March 2018
CED
Construction Equipment Distribution Published by AED: Business Fuel for a More Profitable Dealership
The Digital Transformation Is Here Exclusive CED Technology Showcase
n 2018 AED Summit Summit drew more than 1,600 attendees to The Mirage
n Journey to the Top Third-generation heavy equipment manufacturer got start helping with inventory
n Canada’s Major Trade Relationships
Turbulent, but progressing
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.
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aed hr help desk AED’s HR Help Desk allows AED members to get answers to simple questions or many employment-related issues free of charge. Call about any HR compliance or procedural issue, even sensitive personnel situations. Contact Karla Dobbeck at Kdobbeck@askhrt.com or (888) 412-8079.
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contents CED Magazine | March 2018
vol. 84 no. 3
www.cedmag.com
>> FEATURES
18
Construction Dealers Win Big At The 2018 Summit Equipment dealers from across North America got a brief respite from this year’s cold, harsh winter – as well as an event exclusive to the construction industry – at the 2018 AED Summit in Las Vegas on Jan. 15–19.
40
Journey to the Top
28
Technology Showcase Members of the construction equipment industry have little doubt that digital technology is going to transform the industry, according to a recent Associated Equipment Distributors (AED) survey.
Heavy equipment manufacturing is in Chris Thompson’s blood. His grandfather, along with his father and uncle, founded Thompson Pump in 1970 to meet the pumping and dewatering needs of customers in Central Florida. Today, the Port Orange-based company serves more than 1,000 national and international clients.
42
Canada’s Major Trade Relationships
The relationships between Canada and a number of its major international trading partners remain turbulent. However, Ottawa did manage to make important progress on trade deals in the first quarter of 2018, joining the revised Trans-Pacific Partnership, keeping NAFTA talks alive and moving forward, and reportedly considering developing a new approach to dealing with China. March 2018 | Construction Equipment Distribution | www.cedmag.com | 3
contents CED Magazine | March 2018
>> EDITORIAL
vol. 84 no. 3
>>INSIDE
Editor in Chief SARA SMITH ssmith@aednet.org
14 >> Regional Report
Design and Layout KRIS JENSEN-VAN HESTE kjvanheste@gmail.com
Get to know AED’s newest regional manager for Michigan, Minnesota and Wisconsin
Wells Fargo Equipment Finance Inc. invested in industry’s future
Canyons Technical Education Center program earns recognition by The AED Foundation
>> WRITERS Melanie Baravik EquipmentShare Heidi Bitsoli CED reporter Rep. Tom Cole R-Oklahoma
15 >> Donor Profile
16 >> The AED Foundation 20 >> First-Time Attendees
Marcia Gruver Doyle Equipment World
First-time Summit attendees praise speakers, vendors, networking
21 >> The Future
Brian Frederick EquipmentShare
2018 Summit Predicts a strong year ahead
Steve Johnson AED
22 >> Construction Equipment Dealer Expo
Kelsey Keegan Commercial Web Services
Exhibitors hit the jackpot at AED Summit
24 >> Insights From Summit
Megan Mattingly-Arthur CED reporter
Equipment financing turns to flexible usage and service-based models
AED awarded anniversary plaques to more than 20 longtime members during the 2018 Summit
Electronic logging devices and electronic stability control technology
In the rough-cut environment of the heavy equipment shop, female technician Melissa Petersmann holds her own
The economic boost bringing confidence to investors, consumers
Sentry Insurance’s tips for preventing data extortion
Scott McPherson AED Joy Powell Equipment World Theodore Rennenberg DLL 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
26 >> Member Recognition 42 >> Canadian Strategies
44 >> Women in the Workforce 46 >> View from the Hill
48 >> AED Preferred Provider
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 | March 2018
As the official magazine of Associated Equipment Distributors, this publication carries authoritative notices and articles in regard to the activities of the association. In all other respects, the association cannot be responsible for the contents thereof or the opinions of contributors. Copyright © 2018 by Associated Equipment Distributors. Construction Equipment Distribution (ISSN0010-6755) is published monthly as the official journal of Associated Equipment Distributors. Subscription rate – $39 per year for members; $79 per year for nonmembers. Office of publication: 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173 Phone: 630-574-0650. Periodicals postage at Schaumburg, Ill. 60173 and other post offices. Additional entry, Pontiac, Ill. POSTMASTER: Send address changes to Construction Equipment Distribution, 650 E. Algonquin Road, Suite 305, Schaumburg, Ill. 60173.
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>> FROM THE CHAIRWOMAN
DIANE BENCK
A Changing Workforce Is Coming Our Way; Let’s Adapt to the Next Generation It’s important that AED be at the forefront of training programs that will motivate and inspire our future leaders.
As the first chairwoman of AED, I realize that I represent the changing face of our industry. Somehow I survived in a field that was far less openminded than the one that we have today. We may be slower to change than other industries, but change is coming our way in a tsunami whether we want it to or not. The real change is not so much in the acceptance of women or minorities, but in how we are going to have to adapt to the changing workforce that is emerging in our industry. In 2020, there will be over 70,000,000 millennials in our workforce, all replacing baby boomers, who still dominated the crowd at our annual Summit in January. As a parent of a millennial, I’m always struck by how differently she thinks than I did at that age. First of all, from a very young age she stated that her goal was to be an entrepreneur. This is the “Shark Tank” generation where we’ve taught our young people that with a great idea they can make their fortune and not be subject to the corporate America that laid off their parents. Even basic American ideals, like the value of home ownership, were destroyed in their impressionable years. Lifestyle and growth opportunities trump the size of their paychecks. Expectations include career paths at all levels and soft skill/leadership training. So how as an industry are we going to change
6 | www.cedmag.com | Construction Equipment Distribution | March 2018
ourselves to meet the expectations of the next generation of leaders? We might have to make modifications like changing our work environment to that of a more collaborative team, or changing compensation programs to unleash that creative, entrepreneurial spirit. Not only are flexible work environments expected, but so are equal opportunities for women and minorities. We will have to work to inspire our employees to stay with our companies for reasons that go beyond the size of their paycheck. Some studies have reported that millennials leave their jobs after three years, on average. But first and foremost, we will need to put more of an emphasis on education and training within our dealerships that is non-product-related. It’s important that AED be at the forefront of educational programs that will motivate and inspire our future leaders. Even at the technician level, the new certification program introduced by The AED Foundation is a great tool. Our technicians proudly display their JD certifications on their toolboxes. I’ve been rolling my future leaders through some of AED’s leadership programs with great results. I highly encourage you to investigate all of the AED educational programs and make a commitment to put more of an emphasis on training for our industry’s future. Attracting the best and brightest is crucial to the futures of us all.
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>> FROM THE PRESIDENT BRIAN P. McGUIRE
Spring Is The Perfect Time to Grow Your Dealership with AED Technology trends is an ever-changing topic that’s vital for our members to keep up on.
This spring, AED has all the tools you need to grow your business and motivate your employees. In this issue of CED, we’re pleased to provide tools and solutions to all of your dealerships technological needs. We’ll also be sharing upcoming educational opportunities that will help you and your colleagues advance your personal and dealership growth. Technology trends is an ever-changing topic that’s vital for our members to keep up on. We showcase a range of technological tools that our members offer to make your day-to-day life in the dealership easier. With telematics front and center, this issue highlights the impact this important field has had on the industry as a whole and the impact it could have on your dealership. Find out how to utilize this tool to your best advantage. Looking forward to AED’s Membership Directory, this special issue in May will enable you to keep up with fellow dealers, make connections with manufacturers and find the assistance your organization needs from specialized service firms. Since this directory will stay in our members’ hands all year long, it’s important that we have current information on every member – please look for emails from your AED regional manager requesting your updated contact information. Your financial and HR professionals can look
forward to uncorking their potential at the 2018 Financial/HR Symposium in Napa, California. This conference, which is specifically designed to allow finance and HR professionals to address issues impacting the equipment distribution industry, will give attendees the opportunity to take a few days to realign, refocus and reconnect to their careers. The event will offer an ideal time to learn in a new space, network with your peers, meet experts and influencers, and gain new tools for yourself. We will be providing 17 sessions, many of them focused by topic, either financial or HR. But there will also be shared sessions that will give you the opportunity to meet and connect with all those at the conference. Attendees will also be able to continue their education by earning either 12 CPE credits or 10.25 SHRM credits for their time in Napa. Use this conference to build up your team by investing in yourself! We look forward to continuing to provide you the best tools for growing your dealership – through this magazine, through educational opportunities and in many other ways. To learn more about specific tools you’re looking for that AED may be able to provide, please reach out to your regional manager for assistance.
BRIAN P. McGUIRE is president and CEO of Associated Equipment Distributors. He can be reached at bmcguire@aednet.org. BRIAN P. MCGUIRE AED President & CEO
ROBERT K. HENDERSON AED Executive Vice President & COO
JASON K. BLAKE AED Senior Vice President & CFO
>> OFFICERS
>> AT-LARGE DIRECTORS
>> REGIONAL DIRECTORS
DIANE BENCK Chairwoman West Side Tractor Sales Co.
PAUL FARRELL Modern Group Ltd. GAYLE HUMPHRIES JCB of Georgia STEVE MEADOWS Berry Companies, Inc. JAMES A. NELSON Heavy Machines, Inc. MATT DI IORIO Ditch Witch Mid-States DAN STRACENER Tractor & Equipment Co.
MICHAEL LALONDE West Reg.
MICHAEL D. BRENNAN Vice Chairman Bramco, LLC RON BARLET Senior Vice President Bejac Corporation MICHAEL VAZQUEZ VP Membership MECO MIAMI Inc. DAVID PRIMROSE VP Canada Finning Ltd. JOHN C. KIMBALL VP of Finance Kimball Equipment Company WES STOWERS Past Chairman Stowers Machinery Corporation WHIT PERRYMAN Foundation Chairman Vermeer Texas-Louisiana
Westrax Machinery, Inc. MATTHEW ROLAND Midwest Reg. Roland Machinery Co. JOHN SHEARER Rocky Mountain Reg. 4 Rivers Equipment, LLC KAREN ZAJICK Northeast Reg. Norris Sales Co. DAVID PRIMROSE Western Canada Reg. Finning Ltd. COREY VANDER MOLEN South Central Reg. Vermeer MidSouth, Inc. MIKE PARIC Eastern Canada Reg. Joe Johnson Equipment Inc.
8 | www.cedmag.com | Construction Equipment Distribution | March 2018
>> AED INSIDER Diane Benck Installed As Chairwoman at 2018 AED Summit in Las Vegas
AED Welcomes New Executive Officers at Summit
Associated Equipment Distributors (AED) elected Diane Benck to serve as 2018 chairwoman at their annual Summit held in Las Vegas. Benck, vice president of general operations at West Side Tractor Sales in Naperville, Illinois, becomes the first woman to lead AED. She replaces outgoing chairman Wes Stowers, president of Stowers Machinery in Knoxville, Tennessee. “I am honored my colleagues in the industry have put their faith in me, and I am up to the task,” stated Benck. She plans to focus on enhancing educational opportunities for the next generation of equipment technicians along with working to promote AED’s positions with legislative leaders in Washington. “AED has really done a great job of enhancing our programs and offering new educational opportunities, and I want to continue that trajectory,” said Benck. “I want to continue to offer top-notch education for the next generation entering the industry.“I think staying on top of advocacy and continuing to enhance our government affairs program has always been a prime objective for me with AED and definitely will be during my chairmanship as well,” Benck concluded. “We are very pleased to have Diane taking the reins at AED. Her experience and leadership skills will help our Association maintain its position as the leader in the equipment distribution industry,” stated AED President and CEO Brian P. McGuire. “Based on the comments out of Washington, D.C., recently in regard to an infrastructure bill, it will be a busy year for our Association. We are glad to have Diane at the helm as we expand our reach in government affairs, ramp up our training offerings and continue to grow The AED Foundation.” Along with her two brothers, Diane Benck owns West Side Tractor Sales Co., a John Deere dealership that covers parts of Illinois, Indiana and Michigan. They also own a specialized company that manufactures maintenance of way equipment for the railroad industry. She functions as the general operations manager of both companies. Benck has a master’s degree and pursued other career paths until her late 20s, when she found that being part of the family business was more rewarding. In addition, Benck has served several terms on the John Deere dealer board, twice as president.
