effort or expense.
34
A Good Company: Superior Tire & Rubber Corp. Founded in 1964 as a tire retailer, retreader and molder, the company was purchased 10 years later by Henri LeMeur Sr., and today designs and manufactures polyurethane and rubber industrial components.
46 ORLANDO, FLORIDA
FEBRUARY 4-7, 2019
Make history at this year’s Summit in Orlando, Florida as AED Celebrates our 100-Year Anniversary!
August 2018 | Construction Equipment Distribution | www.cedmag.com | 3
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contents CED Magazine | August 2018
EDITOR'S DESK Sara Smith, Editor in Chief CED Magazine ssmith@aednet.org
>> EDITORIAL
vol. 84 no. 8
I am pleased to announce that CED Magazine has won a 2018 APEX Award for Publication Excellence. CED won the category for Magazines, Journals and Tabloids that have 32 pages or more. This is the 13th annual awards program that recognizes quality by professional communicators. There were over 1,400 entries submitted, and the winners were based on graphic design, editorial content and the ability to achieve overall communications of excellence. CED Magazine will proudly display this award with honor! Be sure to check out previous issues of CED and more on our new digital platfrom, www.cedmag.com. when B.J. Coghlin’s company acquired Watson Jack & Co. Ltd., its first mobile equipment subsidiary.
INSIDE
Editor in Chief SARA SMITH ssmith@aednet.org
28 | From Steel Toes to High Heels
Collaboration and innovation at the Women in Construction Equipment Distribution Roundtable.
Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com AED Graphic Design Intern PHOEBE DEFENBAUGH design@aednet.org
>> WRITERS Clifford Black Christine Corelli Joseph Kay Karen Algeo Krizman Megan Mattingly-Arthur
>> ADVERTISING Vice President JON CRUTHERS 800-388-0650 ext. 5127 jcruthers@aednet.org
33 | Superior Tire & Rubber Corp. 12 | Regional Report
Conestoga Community College in Guelph, Ontario, intends to lead the way as they embark on an initiative to achieve AED Foundation accreditation for their heavyduty equipment programs.
13 | The AED Foundation Donor Profile Bejac Corporation knows it’s time for the industry to build on the future.
14 | Chairman’s Corner
Former AED Chairman Larry Glynn looks back on more than 40 years of AED membership.
16 | Wajax Canada
The name “Wajax” was conceived after almost a century of continuous business,
Production Manager MARTIN CABRAL 800-388-0650 ext. 5118 mcabral@aednet.org Since 1920 Official Publication of
650 E. Algonquin Road, Suite 305 Schaumburg, IL 60173 630-574-0650 fax 630-457-0132
Delivering superior customer service first things first, master the basics.
39 | Diversity in Construction
Expanding the availability of roles for women in the construction equipment industry.
42 | Women at the Helm
Eagle Power and Equipment VP, Bridget McDonald, chose a career in the heavy equipment industry to work with family
44 | Journey to the Top
SANY America CEO went from working on an automotive assembly line to serving in an executive-level position in the heavy equipment industry.
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.
4 | www.cedmag.com | Construction Equipment Distribution | August 2018
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>> AED INSIDER
AED From the Field AED is actively out in the field meeting and keeping up with our members. See below to find out where AED was in May and June and what is going on with you, our members!
Vermeer Texas-Louisiana Opens New Store, Receives Pinnacle Award
AED congratulates Vermeer Texas-Louisiana on the grand opening of their new facility on May 17, replacing an existing one in Baton Rouge, Louisiana. Also, congratulations on receiving the Pinnacle Award. The Pinnacle Award is given to the top-performing Vermeer industrial dealerships, domestically and internationally. Through its new brand ambassador program, Vermeer helps dealers evaluate their customer experience at every stage of the purchase and ownership phases. Results from this program are combined with sales growth, policy compliance and overall performance to determine winners each year, which are announced at Vermeer’s annual Dealer Year End meeting.
Conestoga Community College Leads the Way for AED Foundation Accreditation
Conestoga Community College in Guelph, Ontario, intends to “lead the way” as they embark on an initiative to achieve AED Foundation accreditation for their heavy-duty equipment programs. Read more on Page 12 in Michael Dexter’s Regional Report.
Rep. Bost Discusses Infrastructure, Tax and Workforce Issues at Luby Equipment
Rep. Mike Bost (R-IL 12) visited Luby Equipment Services in Caseyville, Illinois, on May 30 to tour their facility and discuss infrastructure, tax and workforce issues. Bost, who serves on the House Transportation and Infrastructure Committee, stated, “I was very pleased to visit the great team at Luby Equipment. They continue to be leaders in the community, and I appreciate the good jobs they provide as they service the heavy equipment industry. Infrastructure is vitally important to our economy, and I will take their input back to Congress as I continue my work on the Transportation and Infrastructure Committee.” “I’d like to thank Rep. Bost for his leadership and for visiting Luby,” stated Sales Manager David Kedney. “The key takeaway was the dialogue regarding the countless benefits from investments in our nation’s infrastructure and roads. We also found the conversation around the Mississippi River and the opportunity to develop larger ports to drive commerce to Illinois and Missouri interesting. Finally, we feel that having budget stability for larger road jobs will provide confidence to contractors at all levels to invest in equipment purchases.”
Rep. Erik Paulsen Visits Road Machinery & Supplies
Rep. Erik Paulsen (R-MN 3) visited Road Machinery & Supplies Co. (RMS) in Savage, Minnesota, on June 4 to discuss infrastructure, mining, tax and workforce issues. Paulsen, who serves on the House Ways and Means Committee, was welcomed to RMS by CEO Mike Sill. “It was great to have Rep. Paulsen here today to discuss issues of critical importance to RMS and the heavy equipment distribution industry,” said Sill. “We appreciate him taking time out of his busy schedule to learn more about what we do, and we value what he does for Minnesota.”
Rep. Faso Visits A. Montano Co. in Saugerties, NY
It was great to discuss AED’s policy priorities on May 29 with New York Rep. John Faso, a great supporter of our industry. Topics included infrastructure investment, taxes, workforce development and regulatory reform.
Lincoln Technical Institute Hosts Foundation Accreditation Meeting
Lincoln Technical Institute in South Plainfield, New Jersey, recently hosted an AED Foundation school accreditation meeting along with key local dealers including Able Equipment Rental, Best Line Equipment, Eagle Power & Equipment Corp., Construction Crane & Tractor, Foley Inc., George Harms Construction, Harter Equipment, Hoffman Equipment, Jesco, F& M Equipment Ltd., Modern Group, North Jersey Bobcat and Stephenson Equipment. The AED Foundation and Lincoln Tech are partnering to accredit Lincoln Tech’s Diesel Truck and Heavy Equipment Technology Program. This meeting was phase one of the process, designed to get local dealers together at the school and go over the accreditation process and next steps.
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>> FROM THE CHAIRWOMAN
DIANE BENCK
Diversity in Our Industry Will Only Be Seen through Strength in Numbers
I
Together, we discussed the need for a stronger presence of women in the industry, the benefits of having more women in the industry, how to encourage women into the industry and much more.
n May, I was lucky enough to spend a day with some of the most respected women in the construction equipment industry, at the Women in Construction Equipment Distribution Roundtable in Chicago. Together, we discussed the need for a stronger presence of women in the industry, the benefits of having more women in the industry, how to encourage women into the industry and much more. The experience was eye-opening. It was also incredibly empowering and thought-provoking, for a number of reasons. Not only did I and a few other AED members get to share the stories of our career paths and the sexism we’ve seen or experienced, but we also got the chance to hear from successful women in other careers, such as manufacturing and criminal justice. These women shared how their industries have been successful in bringing in women. They discussed their biggest challenges in their careers, how their industry’s attitude has changed toward women, and the many issues that women tend to face in their careers. We then broke into groups to have roundtable discussions about three important questions facing women in the construction equipment industry: 1. How do we attract more women to individual businesses and to the industry? 2. How can we support one another, as well as other women? 3. What can AED do moving forward to encourage women? There were a few major takeaways that I think are important to share with you. For one, the phrase “strength in numbers” was proven true and was extremely evident during this event. A lot of great ideas were offered for how to increase the number of women in the industry, many of which were unique and interesting perspectives that would never have been shared were it not for these roundtable discussions. Together, we can come up with many possible ways to increase diversity in this industry that we might not think of on our own. We are stronger together than we are separate. Another important takeaway is the need for everyone’s support and encouragement to increase diversification in our industry. Many women who attended this event suggested the importance of getting men in the room, having them hear our ideas and struggles and, again, using our collective power to make change happen. This issue is more than just our own; it is everyone’s issue, and we won’t see change unless everyone is working toward the same goal. Although this might be one of the biggest obstacles that we face, it seems to be a very important aspect of success in diversification. We all left the roundtable feeling empowered and excited for the future, and I look forward to helping and working with AED as it leads the charge for change after the success of this event. Keep an eye out for things to come.
August 2018 | Construction Equipment Distribution | www.cedmag.com | 7
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W H AT I S A E D ’ S LEADERHIP DEVELOPMENT INSTITUTE? The AED Leadership Development Institute (LDI) is a one-year program for high-potential managers who are expected to prepare for broader organizational roles. LDI participants will...
→ → →
Strengthen core leadership abilities Deepen cross-functional knowledge Explore the strategic connections across lines of business
WHY LDI? LDI is the only industry-specific leadership program in the market today that takes participants out of their individual silo and encourages them to focus on the business as a whole. Developed based on feedback from both distributors and manufacturers, LDI is designed to prepare the next generation of dealership executives for upcoming roles in their dealership. This comprehensive program covers content in both the operational areas of a dealership as well as personal leadership development. Attendees will work with an executive coach to develop a capstone project that delivers real ROI to the sponsoring dealership.
→ Three Educational Sessions
October 10 – 12, 2018
February 27 – March 1, 2019
June 19 – 21, 2019
Last year’s participants generated an average annual net income impact of $481,495 for their dealerships
→ Cost
$4,995 per member
Non-members please
call for pricing
Register at bit.ly/2018ldi
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>> FROM THE PRESIDENT BRIAN P. McGUIRE
Step Out of Your Silo and Focus on the Business as a Whole at LDI Last year’s Leadership Development Institute attendees generated an average annual net income impact of $481,495 for their dealerships!
