November 2017: Stack the Odds in Your Favor

November 2017

CED

Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership

Stack the Odds in Your Favor by attending AED’s Summit in Las Vegas!

n The Right Stuff Six McCann Industries,

Inc. technicians earn AED Foundation Certification

n Meet Newman Tractor n A Closer Look A construction equipment AED Member Pop Art, Inc., dealership with roots in the farming industry

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contents CED Magazine | November 2017

vol. 83 no. 11

www.cedmag.com

>> FEATURES

26

32

Meet Newman Tractor

The AED Foundation Launches Certified Technician Program

Meet one of AED’s newest members, Newman Tractor. Rick Newman founded Newman Tractor in Boone County, Ky., (a suburb of Cincinnati) more than 40 years ago.

48

A Closer Look: Pop Art, Inc. Pop Art, Inc. is a cloud-based digital solutions powerhouse, offerings tailored sales enablement tools, a robust digital asset management platform, and end-toend custom software development services.

The AED Foundation Certified Technician Program, the first of its kind for the construction equipment industry, recognizes heavy equipment technicians for their expertise and gives dealers an objective way to measure their technicians’ skills and knowledge – which can help attract customers and increase their confidence in a dealership’s service operations.

36

Stack the Odds in Your Favor: Attend AED’s Summit

LAS VEGAS, NEVADA

JANUARY 15-19, 2018

Don’t get dealt out by staying home; put your cards on the table and join your fellow industry peers at The Mirage in Las Vegas, January 15-19. Stack the odds in your favor with AED in 2018!

November 2017 | Construction Equipment Distribution | www.cedmag.com | 3

contents

CED Magazine | November 2017

EDITOR'S DESK Sara Smith, Editor in Chief CED Magazine ssmith@aednet.org

vol. 83 no. 11

A

re you utilizing your AED membership?

As an active member of AED, we want you to use your membership to its full capacity. AED provides a variety of services and business development for our membership at a reduced rate. Our services are designed to enhance and develop the profitability and continuity of construction equipment dealers by providing the tools, resources and a voice in Washington to help you remain viable, expand profits so that you can plan for the future of your dealership.

AED is your pathway to flexible learning opportunities that accommodates to every level of dealership employee, from apprentice to executive. Members can participate in educational learning events, monthly webinars as well as receive our award-winning publication.

Enhance your AED membership experience by becoming involved and engaged. Take advantage of the various tools and education opportunities the association offers, converse with your regional manager and set up a meeting with your local congressman today! Read more about it on Page 18.

>> EDITORIAL Editor in Chief SARA SMITH ssmith@aednet.org Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com

>> GUEST WRITERS Bruce McFee Sullivan-Palatek and Saylor-Bell Michael Roth RER Sen. Mike Rounds U.S. Senate, R-S.D. Christine Corelli Christine Corelli and Associates Brian Shanahan Shanahan Design Inc. Eric Stiles Sentry Insurance

>> ADVERTISING Vice President JON CRUTHERS 800-388-0650 ext. 5127 jcruthers@aednet.org Production Manager MARTIN CABRAL 800-388-0650 ext. 5118 mcabral@aednet.org

>>INSIDE

16 >> Regional Report

AED is at the forefront of important issues in the South Central region.

Coastline Equipment works with educators to school future hires.

Summit small talk brings big success to the Salt Lake region.

Transitioning a family-owned business from one generation to the next.

Your rental competitors are never standing still: Get out in front.

Atlas Copco USA President Scott Carnell started in the family business.

20 trillion reasons to reform taxes and mandatory payment programs.

Here’s how to turn it up.

Find great content ideas to engage customers and build credibility.

AED and AEM members learn at Drivers of the Industry.

Sentry Insurance provides tips for preventing data breaches.

20 >> Donor Profile

22 >> Utah Career Day and Hog Roast 30 >> Family Business 34 >> Be Bold

44 >> Journey to the Top 46 >> View from the Hill 53 >> Sales Dead Last?

56 >> Keep Your Content Fresh 59 >> Forum Recap

64 >> Risk Management

Since 1920 Official Publication of

650 E. Algonquin Road, Suite 305 Schaumburg, IL 60173 630-574-0650 fax 630-457-0132 4 | www.cedmag.com | Construction Equipment Distribution | November 2017

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 © 2017 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173 Phone: 630-574-0650. Periodicals postage at Schaumburg, Ill. 60173 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173.

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business services your aed membership provides solutions and options AED’s membership services and benefits are designed to enhance and develop the profitability and continuity of construction equipment dealers by providing tools and resources.

aed legal call counsel AED’s call counsel is a FREE legal hotline for AED members provided by Kopon Airdo, LLC — AED’s general counsel. Take advantage of this member benefit today, call 312-506-4480 or visit www.koponairdo.com.

CallCenter.indd 9

aed hr help desk AED’s HR Help Desk allows AED members to get answers to simple questions or many employment-related issues free of charge.

Call about any HR compliance or procedural issue, even sensitive personnel situations.

Contact Karla Dobbeck at Kdobbeck@askhrt.com or (888) 412-8079.

1/14/2016 2:40:14 PM

>> FROM THE PRESIDENT BRIAN P. McGUIRE

The Future Is Bright With Education Options At AED’s 2018 Summit Summit is a one-stop shop for you and your team to gain all the learning you need, with an emphasis on the topics that you, as AED members, want to hear about.

The AED Summit is the place to bet on your future in 2018. Start your year off right by attending Summit and gaining the education and tips you need to make the most of your year. Did you know that the AED Summit is the only place with educational sessions specifically tailored for dealers? We have plenty of these offerings planned for the 2018 Summit. All you need to do is show up and attend the exciting Professional Dealer Education options we will have available to grow your knowledge.

We all know that we are involved in an everchanging industry. Summit is your go-to source for workforce development and education, so we have created a schedule of sessions that we know will pertain to everyone. If your department managers and senior staff are not in attendance, then you are truly not getting the most out of Summit. Divide and conquer the educational sessions being offered; your team will be better for it!

Join us on the first day of Summit, Tuesday, January 16, for the beginning of our Professional Dealer Education sessions. We are keeping up with the success of last year by giving you three days of breakout sessions to make sure you get your fill of content and ideas to take back to your dealership.

We want to make sure that you get to see as many of the sessions we have planned as possible. These 36

sessions will cover topics in everyone’s area of interest.

The six education tracks for this year are leadership, management, technology, product support, rental and sales. These tracks will cover industry hot topics and information you need to help you get ahead in your career. Strategic planning, goal setting, avoiding rental contract mistakes, telematics, hiring, recruiting, training tips, digital marketing and client relationships will be covered over the three days of sessions.

Our keynote speakers are Carly Fiorina, former CEO of HP; political contributor Laura Ingraham; a rising star in House Democratic leadership, Congresswoman Cheri Bustos and the senior vice president and chief sales officer for MGM Resorts International, Michael Dominguez. They will share leadership tips, how they got to the places they are now, and much more that will inspire you with ideas on how to bring your organization to the next level.

All of the most up-to-date information can be found on the Summit website. To find out more about our educational offerings, visit aedsummit. com/dealer-education-sessions. For more on what else will be happening during the 2018 Summit, including information on CONDEX, suites, The AED Foundation Fundraising Gala and more, visit aedsummit.com. I look forward to saying hello to all of you when I see you in Las Vegas in January.

BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at bmcguire@aednet.org.

BRIAN P. MCGUIRE AED President & CEO

ROBERT K. HENDERSON AED Executive Vice President & COO

JASON K. BLAKE AED Senior Vice President & CFO

>> OFFICERS

>> AT-LARGE DIRECTORS

>> REGIONAL DIRECTORS

WES STOWERS Chairman Stowers Machinery Corp.

DIANE BENCK Vice Chairman West Side Tractor Sales Co.

JAMES P. COWIN Cowin Equipment Co., Inc.

MICHAEL LALONDE West Reg. Westrax Machinery, Inc. MATTHEW ROLAND Midwest Reg. Roland Machinery Co. TODD HYSTAD Western Canada Reg. Vimar Equipment Ltd. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC BRAD STIMMEL Southeast Reg. ASC Construction Equipment KAREN ZAJICK Northeast Reg. Norris Sales Co. MICHAEL VAZQUEZ Southeast Reg. MECO MIAMI Inc. DAVID PRIMROSE Western Canada Reg. Finning Ltd.

MICHAEL D. BRENNAN Senior Vice President Bramco, LLC CRAIG DRURY Vice President Vermeer Canada Inc

PAUL FARRELL Modern Group Ltd. GAYLE HUMPHRIES JCB of Georgia STEVE MEADOWS

RON BARLET Vice President Bejac Corporation

Berry Companies, Inc.

JOHN C. KIMBALL VP of Finance Kimball Equipment Company

Heavy Machines, Inc.

WHIT PERRYMAN Immediate Past Chairman Vermeer Texas-Louisiana DENNIS VANDER MOLEN Foundation Chairman Vermeer MidSouth Inc.

JAMES A. NELSON KENNETH E. TAYLOR Ohio CAT

November 2017 | Construction Equipment Distribution | www.cedmag.com | 7

>> AED INSIDER AED Welcomes Three New Staff Members to Serve You AED and The AED Foundation are pleased to welcome our new staff members! These new staff members are here to serve you, our members. Reach out to them with your questions, suggestions and concerns.

Martin McCormack

Martin McCormack is The AED Foundation’s new Associate Director of Development and Workforce. Prior to joining the association, Martin served as Issues and Development Staff for the office of Speaker Michael Madigan. Martin received his B.A. in Political Science from the University of Illinois Springfield.

mmccormack@aednet.org 630-468-5113

Sean Fitzgerrel

Sean Fitzgerrel is AED’s new Southeastern Regional Manager.

Sean’s prior role was as a Government Relations Specialist for Margaret Vaughn Consulting. He is currently pursuing his Master’s of Public Administration with a focus on non-profit, public and organizational management from the University of Illinois Springfield, where he also received his B.A. in Political Science.

sfitzgerrel@aednet.org 630-468-5130

Michael Murray

Michael Murray is AED’s new Northeastern Regional Manager. In his prior role, he was the District Scheduler and Outreach Representative for Congressman Raja Krishnamoorthi.

Michael received his Master’s in Political Science with a focus on civic leadership from The University of Illinois UrbanaChampaign, where he also received his BALAS in political science.

mmurray@aednet.org 630-468-5129.

AED Alert: Administration, Congressional Leaders Release Tax Reform Framework

If you have any comments on the framework, please reach out to AED’s Vice President of Government Affairs Daniel B. Fisher at dfisher@aednet.org.

The Trump administration, House and Senate Republican leadership, and the Chairmen of the House Committee on Ways & Means and the Senate Committee on Finance released a longawaited “unified” framework that will serve as the basis for legislative efforts to reform the tax code. The document’s unveiling, which has been negotiated behind the scenes for several months, is expected to kick-off efforts to comprehensively reform the nation’s tax code for the first time in decades.

Highlights of the “Unified Framework for Fixing Our Broken Tax Code” include: ▶ Limiting the maximum tax rate applied to the business income of small and family-owned businesses conducted as sole proprietorships, partnerships and S corporations to 25 percent; ▶ Reducing the corporate tax rate to 20 percent; ▶ Repealing the estate tax and the generation-

8 | www.cedmag.com | Construction Equipment Distribution | November 2017

skipping transfer tax; ▶ Allowing businesses to immediately write off (or “expense”) the cost of new investments in depreciable assets other than structures made after September 27, 2017, for at least five years; and ▶ Partially limiting the net interest expense deduction for C corporations while Congress will determine treatment of interest paid by noncorporate taxpayers.

The document is silent on many important issues for AED members, including 1031 exchanges (“like-kind exchanges”), the last in, first out (“LIFO”) accounting method and new revenues for the Highway Trust Fund (HTF) to invest in road and bridge projects.

Remember, the document is merely a framework and isn’t legislative text. Reforming the tax code will be a long and complicated effort. Stay tuned to AED for future updates.

>> AED INSIDER Congresswoman Cheri Bustos added to AED’s Keynote Speaker Lineup Congresswoman Cheri Bustos is in her third term representing Illinois’ 17th congressional district, which comprises the northwestern part of the state. A rising star in House Democratic leadership, she’s earned a reputation in Washington as a pragmatic, bipartisan lawmaker that’s searching for common ground between the political parties to solve problems.

One of only twelve Democratic House members holding a seat in a congressional district won by President Trump in 2016, Bustos has proved that focusing on job creation and economic growth is a winning combination regardless of political party.

Bustos serves on the House Transportation & Infrastructure Committee and the House Agriculture Committee.

She was also elected by her colleagues to be co-chair of the Democratic Policy and Communications Committee, a Democratic leadership position that gives Bustos a key voice in shaping her party’s agenda and messaging. As the only Midwesterner elected to Democratic House Leadership, she is working to ensure that Democrats connect with rural and working-class Americans and the business community.

She’s also a member of the New Democrat Coalition, an influential group committed to pro-economic growth, pro-innovation and fiscally responsible policies.

Born in Springfield, Ill., Cheri Bustos grew up in a family that taught her the importance of hard work, caring for others and public service.

While working as a young investigative reporter in the Quad-Cities, She met a rookie cop named Gerry Bustos who she fell in love with and married. With her husband Gerry, who now serves as the Sheriff of Rock Island County, she raised three sons and has two grandchildren, all of whom proudly call Illinois home.

After a career in investigative journalism, Bustos worked in health care before, during and after the passage of the Affordable Care Act for one of the nation’s largest nondenominational, non-profit health care systems. There, she helped families access affordable coverage and worked to improve the quality of health care available in the community.

Bustos has long been active in her community and served on numerous

nonprofit boards and as the President of the Women’s Connection, one of Illinois’ largest women’s organizations. In 2007, Cheri’s commitment to public service and desire to further give back to the community led her to run for local office.

Bustos was elected to serve on the City Council in East Moline for two terms and made her top priority economic

development and building a stronger middle-class.

Bustos earned her Bachelor’s Degree in political science from the University of Maryland, College Park, and a Master’s Degree in journalism from the University of Illinois at Springfield. She also attended Illinois College in Jacksonville, where both her parents and son graduated.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 9

>> INDUSTRY NEWS

>> INDUSTRY NEWS

General Equipment Company Launches Program to Replace Equipment, Raise Money for Those Affected by Hurricanes In an effort to provide storm recovery assistance to those living in areas affected by hurricanes Harvey, Irma and Maria, General Equipment Company has launched a program that makes it easier for businesses to replace lost or damaged equipment, while also generating funds to support local recovery efforts.

From now until December 31, 2017, General Equipment is offering all of its equipment, parts and accessories at a 30-percent discount.

Furthermore, five percent of all revenue generated during this time will be donated to Salvation Army centers serving the affected areas.

These discounts and donations will be conducted on all purchases, regardless of a customer’s proximity to the storm damage.

“As with so many in this industry, when we saw the damage caused by these storms, we wondered what we could do to help get people and businesses back on their feet,” said Jan Wienczkowski, marketing manager for General Equipment Company. “As a manufacturer of equipment that is designed to assist in construction, cleanup and renovation applications, we feel the unique contribution we can make to this effort is to get proper tools into the hands of people who need them most and help speed the recovery process. At the same time, needed funds are being generated to assist in returning

individual and family life back to normal as soon as possible with much-needed supplies.”

