September 2018
CED
Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership
AED’s
Leadership Development Institute Discover how participants generated an average annual net income impact of $481,495 for their dealership
n Member Spotlight Ditch Witch: Global reputation, worldwide distribution network
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n Journey to the Top RMT Equipment
president and his father built the company from the ground up
n Recruiting Women
The sky is the limit for recruiting women in the construction equipment industry
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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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DRIVING DEALERSHIP SUCCESS
GENERAL EQUIPMENT COUNTS ON e-EMPHASYS “Our customer satisfaction with e-Emphasys has definitely increased as we are able to get information. We’re able to get real-time looks at inventories and get answers to our customers when they’re sitting right in front of us in the office.”
JON SHILLING, CEO AND PRESIDENT
GENERAL EQUIPMENT & SUPPLIES COMPANY
Fully-Integrated Software Solutions Designed for the Equipment Dealer and Rental Industry
Business Intelligence
Mobile Field Service
ERP
CRM Solution
Customer Portals
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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.
cdkglobal.com/newday
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© 2018 CDK Global, LLC / CDK Global is a registered trademark of CDK Global, LLC. 18-5611
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contents
CED Magazine | September 2018
24
vol. 84 no. 9
www.cedmag.com
Over the last seven decades, Ditch Witch has established a global reputation and a worldwide distribution network. Its American-made line comprises trenchers, directional drills, vacuum excavators, and more; but in 1949, the company started with a single product and a single idea.
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Leadership Development Institute AED’s Leadership Development Institute (LDI) is the only industryspecific 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.
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Recruiting Women
With a significant portion of the heavy equipment industry's workforce nearing retirement and a concerning lack of young workers or new hires available to take their place, the workforce crisis looms large in the minds of many dealers. When it comes to recruiting women in the construction equipment industry, the sky is the limit.
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Journey to the Top The Lefebvre family has an extensive history in the heavy equipment industry. Bob Lefebvre – who once served as a vice president for hydraulic breaker manufacturer Tramac – and his son, Marc, have long shared a passion for both heavy equipment and dealer development.
September 2018 | Construction Equipment Distribution | www.cedmag.com | 3
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contents
CED Magazine | September 2018
>> EDITORIAL
vol. 84 no. 9
INSIDE
Editor in Chief SARA SMITH ssmith@aednet.org
26 | Art and Horsemanship
Veteran and heavy equipment technician saves lives with art and horsemanship.
Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com
29 | Environmental Sustainability
Here’s a look at environmental sustainability within the construction equipment industry.
AED Graphic Design Intern PHOEBE DEFENBAUGH design@aednet.org
36 | Wells Fargo
>> WRITERS Heidi Bitsoli Clifford Black John Chapin John Crum Daniel B. Fisher Sean Fitzgerrel Brian Frederick Joseph Kay Megan Mattingly-Arthur Michael Quinlan Stephanie See Eric Stiles
>> ADVERTISING Vice President JON CRUTHERS 800-388-0650 ext. 5127 jcruthers@aednet.org
Will a rise in rental prices be a driver of sales?
16 | Regional Report
Sean Fitzgerrel discusses his recent travels with with dealers from the Southeast Region.
40 | Equipment Watch
17 | The AED Foundation Donor Profile
44 | Cutting Ownership Costs
Keeping talent on tap,Vice-chair pushes for continuous education
18 | Capitol Corner
Every two years politicians, pundits and newspaper editorial boards proclaim the importance and high stakes of the upcoming election.
19 | Right to Repair
Here are the ins and outs you need to know regarding right to repair in the construction equipment industry.
20 | Your AED Membership
Your AED membership makes dollars and sense.
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
Q2 in review: Rental update.
Take care of business where the rubber meets the road with a look at tire and track maintenance.
45 | 1, 2, 3 Misconceptions
We examine three misconceptions about construction technology.
46 | Sales Success
There are four essential ingredients needed to achieve success in sales and business.
48 | Managing Fire Risks
AED Preferred Provider Sentry Insurance discusses how dealerships should manage fire risks.
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 | September 2018
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DEBT CAPITAL | SYNDICATIONS | TREASURY SOLUTIONS | RETIREMENT PLANS | INTERNATIONAL SERVICES
Your Bottom Line Is Our Top Priority. Solutions you need from bankers who know your business.
Martin Brown | 214.987.8850 | www.bokfinancial.com
© 2018 Services provided by BOK Financial Equipment Finance, Inc., a subsidiary of BOKF, NA, Member FDIC. BOKF, NA is a subsidiary of BOK Financial Corporation.
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Mark Your Calendar for AED’s
Upcoming Events! Sept. 26-27
Oct. 10-12
Oct. 25-26
Executive Conclave MGM National Harbor 101 MGM National Avenue Oxon Hill, MD 20745
Leadership Development Institute DoubleTree Hotel Chicago O’Hare Airport 5460 N. River Road Rosemont, IL 60018
Advanced Rental Management Seminar Courtyard Denver Airport 6901 Tower Road Denver, CO 80249
Nov. 7-8
Nov. 8-9
Nov. 15-16
Small Dealer Conference Royal Sonesta New Orleans 300 Bourbon St. New Orleans, LA 70130
Branch Management Seminar Hyatt Regency Dallas 300 Reunion Blvd Dallas, TX 75207
Sales Management Seminar Hampton Inn & Suites Chicago Schaumburg 891 Plaza Drive Schaumburg, IL 60173
Dec. 6
Feb. 4-7, 2019
June 11-13, 2019
Supervisory Skills Seminar Chicago Marriott Suites O’Hare 6155 N. River Road Rosemont, IL 60018
2019 Summit & CONDEX Marriott Orlando World Center Orlando, FL
Washington Fly-In Washington, D.C.
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>> FROM THE PRESIDENT BRIAN P. McGUIRE
Here’s What’s New With AED!
AED has new tools and resources to pave the way for its members’ success!
Associated Equipment Distributors (AED) is constantly evolving for its members. This year we have made great strides in being as accessible to our members as possible through several platforms and mediums. Some of these changes have already been put in place, and some will be coming in the next few months. What new tools and resources does AED have for you to take advantage of? ▶ Take your membership on the go with AED’s new mobile app, AED360. This app will provide you with a way to update your membership records, register for events, review benchmarking reports, chat with other AED360 users, search through AED’s online offerings, and much more! Look for “AED360” in the App Store or Google Play to download the app today and begin personalizing your membership experience. ▶ As you may have seen in our emails or on social media, CED’s digital transformation is here. Visit CEDMag.com to search for and view featured articles from any issue of CED Magazine, find updates or announcements from our members in the Member News section, locate trending topics, and revisit previous issues of the magazine. This website will help you to stay up-to-date with all the must-knows in the construction equipment industry. ▶ Expand your company’s financial perspective with AED’s new 2018 benchmarking reports, the Cost of Doing Business Report (CODB) and the updated Cross-Industry Compensation & Benefits Report. The CODB Report presents a detailed but straightforward
analysis of financial and operating characteristics of 117 participating AED dealerships. This year’s report (based on 2017 operations) has been designed to provide easyto-understand guidelines for analyzing profitability and identifying business performance improvement opportunities for your dealership. The Cross-Industry Compensation & Benefits Report provides reliable, compensation-related benchmarks for companies in wholesale trade and distribution. This report spans numerous distribution specialties. Purchase these reports at bit.ly/aedreports. ▶ Educational and networking events will allow attendees to meet with like-minded individuals and industry peers. The Association has developed and enhanced the education offerings available to you this year with a variety of seminars, self-study courses and conferences for every level of your dealership: • A new sales self-study course and a live Sales Management Seminar taking place in November. • The Supervisory Skills Seminar, taking place December 6 in Rosemont, Illinois • Returning for a second year are two successful conferences we launched last year, the Leadership Development Institute and the Small Dealer Conference. You can register for these events at bit.ly/aedevents. We look forward to continuing to provide beneficial resources and tools to help you and your company grow. Our ears are open, and we hope to hear from you about other benefits that you think AED should pursue that will help our members move forward.
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. September 2018 | Construction Equipment Distribution | www.cedmag.com | 7
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>> AED INSIDER
AED Members Get Proactive With Legislative Visits in June, July House Ways and Means Committee Chair Kevin Brady Visits Bobcat of Houston Bobcat of Houston, located in Conroe, Texas, welcomed House Ways and Means Chairman Kevin Brady (TX-8) to their store for a facility tour and roundtable discussion. Much of the discussion centered on tax cuts, past and future, that will help small business. Brady remains a strong supporter of our industry.
Road Machinery & Supplies Hosts Congressional Candidate Pete Stauber
Road Machinery & Supplies Co. recently hosted congressional candidate Pete Stauber at their Virginia, Minnesota, facility. Stauber is the Republican candidate for the open seat in Minnesota’s 8th district, which encompasses the entire northeast quadrant of Minnesota, including Duluth and the Iron Range. Stauber, a former pro hockey player, retired police officer and current St. Louis County Commissioner, is a strong proponent of infrastructure projects, including mining, which is making a strong comeback in northern Minnesota.
Rep. ‘Dutch’ Ruppersberger Visits Alban CAT as Local Dealer Group Forms
Rep. C.A. “Dutch” Ruppersberger visited Alban CAT in Baltimore. Ruppersberger is serving his eighth term in the United States House of Representatives for the citizens of Maryland’s 2nd District. He currently serves on the House Appropriations Committee, including the Defense; the State, Foreign Operations
and Related Programs; and the Homeland Security subcommittees. The Appropriations Committee is responsible for allocating hundreds of billions of federal dollars each year. Led by Alban CAT, a local dealer group is forming that will focus on workforce development and government relations, including supporting local issues such as infrastructure improvements. Ruppersberger has agreed that once the group is formed he will provide a legislative update and sign a letter of support for local infrastructure issues.
Roland Machinery Welcomes Rep. Rodney Davis to Springfield, Illinois
Matt Roland, president of Roland Machinery, welcomed Rep. Rodney Davis to their Springfield, Illinois, facility. Rep. Davis is currently in his third term in Congress serving the 13th District of Illinois, a 14-county district covering both urban and rural areas of central and southwestern Illinois. Prior to being elected, Davis served as projects director for Rep. John Shimkus (IL-15) for 16 years, helping Illinois citizens and communities cut through government red tape and secure federal funding. For the 115th Congress, Rep. Davis serves on the House Agriculture Committee, the House Transportation and Infrastructure Committee, and the Committee on House Administration. He serves as the chairman of the House Agriculture Subcommittee on Biotechnology, Horticulture, and Research and is vice chair of the Committee on House Administration. Additionally, he serves as chair of the Franking Commission.
Rep. Randy Hultgren Tours West Side Tractor Facility
AED Chairwoman Diane Benck welcomed Rep. Randy Hultgren (IL-14) to West Side Tractor’s Wauconda, Illinois, facility. Hultgren, elected to congress in 2010, serves on the Financial Services Committee and the Science, Space and Technology Committee.
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>> AED INSIDER Legislative Visits continued Southeastern Equipment Welcomes Rep. Bill Johnson
Southeastern Equipment hosted Congressman Bill Johnson at their Cambridge, Ohio, shop. In November 2016, Johnson was elected to a fourth term to serve the people of eastern and southeastern Ohio. He retained his seat on the powerful House Energy and Commerce Committee that is charged with playing a key role in developing America’s energy, healthcare and telecommunications policies (among others), while providing oversight for the administration’s implementation of these laws. Johnson also serves on the House Budget Committee and is a member of the House Shale Caucus.
Rep. Billy Long Visits Vermeer Great Plains
Rep. Billy Long (MO7) recently visited Vermeer Great Plains in Brookline, Missouri. Congressman Long is a member of the House Energy and Commerce Committee as well as three critical Energy and Commerce subcommittees: Communications and Technology; Energy; and Health.
