Journal of Equipment Management 2021 by ForConstructionPros.com

—JOURNAL OF—

DAN HUBBARD, CEM | AEMP 2021 CHAIRMAN

REFOCUS ON THE NEW HORIZON NOW IS THE TIME TO FOCUS ON STRENGTHENING AND EMPOWERING OUR EMPLOYEES. HOW TO BOOST PROFIT WITH CONSTRUCTION FLEET MAINTENANCE TECHNOLOGY 2021 | www.aemp.org

ADJUSTING TO CLIMATE CHANGE BRINGS CHANGES TO FLEET MANAGEMENT

DIVERSITY AND INCLUSION PROVE PROFITABLE

HOW TO PREPARE NOW FOR FUTURE OF ELECTRIC CONSTRUCTION EQUIPMENT

THE EQUIPMENT MANAGEMENT SPECIALIST (EMS) CERTIFICATE AEMP’s education is focused on building excellence in equipment management and is designed for professionals in the equipment management and equipment supply industries. Our Equipment Management Specialist (EMS) online educational program leads to earning the AEMP Equipment Management Specialist (EMS) Certificate. The Equipment Management Specialist Certificate is an assessmentbased certificate recognizing the competency of an individual involved with equipment in a private, municipal, or government fleet within the first five years of career development. This certificate serves individuals who want to obtain the skills, knowledge, and competencies necessary in equipment and asset management, to better understand the depth and breadth of the equipment industry, and to gain the ability to interact on a higher level with fleet-related professionals.

Pursue the Equipment Management Specialist (EMS) if you:

• Are interested in taking the first step toward certification.

• Have fewer than five years’ experience in equipment management.

• Are an end user or supplier in the industry

• Desire to know, define, identify and recall information presented in the Career Equipment Fleet Manager Manual.

Visit www.aemp.org/certification

Course Details: This course is online self-study and is self-paced. This means that candidates will guide themselves through the material and activities under no set schedule. However, all course materials are available for the duration of one year from the candidate’s enrollment date. It is estimated that the time required to complete the course is between 35-40 hours.

AEMP Strategic Alliance Partners

And Strategic Media Partners:

WHY AEMP CERTIFICATION? Top 5 Reasons Equipment Management Professionals seek CEM certification:

#1 Maximize your company’s bottom line #2 Find new efficiencies for your fleet #3 Expand your knowledge and gain new skills The Certified Equipment Manager (CEM) designation is the premiere professional credential for managers of off-road heavy equipment fleets or managers of municipal government fleets. If you are ready to showcase your knowledge and prove your position in the equipment management sector as a subject matter expert, take action today and find out what CEM certification can do for you!

#4 Advance your career #5 Earn the industry’s most recognized credential

Visit www.aemp.org/certification

AEMP Strategic Alliance Partners

And Strategic Media Partners:

—JOURNAL OF—

CO NT EN TS 70

06 The Year of the Pandemic 08 AEMP Board Members 12 Refocus on the New Horizon

16 Top Experts Share 5 Insights That Will Change Construction Fleet Management 28 AEMP, John Lennon, and The A-Team: Making the Best of a Unique Time

32 How to Boost Profit with Construction Fleet Maintenance Technology 42 AEMP Best Equipment Rental Practices

50 How to Prepare Now for Future of Electric Construction Equipment

58 Empathetic Leadership: Skills for Leading During High Stress Times 66 AEMP Women in Equipment Leadership 70 Adjusting to Climate Change Brings Changes to Fleet Management 78 AEMP Equipment Management LIVE: Highlights and Summary 80 AEMP Equipment Management LIVE Highlights: Infrastructure - Capitol Hill, the White House & Beyond 86 Diversity and Inclusion Prove Profitable 92 Is Social Media Putting Your Equipment At Risk? 98 What Gets Measured, Gets Done: Preliminary Results from the AEMP Joint Taskforce 99 Rehiring and COVID 20 2 1 | A E M P .O R G

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50 Dan Hubbard, AEMP 2021 Chairman, says a diverse workforce and developing employees’ potential are key for 2021 and beyond.

REFOCUS ON THE NEW HORIZON

NOW IS THE TIME TO FOCUS ON STRENGTHENING AND EMPOWERING OUR EMPLOYEES.

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CONNECT

WITH US Journal of Equipment Management

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AEMP

Chairman’s

THE YEAR OF THE PANDEMIC DAVE BOLDEROFF, CEM - 2020-2021 CHAIRMAN OF THE BOARD

offerings for equipment management professionals will continue to be the number one value proposition for members. As equipment managers, we need to ensure our staff are well trained and have succession plans in place to fill key roles. This past year’s events have highlighted this more than ever. This inevitably requires high-quality training and education, and that’s where AEMP can help provide value to you and your companies.

o say it’s been an interesting year is an understatement! The COVID-19 pandemic restricted the way the association, like many others, operates. One of the major benefits of being involved in any association is the ability to meet and network with like-minded professional in the industry. The pandemic brought all large in-person events and conferences to a grinding halt. So, associations like AEMP had to rethink and pivot to engage members and provide value to them.

PARTNERSHIPS Over the past year, AEMP has developed several new partnerships. We have welcomed several new Strategic Alliance Partners to the association and collaborated with a number of other associations and companies to work on training and data projects. Partnerships will play a key role in advancing the association over the coming years. Leveraging other resources is necessary to carry out the timely work of the association and provide valuable resources to members.

VALUE PROPOSITION AEMP has been well recognized as a provider of cutting-edge training and education for equipment management professionals. Some would say, “a university disguised as an association”. The association staff and committees did an incredible job of quickly changing the conference education to a virtual format. Well done! AEMPs education, training, and certification

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©DMITRY KOVALCHUK – STOCK.ADOBE.COM

CORNER

SUSTAINABILITY

We need people from a wide variety of backgrounds that can help solve tomorrow’s problems. A diverse community will ultimately make the profession stronger. In order to achieve this, we as professionals in the industry must be welcoming and value alternative opinions, developing a sense of trust and respect. Through inclusion, we will be more resourceful, leading to a more sustainable approach to equipment management.

Throughout the year I continued to place an emphasis on educating AEMP members on sustainability and how the issue will impact our profession over the coming years. Today we are seeing it incorporated in AEMP’s training and education offerings. It has been encouraging to hear the positive feedback from the members. I want to encourage all AEMP members and equipment management professionals to educate yourselves on sustainability and identify ways to incorporate it into your businesses and work practices. Be the sustainability champion within your companies. This will benefit you, your company, and future generations.

CONTINUITY

It has been a great pleasure for me to serve the Association as Chairman over the past year and follow in the footsteps of some of the great thought leaders in the profession. Dan Hubbard, CEM will take the rope and lead the association starting in March, followed DIVERSITY & INCLUSION by Tim Morgan, CEM, in 2022. I have worked Diversity and inclusion has been a hot closely with both Dan and Tim over the past topic this year. Today it’s the goal of AEMP year and have great confidence in their ability leadership for all members to feel inclusive in to lead the association. Both have extensive the association. We value all your opinions and industry experience and a desire and strongly encourage you to get involved in the commitment to build excellence in equipment volunteer committee work of the association, management. so your voice can be heard. It is also extremely promising to see a As a profession, we need to do new wave of younger professionals a better job in expanding and that are very motivated and attracting more diverse getting involved in demographics committee work and into the workforce. WE NEED PEOPLE leadership roles. This FROM A WIDE association is in great VARIETY OF hands and it will be BACKGROUNDS exciting to watch the THAT CAN HELP SOLVE TOMORROW’S association continue to PROBLEMS excel and grow over the next few years. In closing, I would like to thank Donte Shannon, FASAE, CAE, and the AEMP staff that continue to support the Association and its membership. Your enthusiasm and dedication make this association great. I look forward to connecting with you all in person at a conference in the near future.

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The Journal of Equipment Management (JEM) is the principal publication of the Association of Equipment Management Professionals. The JEM provides a serious source of thought-leadership that advances the equipment management profession. Statements of fact and opinion are the responsibility of the authors alone and do not imply an opinion on the part of the officers or members of AEMP. Submitted articles are reviewed by members of the Editorial Committee. Submit article proposals and completed manuscripts to chris@aemp.org. For further information on equipment management topics, or to provide opinion of contributors, contact: Publisher, AEMP, 1818 Parmenter St, Ste 300, Middleton, WI 53562, or call 970-384-0510. ©2021 AEMP. Published by the Association of Equipment Management Professionals. Produced by AC Business Media. All rights reserved. Materials may not be reproduced or translated without written permission from the publisher. Contact AEMP for reprint permission. Editorial Offices: Chris Turek, 970-384-0510, chris@aemp.org

2020-2021 AEMP

BOARD OF DIRECTORS EXECUTIVE COMMITTEE

Chairman of the Board Dave Bolderoff, CEM, Los Angeles County Sanitation Districts Chairman Elect Dan Hubbard, CEM, CRH Americas Materials Secretary Treasurer Tim Morgan, CEM, Branch Civil Inc. Immediate Past Chairman Mason Ford, CEM, Skanska USA Civil Chief Executive Officer Donté Shannon, CAE, AEMP, Ex-Officio

BOARD OF DIRECTORS

AEMP

AEMP and the AEMP Foundation work together to bring the most comprehensive collection of services and resources to equipment management professionals. AEMP is an individual membership organization. Its members manage private and public fleets in 18 countries. Our Cause (why we exist) AEMP helps fleet professionals build fleet efficiencies through world-class education and collaboration. Our Value (what we do) AEMP connects great ideas and great people to inspire innovation within the heavy equipment industry. Our Promise (how we serve our stakeholders) AEMP delivers a collaborative community within the Equipment Triangle, with exceptional tools to make equipment managers successful. Our Guarantee

If any AEMP program, product or service does not fulfill our promise, we will make the situation right or refund your money.

DIRECTORS AT LARGE

INDUSTRY DIRECTORS

Keith Barrett, CEM, PC Construction Company

Director of Strategic Partners Mike Granruth, Trimble

Ben Caldwell, CEM, Manhattan Road & Bridge Company Casey Dowling, CEM, RIPA & Associates

Director of Associates Dan Dean, Murphy Tractor

Tim Giggee, CEM, Covia Corporation Adam Ralph, CEM, Traylor Equipment Matthew Case, CEM, Manatee County Government Ernie Stephens, CEM, Superior Construction

Our Mission

Building Excellence in Equipment Management

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2021-2022 AEMP

BOARD OF DIRECTORS EXECUTIVE COMMITTEE

Chairman of the Board Dan Hubbard, CEM, CRH Americas Materials

AEMP STAFF... Donté Shannon, FASAE, CAE Chief Executive Officer Board of Directors Rachel Connor Education and Training

Chairman Elect Tim Morgan, CEM, Branch Civil, Inc.

Jackie Fowler Membership

Secretary Treasurer Adam Ralph, CEM, Immediate Past Chairman Dave Bolderoff, CEM, Los Angeles County Sanitation Districts

Jenny Frey Meetings & Conferences

Chief Executive Officer Donté Shannon, CAE, AEMP, Ex-Officio

Laura Ransone, MBA Certification

BOARD OF DIRECTORS DIRECTORS AT LARGE

INDUSTRY DIRECTORS

Ben Caldwell, CEM, Manhattan Road & Bridge Company

Director of Strategic Partners Mike Granruth, Trimble

Matthew Case, CEM, Manatee County Government Casey Dowling, CEM, RIPA & Associates

Director of Associates Joe Baker, J.J. Kane Auctioneers

Chris Turek Marketing and Communications Tony Veroeven Operations & Business Development

info@aemp.org

Tim Giggee, CEM, Covia Corporation Jon Kaye, Gallagher Asphalt Corporation Ernie Stephens, CEM, Superior Construction Kirby Yakemchuk, CEM, Forbes Bros.

Journal of Equipment Management

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AEMP 2021 CHAIRMAN

REFOCUS ON THE NEW HORIZON

BY DAN HUBBARD, CEM

Now is the time to focus on strengthening and empowering our employees.

n 2020 across the globe, record disasters impacted our friends and families. The Coronavirus pandemic, wildfires, volcanic eruptions, flooding, earthquakes, tropical cyclones, tornados and hurricanes compounded tragedies and changed our lives forever. 2020 brought life into focus for everyone. Priorities were restructured, and what was paramount seemed less important. What came into focus was the balance of life and work, career and family, fulfillment and heartache; we each learned what was important and what wasn’t. From our learning, our adaptations, we’ve come to terms with a new

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way of living. A more distant approach to our daily lives. Our adaptations have been drastic, we’ve implemented new ways of completing tasks; we’ve focused on eliminating risks to our teams while still balancing production. Many experienced an increased shortage of skilled workers; compounding a significant issue for our industry. With shortfalls in staffing, we asked our teams to accomplish tasks potentially creating more work, with less. We provided enhanced support and still balanced home and work for ourselves and our employees. The nimbleness of our industry delivered strong results through challenges. Our industry PAGE

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©KOKLIANG1981 – STOCK.ADOBE.COM

As we entered 2021, following a bit of political turmoil, the horizon was changing. What was bleak grew brighter. DAN HUBBARD, CEM supported great works across our world and showed the power of human initiative. As we entered 2021, following a bit of political turmoil, the horizon was changing. What was bleak grew brighter. Vaccines sped through development, testing and approval; distribution began and our teams buckled down, preparing for another season. Capital budgets cautiously rebounded, maintenance shops shifted into high gear and we began another cycle in the Equipment Management Industry. Due to our nimbleness, we trudge forward finding solutions; however, we must not forget our past. We’ve asked our teams to do more, but what can we do for them? What is their reward? It’s not necessarily a monetary answer. Let’s recognize and elevate innovation. Let’s enrich and empower our team with training and support. Let’s allow them to make

Journal of Equipment Management

mistakes while being supported. Let’s outline a career path for them in the Equipment Industry. Let’s STOP and talk to each member of our team like they are a member of our family, because in 2020 we learned that our dedicated workforce was just like family; they were there for us. We must look forward to the new horizon. strengthening and empowering our people. Our success depends on the talent and dedication of our teams. We must fill our bench with diverse talent and ready them for their next steps. Our industry must align towards developing inclusive environments for our workforce. We must seek out the gifts and talents of a diverse workforce. As managers, we must focus our attention to individuals and develop them to their full potential. We must find the spark within, and kindle it into a fire. PAGE

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LOWERING EXCAVATOR OWNERSHIP AND OPERATING COSTS A FLEET MANAGER’S GUIDE TO

Evaluate key features, learn best practices and better utilize machine-specific data

YOUR GOAL: Control the operating costs of the excavators in your current fleet. We know there are daily challenges that get in the way. Unexpected downtime, excessive fuel use and unintentional operator misuse — to name a few — all contribute to higher operating costs. Your choice of machine, and the service and technology provided by the OEM, can make a big difference in your operating costs — and ultimately, your total cost of ownership (TCO). Here are some things to consider:

START BY EVALUATING MACHINE FEATURES AND THEIR IMPACT ON TCO When it comes to purchasing excavators, evaluate the features that provide you with the best value over the life of the machine. A few examples: • Fuel-saving features such as integrated work modes and auto idling. For most owners, fuel consumption is the first cost of operating an excavator. Built with nine different settings within four work modes, Volvo excavators allow operators to dial in the exact amount of power and control for the task at hand, while burning as little fuel as possible. The auto idle feature automatically switches the engine to the high idle setting after five seconds of inactivity, lowering the engine’s RPM and saving fuel. • Productivity features like Dig Assist. In-cab machine control systems show operators — in real time — how to level sites, dig trenches and grade slopes, or even create complex, multidimensional site profiles. They make operators much more accurate — ensuring they get the job done right the first time, every time. • Guarantees for less worry. Choose a machine with that comes standard with a lifetime warranty on the boom, arm and frame, as well as a fuel efficiency guarantee — as Volvo crawler excavators do.

