We congratulate Power Equipment Company on 60 years of serving the construction community and look forward to being a part of their continued success.
N O RT H A M E R I C A 1327 Barclay Blvd. • Buffalo Grove, IL 60089 Toll-Free: (877) DNA-2001 or (877) 362-2001 www.dresstanorthamerica.com
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The Chattanooga branch, located near highways 153 and 58, was renovated in 2005.
Keeping up with the manufacturers is a continuous uphill battle for the folks in product support. Robins said there are usually 30 to 40 new models or changes in a model each year among the manufacturers Power represents. To ensure each branch’s product support departments are living up to Power’s standards, Robins and Tucker do their best to visit each branch once a month, usually as a pair. During these meetings, they evaluate the previous month’s performance and resolve issues face-to-face with the branch’s staff. “When we walk out of there, we’ve got our arms wrapped around the situation,” Robins said. With the vast range of the types of equipment it sells, its technicians are bound to have a specialty in a certain machine. And that information is shared throughout the chain. “We want that to be well known so we get the best folks to address the issue,” Robins said. When a situation is too complex to address over the phone, the technician with the expertise will travel to the other branch. Expanded Offerings The growing diversity of equipment it sells is one of the reasons Power decided to change its logo, which for years included a piece of dirt-moving equipment. The new logo doesn’t exclude customers working in other industry segments. Over the years, the company has taken on a vast array of machines and now deals with customers who need cranes and material handling equipment, paving and compaction equipment, forestry equipment, and compact equipment, in addition to the large earthmoving machines. Chris said the dealership would likely be able to expand its
Todd Nelson is the regional sales manager for the Knoxville and Kingsport, Tenn., branches.
Parts Counter Salesman Dave Robbins ensures the department is fully stocked. 11
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Congratulations Power Equipment Company on celebrating 60 years in business.
When it comes to loading and hauling large amounts of material, speed and capacity mean productivity. But to turn that productivity into profitability, you have to consider maintenance, fuel efficiency and reliability. The Komatsu WA600-6 and HD605-7 fit this equation perfectly. • Fuel-efficient, Tier-3 engines and optimized hydraulics deliver maximum work per gallon. • Precise, responsive controls allow for faster cycle times. • Advanced diagnostic technology simplifies maintenance and service. When every minute—and every dollar—count toward your bottom line, rely on the rugged dependability of precision-engineered machines that are…
100% Komatsu.
847.437.5800 13
www.komatsuamerica.com KA18
PICKING UP FOR 60 YEARS! SENNEBOGEN America is pleased to be part of Power Equipment as they get ready to celebrate their 60th anniversary. SENNBOGEN offers purpose-built machines suited to any heavy-lift or ‘pick & carry’ application from scrap yards to lumber yards. Contact the professionals at Power Equipment for the right SENNEBOGEN. Wheeled, tracks or pedestal mounted. Get the one that suits your needs. For professional sales and service contact Power Equipment. They have been doing it successfully for 60 years.
3300 Alcoa Highway, Knoxville,TN 37920 Tel: (865) 577-5563 Fax: (865) 579-7365 www.powerequipco.com TUPELO, MS 662-869-0283
CHATTANOOGA, TN 423-894-1870
KINGSPORT, TN 423-349-6111
KNOXVILLE, TN 865-577-5563
MEMPHIS, TN 901-346-9800
194-338 Power-60th 7.25X4.625 4C.indd 1
NASHVILLE, TN 615-213-0900 10/26/06 4:19:24 PM
Congratulations on your 60th anniversary, Power Equipment Company.
A Solid Reputation. It takes integrity, dependability and quality to maintain a solid reputation for decades. Power Equipment Company knows what it takes, and so does Prentice, having built market-leading offroad equipment since 1945. Like our rugged line of site prep tractors, engineered to deliver the highest level of strength and dependability in the industry.