Ohio Secretary of State Visits AED Headquarters
AED’s headquarters in Schaumburg, Illinois, played host to Jon Husted, who currently serves as Ohio’s secretary of state and is a Republican candidate for lieutenant governor of Ohio. Elected secretary of state in 2010, Husted was re-elected in 2014. Prior to beginning in public service, he worked with the Dayton Area Chamber of Commerce and served as its vice president for economic development. He was later elected to the
Ohio House of Representatives where his Republican colleagues twice selected him to serve as speaker of the house. The oldest of three children, Husted was raised in Northwest Ohio’s Williams County. He graduated from Montpelier High School and earned both his bachelor’s and master’s degrees from the University of Dayton (UD). While at UD, he was an All-American defensive back for the Dayton Flyers and a member of the 1989 Division III national championship football team.
Rep. Phil Rowe Visits Meade Tractor Tennessee Rep. Dr. Phil Roe visited Meade Tractor in Kingsport. Rep. Roe represents the First Congressional District of Tennessee. A native of Tennessee, he was born in Clarksville. Roe is chairman of the House Committee on Veterans’ Affairs. Additionally, he serves on the House Education and Workforce Committee and was chosen by Speaker Ryan to serve on the Joint Select Committee on Solvency of Multiemployer Pension Plans.
Rep. Schrader Visits Valley Equipment
Roger Jensen, president of Valley Equipment Company in Salem, Oregon, hosted Rep. Kurt Schrader at his dealership, accompanied by AED’s Senior Regional Manager, Phil Riggs. Rep. Schrader is an ally of the industry and very receptive to AED members’ concerns regarding trade policy, infrastructure investment and workforce development. Jensen is part of a growing number of AED dealer member principals who contribute to the AED Political Action Committee (PAC) and attend the Washington FlyIn to support the industry’s efforts in Washington, D.C.
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>> AED INSIDER
Citrus College on Target for AED Foundation Accreditation
AED members in the Southern California area convened for a meeting with Citrus College on July 16 to chart a path to achieve AED Foundation accreditation. AED members in attendance included Scott Equipment, RDO Equipment, Sonsray Machinery and Quinn Company. Next steps include performing a gap analysis, implementing curriculum changes and working with AED members to ensure the school has the materials they need to effectively teach the next generation of heavy equipment technicians.
Triad Machinery Announces New President
Congratulations are in order for Portland, Oregon-based Triad Machinery’s newest president, Andrew Lundgren. Lundgren was promoted to the position of president from his previous role as crane manager. Brian Elkins, formerly of Link-Belt in Lexington, Kentucky, is Triad’s new crane manager. Triad Machinery has been an AED member for more than 25 years.
Ditch Witch Midwest Breaks Ground on New Facility in West Chicago, Illinois
AED President and CEO Brian P. McGuire and Executive Vice President and COO Bob Henderson were on hand to lend a shovel for Ditch Witch Midwest’s groundbreaking in West Chicago, Illinois.
The AED Foundation Hosts Successful Instructors Conference More than 100 diesel technician instructors and other educators participated in The AED Foundation’s 2018 Instructors Conference held at Ferris State University in Big Rapids, Michigan, in mid-June.
MILESTONES
Bright Equipment Receives 50-Year Membership Plaque AED Senior Director of Canadian Engagement and Midwest Regional Manager Mike Dexter presented Joe Bright, president of Bright Equipment, dba Bobcat of Indy, with a plaque commemorating 50 years of AED membership.
The AED Foundation Attends American School Counselor Association Conference Marty McCormack, associate director of development and workforce of The AED Foundation, attended the 2018 American School Counselor Association’s (ASCA) annual conference in Los Angeles. McCormack was able to discuss workforce training and career pathways with numerous high school and middle school counselors.
Birkey’s Construction Equipment Receives 25-Year Plaque
AED was pleased to present a 25-year membership plaque to Birkey’s Construction Equipment of Mattoon, Illinois. 10 | www.cedmag.com | Construction Equipment Distribution | September 2018
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>> INDUSTRY NEWS Major Victory as Congress Finishes Work on Perkins Reauthorization On July 25, the House approved the bipartisan Strengthening Career and Technical Education for the 21st Century Act (H.R. 2353), sending the legislation to President Trump for his signature. This action comes on the heels of Senate passage on July 23. AED made enactment of H.R. 2353 a key part of its legislative agenda this Congress. The legislation reforms, modernizes and reauthorizes the Carl D. Perkins Career and Technical Education Act. The Perkins Act, which hasn’t been updated in more than a decade, is the principal source of federal funding for the improvement of secondary and postsecondary career and technical education programs across the nation. “Congress took a long-overdue step toward addressing the nation’s skills gap by approving the Strengthening Career and Technical Education for the 21st Century Act,” said AED’s President and CEO Brian P. McGuire. “By reflecting current workforce needs, empowering state and local entities, and emphasizing work-based learning
opportunities, the bipartisan legislation provides tools to better prepare workers for well-paying careers and ensure that U.S. companies can seize new business opportunities, making the United States more competitive in the global economy. The greatest strategic challenge facing the construction equipment industry is the scarcity of skilled technical workers that is costing AED members more than $2.4 billion per year in lost revenue and economic activity. H.R. 2353 is an important part of the solution, which, along with a commitment by businesses, schools and government officials to collectively tackling the technical education crisis at all levels, will help our nation’s students acquire the skills needed to meet employer demands. The construction equipment industry urges the president to sign this important legislation into law as soon as possible.” The legislation will help with the following: • Aligning CTE programs to the needs of the regional, state and local labor markets
• Supporting effective and meaningful collaboration between secondary and postsecondary institutions and employers • Increasing student participation in workbased learning opportunities • Promoting the use of industryrecognized credentials and other recognized postsecondary credentials These improvements will more effectively spend federal dollars to help our nation’s students acquire the skills that they need and that employers – including AED members – are demanding. The AED Foundation recently commissioned two studies by the College of William & Mary quantifying the skilled worker shortage’s impact on the construction equipment industry and analyzing career and CTE programs on a state-by-state basis. Visit aedfoundation.org/research/ to learn more about this research. For more information, please contact Daniel B. Fisher, AED’s vice president of government affairs, at dfisher@aednet.org.
Glynn General Corporation Providing Quality Equipment Warranty Programs Since 1984 Coverage Types/Coverage Terms
● Extended service protection plans for New and Used Equipment ● Powertrain, Powertrain plus Hydraulics and Full Machine ● Used Equipment Terms available from 3 months (375 hours) to 2 years (2,500 hours) ● New Equipment Terms available from 2 years (2,000 hours) to 5 years (7,500 hours) ● Competitive Premiums/Fair and Reasonable Claims Reimbursement ● Insurer AmTrust International
Loss damage waiver and physical damage insurance programs available.
171 Follins Lane St. Simons Island Georgia 31522 Tel: 912-638-4320 www.glynngeneral.com
Midwest/East Territory Eric Strickland Tel: 912-577-9799 Florida/Georgia/Alabama Slade Rowland Tel: 912-222-4268 Central/West Territory Michael Raley Tel: 817-301-7984
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>> INDUSTRY NEWS Strongco Appoints Oliver Nachevski as VP and COO
Strongco Corporation (TSX: SQP) has announced the appointment of Oliver Nachevski, formerly vice president, construction equipment, to the position of vice president and chief operating officer (COO). “Over the past several years, Strongco has undergone significant change in an effort to reposition the business and focus on our core strengths. The creation of the COO role will provide more centralized leadership, with the goal of delivering greater operational excellence during the next phase of stability, sustainability and strategic growth,” said Robert Beutel, executive chairman of Strongco. “Oliver’s many years of service at Strongco, combined with his demonstrated leadership, make him well suited to propel our operating initiatives across all of the business units. On behalf of the board of directors, I look forward to him bringing this experience and commitment to his new post.” As vice president and COO of Strongco, Nachevski will oversee all operations, including Construction Equipment, Cranes and Finance, and will play a key part in coordinating and integrating the business for maximum efficiency and reward. “This is an exciting time for Strongco in terms of the strategic transformation of the company,” said Nachevski. “In collaboration with our strong team, I look forward to the opportunity to drive the business forward.” Strongco Corporation is a major multiline mobile equipment dealer with operations across Canada. Strongco sells, rents and services equipment used in diverse sectors such as construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management, and forestry. The company has approximately 500 employees serving customers from 26 branches in Canada. Strongco represents leading equipment manufacturers with globally recognized brands.
Liebherr USA Co. Celebrates Groundbreaking of New Headquarters in Newport News, Va. Members of the Liebherr family, executive management and Newport News city officials gathered on Friday, July 20, for a groundbreaking ceremony on-site in Copeland Industrial Park to celebrate the construction of the new Liebherr USA Co. headquarters. The commencement of this $45 million expansion project marks the beginning of an exciting new chapter for Liebherr in the United States. The company, which has been manufacturing and operating in Newport News, Virginia, for over 48 years, broke ground at the site adjacent to its current location. The new facility will serve as the new headquarters for Liebherr USA Co. and will include the construction of three new buildings: a state-of-the-art four-story administrative building, a carefully designed warehouse and parts distribution center to meet current and future requirements, and a modernized production and workshop facility intended to support the company’s cranes, construction and concrete divisions. Once completed, the new buildings will add over 251,000 square feet to the existing 560,000-square-foot Liebherr campus. This investment will greatly impact the company’s operations in the U.S. and drive Liebherr’s
strategy for long-term growth. With shovels in hand, Mrs. Sophie Albrecht, Jan Liebherr, Newport News Mayor McKinley Price, managing directors of Liebherr USA Co., its building partners, and government officials broke ground during the ceremony. “The U.S. is a strategic market for Liebherr, and with this investment we send a clear message of commitment to our customers, employees and the local community here in Newport News,” said Torben Reher, managing director of Liebherr USA Co. McKinley Price, mayor of Newport News, remarked, “We are grateful for Liebherr’s corporate citizenship, the investments, and the jobs the company has provided for our citizens and others around the region. This expansion will set the stage for even greater success as the company continues to grow, and we are proud to partner with and support Liebherr now and always.”Construction is expected to be completed in 2020 and will house Liebherr USA Co. employees working in administration, finance, marketing, human resources, sales and service, product support, production, and distribution for eight product divisions.
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>> INDUSTRY NEWS Ditch Witch Midwest and Schramm Construction Break Ground on New West Chicago Facility Schramm Construction Corp. broke ground on the new Ditch Witch Midwest facility on July 25 at 1:00 p.m. Earl Harbaugh, CEO of Ditch Witch Midwest, was joined by Mark Harbaugh, president of Ditch Witch Midwest, Fred Schramm, president of Schramm Construction Corp., and West Chicago Mayor Ruben Pineda at the ceremony. The new +40,000-square-foot facility will be located at 1555 Atlantic Drive in West Chicago. With the continued growth of Ditch Witch Midwest and Rentals Plus, along with the startup of 1st Choice Equipment, the companies have outgrown their current facility and yard space at 124 N. Schmale Road in Carol Stream. “Although we hate to be leaving the Village of Carol Stream, we are excited to be making our new home in the City of West Chicago. This new building and yard space will give us the opportunity to train and hold customer schools on proper equipment operation and safety,” commented Mark Harbaugh. The new facility will include two advanced training rooms and over half an acre of outdoor space to educate clients on the proper use of equipment and the overall Ditch Witch Midwest safety goals. Other building amenities include a 3,000-square-foot showroom,
covered equipment storage, over 14,000 square feet of service area, and 12,000 square feet of warehouse space, in addition to private offices, conference rooms, and more. The architect for the new facility is Eric Carlson of ECA Architects & Planners. Members of the media were welcome at the groundbreaking. There was a short reception afterward with light refreshments. This is one of five other projects Schramm Construction is currently building. Others include the Fox Valley Shooting Range state-of-the-art indoor firearms facility in Elgin, an addition at FONA International in Geneva, a Price Circuits headquarters remodel in Elgin, and an addition at Christ Community Church in St. Charles. Founded in the 1970s by Earl K. Harbaugh, Ditch Witch Midwest provides quality products for purchase or rent, as well as parts and service for underground construction. The company currently operates five facilities with locations in Illinois, Indiana and Wisconsin. Their company philosophy is “commitment,” which can be seen in their high standards for products, services, and training. For more information on Ditch Witch Midwest or their extensive line of products, call 800.243.1328 or visit www. ditchwitchmidwest.com.