AED aims to continue to provide our members with the best educational offerings at the highest level. Developed based on feedback from both distributors and manufacturers, AED’s Leadership Development Institute (LDI) kicked off last year to great success. More than 20 AED members completed this program, and we look forward to having even greater attendance at our upcoming event. LDI will be offered once again, with the first session Oct. 10 to 12. What is LDI and what can you expect? Here’s everything you need to know. This program is the only industry-specific leadership program that takes participants out of their individual, departmental silo and encourages them to focus on their business as a whole. LDI is a one-year, three-session program for highpotential managers expected to prepare for broader organizational roles. LDI participants will strengthen their core leadership abilities, deepen cross-functional knowledge and explore the strategic connections across lines of business. This comprehensive program covers content in operational areas of the dealership, such as sales, service, parts, rental, finance and administration, as well as focusing on personal leadership development. Incorporated into these sessions will be cohort learning experiences, rated by last year’s attendees as one of the most beneficial aspects of the program.
Participants will collaborate during interactive workshops including a dealership case study, a mock interviewing exercise, and peer coaching sessions. Along with peer coaching, each attendee will work with an executive coach who will assist them with drafting an Individual Development Plan based on an assessment with feedback from their company. Coaches will hold participants accountable and will serve as a sounding board for them. Coaches will also troubleshoot issues and challenge development. Each participant will conduct a capstone project that includes a review of their own dealership and identifies areas for improvement. Real-world SWOT analysis and action planning will help them create measurable ROI business improvements. They will work on this throughout the program and present their final project during the last LDI session to show how they have applied their LDI knowledge to generate business improvements in their companies. Last year’s attendees generated an average annual net income impact of $481,495 for their dealerships! If this sounds like a program someone in your organization would benefit from attending, we want to see them in Chicago! The three sessions will take place Oct. 10 to 12, Feb. 27 to March 1, and June 19 to 21. For more information or to register someone today, visit bit.ly/2018ldi. We look forward to another successful and beneficial program!
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
DIANE BENCK Chairwoman West Side Tractor Sales Co.
PAUL FARRELL Modern Group Ltd. GAYLE HUMPHRIES JCB of Georgia STEVE MEADOWS Berry Companies, Inc. JAMES A. NELSON Heavy Machines, Inc. MATT DI IORIO Ditch Witch Mid-States DAN STRACENER Tractor & Equipment Co.
MICHAEL LALONDE West Reg.
MICHAEL D. BRENNAN Vice Chairman Bramco, LLC RON BARLET Senior Vice President Bejac Corporation MICHAEL VAZQUEZ VP Membership MECO MIAMI Inc. DAVID PRIMROSE VP Canada Finning Ltd. JOHN C. KIMBALL VP of Finance Kimball Equipment Company WES STOWERS Past Chairman Stowers Machinery Corporation WHIT PERRYMAN Foundation Chairman Vermeer Texas-Louisiana
Westrax Machinery, Inc. MATTHEW ROLAND Midwest Reg. Roland Machinery Co. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC KAREN ZAJICK Northeast Reg. Norris Sales Co. DAVID PRIMROSE Western Canada Reg. Finning Ltd. COREY VANDER MOLEN South Central Reg. Vermeer MidSouth, Inc. MIKE PARIC Eastern Canada Reg. Joe Johnson Equipment Inc. August 2018 | Construction Equipment Distribution | www.cedmag.com | 9
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EquipmentWatch Values: June 2018 Update EquipmentWatch Values™ is the industry’s only source of Fair Market Values (FMV) and Forced Liquidation Values (FLV) covering construction, lift truck and agricultural equipment. Each month our ValueTrend Engine consumes an average of 750,000 market transactions which are cleaned, mapped and fed into a proprietary blend of automated equations managed by our analyst staff. The result is the most accurate, market-driven equipment
MICHAEL QUINLAN
valuations available updated on a monthly basis. Below you’ll find a quick summary of month over month FMV and FLV trending as well as a deeper look into last month’s market activity driving the latest Values™ update.
Month-over-month value trending across the top equipment subtypes for resale and auction:
10 | www.cedmag.com | Construction Equipment Distribution | August 2018
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equipmentwatch.com
MARKET REPORT Construction CONSTRUCTION
SUMMARY
CONSTRUC OVERALL CONSTRUCTION TION
LIFT/ACCESS
TYPE TRENDS
JUNE 28, 2018 VERSION: FREE | UPDATED MONTHLY
AGRICULTURE
BRAND TRENDS
MONTH OVER MONTH
177,781
MARKET VALUE
ASSETS
VALUES
VOLUME
▼ 6.5% FMV
▲ 55.4% RESALE
▼ 8.0%
▼ 0.7%
VALUES
FLV
▼ 1.1%
▼ 1.4%
FMV
VOLUME
AUCTION
FLV
▼ 6.2%
99.81 ▼
95
105
▲ 18.9%
RESALE
AUCTION
MARKET PERFORMANCE Construction auction markets had a strong month in May 2018, with FLVs increasing by 2.0% from April 2018. Resale values remained relatively flat, only decreasing by -0.2% month over month.
PRICE STABILITY INDEX ™
MARKET METRICS
MARKET METRICS
$15,075,703,121
How is the Price Stability INDEX calculated?
REGIONAL TRENDS
YEAR OVER YEAR
MARKET ACTIVITY
COMMERCIAL TRUCK
DEFLATED
STABLE
INFLATED
FMV AND FLV TRENDS
100K
• When comparing May 2018 to the same time last year, overall FMV and FLV have dropped by 6.5% and 8.0%, respectively. Resale market activity has increased by over 55% year over year. • Overall average age and utilization increased in resale markets, while auction had the opposite trend with both decreasing month over month.
VALUE (USD)
85K
MARKET HIGHLIGHTS
70K
55K
• The overall number of construction assets was up again in May, increasing by almost 14%. Overall market value decreased by over 3% month over month. 40K
MARKET FORECAST
MAY 2017
JUN 2017
JUL 2017
AUG 2017
SEP 2017
OCT 2017
NOV 2017
DEC 2017
JAN 2018
FEB 2018
MAR 2018
APR 2018
MAY 2018
Values usually drop in June with the start of summer, and we should expect to see that seasonal trend continue this year. VOLUME CHANGE
MONTH OVER MONTH YEAR OVER YEAR
▼ 6.2% RESALE
▲ 55.4% RESALE
AVERAGE AGE
▲ 18.9% AUCTION
▼ 1.1% AUCTION
▲ 2.9% RESALE
▲ 1.5% RESALE
USAGE
▼ 2.4% AUCTION
▼ 11.4% AUCTION
▲ 0.5%
▼ 12.5%
RESALE
▼ 5.1%
AUCTION
▼ 6.5%
RESALE
AUCTION
CONSTRUCTION 2
Interested in connecting? Visit us at equipmentwatch.com/contact-us
NEXT
TYPE TRENDS
© 2018 EquipmentWatch, an Informa brand. All rights reserved.
Download the Full Repor t Here: bit.ly/equipmentwatchjunerepor t
August 2018 | Construction Equipment Distribution | www.cedmag.com | 11
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>> REGIONAL REPORT
Conestoga Community College Leads the Way for AED Foundation Accreditation C
onestoga Community College in Guelph, Ontario, intends to lead the way as they embark on an initiative to achieve AED Foundation accreditation for their heavy-duty equipment programs. Conestoga would be the first school in Ontario and the second school in Canada, after Grande Prairie Regional College in Fairview, Alberta, to achieve this designation, which is considered by many to be the gold standard in the industry. “We are excited about the progress Conestoga has made,” stated The AED Foundation’s Vice President Jason Blake. “It is our goal at The AED Foundation to have the same diesel technician industry standard throughout North America. Conestoga is already a blue-ribbon school with great heavy-duty equipment and motive power technician apprenticeship programs. We are working closely with them to ensure a successful endeavor. We hope to have other Canadian schools that are currently AED Foundation Alliance, follow in Conestoga’s footsteps.” Other current AED Foundation Alliance schools in Canada include Centennial College in Toronto; Medicine Hat College in Medicine Hat, Alberta; and Northern Lights College in Dawson Creek, British Columbia. Conestoga is one of Ontario’s fastest-growing colleges and a leader in polytechnic education. Its career-focused education programs – from apprenticeships to diplomas, degrees to post-graduate certificates, continuing education and part-time studies – all reflect Ontario’s changing job market and will help build the skills and knowledge that today’s employers are Michael Dexter seeking. Senior Director of Canadian Conestoga’s project-based learning model provides the hands-on Engagement/Midwestern experience that will prepare students for success in a wide range of Regional Manager potential careers – in business and hospitality, skilled trades, engineering and information technology, health and life sciences, community services, or media and design. Conestoga has established partnerships over the years with many successful local, national and international companies, resulting in program enhancements and significant career opportunities for students. The School of Trades & Apprenticeship is the center of apprenticeship and skills training in Canada’s Technology Triangle. Conestoga offers a comprehensive array of programs in the construction, motive power, industrial and service sectors in response to the needs of industry and the growth in the local economy. “We are thrilled to be working with The AED Foundation to achieve AED Foundation Accreditation,” stated incoming Trades and Apprenticeship Chair Joni Jean. “We consider ourselves to be at the forefront in educating the next generation of skilled technicians, and getting The AED Foundation’s seal of approval will further validate that.”