LOWERING EXCAVATOR OWNERSHIP AND OPERATING COSTS

USE MACHINE MONITORING TO CORRECT PROFIT-DRAINING OPERATOR BEHAVIOR Evaluating machine features is only the start. To truly get the lowest TCO, you need to monitor how the machines are being used. Volvo ActiveCare Direct makes this incredibly easy. Monthly reports include information that empower you to train your operators in ways that can lower your TCO significantly. Examples include: • Limit excessive travel to reduce half your maintenance costs. Excessive excavator travel time is the number one cause of undercarriage wear. It puts a lot of stress on the tracks, sprockets and idlers, and these repairs can represent more than half of your machine maintenance costs. ActiveCare Direct monthly reports show excavator travel time by machine and across the whole fleet — making it easy to spot opportunities for operator training or site reconfiguration. • Reduce idle times to boost resale value by $20,000 and reduce service costs by $9,000. It’s important to first evaluate similar machines to determine if there’s a large variance in idle percentages. For example, if you had data to help an operator get the same amount of work done while reducing his idle time from 50% to 33%, the difference in lifetime hours could add $20,000 in resale value at the end of five years — not to mention the lower-hour machine would require five less service intervals over that time, estimated at a $9,000 difference. By tracking idle times with Volvo ActiveCare Direct, you can set realistic goals for improvement. • Train operators to use the right work modes and save $10,000 per year. Too often, operators have a tendency to jump directly into the highest mode, regardless of the task. With a Volvo excavator, balancing engine RPM with hydraulic flow is simple. Everything is integrated into a single dial to change both the pump flow and engine speed — a feature unique to Volvo excavators. With programs like ActiveCare Direct, you can track any operators who run in too high of a work mode and help them change that behavior. By simply switching to a lower work mode, you could be saving upwards of $10,000 per year, per excavator.

AVOID UNNECESSARY DOWNTIME So many telematics programs still send a large number of confusing fault codes — but those are becoming a thing of the past. ActiveCare Direct makes them simple and useful. With easy-to-understand case alerts, you get the fault codes that went off, their probable causes, the specific action you should take, and the possible consequences if you don’t. It’s that simple. Learn more about how ActiveCare Direct simplifies fleet management by contacting your local dealer or visiting VolvoCE.com/ ActiveCareDirect.

TAKE ADVANTAGE OF

SPECIAL FINANCING THROUGH APRIL

Ownership costs are another part of the TCO equation, and we’re committed to helping lower those too. Right now, we’re offering rates as low as 0% for qualified buyers on 2018 and newer EC140 to EC480 and EW160 to EW240 excavator purchases through April 30.

Option to add on bundle offers, including a $1,000 credit on your Smart Commercial Account that can be used toward qualifying purchases — from parts and service to attachments and rentals Enjoy our Lifetime Frame & Structure Warranty, Fuel Efficiency Guarantee and 24-Hour Parts Guarantee Get details at volvoce.com/EWCrawler.

©ROMAN SIGAE – STOCK.ADOBE.COM

TOP EXPERTS SHARE 5 INSIGHTS THAT WILL CHANGE CONSTRUCTION FLEET MANAGEMENT BY KAREN SCALLY

In order to sit for the certified equipment manager (CEM) examination, heavy equipment managers must show mastery of five standards and 17 core competencies. SOURCE: ASSOCIATION OF EQUIPMENT MANAGEMENT PROFESSIONALS

SOURCE: SUPERIOR CONSTRUCTION+

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themselves through continuing education, the course and its subsequent test have evolved quite a bit over the years. Today, in order to earn the certification, heavy equipment managers must demonstrate thorough knowledge of five standards and 17 core competencies and have at least five years of fleet management experience. So what are the factors that are influencing the trends in construction fleet management? In this article, we’ve talked to three leading CEMs — Ernie Stephens at Superior Construction, Adam Ralph at Traylor Bros., and Mason Ford at Skanska USA — for their insights on how the role is changing, how it’s affecting construction organization and project workflows, and what are the keys to future success in the field of heavy equipment management. Here’s what they had to say.

apidly changing technology and shifting priorities are fundamentally reshaping the functions of construction fleet management. Within the span of a career, heavy equipment managers have grown from a fairly narrow focus of maintaining equipment and managing labor to increasingly finding themselves involved in a construction organization’s contracts, safety, outsourcing, finances, and use of capital. As evidence of how much construction fleet management now encompasses, just take a look at the certified equipment manager (CEM) designation. Since the Association of Equipment Management Professionals began to offer this certification in 1996 as a way for fleet management professionals to distinguish

ERNIE STEPHENS, CEM, SUPERIOR CONSTRUCTION Just a farm kid from Central Illinois. That’s how Ernie Stephens, corporate equipment manager for Superior Construction, describes himself. So naturally, by birth and location, a career at CAT was in the cards for him — until it wasn’t. “I grew up third generation working at Caterpillar and had no clue what I wanted to do,” Stephens says. One day, he got a call from Peter Walsh at Walsh Construction, asking him what he knew about equipment management. He didn’t know much about it then, but he does now. In 2017, Stephens was recognized by Construction Equipment magazine’s Under 40 awards, which showcase the best young talents in the industry. After more than a decade at Walsh, Stephens left to build the fleet department from the ground up at Superior Construction, a heavy/civil contractor

Ernie Stephens, corporate equipment manager for Superior Construction, says it’s hard to feel stagnant in his role because heavy equipment fleet management is always changing. SOURCE: ERNIE STEPHENS

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RIGHT: Superior Construction, a heavy/civil contractor with corporate offices in Portage, Indiana, and Jacksonville, Florida, has a fleet valued at $120 million. BELOW: Fleet managers should watch for trends in the auto industry, such as object detection and blind-spot indicators, to make their way to construction equipment. SOURCE: SUPERIOR CONSTRUCTION

equipment operations. But Stephens says drinking from the fire hose of data is actually not all that appealing — or helpful. “I sit on a couple boards of large construction company equipment managers,” he says. “And I think most of us just want to go back to the basics with technology.” The streams of available data often introduce new headaches for the heavy equipment management team. “We spend so much time checking technology and then rechecking it to make sure it’s accurate, and then figuring out why it’s not,” Stephens says. “It’s so frustrating.” Because of this, Stephens sees a future in construction fleet management where less is more. He says telematics should ideally focus on a few key areas: meter reading, location, fuel levels, and idle time. “The rest is just noise,” Stephens says. “And tech companies are continuously trying to come up with the next big thing, but they forget the importance of accuracy of those basics.” Though it seems simple, Stephens says a lot can be predictively managed from those reports, if the data was trustworthy and not overly complicated. “I don’t need to have every sensor,” he says. “If OEMs focus on getting those basics right, it would allow customers to see the more

with corporate offices in Portage, IN, and Jacksonville, FL. Superior Construction is a fourthgeneration family-owned company in business for over 80 years, with $600 million in annual revenue. Stephens oversees the contractor’s fleet, which is valued at $120 million and includes earthmoving equipment, cranes, and foundation pile driving equipment, along with his team of jobsite equipment managers, equipment operating engineers, mechanics, and drivers. Since he’s gotten into construction fleet management, the job is constantly changing — and that’s exactly what Stephens loves about it. “I think the coolest part is I get to learn something new every day,” Stephens says. “You’re always learning and able to challenge yourself. I think it’s definitely a role that doesn’t get stagnant because of the change.”

LESS (DATA) IS MORE (IMPORTANT) Particularly over the last decade, construction fleet telematics has produced a wealth of digital information about heavy

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Even when focused on the fundamentals of equipment operation, construction fleet managers are having to sift through a ton of information. It can be death by a thousand spreadsheets. He thinks a way to better manage heavy equipment operations moving forward is through living, shareable, aggregated resources. “We need some type of live, virtual equipment schedule,” Stephens says. He says there is so much valuable data in the equipment schedule and the asset’s source — whether it’s owned, leased, or rented — that could track costs and enhance forecasts. If the information did not have to be manually updated, equipment managers could plan better. “I want to know if 100 percent of my assets are working somewhere,” Stephens says. “Then I need to figure out how many new pieces I need to buy. Then that’s capital in the company. This is the most basic spreadsheet that everyone needs, but we need it more live and interactive.”

autonomous vehicles. These features will influence project specs and construction fleet decisions in the years ahead. “Looking at the automaker industry is very exciting for me,” Stephens says.

proactive opportunities with data.” From there, construction fleet managers could more effectively monitor utilization and maintenance, he says.

AUTO INDUSTRY IS PAVING WAY FOR INNOVATION Though he’s responsible for a construction equipment fleet, Stephens thinks it’s important to keep a side eye on the auto industry because the trends that are taking root there will eventually make their way to heavy equipment. “I try to stay in touch with what they’re doing,” he says. “The new Ford 2021 F150s are coming out with 240 volts of power in the back. They’re coming out with hybrid options and over-the-air updates.” Similar to the auto industry, Stephens believes that the future’s electric. Not only will that be better for the environment but it will also reduce the number of maintenance issues that equipment managers are experiencing with Tier 4 engines and DPF filters. Other technology improvements rooted in the automakers’ developments that he’s eager to see become standard on construction equipment include people and object detection, automatic stopping, and blind spot indicators. And just over the horizon:

Journal of Equipment Management

Live equipment schedules could assist construction fleet managers with tracking costs and enhancing forecasts. SOURCE: SUPERIOR CONSTRUCTION

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©ROMAN SIGAE – STOCK.ADOBE.COM

Dreams for the Future

ADAM RALPH, CEM, TRAYLOR BROS.

more, works almost like a rental company, with Ralph serving as a liaison between how projects run and the use and maintenance of the equipment. He also manages one of their equipment yards. “Most of the time, I’m behind a desk, doing paperwork,” he says. “But sometimes I’m out putting cranes together and overseeing the assembly and repairs.” In 2018, Ralph was named to Construction Equipment’s Under 40 list, where he was noted as one of the key team members within Traylor Bros.

With jobs scattered all over the country, Adam Ralph’s role is the tie that brings everything back together. Ralph is a corporate equipment superintendent at Traylor Bros., a heavy/civil high-risk contractor based in Evansville, IN, with projects ranging from mining subway tunnels in Los Angeles to building the Howard Frankland Bridge connecting Tampa and St. Petersburg in Florida. Traylor Construction Group’s annual revenues are about $650 million. Traylor’s equipment division, with nearly 2,000 assets including cranes, boats, trains, and

THE MISSING LINK BETWEEN FIELD AND OFFICE Ralph says there’s a distinct difference in equipment management of the past and the role today. “At almost 40, I’m one of the younger corporate equipment superintendents,” he says. “The guys that I work with might be better at hands-on repairs than I am. I excel at being equipped to manage the project as a whole and

Adam Ralph, a corporate equipment superintendent at Traylor Bros., a heavy/ civil high-risk contractor based in Evansville, Indiana, serves as a liaison between how projects run and the use and maintenance of the construction fleet. SOURCE: ADAM RALPH

Ralph says today’s construction fleet managers are taking on more of a sales or project management role, where they need to demonstrate to customers the value of their organization. SOURCE: TRAYLOR BROS.

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CASTROL IS PASSIONATE ABOUT YOUR BUSINESS. BUT THAT’S JUST HALF OF IT.

Castrol® VECTON® is also the world’s first certified carbon neutral commercial engine oil,* which helps reduce your carbon footprint. And our System Pro Technology™ delivers an extra performance reserve of up to 45%** for longer useful oil life to help reduce operating costs. LEARN MORE AT CASTROL.COM/AEMP *Defined by the BSI’s PAS 2060 carbon-neutral certification standard. ** Average of percentages by which VECTON exceeds the industry standard requirement limits in API CK-4 and ACEA E9-16 engine tests for viscosity maintenance, heat protection, deposit control, minimum oil limits and acid neutralization. In API CK-4 tests only, the VECTON performance reserve is 37%.

IT’S MORE THAN JUST OIL. IT’S LIQUID ENGINEERING.®

Equipment data analysis roles are a growing need within the fleet management team, Ralph says. SOURCE: TRAYLOR BROS.

the loop with customers by communicating and demonstrating the company’s value. “You have to be a little sharper to help your customers while making them long-term customers,” Ralph says. While Ralph currently handles the telematics for Traylor, moving forward more organizations will create a dedicated role for equipment data analysis. “You need someone there that owns it and makes sure it’s right,” he says. “Then you can truly play with the data and do something significant with it.”

use tools to communicate that as opposed to just going in there and taking care of it.” He sees the responsibilities of the construction fleet manager continuing to shift into the financial realm, including influencing revenue opportunities. Most of Traylor’s jobs are joint ventures, where the lead of the project has more control in the equipment decision-making. “We’re doing more outside sales work, where we have to make a good impression,” Ralph says. He says equipment managers need to function more like project managers, closing

Forget asking Google, Siri, or Alexa. Ralph can’t wait for the day when images become the next big way to search for information. Often, construction fleet management teams need parts and tools that are not universally named or require a specific number to even begin looking for the item. In these cases, a picture truly would be worth a thousand words. “It’s definitely gone through my head more than once that if I could take a picture of whatever it is, and then based off of that picture, it would be my Google search,” Ralph says. “I just can’t believe that it doesn’t already commonly exist.” Parts and tools sometimes even have regional and trade-specific names, complicating searching online for the right one further. Visual searches could help move the entire parts and tool procurement process entirely online, Ralph says. “If it would work like that, I would more often buy parts and supplies online instead of calling the salesman,” he says.