Michael Brennan, AED Vice Chairman from Brandeis Machinery & Supply Company in Louisville, Kentucky
Diane Benck, AED Chairwoman from West Side Tractor Sales Co. in Naperville, Illinois
Ron Barlet, AED Senior Vice President from Bejac Corporation in Placentia, California John Kimball, AED Vice President of Finance from Kimball Equipment Company in Salt Lake City, Utah
AED’s Newest Vice Presidents: David Primrose from Finning Ltd. in Surrey, British Columbia, Canada Michael Vazquez of MECO Miami Inc. in Miami, Florida, who will serve as Vice President of Membership
New AED At-Large Directors: Matt DiIorio from Ditch Witch Mid-States in Columbus, Ohio, and Dan Stracener from Tractor & Equipment Co. in Birmingham, Alabama
New AED Regional Directors: Corey Vander Molen of Vermeer MidSouth Inc. in Jackson, Mississippi, will be serving as AED’s South Central Regional Director Mike Paric of Joe Johnson Equipment Inc. in Innisfil, Ontario, Canada, will be serving as AED’s Eastern Canada Regional Director
Joining The AED Foundation board in 2018 as new directors: Darren Grahsl, Senior Vice President at BOKF Equipment Finance Inc. in Dallas, Texas Brett Reasner, Dean of Transportation & Natural Resources Technologies at Pennsylvania College of Technology in Williamsport, Pennsylvania Thomas Casey, Vice President Commercial Leader America’s Region at DLL Group in Wayne, Pennsylvania Kenneth Taylor, President at Ohio CAT in Broadview Heights, Ohio March 2018 | Construction Equipment Distribution | www.cedmag.com | 9
>> AED INSIDER The AED Foundation’s Annual Gala Raises Record $100,000 in Support of Career and Technical Education Foundation Awards and Live Auction Round Out Successful Gala The AED Foundation has announced the final tally for their annual Fundraising Gala held at Casa de Shenandoah in Las Vegas: a record-breaking $100,000. The Gala, hosted by Platinum Sponsor Wells Fargo Equipment Finance, Gold Sponsor Sentry Insurance and Silver Sponsors BOKF Financial and Volvo Construction Equipment North America, featured a meet-and-greet with Las Vegas legend Wayne Newton. Funds raised will support The AED Foundation-sponsored career and technical education programs and cutting-edge research on workforce issues. “I’d like to thank all of our sponsors, board members, host committee and other donors who made this event possible,” said Foundation Chairman Whit Perryman. “The AED Foundation has a critical mission to ensure the future success of the heavy equipment industry, and your contributions are deeply appreciated.” The Foundation focuses on three primary areas: ▶Accreditation: The AED Foundation programs set the national criteria for construction equipment technology college programs. ▶Career Promotion: The AED Foundation programs offer not just job training, but long-term career pathways and continuing education. ▶Research: The AED Foundation funds the research that backs up its claims on the importance of workforce development and
shares that data with legislators, educators, the media and other stakeholders. The Gala also afforded The AED Foundation the opportunity to recognize key leaders within the organization. ▶The LESTER J. HEATH III AWARD, given in honor of Lester Heath, the first president of The AED Foundation, to an individual demonstrating outstanding contributions to The Foundation through involvement in and support of Foundation activities including training, accreditation and workforce development, was given to AED Board Member John Crum, senior vice president of Wells Fargo Equipment Finance. ▶The FOUNDATION CHAMPION AWARD, given in recognition of distinguished service or merit of a manufacturer or service provider that has provided significant contributions to the workforce goals of The AED Foundation, was given to John Deere Construction and Forestry Division and accepted by AED board member Jason Daly, director of consumer product support at John Deere. ▶The FOUNDATION PARTNER AWARD, given in recognition of distinguished service or merit of a manufacturer or service provider that has provided significant contributions to the professional education goals of The AED Foundation, was given to Volvo Construction Equipment North America and accepted by Ryan Sherwood, vice president of retail development at Volvo.
Realign, Refocus, Reconnect at the 2018 Financial/HR Symposium Take time to focus on your career and improve your skills by attending the 2018 Financial/HR Symposium. This conference is specifically designed for finance and HR professionals to address the issues impacting the equipment distribution industry. What will you gain by attending? See below to find out! Learn in a new space. Engage in impactful education sessions at the Napa Valley Marriott Hotel. Network with your peers. 87 percent of last year’s attendees found networking to be one of the most valuable parts of the conference. Meet experts and influencers from 17 sessions, either shared or financial or HR focused. Gain new tools, including 12 CPE credits and 10.25 SHRM credits that are available for this conference. Register online today at bit.ly/2018symposium 10 | www.cedmag.com | Construction Equipment Distribution | March 2018
>> INDUSTRY NEWS Harris and Rush Promoted to Chief Operating Officer Roles Employee-Owned Companies Inc. (E-O-C Inc.), the holding company that owns and operates Vermeer TexasLouisiana and Compact Construction Equipment Inc., has announced the promotion of Brian Harris and Jason Rush to chief operating officer roles. Harris has been with the company since 2000 and previously served as vice president of the southern region. Before that, he held positions as branch manager and sales manager for South Texas. Brian oversees sales and operations for the Vermeer and Bobcat business in the Austin, Houston, San Antonio, Corpus Christi, Kerrville and Rio Grande Valley markets. Rush has been employed since 2000 and was promoted from his role as vice president of the northern region. Jason has also held positions in the company as a sales manager and sales representative. He oversees sales and operations for Vermeer in the Dallas/Ft. Worth, Kilgore, Waco, Midland, Lubbock, Amarillo, and south Louisiana markets, as well as their Mexico division.
Brian Harris
Jason Rush
“Both Brian and Jason have been instrumental in the growth of our organization over the last several years,” says Whit Perryman, CEO. “As we continue to look for ways to better serve our customers, their leadership and experience will be key in our efforts.” Vermeer Texas-Louisiana operates 12 locations throughout Texas and south Louisiana and is the exclusive distributor of Vermeer equipment in the region. Compact Construction Equipment Inc. is the authorized dealer for Bobcat equipment in south Texas and operates five locations. E-O-C Inc. has also promoted Kelli Meyer to vice president of communications.
In this role she oversees marketing and communication efforts for both the Vermeer and Bobcat brands. Vermeer Texas-Louisiana is the authorized dealer for Vermeer equipment in Texas and south Louisiana, with twelve locations across the region. Vermeer TexasLouisiana provides dedicated sales, parts and service support for customers in the tree care, landscaping, wood waste and organic recycling, rental, underground construction, and surface mining industries. For more information on Vermeer Texas-Louisiana, log on to www. vermeertexas.com. Compact Construction Equipment Inc. is the authorized dealer for Bobcat equipment in south Texas, with five locations across the region. CCE Inc. provides dedicated sales, rental, parts and service to customers in the construction industry. For more information on Compact Construction Equipment Inc., log on to www.bobcatcce. com. For more information, please contact Kelli Meyer at kmeyer@eocinc.com or 972255-3500.
Komatsu To Acquire Quadco & Southstar Operations On January 26, 2018, Komatsu Ltd. (President & CEO: Tetsuji Ohashi) signed an agreement to acquire from Prenbec Equipment Inc. (CEO: Charles MacLennan), a company based in Quebec, Canada, the Quadco and Southstar forestry attachment operations, excluding the forestry equipment businesses of Tanguay and Forespro delimbers. The acquisition will be made through a wholly owned subsidiary of Komatsu in the United States and is expected to close in February 2018, subject to completion of the closing conditions. By adding the Quadco felling heads and Southstar large harvester heads to the existing lines of Log Max and Komatsu small and medium-sized harvester heads, Komatsu will become an industry leader in forestry attachments. This will allow Komatsu to offer its customers a full range of forestry attachments. Quadco and Southstar will continue to operate as independent companies within the Komatsu group following the completion of the acquisition and will maintain their existing sales networks. In order to offer improved value to customers, a forestry attachment division within Komatsu Forest AB will be formed, which will manage the Quadco, Southstar, and Log Max brands. Komatsu anticipates that this acquisition will have no material impact on its consolidated business results and performance for the current fiscal year ending March 31, 2018.
1. Background and Objective of the Acquisition In April 2016, Komatsu launched a three-year mid-range management plan (2016-2018) under the slogan “Together We Innovate GEMBA Worldwide –Growth Toward Our 100th Anniversary (2021) and Beyond.” In line with this plan, Komatsu decided to make this acquisition and expand its forestry attachment business. Forestry attachments are classified into two categories: the Cut to Length (CTL) method, which involves the use of a harvester and forwarder and is popular in Europe, and the Full Tree Length (FTL) logging method, which involves the use of a felling head attached to a base machine and a skidder, which is popular in North America. The global market for forestry machines, including forestry attachments, is continuing to grow at a rapid rate. It is anticipated that there will be particular growth in the North American market, where FTL is the dominant method. 2. Method of the Acquisition Komatsu will acquire the forestry attachment operations of the Quadco and Southstar brands through a wholly owned subsidiary. March 2018 | Construction Equipment Distribution | www.cedmag.com | 11
>> INDUSTRY NEWS Cemen Tech Leverages Automated Functionality for 2nd Generation C Series Volumetric Mixers; Offers 24-Hour Parts in U.S. Cemen Tech, a global leader in the manufacturing of concrete mixers, announces the next generation of its C Series volumetric concrete mixers with the introduction of the newest C60 model. This includes enhanced ACCUPOUR™ capabilities and new Automated Gates as a standard option. The company has also announced a new 24-hour parts commitment for customers in the contiguous United States to ensure optimal uptime and productivity across its entire product offering. ACCU-POUR is the nerve center for the C Series volumetric concrete mixer with one-button operation using the AP-Touch™ control panel, allowing for consistently accurate mix designs. Preprogrammed mix designs simplify labor by reducing the need to have concrete experts on staff and onsite. Information is stored electronically for each job and mix to continually improve productivity and profits, and to lower total operating costs. The new Automated Gates technology makes the C60 fully computerized and continues to reduce operator error by syncing the mix design with the appropriate gate setting for material flow. An operator no longer needs to worry about manually changing the amount of material flow through the gates, as it is done automatically based on the mix design selection on the AP-Touch screen. The operator simply selects the mix design, and the ACCUPOUR technology automatically aligns the gate settings with the correct mix design. This eliminates wasted material, time and money by ensuring they have the exact mix design every time. “The C Series ACCU-POUR technology means a faster onboarding process and less chance of error for operators, as well as simplified labor demands. The C60 pairs ease of use with the most sophisticated technology possible for volumetric mixers,” stated Mark Rinehart, director of sales and marketing, Cemen Tech Inc. “We continue to engineer the C60 with technology and innovation that sets it apart from other solutions in the industry. The C60’s complete automation, ease of use and ability to be used for almost unlimited applications is a
game changer for this industry.” New 24-Hour Parts Guarantee Cemen Tech has also reinforced its commitment to customer uptime with the launch of a new 24-Hour Parts program for U.S. customers in the lower 48 states. “A dedication to 24-hour parts gives customers the support they need, ensuring that the parts required to keep their businesses going are there when they need them,” stated Connor Deering, CEO/ president, Cemen Tech Inc. “Our goal is to help customers maximize uptime and increase productivity. Getting parts in a timely fashion is critical to our customers; they should not have to wait on us.” Cemen Tech Inc. has almost 50 years’
12 | www.cedmag.com | Construction Equipment Distribution | March 2018
manufacturing and engineering experience in the volumetric mixing industry. As the industry leader, the company strives to provide the highest quality concrete mixers to its customers. Cemen Tech currently operates in over 50 countries, services mixers across the globe, and supplies equipment to the United States military. Cemen Tech believes that people, businesses, and communities around the world should have the infrastructure to access clean water, to transport goods and services, and to build reliable housing. Their products provide the foundation and stability to meet the needs of a growing world in an environmentally conscious way. www.CemenTech.com
>> PRODUCT PREVIEW Pettibone Introduces Next Gen T944X Telehandler With Industry-Exclusive Traversing Boom The new Pettibone Traverse T944X is the industry’s only new telehandler with an extendable, traversing boom that moves loads by traveling horizontally. Up to 70 inches of horizontal boom transfer allows users to precisely and safely place loads at full lift height through tight openings without having to coordinate multiple boom functions. With the Traverse, the specified lift height of 44 feet, 6 inches is nearly identical to the 44-foot landing height. This stands in contrast to a traditional fixed boom pivot, where the true landing height is generally several feet less than the advertised lift height, as operators must account for withdrawing the forks out of the load with enough rearward travel for the fork tips to clear the landing zone. The traversing boom allows for maximum forward reach of 35 feet, 10 inches. The T944X builds upon Pettibone’s traditional rock-solid design, delivering the same ruggedness and dependability while providing several new design enhancements. The telehandler is powered by a 74-horsepower Cummins QSF 3.8 Tier 4 Final diesel engine that features a DOC muffler and requires no diesel exhaust fluid (DEF). The side pod engine offers easy service access while allowing excellent curbside visibility and ground clearance of 18 inches. A 117-horsepower option is also available. Drivetrain and axles have been optimized to provide greater tractive effort with minimal trade-off on top end speed. A pintle hitch mount adds versatility for towing trailers. Built for use on rough terrain, the unit offers full-time 4-wheel-drive with limited-slip front axle differential. Tight steer angle capability provides an efficient turning radius of 14 feet, 1 inch. The Dana VDT12000 Powershift transmission offers three speeds, forward and reverse. Pettibone’s leading hydraulics continue to deliver exceptional controllability and overall operating feel, while enhancing efficiency and cycle speeds. Cylinder cushioning has been introduced to dampen the end of strokes – both extending and
retracting – to avoid the wear and tear of hard, jarring stops, while also helping prevent the potential spilling of a load. The telehandler also uses a single lift cylinder that improves operator sight lines, and has twin hydraulic lines for tilt and auxiliary plumbing. The T944X offers maximum lift capacity of 9,000 pounds with its newly designed boom. Featuring formed boom plates and less welding, the structure offers greater strength while reducing weight. The design also minimizes boom deflection for better control and accuracy when placing loads. Boom overlap has been nearly doubled from previous models to provide smoother operation and reduce contact forces on wear pads, thereby extending service life. A bottom-mounted external extend cylinder further reduces the load on wear pads by up to 50 percent. This cylinder location also provides greatly improved service access to internal boom components. A single extension chain eliminates the need to balance dual chains. Another new introduction is fastener-less wear pads for simplified service. The operator cab maintains Pettibone’s ergonomic seat, pedal, joystick and steering wheel positions. A new analog/LCD gauge
cluster comes standard. An optional 7-inch digital display with integrated back-up camera is also available. The cab also offers enhanced climate control, flat bolt-in glass, split door design, openable rear window, USB accessory plug, lockable storage under the seat, and water-resistant components for easy interior wash-down. All-steel fuel and hydraulic tanks are built to resist damage. The 30-gallon fuel tank offers ample volume for a full day’s work at 100 percent load, and the lockable fuel-fill is in a clean, accessible location. Other features include non-tensioned boom hoses, split-system electrical circuit panels, a 12-volt accessory plug in the engine bay, and heavy-duty bright LED lighting. Other options include a sling hook for additional load security and a wide variety of attachments. Pettibone/Traverse Lift LLC is part of the Pettibone LLC Heavy Equipment Group. Founded in 1881, Pettibone has been recognized as the industry leader in material handling equipment since the company revolutionized the industry with the first forward-reaching, roughterrain machines in the 1940s. For more information, call 906-353-4800 or 800-4673884, or visit www.gopettibone.com.