REGIONAL REPORT
MICHAEL DEXTER is AED’s Senior Director of Canadian Engagement/Midwestern Regional Manager. Reach him at mdexter@aednet.org and 630-574-0650 ext. 5124. Pictured from left are Joni Jean, new chair of School of Trades & Apprenticeship; Jason Blake, The AED Foundation Vice President; and Stephen Speers, outgoing chair of School of Trades & Apprenticeship for Conestoga in Guelph, Ontario. 12 | www.cedmag.com | Construction Equipment Distribution | August 2018
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▶ THE AED FOUNDATION DONOR PROFILE
Bejac Corporation Knows It’s Time for the Industry to
BUILD ON THE FUTURE By Heidi Bitsoli ith technology in the heavy equipment industry evolving at a rapid clip, “We want forward-looking information,” says AED Foundation Board Member Ron Barlet. Barlet is president of Bejac Corporation, a Placentia, Californiabased company that has been involved with The AED Foundation for decades, including supporting the annual AED Foundation Fundraising Gala. Barlet serves both on the AED Executive board and as a representative on The AED Foundation board. Bejac has been around since 1953, originally as an underground pipeline contracting business. In 1985, Barlet was hired to liquidate assets and sell off remaining equipment. Before all the gear was gone, a contractor inquired about renting an excavator. Barlet agreed. “That’s how we got started. Heavy equipment rental was in its infancy in the late 1980s,” Barlet says, and it proved a smart move for Bejac. From there the specialty equipment dealer grew, sparked in part by its acquisition of other businesses as well as adding several equipment lines, some of which weren’t normally sold by construction equipment dealers but which dovetailed nicely with the needs of its customers. “From 1999 on, we looked more like a traditional AED dealer,” says Barlet. Today, Bejac caters to the construction, demolition, forestry and recycling industries, through selling, servicing and leasing. It has seven full-service locations as well as three specialty centers, primarily in California, but it also has a presence in Arizona and Nevada. Bejac joined AED in 1995, “Because it’s very industry-specific,” Barlet says. “For many years we just participated in seminars … and around 2011 or 2012, I was asked to join the board of directors.” From there he’s gone on to the executive board, currently serving as senior vice president before assuming the title of chair in 2020. “I’m involved in high-level matters of running the Association,” he says of his work in helping to shape the Association’s vision and bring those goals to fruition. Workforce development is important to Barlet. “There’s a tremendous workforce shortage in our industries. We’re doing everything in our power to get involved with high schools and colleges to help generate a workforce we can hire.” His company also gets involved in shaping the future workforce, visiting colleges to review or help develop technology programs. “We try to determine shortcomings.” Currently Bejac is looking toward opening a training center at a nearby college, working with the school to draft workforce education and development programs, including internships. “We work with them depending on where they are, be it information seeking or developing programs.” Field trips have been arranged, inviting college students to tour and explore the industry. They’re even trying to draw high
W
Your contribution 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, Bejac Corporation, for investing in the future of our industry! To contribute to The AED Foundation annual campaign, visit bit.ly/2018aedfcampaign.
schoolers with revivals of vocational programs. Just 15 to 20 years ago, Barlet says, schools had more vo-tech options, but budget cuts and a redirected focus on attaining college degrees has created a talent shortage. “We cut our knees off in (losing) those types of programs. That’s where we are today.” “We need private partnerships, because engines are expensive and the software is changing. There’s no sense teaching 20-year-old technology when schematics and computer skills are needed.” That’s where The AED Foundation helps. “Whether you’re on the board, a dealer or an employee of a dealer, the fact of the matter is The AED Foundation is the only place I know of where you can get industry-specific information to improve, enhance and educate your dealership.” The Foundation provides a voice for unique challenges in the industry. Outdated and overburdened infrastructure affects heavy equipment in multiple ways. Roads and bridges need to be replaced or updated, yes, but inadequacies that lead to clogged roads affect progress as well. When it’s a challenge for workers to get to job sites, the problem mushrooms. Outsourcing is becoming an issue, too. More companies are hiring outside contractors to do jobs – it may be happening faster in California, Barlet says – but that fuels the need to have a wider, deeper talent pool. One place in particular that Barlet would like to see more improvement is on the training side. “We need to do a better job showing the technicians that come on board that there’s a future for them. Some of our technicians have moved into supervisory roles, management or even become salesmen – we need to show that it’s not just technicians for life. There’s good growth activity.” Some complain about a shortage of employees but don’t take advantage of training. Barlet encourages participation, as well as networking. “The AED Foundation is a great resource to generate new ideas and professionally develop your workforce.”” August 2018 | Construction Equipment Distribution | www.cedmag.com | 13
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DO YOUR TECHNICIANS MAKE THE GRADE? “The AED Foundation Technician Certification Program helps evaluate our technicians and helps us get them the specific training they need to improve their individual capabilities. With a lean workforce, you have to be very effective. Having AED-Certified technicians will help us be more efficient and effective.� David Hyland Vice President, Equipment Corporation of America (ECA)
Not all technicians are created the same. Certify your technicians today, the proof is in their results. Learn more about The AED Foundation and its Certified Technician program by visiting www.aedfoundation.org or call 800-388-0650. TECHAD6.indd Ad_template.indd1 2
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WA JA X CA NAD A TA K E S IT S L ON G HI S TO RY INTO T H E F U TU RE : A R E O R G ANIZ E D CO MPA N Y C O N T IN U ES A PR O U D H ISTORY > > B Y J O S E P H K AY
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B
.J. Coghlin opened a blacksmith shop in Montreal in 1858. That shop grew and advanced with the tech of the times, manufacturing parts for carriages and eventually railcars. The name “Wajax” was conceived after almost a century of continuous business, when Coghlin’s company acquired Watson Jack & Co. Ltd., its first mobile equipment subsidiary. Today, the company is one of Canada’s largest suppliers of industrial products and services. It operates over a hundred stores throughout the country, with clients in forestry, oil, construction and more. David Reid, regional vice president of service operations, explains that the best way to get a sense of the company’s rich history is to listen to its workforce. “As you travel across the region and meet different people, you run into people with deep expert knowledge in a variety of segments. It’s very impressive,” he says. “When you interact with that, you really get an understanding: this team are experts, they know what they’re doing.” Reid adds that growing through acquisitions, as Wajax has, can be a complex and sensitive process. Often, skilled associates with their own habits and codes are learning something like a new language. But, he says, “the common thread is that these people are professionals and are all striving towards delivering a great experience for our customers.”
16 | www.cedmag.com | Construction Equipment Distribution | August 2018
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Since 1978, the Wajax name had really governed three businesses: one for materials handling equipment, one for power systems, and one for industrial parts supply. This created some confusion in the marketplace. In 2016, the company reorganized this structure through an initiative called One Wajax. Today it operates as a unified enterprise.
“Anyone who’s been through a reorganization will tell you it’s a difficult process – a lot of things will occur that you didn’t foresee. As a result of this transformation we’ve improved what we can bring to the table for our customers and our employees.”
“Anyone who’s been through a reorganization will tell you it’s a difficult process – a lot of things will occur that you didn’t foresee. As a result of this transformation we’ve improved what we can bring to the table for our customers and our employees.” Now that teams are aligned across departments and regions, they can develop a more complete view of customer needs. The customer, meanwhile, only sees one sales contact and one invoice. The company’s next opportunity is to sell its own scope. Many customers interact with only a small segment of the company, when another segment might well serve their additional needs. The business has a great opportunity to grow its customer base
from within, and that depends on an excellent sales force. “We’ve been making large investments in training our sales force, giving them a well-documented process to learn from,” says Reid. It’s a massive undertaking, thanks to the company’s size; standardization is key. “Branch to branch, region to region, across the country the customer’s experience of our company is consistent, and it’s consistently great; that’s what we’re looking to achieve.” Wajax, like every other employer in the equipment industry, continues to compete for scarce skilled labor. It’s an ongoing challenge to attract, retain and develop the right people. But Reid points out that the scope of the company offers a wide variety of opportunities. “We’re a very unique player in our business,” he explains. “I think that’s something that attracts people to us. They can work with a wide variety of products, industries, people and vendors that they won’t get exposed to anywhere else.” That’s exciting from a professional development perspective, but Wajax is going further in its commitment to employee health and safety. They launched a wellness initiative in 2017 to support their employees’ whole health; meanwhile, they continue to make improvements in workplace safety. Wajax’s overall TRIF (total reportable incident frequency) in 2017 was 1.45; through June of 2018, it’s 1.15, with a target of 1.00 for the year. “Having a safe place to work is paramount.” says Reid.
August 2018 | Construction Equipment Distribution | www.cedmag.com | 17
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EXPANDING
WOMEN’S ROLES in the Construction Equipment Industry By Clifford Black uring AED’s recent Women in Construction Equipment Roundtable, participants discussed a challenge that was unique to women in the industry. Diane Benck, AED’s first chairwoman, best articulated the concern when she said that women have not necessarily been excluded from the industry, but perhaps they have been prevented from attaining specific roles. “Sex discrimination really occurs in terms of roles within the dealership, not our presence in the dealership. I think women have always been accepted in the dealership, but it’s about the roles that we play, and trying to get more women in those roles. We need to inspire women to seek roles that are not normally held by women,” said Benck. Having women in traditional roles such as human resources and administrative positions can be a game-changer for a dealership. But hiring women to fill all the types of roles within a dealership can have an impact on the skilled labor shortage that has plagued the industry for years. Benck’s comment sparked a thoughtful discussion about how to attract more females to the labor-deficient industry. Participants conversed about gearing marketing and social media advertising toward featuring women who have broken into unconventional roles. The roundtable moderator, Alexis Gladstone, said, “I encourage big organizations to look at their websites and examine how many women are shown in roles from the shop floor to customer service. Women want to see themselves in these career shots.” Providing an accurate picture of the benefits of employment in the industry was another solution discussed at the Roundtable. Step one would be promoting the construction industry for what it really is – fast-paced, energizing, and making a difference in building a better world through
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construction projects, roads, bridges, buildings, and sourcing natural resources. The next step would be making sure this portrayal is shared with and promoted to females. One of the primary purposes of the roundtable was to address historical discrimination in executive roles in the construction equipment distribution sector. In an effort to keep this conversation going, CEDMagazine spoke to a leading lady over at Whayne Supply Company about expanding the roles available to females. When asked about Whayne’s approach to diversifying their workforce, Whayne’s inventory control manager, Aimee Johnson, said that both women and men appreciate the company’s core values. Johnson commented: “We work to promote from within from our skilled and capable candidates, and this is another key item that attracts and retains our talented workforce – for both women and men. We encourage our hiring managers to be open to individuals with different backgrounds and skill sets. Sometimes someone that comes from a different industry can bring as much as or more than someone who has only worked in one industry their whole career – I believe this openness also attracts women to our company, as they know they don’t have to only have a construction background to join our team. We can teach you about the construction industry if you are willing to work hard, learn, roll up your sleeves and maybe even get a little dirty.” One thing is certain: women are up for the challenge of any and all roles in the construction equipment industry. It is crucial for AED members to be vigilant in rooting out any gender bias that may linger from a different time. Women in the industry have come a long way, but there is still much work to be done. Help AED keep the ball rolling by supporting and seeking out female talent for all your workforce needs.
18 | www.cedmag.com | Construction Equipment Distribution | August 2018
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>> CHAIRMAN’S CORNER
LARRY GLYNN CMW EQUIPMENT
Former AED Chairman Larry Glynn Looks Back on More Than 40 Years of AED Membership
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What’s neat about sitting as chair and serving on the executive committee is that you get to interface with dealers from all over Canada and the United States, and there’s always something to learn from someone else.