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©ROMAN SIGAE – STOCK.ADOBE.COM

Dreams for the Future

MASON FORD, CEM, SKANSKA

Mason Ford, the director of sustainability and equipment services at Skanska, says equipment management of the future has the power to change construction processes over time the more deeply they are pulled into the designs of heavy equipment and technology.

Mason Ford has found himself in an unusual spot. He’s a Gen-Xer who’s a wanna-be millennial. “In a lot of aspects, I’m an early adopter,” Ford says. “And I’d much rather move into doing things with purpose.” That probably had something to do with why his role has recently grown into the director of sustainability and equipment services at Skanska, one of the top 10 largest construction companies in the world. Ford’s been with Skanska USA, which had $7.6 billion in revenue in 2019 and was No. 7 in revenue on ENR’s 2019 Top 400 Contractors list, for over 20 years. He also served as the AEMP executive chairman of the board for 2019-2020.

SOURCE: MASON FORD

sustainability initiatives. Though admittedly, at first glance, it seems like the union of the two roles is a bit of an odd coupling. “I don’t know of another corporate equipment manager, at least not in my field of peers and friends, that has both of those dual roles,” Ford says. “But there’s a reality that the two go so well together.” A closer look reveals the two are not as unlikely partners as they may initially seem. “Most of the conversation around sustainability is generated in equipment anyway,” Ford says. “And I think that’s the future there.” Ford sees the potential of equipment management and sustainability efforts increasingly pairing up, because the values of the rising generation of decision-makers, with millennials now approaching age 40, are vastly different than their predecessors in construction. “We all know that 30 years ago, it was about the dollars,” Ford says. “Today, that

A PERFECT UNION: SUSTAINABILITY + EQUIPMENT SERVICES Just as millennials are known to quickly embrace changes in technology, research has shown they also highly value sustainability and care about the environment. So it makes sense that Ford, the millennial at heart, is now overseeing Skanska’s

Ford says it makes sense for construction sustainability efforts to start with and be focused on heavy equipment. SOURCE: SKANSKA

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how to use it. Merging the two areas will add support to overarching goals and reinforce a holistic approach to a contractor’s culture. Fleet decisions will inherently give consideration for sustainability moving forward, Ford says. “I envision that very shortly, when we bid a job or we forecast the job, we’re going to see how much equipment we need, what that’s going to cost, and how much of a carbon impact it’s going to have,” Ford says. Ford says though Skanska may be leading in this arena, he believes others will not be far behind. “I think a lot of our owners or a lot of our customers will be in that same boat,” he says. “In the next 10 years, the big municipal organizations are all going to be looking at the carbon impact.”

isn’t the mindset.” Now, more corporate emphasis is being given to the environment, diversity, inclusion, and safety. “I think that will continue to evolve in that by living out the mission of the company, we’re not going to hurt the environment,” Ford says. “We’re not going to hurt our people. We’re not going to hurt the ethical fabric of the country or the industry. And we’re going to make a profit.” It also will result in efficiencies for contractors to bring together sustainability with heavy equipment management, he says. Typically, the individual overseeing sustainability within the construction organization is not someone who has had a lot of hands-on fleet experience or isn’t positioned to have much control over decisions like what equipment to buy and

An updated version of the telematics standard, ISO 15143-3, was published at the beginning of 2020. SOURCE: AEM

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There’s no doubt that telematics have already brought about transformative change for contractors, essentially allowing the equipment management role to expand into operations and finance through the power of the data. But it’s not been without its problems. The biggest one: the lack of communication among different OEM brands present in a mixed construction fleet. “None of the devices talk to one another, and none of them are streamlined,” Ford says. “If you’ve got 30 different systems to pull information in, we’re not really saving any time.” Ford says this has impeded additional progress and momentum. “Everybody was stuck on this telematics thing for a long time trying to keep it proprietary, trying to keep it locked up, using it as a differentiator,” he says. “That was just a knot that had everybody tied up.”

LENDING A VOICE TO DESIGN CHANGES

organizationally, they need to be more heavily inserted in the construction design phase. “When you get involved in the technology, it then changes the construction process over time,” Ford says. And in his expanded role, Ford now has the power to push the parameters of that conversation further — and that potential excites him. “The thing that…has the biggest opportunity for change is the evolution of technology and the inclusion of sustainability being bolted on to equipment,” he says. “That’s the big piece that’s missing.” Though the AEM/AEMP Telematics Standard, ISO 15143-3 is designed to break down some of the barriers that existed, Ford believes the continued value of telematics solutions for construction hinges on OEMs working together in order to be able to easily share limited sets of data among systems. “You only need about four or five data points,” Ford says.

While the construction industry is known more for incremental rather than radical shifts in its processes, one of the byproducts of the pandemic is that it has forced change in many ways, particularly when it comes to adoption of technology, Ford says. “COVID is the storm that’s going to break the dam of having excuses out there for why not to use technology,” Ford says. “It’s kind of kicking us in the butt to get modernized right now rather than drag it out over another 30 years.” And how could successful adoption be accelerated further? Ford says future development of technology needs to involve the people that have the hands-on experience to make it right. “I think for the evolution of technology — robotics, autonomous, the next iteration of equipment — that equipment manager and team need to be pulled heavily into that loop,” he says. “You start talking about getting the equipment management people deeper into the design of the construction process and the tools that will touch the heavy steel or the foundations, it will just bring the entire program one step further.” He says construction fleet management teams need to be brought deeper into OEM conversations about technology and design, and

Journal of Equipment Management

Karen Scally is a journalist who covers the construction industry and a current contributor to Gearflow.com, which is an online marketplace for construction parts, tools, and equipment. This article was adapted from its original version on the Gearflow.com blog. PAGE

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Dreams for the Future

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MAKING THE BEST OF A UNIQUE TIME

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Equipment Management Live was an innovative virtual event that gave participants the opportunity to interactively engage with industry leaders and other AEMP members using Zoom’s live video conferencing.

Virtual experiences allowing AEMP members to share knowledge are part of the association’s vision for helping its members now and in the future.

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his might sound familiar. You’ve been told that Savannah is lovely in June, you’re caught up at work, and the company has signed off on four days away so you can attend AEMP’s annual summer leadership summit. You’re looking forward to catching up with some of your AEMP buddies over some fine southern cuisine, sharing thoughts on the day’s sessions, talking a little business, even floating the idea of motoring over to Hilton Head to see who’s golfing. Yep, you can almost hear those dragon flies humming

Journal of Equipment Management

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“summertime” as you check to see what flights will get you into Georgia’s most gracious city. Then, BAM. The world takes a roller-coaster turn and, like many events across the nation, AEMP’s Leadership Summit was cancelled. You aren’t going anywhere, Bucko. John Lennon told it like this, “Life is what happens while you’re busy making other plans.” Ok, now what? This year AEMP has been working to expand its resources and experiences for members, taking the next steps to provide the finest educational, networking, and business leadership opportunities for professional equipment managers. Donte Shannon, CEO of AEMP, and the AEMP board have been crafting AEMP’s FY20-21 Strategic Plan, which is the foundation of the association’s growth. Shannon’s priorities include continued positioning of AEMP and its members as the foremost experts in equipment and fleet management, especially in relation to the impact professional equipment managers have on C-suite management goals. More knowledge transfer and educational opportunities — virtual and in-person — are part of the AEMP vision to help enhance current equipment managers’ careers and encourage future workers to join the profession. Developing and implementing globally recognized best practices and industry standards for maintenance, finance, safety, sustainability, and environmental procedures is a goal Shannon share’s with the AEMP board and partners. Additionally, continuing to build relationships anchored in trust and professionalism with equipment OEMs, government agencies, and industry innovators provide powerful resources for AEMP members to draw from. Shannon feels it is important to aggressively take advantage of resources and growth opportunities to further engage and deepen the value AEMP brings to its

Journal of Equipment Management

During Equipment Managment LIVE, attendees will be able to interact and engage with industry leaders.

“…THE FIRST EVER AEMP EQUIPMENT MANAGEMENT LIVE VIRTUAL CONFERENCE ON JUNE 22-26, 2021”

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membership. So when it became clear the 2020 Leadership Summit in Savannah could not be staged as planned, AEMP quickly realized that many of the near-future additions and innovations planned to support the FY2021 strategic plan were remarkably well suited to staying connected with AEMP members now. Wikipedia suggests Richard Franck is credited with writing, “Necessity is the mother of invention” back in 1656. What better time than now to make use of AEMP’s ideas, resources, and skills? Necessity, meet Invention. Doing a quick pivot, AEMP’s stellar staff reconfigured what was to be the annual leadership summit in Savannah to fit today’s unique social parameters. The result was the first ever AEMP Equipment Management LIVE virtual conference. Equipment Management LIVE was an innovative virtual event that allowed interactive engage with industry leaders and other AEMP members using the powerful platform of Zoom’s live video conferencing. Each day’s conference, usually about 90 minutes in length, offereed live streaming video

association experiences. Some of the platforms used during Equipment Management LIVE are being incorporated into future business, educational and certification events that will allow many more techs and managers the chance to grow in their profession with the greatest scheduling flexibility. Of course, in-person events are always the highlights of AEMP’s calendar and will continue as the world regains its balance. Member engagement is key — ‘associating’ is the foundation of our association. Stepping up to take advantage of this unique time in our country to introduce new engagement opportunities to our members is what we hope AEMP members will come to expect from their premier professional equipment management association. Good things are on the way! “I love it when a plan comes together!” - John ‘Hannibal’ Smith, Leader of The A-Team Nice.

that displayed both that day’s speakers and the AEMP members participating in the meeting. (If you haven’t done a Zoom event before, visualize the opening shots of the Brady Bunch in which you will have your own space.) AEMP’s live, connected conversations and presentations included panel discussions in which all attending (signed-on) participants were encouraged to speak and ask questions in real time. These sessions were recorded and made available on demand to AEMP members for 120 days after the Equipment Management LIVE event is over, giving members who may not have been able to attend the option to view the proceedings later. After each day’s session, AEMP’s featured speakers continued to be available for comments and questions via a hosted forum on the AEMP website. Advances in technology are broadening our knowledge base and giving us opportunities to bring greater value to our professional and

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BOOST

PROFIT

WITH CONSTRUCTION FLEET MAINTENANCE TECHNOLOGY BY KAREN SCALLY

Five tips to leverage technology tools and data for more efficient fleet maintenance in order to increase profit potential.

Top 600 Specialty Contractors List, won the 2016 AEMP Fleet Masters Award from the Association of Equipment Management Professionals and Construction Equipment magazine. The awards recognize the industry’s top fleet management teams. Henkels & McCoy’s pipeline division handles major pipeline spreads, ranging anywhere from 50 to 200 miles, throughout the U.S. Gilbert says the division’s fleet, valued well over $100 million, includes about 800 owned assets and fluctuates up to 2,200 pieces of on- and off-road equipment with rentals during the height of busy season. Based out

hen Gil Gilbert looks at his construction fleet, he sees dollar signs. While fleet maintenance is typically viewed as a cost center, Gilbert says today’s technologies can change all that — and turn it into a profit margin machine. Gilbert is the director of fleet management for the pipeline division of Henkels & McCoy, which is headquartered in Houston. Because of his implementation of technology, the contractor, which ranked No. 6 on the 2019 ENR

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GIL GILBERT’S 5 FLEET MAINTENANCE TIPS

of the division’s Birdsboro, PA, maintenance facility, he supervises a full-time fleet staff, which includes logistics and rental coordinators, a supervisor of fleet maintenance, service technicians, and equipment yard and warehouse staff. Drawing from his nearly 30 years in fleet management, which includes serving as the fleet director for Anheuser Busch to owning a construction repair company, Gilbert has found success by using innovative ways to

1. GO PAPERLESS WITH QR CODES Over five years ago, Gilbert was between speaking engagements at a conference, mindlessly thumbing through a construction equipment brochure — when something caught his eye. It was the first time he’d seen a QR code. Curious, Gilbert followed the instructions and scanned the small symbol with his smartphone. And it opened up a whole new world for him. The code in the brochure linked to the model’s specs, and it occurred to him that these codes could have broader applications if directly attached to the heavy iron and onhighway vehicles. “I thought that would be really cool if we could get that info out to the people who The QR codes throughout Henkels & McCoy’s fleet provide instant smartphone access of key construction equipment information to service technicians and operators, including a dozer’s maintenance intervals. SOURCE: GIL GILBERT

adapt technology throughout his fleet operations. In this article, he shares five tips to leverage these tools and their data for more efficient fleet maintenance in order to increase profit potential for the overall construction organization. Gilbert prefers to monitor gallons of fuel burned over tracking mileage for on-road vehicles to get a true measurement of how much the fleet’s engines have worked. SOURCE: GIL GILBERT

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RIGHT: Gil Gilbert, center, director of fleet management for the pipeline division for Henkels & McCoy, receives the 2016 AEMP Fleet Masters award with Ian Windish, left, telematics specialist, and Gary Regan, fleet supervisor. SOURCE: GIL GILBERT

The QR codes put valuable resources right at the fingertips of the individuals that need them most, at the exact time and place that they are needed, such as linking field mechanics to service forms and drivers to upload pictures to track equipment damage. Gilbert says they even have QR codes on their fleet’s engines. “It instantly takes them to an electronic version of that manual and troubleshooting guide,” he says. Though it is a simple technology, Gilbert says QR codes are a powerful tool that allows the fleet maintenance staff to get to work more quickly. “They’re not digging around for a service book or calling somebody,” he says. “It’s right there in front of them.” Gilbert believes the future of construction fleet maintenance will include widespread adoption of QR codes on equipment. Some OEMs are even exploring adding them to models right from the factory.

really need it at the time,” Gilbert says. So in 2015, Gilbert began adding QR codes throughout his fleet. “Every time a new piece of equipment comes through and it gets prepped for service, we put these QR codes all around,” he says. The codes provide instant access to important information, such as inspection points, service hours, load-securement instructions, and pre- and post-trip logs. Some codes link to safety videos or videos designed to help technicians troubleshoot maintenance issues. “Whether it’s a dozer or excavator operator or somebody that’s driving a truck, if he wants to know what the true hours of service are, how to maintain his logbooks, or work through his ELD, he can scan the code on there and get a quick video that shows him everything he needs to know on doing that,” Gilbert says. “It’s virtually paperless.”