March 2018 | Construction Equipment Distribution | www.cedmag.com | 13
Great Lakes: New Regional Manager for Michigan, Minnesota and Wisconsin As your new Great Lakes Regional Manager, I wanted to let you know about what we’ve been doing and what we have planned for the region. I’ve been with AED for four years now, mostly handling national public relations as well as outreach and marketing for The AED Foundation. When I recently decided to move to northern
REGIONAL REPORT
Scott McPherson
Wisconsin, it only made sense for me to assume additional responsibilities as regional manager for Michigan, Minnesota and Wisconsin, three states I have spent a lot of time in and am very fond of. I am hoping to build on the great foundation laid by Mike Dexter, so I look forward to meeting you if I have not already. In addition to working with AED members on whatever they need to grow their businesses through outreach, education and workforce development, I intend to focus on two key areas, the first being our outstanding community college accreditation program. Although we have some great schools already engaged in the region, we are looking to add programs at several more schools. The first two likely to come on board in 2018 are Hibbing Community College in Hibbing, Minnesota, and Gateway Technical College in Kenosha, Wisconsin. Last fall, I made a trip to Hibbing and met with their diesel technology instructor and some of their students. I can tell you they have a great program that can serve the entire northwest corner of Minnesota. I can’t wait to add them to our roster of AED Foundation-accredited schools. My other area of focus will be scheduling congressional visits
with AED member companies. Nationally, AED set up more than 40 visits last year. These visits are a great way to highlight the importance of what you do and to demonstrate to your member of Congress just how critical infrastructure projects are. In October we had a very successful visit with Rep. Jack Bergman at Road Machinery & Supplies in Negaunee, Michigan. Rep. Bergman is a very impressive leader. Whether serving as a three-star general in the Marine Corps, carrying passengers safely from one destination to another as a pilot for Northwest Airlines, or starting his own business in the medical equipment field, Rep. Bergman has always been committed to serving others. He’s mission- and results-motivated, and as representative of Michigan’s First Congressional District, that means supporting policies and practices that work for Michiganders. Bergman met with workers from Road Machinery & Supplies and toured the facility, speaking with workers about how he could help through his role in Congress. “We know that when we build a road we’re going to need to maintain the road, and that’s ongoing,” said Bergman. “So companies like this are part of the future – with their technology and their understanding, we’re going to be able to get the infrastructure we need at a cost we can afford.” Jon Anderson, vice president and general manager of Road Machinery, stated, “It was great to host Congressman Bergman at our facility in Negaunee. We really appreciate him taking the time to learn more about our industry, and we value the relationship we’re building with him.” Road Machinery & Supplies Co. is a distributor of construction and mining equipment with sales and support operations throughout the Upper Midwest. They are a multiline dealer, representing the best brands of construction equipment in the industry, backed up with a commitment to employee training and service excellence. I’ll look forward to seeing you as I move around the region. In the meantime, please don’t hesitate to contact me if you need anything.
SCOTT MCPHERSON is AED's Upper Midwest Regional Manager. Reach him at smcpherson@aednet.org. 14 | www.cedmag.com | Construction Equipment Distribution | March 2018
▶ THE AED FOUNDATION DONOR PROFILE
Wells Fargo Equipment Finance Inc. Invested In
INDUSTRY’S FUTURE Supporting The AED Foundation helps build skilled workers for a future that needs them
By Heidi Bitsoli One of the largest finance companies around sees the value of investing in the future of the construction industry. Wells Fargo Equipment Finance Inc., with nearly $50 billion in assets under management, is one of the top-affiliated equipment leasing and finance businesses based in the U.S. and Canada. It provides loans, leases and financing options for just about any construction industry need for its 325,000-plus customer base, which includes dealers, manufacturers, municipalities, end-user borrowers and commercial bank customers. “We provide vendor financial services, and we go to market in many ways,” says John Crum, senior vice president of the Pittsburgh-based firm. “We market to users of construction equipment, and we market to dealers to help finance. We help equipment manufacturers and provide financing as well.” Wells Fargo Equipment Finance (WFEF) has also been involved with The AED Foundation for many years. Crum has been on the Foundation’s board of directors since 2010. A healthy construction industry benefits builders, clients and financiers alike, he says. As a result, Crum says WFEF is on board with advancing the industry, in particular from the angle of training new skilled talent, because of the consistent need for more workers. “One of the real shortfalls we have (in construction) is the recruitment and training of qualified employees,” Crum says. Professional education, technicians and dealer staff all suffer from a need for more expertise in terms of shaping and advancing the future of the industry. That need is there at virtually all the dealerships WFEF associates with, Crum adds. “They have a hard time finding technicians and mechanics to fund dealerships. There’s a real shortfall.” Hundreds, if not thousands, of unfilled positions are waiting for the right candidate to assume responsibility. “These are good-paying jobs, too.” Building up the trained worker base today ensures a solid present and a brighter future for the industry. It’s been well documented how the skills gap slows industry
growth. A study prepared by The AED Foundation, with the help of the College of William & Mary, cited finding qualified labor as the single biggest challenge the industry faces and estimated that the inability to fill these positions could cost the industry over $2.4 billion in lost earnings each year. That shortfall means potentially lost customers, inhibited growth, and inability to satisfy client demands. As a result, supporting The AED Foundation is a solid move for WFEF. “We think the Foundation is the best place to service and sell 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, Wells Fargo Equipment Finance, for investing in the future of our industry! To contribute to The AED Foundation annual campaign, visit bit.ly/2018aedfcampaign.
those needs. We’re pleased with the research the Foundation has done in the last couple years,” Crum says. “They’re putting a real dollar value behind it.” WFEF attends the annual Summit. “We also attend executive forums and local groups, whether informal or otherwise. We host local dealers and talk about issues.”, Crum says. “We partake in AED training directly, sending our teams to war games. We put a lot of people in our organization through that. We want our dealers to experience and network and get a feel for challenges in real time. “We participate in educational aspects and donate and take part as members,” Crum continues. “In terms of value it’s the one source that advocates for legislation (both tax and regulatory reform). The AED Foundation is an effective advocate.”
A study prepared by The AED Foundation, with the help of the College of William & Mary, cited finding qualified labor as the single biggest challenge the industry faces and estimated that the inability to fill these positions could cost the industry over $2.4 billion in lost earnings each year. March 2018 | Construction Equipment Distribution | www.cedmag.com | 15
Canyons Technical Education Center Program Earns Recognition by The AED Foundation By Steve Johnson Congratulations to faculty and staff at Canyons Technical Education Center, Sandy, Utah, on achieving AED Foundation Recognition of the Heavy Duty Mechanics/ Diesel Program. This is the second high school in the nation to be recognized by The AED Foundation. The Center is a part of the Canyons School District in Sandy, Utah. The Foundation appreciates the time, commitment and resources invested to educate students interested in careers in diesel equipment technology. Mr. Ken Spurlock is principal at the Center, Ms. Janet Goble is CTE director, and Mr. Gary Snow is the program instructor. The sponsoring college program for this Recognition is The AED Foundation Accredited Diesel Systems Technology Program at Salt Lake Community College, Salt Lake City, Utah, with Mr. Bill Kleman, assistant professor, serving as The AED Foundation liaison with the high school. Mr. Kleman noted, “The Salt Lake Community College Diesel Program has had a long-standing relationship with the Canyons Technical Education Center. SLCC offers an eightcredit-hour concurrent enrollment program to those students who pass CTE’s diesel program. We have a number of their students that continue on to the SLCC diesel program and then on to a great career as a diesel technician.” Secondary or high school technical programs become AED Foundation Recognized by meeting technical standards that (a) are locally developed and mutually agreed to by the secondary school, the local sponsoring AED Foundationaccredited college program, and industry stakeholders, (b) are derived from and are a subset of AED Foundation national technical college standards, and (c) provide a rational and seamless progression from secondary to college technical education. Goble commented on the value of AED Foundation Recognition to the Heavy Duty Mechanics/Diesel Program: “We are thrilled that our district’s diesel program has received The AED Foundation Recognition. Not only does it validate a terrific program, it also acknowledges the hard work of our instructor, Gary Snow, in making the coursework valuable for students.” Added Snow, “I am excited about
this wonderful opportunity that being associated with AED brings to our program and our district. It truly allows us to better prepare our students for their future and their continuing education through Salt Lake Community College. And it helps to show our commitment to the Utah Diesel Technician Pathway (UDTP) that has been so wonderful to us here at Canyons School District! We want to thank everyone for helping us achieve this exciting new development for our program and look forward to our new partner as we continue to strive to develop our CTEC students to be productive, responsible, engaged, professional, and successful students!” The AED Foundation is proud of its affiliation with this outstanding Heavy Duty Mechanics/Diesel Program at Canyons Technical Education Center and with many
From left are Ken Spurlock, Canyons Technical Education Center principal, Janet Goble, CTE director, and Gary Snow, instructor. CTEC is located in Sandy, Utah, and is the second high school in the nation to earn Recognition status from The AED Foundation.
other Foundation-affiliated career and technical schools. If you are wondering where your next generation of qualified equipment technicians will come from, and are interested in working with your local technical college or high school, contact Steve Johnson at The AED Foundation for more information.
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LAS VEGAS, NEVADA
JANUARY 15-19, 2018
Construction Equipment Dealers Win Big at the
2018 AED Summit in Las Vegas
By Karen Algeo Krizman quipment dealers from across North America got a brief respite from this year’s cold, harsh winter – as well as an event specifically for construction equipment distributors - at the 2018 AED Summit in Las Vegas on Jan. 15–19. The Summit drew more than 1,600 attendees to The Mirage on Las Vegas’ infamous Strip, where they were able to witness Diane Benck take the helm as AED’s chairperson for 2018 – the first woman ever to hold the position. The Summit also was a chance to network with peers and gather information from the many exhibitors, educational sessions and guest speakers. “It’s always informative,” explained Jeff Simonson, vice president of Oregon Tractor & Equipment Co. “We go for several reasons. One, we like CONDEX to see what new vendors are there. This year was bigger than past events, which brought a nice touch. It’s also good to network with other dealers you haven’t seen for a while, compare war stories and get advice for different ways to do business.” Among the many networking opportunities this year were The AED Foundation’s Fundraising Gala and auction held at Wayne Newton’s estate on Tuesday night (the event raised a record $100,000), the Summit Celebration in CONDEX on Wednesday evening, and dinner with Leon Panetta, who served as the director of the CIA from 2009-2011 and ran the operation that brought Osama bin Laden to justice. He was an influential political strategist for two U.S. Presidents, former Secretary of State and a congressman for 16 years. In addition to Panetta, this year’s featured speakers included political commentator and radio talk show host Laura Ingraham and Michael Dominguez, chief sales officer for MGM
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Michael Dominguez of MGM addresses AED members. Opposite: Wayne Newton with members at The AED Foundation gala. 18 | www.cedmag.com | Construction Equipment Distribution | March 2018
LAS VEGAS, NEVADA
“That’s the value and the beauty of going to something like this. It’s not just the speakers. It’s the networking and picking up those things that will help us be a better dealership. It’s valuable on so many levels.” — Rebecca Patrick Intermountain Bobcat
JANUARY 15-19, 2018
Resorts International. Dominguez, in particular, drew rave reviews from many in the audience. “I really liked Dominguez’s presentation,” said Ryan Strand, division head of Bobcat of the Rockies in Denver. “His conversation about the culture and change and handling it was, for me, spot on.” Attendees also had more than 30 dealerspecific educational seminars to choose from, with a wide range of topics including economic forecasting, protecting dealerships from cyber attacks, the latest in equipment financing trends, strategic planning, talent management, and how to effectively use technology to service equipment. With the new administration in Washington, D.C., having just completed its first year, AED provided an update on legislative news affecting construction equipment dealers and manufacturers. In addition, during one of the morning sessions, AED’s inaugural class of graduates from its
Leadership Development Institute (LDI) was recognized, which was just one of the reasons Rebecca Patrick, vice president of Intermountain Bobcat in Utah, paid a visit to Sin City. “Steve Jackman, who is a wonderful up-and-coming vice president, is in the graduating class,” she said. “I wanted to be there to support him.” Although she was only able to attend a portion of the Summit, Patrick also was on hand to support Gerard Spencer, a new manager at Intermountain who, along with Jackman, was there for the entire Summit. Both Jackman and Spencer later shared the information they garnered from the event with their fellow Intermountain Bobcat managers during a meeting back in Utah. “That’s the value and the beauty of going to something like this,” Patrick said. “It’s not just the speakers. It’s the networking and picking up those things that will help us be a better dealership. It’s valuable on so many levels.”