In addition to the discount and revenue donation, General Equipment is also offering special terms and free freight on qualifying purchases.

“The scale of the recovery is tremendous, while the availability of equipment is alarmingly low given an enormous demand and reduced supply currently,” said Wienczkowski. “By reducing prices, this program will help equipment dealerships and rental centers to replenish their equipment supply, which will in turn help contractors and general consumers find the tools they need.”

In business for more than 60 years, General Equipment Company is a family-owned manufacturer of hole digging, surface preparation, portable ventilation, vacuum, air scrubbing and lighting equipment.

For more information, contact General Equipment Co., 620 Alexander Drive S.W., Owatonna, MN 55060, call 507-451-5510 or 800-533-0524, fax 507-451-5511 or 877-344-4375, or visit the website at www.generalequip.com.

Commercial Credit Inc. Makes North Carolina Mid-Market Fast 40 List for Sixth Year in a Row Charlotte-based equipment and accounts receivable finance company achieves revenue and employee growth marks to make the Mid-Market Fast 40 List – one of only two companies to be named to the list for six consecutive years.

Equipment and accounts receivable finance company, Commercial Credit Inc., parent company of Commercial Credit Group Inc. (CCG) and Transfac Capital, has made the Business North Carolina Mid-Market Fast 40 List for the sixth year in a row.

To qualify for the list, a company must be headquartered in North Carolina, have annual revenue between $10 million and $500 million, and demonstrate sustained revenue and employment growth over the past three years. President and CEO Dan McDonough stated, “It’s an honor to be recognized year after year for our growth.

We’ve worked hard to build a sustainable business model that allows us to serve our customers, provide opportunities for our employees and support the North Carolina economy.”

Commercial Credit Inc. is one of only two companies to make the list each of

the last six years. McDonough credits the employees for the company’s continued success. “Every day our people come to work prepared to make a difference for our customers. They have a great combination of energy, ambition and a customer service mindset that continues to drive revenue and profitability growth.”

The forty companies were recognized

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at a luncheon, hosted by Business North Carolina and Cherry Bekaert LLP, on October 2, 2017, and will be featured in the November issue of Business North Carolina magazine.

Commercial Credit Inc., through its wholly owned subsidiaries Commercial Credit Group Inc. (including its division Manufacturers Capital) and Transfac Capital Inc., provides equipment loans and leases to small and mid-sized businesses in the construction, fleet transportation, machine tool and manufacturing and waste industries and accounts receivable factoring in a variety of industries.

Since its inception in 2004, CCG has originated over $3.0 billion of finance receivables. The company’s sales force is located throughout North America.

Commercial Credit Inc. is headquartered in Charlotte, N.C., and operates full service offices in Buffalo, N.Y., Naperville, Ill., Hamilton, Ontario and Salt Lake City, Utah.

For more information, please visit w w w. c o m m e rc i a l c re d i t g ro u p. c o m , www.mfrscapital.com and www.transfac.com.

>> INDUSTRY NEWS Core Values Pair Empire CAT with Vac-Tron Equipment Vac-Tron Equipment is excited to introduce Empire CAT as their new Arizona dealer. Vac-Tron partnered with Empire because they share the same common core values and beliefs. “This was a perfect fit, and we are honored to have Empire CAT representing our product line,” says Brian Showley, VP, Vac-Tron Equipment.

Michael Rodoni, rental manager for Empire CAT, says, “We wanted to partner with a company that shared similar strategies within the markets we serve.

Vac-Tron is an industry leader in vacuum excavation, and their equipment lends itself to the same clientele that we serve with our excavation lines from Caterpillar.

Empire CAT is always looking for ways to offer our customers safer and more efficient products, and our partnership with Vac-Tron brings a new level of safety to the jobsite.”

Empire Southwest LLC is a thirdgeneration family-owned Caterpillar dealership. Founded in 1950 by Jack Whiteman, Empire sells, rents, and services heavy equipment, tractors, and power generation equipment to contractors throughout Arizona.

Empire is: ▶ Committed to meeting the needs and supporting the success of clients throughout the mining, agriculture, and construction industries.

▶ Proud of our business culture, which was built on the corporate values of Safety, Respect, Integrity, Teamwork, Excellence, Stewardship, and Astonishment. ▶ Dedicated to the success of our clients and the communities we serve. ▶ Committed to building and

maintaining solid business partnerships.

For more information on Empire CAT, please visit www.empire-cat.com.

For more information on Vac-Tron Equipment or to schedule a FREE demo, please visit www.vactron.com or call 1-888-VAC-TRON.

Accruit Expands Brand Identity to Financial Technology Provider digital escrow, crowdfunding and integration with online platforms.”

Accruit continues to expand its escrow offerings to include solutions in underserved industries. They are also currently developing a technology solution for holding software source code and digital IP, with a release anticipated later this year.

An updated company website was unveiled at www.accruit.com to reflect the new brand identity and showcase the company’s competitive advantages as a FinTech brand.

Accruit LLC is a Denver-based financial technology company specializing in escrow and 1031 exchange services. Accruit facilitates all types of commercial and individual transactions by serving as a trusted independent escrow agent and handles all types of like-kind exchanges, including real estate, business assets, collectibles, and franchises.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 11

AED PREFERRED PROVIDER

Accruit LLC, a leading provider of likekind exchange and special member services, has launched a brand redesign reflecting the company’s transition from a qualified intermediary to a diversified financial technology (FinTech) service provider.

In June of last year, Accruit acquired the assets of Bankers Escrow Corporation, one of the largest full-service escrow companies in Colorado, and continued to provide escrow services under the banner of Accruit-owned Bankers Escrow LLC. The consolidation of escrow services into Accruit’s own brand is part of a diversification strategy aimed at evolving the company and providing these services worldwide.

“This branding transition is a natural step for Accruit,” said CEO Brent Abrahm. “We’ve grown our business significantly over the past several years, and our expansion into escrow has opened opportunities for further growth into areas such as

>> INDUSTRY NEWS Atlas Copco Construction Equipment North America Appoints Three Vice Presidents/Business Line Managers Atlas Copco Construction Equipment North America has appointed three vice presidents/business line managers serving the U.S. and Canada: Rob Johnston, Air & Tools; Jim O’Brien, Power Generation, Pumps and Lighting; and Massimo Caiazza, Aftermarket.

Johnston, O’Brien and Caiazza are responsible for leading and growing their North American divisions within the new Atlas Copco Power Technique global business area. They are based in Rock Hill, S.C., where Atlas Copco’s new 197,000-square-foot manufacturing facility opened in early 2017.

“Atlas Copco is evolving to better serve our customers in the U.S. and Canada,” said Scott Carnell, president of Atlas Copco Construction Equipment North America. “Rob, Jim and Massimo have the experience, expertise and commitment to help lead us forward.”

Rob Johnston, Air & Tools

Johnston has worked with Atlas Copco since 2011, most recently as business line manager, Portable Energy Division, for Atlas Copco Construction Equipment Canada. In his new role, he is responsible for the company’s lines of portable compressors; handheld pneumatic, electric and hydraulic construction tools; and compaction and concrete products.

The move returns Johnston to Rock Hill, where he served as factory product manager and managed a large portfolio of Atlas Copco Portable Energy equipment from 2013-2015. He originally joined Atlas Copco as western regional sales manager in Canada after holding roles with Cat Rentals/Finning.

“Atlas Copco is about forward thinking and creating customer value,” Johnston said. “We’ll continue to strive to provide innovative air and tools solutions that maximize efficiency on the most demanding jobsites.”

Jim O’Brien, Power Generation, Pumps and Lighting

O’Brien brings to his new position nearly 20 years of international leadership experience with the Atlas Copco family of companies, including business development, sales management and product development expertise. He is responsible for the company’s lines of power generation solutions, pumps and light towers.

O’Brien has led in a variety of Atlas Copco roles globally, including key customer manager – Portable Energy Division (based in Belgium); regional marketing manager – Portable Air for China, East Asia and Australia (China); and integration and business

development manager (Denver, Colo.). Most recently, he held the position of vice president/business line manager for the U.S. Construction Tools Division, based in Denver.

“There’s tremendous opportunity for power and flow solutions in the markets we serve,” O’Brien said. “I look forward to expanding our dealer network, growing our business and ultimately helping our customers increase productivity.”

Massimo Caiazza, Aftermarket

Previously the Atlas Copco vice president of marketing – Parts & Service for the Construction Tools Division in Germany, Caiazza now heads the North American service division of the global Power Technique business area. He is responsible for the aftermarket business for air and tools, power generation, pumps and lighting.

Caiazza has worked with Atlas Copco since 2005, in the roles of product manager – Construction Tools, portable energy business line manager in Italy, and marketing manager for the Construction Tools service division in Germany.

“We’re dedicated to helping customers achieve maximum equipment availability at minimum total operating cost,” Caiazza said. “I’m excited about the opportunity to take our service business to the next level.”

Announced in July, the newly renamed Atlas Copco Power Technique business area – formerly Construction Technique – serves a range of customer segments including construction, manufacturing, mining, oil and gas, and emergency relief, among others. In addition to the core portfolio of construction products, the Power Technique business area provides products and custom solutions through a network of direct sales, authorized dealers, rental yards, and manufacturer representatives.

IN MEMORIAM: JOAN M. HERMANN Joan M. Hermann, 89, of Galena, Ill., passed away after a lengthy illness Monday, October 2, 2017, at Grand Meadows, Asbury, Iowa. In keeping with her wishes there will be no public services. Burial will be in Greenwood Cemetery, Galena. The Furlong Funeral Chapel of Galena is assisting the family. Joan was born December 11, 1927, in Chicago, the daughter of Benton and Lillian (Winkler) Mullin. Joan was united in marriage to Paul D. “Bud” Hermann on November 10, 1948, in Chicago, and he preceded her in death on December 31, 2005. She was born and raised in Chicago and following retirement moved to Galena, where she made her home for the past 25 years. Joan enjoyed sewing, golfing and spending time with her friends. She is survived by her two children, a son Bruce (Sandy) Hermann of Madison, Wis., a daughter, Susan Hermann of Galena, and one grandson, Timothy (Melissa) Hermann of Phoenix, Ariz. She was preceded in death by her parents and her husband.

12 | www.cedmag.com | Construction Equipment Distribution | November 2017

>> INDUSTRY NEWS

Nickell Rental Chooses SmartEquip Application SmartEquip’s Enterprise application will now be utilized by Nickell Rental, one of the largest independent equipment rental companies in the Southeast. Now Nickell Rental will be able to automate their service process, increase technician productivity, eliminate parts order errors and improve uptime and availability of their rental fleet.

The seamless integration of SmartEquip and Orion Software’s Sirius Rental Management System will allow the familyowned company to automate the workflow for parts and service and to leverage integrations with over 280 manufacturers and suppliers of equipment that participate in the SmartEquip Network.

Josh Nickell, vice president, says, “While local, independent rental companies often have an advantage over the national

companies in terms of understanding the local market and relationships with local and other businesses, they are often at a disadvantage in terms of being able to access new technology.

“For some time, we have watched as the national rental companies have used SmartEquip to become more competitive by automating the repair and maintenance workflow, and we’ve looked forward to being able to use that same technology in our own business.

“We clearly recognize that optimizing the utilization of not only our fleet, but also our staff, is critical for growth and continued success. SmartEquip technology will enable Nickell Rental to replace our paper-based work order and purchase order systems with a paperless, automated system that

eliminates over half of the steps in our current repair and maintenance process, not only reducing costs, but also improving the productivity of both technicians and parts administrators.

“In addition, we believe that using SmartEquip technology to compress repair times will result in improved fleet availability for our customers and revenues for Nickell Rental,” Nickell said.

Fernando Pinera, SmartEquip president, adds, “Our goal is to drive increased profitability for fleet owners, manufacturers and their dealers by integrating their procurement systems and their operational processes. We’re excited that Nickell Rental, as one of the nation’s leading independent rental companies, will now use SmartEquip technology to support their operations.”

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.

Visit us at AED Summit 2018 The Mirage, Las Vegas Suite #B40 (27th Floor)

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

November 2017 | Construction Equipment Distribution | www.cedmag.com | 13

>> PRODUCT PREVIEW Hyundai Construction Equipment Americas Introduces HX130LCR Compact-Radius Excavator Hyundai Construction Equipment Americas introduces the Hyundai HX130LCR, the third compact-radius excavator model in the company’s HX series product line. The 13.5-ton machine also is available in a second standard configuration, the HX130LCRD, which includes a dozer blade.

Hyundai announced the new excavator – its 15th HX series excavator model – at the International Construction and Utility Equipment Exposition (ICUEE) in Louisville, Ky. The HX130LCR excavator is powered by a 73.6-hp (55-kW) Perkins 854F Tier 4 Final diesel engine. The LCR model has a standard operating weight of 29,750 lbs. (13,495 kg), while the LCRD model’s standard operating weight is 31,290 lbs.

(14,195 kg). It achieves a maximum dig depth of 18 ft. 4 in. (5,570 mm) and maximum digging reach of 27 ft. (8,220 mm) and provides bucket digging force of 22,860 lbf (10,369 kgf). The HL130LCR excavator is equipped with a standard 0.52yd3 (0.40-m3) capacity, 30-inch-wide (760mm) bucket.

“The new Hyundai HX130LCR fills an important spot in our excavator lineup,” said Corey Rogers, marketing manager, Hyundai Construction Equipment Americas. “The market demand is growing for this weight class, especially for compact-swing machines that give contractors the added versatility of working in confined spaces.”

“The HX130LCR is the latest model to give our customers what we call the Hyundai Edge – a powerful combination of performance, convenience, serviceability and safety features,” Rogers noted. “Like all of our machines, the new HX130LCR excavator comes packed with high-end features.”

For example, it includes as standard equipment an 8-inch (20.3-cm) interactive, adjustable, touchscreen cluster-monitor in the cab.

Viewable on the monitor is the Hyundaiexclusive AAVM (All-Around View Monitoring) – an optional system that provides a 360⁰-surround virtual operating view. Included in AAVM is the IMOD (Intelligent Moving Object Detection)

The new Hyundai HX130LCR excavator is a 13.5-ton machine featuring a compact-radius design, ideal for working in confined spaces. It is available (as shown) equipped with a dozer blade.

system that senses and warns the operator when objects come within 16.5 feet (5 m) of the machine. The AAVM system helps make the Hyundai HX series among the safest excavators to operate on any jobsite in North America.

Tier 4 Final engine technologies, a more efficient vertically stacked cooling design, an efficient electronic fan clutch, and hydraulic system innovations on the Hyundai HX series excavators contribute to an overall fuel efficiency improvement of up to 10 percent compared with previous models.

An advanced hydraulic system includes an innovative Boom Float mode for better grading control, Fine Swing mode for improved load control when swinging, and up to 13 percent faster cycle speeds than previous models. The HX130LCR also features IPC (Intelligent Power Control) computer-aided power optimization based on load demand, and Eco Breaker mode for selectable pump flow and improved fuel consumption when working with Hyundai hydraulic breakers and many other attachments. The combination of faster cycle times and more power results

14 | www.cedmag.com | Construction Equipment Distribution | November 2017

in productivity increases of up to 5 percent.

Serviceability enhancements include ground-level access to the fuel filter and convenient exterior access to the cab air filter.