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2. INCREASE MARGINS WITH TELEMATICS Gilbert says the biggest opportunities for profit potential in construction fleet management are with increasingly advanced uses of telematics. “In my mind, a company that does not embrace the information of telematics is really in the last century,” he says. Henkels & McCoy began implementing telematics solutions in 2013 to track fleet maintenance and equipment movement, as well as monitor compliance and production. They also use it for diagnostics’ capabilities. However, shifting to processes that embrace this level of technology has not been without some pushback. “In the construction industry, you got a lot of old school guys there that they just don’t want to accept technology,” Gilbert says. He says his team made a concerted effort to send fleet staff to the field to demonstrate how it would make their jobs easier. But in the end, it was the money that mattered. In my mind, a company that does not embrace the information of telematics is really in the last century.” — Gil Gilbert, director of fleet management for the pipeline division for Henkels & McCoy Gilbert says the more profitable the jobs are, the more bonuses the project

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superintendents get. “And they now see that it directly reflects their income if they utilize the tools that we provide for them,” he says. He recalls one superintendent who initially scoffed at the idea of using telematics. “Now that same superintendent, if his site goes dead for more than 15 minutes, we’re getting phone calls that he can’t see his data,” Gilbert says. “It’s become his eyes.” It speaks to how critical — and

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recommends providing cooling trailers or mobile lunch rooms. “It’s much cheaper, and it doesn’t put the wear and tear on the machines,” he says. It’s also important to keep a close eye on operator use of the equipment, because that can directly affect fleet maintenance and repairs. Through telematics, Gilbert’s fleet management team tracks the performance of each operator, based on a PIN number entered into the equipment keypad. “You can actually watch individual operators and how they treat the equipment and what their production is,” Gilbert says. “Then you can really pinpoint, does he not know how to operate the machine? Is he struggling with this?” Then, you can determine if an operator needs further training and what the true operational cost per hour is. “We all know what our fixed costs are on equipment: depreciation, taxes, and insurance,” Gilbert says. “But what’s really hard to pinpoint is production rate for a specific type of machine in a specific type of environment.” Applying the telematics data can help you do that, he says.

influential — the role of the equipment fleet department is within the construction organization. “We are the margin makers,” Gilbert says. “If you listen and follow the technology we’re offering, we can actually increase your margins.” He notes that most construction companies work off a 10-12 percent profit margin. “That profit margin means that for every dollar they spend, they’re getting 10 or 12 cents back,” Gilbert says. “For every dollar I save them, it’s a 96 percent margin that they’re going to make on every dollar by using our technology.” 3. USE DATA TO DETERMINE OPERATIONAL COST PER HOUR Once fleet management technology is in place, Gilbert says that’s when the creativity really comes into play in finding alternative solutions that produce savings. For starters, Gilbert favors monitoring gallons of fuel burned, even for on-road equipment, over tracking mileage. “That’s truly the measurement of how much that engine has worked,” he says. And since fuel can come with such a hefty expense, Gilbert says instead of letting operators stay comfortable in idling equipment when they’re not working, he

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4. MEASURE THE VALUE OF TECHNICIAN EFFICIENCY Gilbert says that it’s important to not overlook the role that your fleet maintenance staff plays in the cost of doing business. “An untrained service technician can cost you 10 times more than any training tool you can buy because of mistakes and the amount of time it takes them to do something,” Gilbert says. PAGE

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He says fleet management teams need to invest in their technicians to make sure they have been through a comprehensive, OEM-style training program and that they are outfitted with the proper tools. He also says those responsible for ordering parts need to be better educated on available parts-ordering systems to make them more efficient. Gilbert uses a method called technician efficiency to make sure his team is influencing profit margins in a positive way. “I actually measure the amount of hours I pay a technician,” he says. “So if I’m paying a technician eight hours, I track that technician’s time to a project or to a task.” For example, technicians that are productive six hours of the day means they are 72 percent efficient. The National Automobile Dealers Association recommends that service technicians achieve 85 percent productivity. Gilbert then evaluates the underperformers on his team to see if they are lacking in experience, training, tools, and other

resources — and see what he can do to help them.

Pro tip: Track your service technician’s time to a project or task to achieve at least 85 percent productivity. “A lot of times, people say, ‘Well, he’s just lazy,’” he says. “I don’t believe for one minute that a person comes to work every day saying, ‘I’m just going to be lazy today.’ There’s @TREVOR ADELINE/KOTO-ADOBESTOCK.COM

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So when you have a situation where an employee gets paid by the job, I don’t care what time he comes in or what time he goes home, as long as he gets what I need done.

a turbo for unit number XYZ,” he says. “We’re going to get all the specs for the engine, and we’re going to be able to go online to that system and go click, click, click, ordered. I’m just continuing to push those that are within the fleet management team to use online tools whenever they’re available.”

obstacles, and those obstacles really need to be vetted out.” Gilbert is constantly trying to find ways to improve his team’s output, encouraging team members to use the technology and tools available. Take something as routine as a call to order parts, for example. “Being on the phone ordering parts can go from a

5. TAP INTO EXPERIENCE OF YOUNGER GENERATIONS In multi-generational construction workforces, the adoption of technology to reduce fleet maintenance costs and the willingness to embrace it can vary. “It’s very difficult for an old

school baby boomer to embrace this technology and to identify with it,” Gilbert says. To better manage that, Gilbert says it helps to pair up team members from different generations, such as a Gen X’er with a millennial who intuitively understands technology, for a reverse mentorship of sorts. “At first they think this is a young punk kid who doesn’t have any experience,” he says.

five-minute conversation to a 45-minute conversation,” he says. “A computer is not going to have a conversation with you.” He says he’s not trying to discourage relationships with suppliers but that there is a time and a place — and that the time for lengthy calls would not be during peak production, such as in the winter, when the service shops are busy with repairs. “That’s the time when I would expect that parts technician coming in and saying I need

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“Most millennials, they want to be more flexible, they want to be more open to be with their family,” he says. “So when you have a situation where an employee gets paid by the job, I don’t care what time he comes in or what time he goes home, as long as he gets what I need done.” The need for increasing flexibility has become particularly apparent during the COVID-19 pandemic, with personal lives and schedules thrown into upheaval. “Some of these people don’t have the luxury of a daycare anymore,” he says. “They don’t have the luxury of sending their kids to school. At the end of the day, I’m looking at how much production I can get out of each bay of my shop, and the technician’s ability to complete that

“And then they start seeing that young punk kid get the information they need so quickly and instantaneously.” Then, the less tech-savvy employee typically wants to know what he can do differently. “It becomes a really cool transition to see that relationship developed between that generation gap, where you see some real magic happen,” he says. “It kind of debunks the old cliche, you can’t teach an old dog new tricks. Sometimes those old dogs are looking for a way to be competitive in the market.” Gilbert says the construction

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production in whatever time he sees is going to be efficient for him to do.” And as much as Gilbert has learned from applying technology to fleet maintenance, what excites him is that he thinks there’s a whole lot more success to be had. “Technology, as advanced as it is, it’s still going to get better,” Gilbert says. “We’re going to see in the next five years stuff that I haven’t even thought of. And I think it’s important that everybody is open minded to that.”

industry as a whole could benefit from shaking its more “old-school mentality,” where you clock in at 7 a.m. and go home at 3:30 p.m., as much as possible. He believes this limits the potential of his fleet maintenance staff.

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AEMP BEST EQUIPMENT RENTAL PRACTICES BY GEORGIA KRAUSE

and infrastructure work. In a recent interview, Buttigieg told CNN’s Jake Tapper, “The American people are ready for us to finally, actually do something about infrastructure. We can’t keep letting ‘Infrastructure Week’ be a Washington punchline.” Buttigieg has been pro-infrastructure for a long time, a very good thing because the heavy equipment rental market was hit with several challenges due to the COVID-19 pandemic this year. Projects were delayed and transporting equipment hit driver and lockdown snags. It is a credit to the construction and rental industry

he heavy equipment rental market in the U.S., measured by revenue, reached $44.6 billion in 2020. During the past five years, the market has grown about 1.2 percent each year, according to IBISWorld. Predicting growth for the equipment rental market for 2021 is difficult, but the appointment of Pete Buttigieg as U.S. Transportation Secretary is encouraging for construction companies who do road

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HAGLUND

Growth in the rental market is in part because contractors are protecting their cash flow.

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possible, here are several points to consider once you’ve spec’d the machine you’ll need. Standard items in your rental quote will include how you will be charged — by the day, hour, etc., — what tools are included, fuel charges, the rental period, and the transport cost. Other add-ons and shadow fees may apply. And while most rental companies provide reasonable explanations of possible and probable fees, the burden is on you to fully understand what you are paying for. Ask these questions — and get your answers in writing. ❯ How are field repairs handled? Are they covered in the total cost of the rental as outlined in the quote? Or can the rental house charge you for items such as travel fees to your project if it is in a remote location? After you’ve been billed for the initial delivery of the rental vehicle, if it cannot be repaired on site are you responsible for another charge to deliver a replacement machine? ❯ Who do you call for after hour problems, and what is the level of their authority? Can that person make management level decisions to resolve problems that might occur during what would be considered off-hours, such as evenings and holidays? If you are working on a

that the equipment rental business was still able to come out ahead. Expectations for 2021 are a steady increase in equipment rentals as forces such as the COVID vaccines and the new administration’s emphasis on rebuilding the nation’s infrastructure come into play. According to Grand View Research, the concrete and road construction machinery segment is anticipated to exhibit the highest compound annual growth rate of 6.1 percent from 2020 to 2027. Cat Rental says the CAGR for rental should reach $145.22 billion by 2026. Growth in the rental market is in part because contractors are protecting their cash flow and also gauging what their ROI might be using a higher tech machine. Contractors are managing their risk in case of a slowdown by avoiding the costs of equipment ownership, the initial asset cost, and the tenure to pay off equipment financing, plus maintenance and repair costs. Some contractors are choosing to minimize their fleets as a way to manage cost-of-ownership expenses. The major equipment rental companies are responding to the increased demand by investing in additional equipment and maintenance and repair programs. For example, Herc Rentals has invested $400 million in fleet enhancement and maintenance since 2019. As more contractors lean towards rentals, it is important for them to require the rental companies they deal with to spell out — in detail — all the line items that make up the real rental cost. Yes, renting a machine avoids long-term cash commitments and, generally, rental fees including costs for delivery, insurance, and reservations are a tax-deductable business expense in the year they were incurred. However, the devil is in the details, and details can add up to extra dollars if they add up without your knowledge, making that rental less financially attractive. To make your rental process as smooth as

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HAGLUND

AS MORE CONTRACTORS LEAN TOWARDS RENTALS IT IS IMPORTANT FOR THEM TO REQUIRE THE RENTAL COMPANIES THEY DEAL WITH TO SPELL OUT - IN DETAIL - ALL THE LINE ITEMS THAT MAKE UP THE REAL RENTAL COST.

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maintains fluids and wearable parts? Does the company spec specific brands, product configurations, or providers? ❯ If you are paying for equipment delivery, does that fee include local road use fees for oversized equipment or interstate transfer fees? ❯ Are there additional state or agency fees tied to your rental? Things such as environmental regulations and their corresponding fees and fines vary widely, so it is important to understand what is expected in your project’s jurisdiction and how those fees are built into your rate quote. Are they rolled into the rate quote, billed separately, or completely left to you to take care of? Which method is better for your company’s bottom line and how you plan to bill your client? Couldn’t hurt to ask your tax professional about any changes that may have popped up regarding fees, too. ❯ Telematics are standard on many rentals, so you should know what data is

deadline or with several shifts, waiting for a manager to be available to work with you is an unnecessary delay. ❯ How do you recoup downtime if the rental equipment goes down? For example, the rental stops working at 10 a.m. and the replacement machine will not be available until the next morning. What is the rental house’s policy? Do they provide credit in hours, days, and how will that credit be applied? ❯ What is considered normal wear and tear? Your relationship with your rental provider can deteriorate if you don’t agree on what normal is. What penalties are involved should something be lost or broken? Specifically, are you responsible for the cost of replacing the parts and labor based on current standard costs, or is there a predetermined fee set by the the company to cover the cost of what was lost or broken? ❯ Are consumables your responsibility or the rental house? Other than fuel, who EquipmentShare’s Track fleet management technology is designed to bring all the tasks associated with equipment rental into a digital dashboard.

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being collected and how that information is being used. Ask if the rental company has policies that reward you for operating within certain idle settings or operating modes. If you need telematics data from the rented machine, is it available to you and at what cost? This would be important if an operator was involved in an incident and operating data was required to explain cause. ❯ If you already subscribe to a dealer or OEM telematic service, discuss how the data from the rented vehicle can be integrated into your current data analysis program so that you can measure productivity across the board. Rental companies are expanding their services as construction equipment technology continues to grow. Non-traditional rental options like EquipmentShare, a mixed fleet rental company with 60 locations in 25 states, leverage smart jobsite technology to both simplify the rental process and make better use of the data the rental vehicle provides. EquipmentShare’s Track fleet management technology is designed to bring all the tasks associated with equipment rental into a digital dashboard that gives the renter machine access control, allows GPS tracking and geofencing, generates work orders, usage reports, driver scorecards, and time cards, as well as real time vehicle diagnostic monitoring. If the machine senses a potential problem, EquipmentShare immediately alerts the renter / operator so corrective action can be taken, including sending out a field repair technician.

your application and your company’s safety program profile. When possible, include your lead operator in your rental decisions. ❯ Are your operators trained on the rental vehicle? If there is a certification required, are your operators certifications current? If there is an incident, you can be sure the insurance providers for both you and the rental company will ask you that very question. ❯ Does the rental equipment appear to be be well maintained? Your operator can advise and alert you to possible problems that may spell downtime by looking at equipment from his hands-on perspective. If he notes an issue with a particular machine, make sure it is corrected before you take possession of it. ❯ Similarly, your operator can advise you as to which tasks a machine can reliably perform, especially in specialty applications. ❯ Do you have the correct PPE (personal protection equipment) for the machine, and if not, who will provide it? Because this is both a safety and liability issue, if you have any doubts that the correct PPE is being supplied, double check with your local OSHA center. Safety specs change as equipment designs evolve. You can never be over-safe.