March 2018 | Construction Equipment Distribution | www.cedmag.com | 19
LAS VEGAS, NEVADA
JANUARY 15-19, 2018
First-Time Summit Attendees Praise Speakers, Vendors, Networking By Megan Mattingly-Arthur ssociated Equipment Distributors held its 2018 Summit and CONDEX event in Las Vegas in mid-January and, while many there were repeat attendees, there were quite a few new faces in the crowd. Some were there for the very first time, while others, like Patrick Fisher – vice president of Sonsray Machinery, an authorized Case CE distributor with more than a dozen locations in California, Oregon, Washington and Nevada – were returning to Summit after nearly a decade of absence. “We were glad to be back,” said Fisher. “It’s always good to see other dealers and manufacturers, there are good meetings – we always enjoy it.” Alina Alvarez is marketing campaign manager for TARGIT, a business intelligence and analytics decisionmaking platform with software specifically designed for the heavy equipment industry. She attended Summit for the first time, though it was her company’s second year as a CONDEX exhibitor. “My boss was pleased with the results from the first year, so we decided to attend this year again,” Alvarez said. “My favorite thing about the Summit was the interaction with the people who stopped by our booth and seeing how engaged they were with our demos.” Alvarez highly recommends the event to anyone who might be considering attending next year: “If you want to reach the decision makers of the industry, the AED Summit is the place to go.” Vice President of Product Support, Nate Rutter, was one of a group who attended the AED Summit from Power Motive Corporation, a Denver-headquartered equipment dealer with locations in both Colorado and Wyoming. “We really enjoyed speaking with the vendors out on the floor; we picked up a couple of gems there that we’re investigating further,” said Rutter. “The event was well organized: there was lots of literature, everything was on time and easy to understand, it was a very good venue, and the locations of the vendor floor and educational classes were convenient to each other.” Doug Stone – president of Stone Equipment Company, a dealer that serves clients in Alabama, Georgia, Mississippi, Tennessee and Florida – wasn’t even an AED member when he first heard about Summit. He quickly decided it was time to join and take advantage of the Association’s educational and networking opportunities. “I was asked by several vendors if we were coming to the AED Summit, and at the time we were not even AED members,” Stone said. “I decided it was time; we needed the exposure to new vendors and lenders – and we needed the education also. We had a lot of
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meetings set up and made some really great contacts. We also really enjoyed the speakers.” Jeff Hayer, director of service for California dealer Bejac Corporation, also enjoyed the speakers at this year’s AED Summit. He decided to attend after learning about the event during a leadership conference. “My favorite thing about the Summit was the speakers – they were really interesting,” Hayer said. “I also went to two educational
breakouts that were very impressive. The whole event was fun and informative.” Ben Garton, chief marketing officer for Garton Tractor, a California-based Kubota and New Holland dealer, also learned about the 2018 Summit after attending (and enjoying) AED’s Leadership Conference. “We’ve been trying to be more engaged with AED,” Garton said. “We started with the Leadership Conference, which is really worthwhile, but I actually liked Summit even better. The trade show was really neat, it was nice seeing other vendors, it was a great atmosphere, and I really enjoyed socializing with people I might normally be in competition with. We had a group of three, so we were all able to break up and attend classes that pertained to our job function and then meet back up for the social activities.” Garton plans to attend the event again in the future, along with his wife: “We’re definitely planning on going again,” he said. “My wife loved the event. There was a lot for her to do and see, and it was neat for her to be exposed to our industry and have such a great time.” The 2019 AED Summit is scheduled for February 4-7 in Orlando, Florida. For more information on upcoming AED events, visit www.aednet.org or connect with AED on Facebook, Twitter, YouTube, Google+ and LinkedIn.
LAS VEGAS, NEVADA
JANUARY 15-19, 2018
2018 Summit Predicts Strong Year Ahead By Marcia Gruver Doyle and Joy Powell Attendance at the Associated Equipment Distributors meeting serves as a strong indication of how good – or bad – dealers are feeling about the year ahead. The annual meeting just concluded in Las Vegas was no different: Attendance was up, as were first-time CONDEX exhibitors. The cherry on top: Several in attendance at AED Summit – both dealers and manufacturers – said that 2018 sales were starting off strong. Times are good right now, but boy, most of us in this industry can remember when they were awful. For example, compare the attendance list of the just-past AED event to that of the 2009 or 2010 program. During the time when the Great Recession was still the major topic of discussion, many dealers had only one representative attending the event … if they attended at all. This year, several dealers sent four or more representatives. The survivors are starting to be the thrivers, as you’ll hear in that best of all information-gathering setting: the table top. Everyone’s got to eat; eating relaxes people, and the stories start to flow. We heard about dealers converting from being an OEM representative to selling used equipment only, and doing good business. About savvy dealer principals grabbing opportunities to take on OEM territories in surrounding states, and creating a unique corporate culture in the process. About a manufacturer forming young-leader dealer peer groups, intent on getting the communication – and ideas – flowing within this critical component of its brand’s future. Since Equipment World started its weekly Big Iron Dealer newsletter more than a year ago, our editorial staff has placed special emphasis on the Summit’s educational sessions. Ranging from the impact of the new tax reform legislation to how to recruit and keep young leaders, these sessions gave us several nuggets, including the following: ▶Daniel Fisher, AED’s vice president of government affairs, led a discussion on what the 2018 tax code will mean to dealers: “There’s some uncertainty in this bill, but overall it’s good for distributors, their customers and manufacturers.” Other insights: A provision providing a fairly significant deduction – 20 percent – on pass-through income for businesses was key because a substantial number of AED members are structured as pass-throughs. Construction equipment dealers will be able to take advantage of full expensing, for both new and used equipment, under the new legislation. ▶Jill Berg, Spherion Staffing, on the emerging workforce: “Ten thousand Baby Boomers are now retiring every day. Millennials are now 50 percent of the workforce, and one third are now managers. Referrals continue to be the most effective source for attracting talent.” Other tips: Use Facebook to show off your culture, and make it fun. Talk about your culture in the interview process. Once you have a new employee on board, train them in problem solving,
interpersonal relationships and how to understand and interpret data. ▶Larry Kaye, Script International, on the case for hiring a rental manager: “Rental equipment is an asset, and one way to be more profitable is to make your assets work harder. You cannot get this through new or used machine sales, nor will you be able to sell your way to more gross profit.” Additional tips: Rental fleet utilization is usually not tied to the pay of a sales manager, who’s more concerned with sales volume and margins. Detail what you would have a rental manager be responsible for, and have him work in concert with your sales manager. ▶Troy Harrison, Troy Harrison International, on the importance of dealer salespeople asking good questions: “Product knowledge is not king today; it’s customer knowledge. One of the most important skills in selling is the ability to ask great questions. One of the best ways to do this is to ask open-ended questions, that cannot be answered by a yes or no. The worst question is the one you don’t ask.” Other tips: Use both big-picture questions (where the company has been, how it plans to grow, current goals) and small-picture questions (who do they buy from, how well are they being serviced, what kind of technical advice do they get?). ▶David Kohar, Edgewater Fullscope, on customer relationship management: “Dealers only have so much time in front of customers to make a difference, so do something awesome. Customers want the dealer to know enough about their business so that they can put it into an ROI context. They want to know how what you offer is going to help them run their business better. Customers want someone to actually teach them something. By taking a 360-degree account management view, you’ll not only have their profile information, but all of their contacts, a portfolio of their equipment, warranty agreements and any related issues.” Additional tips: Set up a program that can proactively remind salespeople of the next step they need to further their relationship with customers. Reaching out before a rental contract expires can boost renewals. ▶Brian Shanahan, president, Shanahan Strategy, on how dealers can modernize their market strategy: “Dealers must identify and research ‘buyer personas,’ delving into what is important to that person so they can better engage with them.” These buyer personas examine who your ideal buyers are by key segment, what their most pressing questions and problems are, and lead you to further understand what makes them tick. This is the kind of information that offers dealers a chance to reflect on – and perhaps reset or adjust – their own operations. We’re constantly telling our contractor readers that there’s no better time than now to make their dealer a true business partner. While it’s still true that dealers absolutely want to influence a contractor’s buy, dealers now know they have to dig deep into their client’s operation to even be under consideration. It’s the kind of win-win situation that propels both businesses forward.
MARCIA GRUVER DOYLE serves as editorial director of Equipment World, a Randall-Reilly brand that also produces the weekly newsletter Big Iron Dealer. JOY POWELL, senior editor of Equipment World, is the primary writer for Big Iron Dealer in addition to covering roadbuilding and general assignment topics for Equipment World. March 2018 | Construction Equipment Distribution | www.cedmag.com | 21
LAS VEGAS, NEVADA
JANUARY 15-19, 2018
Exhibitors Hit the Jackpot at AED Summit
By Karen Algeo Krizman t wasn’t just construction equipment dealers who were looking to win big at this year’s AED Summit and CONDEX. This year’s trade show drew more than 130 exhibitors to the desert as well, many of whom raved about the event afterward. “We were a first-time exhibitor, and it was a great event for us,” said Lisa Jones of Baseplan Software Group, which offers a fully integrated ERP solution for equipment dealers. “We were very much welcomed by the AED team and the other members. We met many new faces and potential partners that I’m excited about working with in the future.” Jones was particularly impressed by the level of technological knowledge wielded by many attendees at the Summit. “I think in other industries and other events we attend, the participants aren’t as
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open to it,” she said. “But everyone was already interested in our product here and had already come to the booth with that perspective.” This year’s event was the first Summit for CardConnect, a credit card processing company. “Overall it was a positive experience,” said Christina Braatz, CardConnect’s association development executive. “We need to be able to integrate with all the different software that the equipment dealers work with, so we brought two of our (integrated support specialists) to help us meet with the different software companies that were also exhibiting there. We made a lot of different connections that way. We’ve had a few warm leads come out of it, so we’re hoping to make a few more
JANUARY 15-19, 2018
connections there.” Cemen Tech Inc., which manufactures mobile and stationary concrete mixers, was also a first-time exhibitor at the Summit. “Since we are setting up a domestic dealer network now, it was a great opportunity not only to meet new distributors we weren’t currently in discussions with, but also to follow up with guys I’ve been talking to on the phone over the last couple months and to finally have an opportunity to meet,” said Mark Rinehart, director of sales and marketing at the Iowa-based company. “They gain value from all the sessions and all the speakers, but also have the opportunity to go around to the machinery to see if they’d be interested in having that line. It was a good mix for distributors as well as manufacturers to have that forum
where we could have a piece of equipment there that we could talk to the dealers about.” The 2018 AED Summit also was a chance for the company formerly known as My Dealer Service to unveil its new name and brand. Now known as Modern, the Denver-based software company offers communication solutions for equipment and automobile dealers. “It was very important to have a platform where we could reach many touchpoints with many existing and potential new customers to advertise the new brand,” said Modern CEO and founder Jon Rossi. “AED does a great job with the event, and it is why we chose to be an exhibitor for a second time. It made it possible for us to reach our customers.”
March 2018 | Construction Equipment Distribution | www.cedmag.com | 23
LAS VEGAS, NEVADA
JANUARY 15-19, 2018
Insights from Summit: Equipment Financing Turns To Flexible Usage And Service-Based Models By Theodore Rennenberg Today’s manufacturers and dealers are consistently faced with growing customer demand for increased operational efficiencies and the need for equipment to be “always on,” while keeping overall total cost of operation (TCO) at a minimum. Enhanced collaboration between manufacturers, dealers, distributors, resellers and leasing companies is leading to usage-based and managed services business models to meet these demands. Ultimately, these models are unlocking exciting new revenue opportunities and partnerships for everyone involved. I had the pleasure of giving a seminar at the 2018 AED Summit on behalf of DLL, entitled “Equipment financing trends: usage- and service-based models,” to share how the newest trends in equipment financing can help dealers and manufacturers maximize their investment in equipment with usage-based models and in turn provide better customer experiences for their end users. In case you were not able to attend the Summit, below are some of the overall insights that were covered.
Trends toward growth
In 2017, Technavio reported that the global construction equipment market is forecast to consistently grow by almost 7 percent over the next three years. The North American market has seen a remarkable turnaround since the 2008-2009 economic crisis. ELFA named “construction” the hottest equipment sector for the fourth year in a row, pinned to the improving health of the economy and low interest rates. However, with this growth, customers are evolving and expecting more services and flexibility. There is a growing need to offer usage-based options (operating leases) and services like third-party asset managers. It is the era of the “uberization” of business models driving the need for usage/performance-based products. 24 | www.cedmag.com | Construction Equipment Distribution | March 2018
LAS VEGAS, NEVADA
How to add value in your business model
Manufacturers and dealers need to focus on how they can match marketplace evolution and demand – and this starts with innovative financing. Positioning your business to understand the equipment application, usage and, most importantly, the various financing options available, will allow you to advise customers early in the sales process, when it is most important. By helping customers decide which options best suit their long-term goals, you will help them derive the most value from equipment through properly structured lease and maintenance agreements. This results in maximum uptime and, if applicable, frees up your customers’ working capital, while you sell more equipment with a small down payment. This will quickly make a big impact with your customers and solidify your value proposition to them. Remember, financing options should be introduced early in discussions to properly ascertain a customer’s usage patterns, which will in turn help them decide whether to lease or to own. Bundled offerings, such as a lease with included maintenance services, are a value-add for customers. Service and parts agreements will guarantee the right service is done at the right time, which will lower overall maintenance costs and the total cost of operation, as well as increase the reliability of the equipment. As more people look to leasing as an effective fleet management tool, they realize that existing fixed-term leases have a weakness: the fixed term. Alternatively, flexible usage-based contracts are just that – the term is flexible based on the equipment usage.