’ve worked in the heavy equipment industry for 41 years. In 1977, I was looking for a job when I learned of an open sales position at CMW Equipment in St. Louis, Missouri. I’d always wanted to be a salesman and figured I could do the job. I interviewed and was hired for a 100-percent-commission position where they wrote commission checks once every three months. I provided my own car, paid all my own expenses and hoped I sold something. I ended up owning the company, so it worked out pretty well for me. In 1980, the company’s original owners decided they were done with the business – one was in his 70s and the other was in his 80s – and they passed their shares to their successors, who invited me in as a third partner. I used all my savings to buy in to the company and they let me pay the rest off on a payment plan. In 1981, the first-generation owners stepped out and said to us, “This is your company.” We were three young guys who didn’t have a lot of money, and we had to come up with a plan for where we were going to take the company. We decided we would just pick certain things to be really good at, and that’s what we did. Our company is built around rental, new and used heavy equipment for concrete and asphalt construction. CMW Equipment became an AED member long before I started working there. I went to my first AED convention in 1981 with one of the company’s original owners, Mr. Tom McGowan. We met with a lot of manufacturers and told them that we appreciated what they’d done over the years, but we were no longer going to represent them. The decision has been good for us; in the world of construction, we’re small and specialized. My next involvement with AED as an organization was in the late 1980s, through the Young Executives program (later called Future Leaders and currently known as the AED Leadership Development Institute (LDI). I realized I liked being involved, and through the years I participated in Association activities
and served on state boards and in a number of committees. When someone approached me and asked me to serve as AED 2012 board chairman, I said yes. What’s neat about sitting as chair and serving on the executive committee is that you get to interface with dealers from all over Canada and the United States, and there’s always something to learn from someone else. You spend a lot of time talking about industry issues and where the industry is going, and you get to have these conversations with a lot of people who are very successful at what they do. Being an AED member all these years has helped my business. Lots of times issues have come up and the best resources have been other AED dealer members. With buddies at dealerships all over the country, I’ve compared notes on the competition and discussed insurance, legal matters and whether a manufacturer has good products and stands by what they do. I would encourage anyone in the industry to get involved with AED’s networking events. You learn so much when you’re sitting around drinking and talking with everyone. There’s a wealth of knowledge there and so much to learn, both from AED the organization and from all the other people in the industry that are there. I’ve made friends all over the United States through AED and we’ve had such great times. Get involved, go to events, serve on committees and spend time with people from around the U.S. and Canada who are in the heavy equipment industry; it’s a great opportunity to learn. For more information on CMW Equipment, visit http://cmw-equip.com. August 2018 | Construction Equipment Distribution | www.cedmag.com | 19
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CED 2018 ENGINE SHOWCASE Cummins Performance Series Engines
Cummins Performance Series engines for the construction market allow customers to do More With Less. More performance, more reliability, more machine capability, more productivity and more uptime with less fuel usage, less complexity, less weight and less total cost of operation. When developing its next-generation engine portfolio, Cummins set out to deliver a global platform designed with the customer in mind – more of what they want with less operating cost and complexity. The lineup offers a cumulative horsepower range from 74 hp up to 675 hp to suit a wide range of applications. Performance Series engines in the 100 – 430 hp range average up to 10 percent more horsepower and as much as 20 percent more torque than previous models. In addition, engines in this power range are EGR-free, with four featuring Cummins Single Module™ aftertreatment system. This system combines Selective Catalytic Reduction (SCR), diesel exhaust fluid (DEF) dosing/mixing, diesel oxidation catalyst (DOC) and the diesel particulate filter (DPF) into a single canister that is up to 30 percent lighter and 50 percent smaller than the traditional switchback aftertreatment. Learn more about Cummins F3.8™, B4.5™, B6.7™, L9™, X12™ and X15™ engines for the construction market, including how Cummins customers are benefitting from using them in real-world applications, at cumminsengines.com/more-with-less.
MTU Series 1300/OM 471
MTU offers a wide range of economical, high-performance diesel engines for construction, deployment in ports, airport vehicles and ground equipment. MTU engines also have a proven reputation as drive systems for stationary applications and machines, such as pumps and compressors. Covering the 430 - 523 hp power range, the Series 1300 is the perfect engine for your equipment. As a full systems supplier with a wealth of integration expertise, MTU delivers the complete package, optimally tailored to your needs—with both software and hardware. And for even greater flexibility in highly specialized applications, MTU offers various power takeoff options. To ensure trouble-free operation, even under the most extreme conditions, MTU engines must undergo repeated testing in continuous operation under full load in the heat, cold and dust, with frequent load changes. There’s simply no better way to ensure maximum availability. In addition to the well-known longevity of MTU 20 | www.cedmag.com | Construction Equipment Distribution | August 2018
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Isuzu: Diesel for the Future
Dollars earned and relationships maintained define customer uptime and satisfaction, but what if we could monitor machine operation to avoid downed equipment and frozen productivity? In these situations, “prognostics” looks into the future to help provide an advanced event notification system to improve customer satisfaction. When evaluating equipment, understanding failures and predicting operations could help isolate losses and identify when or where a problem will occur. The latest, compact and cloud based computer technologies allow companies to monitor engine data remotely, apply advanced algorithms to the information gathered and use predictive operations to stop a failure or prepare for the inevitable. All of this information flows out through cell towers to feed the customer information about their machines, alert repairing dealers, and confirms the OEM’s equipment is ahead of the competition. With the use of a prognostic system, equipment fleet management is simplified, saving time and effort in equipment maintenance. When regular scheduled maintenance is required, the system can notify the fleet manager by text message or email that the hours are up and an oil change is required. Simultaneously, the fleet equipment management service team is dispatched prepared with knowledge of the engine so parts are at the ready. The online system is updated by the team, providing solid records of timely equipment support. Prognostics is changing our network today and will be a staple of service operations in the future, resulting in greater customer satisfaction, higher performing equipment and a well prepared service network. Can you see the future?
engines, they are also incredibly cost-effective, thanks to their easy-to-maintain design and long service intervals. They minimize expenses, reduce downtime and keep your equipment operating reliably with minimal interruptions. MTU engines are among the most fuel-efficient on the market due to their second-generation common rail injection system and intelligent engine management system. Optimized, efficient combustion using cooled exhaust gas recirculation (EGR) and exhaust aftertreatment with SCR helps them meet the widest range of emissions specifications up to EPA Tier 4 and EU Stage V with the addition of a DOC/DPF module. You can also depend on MTU when it comes to service: as a global player, MTU supports customers around the world with maintenance and spare parts—whenever and wherever they operate. Learn more at www.mtu-online.com. August 2018 | Construction Equipment Distribution | www.cedmag.com | 21
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PAID ADVERTORIAL
MORE WITH LESS:
SPONSORED CONTENT
HOW A SIMPLER APPROACH PAID OFF FOR CUMMINS CUSTOMERS Over the past three decades, the industry has witnessed multiple rounds of emissions regulations from around the world. Some hard lessons were learned in the past as the industry raced to meet regulations through new technologies that not only needed to meet lower emissions but also deliver customer value. The takeaway from these past experiences is simple: innovation that only has emissions regulations in mind is never the answer. The key is to develop solutions that are focused on achieving the customers’ objectives first while also making sure they meet global regulations. When looking at innovation through this lens, it becomes apparent that sometimes the simplest solution is the best one. This perspective drives engine innovation down a path that delivers more of what customers want – performance, productivity, reliability, efficiency and ease of maintenance/installation – with less of what they don’t – complexity and cost of operation. Here are examples of Cummins customers who have found solutions that met emissions regulations and business needs:
Southland Construction in Orlando, Florida, was one of the early beneficiaries of Cummins new Performance Series engines, utilizing the B6.7™ in various pieces of equipment. Jimmy Caldwell, one of the operators, was impressed with the engine’s performance while using it in a Komatsu wheeled loader, noting, “It does everything I need it to do. I think it would be a good motor to try out.” Randy Clark, an employee operating
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a B6.7 powered excavator to lay 48” concrete pipe, said, “The engine has good power, is very strong and handles the load very comfortably. I would recommend the engine to anybody.”
St. Johns Improvement District in Vero Beach, Florida, has the responsibility of making sure farmers’ fields don’t flood. Anyone who is familiar with hurricane season along Florida’s Atlantic coast knows that this can be a tall task. They were able to downsize from a 9-liter engine to a Cummins B6.7 Performance Series engine in one of their pumping stations. The result was improved fuel economy, increased reliability and reduced maintenance. Additionally, the station now runs quieter and cleaner according to technician Randy Glass, who stated, “With the hurricanes, we had over 12 inches of rain in two days, and these pumps ran 24/7 for almost six days. We had great performance and had no problem with them.” Huddig in Stockholm, Sweden, manufactures specialized backhoe loaders. One of the key elements for construction equipment is how smoothly it operates, especially in managing the hydraulic load. The Huddig 1260 Backhoe Loader is a sophisticated piece of machinery with advanced capabilities. Utilization of Cummins Performance Series engines has further increased the capabilities of these loaders for the cable, rail and construction markets. One of the operators, Bengt Thisner, noted, “The good torque and smoothness of the engine yields a steady operation – achieving harmony with the hydraulics.” For over 10 years, Huddig has relied on Cummins engines.
It’s clear that engine technology has taken a turn for the better – less is more, and simpler is better. Cummins full lineup of Performance Series engines includes the F3.8™, B4.5™, B6.7, L9™, X12™ and X15™. The six engines cover a wide array of applications thanks to a cumulative horsepower range of 74 hp to 675 hp. The engines between 100 hp and 430 hp average up to 10 percent more horsepower and as much as 20 percent more torque than the previous models. Engine models across the 100 - 430 hp range are EGR-free, with four featuring Cummins Single Module™ aftertreatment system. This system combines Selective Catalytic Reduction (SCR), diesel exhaust fluid (DEF) dosing/mixing, diesel oxidation catalyst (DOC) and the diesel particulate filter (DPF) into a single canister that is up to 30 percent lighter and 50 percent smaller than the traditional switchback aftertreatment. A customer-focused approach to engine innovation delivers more power, more torque and more productivity with less weight, less maintenance and a lower total cost of operation (TCO). To learn more about Cummins Performance Series engines, visit cumminsengines.com/ more-with-less.