Like the other HX series excavators, both Hyundai 130LCR configurations are protected by Hyundai’s industry-leading three-year, 3,000-hour standard warranty and five-year, 5,000-hour structural warranty. Hyundai also includes five years of free access to its Hi-Mate remote management system which provides a variety of remote monitoring and diagnostic services.

Hyundai Construction Equipment Americas Inc. offers a full line of crawler excavators, ranging from compact models to mass excavators, as well as wheeled excavators, wheel loaders, compaction equipment, hydraulic breakers and forklifts.

For more information about Hyundai Construction Equipment Americas, Hyundai products or dealership opportunities, visit www.hceamericas.com or call 877-509-2254.

>> PRODUCT PREVIEW

Komatsu America Corp. Introduces New D375A-8 Crawler Dozer Komatsu America Corp., a leading global heavy equipment manufacturer, has introduced the D375A-8 crawler dozer. The D375A-8 features an EPA Tier 4 Final certified engine that produces over 20 percent more horsepower while the dozer is traveling in reverse. The additional horsepower yields faster cycle times and a productivity increase of up to 18 percent.

This mining-class dozer comes with structural enhancements for increased durability of the mainframe and track frame. The D375A-8 also features an improved suspended undercarriage, larger viscous cab mounts, and a new air-suspension heated and ventilated seat for overall operator comfort.

“Whether it’s reclamation, large construction or production mining applications, the D375A-8 is the right machine for the job,” said Joe Sollitt, product manager, Komatsu America. “The durability improvements to this new model drive down the total cost of ownership, while the more powerful Tier 4 Final engine significantly increases performance and production. The improvements to the undercarriage, cab suspension, and operator interface will make D375A-8 operators more comfortable and productive throughout their shifts.”

Under the hood

A powerful Tier 4 Final SAA6D170E-7 engine with a net horsepower of 609 HP in the forward direction and 748 HP in the

reverse direction.

No selective catalytic reduction (SCR) system or diesel exhaust fluid (DEF) required.

Variable geometry turbocharger (VGT) improves low speed response and boost.

High-pressure, common-rail fuel injection system.

Dual Komatsu diesel particulate filters (KDPFs).

Large-capacity and high-efficiency exhaust gas recirculation coolers.

Machine performance enhancements

Changes to suspended undercarriage, cab isolators, operator seat, and ergonomics of operator interface significantly improve operator comfort and yield more productive shifts.

Structural enhancements of track frame and mainframe increase major component life.

New single link blade support and larger trunnion bearings reduce maintenance, increase blade stiffness, and minimize blade shake.

Standard features such as blade auto-pitch, ripper auto-return, and shoe slip control reduce operator fatigue and increase productivity.

Improved visibility to cutting edge and ripper point.

Visit the website at www.komatsuamerica.com.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 15

South Central: AED at the Forefront of Education, Workforce Issues in Great Plains, Deep South P

lans are taking shape in Kansas to further develop and accredit the Heavy Diesel Construction Technology and Diesel Technology programs at Washburn Institute of Technology in Topeka. Taking the lead for accreditation is veteran instructor Christopher Scharrer. Scharrer, who joined

REGIONAL REPORT

Thomas Lunney the team in June after a successful four-year stint at Oklahoma State University Institute of Technology in Okmulgee, Okla. (an AED Foundation-accredited school) is bullish on the prospect of creating a first-class program at Washburn. “The need is here, as we currently have more than 70 students enrolled,” Scharrer stated. “It is incumbent upon us to improve our program to meet industry metrics as measured by The AED Foundation, which is the gold standard in the industry.”

AED Vice President of Foundation Operations Steve Johnson believes Washburn Tech can meet the aggressive three-year timeline to achieve accreditation. “Washburn leadership is committed to taking the necessary steps to accomplish this mission and add to the ranks of The AED Foundation’s 32 accredited colleges across the United States and Canada,” he stated. “With Chris Scharrer’s track record as a top-notch instructor, the accreditation process is in good hands.”Washburn Institute of Technology, a CASE partner school, is a nationally recognized innovator in career and technical education. Its affiliation with Washburn University gives students the opportunity to start with technical courses and continue to advanced degrees while

preparing for today’s careers. Dedicated faculty and staff serve adult and high school students as well as business and industry participants with career-specific training in several career paths including construction equipment technology. Clinton Marks, a former student in that program, had this to say: “The school’s Heavy Diesel Construction Technology program gave me the knowledge to enter the heavy construction industry and acquire an internship, which led to my employment with The Victor L. Phillips Company. I am proud of Washburn Tech’s partnership with CASE Construction, as well as my employer.”

Meanwhile, in Alabama, Tractor & Equipment Co. recently hosted Congressman Bradley Byrne at its Mobile location.

Byrne, a former chancellor of the Alabama Community College System, is deeply involved in career and technical education issues. He serves on the House Education and the Workforce Committee. Byrne is also a member of the House Rules Committee and the House Armed Services Committee.

In the U.S. House of Representatives, Byrne has advocated for a smaller, less invasive federal government, to be accomplished by reducing regulatory burdens and eliminating red tape. A great champion for infrastructure investment, he’s also worked tirelessly to support local road and bridge projects, including the construction of a new I-10 bridge over the Mobile River. The I-10 Mobile River Bridge and Bayway project would increase the capacity of I-10 by constructing a new six-lane bridge with 215 feet of air draft clearance (ADC) across the Mobile River and building a new eight-lane Bayway.

“Congressman Byrne has been very influential by pursuing policies to expand construction equipment markets,” stated Tractor & Equipment Co.’s Branch Manager Chris Howard.

“He also has a deep understanding of the challenges that face equipment distributors, particularly the lack of skilled workers and the need to recruit the next generation of diesel technicians.”

The visit to Tractor & Equipment Co. wasn’t Byrne’s first tour of an AED member facility. He’s visited Cowin Equipment, Thompson Tractor and Beard Equipment in the past and has shown a willingness to engage with AED members and learn more about the issues important to the industry.

THOMAS LUNNEY is AED's South Central Regional Manager. Reach him at tlunney@aednet.org and 630-468-5125.

16 | www.cedmag.com | Construction Equipment Distribution | November 2017

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Visit Terramac.com to learn more about joining the Terramac dealer network.

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Enhance Your AED

Membership Experience

Discover the benefits and tools of being an Association member

By Katie Kremer ssociated Equipment Distributors (AED) is continuously working to expand the advantages and heighten the value we provide to our members. Our services, resources and programs exist for their benefit.

As the leading association for equipment distributors, AED also takes the lead in seeking and responding to feedback from its members as we constantly strive to create the best dealership experience possible. The assets we provide have been shown to enhance business-tobusiness interaction, professional growth and awareness within the industry.

One of the foundational functions of AED is making

A

18 | www.cedmag.com | Construction Equipment Distribution | November 2017

an array of resources available for businessbuilding, and chief among these is CED Magazine.

CED Magazine

The association’s publication provides invaluable market information, including the latest research, analysis and industry trends. Our workforce reports allow businesses to navigate the industry more effectively by exploring emerging skills that can make their companies more attractive to future employees and customers.

Associated Equipment Distributors takes pride in its growth and development that comes about in response to our members’ feedback. We are always interested in suggestions for improvement, including in the content we include in CED Magazine.

We have developed surveys on such topics as the demographics of our respondents, the quality and credibility of our content, and the major interests of our members. We use this information to stay up to date with an ever-evolving industry and to satisfy the interests of our readers.

Exclusive industry reports

In addition to CED Magazine, AED publishes accurate and reliable benchmarking reports on various topics, which are highly useful in comparing business processes and performance metrics to industry best practices and also to best practices from other dealerships.

We also publish a contract report, a simple guide to help manufacturers and dealers negotiate distribution contracts that balance the needs and interests of both parties. The report provides general information about the purpose and effect of some of the most common and important clauses unique to equipment distribution agreements, and it addresses clauses that are often at the center of dealer-manufacturer disputes.

Training and development

The training and career development of technicians is one of AED’s continuous goals. Providing students with the connections and tools to get started early in the academic arena can mean a brighter future for both students and dealerships.

To address the skills-gap concern, AED has initiated its accreditation program. Through it, we partner with technical schools and community colleges, helping them provide the standards and foundational knowledge essential for equipping their students to become effective and reliable technicians.

Along with accreditation programs,

AED offers technical assessments that give dealerships a tool to ensure that potential or existing employees have core technical knowledge in critical subject areas and to help in making the hiring process uncomplicated and straightforward. The assessments are aligned with The AED Foundation’s National Construction Equipment Technical Standards, which are developed collaboratively by dealers, manufacturers, and technical schools and are continually updated to remain in alignment with current national standards.

AED hosts webinars and seminars designed to broaden and improve member skill sets in such areas as customer service, dealer operations, and risk management.

Our Dealer Learning Center also offers interactive self-study programs that are convenient for those with busy schedules and limited time.

Public policy and advocacy

Since the 1960s, Associated Equipment Distributors has maintained an office in Washington, D.C., for the purpose of making the industry’s viewpoint heard with respect to government priorities and actions that impact our members’ dealerships. Our legislative priorities specifically focus on contributing constructive suggestions, direction and oversight that further the interests of our members. We are the voice of the equipment industry and, as such, we value hearing our members’ concerns on the issues.

Bringing people together in collaboration is the purpose of AED. The Regional Manager

(RM) program began about two years ago and exemplifying that purpose, encompasses various management departments and includes branch, rental, and regional managers. We rely on RMs as the mediators between dealerships and the halls of Congress.

Through congressional visits, RMs facilitate dialogue between our members and their local representatives and allow dealer representatives the time to explain and discuss their concerns on important issues. These meetings also serve as primary opportunities for education and enlightenment about the industry and its needs.

AED will continue to provide the greatest benefits for the profitability of our members’ businesses and for the development of the industry as a whole. Our mission to offer educational opportunities, to act as advocates in the political process and to support our membership with the resources they need for success reflects our values and our hopes for the continual growth of each of their dealerships. AED values the interactive relationship we have cultivated with our members, and we take seriously our ongoing commitment to provide them with the latest and most productive industry information.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 19

▶ THE AED FOUNDATION DONOR PROFILE

Coastline Equipment Works With Educators to

SCHOOL FUTURE HIRES Coastline Equipment tackles the technician shortage with a hands-on approach

By Heidi Bitsoli Coastline Equipment first opened its doors in 1984, as a dealer of John Deere construction equipment. Buck Baird has been with the company practically since the beginning. He started in sales in the late 1980s and moved up the company ladder before assuming the title of vice president and general manager in 2015.

Coinciding with Baird’s ascension to his current title, the Long Beach, Calif., company experienced significant growth, acquiring Idaho-based CESCO Equipment and Nevada-based Blaine Equipment.

“The first week I was GM (general manager), the John Deere dealerships in Boise, Idaho, and Las Vegas asked us if we’d like to buy those.”

The offer was too good to refuse.

“John Deere used to be several hundred dealer groups and now there are 34, so those opportunities don’t come along too often,” Baird explains.

The result: “We basically doubled our size in two years,” going from six sites in California to a total of 12 after adding three in Nevada and three in Idaho.

Coastline’s territory as a result now extends from Long Beach north to Boise, so the company now offers leasing, sales and rental options for John Deere construction and forestry equipment, as well as parts and service options, for a much larger territory.

“The sale was a great match,” Baird says.

It lets them spread their overhead out.

Coastline has also been a longtime member of AED; its membership predates Baird’s assumption of his current leadership role.

Supporting The AED Foundation is something most industry companies do just because it makes sense, and Baird agrees. The education is one draw, he’s found. “It’s across the board,” and broader than Coastline’s John Deere focus.

Baird says he sees a lot more involvement in the future, now that they’ve gotten through their recent acquisition.

Your donation fuels the work that allows The AED Foundation to develop a dealer model for success.

The future of dealerships depend on how we come together to build our industry's workforce. Thank you, Coastline Equipment, for investing in the future of our industry!

To contribute to The AED Foundation annual campaign, visit bit.ly/2017aedfcampaign.

Education will be a huge focus, he predicts.

“We haven’t dabbled much in government affairs yet, but a big hot button for us is mechanics and technicians. They’re very difficult to find.

We compete with other companies, and everybody is looking for technicians.”

Coastline is involved with its own training package, too. They work with Linn-Benton Community College in Albany, Oregon, to offer a Construction and Forestry Technology Program; participants graduate with an Associate of Applied Science degree. Graduates are then ready to work as John Deere construction and forestry technicians.

They’ve graduated 15 to 18 students in the last 10 or 12 years, Baird says. They aim to enroll three to five each year.

20 | www.cedmag.com | Construction Equipment Distribution | November 2017

Scholarship options are available, too, so some enrollees may receive the training at no cost and can complete a paid internship.

“Some of our best field mechanics have come out of this program,” he says.

“Kids score 95 percent-plus on tests. It’s a phenomenal program.”

It’s a solid option for some who would rather not seek a bachelor’s degree. “Not every kid is set up to go to a four-year university,” he says.

As a result Baird says he’d love to see more vocational-technical training options. “So many technical jobs are out there. It’s very hard to find employees. There are six-figure jobs and we are struggling to fill positions.

“Our industry has gotten very technically advanced,” he adds. “It’s not the old grunt work.”

Graduates of the Linn-Benton twoyear program or something comparable usually have a pretty solid future mapped out. “There’s a John Deere dealer in just about every major city in the U.S., and that doesn’t count agriculture dealers or smaller cities.” The right training can lead to a job just about anywhere at just about any time.

Graduates can land $50,000-a-year jobs.

Says Baird, “If they wanted to move they’d easily lock down a job” with that kind of training.

“It’s a ticket for life.”

Visit www.coastlineequipment.com.

Whe n Con you v d i see ex, co sit us a me boo t our th

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AED’s Senior Regional Manager Phil Riggs turns some

SUMMIT SMALL TALK INTO

A BIG SUCCESS IN

SALT LAKE I

t was right after former Vice President Dick Cheney’s interview at the 2017 AED Summit in Chicago; I was at the MTU dessert reception when Bob Minichbauer of Arnold Machinery came up to me. After his compliments to the AED staff for the excellent Summit experience, he was interested in hearing my thoughts on a topic that has certainly been a concern of the industry and at the forefront of our focus for several years now: the workforce shortage crisis.

By Phil Riggs Throughout the Summit you were hard-pressed to find an area of the property where The AED Foundation wasn’t being talked about in terms of what it is doing to address the issue. Bob wanted to know what we could do in the Salt Lake area to make an impact and raise money for The AED Foundation to advance this work.

He wasn’t the first person to raise this question.

Folks like Jeff Scott with Intermountain Bobcat in Salt Lake, and guys like John Shearer at

22 | www.cedmag.com | Construction Equipment Distribution | November 2017

I came to the realization that BBQ tends to bring people together.

4 Rivers and Giles Poulson at Faris Machinery in Colorado, had also discussed this with me in the past. The good news? Utah has an AED Local Group of nearly every dealer in the state that meets quarterly. The not-so-good news? I had my work cut out for me. I mean, how do we get competitors to put aside their differences for a day and help grow the talent pool? I told Bob I’d be at the next AED of Utah meeting to present my proposal and we’d take it from there.

Later, I would come to the realization that BBQ tends to bring people together.

A month later, in February, I attended the first quarter meeting ready to go.

One of the problems our industry has is that too few people outside of it know about the career opportunities in it.