Available in 220 or 260 horsepower models, Prentice Site Prep Machines feature load sensing hydraulics for smooth power, precise control and fuel efficiency. A Quik-Tach attachment coupling system allows you to easily change attachments from power mulchers, to stump grinders, to rotary mowers.
For more information visit us online at www.prenticeforestry.com
Built Better Than It Needs To Be www.prenticeforestry.com 14
Dannie Smith, branch manager in Chattanooga, Tenn., shows off one of Komatsu’s biggest trucks.
Scott Sanchez, service technician, completes some paperwork in the Knoxville shop.
offerings, but “we don’t take lightly bringing on or dropping product lines. Too much of that sends a bad message to the customer base.” To ensure the customers in each sector are getting the service they need, some salesmen at Power are devoted to specific industry segments. Throughout the chain, four specialize in compact sales, three in forestry and two in rentals. The company expects to add a crane and material handling specialist as well. Of its offerings, approximately 65 to 75 percent of Power’s business comes from the sale of Komatsu machines, both full-sized and compact and the corresponding parts and services. “They make an excellent machine,” Chris said. “Komatsu is clearly in the top tier.” He said the Komatsu line speaks for itself, but it takes a strong organization to promote it to win over their customers. Like Komatsu, most of the equipment Power represents ranks first or second in their respective markets. Another of its manufacturers is Ingersoll Rand and BlawKnox. Its Ingersoll Rand offerings include soil and asphalt compactors, small compaction equipment and the Tramac line of hydraulic hammers and attachments. And Power is able to serve the road building market with its line of BlawKnox pavers. “They are the clear leader in paving and compaction,” Chris said. He calls the Ingersoll Rand company, “an excellent representative of the construction industry and a natural fit” for Power and its customers. When it comes to cranes, Power offers Kobelco in Eastern Tennessee and Tadano throughout its entire territory. In addition, Power represents the Sennebogen line of material handlers. In a move that took Power in a whole new direction, it began selling forestry equipment in its Tupelo trade area in 2000. The equipment has proven especially important to the Tupelo branch, as it accounts for approximately half of its market opportunity, even for construction-type products. Power first took on Blount Inc.’s Prentice and Hydro-Ax lines
The Memphis branch covers Western Tennessee and parts of Arkansas.
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The newly renovated shop in Tupelo, Miss., is packed with equipment.
ing in its rental fleet. The timing proved beneficial, as the market tanked in 2002 following 9/11 and contractors’lack of confidence in the market persuaded many not to purchase equipment. “Because of our rental fleet, we had availability of equipment in a down market no one else could match,” Chris said. Because of its investment, Power picked up several major customers, some of whom are still around today because of the availability of rental machines during that era. And now, in better economic times, when companies are seeking a piece of rental equipment, “we’re the first call. They know we’ve got it,” he said.
Field Technician Jackie Hellums checks out the inner workings of a dozer.