7/19/2018 10:27:09 AM 7/3/18 3:45 PM
LESS IS MORE. LESS COMPLEXITY. LESS WEIGHT. LESS MAINTENANCE. LESS COST. MORE POWER DENSITY. MORE INSTALLATION EASE. DON’T LET ITS SMALL ENVELOPE FOOL YOU, CUMMINS F3.8™ PERFORMANCE SERIES PROVIDES UP TO 173 HP, MAKING IT A CAPABLE REPLACEMENT FOR SOME LARGER ENGINES. ITS EGR-FREE DESIGN IS OPTIMIZED TO MAKE THE F3.8 EASIER TO INSTALL AND MAINTAIN. MORE PERFORMANCE WITH LESS COMPLEXITY.
Single Module™ Aftertreatment
30%
UP TO LIGHTER
DOC
DPF
DEF DOSER & MIXING
SCR
50%
UP TO SMALLER
TO LEARN MORE VISIT CUMMINSENGINES.COM/MORE-WITH-LESS.
©2018 Cummins Inc. Box 3005, Columbus, IN 47202-3005 U.S.A.
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PAID ADVERTORIAL
Isuzu Motors America, LLC 46401 Commerce Center Drive Plymouth, Michigan 48170 3C Phone: 734 582-9470 Fax: 734 455-7581 E-mail: engineswebmaster@isza.com www.isuzuengines.com, www.IsuzuREDTech.com
Company Description Isuzu is a global leader and producer of on-road commercial vehicles, off-road Diesel engine applications and stationary engines. Their consistent focus is on “creation without compromise” to build and maintain a world class organization for power solutions. Over the years, through the expansion of their manufacturing operations, Isuzu products have continued to benefit people in over 100 countries. Their engine manufacturing has now exceeded 26,000,000 globally. Isuzu ensures the most advanced performance and services, with a goal to become the new international standard of excellence in product development, quality, manufacturing systems and customer support. With an uncompromising commitment to continual improvements, Isuzu helps build better products and better partnerships for customers throughout the world.
4HV1 Alternative Fuel Option Coming to Market
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Products/Services Offered Isuzu Diesel engine products have proven to be Reliable, Eco-friendly, Durable, and Technologically Advanced since 1916. Their products, branded under Isuzu REDTech™, provide quiet, low maintenance and fuel efficient solutions for existing and new applications needed today and into the future. From 11.8hp to over 500hp, these engines use a unique technology without a DPF (Diesel Particulate Filter). Each engine is precision tuned for its highest efficiency, while reducing oil and fuel consumption. A long-lasting and robust fuel injection system is incorporated for excellent fuel economy and extended service life. Stringent criteria of lowering NVH (noise, vibration, harshness) are engineered into every Isuzu engine. Each application is designed to meet customer specifications and is engineering validated for each environment. Isuzu REDTech™ engines with reliable performance, durability, and high thermal efficiency help eliminate downtime. All of this is supported by a Distributor and Dealer network along with dedicated corporate professionals who are disciplined in engineering, manufacturing, and management to ensure the right solutions for their customers. Isuzu REDTech™ 4HK1 Power Units
Isuzu Diagnostic Service Tool Provides automatic engine identification
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www.isuzuengines.com www.IsuzuREDTech.com
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Isuzu Diesel Power Units are Reliable, Eco-friendly, Durable, and Technologically Advanced to meet all your applications.
Hydraulic Excavator :: Road Roller :: Truck Crane :: Wheel Loader :: Backhoe Loader :: Concrete Paver :: Crawler Crane :: Motor Grader :: Skid Steer Loader :: Rock Drill :: Road Paver :: Forklift :: Tractor :: Combine :: Power Generator :: Crack Sealer :: Aerial Work Platform :: Water Jet 4LE2X Tier 4 FinalWireline power unit :: Oilfield :: Portable Heater :: Generator with accessories & Light Tower :: Spider Cut Span Saw :: Standby Generator Set :: Hydraulic Pump Pack :: Portable Barge Propulsion :: Jack Up Rig :: Marsh Buggy :: Light Tower :: Pressure Washer :: Road Repair 4JJ1X Tier 4 Final power unit with accessories Truck :: Truck-able Forklift :: Portable Conveyer :: Compressor :: Drainage Pump :: Trash Pump :: Fire Pump :: Oilfield Mud Pump :: Pivot Irrigation System Every Isuzu Power Unit is built to your exact requirements. Every engine has been proven with over 100 years in manufacturing and over 26 million Engines worldwide. Isuzu has been providing solutions for you to wash, light, power, pump, cut, drain, haul and heat with applications for every environment. We can help you with your powering needs today. Contact your local Isuzu Distributor or us direct at 734.582.9470.
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Isuzu Motors America, LLC :: 46401 Commerce Center Drive, Plymouth MI 48170 :: 734.582.9470 :: www.isuzuengines.com :: www.IsuzuREDTech.com
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PAID ADVERTORIAL
Reliable Engines for Construction Equipment MTU offers a wide range of economical, high-performance diesel engines for construction, deployment in ports, airport vehicles and ground equipment. MTU engines also have a proven reputation as drive systems for stationary applications and machines, such as pumps and compressors.
In addition to the well-known longevity of MTU engines, they are also incredibly cost-effective, thanks to their easy-to-maintain design and long service intervals. They minimize expenses, reduce downtime and keep your equipment operating reliably with minimal interruptions.
Covering the 100 - 4,000 hp power range, MTU’s extensive portfolio ensures that there’s always a perfect MTU engine for your equipment. As a full systems supplier with a wealth of integration expertise, MTU delivers the complete package, optimally tailored to your needs— with both software and hardware. And for even greater flexibility in highly specialized applications, MTU offers various power takeoff options.
MTU engines are among the most fuel-efficient on the market due to their second-generation common rail injection system and intelligent engine management system. Optimized, efficient combustion using cooled exhaust gas recirculation (EGR) and exhaust aftertreatment with SCR helps them meet the widest range of emissions specifications up to EPA Tier 4 and EU Stage V with the addition of a DOC/DPF module.
To ensure trouble-free operation, even under the most extreme conditions, MTU engines must undergo repeated testing in continuous operation under full load in the heat, cold and dust, with frequent load changes. There’s simply no better way to ensure maximum availability.
You can also depend on MTU when it comes to service: as a global player, MTU supports customers around the world with maintenance and spare parts— whenever and wherever they operate. Learn more at www.mtu-online.com.
Series 1000/OM 934/936
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Series 1300/OM 471
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Tough Engines for the toughest professionals. High reliability, low consumption.
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MTU engines deliver strong performance over a long service life. Their extraordinary reliability and cost-effectiveness are rounded off with ease of maintenance. Our fuel-efficient Series 1000 -1500 engines based on Mercedes-Benz technology comply with EPA Tier 4/EU Stage V emissions standards. www.mtu-online.com
manufactured by
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optimized by
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2018 AED Chairwoman, Diane Benck of West Side Tractor Sales Co.
From Steel Toes to High Heels: Collaboration and Innovation at the Women in Construction Equipment Distribution Roundtable CLIFFORD BLACK
“What we need to do is create an atmosphere where we can talk about how we mentor people, how we make it an easy career choice and give women the opportunity to have relationships that help them throughout their career. And encourage other women to come into the field.” B R I A N P. M C G U I R E 28 | www.cedmag.com | Construction Equipment Distribution | August 2018
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ED recently held its very first Women in Construction Equipment Distribution Roundtable to address the challenges women face and how to expand their presence in the industry. Make no mistake, the construction equipment industry is and historically has been a male-dominated field. But AED’s recent roundtable marks a turning point for the international trade association. “And it only took 99 years,” joked AED president Brian P. McGuire. From AED’s perspective, the days of staffing
OEMs and dealerships solely with male workers are over. The talent shortage affects not only technician positions but sales, HR, and accounting departments across the industry. Brian McGuire, who gave the opening remarks at the roundtable, said that many of AED’s dealership members were in the process of undergoing transition to female principals. Some of the women who met at the roundtable would say that regardless of the reasons, changes are coming whether we like it or not. Women are ready to integrate into the construction distribution industry. Finding the best way to go about doing this was what the roundtable was all about. The event was structured as a roundtable because “AED’s agenda is not set about
what comes next,” said McGuire. “We thought we would let the group tell us how to proceed.” McGuire also expressed his hope for the roundtable: “What we need to do is create an atmosphere where we can talk about how we mentor people, how we make it an easy career choice and give women the opportunity to have relationships that help them throughout their career. And encourage other women to come into the field.” Alexis Gladstone moderated the event. Gladstone specializes in leadership development, organizational change, and business strategy and has a passion for working with organizations and leaders who want to attract and develop women. When asked about the event, Gladstone responded, “Recruiting and developing women in any industry makes good business sense. Numerous studies have shown the increase in sales and revenue when you have diversity in an organization, and especially in leadership.” Gladstone also remarked, “I hope this roundtable is just the start of the conversation for AED and its members.” The day’s schedule was broken up into four individual segments. The segments were designed to spark brainstorming and creative collaboration about
Women In Construction Equipment Distribution Roundtable Moderator, Alexis Gladstone
August 2018 | Construction Equipment Distribution | www.cedmag.com | 29
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how to give the construction equipment industry a more female-forward atmosphere. They achieved this purpose and provided a forum for some provocative and fun discourse. The four segments were My Personal Path to Leadership, A Panel of Women in Allied Industries, Roundtable Discussion, and Cocktail Hour and Dinner. Below is a review of the individual sections.
My Personal Path to Leadership AED’s first female chair, Diane Benck, kicked off the event by giving the group a glimpse of her experiences in the industry. Benck, owner and vice president of general operations of West Side Tractor Sales and RCE Equipment Solutions, voiced an initial reluctance to hold the roundtable when AED approached her. She said, “I kind of fought being a role model or doing women’s groups, because I spent my whole career trying to blend in. But then I finally realized that I don’t blend in, and there are huge advantages to that.” Benck has been a trailblazer in the business for over 35 years and said she did not give it much thought that she was joining a male-dominated business. “That was just some little obstacle I would figure out how to overcome,” said Benck. “Sexism has been all around me during my career, but I refuse to see it. When you start to see it, it kind of cripples you. You have to overcome it. Earning someone’s respect and having them admire you takes time. As soon as you play the sex card, you are out of the game.”