Who benefits from flexible term leases?
With term flexibility, customers benefit from equipment being replaced at the right time, based on its hours and not when the fixed lease term ends. So, along with the standard benefits of leasing that include offering lower monthly payments, usage-based (flexible term) leases eliminate overtime, drastically reduce overpayment, and eliminate equipment rotation issues. Flexible usage-based contracts with bundled maintenance are like fleet management in a box, making all parties to the transaction nimble and able to offer the best service and performance that equipment has to offer. Additionally, the usage cost and monthly payment is low when equipment is underutilized and increases when it’s overutilized, which helps customers more accurately report expenses in line with increasing revenue.
Innovating with Lease by the Hour
To meet the growing demand for usage-based leasing, we developed Lease by the Hour®, an innovative financing solution that provides more flexible usage-based programs for our partners and their customers. This program solves the common problem of discrepancy between estimated hours and actual usage. Did you know that approximately 90 percent of the time our customers are incorrect in estimating hours and usage? That’s not good, but it’s understandable because there are many contributing factors, such as the following: End users often confuse available hours with actual usage. They overestimate usage to avoid overtime charges at the end of the lease term.
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Accurate usage data needed to structure the lease is typically not available. Actual usage of equipment changes after the beginning of a lease. Leasing companies do not get usage data during the life of a lease to gauge the health of the lease. One way to eliminate this problem is through a usage-based program like Lease by the Hour. Offering a Lease by the Hour option includes the following benefits to customers: There are no overtime costs. When bundled with maintenance, it assures maximum uptime as service intervals increase when usage is high. Monthly payments are lower when usage is down and increase when usage is high, which shortens the contract. Usage determines the lease term, which in turn will match the equipment life cycle. There is no need to rotate equipment. You can make more informed decisions. Customers and dealers have more “in-term” control over assets. Lease by the Hour is appropriate for your next lease if you answer yes to two or more of the following questions: Do you understand normal fixed-term fair market value (FMV) usage-based leasing? Have you experienced fluctuating usage on equipment in the past or foresee this in the future? Have you faced overtime in normal fixed-term leases in the past or calculated overpayments on underutilized equipment? Have you needed to rotate equipment due to unpredictable usage? Have you needed to park equipment due to overuse during a lease term? Have you avoided using leasing in the past due to the inability to predict/structure an FMV contract?
Key takeaways for 2018
It is very gratifying to see that equipment sales are rising and are forecast to grow consistently over the next several years. As customers require more innovative, flexible, and usage-based financial solutions from equipment dealers and manufacturers, everyone will benefit by evolving to meet this demand. Customers benefit through increased equipment reliability and uptime, matching of contract terms with the life cycles of equipment, matching of expenses with revenues, elimination of overtime, elimination of the need to rotate equipment, and decrease in the age-old habit of overestimating usage. Dealers and manufacturers not only benefit by helping their customers with all of the abovementioned lease enhancements and becoming a “solutions provider,” but they also increase equipment sales and parts/service revenue. They enhance their equipment’s reputation by servicing based on actual usage, replacing equipment at the proper time, and eliminating uncomfortable discussions about overtime or overpayment at the end of equipment lease terms. Reach out to share your perspective on usage-based equipment financial solutions and chat about DLL’s Lease by the Hour® program. March 2018 | Construction Equipment Distribution | www.cedmag.com | 25
LAS VEGAS, NEVADA
JANUARY 15-19, 2018
Longtime AED Members Recognized By Megan Mattingly-Arthur Associated Equipment Distributors awarded anniversary plaques to more than 20 longtime member businesses during the Annual Membership Meeting at the 2018 AED Summit. Member businesses that received the plaque were recognized for 25, 50 or 75 years of AED membership. Afterward, representatives from several of the recipient businesses shared their thoughts on their experiences with AED through the years, as well as their reaction to receiving a plaque celebrating their decades of AED membership. “Our membership in AED has been a way for us to connect with our distributors, the majority of which are AED members, so the Association has helped our company build important relationships,” said Jay Kulyk, president of Rogers Brothers Corporation, a Pennsylvania trailer manufacturer recognized for 75 years of AED membership. “We’ve been pleased to be members of AED for the time that we have. AED is one of our longeststanding associations and we appreciate the relationship that we have with them.” Nine of the more than 20 plaques awarded went to companies celebrating 25 years of membership. Companies that received a 25-year anniversary plaque include Birkey’s Construction Equipment Company, BLS Enterprises, DouglasGuardian Services Corporation, George & Swede Sales & Service, Lano Equipment, Scott Equipment, Vermeer Corporation,
Vermeer Midwest and Wiese USA. There’s a lot to love about AED membership, according to Douglas Hansen, president of W.I. Clark Company, a Connecticut construction and industrial equipment dealer and recipient of a 75year AED anniversary membership plaque: “In what ways has AED benefited our company through the years? It’s the publications, the educational training, the networking opportunities – even more than that, it’s the work that they do with the federal government that translates down to the states,” Hansen said. “The lobbying efforts that AED does to make sure our industry’s needs are visible to legislators are so important. Having chances to get together to network and share stories with other dealers – and realize we’re not alone in doing what we’re doing – is also nice.” AED also awarded three 50-year AED membership anniversary plaques. Recipients include Bobcat of Indy, Finkbiner Equipment Company (a subsidiary of American State Equipment) and Monroe Tractor & Implement Company. Jon Pederson, president of Minneapolisbased construction and aggregate equipment dealer Ruffridge-Johnson Equipment, has attended AED events for four decades. He lamented the number of dealers he’s seen go out of business through the years – and is proud Ruffridge-Johnson Equipment is still standing. “The networking opportunities have always been what I’ve valued most about
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our company’s AED membership,” he said. “Things have changed drastically since I first started going to AED conventions 40 years ago. Today there are a lot fewer dealers. We’ve seen a lot of other dealers go out of business in the past few years, so to be in business for 75 years is a big deal – and it’s a pretty classy plaque, too.” Pederson’s business partner, Dave Hosch, attended the 2018 AED Summit and collected the 75-year membership plaque on behalf of the team at Ruffridge-Johnson Equipment. “We were very proud to be able to stand up in front of people and say that we’ve been an AED member for 75 years – it’s quite an accomplishment,” Hosch said. “I wasn’t able to attend the Annual Membership Meeting, so the plaque was presented to me during the Small Dealer Council. I thought it was so fantastic to receive the anniversary plaque at the council meeting because there were a lot of new members there, and for them to see a small dealer be in business for so long was really important.” Finning Canada, Howell Tractor & Equipment, Road Machinery & Supplies Company, Tractor & Equipment Company and Wajax Equipment also received 75-year AED membership anniversary plaques. For more information on AED membership, visit http://aednet.org or connect with the Association on Facebook, Twitter, YouTube and Google+.
LAS VEGAS, NEVADA
JANUARY 15-19, 2018
Visit facebook.com/ aedsocial to view and download all our Summit photos!
March 2018 | Construction Equipment Distribution | www.cedmag.com | 27
TECHNOLOGY SHOWCASE
Why Workforce Development Is Crucial in Construction Industry By Kelsey Keegan A recent study released by FMI Corporation revealed shocking results in relation to how the construction industry handles workforce development – or rather, how it isn’t handling it. Some of the study’s highlights: 89 percent of participants in this year’s survey reported talent shortages. 75 percent of survey respondents have made changes to their training programs in the last two years, with mixed results. 43 percent of survey participants reported that their firms don’t prepare a formal annual training and development budget. Nearly 60 percent said their training, development and performance management efforts were not very effective. Organizations with the highest employee retention have committed to rich professional development cultures and have effective performance management processes.
55 percent of survey respondents don’t have any formal processes in place for identifying and developing high-potential employees. These numbers are staggering and clearly showcase the need for planned workforce development in order to better retain employees in a time when the construction industry is already short on labor. Why is workforce development really important? The initial reason is the labor shortage currently affecting the industry. Out of all times, now is absolutely essential to retain employees. With an already limited employee pool, retaining those you have could make or break your business. Additionally, as the industry tries to attract new talent, an obvious target is the growing millennial population. It’s widely known that this generation isn’t just looking for a salary and benefits, but are thinking “bigger picture.” As a whole, they want to work for companies that are collaborative
and communicative. Another element important to them is the ability to cross-train in their positions and to have personal and professional development opportunities. Also important in relation to personal development is the chance to obtain a better work–life balance. This could mean companies offering a flextime program in which employees can adjust their start and end times to better accommodate their schedule. Boston-based Shawmut Design and Construction has noted that the flextime initiative has increased their company’s retention rates by three basis points. Employees are also working more and more outside of the office setting, which provides more flexibility for them and allows businesses to downsize their office spaces. Whether it’s technology or a new generation that’s shaping and changing the workforce, making adjustments to improve your employee retention is always worth the investment. Especially during a time when it’s critical to keep your best talent.
KELSEY KEEGAN is the Marketing Coordinator at Commercial Web Services, a division of Trader Interactive, which specializes in providing commercial dealers and manufacturers with products and services to establish and grow their online presence in today’s market. 28 | www.cedmag.com | Construction Equipment Distribution | March 2018
n a x ts o l u ti o n.c o m X APT Corporation 5301 Blue Lagoon Drive, Suite 200, Miami, FL 33126 USA | Phone: (305) 744 5901
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TECHNOLOGY SHOWCASE
The Results Are In… and the
Digital Transformation
Is Here
By Karen Algeo Krizman embers of the construction equipment industry have little doubt that digital technology is going to transform the industry, according to a recent Associated Equipment Distributors (AED) survey. Conducted by XAPT Corporation, the survey of 133 AED members showed that 60 percent of respondents think the digital transformation is already happening, and another 25 percent think it will occur very soon. “It’s already happening,” Jim Barber, parts manager for Gibson Machinery in Ohio, said in a follow-up interview to the survey. “It’s going to happen more quickly, and the dealers that don’t embrace the change are going to be left behind.”
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The majority of respondents also believe the digital transformation will challenge their existing business models, with 66 percent agreeing overall. Mace Gjerman, training manager with California-based Peterson Holding Company, concurs: “A lot of people have had to learn a lot of new skills and it’s been a tremendous challenge.” Those people range from technicians, who now have to be as much computer scientists as they are mechanics, to customers who find themselves able to access a vast new world of parts and service online – assuming they are savvy enough to navigate the latest technology and identify which parts match their machines. “There’s that education of getting the customer to the right point” once they figure
TECHNOLOGY SHOWCASE out the manufacturers now offer just about everything online, Gjerman said. “Trying to help them figure it out is something we’re seeing more and more as the newer generation of operators and equipment owners are coming on board.” All the new technology has also opened up the marketplace to new competition, according to survey respondents. As a result, the majority said territory exclusivity has become more vulnerable, with 25 percent somewhat agreeing, 37 percent agreeing and 15 percent strongly agreeing. “Clearly that’s a fact of life,” Gjerman said. “The customer can go somewhere else now pretty easily.” To keep the customer coming back, Peterson Holdings, like other successful construction equipment distributors, has had to learn to embrace the never-ending change that comes with all the new technology. “First you have to be open and accepting of the technologies and the opportunities, and we’ve certainly done that,” said Gjerman. “We’ve tried to be aggressive about seeing how we can help our customers, because there is a lot of opportunity there. An example would be online parts sales. We offer an online parts store. At first there was some real resistance from some of our customers and some of our employees, who were feeling like we were trying to cut our parts people out of the work.” Gjerman said that once the customers and employees were able to accept the change, the majority of them have loved the online store. “(Our customers) find it far more efficient to go online, look at the parts pictures, find the part they want exactly instead of, say, for example, sitting on the phone and asking the parts person and trying to decide with them where that bracket is,” he said. “Our parts people also have been freed up and now are far more proactive about doing things like researching backorders. I think, by and large, our parts counter staff is doing work they find a lot more productive and enjoying it more rather than simply answering endless phone calls and looking up and entering parts numbers.” Another issue that concerned the majority of survey respondents is the growing chance that OEMs may start selling directly to customers, with 23 percent of respondents saying they somewhat agree this is a legitimate fear, 31 percent agreeing and 18 percent strongly agreeing. “The manufacturer-to-customer business model, that’s always a concern as a dealer,” Gjerman said. “You always have that thought that they’re getting all that information; they know exactly where the machine is (through the telematics); they know exactly who purchased it. There’s
always that worry that they could go right behind your back.” The good news, however, is that most of the respondents (80 percent) believe they have sufficient knowledge about their customers and can offer personalized products and services as long as manufacturers allow them to. The same percentage of respondents also believes their companies are effectively utilizing data to drive and develop business. And most of their businesses are ready – at least to some degree – to take on new digital initiatives, with 30 percent saying they somewhat agree they are ready, 31 percent generally agreeing and 18 percent strongly agreeing. An overwhelming 77 percent of respondents said their companies have someone driving the digital initiatives and channels, which no doubt is why they are confident they are ready for the digital transformation. Yet Gjerman cautioned that the industry will never truly be 100 percent ready. “It’s coming faster and faster, so you can do a good job but that doesn’t necessarily mean you’re ever caught up,” said the training manager, who has spent 29 years with Peterson. In an attempt to at least stay in the race, 20 percent of respondents said they plan to change their DMS/ERP systems within a year or two. But the majority (63 percent) don’t expect any changes within the next five years. Canada’s Strongco Limited Partnership was fortunate enough to be able to update its system in 2015, switching to an SAP cloud platform, according to branch manager Terry Jensen. “The intent behind that was it gave us the ability to add on the newer technology,” he said. “We haven’t taken advantage of that yet, but it is something that the system will allow us to do when we get there.” Cost is one thing that has held back this company, and others, with 36 percent of respondents saying the expense of updating to a new ERP/DMS system is their main concern. This is understandable, given that 78 percent of survey respondents said their dealerships are facing some profitability issues. Yet, 36 percent of those who responded said they believed more investment is needed in software system capabilities if they are to remain profitable; 42 percent said OEMs are increasingly interested in their dealers’ IT systems’ capabilities and 44 percent believe customers want more integrated services. “You have to temper the needs of the business with the cash flow that it takes to invest heavily in new technology,” Jensen said.