Students don’t know about it because teachers don’t know about it. Teachers don’t know because the guidance counselors aren’t aware, and the classes that used to teach mechanics are by-andlarge gone. Salt Lake City already has an AED Foundation-accredited program at Salt Lake Community College – so the institution to educate students post high school is there, but the challenge of awareness and recruitment remains.

The plan was to hold a career day specific to the Construction Equipment industry, featuring a hog roast. Dealers would be able to bring equipment, have their own tents and put their best foot forward in front of students who might be future employees. I had strategically identified specific school districts with auto, diesel, welding and shop classes from which to invite the students, teachers, and counselors to attend, and I made it clear to the dealers that they should encourage their employees and customers to attend with their families.

The only thing the dealers would have to do was make a $2,500 donation to The AED Foundation and put their best foot forward – their AED regional manager would handle the rest. I made it very clear to the nine dealers sitting around the table that day what success looked like. If we could raise at least $12,000 and have 200 people attend (50 of which would be students, teachers and parents) this would be something we could grow year after year and replicate across the country.

All the dealers thought it was an outstanding idea and was something they could “own,” as opposed to just

November 2017 | Construction Equipment Distribution | www.cedmag.com | 23

Rather than our hope of 50 students from across the area, more than 200 students and teachers were bused in from four districts – most of them with resumés in hand.

participating in one of your run-of-the-mill career fairs. Unlike those, the AED of Utah Construction Equipment Career Day & Hog Roast would be attended only by students who had an interest in a career path like that of an equipment technician, and they would be able to see every local employer in that industry. On the other hand, many of the dealers thought I had my work cut out for me as I made it clear from the beginning that I wanted them to focus on their business and let me handle the logistics.

To say there wasn’t a lot to do to prepare for this event would be false.

Obtaining quotes for party tents and catering, identifying a venue, sending out media alerts and generating press, inviting mayors, the governor, members of Congress, meeting with various school districts, developing marketing materials – anything needed to make this a successful event was taken into consideration. Several months later, with school having started up in September, we were ready to go. But the question remained: Would it be a success or a flop?

Let me start by saying the late September weather in Salt Lake isn’t much different than it is in Chicago at that time of year.

You don’t know if it’s going to be warm or chilly. However, you should have a pretty good idea on the chance of rain – which in our case was high for that day. With the event being held outdoors under a 40’ x 60’ canopy tent, it was a risk we had to take.

“Never wait on the weather” is what I always say. And even though it had been calling for rain all week, we stayed dry throughout!

Next up: attendance. Would we hit our

head count goal? Well, we certainly took a hit on catering costs, but in a great way.

Rather than our hope of 50 students from across the area, more than 200 students and teachers were bused in from four different districts – most of them with resumés in hand. We went through two whole pigs and fed 300 people. The team from Meier’s Catering was definitely keeping busy.

The dealers were at the top of their game, too. Nine participated in the event: Arnold Machinery, Intermountain Bobcat, Century Equipment, Ditch Witch of the Rockies, Honnen Equipment, Kimball Equipment, Komatsu Equipment, Rasmussen Equipment, and Wheeler Machinery. Everyone had at least one piece of equipment out there, and most brought service trucks as well. Technicians from the shops and various employees from the dealerships joined us. Most had swag, and some took down information for scholarships. Century Equipment even did a drawing for an incredible-looking grill that resembled a tool box – in CASE colors, of course.

I arranged the event so that students would fill out a card with their contact info on one side and a place for each dealership to sign off on the other side, as they made their way around to each booth for a chance to win a prize. At the end, they turned in the card to the Salt Lake Community College booth, where they learned about the Heavy Equipment Technology program there. At the end of the day, 125 of the more than 200 students turned in those cards, meaning the dealers now have access to the contact information of potential hires. It was a win-

24 | www.cedmag.com | Construction Equipment Distribution | November 2017

win situation for everyone.

As a side benefit, Congressman Chris Stewart, a supporter of AED’s legislative priorities, was also in attendance. He spent time meeting with the equipment dealers and even addressed the first group of students about how rewarding careers like this can be. He encouraged them to consider opportunities that don’t require a four-year degree and the debt typically associated with it.

At the end of the day, everyone went home extremely happy – and not just because it was a Friday and the Utah Utes would beat the Arizona Wildcats that night. It was because everyone had an opportunity to make a huge impact in a way that hadn’t really been done before, and they did it without competition really being a factor. Now, are all those students going to go off and become equipment technicians? No, not all of them. However, I can bet most of them went back to school on Monday and told their friends all about the awesome equipment they were able to hop in and check out, and that’s what it takes to spread awareness about this. Oh, and their teachers and counselors? Let’s just say some of them are considering different career paths now that they know the salary ranges for technicians.

The crazy thing is, all of this started with small talk at the AED Summit in Chicago – just an extra part of the program that we typically don’t include in the brochure but that everyone knows is there. Don’t underestimate the value of that, because sometimes it can lead to some pretty incredible opportunities.

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THE RIGHT STUFF

The AED Foundation Launches Technician Certification Program and Certifies First Six Technicians

By Megan Mattingly-Arthur he AED Foundation officially launched its Technician Certification Program in an announcement given by AED Senior Vice President and CFO Jason Blake at the AED/EDA 2017 Workforce Development Summit in New Orleans in September.

The certification program, which is the first of its kind for the construction equipment industry, recognizes heavy equipment technicians for their expertise and gives dealers an objective way to measure their technicians’ skills and knowledge – which can help attract customers and increase their confidence in a dealership’s service operations, according to The AED Foundation Vice President of Foundation Operations Steve Johnson.

“Other industries have had certification possibilities for technicians for a long time, but there simply hasn’t been a certification available to recognize technicians who work on construction heavy equipment,” he said.

“The Foundation felt there was a need for something that shows people that these technicians have the skills and knowledge to do the job, that they’ve kept up with current technology, and that they’ve taken an assessment offered by an objective thirdparty organization to gain a professional credential. For dealers, the certification program provides an objective measure of technicians’ qualifications – that’s something that’s marketable to customers and it can

T

McCann Industries President and CEO Jim McCann speaks to a group of employees about the importance of The AED Foundation's Certified Technician Program.

help raise the technical bar at dealerships.”

Chicagoland-area dealership McCann Industries, Inc. was the first to put its technicians through the certification program – all of whom passed with flying colors – and company President and CEO Jim McCann was quick to tout the program’s potential benefits for both dealerships and the industry as a whole.

“McCann Industries supports the mission of The AED Foundation to advance professional education and workforce development in the equipment industry,” he said. “We recognize the increasing challenges

26 | www.cedmag.com | Construction Equipment Distribution | November 2017

of drawing diesel technicians to our industry.

Any way we can advance the careers of these technicians, we support. At McCann, we pride ourselves in having great technicians – these individuals bring a set of skills to our organization that’s indispensable. The AED Foundation certificate gives us something concrete to hang our hats on and point to that clearly backs up McCann’s belief that our technicians are solid in their knowledge base.”

Six of McCann Industries’ technicians completed the program, which includes a 160-question technical assessment focused

Congratulations on Certification!

From left: Glen Hayward, VP of Operations, David Cichowicz, Technician Recipient, Mike Hart, Branch Manager — McHenry Location

From left: Nick Hamstro, Technician Recipient, Jim McCann, President and CEO, McCann Industries

From left: Craig Cisek, Technician Recipient, Jim McCann, President and CEO, McCann Industries

From left: Steve Shanesy, Technician Recipient, Jim McCann, President and CEO, McCann Industries

From left: Steve Shanesy, Technician Recipient, Jim McCann, President and From left: Pat Peterson, Technician Recipient, Jim McCann, President and CEO, McCann Industries CEO, McCann Industries

November 2017 | Construction Equipment Distribution | www.cedmag.com | 27

on core construction equipment technical standards diesel engines, electrical and electronics, hydraulics and hydrostatics, power trains, air conditioning and heating, and safety and administration. All came away with different thoughts on the experience.

“The credential gives me the proof that I have the skills and knowledge it takes to serve the company and customers – and any and all certifications can only help you grow as a technician and build a wellrounded resume,” McCann Technician Nick Hamstra said. “Being at the forefront of the industry and paving the way for growth and innovation was one of my favorite things about being one of the first to go through the program.”

Technician Mike Hillier agreed: “It was really cool being a ‘test pilot.’” He added, “Technician experience will help you successfully navigate the certification assessment.”

Technician Craig Cisek praised the longterm benefits the certification will provide him and other technicians who complete the program. “Lifelong experience benefits you as a technician, but it is nice to be recognized as a technician with the required knowledge.

Certification benefits you through the rest of your life. If you have an aptitude, the construction equipment industry is a great career choice.”

Several of the technicians stressed the difficult nature of The AED Foundation Technical Assessment. According to these newly certified technicians, it requires a great deal of practical knowledge and experience, so those planning to complete the program should study, and study hard.

How to Get Your Technicians Certified

Technicians can complete The AED Foundation Technician Certification Program in one of two ways.

Those who have already taken The AED Foundation Technical Assessment can buy the certification and upload the test results sheet, and those who have not yet taken the test can do so by purchasing the certification package. The assessment has a hurdle rate of 70 percent (meaning that you must receive a score of 70 percent or greater to pass) and technicians have two chances to pass.

Those who pass will receive a certificate in a wooden frame, as well as a wallet card, hat, lapel pin, two shirt patches and two tool box decals.

The certification program is available for $150 per technician for AED members or $300 per technician for non-members. Those who have already passed The AED Foundation Technical Assessment can purchase an application for certification for $85 per technician.

“This certification is not easy,” said Technician Dave Cichowicz. “For example, I have no A/C ability and there were several questions I needed to study for. It’s not easy and takes industry knowledge, but it will benefit technicians – and any OEM training you can get will help.”

Technician Steve Shanesy concurred: “Practical experience is necessary. It is a challenge, but years of experience will help.”

For those who have the experience, gaining the credential is a welcome recognition of all their hard work and service, according to Technician Pat Peterson.

“It takes experience, and entry level people will have difficulty. My advice: Rely on your experience and knowledge, and keep trying, because there is a lot of information.”

McCann hopes that, by highlighting the many positive aspects of heavy equipment technician careers, The AED Foundation Technician Certification Program will

28 | www.cedmag.com | Construction Equipment Distribution | November 2017

benefit the industry as a whole, and he encourages other dealers to take the steps necessary to certify their technicians through the new program.

“We clearly support The AED Foundation Technician Certification Program and encourage dealerships to reach out to The AED Foundation staff to start the process of technician certification within their organizations,” he said. “The more focus we can put on highlighting the positive aspects of diesel technician careers, the better it will serve our industry as a whole.”

For more information on The AED Foundation’s Certified Technician Program, visit http://aedfoundation.org/certifiedtechnician-program. The AED Foundation is also on Facebook and Twitter.

To learn more about McCann Industries, visit https://mccannonline.com. McCann Industries is also on Facebook and Twitter.

LBX_082017.indd 2

7/18/2017 3:37:40 PM

Protect Family Businesses from the

O

ne of the most common tax problems faced by AED members is the transition of a family-owned business from one generation to the next. It becomes particularly difficult for businesses that are large enough to exceed the estate and gift tax exclusions, especially because construction equipment distributors and manufacturers are so capital-intensive.

As Congress debates comprehensive tax reform, there is a real chance that the estate and gift tax will be eliminated.

Midmarket family-owned businesses often have decades of history providing stable and prosperous jobs to their communities.

It would seem society would have a vested interest in protecting the continuity of these businesses over family generations.

Unfortunately, the estate tax can disturb the continuation of a family business, whereas its impact on a publicly traded company can be quite different. In a family business, the management often owns all the stock, whereas in a public company the stock can be owned by other entities that hire the management. When a key person dies or leaves a publicly traded company, it is easy for those individuals to sell the shares on the open market. The company gets a new owner, cash is provided to the seller that can fund any estate or capital gains tax, and the original capital can remain in the business.

However, the estate tax makes it difficult for family-held businesses because of the difficulty of finding an outside buyer for a minor portion of the shares. Regardless of whether the business transfer occurs by death or by an outright sale, it creates a taxable event that can send years of profits to the Internal Revenue Service (IRS). Yet the capital is needed to pay for facilities, equipment, inventory, trade receivables and the other things that support jobs and growth. At a minimum, the tax reduces a firm’s ability to reinvest or grow.

Even worse, the estate tax is set up as a windfall where it isn’t likely to be known when the taxable event will occur or how much tax

By Bruce McFee

might be involved. For example, it would make a considerable difference if the time frame were known to be 18 months versus 30 years. Regarding a valuation, the IRS might adjust multiples depending on the point of time in the business cycle or assign an intangible value to things like a trade name or new innovative products. Without knowing when or how much an estate tax might be, planning can be extremely difficult for the family-owned business.

Another problem is that the capital needs of the business might change. For instance, the construction equipment industry needed to upgrade to Tier IV. It caused the inventory and trade receivables to be significantly higher, requiring a proportionate amount of additional owner equity to maintain the same business.

In more severe cases, the estate tax has forced the outright sale of family-owned businesses, often to a financial buyer that might have different goals for the business. The subsequent disruption often impacts long-time employees and in some cases, results in the business and jobs being moved out of the country.

In the event the estate tax repeal is taken out of the tax bill, there should be a special carve-out for family businesses. Germany already has this kind of provision for family-owned businesses. While the cost of this carve-out would be much less than repeal of the entire estate tax, the benefits of continuing family-owned businesses is significant. You can help by contacting your congressional office to let them know your company’s importance to the community and why the federal estate and gift tax need to be repealed once and for all.

BRUCE MCFEE is Chairman of Sullivan-Palatek, Inc., President of Saylor-Beall Manufacturing Company and Chairman of the Association of Equipment Manufacturers’ Tax Policy Working Group.

30 | www.cedmag.com | Construction Equipment Distribution | November 2017

~

• 16% INCREASE IN ECONOMY • 7% INCREASE IN WORK VOLUME • THREE EFFICIENCY MODES

MORE POWER. LESS FUEL. With KOBELCO excavators, you get best-in-class fuel economy every time you fire up the engine – no matter how tough the job. With our latest Generation 10 machines, we’re taking that efficiency to a whole new level. These new machines now boast up to a 7% increase in work volume per hour while also providing up to a 10% increase in fuel efficiency in S-mode and an additional 6% in ECO- mode. Put one to work on your next job and add some serious power to your bottom line.

Amazing fuel efficiency, improved productivity Digging volume/hour (Compared to H-mode on previous models)

Approximately

7% increase

NOx reduction rate

The engine exhaust system has a SCR system that converts emissions into harmless nitrogen and water, combining this with a post-exhaust gas treatment system

(Compared to previous models)

NOx

88 %

Approximately

SCR catalyst

decrease

*88% cleaner than interim Tier IV

Newly developed attachments are reinforced for optimum durability 1

2 Enlarged reinforcement of the arm foot HD: Increased thickness of arm-foot base plate.

New

Current

2

Return

3 1 Redesigned boom foot for improved durability Current

MINI

SHORT RADIUS

New

Large-size

3 Modified foot boss shape

New design boon foot, evenly distributes digging forces for improved durability.

The new boss design further improved strength.