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>> INDUSTRY NEWS ABLE Equipment Rental Announces the Opening of Its Sixth Location in the Northeast ABLE Equipment Rental Inc. of New York (ABLE), a supplier of construction equipment rentals, sales, service and parts, is pleased to announce the opening of its new location in Allentown, Pennsylvania. Operating as ABLE’s sixth full-line facility, it will serve the Lehigh Valley and its immediate surroundings. Located on two acres in Lehigh County at 211 Lloyd Street in Allentown, the 18,000-squarefoot facility is positioned to attract customers from the region’s strong northeast Pennsylvania customer base. “Given its optimal location with excellent transportation routes, our new Allentown branch is poised to become a key construction equipment supplier in the region,” said Steven Laganas, ABLE’s chief executive officer. “We researched and visited several facilities in the area before committing to the property in Allentown. We’re extremely excited to be part of the Lehigh Valley business
community.”ABLE’s move into the Lloyd Street location will eventually bring up to 30 additional jobs to the Lehigh Valley workforce. Some of these jobs include drivers, mechanics, rental coordinators, and account managers. Founded in 1996, ABLE Equipment Rental is privately owned. With corporate headquarters based in Deer Park, Long Island, New York, its other locations are in Edison and Pennsauken, New Jersey, and Honey Brook and Norristown, Pennsylvania.
Komatsu, Propeller To Bring Drone Analytics Solutions To The Construction Industry Komatsu America Corp. and Propeller Aero Inc. are partnering to boost the efficiency of construction job sites using drone-powered mapping and analytics software. With drones becoming an increasingly common worksite tool, Komatsu has identified aerial mapping and analytics as a
key component of their Smart Construction initiative – a range of integrated hardware and software products designed to offer an end-toend workflow for each phase of construction. “A Komatsu Smart Construction job site by definition is technology enhanced and production optimized,” says Jason Anetsberger, senior product manager at Komatsu America
Corp. “Adding Propeller Aero as one of our key partners gives our North American distributors and customers exceptional capabilities to achieve this standard in the aerial mapping space. Propeller combines simple, yet powerful analysis tools with accurate and fast site visualization.” Komatsu America Corp. spent several years testing various commercial drone mapping and analytics products in North America. In Propeller, Komatsu found an exceptionally robust product, well-suited to meet the needs of modern construction operations. Propeller expertly balances ease of use with survey accuracy and reliability. Propeller’s processing machinery crunches thousands of drone images in hours, and delivers the results as a cloud-based 3D model right to the user’s desktop or tablet. From there, powerful collaboration and analysis tools let users perform height, volume and slope calculations, and measure change over time to confirm that a project is on track. “Anyone can fly a drone – it’s what you do with the data that makes an impression,” says Chris Faulhaber, Smart Construction business manager at Komatsu Equipment Company.
Luby Equipment Services Promotes Jeff Mattie to Service Manager Luby Equipment Services, the CASE Construction Equipment dealer based in St. Louis, is proud to announce the promotion of Jeff Mattie to service manager at the Fenton headquarters, e f f e c t i v e immediately. An Jeff Mattie assistant service manager for the past two years, Mattie takes over for longtime service manager Tom Bognar, who recently retired after 35 years of service. “I have always considered the position of service manager to be the toughest job in the company,” said Bob Luby, president at Luby Equipment Services. “I am pleased that Jeff Mattie will be assuming these responsibilities in Fenton. Jeff ’s tenure as assistant service manager will be influential in his success as the leader of our service department.” Sales Manager David Kedney agrees. “Jeff ’s experience and passion for customer service will be instrumental in ensuring that our customers continue to receive the best service offering in the area.” Luby Equipment Services operates out of its headquarters in Fenton, Missouri, and seven other branch locations. They serve their customers’ equipment needs with a variety of new, used, and rental equipment. The company represents several manufacturers, including CASE Construction, Takeuchi, Doosan, Indeco, Atlas Copco, Wacker Neuson, Oshkosh Airport Products, Eager Beaver Trailers and Towmaster Trailers. For more information about Luby, visit their website at www. lubyequipment.com.
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>> PRODUCT PREVIEW Link-Belt Announces New TCC-1200 and Wireless Remote Control To better meet customer demand, Link-Belt Cranes has announced an upgrade to the base rating of its 110-ton telecrawler to 120-ton. Shipments of the new TCC-1200 will begin in the fourth quarter of 2018. The TCC-1200 offers an impressive capacity chart at a radius that rivals even lattice crawler cranes with a similar base rating. The TCC-1200 is a full power boom, fabricated from ultra-highstrength steel and formed in Link-Belt’s own formed boom facility. The main boom height is 40–150 ft. (12.2–45.7 m) long and incorporates Teflon wear pucks to eliminate boom grease. It will come with three track widths: extended [18 ft. 2 in. (5.5 m)], intermediate [15 ft. 8 in. (4.8 m)], and retracted [11 ft. 11 in. (3.6 m)] which offers varying footprint capability in popular telecrawler sectors such as energy, industrial, and infrastructure. An optional wireless remote control system is now available for the new TCC-1200 and the TCC-1400. The wireless remote provides a solution for industries and other operations where required, and allows the operator to be out of the cab and still have control of the crane. Please visit Link-Belt’s press site at http://www.linkbelt.com/ ftphome.htm to download a news release and photos of the new TCC-1200.
KINSHOFER Introduces Powerful WS-Series Drum Cutters KINSHOFER, a leading global manufacturer of high-quality excavator and loader crane attachments, introduces the WS Drum Cutter Series. KINSHOFER acquired the drum cutter line in early 2018, with the purchase of the Schaeff Transverse Cutter from Atlas GmbH. The drum cutters feature an exclusive pick angle and optimal chisel arrangement for high performance and minimal wear, making the attachments ideal for mining, tunneling, road construction and demolition. “Years of engineering and manufacturing have shaped the WS-Series drum cutters into precise rock-breaking units that maximize efficiency and outperform the competition,” said Francois Martin, KINSHOFER North America general manager. “Our team of application specialists work with contractors to choose the best drum and chisel for their specific application, minimizing noise and vibration while optimizing performance.” Drum cutters are a quieter alternative to hydraulic breakers and the WS-Series are one of the quietest in the industry, making them excellent for use in areas with noise restrictions. They also produce less
vibration than breakers, so contractors can use them where there’s a risk of disturbing a nearby structure’s foundation. KINSHOFER achieves the low decibel output and minimal vibrations of the attachments through a high-torque hydraulic motor. The motor powers the drum cutter while its gear reduction optimizes torque and cutting force. The higher torque enables the attachment to achieve greater cutting efficiency while operating at a slower speed than competitive drum cutters. The controlled speed of the attachment reduces noise and vibration as well as maximizing operator comfort. Additionally, the hydraulic motor
is adjustable to match the output of an excavator’s hydraulics. KINSHOFER has a drum to match any application. The rock drum effectively breaks soft to medium-hard rock in mines and quarries with its strategic chisel pattern, and the profiling drum’s higher density of chisels shapes and levels soft to mediumhard rock in tunneling applications. The demolition drum offers reduced vibration due to a wear-protected spiral sheet and is ideal for cutting medium-hard to hard rock as well as concrete. Based on the application, KINSHOFER offers four chisel tips that attach to the wear pick: standard, heavy-duty, wear-protected and wood. Standard chisels are excellent for breaking asphalt, argillite and other soft to medium-hard rocks, and the heavy-duty chisels power through medium-hard to very-hard materials such as limestone and concrete. Wear-protected chisels are ideal for abrasive rocks such as sandstone and furnace gravel. The wood chisel is designed specifically for wood applications, such as stump removal. Wear picks can be replaced in minutes, leading to greater productivity and less downtime.
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>> REGIONAL REPORT
Concerned About Your Dealership’s Profitability? Then It’s Time To Get Involved with AED and The AED Foundation I have spent a lot of time in the past few months on the road talking with dealers in the Southeast Region. During these visits there has been a common theme: How do I get more technicians, will there be a transportation bill, and what is the status of the tariffs? AED recognizes the importance of each of these topics.
SOUTHEAST
Sean Fitzgerrel
But we must remember that there is strength in numbers. I realize the importance of the summer months for many of our members’ bottom lines, but there is too much at stake for you to get caught up in the hustle and bustle of daily operations. AED and The AED Foundation are actively addressing each of these issues that are currently affecting the profitability of your company. The AED Foundation is in the process of accrediting over 20 diesel technology programs throughout the United States. I would encourage you to reach out to your regional manager to see if one of these schools is in your area. Accrediting programs cannot happen without the support of industry leaders like you. Workforce development is one issue that every single dealer can get behind to help solve this crisis. If every dealer in the hypercompetitive market of Tampa, Florida, can set their competitive drive aside, then I believe everyone can do it. It’s not often that you can get competitors in the same room working together to solve a common problem. The AED Foundation is driving the workforce talks with members and schools, but this issue remains a top priority of the Association as well, including advocating for changes in federal law. Just as you’ve supported creating partnerships with local technical schools and dealerships, your support is needed in tackling the required changes in federal law. AED advocates daily for changes that will affect your bottom line, including encouraging the federal government to invest in the next generation of skilled technical workers. AED supported the reauthorizing of the Carl D. Perkins Career and Technical Education Act, to reflect current workforce needs and to allow greater flexibility for state and local entities, nongovernmental organizations, community colleges, and technical schools. AED’s staff can spend hours upon hours with members of Congress advocating for an essential issue like this, but
Rep. Phil Roe, R-Tenn., discusses the workforce shortage with Meade Tractor in Kingsport, Tenn.
I would encourage you to take an hour or two out of your day and host your local representative. The impact that you and your company’s executives can have on members of Congress cannot be underestimated. The fact that your company is a major economic driver in your community will have a great effect on the decision-making process of the members of Congress. The process is easy; all you need to do is reach out to your regional manager and say that you want to host your local member of Congress, and we will do our best to ensure it happens. During the meetings, you can personally advocate for an infrastructure plan, encourage certainty and predictability of the tax code, push for a larger investment in the next generation of skilled technical workers, ask for expanded domestic energy production, and promote international trade and commerce. Your involvement can help turn these legislative priorities into legislative accomplishments.