March 2018 | Construction Equipment Distribution | www.cedmag.com | 31
TECHNOLOGY SHOWCASE AVANADE
AVANADE, Microsoft’s largest partner, specializes in supporting Equipment Dealerships, along with many leading equipment OEM’s. Managed by our Global Equipment Dealer Services team, Avanade’s dealer team is your single source business partner for all Microsoft Business applications. Avanade has just released Microsoft Dynamics D365 Connected Dealer, a full dealership business solution. Designed specifically for equipment dealers, D365 Connected Dealer supports Finance, HR, Equipment Management, CRM, Sales, Rental Management, Parts and Service Management, engineered products, and, pre-configured interfaces for many leading OEM’s. The software comes with most dealer processes mapped and identified, all ready to use. No matter what size your dealership may be, Avanade has the unique ability to scale services to support you operations. Fully cloud based and accessible from virtually any device (laptop, tablet, phone) both live and off-line, Avanade will deliver your new dealer ERP, or any Microsoft Business solution on time, on schedule and within budget.
Stay Local. Go Global. &. bidadoo
bidadoo is the largest and most trusted online auction service for used construction equipment, rental fleets, trucks, and capital assets - on the world’s largest auction marketplace, eBay. bidadoo is a global online remarketing company with Auction Service Centers across North America and bidders and buyers from around the world. For the past 15 years, bidadoo has become the most trusted company buyers and sellers turn to for online auction services of used capital equipment. We work with the some of the largest equipment owners in the world including Sunbelt Rentals, Herc Rentals, H&E Equipment, JCB, Genie/Terex, JLG, Komatsu, John Deere dealers, The Boeing Company, City of Seattle, and many municipalities and government agencies. With eBay’s 168 million registered users globally, bidadoo provides equipment sellers access to the world’s largest bidadoo brings the auction toeBay. YOU online bidder and buyer base through our long-term partnership with Check out our weekly online auctions at www.bidadoo.com.
bidadoo, buying and selling equipment has never been better. CDK Global ay’s largest and most trusted online equipment and truck seller, Employee safety, additional Service revenues and improved customer satisfaction can all be results of a good mobile ake buying and selling fast,toolefficient, and easy... Start with bidadoo today! inspections for Heavy Equipment dealerships. Mobile inspections adds value before the work
even begins by being able to confirm a job site is safe for a technician. After work is complete, mobile inspections can help identify other areas of work a unit requires, generating addition revenue bidadoo.com 1.877.bidadoo info@bidadoo.com for the service department and solving problems for customers before they arise. Mobile inspections also provide appraisals for customer units you will need to inspect for a trade. Mobile Inspections tracks damage to your rental fleet – taking the guessing out of when the damage occurred. Mobile Inspections are highly customizable letting the dealership ask the questions they need answered, with the ability to attach pictures that will be integrated with the equipment profile – all done without the need of paper notes and dataentry. This is only a glimpse of what our Mobile Inspections tool can do for you.
Commercial Web Service
Having a website for your dealership used to be a competitive edge. Now it’s an absolute necessity. Staying a step ahead of your competition and in front of your customer requires a strategic marketing approach to generate more customer connections, and ultimately potential for more revenue. Commercial Web Services is a leading digital marketing provider catered exclusively to the equipment industry. CWS delivers the industry’s most sought after services for online marketing, including website hosting and design, search engine services, social media management, inventory exposure and more to get you in front of the right buyers. Your success is our success, and we strive to make you successful! For more information about Commercial Web Services, please visit www.commercialwebservices.com.
e-Emphasys e-Emphasys ERP is the premier dealer management platform designed exclusively for heavy equipment dealerships and rental companies. e-Emphasys combines their repository of Heavy Equipment Best Business Practices with the capabilities of a modern ERP platform to decrease operational costs and improve your bottom line. The fully integrated solution includes Sales, Parts, Rentals, Service, Manufacturing, Project Management, and Accounting modules built in to the core ERP. e-Emphasys also has fully integrated Business Intelligence & Analytics, Field Service, CRM, eCommerce, RFID, and IoT solutions. The ERP system is accessible from any web browser and all Android or iOS mobile devices. We offer cloud or on-premise hosting options to meet the needs of your business as well as 24/7 support and the largest research and development team in the industry. e-Emphasys has a proven track record of customer success across the globe, with an unrivaled history of successful implementations and unparalleled customer ROI. 32 | www.cedmag.com | Construction Equipment Distribution | March 2018
TECHNOLOGY SHOWCASE MODERN
Over 75% of your service customers prefer TEXT messaging vs. a phone call regarding updates. MODERN helps equipment dealers create an exceptional, frictionless experience for your service customers by providing them with real-time messaging and an overview of their repair. Deliver estimates, multipoint inspections, photos, videos, and updates to your customer’s smartphone all via TEXT message. MODERN also provides dealer employees with the communication hub they need to collaborate with coworkers on-site or off-site, reduce phone calls, and drastically shorten customer response times. Dealers report a measured increase in revenue, shorter WIP, fewer work order disputes, and higher net loyalty scores within 3-6 months of go-live. MODERN is built on the latest web technologies, works on any device - mobile or desktop, and is ready to integrate with your current ERP.
Point of Rental Software
Point of Rental’s Inspection App automates the inspection, maintenance, and service processes, all from your mobile device. From off rental to ready to rent, the Inspection App tracks each step and provides insight that saves time and money. During setup, managers can determine the inspection process for each item to go through, which technicians can be assigned, and even determine the mission criticality of each checklist item. They’ll even be able to determine which checks will require a manager to approve. When an item is called off rental, it automatically enters the Inspection App. If there’s a checklist that needs to be completed before the item can be rented again, the list is automatically assigned to a technician (or group). In short, Point of Rental’s Inspection App takes the maintenance process and makes it faster, smarter, and more accessible. Learn more at www.point-of-rental.com/inspection-app.
Stay Local. Go Global. &. bidadoo brings the auction to YOU With bidadoo, buying and selling equipment has never been better. As eBay’s largest and most trusted online equipment and truck seller, we make buying and selling fast, efficient, and easy... Start with bidadoo today! www.bidadoo.com
1.877.bidadoo
info@bidadoo.com
March 2018 | Construction Equipment Distribution | www.cedmag.com | 33
TECHNOLOGY SHOWCASE SmartEquip
SmartEquip is an Online Fleet Support Network that connects fleet owners to manufacturers and dealers with real time access to critical parts and service information. SmartEquip’s single sign on network, streamlines the service process by improving technician wrench-time, eliminating order errors and duplication of work, reducing equipment downtime and invoice processing time. SmartEquip is an OEM and Dealer-Centric company because they are owned and managed by industry professionals who were dealers and fleet owners. SmartEquip allows dealers the opportunity to embed their business into the workflow of their customers. The result is a highly-targeted delivery of product support information and an increased percentage of OEM and dealer parts sales. In addition to fleet solutions, SmartEquip powers e-commerce sites for dozens of dealers and manufacturers. These sites leverage the current technology, allowing dealers the ability to seamlessly present a storefront to sell directly to their customers.
TARGIT
Improve efficiency, utilization, and revenue with analytics and reporting built for you. See where you can improve the customer experience, cut costs, and increase profitability with TARGIT Decision Suite. TARGIT is the maker of TARGIT Decision Suite, the business intelligence analytics and reporting software provider for the heavy equipment dealers. TARGIT Decision Suite is the only business intelligence platform that delivers out-of-the-box reports and dashboards with the most commonly tracked key performance indicators in finance, rental, parts, sales, and services. TARGIT offers pre-built integration into your core ERP, DMS & CRM platforms and connects with a variety of data sources. You can finally see all your dealer data in one centralized place. The enterprise-wide software has a vast range of deployment options and self-service capabilities, allowing users to create their own reports and analyses and eliminating IT bottlenecks. Bring actionable data to everyone in your organization. Request a demo today.
Technology Driven. People Focused.
D ealer Inform ation System s Corporation
800.426.8870
34 | www.cedmag.com | Construction Equipment Distribution | March 2018
www.discorp.com
TECHNOLOGY SHOWCASE Visibility Software
Visibility Software helps companies solve talent acquisition and talent development problems with intelligent applicant tracking and training management software technology. Cyber Recruiter is an Applicant Tracking System (ATS) that automates the entire hiring and onboarding process. Easily manage all steps of the recruiting process from job requisition to onboarding; Identify and hire the right applicants quickly; Efficiently evaluate candidates using consistent, measurable processes; Transfer newly hired applicant data into a number of leading HR and payroll accounting systems without additional data entry; Improve employee branding and candidate application experience. Cyber Train is a Learning Management System (LMS) designed to manage and track employee training requirements, enrollments, and certifications. Easily manage all steps in training process from course development to approvals and completion; Analyze employee progress; Track which employees have certifications and licenses; Improve employee training experience and retention. Visit our dedicated AED member page for more information: http://info.visibilitysoftware.com/associated-equipment-distributors.
XAPT At XAPT we work with Equipment Dealers all day long, all year long. This is at the core of our company, employing hundreds of professionals around the globe with one focus – providing the leading dealership solution for equipment dealers. We offer 700+ industry specific processes enabling your dealership to achieve success quickly and gain from industry leading best practices. Our product, NAXT is a complete equipment dealership solution for sales, CRM, rental, service, parts, power systems, procurement, finance, mobile and business intelligence. Over 20 countries, over 400 locations, over 28,000 users. We work closely with Microsoft to utilize all the capabilities of Microsoft Dynamics 365, Azure, Artificial Intelligence, Machine Learning, Big Data analytics to enable the digital transformation of our customers.
(888) 695-5010 March 2018 | Construction Equipment Distribution | www.cedmag.com | 35
TECHNOLOGY SHOWCASE
Construction Trends in 2018 By Melanie Baravik Heading into 2017, the construction industry predicted a major uptick in the use of technology in construction in general. BIM, drones and the Internet of Things were major players on the list, and related concepts like sustainable building practices and offsite construction weren’t far behind. And technology isn’t going anywhere in the new year. Other not-so-great trends from last year are sticking around, too. There’s no end in sight for the labor shortage, and materials costs are still going up. Despite those setbacks, there’s plenty of progress to be excited about. As 2018 kicks off, let’s see what the year holds for the construction industry.
Increased technology adoption
Construction innovation is moving ahead quickly — though the industry has been slow on the uptake, there are so many opportunities for the use of technology on the jobsite. And all 36 | www.cedmag.com | Construction Equipment Distribution | March 2018
that opportunity means new tools are being created faster than ever. This is the tech that will take off in 2018.
Augmented and virtual reality
AR and VR are in their infancy in construction, but that doesn’t mean they aren’t being used all over the world. The technologies are used much more widely used in related industries like real estate — it’s commonplace for home buyers to virtually tour properties before visiting in person. With a VR headset, that buyer could be thousands of miles away and feel like they’re standing in the home. And if a Realtor is showing a pre-construction home, they can use the headsets to show buyers the finished product. In construction, virtual reality allows contractors to design a building in its entirety and completely to scale before ground is ever broken, reducing opportunities for error and increasing the accuracy of project bids. Augmented reality lets builders
TECHNOLOGY SHOWCASE and their clients easily visualize changes in an existing space, especially helpful for those who have trouble picturing a different paint color on the walls or new flooring. On the jobsite, workers can use their phones to see how the project is supposed to look when it’s finished, comparing their progress every step of the way. Both AR and VR cut down on mistakes by taking jobsite communication to a whole new level. They also make for faster, more certain decision-making, speeding up the entire project. Their potential effects on projects of all sizes are huge — from making complex directions accessible to boosting community engagement and excitement, the possibilities are limitless.