New

Current

Engine

CONVENTIONAL

Main filter

Pre-filter

Fuel tank

KOBELCO-USA.COM

1 The boom weight puts force on the boom cylinder 2 Hydraulic fluid pushed from the boom cylinder goes to the arm cylinder 2

3 Arm cylinder retracts 4 Arm extends

10 %

Approximately

1

3

Boom weight

4

increase

VISIT US AT AED SUMMIT, 30TH FLOOR, PENTHOUSE SUITE E32.

Ad_template.indd 2 16-KOBELCO-2108_EfficiencyBLNO_CED_V2_825x10875_R1RUN.indd 1

10/17/2017 1:35:37 PM 10/6/17 12:38 PM

>> NEW AED MEMBER

Meet Newman Tractor:

A Construction Equipment Dealership With Roots in the Farming Industry

By Megan Mattingly-Arthur ick Newman founded Newman Tractor in Boone County, Ky. (a suburb of Cincinnati) more than 40 years ago. Having grown up on a farm, starting a farm equipment dealership seemed like a natural fit. However, though the company’s name stuck, its focus changed over the years – from farm equipment to construction equipment.

“We started Newman Tractor in 1976,” Newman says. “This is our 42nd year in business. I grew up on a farm, so I knew a lot about the equipment that farms use. I started buying and selling farm equipment, but Newman Tractor kind of transitioned into a construction equipment dealership over the years, even though its name stayed the same.”

The shift in focus has been a great success for Newman Tractor. The company now offers

R

32 | www.cedmag.com | Construction Equipment Distribution | November 2017

sales, rentals, parts and service for Bell Trucks America trucks, Sany excavators and Morooka USA carriers – as well as Hyundai construction equipment and attachments – from locations in Kentucky and Florida.

“Newman Tractor serves the eastern half of the United States, and we do a lot of business globally because we buy and sell a lot of equipment overseas,” says Newman.

Newman Tractor’s hard work has not gone unnoticed. Over the years, the company has received numerous awards and accolades, including a Top 5 Dealer Award from Bell Trucks America. What sets Newman Tractor apart from the competition? According to Newman, it’s all about the customers.

“I think one of the main things that sets us apart from the competition is that we’re more in tune with our customers,” he says. “We know

our customers’ needs better and we do a better job of attending to those needs. Being a small business, we don’t have the luxury of telling someone, ‘we don’t have it.’ If we don’t have what a customer’s looking for, we try to figure out a way to find it for them or make it work somehow. I think we’re maybe a little more flexible than some of the bigger dealerships.

“I like working with our customers to help meet their needs,” says Newman. “Working with the great people that we work with is one of my favorite things. I also like that no two days are the same – there’s a lot of variety.”

Newman Tractor joined AED for the first time earlier this year, after hearing about some of the organization’s offerings.

“A couple of other dealers in the industry suggested that we join AED because we’d get a lot out of it, so we joined primarily because of word of mouth. Colleagues told us what a good organization AED is and talked to us about some of the educational materials

and leadership training courses they have. We’re looking forward to taking advantage of a lot of the different training materials.”

Most recently, Newman’s daughter Meredith, who serves as a project manager for the company, attended AED’s 2017 Leadership Conference in Sonoma, Calif.

Newman says his company has achieved its success thanks to its great employees and a little help from the Man Upstairs.

“The people in our company are the most important asset we’ve got – we’ve just been blessed. The Good Lord’s had his hand on our business and, if it wasn’t for that, we probably wouldn’t be here today. I truly believe that, if it wasn’t for Him, we wouldn’t have this business, so I’ve just got to give Him all the glory.”

To learn more about Newman Tractor, visit www. newmantractor.com. Newman Tractor is also on Facebook, Twitter and Google+.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 33

Your rental competitors are never standing stil .

Want to get out in front of the pack?

BE BOLD Be Different BE EFFICIENT COMMUNICATE 34 | www.cedmag.com | Construction Equipment Distribution | November 2017

By Michael Roth rental company owner, looking for ways to differentiate his rental company from those of his competitors, came up with an idea in the middle of a cold winter. He would send his service staff out to jobsites where his equipment was being rented and have them start the machines before the workers arrived for work.

By the time the workers arrived, the machines would be warmed up and ready to go. When he told his service manager about the idea, his response was “I’ve never heard of anyone doing that.”

“Exactly,” said the owner. “And that’s why we’re going to do it.” The company began the practice, and it was well received by the customers during the cold winter months.

A good friend of mine, Jim Mathers, who passed away very recently, was a terrific sales manager. For years he ran the rental program at a Cleveland company called Phillips, Day & Maddock (PD&M). He was a creative guy who was always looking for an edge. He came up with an idea for the whole PD&M service, sales, rental and delivery staff to dress all in black.

Not only that, but they painted the company’s equipment black as well, and soon the company distinguished itself in the Cleveland market with its black equipment and black attire.

On the one hand, you could say this was a gimmick. And Mathers knew well that that is all it would have been if the company’s equipment was not well-maintained, if they didn’t respond quickly to equipment breakdowns on the jobsite, if they didn’t deliver on time, if they didn’t help the customers get the right equipment for their jobs.

But the company did those things and the marketing of their “men in black” approach had its desired effect.

Another idea the PD&M team came up with was bringing lunch to workers on jobsites. At major jobsites where the company’s equipment was being used, the Phillips staff would show up from time to time with a load of pizza and submarine sandwiches, along with coffee and sodas. This popularized them pretty quickly with their customer base.

A

The point of these efforts was to be different, to be bold.

For the most part, if you’re in the rental business, you are competing against other companies that have similar equipment. It’s great that you believe in the brands you represent. You may be delivering John Deere machines and your competitor might offer Doosan and another has JCB. You offer JLG aerials, one competitor is delivering Genies, another offers Skyjack and another is also bringing JLG. Presumably in this day and age, you and most of your competitors are offering similar and well-maintained equipment. Probably they also have good preventive maintenance and good service departments and respond quickly to customer needs.

Some type of differentiation can be helpful.

While you should have confidence in the fleet you have, that in itself doesn’t guarantee differentiation. You may have certain customers who are happy with your service and prefer your particular brand, and that may serve you well with that customer. But in a tough, competitive marketplace, you most likely have competitors that will undercut your rate and get your machines kicked off a jobsite so fast your head will spin.

So anything you can do to gain an edge is worth the effort.

Efficiency is critical. There is no excuse whatsoever for not delivering equipment to a jobsite on time. The customer wants it at 6 a.m. – if you have a problem with that, then why are you in the rental business? You couldn’t get it there because there was so much traffic? Do you think the customer is impressed by that? His staff got up early enough to be on the jobsite on time, so why weren’t you there when they said they wanted it? Couldn’t get up early enough to beat the traffic? Pretty lame excuse. There is no doubt whatsoever that you have a competitor that can get up on time.

According to contractor surveys that we’ve done at RER, on-time delivery is one of the key expectations of customers.

But things happen sometimes, right? Things go wrong, the machine wasn’t ready, the driver was behind on his delivery schedule for some reason, and the delivery is going to be late.

Sometimes it happens. At these times the most important thing is communication. The machine was expected at 11 a.m. and it’s not there. What contractors have told us is they can understand that. But what they can’t understand or accept is not being informed.

In 2017, every contractor has a mobile phone attached to his belt or in his shirt pocket. You can call. You can text.

You can send an email. It doesn’t matter what you do, the important thing is that somehow or other you communicate.

It might be automated. It might be you pressing your phone and speed-dialing and actually speaking by voice, which is the more human method – and this is still very much a human-relationship business no matter how high-tech it gets. I’ve heard numerous times from contractors: “I expect the rental company to be on time. But if they can’t, there is no excuse for not letting me know.”

A rental company owner told me one time he called a contractor customer who was a pretty good friend of his.

“John, I’ve got a deal for you,” he said. “I’ll give you a free rental, but here’s what I ask for in return. I want you to take notes on the rental process for me and how my staff performs.

How do they treat you when you call? How do they treat you when you show up to pick up the machine at the rental center or if the driver delivers to your jobsite? Is there anything about the process that could be done better, quicker, smarter, more efficiently? Give me a report on what you find.”

The customer did point out a few things that could have been done a bit better, and the owner incorporated the suggestions. In a few months, he repeated the exercise with a different customer and learned a few more things. This owner told me his reasons for doing this were pretty obvious.

He wanted to know what the rental experience was like for his customers – how they perceived it, how they experienced it. He could see it from his point of view and his staff ’s, but he wanted to see it from the customer’s viewpoint.

“And,” he added, “if you’re not getting better and gaining ground, you’re getting worse, and you’re losing ground. I know my competitor is never standing still. I’d better not either, or I’ll be left behind.”

November 2017 | Construction Equipment Distribution | www.cedmag.com | 35

36 | www.cedmag.com | Construction Equipment Distribution | November 2017

LAS VEGAS, NEVADA

JANUARY 15-19, 2018

Stack the Odds in Your Favor AED’s Summit is the industry’s leading event for dealers, manufacturers, and service providers focused on the construction equipment industry. The latest products and services for the industry will be on display by OEMs and service providers focused on the needs of dealers in today’s marketplace.

The education available here will not be available anywhere else. Each session will provide tremendous opportunity to expand on existing knowledge while learning new, valuable information to take back to your dealership.

Jump all in this year and hear from four world-class keynote speakers that include one of the most high-profile business leaders in the world, Carly Fiorina, one of the most trusted and widely-recognized conservative voices, Laura Ingraham, a rising star in House Democratic leadership, Congresswoman Cheri Bustos and an executive who provides oversight on global sales strategies and team dynamics for MGM Resorts International, Michael Dominguez.

Don’t get dealt out by staying home; put your cards on the table and join your fellow industry peers at The Mirage in Las Vegas, January 15-19. Stack the odds in your favor with AED in 2018!

Below are a few of the many reasons members attend Summit each year:

EDUCATION Summit features more than 30 dealerspecific educational courses covering every department of your dealership.

If your department managers and senior staff are not in attendance, then you are truly not getting the most out of Summit. Divide and conquer the sessions being offered, your team will be better for it!

CONSTRUCTION DEALER EXPO (CONDEX) Discover the greatest products and services available for your dealership like; attachments, business software, earth moving equipment and more!

MEETINGS Visit the suites your current suppliers and forge stronger relationships with the companies that support your dealership.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 37

KEYNOTE SPEAKERS CARLY FIORINA One of the most high-profile business leaders in the world, Carly Fiorina passionately believes in the power of people to transform organizations and change the world. When Carly Fiorina took over the helm as CEO of HewlettPackard, the technology industry was in its deepest downturn in 25 years. With a mandate to transform this complacent firm, Fiorina, through her visionary leadership—inspiring others to see a different future—and the gutsy acquisition of Compaq Computer Corporation, doubled revenues, achieved the highest rate of innovation in company history and set the stage for HewlettPackard to become the world’s first $100B technology company.

Drawing from these trailblazing experiences at Hewlett-Packard and her celebrated career at AT&T and Lucent Technologies, Fiorina shares with audiences her unparalleled wisdom on how leaders and organizations must adapt to change in a world of transition and stand up to conventional wisdom in order to shape the future and change the world. Called “The Most Powerful Woman in Business”

by FORTUNE magazine—and the first woman to lead a Fortune 20 company—Fiorina’s best-selling memoir, “Tough Choices,” has been translated into 12 languages. In 2015, she announced she would seek the Republican nomination for President of the United States, capturing national attention for her platform of citizen government.

LAURA INGRAHAM One of the most trusted and widely recognized conservative voices, Laura Ingraham offers a passionate and captivating look at the world today that invariably has audiences talking long after her presentation. Laura Ingraham is the most listened-to woman in political talk radio in the United States. The Laura Ingraham Show is heard on hundreds of stations nationwide and has been addicting legions of listeners since its launch in 2001.

She is the editor-in-chief and co-founder of the political news site LifeZette, which launched in 2015. Always smart and entertaining, Laura is a regular Fox News contributor and the principal substitute host on “The O’Reilly Factor.” She is the #1 New York Times bestselling author of five books: “The Hillary Trap,” “Shut Up & Sing,” “Power to the People,” “The Obama Diaries,” and “Of Thee I Zing: America’s Cultural Decline from Muffin Tops to Body Shots.” A former litigator, Ingraham clerked for Supreme Court Justice Clarence Thomas. Before law school, she worked as a speechwriter in the last two years of the Reagan Administration. Ingraham is an avid supporter of our troops and a variety of military organizations.

38 | www.cedmag.com | Construction Equipment Distribution | November 2017

KEYNOTE SPEAKERS MICHAEL DOMINGUEZ Michael Dominguez is Senior Vice President and Chief Sales Officer for MGM Resorts International. In this role, he provides executive oversight for the global sales strategies of the company’s 42,000 hotel rooms and its three million square feet of meeting space (more meeting space than in all of New York City). Mr. Dominguez also leads the company’s industry relations and MGM Resorts Event Productions efforts. Prior to joining MGM Resorts in 2012, Mr. Dominguez was vice president of global sales for Loews Hotels & Resorts, where he oversaw sales efforts for 18 luxury hotels in the U.S. and Canada starting in 2008. He began his hospitality career working with Hyatt in 1984. Mr. Dominguez also actively serves in various leadership roles in the meetings and events industry and currently serves as the immediate past chairman on the international board of directors for Meeting Professionals International. His most recent appointment is to the board of the Global Business Travel Association (GBTA) Foundation. Among his other achievements, Mr. Dominguez was named one of Meetings Focus’ 2014 “Meetings Trendsetters,” one of “50 Influentials” in the 2013 HispanicBusiness.com’s annual list, one of the “25 Most Influential Hispanics in Business in North America” by Hispanic Business Magazine, and one of the “25 Most Influential People in the Meetings Industry” by Successful Meetings Magazine.

CONGRESSWOMAN CHERI BUSTOS Congresswoman Cheri Bustos is in her third term representing Illinois’ 17th congressional district, which comprises the northwestern part of the state. A rising star in House Democratic leadership, she’s earned a reputation in Washington as a pragmatic, bipartisan lawmaker that’s searching for common ground between the political parties to solve problems. One of only twelve Democratic House members holding a seat in a congressional district won by President Trump in 2016, Bustos has proven that focusing on job creation and economic growth is a winning combination regardless of political party. Bustos serves on the House Transportation & Infrastructure Committee and the House Agriculture Committee.

She was also elected by her colleagues to be co-chair of the Democratic Policy and Communications Committee, a Democratic leadership position that gives Bustos a key voice in shaping her party’s agenda and messaging. As the only Midwesterner elected to Democratic House Leadership, she is working to ensure that Democrats connect with rural and working-class Americans and the business community. She’s also a member of the New Democrat Coalition, an influential group committed to pro-economic growth, pro-innovation and fiscally responsible policies.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 39

EDUCATION TRACKS AT LAS VEGAS, NEVADA

JANUARY 15-19, 2018

Summit features more than 30 dealer-specific educational courses covering every department of your dealership. If your department managers and senior staff are not in attendance, then you are truly not getting the most out of Summit. Divide and conquer the sessions being offered, your team will be better for it!