WHAT DOES YOUR OPERATOR SAY? Your in-house expert on safely spec’ing and operating equipment is your operator. Coupled with the rental house’s expertise, you have a wealth of information to draw from to ensure you rent a vehicle that fits

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HOW TO PREPARE NOW FOR FUTURE OF ELECTRIC CONSTRUCTION EQUIPMENT Four things fleet managers should consider before going electric BY KAREN SCALLY

future with electric construction equipment is coming, and Dave Bolderoff says fleet managers need to be taking steps now to make sure they’re ready for it. As the fleet manager for the Los Angeles County Sanitation District, Bolderoff has helped cut their reliance on fossil fuels by 42 percent over the past year with the use of renewable fuels and integration of about 50 light-duty electric vehicles. In 2021, the department is planning to pilot a handful of heavy-duty battery-powered trucks in various vocational applications. Granted, he is in California, where emissions regulations will push heavy equipment fleets to adopt machines that are

Dave Bolderoff, fleet manager for the Los Angeles County Sanitation District. SOURCE: DAVE BOLDEROFF

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SOURCE: DAVE BOLDEROFF

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Bolderoff expects the trends in robotics and AI the L.A. County Sanitation District is implementing in material recovery will carry over to heavy equipment.

which has about 1,100 fleet assets with a replacement value of $105 million, but he also manages over-the-road transportation and oversees facility and equipment maintenance. The agency has a diverse fleet that includes wheel loaders, dozers, motor scrapers, landfill compactors, motor graders, vocational trucks, heavy-duty trucks, and more. It performs most of its maintenance work in-house at its six service shops located throughout the county. Here are four things Bolderoff says fleet managers should consider before going electric.

powered by alternative fuels and batteries faster than some other regions of the country. As a leader in this area, Bolderoff, who is a certified equipment manager (CEM) and served as immediate past chair of the Association of Equipment Management Professionals (AEMP), is planning to use his experience to help other fleet managers. “I think it’s a responsibility of myself and other equipment managers of large organizations out there to invest time and resources in these pilots to help out the medium and smaller-type companies out there because we’ve got the bandwidth to take on one of these projects,” he says. At the L.A. County Sanitation District, Bolderoff not only manages the fleet,

Journal of Equipment Management

TAKE THE LEAD WITH SUSTAINABILITY Today’s fleet manager is particularly positioned to lead the charge toward an electric future in heavy equipment. This is because the fleet management role has PAGE

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The Los Angeles County Sanitation District is building out its charging infrastructure in order to add electric equipment, including some faster DC chargers that will be needed for heavy equipment specifically. SOURCE: DAVE BOLDEROFF

Heavy equipment operation is physically challenging, even in the most comfortable cabs. Autonomous equipment will open the door to a wider swath of operators. SOURCE: DAVE BOLDEROFF

evolved so much in the 21st century. “As equipment is becoming more technical and costly, the role is changing from a maintenance manager into more of an asset manager,” Bolderoff says. Bolderoff, who was named to Construction Equipment magazine’s Under 40 in Construction Equipment Awards in 2015, personifies this next generation of equipment leaders that come from different backgrounds and have seen their responsibilities expand. Case in point: When he joined the L.A. County Sanitation District as fleet manager over 12 years ago, it was more of an administrative position. Now, it has grown to interact and affect many facets of the organization. “I think equipment management overall is one of those unique responsibilities where it interacts with and supports so many other departments within any organization,” Bolderoff says. “You need to work with

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operations, you need to work with human resources, you need to work with accounting and finance, you need to work with estimating, you need to work with health and safety.” Because the fleet manager is increasingly acting as the interdepartmental glue across an organization, Bolderoff says it will be instrumental in implementing its sustainability initiatives. “I think equipment management and sustainability correlate very well in regards to coming toward the desired goal of carbon neutrality within every organization,” he says. “We’ve seen others that have taken on that PAGE

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role as well in large construction companies. So I definitely see that as a trend.” For example, in the construction industry, Skanska USA recently expanded the equipment management role to create the position of director of sustainability and equipment services. Increasingly, fleet managers should approach their decisionmaking with overarching sustainability goals in mind, Bolderoff says. This goes far beyond adding equipment that reduces emissions and carbon impact. “We’re using fewer materials or recycled materials in the way we maintain our equipment and rebuilding machines rather than replacing them,” Bolderoff says. “Being sustainable is also using each other’s resources and learning from others’ failures or successes to make it easier for the masses to implement going forward.”

Journal of Equipment Management

Bolderoff says it’s wasteful to recreate the wheel, and more companies are recognizing that. “Every time that someone else has figured it out, we should be looking at those people and copying their model,” he says. “Then maybe adjusting a little based on the environment we operate in. Rather than starting from phase one, we could start at phase five or six.” What’s encouraging, he says, is that there’s been a noticeable shift in recent years with that willingness to share information and resources with peers in the industry. Social media has helped break down some of those barriers, as companies reveal more about how they operate. “I think there was always a competitive advantage,” he says. “If someone worked out a great solution, they were encouraged not to share that much because that adds to their profitability. But I think transparency over the last couple years has really opened up.” PAGE

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RIGHT: The L.A. County Sanitation District fleet has about 1,100 fleet assets. BELOW: The COVID19 pandemic has helped accelerate some technology advances in electric vehicles. SOURCE: DAVE BOLDEROFF

CONSIDER LONG-TERM GOALS WHEN BUILDING INFRASTRUCTURE

To date, the agency has 83 chargers in the ground, spread across seven different facilities, Bolderoff says. This includes some faster DC chargers that will be needed for heavy equipment specifically. “It’s been such a huge learning experience over the last two years putting in underground utility infrastructure, working with organizations to get grant funding, and really getting a good understanding of how much it will cost for full-scale deployment of the required electric charging infrastructure,” he says. In the sanitation district’s case, they are also sharing their charging infrastructure with the community at large. “We’re not only charging our own fleet vehicles but we’re allowing the public and our employees to use these charging stations as well,” Bolderoff says. “So we’re providing a value to the local region, which is good.”

Before an organization or contractor can start piloting electric construction equipment, Bolderoff says a lot of work needs to be done first, starting with the infrastructure that’s required to charge the equipment. Fleet managers need to evaluate what they believe their future needs will be and plan accordingly. “The worst thing you could do is trench and size your underground utilities for just the pilot or phase one implementation,” he says. “If you have to retrench again, you’re talking hundreds of thousands of dollars that you’ve wasted by not doing a good job of planning for the next 10 or 20 years.” The L.A. County Sanitation District has spent the past couple years building out its charging infrastructure.

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PLAN FOR CHANGES TO MAINTENANCE OPERATIONS

district’s new material recovery facility. “We’re seeing the technicians that have to maintain this equipment now requiring additional skills,” he says. “There’s a lot of cool stuff going on in robotics and AI, which we can see coming into the heavy equipment space as well, going forward.” Of course, integrating electric construction equipment into fleets will create yet another source of data, which can present a fresh challenge. “A pain point of a lot of equipment managers out there is data overload,” Bolderoff says. “All of a sudden, we’re getting this other batch of data that we’ve got to understand and manage.” This requires identifying what information you need and how to incorporate that data into workflows. The value of these data points can further help manage fleet costs. The L.A. County Sanitation District is beginning to understand peak demand times

It’s no question that electric construction equipment will fundamentally affect fleet maintenance, as lithium-ion batteries replace diesel engines. One of the biggest benefits is that electric machines contain far fewer parts to replace and repair. “On a typical diesel-powered heavy-duty on-road truck, you’d have 30,000 individual parts,” Bolderoff says. “With an electric truck, they’re estimating that could be only 7,000. You’re cutting that down by 75 percent. So when you have fewer parts, you’ve got less that can go wrong.” Not only will the number of components change but also the types of components. Additional sensors and electronics will alter the skillset and function of service technicians in the years ahead. Bolderoff says he has seen this with the increase of robotics and AI in the sanitation

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YOU KNOW, 2020 — WE ALWAYS JOKE — IT’S BEEN A TERRIBLE YEAR. BUT I THINK IF WE CAN TAKE ONE THING AWAY FROM IT, THIS HAS EXPEDITED SOME OF THIS TECHNOLOGY. WE JUMPED AHEAD TWO OR THREE YEARS.

and how that impacts the cost of energy with the light-duty vehicles that have been in its fleet for the past two years. The agency plans to learn more through the heavy-duty equipment pilot, which Bolderoff expects to kick off mid-year. Bolderoff also believes that the model for maintenance with electric equipment will completely change, relying less on the capabilities of in-house mechanics. A concept by Nikola, which uses hydrogen fuel cells for electrification, will charge a fee per mile that includes maintaining the equipment. “It’s taking some of that risk off the end user, and the OEM or the dealer is taking on some of that responsibility,” he says.

“It’s very physically demanding on some of these applications,” Bolderoff says. “It doesn’t matter how comfortable or expensive of the seat you put in there — it’s very tough on the body.” The fleet manager’s voice will be instrumental in helping organizations understand how to structure both personnel and capital as they integrate these new types of equipment and the potential cost benefits they can bring. “On the front end, these machines are going to be more expensive, but then on the back end, the cost to maintain per hour should go down significantly,” he says. Fleet managers should recognize that no longer are either electric or autonomous equipment a distant dream. The pandemic has greatly accelerated the necessity of advanced technology in today’s market. “You know, 2020 — we always joke — it’s been a terrible year,” Bolderoff says. “But I think if we can take one thing away from it, this has expedited some of this technology. We jumped ahead two or three years.” Bolderoff says the characteristics of flexibility and adaptability that fleet managers typically possess puts them in the perfect position to help this transition. “I don’t think people should be scared of electrification, by any means, or even transitioning to autonomous equipment operation,” he says. “I think it’s going to be the next big challenge, and they should embrace it.”

KEEP EYES ON BIGGER AUTONOMOUS PICTURE The adoption of electric construction equipment continues to inch the industry closer to the future of autonomous jobsites as well. The on-highway market is pouring tons of investment into seeing this come to fruition with more than 50 companies approved to start testing autonomous vehicles on public streets in California alone, Bolderoff says. Off-highway equipment is not that far behind, with construction sites, mining, and environmental services piloting a variety of autonomous projects, including Harsco Corporation testing Volvo CE’s new autonomous battery-electric hauler. Caterpillar has autonomously hauled over 2.2 billion U.S. tons over the past six years and remote operation of a D8T dozer is now available. Remote operation will provide heavy equipment operators a safer, more comfortable work environment, opening up the field to those who may have physical limitations or prefer working in an office environment.

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Journal of Equipment Management

Connected to your success Now you can stay connected to your ﬂeet and your business – instantly. From a cell phone, laptop or tablet, simply log on to My Komatsu, your free online portal for remote ﬂeet management, parts ordering and tracking, parts and service news, and other real-time, customized information. mykomatsu.komatsu

EMPATHETIC

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LEADERSHIP:

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SKILLS FOR LEADING DURING HIGH STRESS TIMES

Strong emotional intelligence skills improve decision making, personal well-being, and decrease occupational stress. BY GEORGIA KRAUSE

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tasks, situations, and even locations that we ast year’s AEMP University count on to do a good day’s work. We are all EquipmentSHIFT 2020 conference redefining the very core of our jobs — what presented nine interactive our responsibilities are, where will we perform webinars via Zoom focusing on them, who has authority to make decisions, personal development as a way which people require new support, and how to elevate yourself and your team. are we going to pull together these new By improving our soft skills — our Emotional variables to meet our goals in what Wally Intelligence — we are much better equipped Adamchik, President of FireStarter Speaking to lead our teams through the uncertainties in and Consulting, calls The New Landscape. today’s new work landscape. We are in a unique position right As a professional fleet L & SOCIAL FUNCTIO A N now to sharpen our soft skills manager, you manage O NIN OTI G EM SELFPERCEPTION to get us through today’s business and you lead Self-Regard volatility and be better people to get projects Self-Actualization Emotional Self-Awareness prepared to handle done correctly and STRESS unforeseen wallops on schedule. During SELF MANAGEMENT Flexibility EXPRESSION in the future. normal times, Stress Tolerance Emotional Expression Optimism Adamchik’s you and your EMOTIONAL Assertiveness Zoom presentation, team know your Independence INTELLIGENCE The New Landscape department’s goals Requires New and expectations on DECISION MAKING Leadership a day-to-day basis. INTERPERSONAL Problem Solving Interpersonal Relationships Reality Testing and Emotional Chances are you Empath Impulse Control Social Responsibility Intelligence, discusses manage the business EM G how your Emotional side of your department OTI NIN ONA L & S O CIA L F U N C TI O Intelligence (EQ) enhances with skill and efficiency. ©V ECTO OM B E .C R C R E AT O R – S T O C K .A D O and connects your management You also have excellent working and leadership abilities. relationships with your team members. It’s a Adamchik defines EQ as the ability to dual balancing act that calls into play your monitor and define our own feelings and operations skills and your interpersonal skills. emotions, as well of those we manage. Armed However, this year COVID has with that insight we can make emotions unceremoniously upended many of the PAGE

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IN a work environment,

©PENTI-STOCK | ©NARIN – STOCK.ADOBE.COM

strong emotional intelligence skills improve decision making…

I Adopt Beliefs based on my conclusions, as if everyone has the same conclusions and beliefs.

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as unreasonable reactions to other team members, self-isolating, risky behavior, and physical signs of burnout are signals the person is distracted, perhaps dangerously so. Because distractions can result in unintended actions and poor decisions that can have harmful ripple effects on other team members, managers need to step in to find the cause of his worker’s issue and help get that person back on the team’s track. When helping someone work through a tough issue, your most important leadership tool is looking that someone in the eye and saying “Hey, how are you doing?” with authentic interest and empathy. Adamchik reminds us that empathy is not about being ‘nice’ or ‘agreeable’. Empathy is the ability to step aside of your own needs and actively listen — acknowledge — the other person’s facts to identify what they may be thinking or feeling. In fact, research has observed that some aspects of empathy can be traced to neurons in the brain that fire when we observe someone else perform an action in much the same way as those neurons would fire if we performed the action ourselves. Adamchik says too that every person’s individual perspective — and the ways that perspective was formed — determines what

data as a video camera capture data. I hear words, observe body language and collect information.

work for us instead of against us, resulting in better well being, social functioning, and our performance. Adamchik defines these five essential components that configure our EQ: In a work environment, strong emotional intelligence skills improve decision making, personal well-being, and decrease occupational stress. When applied in a team setting, EQ builds leadership and increases team performance by proactively facing adverse conditions and crisis with clarity and optimism. Adamchik says the people we manage take their cues from how we withstand difficult episodes and the course of action we take. How we manage our stress as we ‘Keep Calm and Carry On’ is contagious including knowing how our team members are working through hard times. Adamchik stresses the importance of fleet managers noticing when a team member appears to be in distress, especially under current conditions. Behaviors that are out of the norm for that person such

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that I feel is relevant, and discard data that seemms irrelevant.

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that my data and meaning are accurate, and represent reality.