Choosing to stay on a positive note, Benck shared some advice that she has gathered throughout her career. Those pearls of wisdom included the following: • Being a woman is a huge advantage. • Because you are different, people remember you. • You don’t have to act like a man, but don’t be a wallflower either; be assertive. • Build relationships, because you never know when they will save you. • Character matters more than sex. • Leadership is mostly learned and needs development. • Be tolerant of male behavior, not judgmental. Karen Zajick, president of Norris Sales Company Inc., also spoke about her path to success in the heavy equipment distribution industry. Karen is responsible for running all facets of Norris Sales Co., which is family-owned and has been operating for over 60 years. She provides strategic leadership and establishes goals, strategies, plans and policies. She has a proven executive management track record with over 20 years of experience driving sales growth. Zajick said that her company is attracting the next generation of workers by offering the ability to work remotely. “For the people who have families, we try to be flexible with our staff, because you can do everything remotely other than being in front of a customer.”
Karen Zajick of Norris Sales Co. Inc. 30 | www.cedmag.com | Construction Equipment Distribution | August 2018
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A Panel of Women in Allied Industries The second part of the day consisted of a question-andanswer session with three powerhouse women from other male-dominated industries. Carmen Gercone, Liz Richards, and Nicole Wolter sat on the panel. • CA R M E N GE R C O NE has held several positions during her 24 years with the Cook County Sheriff ’s Office and is currently a superintendent in the Court Services Civil Division. Gercone has a staff of 180 employees, both sworn and civilian, that report to her daily. She is also responsible for overseeing the entry of protective orders into the Law Enforcement Agency Database System for Cook County. • L I Z R IC H AR D S is the chief executive officer of MHEDA, the Material Handling Equipment Distributors Association, with offices located near Chicago in Vernon Hills, Illinois. Liz was hired by MHEDA in January 1995 as executive vice president and was named CEO in 2015. She manages a staff of nine people with an operating budget of just over $3 million. • N ICO L E W O LT E R , president and CEO of HM Manufacturing, joined the company in 2009, working from the ground up in a variety of positions. She has a background in chemical
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engineering and finance, has extensive training on manual lathes and milling machines, and is certified in CAD and 3D modeling. Under her vision and leadership, HM has implemented new technologies and processes that have enabled the company to expand its product lines and grow to over $3 million in annual sales. Following are some of the questions and answers presented: As a woman in a male-dominated industry, what have been your biggest challenges? My biggest challenge was being insecure. When I first started off I was insecure about having to do sales and knowing the process of manufacturing and all the intricacies of engineering. In 2014, once we had gotten the company back in the green, I went to precision machining classes. I got burned with chips of metal, you name it and I did it. I went to night school, I learned CAD, and now I am doing G coding. N I COLE:
What changes have you seen in your industry? The younger generation does not see the same barriers that we once encountered. There is less
LI Z:
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tolerance of discrimination now. I think the value that women bring to the workplace is finally being recognized. N I CO L E: There are more women engineers, more women purchasers, and more women in manufacturing. You are seeing more high school programs for girls in engineering and manufacturing. Some of the internship programs out there are fantastic. For women who are starting families, what advice do you have to achieve work–life blend? For a number of promotion interviews I have been asked how I would be able to manage departments while caring for five children. I tell them all the same thing: managing a department is a lot of the time the same as managing a household. When dealing with sheriffs and kids, I recommend giving them what they need and not what they want. Nowadays we women can have the career and the family if we want. It all just depends on what order we want to do it in.
CA R M EN :
A unique characteristic that women bring to our work lives and personal lives is authenticity. How do you bring your authentic self to the job every day? Be confident and be yourself. Be simple and clear with your directions and never ask someone to do something that you would not do yourself. L IZ: Working in an all-female office, sometimes we do not have each other’s backs and we will get competitive with each other. We all need to be there for one another and champion each other. I am a firm believer in talking through things and aiming for harmony.
Roundtable Discussion The second half of the day started off with the participants breaking into three smaller groups, discussing a series of questions, brainstorming within the smaller group, and then coming together to discuss the findings. The group really got swinging during this session to tackle some of the tough questions facing the industry and AED. Following are some of the questions that were posed to the group and some of the more innovative responses. What can we do to attract more women in the industry? •
•
•
CA R M EN :
The moderator of the panel, Alexis Gladstone, emphasized the importance of having the input of women from different industries. “I think it was great to have these other women on the panel. It shows that women in other industries or lines of work have some of the same challenges, thoughts and successes that many women in the room did.” Another participant commented, “Having professional diversity is what made the panel interesting. It was great to have different perspectives because it allowed each of us to relate in our own way to the panel.”
•
“Having a robust maternity leave program will help attract women who want to advance their career and have families. Using a flex-time program allows people to manage their schedules and get work done.” “Structured internship programs help show the different aspects of dealerships to a younger generation of women that might not be familiar with the inner workings of the industry.” “How we put our story out there can have the effect of attracting female talent. We must show young girls and women that our lives are cool and our lives are fun. Sure, we get dirty, but we also get cleaned up and come to events like this.” “We need to identify what women look for in employment these days. It seems that an organization’s culture is very important to female job seekers. Companies must have a way to communicate their initiatives through their websites or marketing materials.”
What can we do to support other women in the industry? • “Moving away from the 8-to-5 mentalities will help support women by providing the flexibility they need to manage careers, families, and professional development. It just simply is not the case that if you’re not in the office you’re not working. Women working remotely need to be given the same amount of trust.”
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•
•
“Leave the ladder down. Once a female has broken through into the industry, they must leave room for other females to come up. After all, we are mentors and we are leaders.” “Make sure that all women’s salaries are equal to that of their male counterparts that are doing identical work.”
How do we conversation? •
engage
men
with
this
“Many of us saw resistance when we announced we would be attending this meeting. Perhaps a more well-defined mission statement would help raise awareness as to the leadership skills we are fostering here. After all, we cannot bring about change in a vacuum, and we need to engage men if we want this to succeed. Perhaps inviting men to events like this will help show them what we are all about.”
What can AED do to forward this movement? What would you like to see? •
• •
•
•
“Keep the ball rolling! If we don’t have leaders that touch every dealership and send out our initiatives, our leaders will not see it as important.” “Perhaps include a diversity metric in the next Cost of Doing Business Survey that AED publishes.” “I would love to see at the AED Summit that they do something showing the benefits of diversity in the workforce. What better time to show this off than at Summit where all the industry leaders and dealers gather.” “AED board members were really excited about this event. There was lots of support from men in the industry, and they want to continue the professional development of women. The consensus among the AED board members was that this event would only be the beginning of a lasting movement.” “I think many industries have their challenges when it comes to recruiting and developing women. Some are really good at recruiting them, but they don’t stay, or aren’t promoted into leadership at the same percentages. Other industries don’t even know where to begin. This was a great start by AED.”
Cocktail Hour and Dinner Many solid relations were forged during the working portion of the day, but the cocktail hour and dinner gave the women an opportunity to unwind and have some fun together. CED Magazine had a chance to sit down with one of the roundtable participants, Stephanie Sczpanski from Leppo Rents / Bobcat of Akron, who told the magazine, “The roundtable provided a place to listen, challenge and communicate with other women. We were able to discuss our advantages and our concerns and to share the value of being a woman in this industry. It’s not only about being a woman, it’s about standing up for yourself, showing your value, being assertive, and taking care of the people that support you in your role, whether you are male or female.” Sczpanski was particularly appreciative of the networking that occurred at the event. “The networking provided is especially valuable at the roundtable. I met some very talented, motivated and hardworking women that I will continue to stay in touch with. Being in a predominantly male industry, where I may be the only woman in the room, it was very empowering to be surrounded with other women that face the same rewards and challenges day to day in our industry.” Moderator Gladstone said, “I believe everyone’s network should include people in the same industry or line of work as well as those outside. Each of these groups can bring unique points of view and connections. Based on the conversation at my dinner table, it felt like people got a lot out of the networking time.”
What was truly remarkable about the WICE event was the participants’ ability to provide positive discourse and really hash out the issues. Not only did the participants tackle some hard questions facing women in the industry, but they had a lot of fun doing it. Given the success of this event and the clear directives that were set out for AED, it is certain that the Association will continue their efforts to open up the industry to the women of tomorrow.
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G O O D C O M PA N Y :
BY KAREN ALGEO KRIZMAN
Whether it’s wheels or track pads, Superior Tire & Rubber Corp. wants to keep the equipment industry rolling along.
Founded in 1964 as a tire retailer, retreader and molder, the company was purchased 10 years later by Henri LeMeur Sr., and today designs and manufactures polyurethane and rubber industrial components. LeMeur’s sons currently run the operation, with Henri LeMeur Jr. serving as CEO and William LeMeur as the executive vice president. “We have essentially six different product lines, consisting of material handling, industrial tires and wheels, construction, agriculture, road and parking maintenance, and engineered components,” said Kevin Rotondelli, Track Pad OEM/Aftermarket National Sales Manager. “We cover a lot of different markets. Where we fit with AED is, obviously, construction.” Specializing in rubber and polyurethane track
pads, as well as tire and wheel assemblies for a variety of equipment in the construction industry, the company is a leading OEM supplier and takes great pride in its products, guaranteeing that they will last a minimum of 2,000 working hours. “The biggest thing to us is offering products to customers that are quality and that we know are going to last,” Rotondelli said. “We don’t like to sell the customer a product that is not going to last them through a certain amount of life. We’ve really been changing the industry in the sense that we’ve put guaranteed work life on our products.” The 2,000 working hours guarantee is a rarity in the industry, according to Rotondelli. “It’s something that doesn’t exist. You don’t find other manufacturers or distributors that have that level of guarantee.”
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buy from us, you’re buying direct from the manufacturer,” Rotondelli said. “We own the process from cradle to grave. We have a full engineering team. We manufacture all the tooling in-house. We make the product ourselves.”
In the case of the CUSHOTRAC® ULTIMATE™ track pad that was designed specifically for asphalt milling machines, the company is so convinced the product will outlive the 2,000-hour warranty that it offers an upgradeable guarantee package of up to 3,000 working hours. “The biggest thing for a contractor is, really, how long are these things going to last,” Rotondelli said. “Because those machines are put through such a harsh environment and they’re used so much, that’s one thing the customer doesn’t want to have to worry about.”
Because it’s not importing completed products, Superior Tire has complete control over the cost that it charges to its customers. “If we’re seeing increases in costs of material that we, unfortunately, have to buy from overseas … we can control the process by being more efficient, so we help the customer maintain the same pricing by implementing more efficient processes,” Rotondelli said.