▶ LEADERSHIP ▶ RENTAL ▶ SALES ▶ MANAGEMENT ▶ PRODUCT SUPPORT ▶ TECHNOLOGY 40 | www.cedmag.com | Construction Equipment Distribution | November 2017

STACK THE ODDS IN YOUR FAVOR Fee Type

Early

Regular

Late

EQUIPMENT DEALER: SINGLE REGISTRANT Member Fee

$900

$925

$975

Non-Member Fee

$1,800

$1,850

$1,950

EQUIPMENT DEALER: TWO ATTENDEES Member Fee

$675

$700

$750

Non-Member Fee

$1,350

$1,400

$1,500

EQUIPMENT DEALER: THREE-FOUR ATTENDEES Member Fee

$440

$445

$505

Non-Member Fee

$880

$910

$1,010

EQUIPMENT DEALER: FIVE-SIX ATTENDEES Member Fee

$340

$350

$400

Non-Member Fee

$680

$700

$800

EQUIPMENT DEALER: SEVEN OR MORE ATTENDEES Member Fee

$325

$335

$385

Non-Member Fee

$650

$670

$770

SPOUSE / FAMILY MEMBER / GUEST Member Fee

$275

$300

$325

Non-Member Fee

$550

$600

$650

CONDEX EXHIBITOR / SUITE PARTICIPANT / SPONSOR Member Fee

$300

$300

$350

Non-Member Fee

$300

$300

$350

MANUFACTURER / SERVICE / FINANCIAL - NON CONDEX/ SUITE/ SPONSOR Member Fee

$1,000

$1,025

$1,075

Non-Member Fee

$2,000

$2,050

$2,150

LOCATION

The Mirage Hotel 3400 S. Las Vegas Blvd.

Las Vegas, NV 89109 702-791-7111

HOW TO REGISTER Online: www.aedsummit.com Phone: 800-388-0650

HOTEL RESERVATION

AED has an exclusive room block available at The Mirage Hotel in Las Vegas until Wednesday, December 27, 2017. Book your room online at bit.ly/summithotel18 or call The Mirage Hotel at 800-627-6667 and reference the block code AED18A. Rooms start at $149.00, and are available at this rate until December, 27, 2017, as long as the block has available inventory. Checkin time is 3:00 pm, and check-out is 11:00 am.

IMPORTANT INFORMATION REGARDING YOUR 2018 SUMMIT & CONSTRUCTION DEALER EXPO (CONDEX) HOTEL RESERVATIONS Please be aware some third-party travel companies may attempt to solicit you regarding housing for the 2018 AED Summit & CONDEX. Despite the fact that these companies represent themselves as the “official” housing source, they are not authorized by AED and may provide false information regarding the availability of rooms at the conference hotel.

If you are contacted by a travel or housing company, please notify AED at sbrassel@aednet.org immediately.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 41

We look forward to seeing you in Las Vegas.

Please note that this event is black tie optional. Questions? Contact AED’s Senior Director of Education and Programming, Liz McCabe lmccabe@aednet.org or 630-468-5132 or The AED Foundations Associate Director of Development and Workforce, Martin McCormack mmccormack@aednet.org or 630-468-5113.

42 | www.cedmag.com | Construction Equipment Distribution | November 2017

Step away from The Strip on Tuesday, January 16, during the 2018 Summit for a fun-filled night focusing on The AED Foundation. Surround yourself in classic Las Vegas style with your industry peers at Wayne Newton’s estate, Casa De Shenandoah, for dinner, drinks, live entertainment and fundraising auction, all benefiting The AED Foundation.

The event will also host the 11th annual live auction presented by The AED Foundation & Ritchie Bros. to bring awareness to what matters the most, The AED Foundation and its fight to end the skills gap impacting our industry, leaving AED members with a loss of $2.4 billion in annual revenue.

• $200 standard ticket includes access to the property and museum • $300 upgraded single ticket includes access inside the mansion and the opportunity to see Wayne Newton • $2,000 standard ticket package includes ten standard tickets to distribute as you please and your name on our VIP signage • $3,000 premium VIP package includes ten upgraded tickets, your name on the VIP signage, access inside the mansion and the opportunity to see Wayne Newton Please note: There are only 100 upgraded tickets granting access inside the mansion that will be available for purchase.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 43

Journey to the Top Growing Up Around Family AC Business Influenced Atlas Copco USA President Scott Carnell’s Decision to Pursue Career in Heavy Equipment Industry

By Megan Mattingly-Arthur The seeds of what would eventually grow into a robust career in the heavy equipment industry were planted when Scott Carnell was very young. His family owned a heating and air conditioning business where he learned about boilers, air conditioning systems, piping, electrical systems, concrete and carpentry – and he came away from the experience having learned invaluable life lessons.

“I grew up in a blue-collar family,” he says, “and got my start in the family business early in life. It was a situation where you went to work on the weekends, swept the floors, cleaned up and, along the way, you learned the simple jobs until you could do just about anything yourself – even at a very young age. I was very fortunate to work with my dad and grandfather. They were never like, ‘Hey, I’ve been here longer, so you have to do the garbage work.’ Instead, they had the attitude of, ‘As soon as you can do this job, you can do something else.’”

The value of teaching others is something that’s stuck with Carnell ever since.

“Regardless of who you are, teach every chance you can get, to guarantee long-term success,” he says. “If you’re teaching and people are learning, they’re doing things and they don’t need someone to watch over them. Pretty soon, they’ll be 44 | www.cedmag.com | Construction Equipment Distribution | November 2017

“Regardless of who you are, teach every chance you can get, to guarantee long-term success. If you’re teaching and people are learning, they’re doing things and they don’t need someone to babysit them. Pretty soon, they’ll be teaching someone else. Teaching others starts a chain reaction that benefits everyone.”

— Scott Carnell

teaching someone else. Teaching others starts a chain reaction that benefits everyone.”

Considering the great experiences he had working in the family business, it’s no surprise that Carnell sought out something similar when it came time to choose a career path.

After college, he accepted a job in sales and began his journey to the top.

“When I got ready to graduate college, I was really drawn to the opportunities that were similar to what I’d grown up with in the family business,” Carnell says. “My first job was in territory sales, then I worked as a sales manager at a small company before moving on to work in regional management on the manufacturing side in a role that involved business development, helping dealers and finding new ones . After that, I was a vice president of sales and marketing. Next, I was a business line manager for the Atlas Copco Portable Energy division. I then served seven and a half years as president of Atlas Copco Specialty Rental North America before accepting my current role as president of Atlas Copco Construction Equipment USA in 2016.”

Having worked in both the manufacturing and distribution sides of the construction equipment industry, Carnell sees them as two sides of the same very important coin.

“Dealers are driven to take care of customers directly, while manufacturers are driven to take care of dealers who take care of the end customer,” he explains. “As president of Atlas Copco Construction Equipment North America, the most important thing for me is paying attention to our customers and employees, setting the proper tone, doing things in the Atlas Copco Way, setting strategy to surpass our goals and constantly tweaking things to achieve those goals on a daily basis.”

The construction equipment industry was a great fit for Carnell, who enjoys seeing the results of what customers do with the equipment they buy or rent. Another of his favorite things about his involvement is having the opportunity to work for a well-regarded company like Atlas Copco.

“One of my favorite things about working in the construction equipment industry is getting a chance to see what you’re a part of,” Carnell says. “When you sell equipment, you’re involved with every facet of what happens in the country – whether it be building roads, using air to break things apart or blow things up, or sandblasting things to make them look better.

You get a chance to not only participate in all of that, but really see the results. Atlas Copco is extremely well grounded. We’re always trying to improve because we honestly believe that there is always a better way. Regardless of what country you’re in, Atlas Copco is working to achieve our vision, be a leader, behave ethically and honestly and reflect our core values.”

Having worked his way to the top of the construction equipment industry, Carnell offers the following advice for others hoping to do the same: “Take every opportunity there is to learn about business, products and customers – and make sure to watch and observe what’s going on around you. We’re always looking for folks who are observant, because if you’re observant, you’re paying attention to your customer, your surroundings and your competition.

“Make it your own personal responsibility to manage your career and don’t be afraid to take a chance. Don’t pass up that next job just because it doesn’t appear to be a step up or pay a tremendous amount of money. Take a look and ask yourself, ‘Will it make me a better, more rounded employee later?’

“Never forget that actions speak louder than words. As you move up in your own company, remember that people watch what you do every single day and emulate it. Don’t be one of those people who says, ‘We have all these rules and this is what you should do, but I’m going to do something completely different.’”

For more information on Atlas Copco USA, visit www. atlascopco.us. Atlas Copco USA is also on Facebook, Twitter, LinkedIn, YouTube and Instagram.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 45

>> VIEW FROM THE HILL

SEN. MIKE ROUNDS (R-S.D.)

20 Trillion Reasons to Reform Taxes, Mandatory Payment Programs Surpassing $20 trillion in debt should be a wake-up call to Washington, which for decades has failed to own up to its responsibility to balance the checkbook.

The federal government’s national debt recently surpassed $20 trillion. While there is plenty of blame to go around, the majority of this debt can be attributed to the past decade, as our debt was $10.6 trillion at the start of 2009. In other words, in the past eight years, the federal government has accrued as much debt as it accrued throughout the first 230 years of our country’s existence. It’s no wonder military leaders acknowledge it as being a top threat to our national security. Even more frightening, there is no sign of it slowing down.

High debt threatens economic growth by driving up interest rates and discouraging businesses and individuals from investing back into the economy.

And it breeds even more debt as the interest on our debt must be paid to those who hold it – leaving fewer resources for other priorities such as roads, research and education.

Our broken tax system also plays a role by limiting our ability to collect revenues. Our current tax rates create a disincentive for companies to do business here in the United States, which then leads to fewer high-paying jobs for American workers, and encourage businesses to keep their profits overseas.

Lowering tax rates would incentivize companies to repatriate that money and invest it back into our economy. Earlier this year, I introduced a proposal in the Senate to lower the tax rate in each bracket.

It is but one step we can take to overhaul the tax code that will provide direct, immediate relief to hardworking families, jolt our economy and increase federal revenues.

While I do believe tax cuts are an important step in controlling our debt, the biggest driver of our debt is the rapid, unchecked growth of mandatory payments on safety net programs including Medicare, Medicaid and Social Security. If we continue down our current path, in less than ten years 99 percent of all federal revenue will have to be spent on mandatory payments and interest on our sky-high debt. No amount of cuts to defense and other programs such as crop insurance, education, highways and bridges will have a meaningful effect on debt reduction without our controlling the cost of these mandatory payment programs as well.

Mandatory payments already account for nearly

three-fourths of our total federal spending today.

This is because Medicare, Medicaid and Social Security have never been properly managed, and Congress does not appropriately oversee them.

They run on auto-pilot. Given that they are our largest federal expenditures every year, it is time for Congress to take an active role in managing their funding levels on a regular basis. This does not necessarily mean making cuts – it simply means giving Congress the authority to review them to make them as efficient as possible and to make sure they are available for individuals who need them, both now and in the future.

Surpassing $20 trillion in debt should be a wake-up call to Washington, which for decades has failed to own up to its responsibility to balance the checkbook. I continue to work with my colleagues in the Senate to shake up the budget process in Congress and open up the entire budget to congressional review – including mandatory payments. It is the only way to slow down the fiscal train wreck. Simply delaying action and looking the other way is not an option.

SEN. ROUNDS is in his first term representing South Dakota in the U.S. Senate. He serves on five Senate committees: Armed Services; Banking, Housing & Urban Affairs; Veterans’ Affairs; Small Business & Entrepreneurship; and Environment & Public Works.

46 | www.cedmag.com | Construction Equipment Distribution | November 2017

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48 | www.cedmag.com | Construction Equipment Distribution | November 2017

“Our mission is to build innovative technology products and tools that help companies stop wasting time and money.”

– Pop Art CEO Tom Paul

By Megan Mattingly-Arthur ocated in Portland, Ore., Pop Art, Inc. is a cloud-based digital solutions powerhouse, offering tailored sales enablement tools, a robust digital asset management platform, and end-to-end custom software development services. They artfully combine the expertise and experience that comes with having spent more than two decades on the crest of the technological wave.

“We help manufacturers and dealers deploy a variety of mobile tools that eliminate inefficiencies,” said Pop Art CEO Tom Paul.

“For example, a lot of sales teams are held back from achieving peak performance by systems and processes that are outdated, manual, and just plain slow, not to mention frustrating. Better tools are part of the solution, but they won’t help if they go unused. That’s why we include a comprehensive roll-out and adoption program to make sure anything we deploy delivers the intended business value. The goal of the programs we offer is increased market share for manufacturers and higher margins for dealers.”

Founded in 1997, Pop Art celebrated its 20th anniversary this past summer. Paul has been with the company almost from the beginning. He got his start working as a jack-of-all-trades in a facilities/operations role before moving up through the company ranks and acquiring a majority stake – and the position of CEO – in 2015.

“I joined Pop Art in 2000 in a facilities/operations role, but I ended up filling in wherever needed, doing everything from project and account management to bookkeeping and HR,” Paul said. “Looking back, I gained a wide range of skills that proved invaluable in preparing me for higher-level management responsibility. I served as the company’s COO starting in 2007, and in 2015 I became its CEO.” An enthusiastic and engaged workforce and Paul’s focus on flawless execution have kept Pop Art at the forefront of digital sales and marketing software.

“Our mission is to build innovative technology products and tools that help companies stop wasting time and money,” he said. “My business philosophy is based on two core ideas: first, a company’s most important asset is the energy and enthusiasm of its

L

people, so I work tirelessly to cultivate that. Second, without topnotch execution, strategy is irrelevant.”

Another thing that sets Pop Art apart from the competition is the company’s willingness to take the time to understand its clients’ challenges and implement targeted solutions.

“Our capability to diagnose and solve real-world business problems is a huge asset,” Paul said. “Just as every company is unique, so are its opportunities. We take extra time to ask the necessary questions to understand the unique circumstances each company is dealing with. Then, we can identify where their investments will yield the greatest return. Within that context, we are able to offer powerful out-of-box, ready-to-use tools that can be customized and integrated to whatever extent needed. For our clients, it’s the best of both worlds.”

Pop Art’s hard work has not gone unnoticed. The company has been recognized numerous times throughout the years for its innovative work and empowering company culture.

“Being in business for twenty years, we have won our share of awards, but there are two that stand out for me,” said Paul. “The first is being recognized by Daimler Trucks North America at their annual summit for innovation in technology. Getting that kind of acknowledgment from a client means we are making an impact.

The second is being recognized on the list of best places to work in Oregon. Engaged, motivated employees do the best work, and are the most fun to work with.”

While many of Pop Art’s tools and apps were built with manufacturers in mind, the company hopes that AED membership will help it bring greater value to its dealer customers.

“Most of the software tools and mobile apps that we have developed have been built first and foremost for manufacturers, with dealers as the end users,” Paul said. “We joined AED seeking to leverage our experience in a way that brings even more business value to dealers.”

To learn more about Pop Art, call 503-242-4292, email hello@ popart.com or visit www.popart.com. Pop Art is also on LinkedIn, Facebook, and Twitter.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 49

How to Make WORK More Meaningful for Your Team

By Lewis Garrad and Tomas Chamorro-Premuzic © 2017 Harvard Business School Publishing Corp.

T

oday, many employees demand much more than a good salary from their jobs. Money may lure people into a particular position, but purpose and meaning determines both people’s tenure and how hard they will work while they’re on the job.

Research shows that employees experiencing meaningful work report better health, well-being, teamwork and engagement. In other words, they are more likely to thrive and grow when they experience their job as meaningful.