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board. Ignored and left to fester, the stress can reach levels that become unmanageable for the group. The COVID pandemic is a perfect example of blanket distress. Adamchik identifies the primary COVID stressors as VUCA: ❯ Volatility is the accelerating rate of change. Things are happening so fast and it’s hard to know where to focus. ❯ Uncertainty is the lack of predictability. How can we plan our life if we keep getting blindsided by random events? ❯ Complexity speaks to the interconnectedness of cause-andeffect forces. Who is the expert, who’s the authority, and why are we being forced to play Wack-a-Mole? ❯ Ambiguity adds the strong potential for misreading situations and people, resulting in decisions made with

we consider to be our facts. Simply put, your perception is your fact. Accepting and respecting that premise at the beginning of your discussion levels the field for everyone. Adamchik says to try this: When talking with your employee, envision the conversation between you as taking place on an empty stage. When you ask him/her “Hey, how are you doing?” the spotlight shines on you. When your employee answers, the spotlight redirects off of you and highlights him. By allowing them to keep the spotlight as they talk you convey that the employee’s part of the conversation is your primary immediate focus. You are letting them know in personal and professional terms that what they have to say has value.

WHY NOW? A bad day at work is one thing, but month after month of everyone having a miserable day at work magnifies the stress across the

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make up the problem. Provide additional details when possible, and be honest if you don’t have any answers right now. If Ambiguity has lead to a misread or a mistake, demonstrate Agility by pivoting to another solution. Agility is always forward thinking and is the quickest path to Plan B. Right now we are all seeking reassurance that the foundational needs that form the employer-employee relationship — physical safety, psychological security, job stability, and flexibility — are secure. Empathetic leaders use their EQ to dial into the needs of their employees and adjust to the moment. The result is a safer and resilient company with a fighting chance to flourish in the middle of a pandemic. Wally’s The New Landscape Requires New Leadership and Emotional Intelligence video presentation is available free to AEMP members on the AEMP University website under EquipmentSHIFT 2020. Wally Adamchik can be reached at wally@beaFireStarter.com and at www.constructionleadership.com.

mistaken input. Who’s on first? Fleet managers can help workers mitigate their team’s VUCA levels by offering information that may be at their disposal but not at the worker level. Adamchik suggests: ❯ Counter Volatility with Vision. Explain what upper management is expecting and how they hope to work the situations. ❯ Meet Uncertainty with Understanding. Allowing others to voice their apprehensions and helping them verify the accuracy of their concerns can help them to deal with known issues instead of anxiety-based assumptions. ❯ Clarity simplifies Complexity. Distill down complicated situations by isolating and prioritizing the components that

EMPATHY IS NOT ABOUT BEING ‘NICE’ OR ‘AGREEABLE’. EMPATHY IS THE ABILITY TO STEP ASIDE OF YOUR OWN NEEDS AND ACTIVELY LISTEN ACKNOWLEDGE - THE OTHER PERSON’S FACTS TO IDENTIFY WHAT THEY MAY BE THINKING OR FEELING.

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In a September 2020 survey titled “Hindsight 2020: COVID Concerns into 2021” managed by the Workforce Institute at UKG, employees from 11 countries were asked how well their management is responding to the COVID pandemic. Clean and healthy workplaces are meaningless without job security, flexibility, and work-life harmony. ❯ 43 percent say their company’s ability to balance workloads to prevent fatigue and burnout is a top priority. ❯ 59 percent of employees and business leaders said their company have taken some measures to guard against burnout; however, 29 percent of employees wish companies would act with more empathy. ❯ Burnout and fatigue are of equal concern for employees working remotely (43 percent) and those in a physical workplace (43 percent). ❯ Three in 10 employees and business leaders wished their organization had better leveraged technology to provide flexibility, especially when the pandemic was at its most chaotic.

This is especially true for those with families (34 percent), though this technology-focused wish exposes a generational divide between youngest workers (31 percent) to Baby Boomers (19 percent). ❯ More than a third of employees and business leaders (36 percent) are concerned about future layoffs and furloughs due to economic instability created by COVID-19. China (44 percent), Mexico (41 percent), Canada (40 percent), and the U.S. (37 percent) are the most concerned.. ❯ Concerns about job security span all generations: Gen Z and younger Millennials (35 percent), older Millennials (37 percent), Gen Xers (36 percent), and Boomers (34 percent) are all equally worried. ❯ 46 percent said quick notification about confirmed COVID-19 cases in the workplace is their top concern. ❯ 32 percent yearned for more communication – both sooner and more transparently – which was noted as primary regret for more than a third (35 percent) of C-level leaders.

PEACEFULLY7 | ISTOCK / GETTY IMAGES PLUS

Employee COVID Concerns for 2021

“While organizations made mistakes during the early days of the COVID-19 pandemic, employees also recognize the unprecedented nature of this once-in-a-generation event. Instead of dwelling on what went wrong, employees want their employers to adapt and evolve as quickly as possible. Those that have made changes to address and protect employees — specifically physically, emotionally, and with economic stability — have earned newfound employee trust, which will be a valuable commodity that helps ensure future success.” — Dan Schawbel, best-selling author and managing partner, Workplace Intelligence; advisory board member, The Workforce Institute at UKG

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AEMP WOMEN

IN EQUIPMENT LEADERSHIP

The She Get It Done foundation creates and supports construction career opportunities using social media and podcasts to explain and promote the trades to more women BY GEORGIA KRAUSE

Leadership, a round table discussion on how to lead more women into construction careers and the supporting trades. The women who participated in the round table discussion spoke with authority about what today’s women leaders can do to encourage willing employers and able women to team up to build successful careers. According to a 2019 analysis from the Institute for Women’s Policy Research (IWPR), between 2017 and 2018, the number of women working in production trades increased by 17.6 percent to 276,000 workers. While over a quarter of a million females in production and extraction is notable, the reality is that just 3.4 percent of these field jobs were held by

woman in construction is no longer an oxymoron. Technical, cultural, and industry changes are creating career opportunities for women in construction that just a few years ago didn’t seem possible or even exist. Now that the stereotypes, misconceptions, and stigmas of females in equipment management jobs have faded into the past, women with established construction careers are finding they have a unique opportunity to help guide more females into what were once called ‘non-traditional jobs’ in construction. During this year’s CONNECT 2020 in Las Vegas, AEMP hosted Women in Equipment

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AEMP

A Women in Equipment Leadership round table discussion explored how to lead more women into construction careers and the supporting trades..

‘disadvantaged’. Lane’s foundation, She Get It Done, creates and supports construction career opportunities using innovative social media and podcasts that both explains and promotes the trades. Lane also works with employers seeking to add greater diversity to their crews on how they can attract and retain women workers. Lane has found that mentoring an inexperienced woman seeking a construction career actually begins by educating her as to what career opportunities exist and how her skill sets, such as attention to detail and interpersonal communication abilities, are exactly the foundation construction hiring managers are looking for when seeking new hires for training and apprentice programs. Lane tells women, “Get comfortable with being uncomfortable. Step outside your regular boundaries. It is when you push and stretch that you prove to your own mind just how capable you really are.” New technology and the ever-increasing reliance on digital data to improve operations have created access to jobs in construction that women with degrees in civil engineering, environmental sciences, and technology find attractive.

women in 2018. Adding women office staff to these statistics still brings female participation in construction to less than 10 percent of the entire construction industry. On the positive side, the percentage of women classified as construction managers increased from 5.9 percent in 2003 to 7.7 percent in 2018. Navigating where and how to get on the construction equipment career track can be challenging for women. Government sponsored apprenticeships and union training for women are growing, and private employers are training more women, in part to ease the current skilled worker shortage. But efforts to build a well-defined career map need more attention. With that in mind, Michael Lane leads by example and operates a foundation to help women find success in the heavy equipment operation segments of construction. An operating engineer herself for 13 years, Ms. Lane is a whirlwind of enthusiasm and advocacy for women who are interested in and will benefit from a trades career, especially those women who labor under the description of

AEMP

Michael Lane runs the She Get It Done foundation, which helps create and support construction career opportunities for women.

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Brianne Hayes, equipment operations manager for WescoTurf Inc. in Sarasota, Florida,

Natalie Kerschner is a successful data analyst with Branch Civil, and while her title doesn’t immediately bring a dusty construction site to mind, her work supports the rapidly developing data and IT segments driving increased efficiency and productivity in construction operations. Kirsher came to Civil from a non-construction background and took advantage of every opportunity she was offered to get in the field to get hands-on experience. “It was a bit intimidating for me at first because most of my team has 20 years or more experience under their belt, but I’ve found staying curious and asking questions has been a wonderful learning opportunity for me,” Kiersher says. “I know I have my own things to offer when I come to the table, and this industry has been amazingly supportive.” Brianne Hayes, equipment operations manager for WescoTurf Inc. in Sarasota, Florida, relies on data analysis to manage her fleet with peak efficiency. “Our whole operation depends on key performance indicators. If you can’t measure it, you can’t manage it. I want to know my technicians’ productivity levels and everything about that piece of equipment,” Hayes said. AEMP posed this question to the Women in Equipment Leadership panel experts: What would you tell your younger self about how to be successful in your construction career based on what you know now? Here are their answers: “If I were to tell myself something in the beginning it would be to engage faster and engage earlier. I was very hesitant to really get out and delve into the industry fully, but ever since I’ve been more involved things

AEMP

have gotten better both personally and professionally.” “I would advise to give my younger self to get into organizations like AEMP early because they give you the opportunity to listen to someone else’s issues and really understand what they are saying.” “Go into the position with an open mind and be receptive.” “I would probably tell myself be more willing to step out of your comfort zone when you’re younger and listen more than you’re speaking.” “I would tell my younger self that my competence is not affected by someone else’s opinion.” “Soak up any and all information you can get. Things have to change. I guess something that I still tell myself every day is just keep swinging because that’s all you can do.” “I think as women, we’re constantly trying to prove ourselves and our growth to the men in the industry. I let that be my motivating factor for a very long time. So I think I would tell my younger self that there’s other motivation to have besides proving yourself and your worth to other people.”

I would tell my younger self that my competence is not affected by someone else’s opinion.

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Journal of Equipment Management

CASTROL IS PASSIONATE ABOUT YOUR BUSINESS. BUT THAT’S JUST HALF OF IT.

IT’S MORE THAN JUST OIL. IT’S LIQUID ENGINEERING.®

NT G S ES IN NG ET ME BR A LE GE CH F A TO AN M

AD to JU CL S CH IM TIN AN AT G GE E

©DLYASTOKIV – STOCK.ADOBE.COM

California orders zero emissions for all off-road vehicles and equipment by 2035

BY GEORGIA KRAUSE ©ELEKTRONIK-ZEIT – STOCK.ADOBE.COM

©ALBERTO MASNOVO – STOCK.ADOBE.COM

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Journal of Equipment Management

©LETOPISEC – STOCK.ADOBE.COM

California, frequently the forerunner in all things environmental, is taking control of its own emissions destiny; and more than likely, this latest tremor will send aftershock rumbles throughout the industry again including how fleet managers match their vehicles use to available energy. On September 23, 2020, California’s Governor Gavin Newsom signed an executive order requiring the California Air Resources Board to develop regulations which will mandate all — a full 100 percent — of new passenger trucks and cars sold in California be zero emission by 2035. In addition: ❯ All drayage trucks to operate emission free by 2035. ❯ All off-road vehicles and operations must be zero emissions by 2035. ❯ All sales and operations of medium and heavy-duty vehicles such as buses must be zero emission by 2045. Governor Newsom’s order reflects his concerns regarding how climate change is impacting California. Currently more than half of the state’s carbon pollution is made up of 80 percent of smog-forming pollution and 95 percent of toxic diesel emissions produced by fossil fuel powered vehicles. The California Air Resources Board has approved new regulations requiring truck manufacturers to transition to electric zero-emission trucks beginning in 2024, and Newsom signed a memorandum of understanding with 14 other states to advance and accelerate the market for electric medium and heavy-duty vehicles including construction equipment.

hen the EPA began to roll out new regulations as part of the 1990 Amendments to Clean Air Act, heavy equipment powered by fossil fuels experienced an earthquake that reconfigured the on and off-road construction equipment market forever.

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VOLVO CE

Fleet managers will see a wider choice of EVs “Off-road construction equipment as equipment manufacturers respond to state accounts for 43 tons per day of NOx emissions regulations; however, the consensus is that in the South Coast Air Basin,” said Wayne lighter duty compact EV equipment will be the Nastri, Executive Officer for South Coast AQMD. most prevalent. The region Orange County and major portions Dave Bolderoff, AEMP’s chairman of Los Angeles, San Bernardino and and fleet manager for the Los Riverside counties. Angeles County Sanitation Electric-powered vehicles Districts, says “I am excited (EVs) are trending as the to see Newsom and the favored technology State of California take for getting to zero aggressive measures emission operations. to reduce GHG Scott Young, director emissions. There must of electromobility and be a demand from automation for Volvo CE customers or imposed says, “We see electric regulations to motivate machines as a growing equipment manufacturers category.” Volvo CE has to invest in the research and already committed to electric M .CO ©O OBE L EG D O ROSHIN– S T O C K . A D development of new technologies equipment, pledging to stop like electrification.” development of diesel-powered compact Equipment manufacturers face significant equipment and shift the product line entirely hurdles to electrify many of the equipment to battery-powered electric as of next year.

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Journal of Equipment Management

Not So Fast - EPA Calls CA Plan ‘Aspirational’ Just five days after Governor Newsom issued his executive order, the U.S. Environmental Protection Agency’s acting administrator, Andrew R. Wheeler, sent Newsom a rather terse letter questioning the legality of the EO, as well as the effective application of what Wheeler calls a ‘singular technology’. “How do you expect to run an electric car fleet when you can’t even keep the lights on today,” wrote Wheeler citing California’s 2-hour power outage at the East Bay Municipal wastewater treatment plant that resulted in 50K gallons of sewage spilling into the Oakland Estuary. Wheeler also noted that Governor Newsom’s action was also likely illegal, as a mandate such as Newsom’s would need an EPA waiver to implement. Instead, the EPA acting administrator suggests California should support free market innovators to develop the technologies of tomorrow and leave the regulations and applications to the federal government. According to the Associated Press, Gov. Newsom’s office said he won’t be deterred. “While the Trump Administration tries to drive this country off a climate cliff, California is once again assuming the mantle of leadership in the fight against climate change,” said Newsom spokesman Jesse Melgar. “We aren’t going to back down from protecting our kids’ health and the air they breathe.” In his responding letter to Wheeler, Jared Blumenfeld, Secretary for California’s EPA called Wheeler’s remarks “political posturing” and suggested CalEPA and USEPA work collaboratively to address the effects of climate change. Time will tell.