BIM
BIM (building information modeling) is more than just a design and planning tool for construction projects; it’s a new, more efficient process from start to finish. Construction firms that use BIM create project models using programs like Autodesk’s BIM 360, software that also functions as a communication and collaboration tool. Every piece of information about the project can be accessed by anyone involved from wherever they are. And having that data collected in one place allows construction professionals to create project models that are cost-efficient and cut down on wasteful spending and materials usage.
streaming video directly to operators. As the project progresses, builders, investors and any other stakeholders can get a big-picture look at any time, no matter where they are, keeping everyone in the loop. And clearer communication means fewer errors and faster work. Is your construction business putting drones to work in 2018?
Sustainability
A trend that took off in 2017, sustainability and green building will only continue to rise in popularity. Tesla’s solar panel shingles are being tested on the roofs of employees’ homes, and are expected to soon be available for installation. Washington’s Built Greencertified homes are up to 40 percent more efficient than homes that aren’t certified; not to mention the homes’ carbon emissions and homeowners’ electricity bills are significantly lower. The UK aims to have zero carbon emissions from domestic buildings by 2020. Nearly any building structure anywhere in the world can become LEED certified by following their building guidelines and registering their project. And these efforts for sustainable building practices are spurring the development of sustainable materials — a market expected to grow 12 percent by 2026 — to match. In 2018, try setting green goals for your business by sourcing materials responsibly and choosing eco-friendly options whenever possible.
No sign of relief from labor Like BIM, drones are a revolutionary shortage
Drones
tool for communication and data collection for construction projects. They can capture a birds’-eye view of the jobsite, inspecting areas that are difficult or unsafe for workers to get to. Connected drones can operate as a surveillance and security system, or conduct inspections,
Jobs were steadily added to the construction industry throughout 2017, but countless skilled labor positions remain vacant, and contractors don’t expect that to change just yet. Recruitment efforts ramped up as it became more apparent that high school students and
career seekers weren’t considering the trades as a viable option — but those efforts take time to produce results. The high school sophomores exploring construction as a job opportunity won’t be ready for the workforce for two years; even then, they may still need to complete an apprenticeship or earn a two-year degree. For construction, this means the labor shortage could continue for the next few years. Take cues from big players in the industry: help fill the gap by creating apprenticeships or internships within your company to bring in the next generation of construction talent. If that’s not in the cards for your business, get involved in other impactful ways: visit local high schools and talk to students about their post-grad options, or allow them to jobshadow you or your employees. A handson approach to recruitment can’t go wrong when you’re looking for employees in a hands-on industry.
Saving money
The labor shortage and the rising cost of construction materials can put the squeeze on annual budgets, big and small. It’s harder than ever to find a good carpenter, so you have to offer competitive wages — that can cut into your budget. Expect some project costs to be inflated due to more expensive construction materials. Lack of labor and rising costs could also mean that construction projects take longer than usual. But, anticipating these challenges in the coming year means you’re ahead of the curve. Though technology might seem like a big investment to make this year, it can ultimately help you save money. When you can see the specifics of how your fleet is being used, you can target and eliminate wasteful spending, keeping your budget on track.
MELANIE BARAVIK is a Brand Writer for EquipmentShare. She has written for a number of online publications spanning several industries and interests including insurance, construction, entrepreneurship and small business. She blogs regularly at The Yard, creating content covering topics that modern contractors, construction business owners and fleet managers care about the most. March 2018 | Construction Equipment Distribution | www.cedmag.com | 37
TECHNOLOGY SHOWCASE
Reduce Costs with the Right Fleet Maintenance Program By Brian Frederick You want to lower fleet maintenance and repair costs. It’s typically the largest operating expense for any construction fleet — maintenance and repairs. But no matter how efficient you think your current maintenance schedule is, there’s always room for improvement.
and provides a good ROI, between 6-10%. Additionally, it can reduce overall maintenance costs by up to 35%, reduce downtime by as much as 45% and increase productivity by 25%, according to a US Department of Energy study.
Reactive maintenance
Like preventive maintenance, predictive maintenance is based on the idea that a proactive approach is better than a reactive one. The key difference is that instead of basing maintenance schedules on a calendar, predictive maintenance makes repairs based on the actual condition of the machine. It has all the same benefits of preventative maintenance while providing an even greater ROI resulting from a broader view of maintenance and equipment performance.
Also known as “run to failure” maintenance, this is generally the worst type of maintenance, as it focuses on repairing an asset after it’s already broken down. Reactive maintenance is most common in newer companies who haven’t established a maintenance schedule yet. While it requires less staff, less planning and a lower initial investment, it’s incredibly inefficient and expensive. For one thing, it’s completely unpredictable. You never know when a machine will fail, or where it will be when it happens. That can lead to high prices for emergency parts shipping, travel and out-of-hours support. Reactive repairs are also extremely timeconsuming in the time it takes to diagnose a problem, allocate resources, pull the correct manuals, etc. What’s more, reactive maintenance is not very safe. Technicians are under more pressure to get assets up and running, and that can lead to more risks being taken. As you can see, reactive maintenance has clear drawbacks. Despite that, approximately 55% of maintenance work is still reactive.
Preventive maintenance
This maintenance schedule aims to avoid asset repairs and breakdowns altogether by regularly performing tasks based on either time or work triggers. Preventative maintenance increases assets’ life span, improves reliability and reduces downtime. This approach ensures equipment is only out of commission before and unavoidable failure, reducing costs and performing repairs during ideal times. Because equipment is kept in good working condition, resources waste is minimized and operations are streamlined. This provides a competitive advantage
Predictive maintenance
Why you should integrate smart maintenance into your fleet
Aside from the obvious monetary benefits of smart maintenance, the most important reason to implement it with your fleet is to reduce downtime and improve productivity. Predictive maintenance is closely tied to advancements and software features that have only recently become available. Telematics data from devices like ES Track creates alerts and triggers that help fleet managers identify potential problems before they happen.
Implementing a smart maintenance program
As with any cutting-edge technology, predictive technology requires an upfront investment and a more complicated implementation. There’s also an element of data analysis that can be daunting to some. An ideal system (like ES Track, for example) will feature easy implementation, collect and store predictive data, provide alerts for action, and show trends that can be associated with potential failures.
BRIAN FREDERICK is a Senior Brand Writer for EquipmentShare. Previously, he has worked for John Deere, Staples and Sprint, as well as multiple advertising agencies. He lives in Overland Park, KS with his wife, two kids and a beagle. 38 | www.cedmag.com | Construction Equipment Distribution | March 2018
ever wish you could react faster?
The CDK IntelliDealer™ 4.0 Dealer Management System uses the latest technology to integrate your phone system, CRM and OEM interfaces—as well as your Parts, Service and Accounting functions. So when you need to make quick decisions, you can act fast—and stay profitable.
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JOURNEY TO THE
TOP
Third-Generation Heavy Equipment Manufacturer Got His Start Helping With Inventory By Megan Mattingly-Arthur eavy equipment manufacturing is in Chris Thompson’s blood. His grandfather, along with his father and uncle, founded Thompson Pump in 1970 to meet the pumping and dewatering needs of customers in Central Florida. Today, the Port Orange-based company serves more than 1,000 national and international clients in the heavy construction, remediation, underground utility, road building, mining and agricultural industries, as well as municipalities and other government agencies. Thompson Pump also boasts a robust distribution network for sales, rentals, parts and service that includes 20 company owned rental branches. Chris Thompson has been at the helm of Thompson Pump as the company’s president Thompson since 2015. Despite his family connections, he started at the bottom and worked his way to the top, beginning with a series of odd jobs performed during summer breaks. “I definitely started out at the bottom,” Thompson said. “I remember being 10 years old or so and coming in on summer breaks, and working in the business to learn the basics. Some of the things I would do at that age were helping out with our mid-year and end-ofyear inventory, physically counting the parts and doing really simple stuff. That was the first job I remember doing part-time growing up.” Thompson continued to work in the business part time during the summers before going on to attend college at the University of Florida. In 1999, after graduating with a business degree, Thompson went to work at the family business full time. He was put into an informal management training program of sorts that allowed him to hop from one department to the next, helping him get a better feel for the business’s day-to-day operations. However, in the early days, rentals were where Thompson found his niche.
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“My early career was in the rental side of the business, working with our locations here in Florida, and, over time, I took over one branch and then the next branch, until I was in charge of the region – and I was Florida regional manager for a number of years,” he said. “Eventually, I took over the responsibility for all of our rental branches. Three years ago, I took over as president of the company, not just on the rental side, but the manufacturing side of the business as well.” In his role as president of Thompson Pump, Thompson works with his team to establish strategies and goals for the company, as well as ensure that employees have the tools and training necessary to take care of customers and help the business grow. “One of the things I really enjoy about working in the heavy equipment industry is that there’s always a new challenge: There are new projects to get involved with, and new distributors and customers to meet and get to know,” he said. “The long-term relationships we build with great people is one of my favorite things about this work.” To people who may be considering a career in the heavy equipment industry, Thompson offered this advice: “Work hard with your customers’ interests in mind – and don’t be afraid to stretch yourself out of your comfort zone a little bit. Find ways to help your company or coworkers be successful. Growing businesses, especially familyowned businesses, are always looking for ways to adapt and do things better. To do that, you have to have good people who are committed to helping the company evolve. For someone who’s just starting in the industry, being willing to do whatever it takes to help customers and help the company grow will really help them stand out and succeed.” When he’s not busy fulfilling his duties as president of Thompson Pump, Thompson enjoys spending time with his wife and three kids, watching college football and catching lobster in the Florida Keys. For more information on Thompson Pump, visit www. thompsonpump.com or connect with the company on social media. March 2018 | Construction Equipment Distribution | www.cedmag.com | 41
Canada’s Major Trade Relationships:
TURBULENT But Progressing
By Lawrence Ramer he relationships between Canada and a number of its major international trading partners remain turbulent and uncertain. However, Ottawa did manage to make important progress on trade deals in the first quarter of 2018, joining the revised Trans-Pacific Partnership, keeping NAFTA talks alive and moving forward, and reportedly considering developing a new approach to dealing with China. In January, Canada and ten other nations endorsed a revised version of the Trans-Pacific Partnership, or TPP. The agreement, which was altered after U.S. President Donald Trump decided to pull his country out of the pact, is expected to make it easier for Canadian businesses to reach deals in Japan, the world’s third largest economy. Canadian Prime Minister Justin Trudeau had been widely considered the main obstacle to a TPP deal after he decided not to attend a summit on the agreement in November 2017. Also taking a hard line on NAFTA, the premier said in early February that his government was “willing to walk away from NAFTA if the United States proposes a bad deal,” adding that “we will not be pushed around.” The prime minister’s tough talk came after his foreign minister, Chrystia Freeland, traded barbs with Trump’s trade representative, Robert Lighthizer, during a NAFTA negotiating session at the end of January. Lighthizer complained that U.S. companies were being shortchanged by NAFTA, said he wondered if Ottawa is “truly committed to mutually beneficial trade” and derided Canada’s proposal that would allow the United States to opt out of arbitration decisions made under the pact. For her part, Freeland used American statistics to argue that U.S. companies were getting a fair deal under NAFTA and called on Washington to avoid disrupting the successful trade relationship that the two countries had established. Meanwhile, it’s safe to say that Ottawa did not endear itself to Washington by filing a complaint against the United States at the World Trade Organization, in an effort to combat the Trump administration’s decision to levy tariffs against Canadian softwood lumber producers. Canada’s complaint accused the United States of taking illegal punitive action against multiple nations. But despite the clashes, there are signs suggesting that NAFTA is not dead. Multiple sources reported that the sides had made “slow” progress at
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the January talks, although there are still disputes between the United States and Canada about auto production rules, dispute arbitration, and a sunset clause for the pact. In early February, Trudeau said he didn’t think Trump would cancel the treaty, and a U.S. trade official stated that America was still looking for “breakthroughs” that would enable NAFTA to be preserved, Reuters reported. In news that bodes well for the prospects of a free trade deal between Canada and China, Ottawa is considering reworking its insistence that Canada’s trade partners agree to become more progressive in multiple areas ranging from labor issues to gender issues to environmental matters, The National Post reported in mid-January. According to the report, Canada and China agreed in December to launch talks aimed at reaching a trade deal, but were unable to announce that development in a press release because China rejected Canada’s efforts to specifically allude to labor issues in the document. Beijing has said that “non-trade issues” should not be incorporated into trade talks. However, Canada and China have room to compromise on the progressive issues that Ottawa is looking to advance, including “labor, indigenous rights and gender,” as Yves Tiberghien told the Vancouver Observer. Tiberghien is a political science professor at the University of British Columbia and the director emeritus of the school’s Institute of Asian Research. The newspaper also quoted the professor as saying wages in China are rising 10 to 20 percent annually, and the Asian country is looking to become more progressive on gender issues. Despite the uncertainty regarding trade deals, Canadian exports were expected to jump 8 percent in 2017, powered primarily by strong demand from the U.S., Export Development Canada reported in October. Exports by the Canadian industrial machinery and equipment sector jumped 11 percent in 2017, the organization estimated. Although Export Development Canada predicted that overall Canadian export growth would slow to 4 percent this year, that estimate could prove conservative if the country’s trade relationships continue to improve. It should be noted that Associated Equipment Distributors advocates for freer trade, lower tariffs, and easier cross-border trade in both Canada and the United States The organization believes that excessive domestic content rules are a barrier to economic health for its members in both the United States and Canada, while tariffs and trade barriers harm its members’ customers.