Over the past few decades, a great deal of research has shown that leaders play a significant role in helping workers understand why their roles matter. In particular, four key personality characteristics can help leaders make other people’s jobs more meaningful:

Being Curious And Inquisitive

Curious leaders help people find meaning at work by exploring, asking questions and engaging people in ideas about the future. These leaders help employees find something meaningful by providing a wider range of possibilities for how work gets done. Curious leaders are also more likely to get bored and detest monotony, so they will always be looking for people to come up with new ideas to make their own work experience more interesting.

Being Challenging And Relentless

One of the greatest problems organizations must solve

is the inertia and stagnation that follow success, or even its anticipation. Research shows that optimistic people who expect to do well don’t try as hard as people who expect to struggle or fail. Leaders who remain ambitious in the face of both failure and success instill a deeper sense of purpose in their teams and organizations.

Hiring For Values And Culture Fit

Research shows that people only find something valuable if it aligns with their core needs and motives. This is why the fit between an individual’s personal values and the culture of the organization he works for is such an important driver of his performance. Leaders who pay attention to what each individual values are more likely to hire people who find it easy to connect with their colleagues and the wider organization, which helps to drive a sense of meaning.

Being Able To Trust People

Most people hate being micromanaged. Overpowering and controlling bosses are serious source of disempowerment for employees, draining the impact of their work and making them feel worthless. In stark contrast, leaders who know how to trust people are more likely to give employees room to experiment and grow.

Whereas engagement results in enthusiasm, drive and motivation — all of which increases performance — happiness can lead to complacency. To be a good leader, focus on helping employees find meaning in their achievements, rather than just enjoy their time at the office.

LEWIS GARRAD, a chartered organizational psychologist, is the growth markets lead for Sirota. TOMAS CHAMORRO-PREMUZIC is the CEO of Hogan Assessment Systems, a professor of business psychology at University College London and a faculty member at Columbia University.

50 | www.cedmag.com | Construction Equipment Distribution | November 2017

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Sales Dead Last?

Turn It Up!

A

few years ago, a new sales manager inherited an eightperson sales team that was ranked dead last out of six dealer branches. His one decent producer was an eighteen-year veteran with the company. Other than that, no one on the sales team had more than one year of sales experience or any formal sales training; they had only received product training from the manufacturers’ sales schools. To make things worse, the sales staff had a pitiful attitude. In the first two weeks, the manager consistently received excuses for poor performance: ”I have a lousy territory!” “Our prices are too high!” “Contractors are loyal to XYZ Brand!”

Here are ten steps he took that brought

By Christine Corelli about success:

Step #1: Slow down in order to speed up. Analyze the situation.

The manager knew that to obtain extraordinary results in business, you have to have a plan. He knew he had been brought on board because the team’s former sales manager had not been effective. He also knew he would have to provide sales training and coaching, but he first had to analyze the situation before he could turn things around.

Over the next two weeks, he interviewed each individual on his sales team and listened carefully. It did not take him long to realize that lack of training was not the only reason for the team’s failure.

One of the biggest reasons was that the salespeople did not believe in themselves. Other than the one producer, none had experienced the taste of success and the thrill of victory.

Who can fill the role?

The salespeople lacked a role model, and the sales manager knew that he alone could not fulfill that role. Most salespeople emulate the actions of a peer they admire. They play “follow the leader” with someone they look up to—and not necessarily their sales manager.

Clearly, a leader had to be discovered fast.

In the world of sports, the strongest players on the team assume a leadership role. This is often referred to as “stepping up.” This bewildered sales manager had no one who could step up, be a success example, or share his or her knowledge and skills with these less experienced salespeople. The one salesperson who was 52 | www.cedmag.com | Construction Equipment Distribution | November 2017

producing had no desire to help others. No one else on the team was capable of displaying that type of leadership.

Step #2: Make decisions. Create a strategy and a written action plan.

The sales manager did what every smart salesperson does. He created a strategy and a written Action Plan for Sales Success. Now, execution would be key.

Step #3: Find a success role model.

The manager recruited a new salesperson to be a success model.

He knew if he hired the right person, that individual could play an important role in reversing the downward performance trend. The sales manager found his new leader when he hired John, a salesman who worked for a competitor.

The manager told John to stick with him and do exactly as he taught him. Over the next eight weeks, the sales manager taught John everything he knew. Although John had received product sales training in his previous job, the manager coached him on territory management, time management, and critical sales communication skills – listening, asking intelligent questions, overcoming objections, asking for the business, negotiating, and closing the sale.

John knew the sales manager was counting on him, and he did not let him down. In his fifth month, John produced 110 percent of quota, even though he was the new kid on the block. The manager called a sales meeting. He started the meeting by announcing bits of information. Then he proceeded to give John accolades.

Overnight, the attitude in the office changed from one of making excuses for poor performance to “What’s that new guy doing?”

John’s performance forced the others to take a good hard look in the mirror. That is when the sales team finally accepted responsibility for their complacency, negative attitudes, and average performance.

Step #4: Train, coach, and educate.

The sales manager knew that coaching methods based on the solid learning principles of spaced repetition, positive reinforcement, and practice were necessary.

He scheduled weekly sales meetings on Friday afternoons. During the week he gave homework assignments on different selling skills. Time and territory management were also discussed. For a while the sales manager coached the role-playing. Then he turned the coaching over to individual salespeople.

Sometimes he would bring a package of hot dogs, a container of yogurt, or an ugly vase to the meetings. He would direct them to take turns communicating the features and benefits of whatever he brought and to close the sale.

Meetings were always upbeat, interesting, and fun! He even held meetings at a nearby park and in the parking lot of the company’s building. (I recall a visit where I saw an example of this. As I pulled into the parking lot in front of the building, I saw a group of twelve people sitting on the grass. They were having a sales meeting! I sat in my car for a while to observe. There they were, talking in the sunshine and open air where their minds could find fresh thoughts. I saw him ask them to stand so that energy levels would be high. I found out later he often called these meetings spontaneously and did not allow cell phones, beepers, or any distractions.) Smart manager.

At each meeting, a $50 gift card was given to the best presenter, and a drawing was held for a $25 gift card. (These were small investments the company was willing to make that could pay off big-time.) No wonder people looked forward to these sales meetings!

Discussions on the state of the construction, material handling, and ag equipment industry took place. The team was instructed to research information and study their industry for at least one hour every week and to bring what they learned to the meetings.

Step #5: Coach mediocre salespeople to greatness or remove them from the team.

Far too often, poorly performing salespeople are allowed to continue in their lackluster ways. A manager may not want to

face the hassle of recruiting a replacement or may want to avoid confrontation. This is a big mistake.

In today’s world, a sales manager cannot accept mediocre sales performance. The best managers take a hands-on role and provide the coaching the poor performer needs to improve. If there is no improvement, the manager must have the courage to remove that individual from the team. This may sound cold-hearted, but it must be done.

Step #6: Set high sales performance standards.

The sales manager set high performance standards for his sales staff. He communicated his expectations. He explained that his purpose was to “raise the BAR” with standards that consisted of Behavior, Activity, and Results. (A simple Behavior standard, he explained, would be to arrive in the office every morning before 8 a.m. and plan the day. An Activity standard would be to make a minimum of 25 telephone sales calls every day. A Result standard would be that a sales representative with seven to nine months of sales experience would be able to sell a specific minimum per month.)

For results, the sales manager set two standards. The first was a lower “keep your job” standard. Salespeople who fell below the minimum standard for a three-month period would be placed on probation. If sales did not pick up for that person the next quarter, they would have to be “dehired.”

Another standard performance result would be, of course, an even higher sales quota.

To maintain high morale, the manager made sure to set sales goals that were achievable. To inspire his team, he gave each individual a sheet of paper that had one thing on it: a number, which was the commission they would make if they met their sales goal. Smart manager.

Step #7: Remove those with belowminimum standards.

Tough as it is, a sales manager must remove team members with belowminimum standards. If he or she does not, the other salespeople will wonder whether the company is serious about these standards. The first person removed will send a message that is loud and clear: performance standards will be enforced. If

not enforced, standards are meaningless.

Step #8: Coach, coach, and coach some more.

The sales manager spent a great deal of time going on calls and coaching individual salespeople. He knew it was the only way to build a dynamic team. He also made himself available to help them close a deal.

Step #9: Cultivate a fun atmosphere and a higher quality of life.

Fun in the workplace, what a novel idea!

The sales manager held a series of contests that helped the sales team focus on team goals. For example, if the team hit a monthly goal, they earned a gift. Sometimes they received movie passes for themselves and their families. Other times they were given golf outings.

Sometimes the sales manager would ask the team to create skits. One day the negative attitudes and behaviors they had displayed when the sales manager was first hired were reenacted. At that point, he knew he had transformed the culture of his sales organization.

Step #10: Know what each salesperson wants.

Every individual has something that motivates them. The sales manager always believed that, unless a company gave employees a stake in their organization, they could care less about shareholder value. They care about their families and their hopes and dreams. The sales manager found out what every salesperson wanted and, using this information, helped the salesperson reach his or her goals. “You want to put that addition on your house, right?” “You want to give those kids the best education, don’t you?” “I can see you driving that dream car into the parking lot already.” “You’ve been working so hard. Let’s make sure you and your family can take a nice vacation this year.”

The result? Eighteen months after taking over, the sales manager’s team had moved from last place to number five in sales, having posted the biggest increase in sales of any team in the company.

Perhaps a few of the strategies this sales manager applied will help you improve the performance of your sales team.

CHRISTINE CORELLI is a conference speaker, columnist, and author of five business books, including the best-selling Wake Up and Smell the Competition and Capture Your Competitors’ Customers and KEEP Them. She has been a popular speaker at numerous industry events. To learn more, visit www.christinespeaks.com, or call 847-581-9968.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 53

d d o o o o G G Leaders Are Learners

By Peter Heslin, Susan J. Ashford and Lauren Keating © 2017 Harvard Business School Publishing Corp.

A

lthough organizations spend more than $24 billion annually on leadership development, many leaders who have attended leadership programs struggle to implement what they’ve learned. It’s not because the programs are bad, but because leadership is best learned from experience.

Still, simply being an experienced leader doesn’t elevate a person’s skills.

Like most of us, leaders often go through their experiences somewhat mindlessly, accomplishing tasks but learning little about themselves and their impact.

Our research on leadership development shows that leaders who are in learning mode develop stronger leadership skills than their peers. In particular, we found that leaders who exhibit a growth mindset diligently work through each of the following three phases of the experiential learning cycle.

First, leaders set challenging learning goals. For some leaders, the goal might be to become more persuasive or to be more

approachable. With a goal in mind, leaders can identify opportunities to make progress toward it. These could include a new project, an international assignment or simply striving to approach routine encounters in a fundamentally different way.

Next, leaders find ways to deliberately experiment with alternative strategies.

A leader interested in increasing their persuasiveness, for example, might experiment with speaking first or last in a critical meeting.

Finally, leaders who are in learning mode conduct fearless after-action reviews, determined to glean useful insights from the results of their experimentation.

Candidly reflecting on what went well, what did not go so well and what might work better in future is essential.

Such leaders will view setbacks as evidence that they have not yet developed the required capabilities, rather than that they are just not cut out for the task at hand. They will also avoid the trap of constantly seeking out places and tasks to highlight their strengths, as well as feedback that affirms their innate talents

and self-esteem. Simply asking oneself, “Am I in learning mode right now?” can be a powerful cue to wholeheartedly focus on leadership development.

How can organizations help leaders enter and remain in learning mode?

Organizations should get rising leaders to focus more on improving their performance progressively, rather than constantly benchmarking themselves against others. They should also construe mistakes as potential learning opportunities rather than indicators of leadership inadequacy. In hiring and promotion, organizational leaders might want to give priority to those most likely to grow and develop in a role. Finally, they might conduct an audit of fixed mindset cues in their organization and tweak them to focus more on developing than diagnosing leadership capabilities.

By supporting leaders being in learning mode, organizations can develop the capabilities that leaders need to anticipate, respond to and continually learn from the stream of emerging challenges to organizational prosperity.

PETER HESLIN is associate professor of management at the UNSW Sydney Business School, Australia. SUSAN J. ASHFORD is the Michael and Susan Jandernoa professor of management and organization at the University of Michigan’s Ross School of Business. LAUREN KEATING is a doctoral student at UNSW Sydney Business School, Australia.

54 | www.cedmag.com | Construction Equipment Distribution | November 2017

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10/17/2017 3:00:15 PM

Keeping Your Content

FRESH

56 | www.cedmag.com | Construction Equipment Distribution | November 2017

...Or How to Find Great Content Ideas to Engage Customers and Build Credibility N

ew digital content and blog posts have become the marketing lifeblood of most businesses today, but for equipment dealers and manufacturers they are especially vital. Equipment buyers tend to do more research before purchases, and the sales cycle can run for months before decisions are made. That’s a lot of time to keep prospects engaged and keep you in their consideration set.

Enter blog articles. For most B2B companies, this is simply a section of your website used to regularly publish helpful articles that are relevant to your customers and prospects. The goal is to build trust and rapport by sharing your industry expertise on educational topics that keep people coming back for more. Furthermore, search engines love new content, and blogging has proven to be a very effective search engine optimization (SEO) tool.

According to the Content Marketing Institute, 85 percent of B2B marketers think their content marketing improved in 2017 primarily because of better content creation. Good news, but how do you keep content fresh with new topics? We’ve got a few ideas and share them with you here.

By Brian Shanahan

Create Interactive Material

Video has been a hot tool for a few years, so it makes sense that more interactive material would be the next step. Engaging prospects with quizzes, surveys, webinars, and other interactive formats will help you learn more about their needs while being able to share company information at the same time. It’s a win-win for everybody.

Leverage Guest Experts

By inviting industry experts, product managers, and service engineers to chime in on your corporate blog on a regular basis, you not only position your company as a thought leader, but you also get a new world of ideas from these outside experts and sources.

Repurpose Existing Content

You probably have a lot of content that’s been made available in fixed formats for customer access. You can extend the life of these materials and beef up your blog content calendar simply by reshaping what you’ve already created. Have a great white paper on a hot topic? Break it down into a blog series. Interesting customer testimonials? Craft blog articles from them, leading with customer benefits and valued selling points. And don’t forget about your core corporate materials. Revive your mission and core brand principles into a great blog series that will remind customers why they’ll always remain loyal to you.

Tap Into Customer-Facing Staff

The people in your sales and customer support groups have a direct line to the people you want to reach. They can tell you right now what’s making customers happy and what isn’t. Learn to use what they know and build ongoing blog posts based on addressing customer pain points, common questions, and trending interests. Customers will appreciate that they’ve been heard, and your internal teams will be grateful that critical customer issues get some visibility and resolution where necessary.

Create a Customer Showcase

You may already have customer case studies in your arsenal of content, so why not modify them to create blog content? It’s usually just a minimal editing job for you, and customers are pleased to get the exposure. It will show prospects and new customers how much you value these relationships as well as demonstrating the confidence these showcase companies have in your people, products, and services.

Try Content Research Tools

There are a number of great content research tools available now that help marketers fill in blog content calendars when product and corporate news runs dry. Tools like Google Trends, BuzzSumo, Feedly, and others, including your competitors’ and industry websites, will show you trending topics.

If you’re feeling tapped out when it comes to new blog topics, you’re not alone. Generating a steady diet of content can lead to burnout unless you change focus and vary the tools you’re using. Don’t be afraid to innovate and always be sure that whatever content you create, it’s in line with your brand, it’s authentic, it’s original, and it’s something that your customers will find interesting and relevant.