in 2000 for Northern Mississippi and Western Tennessee. But it made a bigger leap into the market in 2004, a year after Komatsu acquired Partek Inc. and its Valmet and Timbco line of mechanical harvesters and processors. Chris said the new company, Komatsu Forest, has pressed for Komatsu’s existing network of construction equipment dealers to take on the forestry line and Power determined it would be an excellent opportunity. The forestry line is proving to be so popular among Power’s customers that Moon foresees it becoming its own division within Power, run by its own general manager. It already accounts for 7 or 8 percent of the company’s revenues and has strong upside potential for growth. Power also sells equipment from Bandit Industries, Broce, Construction Equipment Company, Dressta, Etnyre, Genesis, Hultdins, and Mantis cranes. Power Equipment doesn’t focus all of its resources on selling machinery. In the early 2000s, the company began invest16
Business at the Branches Power Equipment’s branches are overseen by three regional sales managers and one branch manager: Todd Nelson in Knoxville and Kingsport, Tenn.; Ben Sparks in Nashville, Tenn.; Darryl Thompson in Memphis, Tenn., and Tupelo, Miss.; and Branch Manager Dannie Smith in Chattanooga, Tenn. When Nelson first came on board at Power (after being sought out by Roy Gaylor) nine years ago in his current position, he said the sales team at the Knoxville branch were mainly focused on its mid-sized customers who had been Power customers for decades. But as the Komatsu line took hold at Power, the focus expanded to include much larger mining companies or road builders. From Nelson’s two branches, which employ approximately 60 people, Power serves 33 counties in Eastern Tennessee. The biggest change Nelson has seen at Power during his tenure is the emphasis on the certified rental program. At the turn of the millennium, Power’s rental offerings were limited to rent-to-sell fleet, which would fluctuate based on the size of the market, but the Bramco organization now has approximately 500 to 600 machines available in its Certified Rental
The Mississippi branch is located just outside of Tupelo at 1545 Highway 45 in Saltillo. (rent-to-rent) fleet. Nelson said the rental business (in which he worked prior to joining Power) was almost an afterthought in the construction business as recently as a decade ago. But that has changed vastly as the needs of contractors have changed. He said tax laws have inspired more contractors to choose to rent equipment. Additionally, competition has required contractors to cover larger geographical areas with smaller fleets and fewer operators, so Nelson said it sometimes makes more financial sense to rent equipment to complete a particular project. He said that especially the larger firms are becoming more reliant on rental equipment and the service departments of their dealers. In his approximately 20 years of experience renting and selling construction equipment, Nelson said changes to the machines keep coming faster and faster. “Customers are now more than ever dictating what’s happening in the business. Manufacturers are more reactionary than visionary,” he said. But the manufacturers’ ability to re-engineer and redistribute their machines at a faster pace has required the staff at Power to stay on its toes and adapt as needed. “People want convenience; they’re not scared of technology like they used to be,” Nelson said. From the Memphis, Tenn., branch, Regional Sales Manager Darryl Thompson also oversees Tupelo, Miss. The territory includes everything west of the Tennessee River in Tennessee, west of the Tennessee-Tombigbee Waterway in Mississippi and the northeastern counties in Arkansas. The Tupelo branch is a bit different from the others in the chain in that approximately half of its business is related to forestry. That has required his team of salesmen “to have a working knowledge of the logging industry and the type of work the customers are doing,” Thompson said. Like construction equipment, forestry machines have
Welder Ed Hicks works in the Knoxville branch. become more computerized, especially harvesters, which can be programmed to take down the tree from the stump and remove its limbs. Thompson expects business from the construction industry, which includes a lot of excavating firms and one of the largest road builders in Mississippi, to remain steady. “We would like to capture more of the forestry market,” he said. In Memphis, Thompson deals with a variety of customers in the construction industry, as well as some large steel mills in Arkansas. In Tupelo, Thompson supervises two full-line salesmen and two product support representatives (one each for the construction and forestry customers). The Memphis sales team includes four full-line salesmen, two product support representatives, one rental salesman and one utility salesman. Thompson said it is important to have someone dedicated 17
Congratulations to our friends at
Happy 60thAnniversary! We look forward to a successful future together.
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Darryl Thompson, the regional sales manager for Tupelo, Miss., and Memphis, Tenn., has been with Power since 1995.
Ben Sparks is the regional sales manager in Nashville, Tenn.