SEAN FITZGERREL is AED's Southeastern Regional Manager. He can be reached at 630-468-5130 or sfitzgerrel@aednet.org. 16 | www.cedmag.com | Construction Equipment Distribution | September 2018
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>> THE AED FOUNDATION DONOR PROFILE
Intermountain Bobcat is working hard to
KEEP TALENT ON TAP By Heidi Bitsoli Complacency is a bad word in the heavy equipment business, according to Jeff Scott. He’s the president of Intermountain Bobcat in Utah, as well as the vice chairman of The AED Foundation board. His company is no stranger to AED and The AED Foundation; it has been a member since 1970. Both Scott and his brother David co-own Intermountain Bobcat and have been involved for many years. The retailer, which sells and services both new and used equipment in addition to leasing, has three locations in Utah. Jeff Scott has been a longtime contributor to The AED Foundation’s annual campaign and the annual AED Foundation Fundraising Gala, as well as helping to mold programs aimed at replenishing the technician talent pool. It’s an ongoing job, he says, or it should be. The industry needs to be persistent, and never let go of the reins when it comes to training the next generation of technicians – even in the rare instances when all posts are filled. There remains a need for qualified workers, Scott continues, and industry leaders need to be forward-thinking when it comes to training them. As a result, Scott continues in his efforts to shape and offer educational opportunities to draw new recruits to the field. “We need to work closely with various trade schools and The AED Foundation, not only now, but in the future, too,” Scott says. He puts his money where his mouth is, involving himself in AED accreditation efforts and promoting trade schools. On the local level, he played a part in getting the Salt Lake Community College (SLCC) AED-Accredited. The process took more than a decade as they campaigned and communicated with school administrators about the ongoing need for qualified technicians – a problem that is decades old, Scott adds – and got the local AED chapter involved in the process. One effort to show what the industry has to offer began in 2017, when The AED Foundation worked with Utah Career Pathways to organize a career day and barbecue at the SLCC. Utah Career Pathways is a program
“
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, Intermountain Bobcat, for investing in the future of our industry! To contribute to The AED Foundation annual campaign, visit bit.ly/2018aedfcampaign. created by the Utah State Board of Education to promote certain “career clusters” that offer opportunities in fields that provide high on-the-job satisfaction and offer a solid wage, including diesel technology. At the barbecue held at the community college, approximately 300 high schoolers from Canyons School District met professionals in the field while they learned about education requirements, job opportunities and pay. The event was such a success it will be repeated in October. Events such as these, Scott says, make a pretty good model for the country. “We need to be consistent in our approach. Don’t let up. No complacency,” he says of schooling and seeking talent. “We need to educate the next generation so there are no gaps.” Excellent jobs in diesel technology are readily available. The public, and youth in particular, need to be aware that some students even get paid as they learn, and many companies, including Intermountain Bobcat, fund scholarships at trade schools. “Then, at the end, it’s pretty much guaranteed employment. It’s a win-win-win situation. Dealers play a role in the recruiting process; then we go to high schoolers to educate them. “It’s eye-opening to them, with the technology and computers,” Scott says. “It’s not just a greasy engine.” One of Scott’s other goals as part of The AED Foundation’s board of directors is to increase awareness within the industry. “Its sole purpose is to educate the workforce in diesel technology. We as an industry need to stay consistent; we need to keep at it to support education of future technicians.”
We need to be consistent in our approach. Don't let up. No complacency.
”
We need to educate the next generation so there are no gaps. Jeff Scott, president of Intermountain Bobcat and vice chairman of The AED Foundation board
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Election 2018:
ENGAGE NOW E
very two years politicians, pundits and newspaper editorial boards proclaim the importance and high stakes of the upcoming election. As the 2018 campaigns hit full throttle, this year is proving no different. While all elections have consequences, the approaching midterms are shaping up to be incredibly important, particularly for the construction equipment industry. DANIEL B. FISHER Democrats need to flip 23 CAPITOL CORNER congressional districts in the House (more if they lose current Democratic seats) to have the majority. To take control of the Senate, Democrats must keep all of the states they currently occupy and win two from the Republicans. Most will agree, the Senate map strongly favors Republicans and the House is currently considered up for grabs. Unlike previous midterm elections, such as 2010, even though Republicans are playing defense, as of now it’s looking like it won’t be a wave election. Candidates matter, and the battle will be fought in individual districts and states and likely not necessarily determined by a big national issue (think the Affordable Care Act in 2010). As I’m meeting with aspiring members of Congress, it’s clear that the 2018 election is different from prior midterms and is reflective of the political polarization in the country. Generally, in safe or solid Democratic or Republican districts, it’s always expected that the candidate will be either solidly liberal or solidly conservative. However, in the approximately 50 competitive congressional seats across the country, the general rule was that the contenders would be more “conventional” members of their parties and lean toward the center of the political spectrum. This year it’s definitely different. I’ve met with formidable candidates where nominees in close races are taking positions that lean to the extreme of their respective political parties. For example, I recently met with a pair of Democratic candidates running in competitive congressional districts with a retiring Republican incumbent.
Both are running on a platform of repealing the Tax Cuts & Jobs Act and enacting single payer healthcare. To address the workforce shortage, one of the candidates suggested expanding labor unions. These aren’t fringe candidates or disciples of Bernie Sanders. They’re legitimate contenders in districts that can easily flip parties in the fall. Similarly, I’ve met with countless Republican candidates, many seeking to replace exiting GOP lawmakers or challenging current members of Congress in primaries. A shocking number of these individuals have asserted that current levels of infrastructure investment are perfectly adequate. Several even described their belief that the nation’s infrastructure needs are drastically overstated and it’s time to look at cutting the highway program! Again, these are candidates that have a very real chance of serving in Congress next year representing swing districts with positions outside the mainstream of their party. The result of this trend doesn’t bode well for the political center where deals on big issues, such as infrastructure investment, come together. However, there are members of the House and Senate and new candidates that are committed to the construction equipment industry’s legislative priorities such as pro-growth tax, energy and labor policies, commonsense regulations, workforce development, and strong infrastructure programs. Nonetheless, many of these industry champions are at extreme risk of losing their elections this fall. The days of assuming that candidates in swing districts will be mainstream members of their political parties are over. Consequently, regardless of political party, it’s important to examine candidates closely before donating to campaigns and heading to the polls. It’s also crucial to learn more about the AED PAC, the Association’s political action committee. By allowing AED members to pool personal contributions to support candidates seeking federal elected office, the AED PAC is a tool to increase the effectiveness of the Association’s government affairs program by helping elect federal candidates that support common policy goals. There’s too much at stake for the industry in November to be a casual observer. AED members must get involved to ensure the next Congress has a pro-AED majority.
DANIEL B. FISHER is AED's vice president of government affairs. He can be reached at dfisher@aednet.org and 202-897-8799.
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To learn more, visit www.R2RSolutions.org
RIGHT to REPAIR F
By Stephanie See or the past decade, states have considered “right to repair” legislation targeted at different types of machinery. Over the years, these proposals have grown increasingly broad in scope. First, it was automobiles, then heavy trucks, and then consumer electronics. Recently, the special interest group representing third party repair providers, coders, refurbished product sellers, consumers, and others with an interest in accessing back-end code has turned its sights on heavy off-highway equipment. While the Repair Association’s PR efforts are focused on tractors, the group’s model legislation covers everything that has a microprocessor, including construction and other heavy off-highway equipment. Proponents of Right to Repair have advocated for overly broad laws that would allow for unfettered access to the software that governs on-board technology on equipment. Giving access to the source code would not only undermine manufacturers’ innovation and intellectual
property, it would, more alarmingly, risk allowing modifications that may not meet safety and emissions requirements for equipment. Modifications also create unknown liability issues for the individuals modifying the code, dealers who subsequently take in modified equipment in for resale, and subsequent owners of a modified unit. The right to repair one’s equipment does not extend to an unlawful right to modify its software. A diverse coalition representing the technology industry, security groups, medical equipment and home appliance manufacturers, intellectual property protection groups, and the insurance industry is fighting these legislative proposals in state capitals, but farm equipment manufacturers have gone a step further and created a market-based solution that meets the maintenance and repair needs of the farmer. Agriculture equipment manufacturers and dealers are announcing a new commitment to make a comprehensive suite of service and diagnostic information for tractors and combines available by
2021. We invite readers to learn more about these commonsense solutions by visiting www.R2RSolutions.org. They are a reasonable response intended to meet the needs of our end users and make so-called “Right to Repair” legislation unnecessary. Legislators agree – in 2018, none of the 19 Right to Repair bills passed. The Association of Equipment Manufacturers knows the construction industry is different: contractors commonly rent their equipment, construction sites are temporary, and repair and maintenance protocols are different. However, the impact on dealers and contractors is the same. That is why dealers from John Deere, CAT, and Case, for example, have already engaged in the battle in states across the country. In New York, the General Contractors Association joined in opposing Right to Repair legislation due to the same concerns about equipment modification. The construction industry is potentially impacted by these proposals, and it is important that the industry be aligned and work together to oppose this effort.
STEPHANIE SEE is the director of state government and industry relations for the Association of Equipment Manufacturers. September 2018 | Construction Equipment Distribution | www.cedmag.com | 19
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WHY AED MEMBERSHIP MAKES DOLL ARS AND SENSE
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hange is inevitable in any industry. In ours, however, staying ahead of the curve takes communication, collaboration, and close attention to customer demand. As many of us know, the Associated Equipment Distributors (AED) trade association is in the business of providing its distributor, manufacturer and service company members with the tools needed to succeed. By being a unified voice for its 460 distributor member companies, AED makes the needs of the industry known in U.S. and Canadian political arenas. It is not difficult to understand why companies involved in the distribution, rental and support of equipment used in construction, mining, forestry, power generation, agriculture and industrial applications choose AED. The international trade organization vigilantly offers benchmarking reports, accreditation and recognition programs, top industry publications, and leadership seminars. AED seminars provide opportunities to learn new strategies and discover possible partners or vendors. One could claim that we at CED Magazine are biased in our assessment of the trade association’s advantages. That’s probably fair. So, for all you skeptics out there,
here is what a few industry leaders are saying about the benefits and perks of AED membership.
Seminars The AED Foundation is the one-stop shop for your educational needs. Topics offered at seminars like the AED Summit event and Leadership Conference are position- and dealer-specific, including education in HR, parts and service, sales, and finance, presented by experts in their field. Christopher Palmer, president at Wood’s CRW Corp., says AED events provide “an opportunity to step back from the day-to-day and look at your business from 10,000 feet, which is a challenge for many family-run businesses.” Palmer comments, “I also feel that the annual Summit provides an exceptional opportunity to get together with your manufacturers and allied vendors to recap the past year and discuss plans for the current year. The meeting in January is very costand time-effective.” Another top dealer executive remarks, “Conference attendance can be a rewarding experience that promotes teamwork, competence and organizational pride.”