BRIAN SHANAHAN is president of Shanahan Strategy Inc., a marketing and web development agency based in San Mateo, Calif. With over 20 years’ experience, Shanahan Strategy helps manufacturers, distributors, and dealers evaluate and set strategic plans to grow sales. Services include growth strategy, lead generation, web development, content marketing, and consulting. To learn more, visit shanahanstrategy.com or call 650-393-5966.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 57

AEM & AED Members Learning With... And

58 | www.cedmag.com | Construction Equipment Distribution | November 2017

From Industry Peers at Drivers of the Industry

By Katie Howell ow much time do you spend with your industry peers? Would you be likely to spend more time with them if the opportunity were presented? That was the premise behind the AEM/ AED Forum: Drivers of the Industry event that took place from September 12 to 14 in Rosemont, Ill., at the Loews Chicago O’Hare Hotel. This event, a partnership between AED and AEM, brought manufacturers and dealers together to learn with and from one another on common ground, and I was there to witness the impact that bringing these A E M / A E D Fo r u m: two groups together had on making it Drivers theofIndustry so successful.

The Forum began off-site on Tuesday, September 12, with a brand-new event: the Fairways to the Future Golf Outing at the Eaglewood Resort. This outing started our day off with a bang, or maybe a loud FORE, as attendees were put into foursomes and got the opportunity to meet and connect before the conference began. It was a morning of fun for all involved and supported The AED Foundation as well, with the proceeds going to The AED Foundation and its mission to construct paths to opportunity for the construction equipment industry. We hope to continue this fun event in future years, so we can give our members memorable moments and support a great cause at the same time.

The event kicked off on Wednesday, September 13, with our engaging keynote speaker, Luke Williams. Bringing real-world technological examples into his discussion (think along the lines of Netflix and Blockbuster), he described how new innovations can lead to disruptions within an already established company.

His speech made the audience think outside the box about how they can get ahead of the curve and avoid disruption in their own companies by being the disruption.

From there, many other topics were covered: economic outlooks, telematics, political and legislative updates, rental, workforce and much more. Many sessions had multiple speakers, one with dealership background, one with manufacturing background, and occasionally an end user to give the audience different perspectives on a given topic.

What I saw as the most beneficial sessions for attendees were the dealer and OEM panels. For these panels, three OEMs and three distributors were invited to share their perspectives on upcoming challenges and issues. These panels provided discussion-based sessions where audience member OEMs picked the minds of the dealer panelists, and vice versa, in a sort of open-forum style. These panels made attendees think creatively about their own challenges and gave them more insight into what their clients or providers are thinking about for the future of their businesses.

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SEPTEMBER 12-14, 2017

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LOEWS ROSEMONT, IL

Learn about current industry drivers and the latest issues facing the heavy equipment industry. Gain insights to help you succeed and maximize your profit opportunities.

bit.ly/2017aemaedforum

After an eventful day of educational sessions, cocktail receptions were held as an additional opportunity for attendees to network and meet on common ground.

Since this conference focuses so much on being a place where business affiliates can meet under one roof, these receptions are important to give industry leaders a chance to talk outside of the educational setting.

We hope that everyone who was in attendance at this event enjoyed their time in Chicago and gained valuable insight. Our biggest annual event, the 2018 Summit, is just around the corner, and we are excited about again providing opportunities for you to continue your education through AED. We look forward to seeing everyone there!

November 2017 | Construction Equipment Distribution | www.cedmag.com | 59

The Real Value of an

Employee Development and Training Strategy

By Visibility Software any organizations tell us that while they understand the value of employee training and development, they aren’t certain they need a formal learning management program to deliver, track and manage that training. Many of these organizations track the training they do provide in spreadsheets or even with paper files. While we can agree that any approach is better than no approach, learning management programs are ideal candidates for automation. There are big benefits to be realized from standardizing processes and automating the workflow surrounding employee training, and here we take a look at just a few of those benefits.

M

Aiding retention

Studies tell us that 40 percent of employees who receive poor job training leave their positions within the first year, citing the lack of skills training and development as the principal reason for moving on. Employee development and training programs help people feel invested in their jobs and in their organizations. A well-established program ensures that employees continue to feel motivated to advance their own careers within the company, as well as to advance the company’s mission, rather than turning elsewhere for new opportunities.

Attracting job seekers

An organization that has a standardized employee development plan reassures job seekers that the company is invested in their longterm success and advancement within the organization. Applicants are less likely to invest themselves in a company that doesn’t show the same commitment in return. A recent Bersin study noted, “Companies with career management programs are better able to attract and retain top talent, leading to higher employee engagement and, in turn, a positive impact on the bottom line.”

Automating manual processes

If your training requirements are modest, it may be tempting to continue to use your collection of spreadsheets to track course offerings, registrations and certification renewals, but by deploying a smart learning management solution, you can dramatically reduce the overhead involved, saving money and driving efficiency.

From automatic reminders to employees and their supervisors, to enrollment tracking and training, to reimbursement request handling, through an automated approval workflow a dedicated learning management solution can generate a rapid and significant return on investment.

Promoting consistency

With formalized training, you can be certain that vital functions and tasks are taught in a consistent, precise manner, ensuring that all employees receive the same information. You can, of course, develop your own training in-house, but most organizations rely at least in part on professionally-produced training courses. Depending upon the specific training provided, the value of such consistency may vary from improved productivity to reduced liability for the company.

Streamlining compliance

Consider sexual harassment awareness training, OSHA-mandated safety training, and business ethics: it’s not just that proper training is the right thing to do – training protects your company from potentially devastating lawsuits and fines. A learning management solution helps ensure employees (and you as the employer) are in compliance with job requirements and the law. The software can track certification expirations, courses due, notifications and accreditation requirements, helping maintain strict compliance and protecting both you and your employees.

It makes financial sense

Increased revenue is a common goal of organizations, and investing in employee training to support that goal makes financial sense. For example: The Cheesecake Factory invests an average of $2,000 annually per employee on training. The chain enjoys sales of $1,000 per square foot, almost double the restaurant industry average.

Payroll provider ADP coaches some sales associates on managing virtual teams and time management. Those that participate have an average of 7 percent growth in sales.

Motorola has found that every dollar invested in training can yield as much as a 30 percent gain in productivity within three years, which has helped them cut costs by $3 billion and increase profits by 47 percent.

For more in-depth tips on taking employee learning and development to the next level, check out our Best Practices Guide – 3 Steps to Achieve Talent Development That Drives Organizational Success.

Founded in 1999, Visibility Software, a leading provider of applicant tracking and training management software, has helped thousands of organizations of all sizes solve talent acquisition and talent development challenges. Our two primary flagship software solutions, Cyber Recruiter Applicant Tracking (ATS) and Cyber Train Learning Management (LMS), help clients gain a recruiting and training advantage over their competitors. We offer flexible solutions that can be deployed on-premises or cloud-based, and that operate as a stand-alone solution or interface with Microsoft Dynamics GP, Sage, Abila and several other leading HR and payroll systems. Our solutions eliminate technology barriers so HR can spend more time on higher-value tasks that impact the bottom line. For more information about Visibility Software, visit visibilitysoftware.com.

60 | www.cedmag.com | Construction Equipment Distribution | November 2017

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The

Do/Don’t List

of How to Build Relationships With Your Employees

By Kim Scott

© 2017 Harvard Business School Publishing Corp.

T

he relationships that you form with each of your direct reports are central to your ability to fulfill your responsibilities as a manager. It’s a careful balancing act: You need to care personally, without getting creepily personal; you need to challenge people directly, without creating a vicious cycle of discouragement and failure.

The terms I would use to describe a good relationship between a manager and a direct report are radical candor. How can you build such a relationship with your subordinates? ▶ Don’t focus on socializing. Do listen and care: If the only way you build relationships with your employees is by socializing, one of two bad things will happen: You won’t work enough at work, or your work social obligations will take over your schedule.

Instead, one of the best ways to build a good relationship with your employees is to make sure they feel heard on the job. Make sure you know what your people are thinking. Solicit their feedback and show you care. Set up one-on-one meetings and show that you are listening. ▶ Don’t focus on chitchat. Do focus on feedback: Your employees don’t really want to gab with you about sports or the weather. What they want from their boss is somebody who can help them grow professionally. You’ll build better relationships

by sharing your feedback than by having idle conversation. Praise your employees early, often and in public. Be specific about what they’re doing well and why. ▶ Don’t focus on perks. Do focus on achieving results collaboratively: Extra vacation, free lunches and fabulous office space can feel exceptionally empty if your team isn’t achieving results, if they are achieving results the wrong way or if their contributions to success aren’t recognized. To improve your relationship with the people on your team, take the time to help them nurture new ideas; create a culture of debate for important topics; make it clear who owns decisions and why; ensure that employees have time to execute; and be open to admitting mistakes and learning from them. ▶ Don’t be promotion-obsessed. Do focus on career conversations: Helping employees achieve their career goals will certainly help you build better relationships. Ask your employees about their life stories and dreams for the future.

The best way to build relationships with your employees is to improve how you work together, not to take a break from working.

Listen to your subordinates and offer feedback to help them grow. Achieve results collaboratively and have the kind of career conversations that help each employee take a step in the direction of their dreams.

KIM SCOTT is co-founder of Candor and author of “Radical Candor: Be a Kickass Boss Without Losing Your Humanity.”.

62 | www.cedmag.com | Construction Equipment Distribution | November 2017

advertisers’ index Baseplan North America..................................51 www.baseplan.com Bell Trucks of America.....................................55 www.BellTrucksAmerica.com CDK Global........................................................2 www.cdkglobalheavyequipment.com CDK Global........................................................5 www.cdkglobalheavyequipment.com/voiceconnect.. e-Emphasys Technologies Inc............................1 www.e-emphasys.com Glynn General Corporation.............................13 www.glynngeneral.com Hydrema US Inc...............................................21 www.hydrema.us Kobelco Construction Machinery USA.............31 www.KOBELCO-USA.com LBX Company LLC...........................................29 www.lbxco.com

STATEMENT OF OWNERSHIP MANAGEMENT AND CIRCULATION (Required by 39 U.S.C. 3685) 1.

Title of publication: Construction Equipment Distribution 2.

Publication Number: 0130-160 3. Date of filing: September 30, 2017 4.

Frequency of issue: Monthly 5.

Number of issues published annually: 12 6. Annual subscription price: $79.00 7&8. Location of known office of publication and headquarters:

650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173.

9. Publisher: Martin Cabral, Associated Equipment Distributors,

650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173.

Editor-In-Chief: Sara Smith, Associated Equipment Distributors

650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173.

10. Owner: Associated Equipment Distributors,

650 E Algonquin Rd, Ste 305, Schaumburg Rd, Illinois 60173.

11. There are no known bondholders, mortgagees and other security holders.

12. The tax status has not changed in the past 12 months.

13. Title of publication: Construction Equipment Distribution 14. Issue date for circulation data below: September 2017 15. Extent and nature of circulation: Average No. copies Single issue each issue during nearest to

preceding 12 months filing date A. Total number of copies printed 1,600

1,800 B. Paid and/or requested (outside county) circulation (Form 3526-R) 990

1021 Other classes mailed through the USPS 114

119 C. Total paid and/or requested circulation 1104 1140 D. Free distribution by mail 116 116 E. Free distribution outside the mail 230 250 Total free distribution 346 366 F. Total distribution 1450 1506 G. Copies not distributed 150

294 H. Total 1600

1,800 I. Percent paid and/or requested circulation 76.1%

75.7%

NPK Construction Equipment Inc......................9 www.npkce.com Pettibone........................................................25 www.ARDCOMFG.com Pop Art, Inc.....................................................47 www.POPART.com Prisim Business War Games.............................61 www.prisim.com Sentry Insurance Company....... Inside back cover www.sentry.com Shantui America Corp............. Inside front cover www.shantui.com Terramac.........................................................17 www.Terramac.com XAPT Corporation............................... Back cover www.naxtsolution.com

Not All Technicians Are Created Equal Certify your technicians today!

The AED Foundation’s Certified Technician Program allows technicians to earn a professional industry certification by passing an online technical assessment.

• Show your dealership's technical expertise to customers • Raise the technical bar at your dealership

• Differentiate your dealership from the crowd • Use results to drive your technician reward/ retention program

For more information, call AED at 800-388-0650.

16. This statement of ownership will be printed in the November issue of this publication.

17. I certify that the statements made by me above are correct and complete: (Signed) Martin Cabral, Production Manager, 09/30/16.

November 2017 | Construction Equipment Distribution | www.cedmag.com | 63

>> RISK MANAGEMENT

ERIC STILES

AED PREFERRED PROVIDER

Sentry Insurance’s Tips for Preventing Data Breach Events Some examples of sensitive information include employee Social Security numbers, W2 tax information, bank account information, and customer credit card transactions.

Q: Is my dealership at risk for a data breach?

A: According to the Identity Theft Resource Center, a record 1,093 data breaches occurred in 2016—a 40 percent increase over the previous year. Other statistics suggest data breaches are becoming increasingly common, with business and healthcare sectors targeted most often.

Identifying your vulnerable information

The first step in securing your sensitive and valuable data is to identify what information you’re storing and how it might be compromised.

Your business probably maintains a large amount of information related to your employees, operations, and customers. A portion of it is likely worth more money to criminal hackers.

Some examples of sensitive information include employee Social Security numbers, W2 tax information, bank account information, and customer credit card transactions. Most states have enacted legislation requiring businesses to notify individuals of data breaches involving personally identifiable information. Make sure you’re aware of the security breach notification laws your business is subject to.

The good news is that you can plan and prepare.

As you develop and assess your business’s data assets and procedures, consider the following data security measures: ▶ Collect and store only necessary personal and confidential information. ▶ Implement user access firewalls to protect sensitive information. ▶ Establish a formal sensitive data disposal policy. ▶ Create and regularly update system backups. ▶ Train all personnel with system access on data breach techniques, such as phishing scams. ▶ Require strong user passwords and update them regularly. ▶ Install antivirus software protection and keep it up-to-date. ▶ Create a data breach response plan—identify an incident response team, establish a call tree, and determine which data assets are the most critical and should be secured first.

While this is not a comprehensive list, it should help you get started. Analyzing your exposures can help protect your business from a costly data breach.

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.

64 | www.cedmag.com | Construction Equipment Distribution | November 2017

Have a seat—we’ll steer you right Your insurance company should understand your risks—and your goals.

With Sentry, great things happen when we learn what makes your dealership unique. That’s because we offer you custom insurance and related services—like smart risk management—to help you succeed now and over the long haul. Rely on us to dig in and do the heavy lifting, so you can invest more time bolstering your bottom line.

Right By You

Let’s get the conversation started.

Learn more about how we can help you manage costs and take advantage of opportunities at Sentry.com

Property and casualty coverages and safety services are underwritten and provided by a member of the Sentry Insurance Group, Stevens Point, WI. Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. In New York, individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, NY. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states.

See policy for complete coverage details. In New York coverage provided through policy form numbers: (Life insurance) 585-3000-01, 390-1000 (SLONY), 390-2003-SLONY; (Disability) 685-9000-31; (Dental) 785-7000; (Group Annuity) 840-300(NY); (Individual Annuity) 380-440. Short-term disability insurance is not available in New York.

73-710

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