LAWRENCE RAMER has over 15 years of experience in business journalism. He has worked for Globes, Israel’s most widely read business newspaper, as well as The Jerusalem Post and theflyonthewall.com. He holds an MBA from Rutgers University. 42 | www.cedmag.com | Construction Equipment Distribution | March 2018
Electronic Logging Devices and Electronic Stability Control Technology By Lauren Kutchaw n December 2017, Transport Canada rolled out a strategy they anticipate will save lives and support economic growth. The new regulations include mandatory installation of electronic stability control technology and will ensure that all commercial drivers are using electronic logging devices to keep track of their hours spent on the road. In efforts to harmonize Canadian and U.S. regulations, Minister of Transport Marc Garneau advocated for this positive new change in commercial vehicles. “We’re constantly looking at how technology can improve road safety, and electronic stability control and electronic logging devices fit the bill,” said Minister Garneau. “These new measures not only make trucks and buses safer, but they also have a trickle-down effect of making the roads safer for all Canadians.” Electronic logging devices, or ELDs, are replacing time-consuming paper logging systems. Both Canadian and U.S. transport regulators are working to ensure safer driving practices by developing regulations that are largely like those of their neighbor. With the newest addition to Canada’s transportation regulations, both countries now require drivers to provide accurate, tamper-proof driving logs and will be required to phase out machines currently in use that do not meet new machine standards. “For a number of years, the Canadian Trucking Alliance has been pointing to
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research that shows a universal electronic logging device mandate would have a direct and immediate impact on curbing behaviors strongly linked with higher crash rates, such as driving over prescribed limits of service, which leads to fatigue,” said Minister Garneau. While there are clearly recognized benefits to ELDs, their implementation is not without concern. The costs associated with the installation of an ELD are not insignificant, whether you have a fleet or are a small business owner with a single commercial vehicle. The counterargument to cost is that this will be offset by reduced paperwork hours, but that remains to be seen. The impact on productivity has also been cited as a concern, but as with the aviation sector, Transport Canada sees the implementation of ELDs as an important tool to fight driver fatigue and reduce carnage on the roads. The government has determined that potential reduced productivity, increased labor costs to industry, personnel shortages and other challenges to the heavy equipment and trucking sectors are acceptable costs, although when the case has been made soundly, exceptions to the regulations have been granted. “AED is supportive of the measures Transport Canada has taken to bring ELDs to our industry and in a manner that seems to harmonize their use across the Canada–U.S. border,” said Brian McGuire, AED president and CEO. “We will continue to monitor the
roll-out and voice our concerns where any discrepancies or problems appear.” As part of Transport Canada’s newest strategy, ELDs currently in use will be permitted until 2022, and all devices must meet new National Safety Code technical standards by 2020. The Transport Minister also announced new regulations requiring commercial trucks and buses to adopt electronic stability control (ESC) technology. These stability control systems are now required in new trucks, school buses and intercity buses. This new technology offers even more control to drivers in preventing collisions and rollovers and in improving directional stability; they will be required in vehicles by June 2018. First studied in 2004 by Transport Canada, ESC technology has been mandatory in passenger vehicles since 2011, and the expansion of the ESC systems to commercial trucks and school buses is a natural extension that further increases road safety. “The Private Motor Truck Council of Canada and its members are extremely pleased about this announcement. Our membership has been involved in the consultations with the department and we are firm believers that this regulation will benefit the entire industry. Electronic logs will make compliance easier to verify, ensuring all carriers are following the hours of service rules. This will result in a leveling of the playing field within the industry and improved road safety for all.”
March 2018 | Construction Equipment Distribution | www.cedmag.com | 43
ROUGHING IT
In the Rough-Cut Environment of the Heavy Equipment Shop, Female Technician Melissa Petersmann
Holds Her Own
By Megan Mattingly-Arthur he heavy equipment industry offers fantastic opportunities for people who are willing to work hard and though the industry’s technicians have historically been almost entirely male, more and more young women are pursuing diesel technician careers. For women like Melissa Petersmann, it’s a perfect fit. Petersmann needed no introduction to the world of heavy equipment repair, having grown up with a father who operated and repaired logging equipment. Over the years, she developed an appreciation for equipment herself. However, for Petersmann, choosing a diesel technician career was about more than that: It was a strategic decision that allowed her to do what she loves – on all counts. “My inspiration (for becoming a heavy equipment mechanic) is no different from the men (who choose this type of career): I enjoy equipment and I enjoy making money,” Petersmann said. “I had two options for myself when I graduated high school: training horses or going to school for diesel mechanics. I decided I wanted to be able to have a steady job and afford to have my horses, so I went with diesel mechanics. I started on semis in school and went from there, and ended up at a John Deere dealership two months after graduating from Wyotech. I haven’t looked back since; I love what I do.” Not including her schooling, Petersmann has more than twoand-a-half years of diesel repair experience under her belt, and has worked on both John Deere construction and John Deere agriculture equipment. She currently works at 4Rivers Equipment in Cheyenne, Wyoming – a John Deere agriculture equipment dealer – where she enjoys doing major repairs. “I love the challenge of major repairs,” Petersmann said. “Also, it’s always fun to get to drive or operate machines after repairs to verify the fix. My favorite thing about working at 4Rivers is the challenge of learning all the agriculture machines. Even though they’re still John Deere, agriculture equipment is a whole different world than construction equipment.” Some women might find the idea of working in a “roughcut,” male-dominated environment a little intimidating, but not Petersmann – to her, the shop feels just like home. “Honestly, I grew up in a rough-cut environment, in an atmosphere similar to a shop,” she said. “So, to me, (working primarily with men) isn’t that big of a deal. Shops are like big families and it doesn’t really matter that it’s mostly men. The men I work with are some of the most respectful and fun people I’ve encountered. They are very encouraging and supportive.”
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However, while Petersmann is happy to work alongside the men in the shop, not everyone has always been happy to have her there. That doesn’t bother Petersmann; she lets unfair criticism – gender based or otherwise – just roll off her back and encourages other young women pursuing diesel technician careers to do the same. “I’ve worked in three shops now and...have only run into one man that wasn’t happy to have me on the team,” she said. “Understand the field you’re going into: A shop is a unique and rough-cut environment, which some young women may not be used to, and that’s OK. You have to be willing to take a joke and have a little fun. Mechanics get through the day by giving each other hell. That’s just how it is, so don’t take things so personally. Work hard and prove yourself.” Less than three years into her career, Petersmann already has big plans for the future. She’s working toward becoming proficient in all John Deere agriculture and construction equipment, and hopes to one day become a shop foreman, have her own equipment shop or become a John Deere Capstone instructor. When she’s not busy working, Petersmann enjoys riding her two BLM mustangs – one of which she broke herself – building personal trucks, watching top fuel dragsters, and riding trail and track dirt bikes. For more information on 4Rivers Equipment, visit www.4riversequipment.com. March 2018 | Construction Equipment Distribution | www.cedmag.com | 45
>> VIEW FROM THE HILL
REP. TOM COLE (R-OKLA.)
The Economic Boost Bringing Confidence to Investors, Consumers The economy is poised to continue bearing fruit for all those seeking financial stability – small businesses, large corporations and the American workforce.
When the American people elected President Trump and a Republican majority, they expected big things in 2017. This past year brought with it several positive changes because the Trump administration and Congress have been focused on the American people’s priorities. One of the biggest accomplishments was the first major tax reform in more than three decades. And that’s just in year one. The American economy has grown tremendously since President Trump’s first days in office, and the growth trend seems likely to continue into 2018. In the early days of his presidency, Trump announced his intention to bring American companies back to the United States, and many complied. From the auto industry to the technology sector, the commitment to returning to American soil is set to bring thousands of jobs and millions of dollars in investments into the economy. That commitment also brought confidence to investors in the stock market. There were countless times in 2017 when the stock market reached and closed on new record numbers. In fact, 2017 was one of the best years for the stock market since 2013. All the major stock indexes rose to neverbefore-seen numbers in 2017, thanks to this administration’s focus on deregulation and tax cuts for all Americans. During the Obama administration, the U.S. economy was stifled by the bureaucratic practices and red-tape burdens created by an overactive federal bureaucracy. Hundreds of rules and regulations from the previous administration did not protect consumers and the workforce as intended. Instead, over-regulation took away thousands of job opportunities, crippled small businesses and killed American ingenuity. Under the Trump administration and Republican Congress, deregulation has been a major success. So far, dozens of regulations have been eliminated, and more are certain to be added to the list. Regulatory relief not only saves the government billions of dollars, it enables major businesses, corporations and workers to grow and thrive in a competitive market.
46 | www.cedmag.com | Construction Equipment Distribution | March 2018
In addition to milestones in the stock market, the U.S. unemployment rate has remained exceptionally low. Recently, the unemployment rate fell to 4.1 percent, the lowest it has been in 17 years. And overall, the U.S. economy added more than two million jobs last year. These kinds of numbers and positive assertions of job growth have not been seen since the 1990s. Many of these recent economic boosts can be attributed to the passage of the tax reform bill, which is certain to bring increased investments into the American economy, hundreds of thousands of new jobs, and major, large tax cuts for the American taxpayer across the tax code spectrum. Almost immediately after passage, many companies and corporations pledged to invest billions in the U.S. economy after receiving a large corporate tax cut. In turn, large investments will support job creation and encourage consumer spending. Furthermore, numerous corporations have committed to giving employees substantial year-end bonuses or increasing hourly wages. All of these factors help the U.S. economy in the long run and contribute to robust economic growth. A healthy economy leads to confidence on the part of both investors and consumers. I am optimistic that 2018 will bring continued growth and economic opportunity. The economy is poised to continue bearing fruit for all those seeking financial stability – small businesses, large corporations and the American workforce. This is just the beginning of what seems to be a promising future for the American economy. I look forward to working with the construction equipment industry to ensure sustained growth and prosperity for years to come. Congressman Tom Cole is in his eighth term representing Oklahoma’s fourth congressional district. Rep. Cole is a member of the House Appropriations Committee, where he is chairman of the Subcommittee on Labor, Health and Human Services, Education and Related Agencies. He also serves on the House Budget Committee and the House Rules Committee. In addition, Rep. Cole is a deputy whip for the House Republican Conference.
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March 2018 | Construction Equipment Distribution | www.cedmag.com | 47
>> RISK MANAGEMENT
ERIC STILES
AED PREFERRED PROVIDER
Sentry Insurance’s Tips for Preventing Data Extortion The threat to your data is real, but there’s good news: You can protect your dealership and your customers’ valuable information.
Q: What is “data extortion” and how can it affect my dealership? A: Consider the following scenario: An equipment dealership offers a machinery maintenance tracking program to customers, allowing them to directly manage and schedule service. Suddenly, customers can’t access their accounts. The dealership discovers that a ransomware attack has encrypted the data and a hacker is holding the data hostage, demanding a ransom to release the files. A data extortion event like this can paralyze your operations and send customers running for the door. Fortunately, there are actionable steps you can take to lower your risk. Front-end data security can make it harder for a hacker to gain access to your files, and security and data backup enhancements can limit the damages. In addition, data extortion insurance can provide extra peace of mind. The threat to your data is real, but there’s good news: You can protect your dealership and your customers’ valuable information. Take a look at the following suggestions to see where your dealership can make data security improvements. ▶ Identify sensitive data: Look for Social Security and driver’s license numbers, as well as
any health and financial information. ▶ Note where it’s located: Identify whether the sensitive data is electronic or paper, how it’s used, and whether you need it for business. If not, delete it. ▶ Back up data: Ensure any data critical to your dealership’s existence is secured and copied to a separate storage site. ▶ Ask an expert: Have a software/hardware security expert check your system for strong encryption and authorization protocols. ▶ Immunize your system: Make sure your antivirus software is current and effective. ▶ Educate employees: Train workers to recognize and delete phishing emails. ▶ Beef up passwords: Require strong user passwords and regular resets to toughen security. ▶ Avoid future problems: If you encounter an extortion demand, scan your database to make sure other malware hasn’t been attached that could lead to future attacks. You can take action to protect your data and safeguard against data extortion. Evaluating and fortifying your data now can prevent damaging hacks, keep your dealership running smoothly, and preserve your customer reputation.
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. 48 | www.cedmag.com | Construction Equipment Distribution | March 2018
Have a seat—we’ll steer you right Your insurance company should understand your risks—and your goals. With Sentry, great things happen when we learn what makes your dealership unique. That’s because we offer you custom insurance and related services—like smart risk management—to help you succeed now and over the long haul. Rely on us to dig in and do the heavy lifting, so you can invest more time bolstering your bottom line. Right By You
Let’s get the conversation started. Learn more about how we can help you manage costs and take advantage of opportunities at Sentry.com
Property and casualty coverages and safety services are underwritten and provided by a member of the Sentry Insurance Group, Stevens Point, WI. Individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. In New York, individual life insurance, group and individual annuities and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, NY. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. In New York coverage provided through policy form numbers: (Life insurance) 585-3000-01, 390-1000 (SLONY), 390-2003-SLONY; (Disability) 685-9000-31; (Dental) 785-7000; (Group Annuity) 840-300(NY); (Individual Annuity) 380-440. Short-term disability insurance is not available in New York. 73-710
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