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While much is accomplished at AED’s seminars, the events provide excellent networking opportunities for dealerships. Matt Di Iorio, president of Ditch Witch Mid-States, says, “There are leaders in every organization that yearn for the opportunity to serve a cause greater than self. Look around your office; they’re easy to spot. Whether that person is in your service department or in the corner office, grab hold of the opportunities that AED makes available and sign him or her up for the next event and Summit. The response and results will astound you!” AED has a variety of educational opportunities available this fall, such as the Small Dealership Conference, Branch Management Seminar, Sales Manager Seminar and the New Supervisory Skills Seminar. Tickets are available at bit.ly/aedevents. The AED Foundation Established in 1991 and directed by AED members, The AED Foundation addresses professional education and workforce development through its
accreditation and recognition of diesel equipment technology college programs. There are now 45 AED Foundation Accredited college and Recognized high school diesel-technology programs at 35 schools in the U.S. and Canada that are part of The AED Foundation’s School Partnership Program. Attacking the skilled labor crisis with education is a primary function of The AED Foundation. This approach is bearing fruit and the industry is taking notice. Matt Di Iorio says, “The AED Foundation enables us to provide our employees with dealerspecific education and recognition (management certification) directly from the trade association representing factory authorized construction equipment dealers. Leadership development and industry recognition are available without regard to where the courses are taken, or whether the participant has a college degree.” Publications One of AED’s greatest contributions to the industry September 2018 | Construction Equipment Distribution | www.cedmag.com | 21
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is their offering of insightful publications. Staying abreast of industry news is easy through AED’s multimedia platform. Check out AED News on their website or become all-knowing by continuing to read CED Magazine, which recently went digital when it launched CEDMag.com. Every CED publication can be found at CEDMag.com and focuses specifically on delivering relevant industry news and information to construction equipment distributors. Benchmarking Reports Many executives rely on AED’s annual Compensation Survey and Cost of Doing Business Report to help them intelligently navigate challenges facing the industry. These reports utilize anonymous data offered by AED member firms and non-member participants to establish performance and compensation “yardsticks” for the equipment distribution industry. “Using benchmarking and comparative analytics with other firms of our size and in our industry gives us a good ‘how are we doing’ look at our processes,” says Gary Bridwell, president of Ditch Witch of Oklahoma. AED is continually looking for ways to add value to membership, and these reports are one way of doing so. The Cost of Doing Business Report provides AED members with the most up-to-date comparative financial data in the industry, and the new reporting system provides more tools to members than ever before. Public Policy Advocacy AED is the voice of their distributor, manufacturer, and service company members in Washington and Ottawa. The goals of the group can be intricate and vast, but AED primarily advocates for the following: rebuilding the nation’s infrastructure; restoring certainty and predictability to the tax code; protecting equipment distributors from harmful and unnecessary regulation; investing in the next generation of skilled technical workers; expanding domestic energy production; increasing water infrastructure
investment; and promoting international trade and commerce. AED’s Government Affairs Program manages AED’s Political Action Committee (AED PAC) and advocates for equipment distributors in Washington and before federal regulatory agencies. One recent victory by this program had Matt Di Iorio saying, “AED’s Government Affairs Program is one of the primary reasons we’re a member of the Association.” What elicited Di Iorio’s praise was something that occurred during last year’s tax reform debate: AED’s Washington office successfully lobbied to remove construction equipment dealers from a clause that would have prohibited them from taking advantage of the Tax Cuts & Jobs Act’s 100 percent bonus depreciation provision. This legislative initiative was headed up by none other than Daniel Fisher, AED’s vice president of government affairs. Matt Di Iorio applauded AED’s legislative victory, saying, “The cost savings from changing the legislation to ensure we were able to utilize bonus depreciation, particularly for our rental inventory, was exponentially greater than our annual membership dues.” Overall, AED helps its members watch for blind spots in their companies that might be overlooked. Gary Bridwell says, “I would encourage any organization that is in the construction industry to consider AED as the go-to association for advocacy, education and peer interaction. I would encourage them to be active with the association and meet as many people as possible at functions and meetings, because you never know when your next opportunity will strike to learn something new and valuable that you can take back to your dealership. The leadership group at AED has worked very hard at refining and honing the professional education opportunities.”
For more information, visit www.aednet.org
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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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DITCH WITCH B Y J O S E P H K AY
O
ver the last seven decades, the Ditch Witch organization has established a global reputation and a worldwide distribution network. Its American-made line comprises trenchers, directional drills, vacuum excavators, and more; but in 1949, the company started with a single product and a single idea.
Ed Malzahn, a Perry, Oklahoma, local and graduate of Oklahoma A&M, created the first DWP service-line trencher after he noticed that crews were still digging residential utility trenches by hand. The device was the world’s first compact service-line trencher, and it helped make indoor plumbing installation efficient and affordable. Ten years later, with the first American dealership, came the brandnew Ditch Witch headquarters on Perry’s Fir Avenue. The company remains headquartered there to this day. Dennis Wierzbicki, company president since 2015, explains that he was initially attracted by the brand’s stature. “My background is in pump manufacturing,” he says, “and I have a long career with distribution companies. I was attracted to the Ditch Witch organization because of the impressive reputation of the brand across the world and the strong dealer network of more than 170 dealer locations, and also I was interested in working with a manufacturer of American-made innovative products.”
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The people in this company, Wierzbicki adds, are second to none. “From the factory employees, to every member of our dealer network, to our valued customers, our people are unique. We all have a similar work ethic, values, drive and ambition for the underground construction industry.” The company has developed and diversified its product offerings since the early days but remains committed specifically to underground construction. That strategy keeps the name strong and the organization focused. Wierzbicki, with his background in both mechanical engineering and business leadership, points out two fronts for the continued development of the business. “Our focus internally at the factory is on processes to help us become as efficient as possible,” he says. “Meanwhile, through our dealers, we want to see continued growth to ensure all dealers are able to carry the full product line.” Both initiatives drive the Ditch Witch organization’s ongoing mission to provide safe and innovative products, supported by superior customer service. “Safe” is the key word; Wierzbicki says that the company and the industry are facing a great opportunity to focus on safety.
“It’s important that everyone involved in the construction industry uphold a strong reputation for making safety a priority.”
factory personnel and other dealers across the country. “Earl was a pioneer in helping raise funds to develop The AED Foundation,” says Wierzbicki. “Over the years, several Ditch Witch representatives have been actively involved, serving on the AED board multiple times and on several committees.” Harbaugh’s Carol Stream dealership is still going strong today, under the leadership of his son Mark. There are branch locations in Wisconsin and Indiana. Meanwhile, AED has remained a valuable advocate for the Ditch Witch organization. The annual meeting, the education modules, and the finance class training have been particularly important services for the company and the entire dealer network. That’s especially important today. Like other employers in the sector, the Ditch Witch organization is adapting to a changing economy; it’s a continuous challenge to attract and retain the right people. Wierzbicki looks to AED to continue developing efforts in recruitment and retention. “Attraction to the industry and training opportunities are key, not only at the dealership level, but also at the corporate level,” Wierzbicki says. “AED is a powerful organization with the ability to make a positive impact across the entire industry.”
Ditch Witch and Associated Equipment Distributors have enjoyed a long and fulfilling partnership. In 1970, Earl Harbaugh founded Ditch Witch Midwest in Carol Stream, Illinois. At that time he also became involved with AED. As the dealership grew, Harbaugh continued acting as a conduit between the two organizations; that set in motion interest from
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Veteran and Heavy Equipment Technician Saves Lives With Art and Horsemanship BY MEGAN MATTINGLY-ARTHUR
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ick Gil’s first experience working with heavy equipment came when he was in the U.S. Marine Corps. While serving as a construction and landmine technician in Iraq, he frequently worked alongside heavy equipment mechanics and operators. After discovering just how much he enjoyed assisting them and getting his hands dirty, Gil decided to seek a job in the heavy equipment industry when he got out of the service in 2003. He ended up at West Side Tractor Sales’ Wauconda, Illinois, location, where he’s worked for the past 15 years.
“What I love best about technician work is that it’s a different mission every day; it’s not repetitive or boring,” Gil said. “Every day is a new challenge and, as a veteran, that’s what keeps me going.” West Side Tractor Sales was right where Gil needed to be to help customers, as well as to help veterans like himself. “I started getting involved with local veterans’ organizations, including the Polish Legion of American Veterans,” he said. “One of our customers came in and asked if there was a Marine who knew how to ride horses. Everyone knew I was a ‘Jack of all trades, master of none,’ so they suggested me. The customer was like, ‘You’re perfect – we want you to come out,’ so I went out to the barn, which was right down the road from my house. They got me on a horse and said, ‘You’re perfect; we’ll teach you.”
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So began Gil’s involvement with Operation Wild Horse, a not-for-profit organization dedicated to raising awareness of veteran suicide. Operation Wild Horse teaches veterans and active-duty service members basic horsemanship from the ground up. The organization also participates in parades, and their contribution often includes a riderless horse to honor the fallen. “Operation Wild Horse is an organization that gives veterans a riding chance to survive,” Gil said. “When I got involved, they needed some help with their barn. I talked to the folks at West Side Tractor Sales and told them what a great organization it is and they said they’d be happy to help. I also reached out to Home Depot and they donated $25,000 of materials. With donated materials from Home Depot, heavy equipment rentals from West Side Tractor Sales, and volunteers from both Home Depot and West Side Tractor Sales, we completed a $100,000 barn project that makes it possible for even more veterans to come out and enjoy themselves.” Operation Wild Horse isn’t just committed to saving the lives of veterans and active-duty service members. The horses the organization uses to work with veterans are wild American mustangs, which many consider to be a threatened species. “Not only do the horses rescue the veterans, but we veterans raise money to rescue these horses,” Gil explained. “I make American flags out of recycled materials and sell them so that I can give that money right back to the organization.” Thus far, Gil’s efforts to raise money through art have been wildly successful. He and a Marine Corps pal sold enough flags to sponsor a horse. At $10,000 a year, the sponsorship is no small feat, but entirely worth it, according to Gil. “Operation Wild Horse is an amazing program; it’s really wonderful and it works,” he said. “The organization runs entirely on donations, so we’re always looking for sponsors – anyone who appreciates veterans and would love to change their lives. The life of a veteran is so valuable.” For more information on West Side Tractor Sales, visit www. westsidetractorsales.com, or connect with the company on Facebook and YouTube. To learn more about Operation Wild Horse – including how to get involved as a veteran or sponsor – call Patti Gruber at 847-561-8194, email pgruber@veteransrandr. org or visit https://bullvalleyequestriancenter.weebly.com/ operation-wild-horse.html. Operation Wild Horse is also on Facebook.
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Recruiting Women to Work in the Heavy Equipment Industry:
The
W
is the limit
By Megan Mattingly-Arthur ith a significant portion of the heavy equipment industry’s workforce nearing retirement and a concerning lack of young workers or new hires available to take their place, the workforce crisis looms large in the minds of many dealers. It costs the industry a shocking $2.4 billion per year in lost revenue and, with no end in sight, more and more dealerships are having to find creative ways to attract new employees – including reaching out to a demographic that’s been historically underrepresented in the heavy equipment industry: women. Boasting strong mechanical aptitude and interpersonal skills, along with a drive to work hard, learn as much as they can, and prove themselves to their employers and co-workers, women make ideal employees – and those in the heavy equipment industry aren’t the only ones who’ve noticed. Employers in the related fields of construction, mining and agriculture are also courting female workers like never before. However, despite their desirability to employers, few women actually pursue careers in the heavy equipment, construction, mining and agricultural industries and, sadly, many young women don’t even consider these fields an option when entering the workforce. That needs to change – and it’s up to dealers not only to reshape perceptions of who belongs in the industry, but also to convey to women that careers in heavy equipment offer great pay, benefits and opportunities for growth. To that end, it’s important for dealers to know where, when and how to conduct this essential outreach. Schools are exceptionally fertile ground for recruitment. Outreach efforts geared toward students should begin long before they’re ready to choose a career – ideally while they’re in middle or high school. Attending a child’s “Bring Your Parent to School” career presentation is a great way for dealers to get their feet wet. Donating equipment to a school’s shop program, organizing or participating in career day events, and inviting teachers and students to tour a dealership are all great ways for dealers to not only expose students of both genders to the possibility of a career in the heavy equipment industry, but to point out to young women that jobs in the industry aren’t just for men. Dealers can also work to develop relationships with the counselors at their local middle and high schools. Many schools and school counselors push four-year higher education programs as the only legitimate path to success, despite the fact that trade workers often earn more than those with four-year degrees. Failing to inform students of the validity of careers in skilled trades does them a disservice. School counselors who have had positive interactions with local dealers and dealerships may be more likely to recommend trade careers to male and female students who work hard, enjoy working with their hands and are willing to work, but don’t necessarily excel in traditional academic settings. High school students who display maturity and responsibility may even be ready to participate in a structured internship program, where they attend school part time while also working part time at a dealership in order to receive hands-on training. Structured internship programs are also ideal for college students – and community and technical colleges are a great place to find and develop potential employees. Volunteering time and donating equipment are just a couple of the ways that dealers can develop relationships with colleges and gain access to students. While student outreach and engagement is vital to the long-term health of the workforce, dealers who need technicians now may be more focused on finding ways to get potential hires in the door and throw them into training. Industry-specific job boards can help dealers connect with job seekers, though female applicants are often few and far between. Still, the internet – particularly social media – can be a fantastic resource for scouting potential female employees. The plethora of female-led direct-selling businesses demonstrates the need for well-paying jobs for women, and careers in the heavy equipment industry can deliver in a way that many other opportunities can’t.