Superior Tire can make such promises because, unlike some other tire and track pad suppliers, it manufacturers all of its own products on-site at its Warren, Pennsylvania, headquarters, which includes more than 160,000 square feet of production, testing and general operations space. Between its Warren headquarters and warehouse in Los Angeles, the company employs just shy of 300 people. “When you
“We’re
“We’re constantly implementing new processes and we’re constantly reviewing our vendors to buy not only the cheaper products, but to buy the better quality products. We’re constantly evolving.”
constantly
implementing
new
processes and we’re constantly reviewing
our vendors to buy not only the cheaper products, but to buy the better quality products. We’re constantly evolving.”
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SmartEquip A Closer Look: By Karen Algeo Krizmanz
SmartEquip wants to help equipment distributors and owners achieve maximum productivity with minimum wasted effort or expense.
“SmartEquip is a company that provides software solutions to the equipment industry that drive shop, procurement and e-commerce efficiency,” explained Ron Piccolo, executive vice president of sales and marketing for the Norwalk, Connecticut-based company. The company’s software is unique because it provides a multi-brand parts library combined with a point-to-point procurement system, acting as “the conduit that facilitates the transaction between the equipment owner and the OEM or dealer,” Piccolo said. “What SmartEquip does for fleet owners is a game changer. Through our agreements with over 350 manufacturers and suppliers across the globe, we have taken all of the
parts diagrams and support manuals and brought them into one place,” he said. “So if you’re an owner of multiple brands of equipment across multiple locations, rather than having to keep all that – all the parts manuals, operator manuals and service manuals – updated and accurate, we deliver it all in a standardized format to each authorized user through a single signon, so you can access everything you need on one screen instead of having to have multiple logins with multiple portals. The end result is an enormous improvement in efficiency. We typically see the time it takes to identify and order a part reduce from an average of 40 minutes without our software to less than 10 minutes utilizing our software. The accuracy of the orders is also improved, which leads to an increase in utilization.”
What SmartEquip doesn’t do, however, is impede the relationship between manufacturers, dealers and equipment buyers. “We value relationships,” Piccolo said. “Initially when we introduce our company to people who have not heard of SmartEquip, they get concerned that we’re going to take over the buying relationship, but we don’t.” Piccolo also wants to make it clear that SmartEquip is not the Amazon for parts. “We’re not, because we’re not an open network,” he said. “What we do is connect the manufacturers and the dealers directly to the customers; and we embed their parts and their support information into their customers’ workflow. So rather than saying here’s a part, buy it for as cheaply as you want from across any of these suppliers, we connect the customer directly to the dealership.” Each SmartEquip customer gets a secure login to the company’s software where they can peruse manufacturers’ manuals and are routed to the content that they need. The software is
an adaptive, responsive design, so it works on a phone, tablet or desktop computer. “You’re always in the SmartEquip environment,” Piccolo said. “We’ve built integrations in the background with the manufacturer, so we are delivering to the customers the manufacturer’s information and the dealer’s information. We don’t take ownership of the transaction at any time. We don’t buy the parts, we don’t sell the parts. We don’t mark up the parts. Our role is to make sure customers get the right part for the right machine at the price the customer and dealer have agreed upon.” Founded 18 years ago by Alex Schuessler, a co-founder of Caterpillar Rental Services Network, and other equipment industry veterans, SmartEquip originally targeted the larger rental fleet market. “We started off with very large fleets because that’s where the value proposition was,” Piccolo said. “For United Rentals or Sunbelt, to manage all of this content across multiple locations with hundreds of brands was a nightmare.”
The company has since ventured “down market” to contractors and smaller fleets. “We’ve made it very affordable for fleets of all sizes to utilize the software and get on board,” Piccolo said. “The product really creates efficiency from parts identification all the way to payment of the invoice. We have also introduced e-commerce software so dealers can support their customers online.” Today, the company employs 60 people and is still led by a management team that comes from the equipment industry. “We are former dealers and rental equipment people so we understand the importance of parts sales to dealerships,” Piccolo said. “It’s a high-margin business that is extremely important to the health and success of the dealership. When we develop new products
we always make sure we are delivering value to our OEM and dealer partners. We want to make sure that we support the relationship between the customer and the dealer. We don’t want to get in the way of that. We simply want to provide the mechanism that allows the dealer to get the order when the customer needs a part – period.”
DELIVERING SUPERIOR CUSTOMER SERVICE FIRST THINGS FIRST: M A S T E R
T H E
B A S I C S By Christine Corelli
It goes without saying that developing a reputation for superior customer service is an imperative for business success. But I’m always saying it! So should you – to your employees. Customers don’t need much of an excuse to head over to your competitor if your business falls even the slightest bit short in the level of service you provide. And in today’s highly competitive marketplace, you can’t afford to lose even one customer. ....The Experience Matters!
We hear so much talk today about providing a consistently great “customer experience,” and the importance of putting the “wow” factor into that experience. We also hear a great deal about consistently improving processes and procedures, and using state-of-the-art technology to make it easy for the customer to do business with us. Yet there are far too many organizations that have not even mastered the basics.
Basic Five-Step Process for Serving Customers Answer the phone and greet customers in a friendly and highly professional manner. • • • •
“XYZ Equipment, this is Susan, how may I direct your call?” “XYZ Equipment, Parts Department, this is John, how may I help you?” If you know the customer, be sure to make them feel important. “Oh, hello Mr. Smith, how are you today?” Remember Norm from the TV show “Cheers”? He was so well loved and is still remembered to this day. Why? Because he knew everyone’s name! When a new customer comes in to your dealership, walk toward them and extend your hand as you say, “Hello, I’m John. What brings you in today?” (Not “Can I help you?” – too boring!)
Ask how you can help, and then listen. •
Perhaps the biggest difference in the way we did business in the past and how we will need to do it in the future is that we will have to be better listeners. Demonstrate that you’re listening by maintaining eye contact and reconfirming what the customer wants. This is often referred to as “paraphrasing.” As my speaker colleague Jeffrey Gitomer says, “You will never listen yourself out of a customer.”
Help customers. • •
Tell them what you will do, and do it. It’s the most important part of your job. If the customer has a problem, take ownership to resolve the problem. Refrain from simply handing it off to someone else unless it’s absolutely not yours to solve. Provide the customer with more help than they ever dreamed would be possible. This includes being far more knowledgeable than any of your competitors.
Ask what more you can do. •
Never hang up or say goodbye without asking, “Is there anything more I can do for you today?”
Thank customers for their business. •
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Customers want to be appreciated – very appreciated. Never take them for granted. Thank them often.
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More Basics Answer the phone and greet customers in a friendly and highly professional manner. • • •
•
“XYZ Equipment, this is Susan, how may I direct your call?” “XYZ Equipment, Parts Department, this is John, how may I help you?” If you know the customer, be sure to make them feel important. “Oh, hello Mr. Smith, how are you today?” Remember Norm from the TV show “Cheers”? He was so well loved and is still remembered to this day. Why? Because he knew everyone’s name! When a new customer comes in to your dealership, walk toward them and extend your hand as you say, “Hello, I’m John. What brings you in today?” (Not “Can I help you?” – too boring!)
Ask how you can help, and then listen. •
Perhaps the biggest difference in the way we did business in the past and how we will need to do it in the future is that we will have to be better listeners. Demonstrate that you’re listening by maintaining eye contact and reconfirming what the customer wants. This is often referred to as “paraphrasing.” As my speaker colleague Jeffrey Gitomer says, “You will never listen yourself out of a customer.”
Help customers. •
•
Tell them what you will do, and do it. It’s the most important part of your job. If the customer has a problem, take ownership to resolve the problem. Refrain from simply handing it off to someone else unless it’s absolutely not yours to solve. Provide the customer with more help than they ever dreamed would be possible. This includes being far more knowledgeable than any of your competitors.
Ask what more you can do. •
Never hang up or say goodbye without asking, “Is there anything more I can do for you today?”
Thank customers for their business. •
Customers want to be appreciated – very appreciated. Never take them for granted. Thank them often.
Make a positive first impression. There’s nothing worse than walking into a place of business and being ignored by the person behind the counter because they are on a personal call. And if they are not dressed nicely and neatly, that positive first impression is not going to occur. Scrutinizing customers may think that if a dealership is lax with professionalism and dress codes, they may be lax in the level of service they provide. Make it mandatory that techs and parts and service managers wear uniforms. Your equipment and the way it’s displayed should be impressive, but your facility is also a part of your presentation. When a customer walks into your place of business, it should shout cleanliness and orderliness. The outside of your facility should be nicely landscaped and without debris anywhere near the building. Your washrooms should be clean. If you think these things are not important to customers, you are dead wrong! 40 | www.cedmag.com | Construction Equipment Distribution | August 2018
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Respect the customer and be courteous at all times. Customers are spending their hard-earned money at your dealership. Give them respect and courtesy, even if they are difficult. Never judge or correct them. Refrain from saying, “Why did you let that mechanic touch that machine?” or “You should have used the oil testing kit.” Demonstrate an urgency to serve. If you don’t, customers will go elsewhere. Answer every call by the third ring. Sound “ready to serve.”
• •
• •
Return calls promptly, no longer than 90 minutes later. Find parts fast. Train others to jump in and help when needed. Provide the fastest field assistance possible. If your service manager is getting bogged down, determine ways you can assist. Provide a 24-hour hotline. This is, indeed, a service basic expected of you by your customers. Handle complaints with professionalism. If you’ve read my articles or attended my seminars, you know how to use “verbal cushions” when a customer is angry. This is a communication technique taught by customer service trainers. These words and phrases “cushion” a customer’s displeasure and help you to service them more effectively. The verbal cushions below communicate a sense of concern, promote cooperation, and display empathy. Memorize them so that you can apply them in challenging situations. • “I apologize that this occurred, John.” • “I can understand why you’re upset.” • “I’m very sorry this has happened to you.” • “I apologize if there’s been a misunderstanding.” • “I can understand why you would be unhappy.” • “I understand your position.” • “Thank you for bringing this to my attention.” • “I agree with you completely. This is crucial to the job you’re doing.” • “I recognize the urgency involved. Let me take care of this immediately.” • “I want you to walk out of here a happy customer.” Apply the highest levels of communication. In fact, over-communicate! • Obtain complete contact information, machine location, model, year, hours used, etc. • Use words and phrases that impress customers: “How can I help you today?” “Is there anything more I can do for you today?” “My pleasure.” “You’re more than welcome.”