Volvo’s lithium-ion powered ECR25 mini excavator and L25 compact wheel loader.

classes. “They must start somewhere, and there are some good use cases for smaller compact excavators, wheel loaders, and backhoe loaders for manufacturers to start piloting their prototypes,” says Bolderoff. “I am personally looking forward to working with a number of equipment manufacturers over the next few years testing prototypes and providing the necessary feedback before they scale for production models.” Volvo CE has promised $1.5 million and was awarded a $2 million grant by the EPA and administered by the South Coast Air Quality Management District for a commercial pilot of the company’s electric, zero-emissions excavator and electric wheel loader in California. Volvo is adapting equipment previously developed for the more mature European zero emissions market and will test the machines in real-life applications for a minimum of six months in California, beginning in September for the excavator and December for

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D UN GL HA

SEE (AND HEAR) THE WORLD’S CHANGES, FIRST FULLY CHARGES, AND ELECTRIC FLEET SCHEDULING BACKHOE As California pushes the zero LOADER emissions trend to increase use of electric vehicles, equipment managers bringing EVs into their fleets will need to adjust their procedures and usage scheduling, specifically how to keep their EVs powered and available. Locking and leaving a piece of equipment at a jobsite at the end of the day may not work well for EVs. Diesel equipment needs only to have a fuel truck stop by to top off the tank, but EVs need to be recharged which requires time and a power source. Electric construction equipment adds another layer of planning for the fleet manager to ensure freshly charged equipment is on site come morning. Ideally, a project will have an on-site power source or access to a mobile fast charging station, but lacking that the EVs will need to either have its battery or the entire vehicle returned to the shop each night to be plugged

the wheel loader. Another major challenge will be getting the required power and charging infrastructure to larger construction projects that typically use larger types and classes of equipment. The executive order states California’s Energy Commission, along with State Air Resources Board and the Public Utilities Commission, will be responsible for evaluating what infrastructure support will be required to support the levels of electric vehicle adoption described in the EO. Supporting infrastructure will be included as part of larger transportation projects, instead of being stand alone jobs.

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Need more to think about? Here are several electric vehicle information sources: ❯ Pacific Gas & Electric offers an informative guide to fleet electrification here ❯ Electrification Coalition offers its Electric Vehicle Procurement Best Practices Guide here ❯ National Renewable Energy Laboratory Plug-In Electric Vehicle Handbook for Fleet Managers available here ❯ Article: Volvo’s Drive to Electric – Your Questions Answered ❯ Article: Battery Powered Excavator on Zero Emission Construction Site

ANOTHER MAJOR CHALLENGE WILL BE GETTING THE REQUIRED POWERED AND CHARGING INFRASTRUCTURE TO LARGER CONSTRUCTION PROJECTS THAT TYPICALLY USE LARGER TYPES AND CLASSES OF EQUIPMENT.

PE TA IR – ST OC K. AD OB E. CO M

based on the number of hours the vehicle is used and the energy provider’s rate plan. In California, Pacific Gas & Electric (PG&E) offers several rate plans: ❯ Time-of-Use (TOU): With time of use plans the cost of electricity varies based on the time of day and season in which it is used. Electricity rates are higher during times of peak energy demand and lower at all other times. ❯ Peak Day Pricing: An optional rate plan that offers businesses a discount on regular summer time-of-use electricity rates in exchange for higher prices during nine to 15 Peak Pricing Event Days per year, typically occurring on the hottest days of the summer. Additional charges may include a distribution/transmission fee, a demand charge which is tied to the time of day the energy is transferred, seasonal rates based on weather stresses to the electric grid’s, or power factor adjustments credit depending on how efficiently the customer’s facility consumes power.

into an overnight recharger. Fleet managers with EVs who are responsible for their vehicle’s energy load profile will need to juggle their EVs charging time with both the project’s schedule and their energy provider’s charging window when high capacity electricity transfer is allowed and least expensive. Understanding the electric fleet’s daily energy requirements on both a per vehicle and total fleet basis will drive power up and usage scheduling. For example, a compact excavator might get eight hours of production time on one full charge, which might take eight hours. Already aware that the power demand window for the least expensive power distribution might be from 7p.m. to 4 a.m., the manager will need the equipment back in the shop by 6p.m. so it can be sent back to the jobsite for a 7a.m. start time. With no gallons per hour to calculate the electric vehicle’s cost to run, the fleet manager will track the vehicle’s flat power demand during charging in kilowatts for a per vehicle charge. Armed with this data, the fleet manager can determine the equipment’s cost efficiency

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AEMP EQUIPMENT MANAGEMENT LIVE:

HIGHLIGHTS AND SUMMARY PART ONE: CHRIS KUEHL BETTER THAN A BEST GUESS

Investopedia.com cautions that “reliance on standard forecasting tools can both fail to predict and potentially increase vulnerability to black swans by propagating risk and offering false security.” Kuehl explained that building economic forecasting models depends on accurate data, which is in short supply right now. “You can either have something fast or you can have something accurate,” he said. “You can’t have both. Right now we are getting data fast that needs to be corrected shortly thereafter.” Kuehl puts together a monthly credit managers index polling data gathered from what he calls ‘working economists’ — those who work for banks, Fortune 500 companies, investment firms — who he feels have a more pragmatic approach to their analysis. “Those managers tend to think out months in advance. They have told me they are seeing a lot CHRIS KUEHL of applications for future activity.” His credit manager index accurately has predicted expansions and retractions for more than 20 years. Kuehl also doesn’t base his analysis on consumer confidence numbers. “When you ask consumers ‘Are you confident?’ the consumers who woke up that morning with a

I keep a personal list that I call People Who Know What They Are Talking About (PWKWTATA). When I’m trying to figure something out or find an answer, these are the people who have impressed me with their smarts and generosity. I find PWKWTATAs at tradeshows, while doing interviews for articles, waiting in lines at airport snack counters. PWKWTATAs always give you more than their ‘best guess’. You know people like them, too, I’d guess. These are the people that leave you feeling confident they understand your questions and offer answers you can work with. AEMP is pleased to introduce you to some of these people for your own PWKWTATA list.

You can either have something fast or you can have something accurate. You can’t have both.

ADVANCING OR RETREATING: THE RESTART BEGINS AEMP’s leading expert speaker, Chris Kuehl, Ph.D, co-founder and managing director of Armada Corporate Intelligence, did a masterful job presenting his economic analysis of the effect Covid-19 is having on our industry at the Equipment Triangle Industry Foresight and Advocacy session during June’s Equipment Management LIVE online event. Kuehl reminded participants that a black swan-type contagious event affecting the economy was widely believed to be highly probable, but so far the construction industry has fared better than other economic sectors during the COVID-19 pandemic.

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BY GEORGIA KRAUSE

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THE CONSTRUCTION INDUSTRY has fared better than other economic sectors during the COVID-19 CONSTRUCTION EMPLOYMENT GROWTH: MARCH 2019 V. MARCH 2020 pandemic. 2.2% Construction

BUREAU OF LABOR STATISTICS

2.0%

Nonresidential Nonresidential Building * -0.2%

3.0%

Nonresidential STC 1.3%

Heavy & Civil Engineering

2.5%

Residential **

3.3%

Residential Building 2.1%

Residential STC -1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

12 Month % Change Source: Bureau of Labor Statistics

* Includes Nonresidential Building, Nonresidential STC, and Heavy and Civil Engineering ** Includes Residential Building and Residential STC

other consumer dependent sources. These have all but dried up in every state and city, and budgets have been severely impacted. There are never many options for state and local governments when it comes to working through a budget as they can’t raise revenue as easily as the federal government can and they do not have the ability to borrow as the national government can. They are left with budget cuts as the only response to a fiscal crisis.

job typically answer ‘Yes’, but those who woke up without a job answer ‘No’. Generally, Kuehl expects a moderate recession, not as bad as the 2008-9 recession. “That one was a classic recession born in the financial sector.” He feels that this recession will last only one or two quarters, eventually resembling the first quarter of 2020. Sectors already showing noticeable recovery are mining, gas, and oil, all of which strongly affects the heavy equipment market. “This is good news for AEMP members,” Kuehl said. You are in low exposure areas — construction, heavy equipment production, waste management. The highest risk sectors are those such as apparel, airlines and tourism. “Building new warehouse facilities in particular is fueling new construction expansion. However, locally funded state and municipal construction projects that rely on taxes and user fees have been severely impacted, which Kuehl says will lead to deep cuts. In the July 7, 2020, issue of the Business Intelligence Brief, Kuehl writers: “The sudden collapse of the economy has been felt in a variety of sectors, but few have been as seriously affected as state and local government as they depend on revenue from sales taxes, property taxes, user fees and

Journal of Equipment Management

ANALYSIS In response to the 2008 recession the states received a massive influx of money from the federal government. This was done as it was assumed that this stimulus would make it into the economy more quickly if it were the states that administered the programs. Remember that whole “shovel ready” argument? It turned out that states used the bulk of that money to protect their budgets for a year or two, but eventually they had to face their revenue shortages. Fortunately, the economy had started to recover a little by 2010 and 2011. This time the states have no expectation of receiving that federal help, and that means the cuts are starting already and are expected to be very deep. Funding is likely to be reduced across the board. PAGE

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AEMP EQUIPMENT MANAGEMENT LIVE HIGHLIGHTS:

How is COVID-19 affecting infrastructure projects and the technician shortage? BY GEORGIA KRAUSE

AV EL PH

distributors, AEM did two online surveys asking member CEOs what their concerns were and what their company’s outlook was for the year. Wood reported those surveyed said the impact of the virus was severe and required making adjustments. “Over one-third of our members furloughed up to half of their employees,” Wood said. “Our CEOs also said supply chain issues and order cancellations and delays continue to be a challenge.” Wood noted that a full 80 percent of the survey respondents say infrastructure investment is the “key to getting our industry back online.” Fisher reported that despite shutdown orders, dealers have been able to remain OS

–

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ecause so much of the fleet management industry is dedicated to building and maintaining our country’s infrastructure, AEMP asked the best experts on heavy equipment and government infrastructure to share their insights and updates on how COVID-19 is affecting the already complicated task of funding and activating current and upcoming infrastructure projects. Daniel Fisher, VP of Government Affairs, AED, and Kate Fox Wood, Director Government Relations, AEM, spoke at the Equipment Triangle Industry Foresight and Advocacy session during June’s Equipment Management LIVE online event. Shortly after last year’s CONEXPO, when COVID-19’s impact began commanding the attention of equipment manufacturers and PAGE

Journal of Equipment Management

open to service customers. However, while the public infrastructure projects were continuing into May, Fisher said the state DOTs have begun to cut back on their projects. “Unlike the equipment manufacturers, the distributors don’t see a lot of optimism right now as the backlog of projects begins to run down. There is not a lot in the pipeline right now. State DOTs and local governments are saying they just don’t have the revenue due to the lack of overall economic activity to fund projects and other services.”

Journal of Equipment Management

80 percent of the survey respondents say infrastructure investment is the “key to getting our industry back online.”

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These speakers share their insights into some of the industy’s main concerns.

part reauthorize the FAST Act for another 10 years and target 5G build outs. Woods says the bipartisan support for the infrastructure bills is encouraging. Fisher anticipates another stimulus package.

Fisher said the the COVID-19 relief packages, such as the FFCRA and Paycheck Protection Program have helped in the short term, but Fisher and Wood agreed that the uncertainty caused by both the continuing COVID-19 situation may bring and the upcoming expiration of the current FAST Act (Fixing America’s Surface Transportation Act, a $309 billion bill set to expire September 30, 2020) highway bill is causing concern. “You can’t underestimate the importance of certainty in this industry,” Wood said. That said, Wood sees something of a silver lining in the pandemic / highway bill situation because Congress is making infrastructure a hot topic again. Last summer the Senate began work on their America’s Transportation Infrastructure Act of 2019 (ATIA,), a five-year, $287 billion bill that would be a 27% increase over the FAST Act. In June, the House began work on its INVEST in America Act, which would provide $494 billion over five years and features an $83 billion COVID-19 package for fiscal year 2021 designed to help local and state projects. On July 1, 2020, the House passed the bill and sent it to the Senate. In addition, the White House reportedly is preparing a $1 trillion infrastructure package that would in

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BE CAREFUL WHAT YOU WISH FOR — THE INFRASTRUCTURE BILL & REALITY The second half of the session featured Preston Ingalls, President and CEO of TBR Strategies, who raised an interesting caution regarding counting on new infrastructure legislation and funding to lead the country out of the COVID-19 economic downturn. The underlying problem, as Ingalls sees it, is that even with adequate and timely funding for infrastructure projects there will not be enough people to support the work that needs to be done. The diesel heavy equipment technician shortage has grown dire. In fact, Detroit Diesel has estimated 50 percent of current diesel mechanics will retire in the next five years. “The CAPEX will be available, but the output of new equipment may not necessarily keep pace with demand. Nor will the availability of a skilled workforce,” Ingalls said. Our industry is going to be short 142,000 trained workers. Ingalls says fewer technicians are going into the profession for reasons such as poor PAGE

Journal of Equipment Management

they do, too. ❯ Examine your benefits. Are they competitive or just fair? Benefits have a financial value. Have you shared that value with your folks? Do they know? ❯ Are your folks clear on the vision of the company? Do they clearly understand their roles and responsibilities and their linkage to that vision? If not — why not? ❯ Keep ‘em happy! Use the Gallop Poll’s Q12 questions to find out if your folks are happy in their jobs. It is the most used instrument for examining employee attitudes and job satisfaction ❯ Provide a robust training program. I recently heard a manager ask “Why train them for our competition? They are just going to be recruited.” It goes back to the old saying, “What if you train them and they leave...but worst, what if you don’t and they stay?” If you think training is expensive...try ignorance ❯ Make sure the rewards are appropriate for the job. Stop rewarding for wrong behavior (overtime for breakdowns); reward the right behavior (goal attainment, increased uptime, pay-forskills, pay-for-performance, etc.). ❯ Reward for progression with specific knowledge and skill attainments. We should not only re-establish Apprentice, Journeyman, and Master career paths but pay bonuses to Master’s who recruit apprentices and extra bonus when they become a Journeyman. Provide for Payfor-skill programs. ❯ Make sure their supervisor is trained in leading people. It goes back to the old saying, “People don’t leave their job, they leave their boss.” ❯ Meet with your techs. Ask how they are doing. What issues are they facing? Provide praise for their work. Show you care as it can make a real difference in how they perceive the job.