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GOING GREEN
Environmental Sustainability Gets Easier
R
By Clifford Black esponsible for roughly 30 percent of the world’s greenhouse gas emissions, the construction industry is constantly pursuing cleaner methods of development. Along with the use of green building materials and smarter pollution prevention measures, the use of sustainable construction equipment is being looked at as a way to ensure significant reductions in diesel emissions in terms of exposure and tons of pollution produced. The EPA has announced the availability of $40 million in competitive grant funding for the Diesel Emissions Reduction Act (DERA) Clean Diesel Funding Assistance Program. The clean diesel program delivers support for projects that protect human health and improve air quality by reducing emissions from diesel engines. “These grants will incentivize improvements to aging diesel fleets and improve air quality throughout the country,” commented EPA Administrator Scott Pruitt. “EPA will continue to target funds to areas facing significant air quality issues.” Since the DERA program’s inception in 2008, the EPA has awarded funds to more than 730 projects across the nation. Many of the grants helped to fund cleaner diesel engines that operate in economically disadvantaged communities where residents suffer from higherthan-average instances of asthma and heart and lung diseases. Developing cleaner diesel engines requires enlisting a variety of stakeholders. Senator Tom Carper, top Democrat on the Environment and Public Works (EPW) Committee, said, “The DERA program continues to be a bipartisan, commonsense approach to curbing toxic diesel emissions, promoting public health, and spurring economic growth. In fact, since its inception, DERA has been one of the most cost-effective clean air programs, with an average of $13 in health and economic benefits for every $1 put into the program.” The recent grant funding prioritizes fund distribution to areas hard hit by poor air quality concerns associated with diesel use. Applicants must request funding from the EPA, and the maximum amount of federal funding awarded varies by region. The region that covers Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin will see the highest distribution of grant funds. Rep. Ken Calvert commented on the DERA program: “Steps to reduce emissions from older diesel trucks are some of the most costeffective measures we can take to improve the air Americans breathe. By prioritizing the DERA grant funding in regions that have some of our most complex air quality challenges, the resources being awarded can make a significant impact. I am pleased Congress was able to provide $40 million for these grants and appreciate the efforts of everyone at EPA in making it a success.” Applicants eligible for grant funding include regional, state, local or port authorities with jurisdiction over transportation or air quality. Nonprofit organizations may apply if they provide pollution reduction or educational services to diesel fleet owners or have, as their The EPA has announced the principal purpose, the promotion of transportation or air quality. availability of $40 million in Diesel equipment eligible for funding includes school buses; class 5–class 8 heavycompetitive grant funding duty highway vehicles; locomotive engines; marine engines; and, of course, non-road for the Diesel Emissions engines, equipment or vehicles used in construction, handling of cargo (including at Reduction Act (DERA) Clean ports or airports), agriculture, mining, or energy production. Diesel Funding Assistance Since its implementation, DERA has upgraded 73,000 vehicles and has saved Program. over 450 million gallons of fuel. It is estimated that the total lifetime emission reductions achieved through DERA funding are 14,700 tons of particulate matter and 335,200 tons of nitrogen oxides. Industry leaders like Caterpillar and Volvo have been vigilant in finding a balance between environmental stewardship, social responsibility and economic growth. By integrating sustainability practices into the core of such businesses, these companies are ensuring continued success in the decades to come. Caterpillar’s CEO, Jim Umpleby, recently detailed the company’s position: “Collaboration is a watchword for Caterpillar Foundation investments and our sustainability efforts worldwide. We know collaboration among our employees and with our customers, suppliers and dealers is necessary to achieve our vision of improved environmental quality and stronger communities around the world. We know working together we can make greater progress toward our sustainability goals and greater strides toward building a better world.” September 2018 | Construction Equipment Distribution | www.cedmag.com | 29
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LEADERSHIP DEVELOPMENT INSTITUTE AED Inaugural LDI Participants See Fantastic Return on Investment BY MEGAN MATTINGLY-ARTHUR
A
ssociated Equipment Distributors recently concluded its first-ever Leadership Development Institute (LDI). Designed for high-level managers preparing for broader roles in their organizations, the one-year program featured three 3-day interactive workshops, monthly webinars between live sessions, ongoing professional development coaching, and the completion of a capstone project, which required participants to review their respective dealerships and identify areas for improvement.
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Developed by a team of successful industry experts and executive development professionals, the LDI curriculum spanned a wide range of topics and taught both technical “hard” skills and leadership “soft” skills. The program cost $4,995 for members – with participants paying their own travel expenses – and AED was eager to prove its value. “The program encompassed all areas of the dealership, and participants received a lot of content,” said Rex Collins, an HBK CPAs & Consultants principal who helped build the LDI curriculum from the ground up and served as an instructor for the program. “We really wanted to prove to dealers that this was a worthwhile program, so our goal was for all participants to achieve a 20:1 return on investment (ROI) and add about $100,000 to their bottom line.” The result was even better than they could have hoped, with participating dealerships saving an average of $500,000. Also, the final capstone project was more than just a chance for participants to show what they’d learned while completing the LDI program – it was an opportunity for them to use the skills they’d gained to actually save their dealerships money. Participants presented projects tackling issues in the parts, rentals, sales and service departments of their dealerships, as well as problems with hiring and expense control. The results were phenomenal. “Our highest-performing participant had a more than $1.8 million net to the bottom line, after all the expenses related to the project,” Collins said. “The investment was $5,000 and they netted $1.8 million out of it. When the participant presented the project to upper management, they estimated that it would net about $800,000 – which is great, fantastic even, and far exceeded what we were hoping for – but after they went back and implemented it, they said, ‘We undersold this; it’s going
to be a $1.819 million net to the bottom line.’” Each of the LDI participants saw a significant ROI, according to Collins. “Even our lowest-performing participant did really well, achieving an ROI of more than $90,000,” he said. “This inaugural Leadership Development Institute program had around 25 participants, and we were just shy of meeting our goal of 20:1 ROI for everyone – and just by one participant who missed the goal by a few thousand dollars. That’s wonderfully successful, especially for a new program. Overall, we averaged a 96:1 ROI for the group.” Having completed the LDI program, the first batch of participants are putting what they learned into practice, improving processes at their dealerships and working to combat persistent industry problems, such as a lack of available technicians and a rapidly aging workforce. “I’ve had some follow-up meetings with some of the attendees and they’ve commented about how they’re not only using the “hard” skills they learned, but the “soft” skills – how to manage people, how to communicate upstream and downstream to effect further change, etc. – as they’re looking to change processes at their dealerships. Most importantly, the participants aren’t done learning. They’re continuing to leverage the knowledge they got by completing this program.” AED’s next Leadership Development Institute is scheduled to begin in October 2018. Registration cost is $4,995 for members and $5,995 for nonmembers. For more information on the AED Leadership Development Institute, or to register to participate, visit http://aednet.org/leadership-development-institute. To learn more about AED membership or programs, visit http://aednet. org or connect with the Association on Facebook, Twitter, YouTube and Google+.
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PROGRAM HIGHLIGHTS The AED Leadership Development Institute (LDI) is a one-year program for high-potential managers who are expected to prepare for broader organizational roles. • Cohort learning experience with interactive workshops facilitated by respected industry experts and executive development professionals • Content focused on both functional/technical know-how and leadership “soft skills” with industry-relevant case studies, role plays, and application projects • AED Leadership Excellence 360 Feedback (LEX-360), a customized assessment with feedback from the people who know you best: your manager, your peers and your subordinates • Monthly webinars between live sessions • Key synergies across sales, service, parts, rental, finance, and administration
Coaching Each participant will work with
an executive coach throughout
the LDI program. Coaches assist
participants with drafting an Individual Development Plan (IDP) based on
priorities identified in the LEX-360. Coaches troubleshoot issues, hold
participants accountable and challenge development.
Capstone Project The capstone project is a key feature of LDI in which participants conduct a review of their respective
dealerships and identify areas for improvement. Realworld SWOT analysis and action planning generate measurable ROI
business improvements. Participants work on their capstone projects
throughout the program and present their final project at the last session, showing how they’ve applied their LDI knowledge and capabilities to generate business improvements within
their respective dealerships.
Register at bit.ly/2018ldi
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LDI learning sessions are facilitated by highly regarded industry experts and executive development professionals, with guest keynotes and workshops by successful executives from across the construction equipment industry. Session 1: October 10 – 12, 2018
Register at bit.ly/2018ldi
PROGRAM OVERVIEW
• LDI methodology and program highlights • Applying LDI to your dealership • Leadership vs. management • Strategic planning • SWOT analysis and setting goals
T H E I N N O V AT I V E D I S T R I B U T O R M I N D S E T
• Industry outlook • Crafting and communicating your vision of tomorrow • Driving innovation and change in distribution
Session 3: June 19 – 21, 2019 LEADERSHIP AND ENGAGEMENT
• Creating a strong company culture • Cultivating collaboration among the team • Motivating and engaging employees • Leading across generations
MARKETING AND BRANDING
Session 2: February 27 - March 1, 2019 O P E R AT I O N S : PA R T S , S E R V I C E , R E N TA L
• Process improvements across operational areas • Rent-to-sell vs. rent-to-rent decisions • Significance of the rental department • Growing your rental fleet • Understanding big dealer/small dealer competitive advantages • Maximizing parts department profitability • Maximizing service department profitability • Navigating through operational change
• Optimizing your online presence • The importance of your online storefront • Using analytics to keep visitors coming back • How your brand impacts talent recruitment
PLANNING FOR THE FUTURE
• Succession planning • Creating a talent and retention matrix • Talent selection • Behavioral interviewing
PROGRAM REVIEW
• Final capstone presentations • Next steps in your development as a leader
SALES
• Building relational capital • Connecting with customers • Forging high-performing teams • Focusing on collaboration instead of command • Making every interaction matter
FINANCE
• Financial reporting • Financial growth • Functional perspective/metrics • Tax
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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
LDIHouse.indd 1
7/19/2018 9:24:36 AM
INTRODUCING AED360 DOWNLOAD AED’S NEW ALL-ENCOMPASSING MOBILE APP
NOW AVAILABLE ON
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WILL A RISE IN RENTAL PRICES BE A DRIVER OF SALES?
JOH N CR UM Senior Vice President Construction Group, Wells Fargo Equipment Finance
W
ith optimism at a 20-year high, it would be easy to read the headline from the 42nd annual Wells Fargo Construction Industry Forecast, agree that the industry is looking good, and move on to other things. However, there is more to examine. What are your customers and competitors telling you about their intentions as they relate to rental activity?
of the country. The same dealers report that there has not been a significant increase yet in rental rates across the industry.
Let’s start with your competitors: More than half say they will increase the size of their rental fleets this year, which has been occurring for years, if not decades, except for the period of the Great Recession.
1 BASE COST.
Following several years of distributors and rental companies planning to increase their fleets, just over half (55 percent) plan to add to their rental fleet availability, and another 38 percent indicate they will maintain the size of their existing fleet. Only 7 percent intend to shrink the size of their fleet. Does this mean there will be an oversupply of equipment available for rent, driving prices down? Don’t bet on it. At the time of the survey, 65 percent of distributors were currently renting more equipment heading into 2018 than they were the prior year. We noted at the time that this was a rebound from the previous year. In addition, there is a robust amount of construction activity creating more demand this year. On the non-scientific side, the distributors we speak to across the country indicate that rental activity in the first five months of the year was strong, and in some cases, demand exceeded availability for certain asset types – and this is with significant weather issues in many parts
Is this the year the industry will see a general increase in rates, and what would the impact be? The answer is complex and depends on a variety of factors, but as any market observer knows, price is dictated by three key components:
We know that the price of modern construction equipment continues to increase, and with the recent activity relating to steel tariffs, products might very well get more expensive still. 2 COST TO CARRY THE PRODUCT.