“I will keep you informed of our progress.” “We appreciate your business.” “How was the level of service today?” Parts and service managers: ask the customer, “How would you like me to follow up?” Over-communicate with customers, including your internal customers. Make sure all departments have all the important information they need. Let them know when you can get back to them with an answer. Reach out – call customers even if it’s only to keep them informed on what you are doing to help them. Use text messaging. Most people dislike using the phone these days.
Build trust. • • • • • •
Do what you say you are going to do when you say you are going to do it. Follow up. Fix it on time, and fix it right the first time. Deliver it on time. Never make a promise you can’t keep. Under-promise, over-deliver.
Exceed expectations. This is an important basic of customer service. Today’s customers have high expectations. Meeting them is good, but not great. Exceeding expectations in every way possible is, by far, the best way to obtain customer loyalty and a great way to get customers to talk about you. Strive to exceed expectations at every opportunity. Stand on your head for your customers. In one of my seminars, a service manager told me he stayed with the tech on Christmas Eve, so the customer could pick up his machine and get back to work the day after Christmas. The customer told them he will never stop buying and getting his equipment serviced by that dealership.
Once you and everyone in your company have mastered the basics of customer service, think of how you can add value, make it easier for customers to do business with you, streamline processes and procedures, and examine “moments of truth” (times when a customer provides you with an opportunity to impress them). Then, add the “wow” factor. If you do this, you will be in a better position to establish higher levels of customer loyalty and maintain strength in the marketplace.
With unrivaled expertise, strive to deliver intuitive and proactive service and a consistently superior customer experience. August 2018 | Construction Equipment Distribution | www.cedmag.com | 41
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EAGLE POWER AND EQUIPMENT VP CHOSE A C AREER IN THE HEAVY EQUIPMENT INDUSTRY TO WORK WITH FAMILY
BY MEGAN
M A T T I N G LY- A R T H U R
Bridget McDonald is one of a growing number of women working in the heavy equipment industry and, like many women, she was drawn to this type of career due to family connections. McDonald’s father, Jerry, worked for Case Power and Equipment for 25 years. However, other than attending occasional company events, McDonald’s actual exposure to the heavy equipment industry was rather limited. That all changed in 1996, when she, her father and her brother, Matt, bought Case’s Montgomeryville, Pennsylvania, and New Castle, Delaware, stores – and Eagle Power and Equipment was born. “Eagle Power and Equipment is a familyowned business,” McDonald says. “When we purchased the company, I didn’t have much experience in the industry at all. I just wanted to work alongside my family in a business and industry that offered a lot of opportunities.” Jerry McDonald passed away in 2015, just one year before Eagle Power and Equipment celebrated its 20th anniversary. His son,
Matt, took over as company president, and Bridget serves as vice president. Eagle Power and Equipment rents, sells, maintains and repairs construction and industrial equipment from Case, Kubota and other well-known brands. In addition to the Montgomeryville and New Castle dealerships, it also boasts a third location in Eagle (Uwchlan Township), Pennsylvania.
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As a woman in a male-dominated industry, McDonald has faced her fair share of struggles specific to her gender. During her brief stint working in her dealership’s service department, she often encountered customers who didn’t respect women or didn’t believe that a woman could give them the answers they needed. But McDonald didn’t let it get her down.
“I decided to basically just ignore it after a while,” she says. “You can either choose to get very offended or very upset about it, or just accept the fact that people at that point in time when I was working there weren’t willing to change their minds about females. Just move on and get them the answers they need from someone who makes them feel more comfortable.” Fortunately, McDonald says, things are different now: “I really feel that those attitudes have changed over time as the result of a general change, a universal change in thought,” she says. “I think the division of male and female roles in the workplace has changed; I notice it in our industry. Also, I think people in this industry aren’t as concerned about ‘male’ and ‘female’ when there’s a lack of workforce in general.”
To bring more workers into the industry – whether male or female – McDonald suggests stressing the fact that dealerships are good businesses that offer strong careers and the opportunity to learn a wide variety of skills. “The opportunities in the heavy equipment industry are really diverse: accounting, sales, parts, service, etc.” For women starting a career in the heavy equipment industry, McDonald has this advice:
“Be your best self, get your customer in and out, and make them as happy as you can. Just try to deal with situations the best you can, and as long as you put your best foot forward and have passion for what you do, you’ll be welcome in the industry. It’s similar to any job you might do, in that your goal is to do your best and help out as many people as you can.” When she’s not busy performing her duties as vice president of Eagle Power and Equipment, McDonald enjoys cooking, spending time with friends and family, and going to the beach.
To learn more about Eagle Power and Equipment, visit www.eaglepowerandequipment.com or connect with the company on Facebook, Twitter and Google+.
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JOURNEY TO THE TOP SANY America CEO went from working on an automotive assembly line to serving in an executivelevel position in the heavy equipment industry M E G AN
M AT T I N G LY- A R T H U R
To learn more about SANY America, visit www.sanyamerica.com or connect with the company on Facebook, Twitter and Google+. 44 | www.cedmag.com | Construction Equipment Distribution | August 2018
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D
oug Friesen has worked in the heavy equipment industry since 1998, but his journey to the top actually began in the automotive industry more than two decades earlier, when he accepted a position as an assembly line worker with General Motors.
It wasn’t a glamorous job, but Friesen was willing to start at the bottom for a chance to make it to the top. “I was desperate to get a start and was willing to start at the bottom for that chance,” he said. Doug Friesen spent 21 years working for General Motors and Toyota, and it was while he was at Toyota that he honed the lean manufacturing skills that would in time bring him to the heavy equipment industry. “In 1998, JCB called me and shared that they were opening their first manufacturing plant up in Savannah, Georgia,” Friesen said. “They were seriously interested in introducing lean manufacturing to their operations and were looking for candidates with this direct skill. My years at Toyota uniquely qualified me for just that type of position. I was impressed with the JCB organization and it did not take me long to say yes to the challenge. I joined JCB as the vice president of operations and was responsible for starting the company’s manufacturing operations in North America.” While at JCB, Friesen gained exposure to the sales and marketing, operational, and parts and service segments of the business. From there, he was recruited by Terex into the position of general manager and vice president of the company’s North American crane division and was tasked with using his lean manufacturing skills to help turn the division around. In that role, Friesen saw Terex products from design to the sales and marketing stages. His success led him to accept the position of general manager and vice president of Demag Cranes, and finally to a role at Terex headquarters where he served as an officer of the company, responsible for global lean systems, global purchasing and global safety.
In July 2017, Friesen joined SANY America as CEO and is working furiously to establish SANY as a brand of choice for North American customers. He reports directly to SANY’s president and chairman, and enjoys unprecedented support from the team at the company’s Chinese headquarters. “We are completely aligned in our mission for SANY North America,” Friesen said. “I have been given the best support and the necessary resources to carry out this mission, which is a blessing because we can move fast and with purpose.” Looking back, Friesen is glad about his decision to move from automobiles to heavy equipment: “I have often said that moving from the car industry to the heavy equipment industry is the best move I ever made. For the first time, you can actually get to know your dealers and customers. The car industry was too big – the heavy equipment industry is small and quaint in comparison. I’ve made lifelong friends from all over and I truly enjoy working together to try and find solutions or that unique formula that makes our dealers and customers successful.” To others who may be considering working their way up in the industry, Friesen has this advice: “No matter where you are in this industry, there are no limitations. You can achieve what you believe. Don’t forget where you came from; this has a double meaning: One, stay humble and don’t forget how you started, and, two, at every position along the way, remember the issues and struggles you faced, and how what you do contributes to the whole of the organization. I have found that when you take care of the organization, the organization will take care of you.”
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ORLANDO, FLORIDA
FEBRUARY 4-7, 2019
Make history at this year’s Summit in Orlando, Florida as AED Celebrates our 100-Year Anniversary! After a successful 2018 Summit, AED has been working hard to prepare for an exciting 2019, and we are excited to share some big news! AED is thrilled to announce our keynote speaker and featured presentations for the 2019 Summit.
And don’t forget, AED will be celebrating a big milestone at the 2019 Summit, our Centennial Celebration! We invite you to join us for this exciting event and register by November 16, 2018 to take advantage of our early-bird pricing!
R e g i s t e r f o r t h e 2 0 1 9 A E D S u m m i t t o d a y a t w w w. a e d s u m m i t . c o m If you need assistance registering, please call 800-388-0650.
MEET YOUR 2019 SUMMIT KEYNOTE SPEAKER AND FEATURED PRESENTATIONS!
KEYNOTE SPEAKER
John Boehner John Boehner will be joining us in Orlando for the 2019 Summit! A former small businessman,
John Boehner served as Speaker of the United States House of Representatives for nearly five
years (January 2011-October 2015), during which
he led the drive for a smaller, less costly, and
more accountable federal government. Boehner represented the Eighth Congressional District of Ohio in the U.S. House from 1991 to 2015. He now
serves as Senior Strategic Advisor for Squire Patton
Boggs LLP, one of the world’s foremost law and public policy firms.
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F E AT U R E S P E A K E R
Rich Karlgaard One of the most influential and respected figures in the technology, economic and business worlds, Rich Karlgaard advises audiences on how to harness an organization’s disruptive spirits to maximize business opportunities in the global marketplace. Rich is the thought leader that Fortune 500 companies, small businesses and national associations turn to for a reliable roadmap of what’s to come.
F E AT U R E D P R E S E N TAT I O N | O E M PA N E L
J A S O N T. D A LY
Global Director, Marketing & Support, John Deere Construction & Forestry Company
R I C H A R D G O L D S B U RY President, Doosan Bobcat
S T E P H E N R O Y,
President, Volvo Construction Equipment
PHILIP KELLIHER Vice President, Caterpillar Inc.
P E T E R M AY R
President, Liebherr Construction Equipment
M O D E R AT O R : J. MICHAEL MARKS
Indian River Consulting Group
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YO U R A E D M E M B E R S H I P P R O V I D E S S O LU T I O N S 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.
A E D L EG A L C A L L C O U N S E L 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
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.
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With CDK IntelliDealer™ 5.0, you’ll have a whole new outlook on your work day. You told us what you wanted in an updated DMS, and we listened. A customer influenced interface, an improved menu system and better messaging capabilities are just the start of the enhancements you’ll find. Increase dealership-wide efficiencies with IntelliDealer 5.0.
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