to rental and utility customers, as their needs tend to vary from those purchasing large equipment. Both of these customers generally are completing jobs in the metropolitan area. The rental customers tend to be out-of-town contractors, while those buying utility equipment tend to be landscapers or those in other specialty trades. While it may take more work for the sales and service staffs to keep up to date on the vast range of applications seen in this territory, Thompson said it creates a more stable income for the company. By being well diversified, Power has protected itself if any one of these sectors takes an economic downturn. In Thompson’s tenure with Power, which began in 1995, he said he has seen a dramatic improvement in the way the company communicates internally and with its customers and vendors. The equipment purchasing process has evolved into an
almost paperless procedure, although Thompson said they always adapt to the technological capabilities of their customers. Power’s communication capabilities translate into getting the correct answer for its customers faster, Thompson said. The impact of the information age can be seen among contractors, too. The availability of information online about construction equipment has created a generation of contractors well-versed about their options. Thompson said their knowledge smooths out the purchasing process, as the customers tend to come in already knowing what machines they need for their application. Smith, the branch manager in Chattanooga, said his location deals with a higher percentage of small contractors who tend to purchase excavators and small and medium-sized dozers. And most of these companies are family-owned. Smith said the new generation of owners have worked their way through the ranks by running the machinery. They also are much more knowledgeable about the equipment and more receptive to changes in the industry. Smith said the customers and the employees have welcomed him to the company. “They understand that my goals and their goals are aligned.” The Chattanooga branch caters to a broader customer base. Forestry equipment is “an emerging market” in Smith’s branch and there is a concerted effort to grow that part of the business. As Komatsu continues to promote forestry equipment, Smith said Power will keep up with the effort each step of the way. Smith joined the Power team in the summer of 2006, but had spent the previous 23 years working for manufacturers. He oversees 20 employees at the branch, where he is directly responsible for all of its functions. Sparks, the regional sales manager in Nashville, Tenn., appreciates the trust that the upper management has on their employees. “Our leadership allows us to make decisions without calling them,” said the 12-year Power employee.
Purcell Williams, a technician in Memphis, takes his work outside of the shop for this Komatsu backhoe.
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Power Equipment Updates Image to Mark 60th Anniversary By Jeff Cronin CEG ASSOCIATE EDITOR
A renewed energy is palpable inside the Knoxville, Tenn., headquarters of Power Equipment Company. Its employees buzz from room to room. They share a joke or a friendly greeting with one another as they go about their duties. But the moments of congeniality don’t distract them from their mission to ensure each of their customers is well taken care of. For 60 years, Power Equipment Company’s customers have experienced first hand the devotion of its employees. And now the company is taking steps to let the rest of the construction industry in on the secret. In 2006 — six decades after R.S. “Tommy” Tucker first opened Power Equipment’s small office building and shop — the company began an initiative to make the public aware of the hard work and care it has consistently provided. Plus, said President Chris Gaylor, Power needed to send a more consistent message to its different types of customers in its different territories. The result? “The Power to Perform.” Gaylor said the new slogan informs potential and current customers that the company has in its grasp the personnel, products and services to meet all of their equipment needs. “What we have as our strength is our company and our people,” said Vice President of Sales Andy Moon. “This has been the case all along.” He added that just because the company believes it is doing a good job already, doesn’t mean it isn’t constantly striving for improvement. But that’s always been the case. Finding a Niche Growth for the fledgling Power Equipment came quickly. It opened its first branch location just a year into its existence in Chattanooga. The Kingsport branch soon followed in 1951. And in 1957, Power bought out Industrial Tractor & Equipment Co. to move into Nashville. In the coming years, Tucker was never satisfied with the status quo. He continually upgraded the company’s facilities. New branch locations were built in Knoxville in 1960 (the company’s current headquarters), in Chattanooga in 1973, in Kingsport in 1974 and in Nashville in 1985. The territory and locations were still being adjusted even after Power came under its current ownership. It sold its operation in Norton, Va., in 1991, which had been in existence since the mid-1980s. The same year, it sold its operations for Dresser in eastern Kentucky to what would soon become its 2
new sister company, Brandeis Machinery & Supply Corporation. Power had the Dresser account for the entire state of Kentucky since the mid-1980s and had stores in Evansville, Louisville and Pikeville. At the time of the sale, however, only the Pikeville location remained. In 1991, Power moved into Memphis when it acquired Midco Machinery. In 1995, it acquired the rights to the Komatsu line for West Tennessee and North Mississippi from Rish Equipment Company, making it the only full-line, fullstate distributor in Tennessee. Power opened a branch in Tupleo, Miss., in 1997 to better serve its customers in the North Mississippi area. This location moved to Saltillo, Miss., in 2000. That same year, the Nashville branch also moved to a new, larger facility. The Gaylor Era Amid the era of expansion under Tucker’s watch, a man who would one day lead the company was hired as its assistant treasurer. Until 1977, Roy Gaylor had worked at International Harvester’s finance division. But his career thrived in his new company. He became treasurer in 1978 and president in 1989. A few years later, it was time for Tucker to make his exit from the business. His children opted to pursue other paths in
Chris Gaylor, president (seated), and Andy Moon, vice president of sales, have successfully guided the company during both good and bad economic times. The company took some chances that have paid off well for both Power and its customers.