Two major components of carrying-cost continue to rise. The first is the cost of skilled labor to service and maintain the equipment. The shortage of technicians and mechanics is well documented. There aren’t enough people to do the work, and those who are available are paid handsomely for their skills. The other cost that hasn’t received as much attention is the cost of interest to carry a large rental fleet. The industry has enjoyed years of historically low interest costs. Many rental fleets are funded with borrowed money, and a large portion of the borrowed money is repaid with interest based on a floating rate, mostly 30-day LIBOR-based. If you haven’t followed this index lately, as of this writing, the 30-day LIBOR is up 92 basis points in the past year and 59 basis points in the past six months. This means a typical rental unit costing $100,000 will cost $920 more per year to carry than it did a year ago. Is this significant? Assuming
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would make them consider buying instead of renting. Another 37 percent said that an increase between 5 percent and 15 percent would make them consider buying. These are not insignificant numbers when you consider the other factors we’ve already discussed: equipment costs are increasing, carrying costs are increasing, availability in some cases is limited, and demand is increasing. 80 percent utilization to maintain the same profit margin, the company carrying that unit will need to charge almost $100 per month more for that unit. Depending on how the rental rate is set, that increase alone could be between 2 percent and 3.5 percent monthly. 3 AVAILABILITY VERSUS DEMAND.
Some manufacturers are reporting difficulty keeping up with orders, and this is confirmed by distributors and rental companies. While there is intention to increase the general size of the rental fleets, the ability to do so may be limited by availability from factories. Let’s talk about your customers. They are the end users of construction equipment. You know who they are. You know they are busy. You know they are working. In the Construction Industry Forecast, they told us that they are generally optimistic, which means they will likely need to use more construction equipment. Rentals have become an increasingly important component of their equipment fleet management strategy. Approximately four out of five end users surveyed said they rented equipment in 2017 and intended to continue. The top reasons for renting are flexibility to return and the availability to obtain what they need and when they need it. Only 4 percent indicated that they rent due to low rental rates. We also asked respondents what would happen if rental rates were to increase this year, and they answered definitively. More than one in four (26 percent) said that even a small increase of less than 5 percent
The factors that would reasonably lead to an increase in the rental rates charged to the end users are in place. The suppliers of rental equipment will make decisions on whether or not their cost increases should be incorporated into the rates. If it happens, the decision point will be put to the end users, who – if they act as they said they would – may very well buy at higher levels than in previous years. About John Crum
John Crum has worked in the construction equipment finance industry for the past 28 years, holding a variety of positions in sales and credit management. He joined Wells Fargo Equipment Finance in May 2006 and currently serves as national sales manager of its Construction Group, overseeing originations activities in the U.S. To contact John, email him at John.D.Crum@wellsfargo. com.
ABOUT WELLS FARGO EQUIPMENT FINANCE Wells Fargo Equipment Finance provides competitive fixedand floating-rate loans and leases covering a full range of commercial equipment for businesses nationwide as well as floor planning and inventory financing, and vendor programs in selected industries in the United States and Canada. Wells Fargo Equipment Finance is a leading bank-affiliated equipment leasing and finance business in the United States by asset portfolio and annual originations, with more than 335,000 customers and 2,500 team members. Wells Fargo Equipment Finance is the trade name of the equipment finance businesses of Wells Fargo Bank, N.A., and its subsidiaries. Canadian business is transacted by Wells Fargo Equipment Finance Company. The opinions expressed in this document are general in nature and not intended to provide specific advice or recommendations for any individual or association. Contact your banker, attorney, accountant or tax advisor with regard to your individual situation. The opinions of the author do not necessarily reflect those of Wells Fargo Equipment Finance or any other Wells Fargo entity. September 2018 | Construction Equipment Distribution | www.cedmag.com | 37
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Journey to the Top: RMT Equipment president and his father built their company from the ground up By Megan Mattingly-Arthur The Lefebvre family has an extensive history in the heavy equipment industry. Robert Lefebvre – who once served as a vice president for hydraulic breaker manufacturer Tramac – and his son, Marc, have long shared a passion for both heavy equipment and dealer development. In 1998, the father-and-son duo established RMT Equipment Inc. in Canada and began selling weighing systems for truck loaders, with Marc at the helm of the company as president. RMT Equipment also offers backup camera systems.
For more information on RMT Equipment, visit www.rmtequip.com, or connect with the company on Facebook or YouTube. 38 | www.cedmag.com | Construction Equipment Distribution | September 2018
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In the beginning, when RMT Equipment was just a two-man operation, Marc Lefebvre juggled a number of roles, from salesperson to bookkeeper to installation expert. “When you start a company and there are just two of you, you cover everything in the beginning,” he said. “You do accounting, sales, phone calls and installations. I used to go out on the road, selling and installing the loader scale in our province.” After the products from the company’s main supplier – Italian loader scales manufacturer, VEI Payload Management Systems – became popular locally, VEI tapped RMT Equipment to develop dealer networks in both Canada and the United States, as well as serve as its head office in North America. This allowed RMT Equipment to hire more employees and technicians, freeing up Marc to spend more time focusing on dealer development. “After all these years, our four oldest dealers in both countries are still doing business with us,” he said. “I’m very proud of their loyalty.” RMT Equipment recently celebrated its 20th anniversary. While Bob Lefebvre retired five years ago after a long and successful career in the heavy equipment industry, Marc is still running the company – though now that it’s grown to nearly 20 people, his duties in his role as president have changed a bit. “Today the company is larger and my role is like that of a coach or the captain of a team,” said Lefebvre. “I make sure our vision is promoted to the employees, but I’m also inspired by them to make RMT the best partner for weighing and vision solutions for heavy equipment customers.”
The company seems well on its way to achieving that goal, thanks to its serviceand support-driven philosophy. “We are 100 percent service and support driven,” Lefebvre said. “A lot of companies would say this, but we don’t just say it, we really, really like people.” RMT Equipment also boasts an advanced line of products and productivity solutions, as well as innovative development and manufacturing capabilities. “We’re now developing some new products, like the TrackWeight weighing system, which consists of an on-board truck scale for highway trucks,” Lefebvre said. “This is a product that we engineered, developed and manufactured. Being both a distributor and a manufacturer gives us a very different approach when we visit customers – yes, we have products to offer, but we also have the ability to design and maybe make something different based on customer demand.” When he’s not carrying out his duties as president of RMT Equipment, Lefebvre loves spending time with his wife, 12-year-old daughter and 9-year-old son. He also enjoys fishing, traveling and playing hockey. Having spent more than two decades in the heavy equipment industry, Lefebvre said the thing he likes most about his job is talking and spending time with customers and operators. To those who may be considering working their way to the top of the heavy equipment distribution or manufacturing industries, Lefebvre had this advice: “Work hard and be honest, but also be innovative in the way you serve customers. Technology is great, but people are people, and if you have the customer touch, you are definitely ahead of the game.” September 2018 | Construction Equipment Distribution | www.cedmag.com | 39
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equipmentwatch.com
2018-Q2 IN REVIEW Rental Update
Download Full Report: bit.ly/EWSeptCED MICHAEL QUINLAN
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 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.
Number of Participating Rental Companies: 414 Number of Equipment Types Covered: 221 Total Number of Rates Collected: 1,418,100 Second Quarter in Review
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2018-Q 2 I N R EV IE W | Rental Update Marketplace Analysis: Average Weekly Rate Trends
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equipmentwatch.com Marketplace Analysis: Regional Variance
Marketplace Analysis: Percent Change in Regional Variance from Q1-2018 to Q2-2018
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2018-Q 2 I N R EV IE W | Rental Update
SECOND QUARTER CONCLUSIONS & THIRD QUARTER OUTLOOK The second quarter of 2018 saw an overall decrease in rates. This is unusual, as normally in the second quarter we see an uptick in rates from improved working conditions nationwide. Q2 2018, however, did not see a drastic increase in working conditions. April this year was the coldest in two decades1, and several cities hit record high temperatures in May2. The states in and around region D, especially Wisconsin and Iowa, were most affected by these extremes in weather. Region D, as seen on the previous page, saw the greatest decrease in weekly rental rates of all the regions in the continental U.S. In contrast, the states in regions G and I were unaffected by these highs and lows, and weekly rental rates there were either also unaffected, or even increased. The weather resulted in more delayed projects, less demand from contractors, and lower prices from rental houses to entice and stay competitive. When looking at how weekly advertised rental rates changed over the past year, six of the top ten equipment types increased, even with seeing decreases in Q2-2018. The equipment types that increased the most over the past four quarters were I.C. Pneumatic Tire Lift Trucks, Compact Track Loaders and Telescoping Boom Rough Terrain Lift Trucks, with increases of 4.68%, 4.31%, and 3.41%, respectively. Accounting for annual inflation of 2.2%, the other equipment types did not see substantial increases. 4-Wd Articulated Wheel Loaders had, by far, the largest decrease over the past four quarters of any of the ten equipment types, dropping by 9.65%. None of the other equipment types have dropped by more than 1% over the past year. The second quarter of 2018 was another busy time for United Rentals, as they posted $1.89 billion in revenue for Q2 (a $290 million increase compared to Q2 2017)3, and made the large purchase of BakerCorp, a multinational provider of pump, tank, trench shoring, and filtration rental solutions for a wide range of applications. This acquisition should continue to bolster their place atop the rental world and could lead to other large rental houses, such as Sunbelt, to follow suit by searching for lucrative acquisitions of their own. Looking ahead to Q3-2018, we should see advertised rates increase due to a couple factors. First, in some regions, renters will be looking to make up for lost productivity from the unexpected harsh weather in Q2, and rental houses will want to take advantage of the demand in these regions. Second, while Mexico and Canada were initially exempt from the tariffs on steel and aluminum imposed by the president, they became subject to them as of June. Canada accounts for 16% of imported steel and 41% of imported aluminum for the United States4. So, the inclusion of Canada may expedite the impact of the tariffs on construction costs, and rental rates would increase as a result. Rental revenues for the third quarter of 2018 should continue to increase, even with the second quarter being very profitable for most rental companies. Rental Operations Insights
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Take care of where the
Rubber
MEETS THE
By Brian Frederick ires and tracks are vital for well-maintained equipment. What’s the most important part of any building? That’s easy – everyone knows it’s the foundation. If you don’t have a strong base to start with, even the best-designed building won’t be sturdy. Your equipment is no different. If you don’t pay proper attention to your tracks and tires, you won’t have stable footing, which will cause all sorts of problems, not the least of which is a higher cost of ownership. Tires and tracks represent a significant portion of cost of ownership. For most construction operations, tires and tracks are the single biggest cost of ownership for a piece of equipment after operator expenses and fuel. To calculate how much tires and treads cost you, you need to factor in several numbers, including the purchase price, as well as the cost of repair and replacement. Because the life expectancy of tires is generally far shorter than that of the equipment they’re used on, their depreciation rate is much higher. But exactly how fast tires and treads wear out depends on your specific circumstances. In other words, you can expect tires and treads to play a significant role in cost of ownership, but there’s no one-size-fits-all formula for calculating life span. The best way to estimate how long you can expect your tires and treads to last is by using historical data from similar operating conditions. Minimize upkeep and replacement costs with a good track and tread maintenance program. The best way to ensure you’re not putting undue wear and tear on your tires or tracks is to keep them in optimal working condition. Here are some guidelines to help you maximize life span:
T
Tires
▶ Buy the right tires for the job: As a construction professional, you already know solid or foam tires are almost always a better job site choice than air tires, but there are many other options as well. In addition to choosing the right tire grade for your equipment (“E” for earthmovers, “L” for loaders, etc.), you should also choose the right tread pattern for job site terrain. L2 tires give loaders good traction in soft and sandy terrain but aren’t as durable as L3 in rocky lots.