Saluting
Power Equipment Company for 60 Years of Excellence.
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Much of the business in Nashville, Tenn., comes from contractors building residential and commercial developments.
Shop Technician Richard Owen investigates a machine in the Memphis branch.
From humble beginnings the company has flourished and prospered since its founding in 1946.
Charles Gremillion, rental technician in Memphis, loads a Komatsu dozer for delivery.
Sparks said the company has remained successful because of its ability to react quickly to customer needs. Several of his salesmen have been around for more than a decade and have built solid relationships with their customers. Most of the Nashville market is driven by residential and commercial development, as road construction has dropped in recent years. Power also has a few limestone quarries among its customers in this area. Sparks started in the construction industry in college, when he worked for a paving contractor. It’s the personalities of the people involved in the industry that kept him involved, he said. The Nashville branch saw a surge in hiring in 2006, including the addition of a salesman devoted to the forestry line. Sparks is focused on growing both the forestry and utility lines.
options of how equipment and parts are acquired come forth. He also said the company will likely have to adapt how its rental business is run and what type of equipment is available for rent. But whatever changes come, Chris expects the manufacturers will assist Power along the way. “The strength of a distribution organization is vital to the success of the manufacturers,” he said. Power’s territory will likely remain stable as it focuses on growing the business within its current geographical borders. Leis said there are four to six years of significant growth opportunities ahead for rental equipment, the forestry market and the crane and material handling market. Still, he said it’s important they maintain the role for which they’ve become known. “They have a unique relationship with mid-sized customers,” Leis said. “They are so fast in the response to these customers’needs. That’s been a part of its strategic excellence that they’ve held in this market for some time.” As the staff celebrates its past, it still looks toward future success. “What drives us every day is to continue to see Power grow. While we’re not responsible for Power’s early successes, maybe we can claim responsibility for it staying around for another 60 years,” Chris said. CEG
The Next 60 Years While the management team at Power Equipment Company can’t predict what the future will bring, Chris said he’s making sure everyone is light on their feet and will be able to deal with any changes the coming years bring. “We have to remember that this is a very fluid industry,” he said. He expects the role of a dealership will change as more
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The world doesn't become a better place on its own. Fortunately, the world has you in it. CitiCapital® congratulates Power Equipment on its 60th anniversary.
CitiCapital Construction Equipment Finance Mid Atlantic Region 865-681-9204 5250 77 Center Drive, Suite 100 Charlotte, NC 28217 harry.j.newman@citigroup.com
© 2006 Citigroup Inc. Citi with Arc Design and CitiCapital are registered service marks of Citigroup Inc. Citigroup is an equal credit opportunity lender.
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George Tibbs (L), former executive of Power Equipment; Chris Gaylor, Power Equipment president; and Roy Gaylor (R), past president of Power Equipment greeted their friends at the 2006 event.
(L-R): Van Tyler of Van Tyler Grading & Excavating in Knoxville, Tenn.; Chad Clenney of Valley Excavating in Lenoir City, Tenn.; Becky Frye and Todd Nelson, both of Power Equipment; and Duane Dickens of Explosive Specialists in Knoxville pause for a picture at the 2006 tournament.