ROAD
▶ Check tread depth: This is a key indicator of overall health. Make daily inspections a habit, checking for wear, cracks and abrasions. ▶ Don’t forget to rotate: Just like on your car, tires can wear irregularly. Rotating them on a regular basis helps ensure they all wear more evenly and last longer.
Tracks
▶ Prep your equipment before you get to the job site: Maximizing your tread life depends on making informed decisions before work even begins. Consider ground pressure needs and debris to determine whether steel or rubber tracks are a better choice. Choose the narrowest shoe possible to meet flotation and terrain needs. ▶ Train your operators: Pivot turns or constant operation on a slope can lead to accelerated wear. Encourage your operators to be mindful of these things and take more gradual turns and operate on level ground as much as possible. ▶ Monitor track tension: You should regularly check tension in working conditions and adjust it accordingly. Too much tension causes roller and idler wear and tear. Too little leads to instability. Proper tension ensures that available power is put to its best use.
Both tires and tracks
▶ Avoid abrasive materials whenever possible: Crushed rock, rebar and recycled materials can wreak havoc on both tires and rubber tracks. Stones and construction debris can pierce or get stuck in tires, or get jammed in track idlers and sprockets. ▶ Try to minimize contact with curbs and walls: Constantly bumping into curbs, walls and other obstacles creates wear patterns and can cause damage and downtime. ▶ Make inspections an everyday thing: Operators should inspect both tires and treads on a daily basis to identify wear and tear and remove debris that accumulates. Dirty and damaged tires and treads not only wear out faster, but they can also lead to excessive wear on other undercarriage components. Tires and treads are where the rubber literally meets the road (or dirt, in many cases). Whether your fleet is on tracks, tires or both, if you want to get the most out of your investment and minimize cost of ownership, you should have basic maintenance practices in place.
44 | www.cedmag.com | Construction Equipment Distribution | September 2018
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3 MISCONCEPTIONS
A B O U T C O N S T R U C T I O N T E C H N O L O GY
1
“Integrating new technology is too complicated and my workers will never be able to adapt quickly enough.”
A common fear is that new software will be too difficult to bring in to the whole company. They’re worried not everyone will understand the technology – especially older employees who have been so used to pen and paper. And training every employee can be a tedious process, but that shouldn’t deter you from moving forward. The solution is to find the right version of technology for your company and to understand that most applications and interfaces are designed to be easy to use. You have options when it comes to new software. You don’t need to jump right in to the platform with the most functions. If you think your workers won’t adapt as quickly as you’d like, choose a simpler technology with few functions. Test multiple solutions and pick one that assimilates well with your company. The goal is technology that will solve a problem within your company, not make life more difficult. It is also important to provide proper technology training. The most common failure with a companywide rollout of new technology is a lack of employee training, from leaders to front-line employees. The fallout comes when the on-site crews don’t fully understand the benefits of the software. To ensure a smooth implementation, make sure everyone who will be using the technology is properly trained.
3
By Madison Eklund
T
echnology is changing the construction industry. Whether it’s mobile apps, GPS trackers or autonomous vehicles, technology has proven to help streamline processes in construction and trucking. While most industry professionals recognize the increased role of technology in their future, some are still hesitant to buy in. That skepticism could be due to misconceptions about construction technology, its efficacy and how hard it will be to use. Put your worries to rest – let’s dispel a few of those misconceptions.
2
“It’s not crucial to upgrade to new technology.”
Everything is working fine now, so why would you want to upgrade to new, unknown software? Because in the long run, tech solutions will make day-to-day processes more efficient and cost-effective. Most on-site technology aids people in the field, aiming to make their jobs easier. The same technology will also make things more efficient for people in the office by allowing real-time communication and progress reports. Using one integrated technology for your company will create better, faster communication, as well as making all processes easier to manage. These attributes will allow for more timely and informed decisions, which will benefit the overall profitability of your company. It may not seem important, but it will become more crucial with each day. Upgrading to newer technologies now puts your company a foot in front of the competition later.
“Software developers don’t understand what we need because they’ve never set foot on a construction site.”
Because technology has not always been directly aligned with the construction industry, it can be hard for company leaders to believe that software developers actually have their needs in mind. The important thing to understand is that the best-in-class software was designed for companies like yours. They do understand your problems, and developers and producers want their products to work seamlessly in our industry. To do that, they have to put time and energy into understanding the business. Most developers are in direct contact with industry leaders and clients. There’s no question that technology is currently impacting the construction industry, and the future only holds more advancements. It’s the companies that have the ability to adapt and embrace technological change that ultimately survive and see success in the competitive business environment. September 2018 | Construction Equipment Distribution | www.cedmag.com | 45
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>> SALES SUCCESS
JOHN CHAPIN
The Four Ingredients Needed for Sales and Business Success It happened again two weeks ago. I met with someone struggling to get their business going. One of the first questions I asked (and always ask) is, “What are you doing to bring in revenue (sell something)?” “I have a display at the local Walmart, and I belong to five chambers of commerce.” “And how long have you been doing that?” “Five years.” “And how much business have you gotten from each one?” “Pretty much zero from all.” I’m not kidding. I also wish I could say this experience is the exception to the rule. Actually, it is more the rule than the exception when I talk to struggling salespeople or solopreneurs. What’s the definition of insanity? Right. For five years. Look, it really only takes four things to be successful in sales and business. If you have all four, success is virtually guaranteed. If you are missing even one, eventual failure is guaranteed.
4 Items for Sales and Business Success Item #1: Good people skills
If you’re good with people – in other words, if people like you because they feel good around you and believe you care about them – you’re off to a good start. If people like you, they’ll buy from you. The best salespeople and businesspeople always have great people skills. They can connect and carry on a conversation with anyone at any level or any age. They have a charisma about them and their conversations flow smoothly and easily. They are able to make people feel important by talking about what’s important to them, being a good listener and focusing completely on the other person as if they are the only person in the world. Even in a crowd, they can make you feel as if the two of you are the only ones there. That relationship, that connection, is usually the most important aspect when selling.
Item #2: A great attitude
A great attitude includes passion, confidence, conviction, commitment and perseverance. It also includes being positive. The former attributes ensure you have the mental wherewithal to go out into the world with enthusiasm and remain that way while suffering the slings and arrows necessary to succeed in business and sales. The latter attribute, being positive, ensures that you present well to people. Your objective is to be a pleasure to interact with, to be the most pleasant person that people encounter during the day, and to be a joy to do business with.
You want people to enjoy the experience of working with you. This means going above and beyond, doing more than people expect, and always doing everything in your power to make sure the client feels important. You want to have a can-do, happy-tohelp-you attitude.
Item #3: The right activities
Activity starts with your having a plan that includes how much business you need, how many people you need to talk to, and where to find those people. In addition, you need the selfdiscipline to stick to the plan and ensure that you spend your time and money on the right activities and resources. The most important activities you spend time on during the day are the ones that bring money into the business. This doesn’t include working on your logo, driving to the post office or entering information into the computer. During business hours, 90+ percent of your time should be spent on activities that generate cash flow. The fastest way to build business is by calling on people in person or on the phone. Business is a contact sport and is all about relationships. In order to build relationships and connect with people, you need to be talking to them live, not sending spam emails or LinkedIn messages, or connecting on Facebook. Also, your activities should be focused on meeting new people (strangers). Going to the same networking events and seeing the same people over and over again is a mistake. Incidentally, discomfort and fear of calling on people, both strangers and people you know, is what stops most people and causes them to fail in sales and business. If you’re going to be successful, you need to get over that. Bottom line: focus on meeting strangers and making lots of contacts. Business is a numbers game; if you talk to enough people during the day you will eventually run into someone who needs what you have or knows someone who needs what you have. So go out there and take massive action.
Item #4: A good product and support
This one goes without saying. If you have good people skills, a great attitude, and are focused on the right activities, you’ll make your share of one-time sales. But if you have a bad product or are lacking in support, the word will get out and any success will be short-lived. John Chapin is a motivational sales speaker and trainer. For his free newsletter, or to have him speak at your next event, go to: www.completeselling.com. John has over 29 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year, “Sales Encyclopedia.” You can reprint this article provided you keep contact information in place.
JOHN CHAPIN is a #1 Sales Rep w/29+ years’ experience, author of the 2010 sales book of the year, “Sales Encyclopedia” (Axiom Book Awards) – the largest sales book on the planet (678 pages). Reach him at 508-243-7359, johnchapin@completeselling.com and www.completeselling.com. 46 | www.cedmag.com | Construction Equipment Distribution | September 2018
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September 2018 | Construction Equipment Distribution | www.cedmag.com | 47
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PROTECT
YOUR SERVICE CENTER FROM ROLL-IN RISKS
Q
How should my dealership manage fire risks in our service center?
A
RISK MANAGEMENT
//ERIC STILES
As a dealership owner, you know having a busy service center helps maximize profitability. You also recognize that the equipment inside presents real risks when their service issues make them fire hazards.
• A S K your customers if the units they bring in for service have exhibited any electrical, fuel, or hydraulic system problems.
• D O C U M E N T all indications of electrical, fuel, or hydraulic T H AT ’ S W H Y TA K I N G T H E FOLLOWING ACTIVE APPROACH TO MANAGING THESE RISKS I S K E Y:
system symptoms on service orders.
• C R E A T E a procedure to tag units with electrical, fuel, or hydraulic system issues so your service technicians are aware.
• S E C U R E machinery outside until your technicians can complete
the necessary service work, to avoid leaving those units indoors after hours.
• D I S C O N N E C T the battery when you need to leave a unit inside overnight or over the weekend, and have your service technicians document this step.
• N E V E R leave chargers connected to batteries overnight or over a weekend unless you’ve pulled the battery from the machinery.
• E N S U R E that your technicians turn any fuel shut-off switches to the OFF position after hours.
We’re committed to helping you protect your business by providing resources that can help you manage loss-producing situations and prevent accidents. Your customers depend on you to provide safe, reliable services – and you can trust us to help you meet those expectations. You can find additional resources at sentry.com.
As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs. Eric Stiles is Sentry’s lead account executive responsible for maintaining the AED/Sentry relationship.
As the endorsed P&C carrier for AED, Sentry Insurance offers great coverage options and services to meet your dealership needs. Eric Stiles is Sentry’s lead account executive responsible for maintaining the AED/Sentry relationship. This is a paid endorsement. This document is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on the information contained in this document without advice from a local professional with relevant expertise. Safety services are provided by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. 73-676X 14002449 3/8/18 48 | www.cedmag.com | Construction Equipment Distribution | September 2018
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Let’s talk about attracting and retaining employees It’s no secret that a 401(k) plan can help you get and keep quality employees. But it has to be right for you, too. Through open, ongoing dialogue, you’ll benefit from our experience. And we’ll work together to identify the right solution for you. Don’t go it alone. Let us guide you, so you can invest more time boosting your bottom line. Right By You
Let’s get the conversation started. Learn more about how we can help you with retirement planning and increase confidence in your plan at Sentry.com
Property and casualty coverages and safety services are underwritten and provided by a member of the Sentry Insurance Group, Stevens Point, WI. Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. In New York, individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, NY. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. In New York coverage provided through policy form numbers: (Life insurance) 585-3000-01, 390-1000 (SLONY), 390-2003-SLONY; (Disability) 685-9000-31; (Dental) 785-7000; (Group Annuity) 840-300(NY); (Individual Annuity) 380-440. Short-term disability insurance is not available in New York. 73-710A
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