Power Shows Appreciation for Customers With Annual Golf Outing Each year, Power Equipment Company welcomes its customers to the Fox Den Country Club in Knoxville, Tenn., for a Customer Appreciation Day. Many who attend the event leave with an array of door prizes, such as drivers, putters, umbrellas and shirts.
Doug Blalock, of Charles Blalock & Sons in Sevierville, Tenn., watches as his ball finds the fairway during the 2005 customer appreciation day.
Dennis Sullivan of East Tennessee Grading in Chattanooga, Tenn., practiced his putting, prior to the 2006 event at the Fox Den Country Club in Knoxville, Tenn. 23
Mike Lambert of Vulcan Materials in Nashville, Tenn., lines up the putt for Ben Sparks of Power Equipment during play in 2005.
life, so Tucker looked to Gaylor. In 1993, the company’s reigns were passed. Gaylor maintained the position of president after he took ownership. Chris Gaylor, Roy’s son, said the ownership change produced “a breath of fresh air” for the company. He said the management team was always receptive to new ideas and made a lot of changes to how the business was run. He described the new atmosphere as a “get-it-done culture.” The new era of Power Equipment was a successful one. The markets were growing and each year proved to be better than the last. The company’s success attracted the attention of Charles Leis, president and COO of Louisville, Ky.-based Bramco, who approached Roy about the possibility of a merger in 1997. Under New Ownership The merger was complete in 1998 and Power became a wholly-owned subsidiary of Bramco, which is owned by Jay Paradis. Together with its sister company, Brandeis Machinery & Supply, the new force in the construction equipment industry boasted 500 employees in 15 branches. The parent company has stayed behind the scenes and did not overtake any part of the business that directly impacts the customers. It mainly provides back-office services, such as employee insurance, treasury or cash management. Leis said he had known of Power Equipment since its beginning and was well aware of its solid reputation, as Brandeis had shared a common border with it for years. Bramco had just sold its rental outfit, Resco Rents, and was looking to reinvest in the equipment industry.
Jim McNeillie, vice president/finance manager and Tracy Hitch, controller, ensure cash flows steadily throughout the organization.
He said there were a lot of common goals between Power and Brandeis, the biggest of which was the shared desire to become bigger players in Komatsu’s distribution web. The best way to accomplish that goal is an expansion of territory, Leis said. Plus, Power would be able to represent Ingersoll Rand and Blaw-Knox following the merger. In order to make the transition a smooth one, Bramco
Bob Tucker (L), senior vice president of product support, and Shawn Robins, vice president of product support, speak with a group of technicians in the Knoxville branch’s shop. 3
6a0rs
Yeservice
Congratulations Power Equipment.
Of
We’re proud to be your partner.
We salute Power Equipment for 60 years of outstanding service to the construction market. You can count on Power Equipment for exceptional service and equipment featuring Ingersoll Rand pavers, compactors, and attachments. Be sure to visit one of the Power Equipment locations for all your jobsite solutions.
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The original Nashville, Tenn., location was located on Sixth Avenue North.
required the retention of management. Leis said the only thing customers should have noticed following the merger is that Power had a bigger pool of resources from which to draw. Since then, every one of Power’s branches has been rebuilt or renovated. While Power and Brandeis work as separate entities, the management teams regularly meet to discuss business strategies and the sharing of resources. Moon said there is a daily interaction, too, which involves the sharing of new and rental equipment. While the management structure of the company had just been altered, another big change was only a year away. Roy retired in 1999. Soon after, Chris, who, at 36, only had three years of experience at the company, became its president in 2000. “I had a lot to learn,” he said. Chris admitted the decision to take the helm of the company was made with a bit of trepidation, but those who have seen Power’s continued success since then said he had nothing to worry about. Moon said Chris inherited his father’s analytical process of decision making, in which he gathers the facts quickly and chooses a path. And, Moon added, he has earned the respect of Power’s employees who, even if they disagreed with a particular decision, would still operate to support it once the matter has been closed. Since the start of his tenure as president, Chris has sought advice from Leis, who he described as “more of a mentor than a boss.” Leis said he “stayed close” to Chris at the beginning of his
time as president, while ensuring a level of autonomy. “He brings a lot of energy to the job.” Perfecting its Image While the nameplate on the desk in the corner office isn’t changing, Power Equipment is experiencing yet another era of change. The goal of customer satisfaction through personal service remains at the forefront, but some of the ways in which that is being accomplished are changing. For example, Power added a customer support representative to its staff in 2005. Based in Nashville, Roger Jackson is responsible for tending to the company’s largest customers. Moon said the person in this role becomes the name and the face of Power for the major contractors. Through Jackson, the select few customers can expect an immediate response to a question or a service need. He has been given the authority to pull resources from Power’s other departments to resolve the customer’s issue as quickly as possible. The position was created after discussions with one of its largest customers. It said, because of the vast amount of equipment it purchases, it looks for dealers that will eliminate problems immediately. With the extra level of support afforded by a customer support representative, Chris said Power is able to expand its customer base, which has historically been smaller contracting companies, and look toward some of the region’s major players. While the person in another new position has no direct contact with customers, the work that he does could result in a major reduction in downtime at a job site. Director of Technician Careers Bill Corrie is responsible for getting tal5
Congratuations POWER EQUIPMENT COMPANY on your 60th anniversary Whenever you need Bituminous Distributors, ChipSpreaders, Street Flushers, or Heavy Duty Trailers choose Etnyre and Power Equipment for proven dependability.
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The company’s Knoxville location is at 3300 Alcoa Hwy.
ented technicians inside of Power Equipment’s and Brandeis’ shops from what has been a minimal pool for years. Chris estimated that Bramco’s two companies will need to hire 400 additional technicians over the next 10 to 15 years. While Power optimally wants to hire a technician with some experience, the company is willing to train the right people through its apprenticeship program. Chris said it was important for his company to invest some of its resources to mold its own talent. Over a five-year period, someone right out of high school or a community college
could become a certified technician. The company is seeking dedicated talent to man its shops, but Chris said it takes a special candidate to be sent out into the field to make service calls. A field technician is out there on his own and needs to be proficient in all skill sets, as there is nobody in the next bay who can answer a question. Additionally, a good field tech must be able to work with the added pressure of the customer looking over his shoulder. While seeking fresh, young talent, Power, too, is trying to come up with ways of retaining its experienced technicians
The Knoxville location features all of the latest in service technologies to keep its customers up and running. 7
Power maintains a large inventory of products for its customers.
nearing the end of their careers. The physical demands of technicians, especially those in the field, can become too much to handle. But there are a few ideas being tossed around that would keep their experience on staff. The tone in his voice softens with regret when he recalled one of the most technically proficient people he had in his shop who was forced to leave after being diagnosed with heart problems. “We didn’t have anywhere for him to go,” Chris said. “This type of technical competence is priceless in the industry and we have been wasting it.” Power may create a call center to be staffed by older technicians, who would assist customers through difficulties over the phone. The product support department is led by Senior Vice President Bob Tucker and Vice President Shawn Robins. Tucker primarily oversees the parts departments, while Robins tends toward the service departments of all six branches. The parts managers and service managers at each branch report directly to Tucker and Robins. The department employs approximately 80 technicians, 35 parts department people and has a fleet of 45 service trucks. Both figures have grown significantly over the past few years. During this growth spurt, Power upgraded its shops in
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Roy Gaylor Leads Power Through Bramco Merger Even in his retirement, Roy Gaylor maintains his passion for the business world. As the former owner of Power Equipment Company details the successes of the company under his watch, one can hear the drive and passion he put into his business dealings. But Gaylor almost didn’t play a role in Power’s story. The Knoxville, Tenn., native attended the University of Tennessee on a baseball scholarship and was being recruited for the big leagues. There were offers from a few franchises, none of which matched the offers coming from the business world. With a wife and three children to care for, Gaylor opted for a stable career path and took a position in the credit department at International Harvester Company, which would eventually be known as Dresser. His career at International Harvester took him to Memphis, Atlanta and Chicago. But during his time with the company, which 8
Memphis, Nashville and Tupelo. Robins said the new effort to recruit technicians has been working. “No doubt the decision to do this was a good one,” he said. Even though its program is an attractive one, Power still has difficulty finding candidates in what has been a tight labor market for years. But they’ve targeted the most likely spots for success — chambers of commerce, which could inform them of businesses about to announce a round of layoffs; technical schools; and Internet sites such as the Association of Equipment Distributors. It also has recruited people from Komatsu’s technician program at Oklahoma State University. As a side project to Power’s apprenticeship program, the company may start a “Power University” of sorts for its customers that could cover training in machine operation, maintenance and safety. “We have a lot of customers who could use this,” Chris said. A dealership gets a “black eye,” said Robins, if it isn’t able to provide a part or if a repair doesn’t hold up. He said that most equipment in the marketplace is well made, but it takes a good product support department to make one dealership stand out above the others. Robins said that proves especially true with the larger contractors who can’t afford to have machines down for too long on significant jobs.
Rental Technician Bobby Brown works on a Tramac hammer in the Knoxville shop.
••••••••••••••••••••••••••••••••••••••••• also included a position in the finance department, he found himself working with a dealer from his hometown — Power Equipment Company. In the late 1970s, Power’s treasurer, Pete Denton, started recruiting Gaylor to join the dealership. Changes were approaching in Power’s management structure and they wanted Gaylor on board for the ride. “I was in my mid-30s and I thought I had a great career,” Gaylor recalled. A final push was made during the Association of Equipment Distributors conference in San Francisco. The offer and the thought of moving back home won out and Gaylor became the company’s new treasurer in 1977. Denton was appointed its president. Through his work at International Harvester, Gaylor saw first-hand the lifestyle that some of the heavy equipment dealers lived. With his strong business sense and drive, Gaylor knew he could achieve the same level of success. In 1989, Gaylor took over as president when Denton retired. It was during this period that Dresser aligned with Komatsu and Power was making a strong push to represent the Komatsu line throughout Tennessee. There were some territorial issues with which to deal and Komatsu wanted to see a clear plan of succession for the ownership of Power. That’s when Power’s owners, Don and Tom Tucker, approached Gaylor about taking over the company. He admitted to being hesitant at first, but the Tuckers finally convinced him that it was a sound financial move. Gaylor took ownership of the company in 1993. He soon
brought on two men to his ownership team — George Tibbs and Jerry Hall. “We started working and things started turning around,” Gaylor said. “When I bought the company, we did $36 million in sales that year. The year we merged with Bramco, we did more than $100 million.” The merger with Bramco was finalized in 1998. Gaylor said he’s pleased with the direction the company has gone since his departure. “We battled with Brandeis [a subsidiary of Bramco] in the past, but there was always a mutual respect,” he said. Gaylor said he misses some aspects of the construction equipment business, especially the thrill of the chase. As owner of the company, he always played an active role in the company’s biggest deals. He pointed to the last big deal he ever made — when Power successfully sold 10 80-ton trucks to a customer who was comparing Komatsu’s machines with three other manufacturers. Gaylor said the personal connection he had always built with his customers was the key to winning this deal. With Komatsu’s help, the customer had its own ramp set up at the manufacturer’s distribution center in Ripley, Tenn., where it could pick up its own parts. Gaylor believes he left his thumbprint on Power Equipment and said its current employees understand the importance of building personal connections with their customers. CEG Staff 9