connotation of the ‘grease monkey’ moniker and wages that have not kept up with other attainable non-college degree careers. Here’s his math: According to the Bureau of Labor Statistics (BLS), the construction and trucking industry will need to recruit 67,000 new technicians by 2022 just to meet demand and replace retiring Baby Boomers. This number does not include the more than 75,000 new diesel engine specialists that the BLS anticipates will also be needed by then. It does not include any expansion staffing based on the anticipated infrastructure stimulus package. Ingalls says the technician shortage will affect fleet managers by causing: ❯ Bidding wars for a limited pool of resources ❯ Unskilled personnel performing work and longer times for repair events due to the lack of adequate skills and knowledge ❯ Safety issues from inexperienced or over-worked mechanics servicing equipment ❯ Increased labor cost from overtime, higher pay, more attractive benefits to attract and retain Lower morale and increased turnover from overworked mechanics doing the work of several people To keep and recruit equipment technicians to meet the infrastructure challenge, Ingalls offered a list of 10 Things We Can Do to Keep the Ones You Have. ❯ Take a look at your hiring and retention practices. The most important decision about the right fit is before you hire. Hire slow — fire fast. Construction industry average employee turnover rate is 21% — is yours too high? ❯ Make sure you are paying in the top quartile if you want to keep them. Just as we look around to find out what other companies are paying for similar jobs,

Journal of Equipment Management

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become measurably evident that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians. Those in the bottom quartile less likely to achieve above-average returns. McKinsey analyzed management practices of several hundred companies and 5,000 leaders in industries such as transportation, technology, heavy industrials, manufacturing, communications, and professional services. What they found is companies in the top quartile for racial and ethnic diversity are 35 percent

orkplace diversity has been in discussion for several decades, but the topic didn’t start to become trend worthy until someone figured out how to prove that having a broad range of employees in a company not only satisfies legal EEOC requirements but also adds to the company’s bottom line. In the report “Diversity Matters” compiled by McKinsey & Company, researchers found that while employers know intuitively that diversity is important, in the last five years it is has

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70%

Companies who actively promote a diverse workforce are 70 percent more likely to capture a new market audience

DIVERSITY AND INCLUSION PROVE PROFITABLE BY GEORGIA KRAUSE

DIVERSITY IS WHAT YOU HAVE. INCLUSION IS WHAT YOU DO.

more likely to have higher financial returns than firms with less diversity. Companies with greater gender diversity are 15 percent more likely to show higher financials compared to their respective national industry medians. A study published in the American Sociological Review found that companies with the highest percent in racial or gender diversity have higher sales revenue, more customers, higher than average market share and profitability. Notably, companies who actively promote a diverse workforce are 70 percent more likely to capture a new market audience.

Journal of Equipment Management

Building more diverse companies is a fluid process, so as companies see the advantages of reaching out to and including a wider range of employees than they had in the past, some are dedicating corporate management slots to actively meet diversity and inclusion targets. Why? That’s the question Tiana Carter, Director for Culture & Engagement with Waste Management Corporation, discussed during her Inclusion & Diversity presentation at the EquipmentSHIFT 2020 Virtual Conference. PAGE

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A major reason companies are investing in proactive diversity and inclusion efforts is to find and keep skilled workers, especially important for companies like ours who are experiencing a shortage of skilled workers. Retaining good employees means less down time and workers who are satisfied with their position are more productive. Similarly, as some workers retire or change careers, those in line to move up to those jobs have different priorities than the people they are replacing. Workers now demand a realistic work/life balance. Diversity and Inclusion (D&I) are a set of tools that can help businesses find and retain workers in today’s environment.

INCLUSION Carter says building a diverse workplace starts with inclusion, and that mind-set is best achieved by starting at the top with leadership actively committing to values that appreciate individual differences, perspectives, and talents. Society for Human Resource Management defines inclusion as “the achievement of a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to the organization’s success.” “Inclusion comes before diversity. Diversity is not sustainable without inclusion. You can’t have one without the other, but you are less likely to have success,” Carter says. “Inclusion is taking the time to get input from different perspectives.” Inclusion is built on trust, respect, and working to silence the unconscious bias that causes stereotypes and attitudes towards other groups of people to form. The Harvard Business Review lists these six inclusive behaviors for managers:

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❯ Ensure that everyone is heard ❯ Make it safe to propose novel ideas ❯ Give team members decision-making authority ❯ Share credit for success ❯ Give actionable feedback Implement feedback from the team For example, the current American workforce consists of up to five generations, so employers need to be aware of what each generation sees as important to do their job well. Susan Early served eight years as recruiting director for a international trucking transportation firm and said her company’s PAGE

Journal of Equipment Management

DIVERSITY When diversity discussions first began after the 1964 Civil Rights Act was signed, the characteristics used to define workers were generalized into just a few over-simplified social categories: race, gender, age, religion, sexual appearance, national origin, disability. Today that category list has expanded to include 34 characteristics such as personality and thought style, cultural background, mental health, education, neurodiversity, socioeconomic background, geographic location, relationship status, military status, and life experiences. What began as a definition of what not to judge hiring decisions on, has become an index of potential attributes an employee adds to the success of the company. A key benefit of diversity is that companies with varying employee perspectives are better innovators and decision-makers. Senior employees can draw on a much broader range of experiences, their knowledge based proven solutions. They can help eliminate expensive and time consuming trial and error situations, and perhaps avoid succumbing to the “next big thing”. Linear thinkers like engineers bring tight focus to multi-layered projects. Employees with varying socioeconomic backgrounds may weigh in on cost-benefit analysis differently to offer different funding possibilities. As the emphasis on a diversified workplace grows, so will the effect on recruiting new employees. ZipRecruiter surveyed 6,178 active job seekers and 350 employers on their database in September 2019 and found close to 90 percent said a company’s concrete commitment to workplace diversity affects

We know

INTUITIVELY that diversity matters

Companies are investing in proactive diversity and inclusion efforts to help find and keep skilled workers.

best results came from listening to what current and potential drivers’ priorities were based on what time they were at in their lives. For example, Early said drivers with young families might want local and dedicated routes, while mid-career drivers might welcome regional or overnight routes. Drivers close to retirement might seek to transition to shorter hours instead of stopping work entirely. By working to accommodate these workers, her company’s retention rate was high, which in turn became a valuable recruiting tool.

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Donte Shannon, AEMP CEO, says diversity and inclusion must be a core value of an organization.

opportunities within AEMP. Growth and leadership opportunities are missed when we tap familiar networks for new talent. Our personal and professional networks almost always resemble ourselves. Instead of waiting for members to initiate interest in AEMP leadership, Shannon has started being proactive, gently ‘tapping members on the shoulder’ and encouraging them to become leaders in the Association. “Some people don’t recognize the value they can bring to an organization because they can’t see themselves represented in leadership. Directly communicating that their talent and diversity is wanted can make the difference in progress towards more diversity.” Shannon is one of the Association’s best examples of diversity and inclusion. As its first African-American CEO, he is eager to expand the association’s leadership to reflect and encourage more diversity. This year, AEMP has been intentional about adding more diversity to the AEMP Nominating Committee in order to help hold the Association accountable. An excellent resource for D&I information can be found at https://diversity.social.

their decision to work there. “This means that employers who deploy DEI programs can have a competitive edge in the war for talent,” said Ian Siegel, ZipRecruiter Co-Founder and CEO.

AEMP’S D&I GOALS Donte Shannon, CEO of AEMP, says recent social and civil unrest have triggered greater interest in diversity and inclusion for AEMP members. “Diversity and inclusion has been on AEMP’s agenda for a while, but violence such as that against George Floyd have our members seeking guidance on their own corporate responsibilities,” Shannon says. Shannon’s advice is solid: Diversity and inclusion must be a core value of an organization. “Interviews and conversations with current workers and job applicants must include talking about the company’s commitment to maintaining a diverse and inclusive workplace environment, as well as mutual support for both the employees and company’s success. If you are not talking about it, then it’s not a company value.” Shannon is also taking a historically unique approach to building diversity

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Journal of Equipment Management

Creating connections Helping you stay connected so you can work from anywhere. mykomatsu.komatsu

Make sure your technicians can identify what is a credible source of information online or on social media.

•••

IS SOCIAL MEDIA PUTTING YOUR EQUIPMENT AT

RISK?

Google is not always the best resource when equipment technicians have a question they don’t know how to answer. BY GEORGIA KRAUSE

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videos, apps, tweets, Instagrams, online Zoom meetings, tablet conferences, and phone messaging. “Just Google it” is an acceptable answer to most any question. And, with increased use of all these information technologies has come better familiarity and stronger comfort levels. We’ve gotten to know our new resources. All in all, this is a good thing. Except when the answer to your Googled question is wrong. Say a technician comes up against a repair situation that he’s unsure of — maybe an unidentified fault code, a reconfigured replacement part that doesn’t lend itself to the repair, a ‘customized’ component, or a unique repair situation. The tech does a quick online search to see if anyone else has experienced the same issue, and what they’ve done to fix it. His search results come back with an OEM site, equipment dealer sites, aftermarket parts and services companies, an association bulletin board, a tweet or two, testimonials from selfproclaimed experts, a couple of ads offering online lessons so you, too, can become an excavator operator, paid sponsors hawking their products, and dozens of independent videos produced by folks from all over the world. Hundreds of opinions, suggestions, and ideas are presented. The easy access to and acceptance of online information sometimes “Just Google it” comes with a is an acceptable sort of implied answer to most any credibility with question…All in all, the misuse of this is a good thing. brand logos, images, active Except when the links from site answer to your to site, reGoogled question edited videos, and marketing is wrong. jargon. To

ou are already familiar with AEMP’s commitment to cutting edge technology as an excellent resource for online multimedia management training and assistance. As the current COVID-inspired ‘touchless’ business environment continues to limit inperson opportunities to participate in hands-on training and eye-to-eye discussions, AEMP has quickly pivoted to take even more of our regular membership events online such as the AEMP Equipment Management LIVE event in June. The COVID limitations have had an interesting effect in many workplaces. Increased online and digital activity is growing greater acceptance of unmet experts and information resources. Today there is very little old-school reluctance to engage with

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JustAnswer says it is in no way associated be clear, we aren’t talking about fake or with Volvo. All other brands and trademarks malicious information. We’re talking about are the property of their respective owners contributed ideas and methods posted by who in no way endorse JustAnswer.) It wasn’t well-meaning people that may or may not until the 63rd YouTube result that an actual mesh with what an authorized equipment authentic Volvo Construction Equipment post manufacturer suggests or requires. Think in was displayed. terms of best practices to maintain equipment With so many and such varied search warranty protection, working safely, and correct results, the question is this: Who’s fix is the operations procedures. A good tech will spot an right one for your machine? Could one social inconsistency in a suggested fix, ignore it and media mechanic’s shortcut end up being your scroll down to the next post. But as the number mechanic’s two-day repair? of online offerings snowball daily — 500 hours of video are uploaded to YouTube* every minute Identifying and managing your information — weeding through thousands of results that resources is becoming increasingly important. come back from a query takes a trained eye Equipment manufacturers, educators, and and a good social media shop policy. trainers have well-established multimedia resources to offer on various social media Here’s an example: platforms. Volvo, Caterpillar, Komatsu are We recently did a Google search for ‘how terrific examples of the heavy equipment OEMs to fix a Volvo excavator error code’ that brought who offer excellent back 1,370,000 multimedia results in less You can’t always rely on social resources on their than a minute. It media results to be credible. public websites and wasn’t until the private networks. 16th listing that To maintain a Volvo CE result some control popped up. Returns and oversee the 1-15 included accuracy of their videos that were media resources, not produced by companies are Volvo, a redirect to AEMP using better viewer download a 1,300qualifiers such as subscriptions, multilevel page ebook from a scammer website that logins, and private networks. OEMs feature required a questionable registration process, their own YouTube and other platform channels a blogger offering lists of fault codes and to proactively manage their brand and comments, and a website that offered a Volvo information. But it is just about impossible to service repair manual for $99. completely police the unauthorized media that Narrowing down the same search to can find its way into your search results. In fact, just YouTube, the first result was Ask a Volvo Volvo says the videos you see on Volvo’s public Mechanic Now — Get Diagnosis & Repair Help channels are not intended for technicians but hosted by JustAnswer.com, a subscription rather cover high-level basic tips for buyers or service that presents a chat opportunity with equipment owners. Volvo’s videos focused on a Volvo mechanic after signing up for a $34 technician training are generally not promoted per month subscription. When asked what publicly — they’re shared just with certified the mechanic’s Volvo credentials are, the dealer technicians. site’s AI avatar was not able to respond. (Note: *YOUTUBE STATS-- HTTPS://MERCHDOPE.COM/YOUTUBE-STATS/

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Create a clear social media policy that includes using information found through social search.

5 TIPS FOR SOCIAL MEDIA MANAGERS AEMP’s Chris Turek says all contractors need to have a social media manager who is responsible for both what comes in and goes out of the company. “The social media companies will take down videos and posts that are unsafe or inaccurate, but the OEM’s have to ask them to do it. It is up to the contractor to manage how media is used within the company.” Start with a clear social media policy. Just as inappropriate websites are discouraged at most companies, it is important to identify what social media is acceptable in your shop. Determine which brand websites and 1 media platforms routinely offered reliable information. Ask the OEM and/ or dealership where their company posts information. Do they offer a secure digital resource specifically for technicians and fleet managers? Are sign-on credentials required, and how do you control those credentials? Do the manufacturers you work with 2 endorse any third-party resources? These sources may include trade associations, publications, Wiki sites, professional training facilities, or government agencies.

Journal of Equipment Management

Has the manufacturer or parts distributor identified unreliable sources? Apply that information to your Internet filter system to block access to them. Add safety and source verification into your staff meetings. Everyone has their own way of interpreting multimedia. Discuss examples of what makes a video or online post a reliable resource and what makes an unmet online ‘expert’ creditable. Be aware of what media resources are being accessed. To guard your own liability, make sure any videos or images made by workers in your location are approved by a manager. Turek says, “A contractor company needs to think about how their company name is seen. Using visual technology as part of your training program is a great idea, but think about if someone outside your company used your shortcut and it created a problem. All social media postings should be approved in-house before they go online.”

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A E M P .O R G | 20 2 1

TRENDS DRIVING YOUR CONSTRUCTION EQUIPMENT IMPROVING EQUIPMENT RELIABILITY

of lubricant decision-makers in construction say extending the lifespan of their equipment is a priority of construction firms experienced equipment breakdown in the last three years

INDUSTRY TREND

THE SHELL SOLUTION

RENTING MACHINERY Equipment is rented when required to free up capital and hit tight deadlines

High-quality lubricants to maximise equipment protection and productivity

PREDICTIVE MAINTENANCE Maintenance focuses on data, preventing failure and downtime

High-quality lubricants and expert services to keep equipment running

TECHNICAL INNOVATION Manufacturers are producing new and improved equipment

Innovative products, e.g. Shell’s gas-to-liquid (GTL) technology

SPECIALIST EQUIPMENT Businesses are diversifying and need more specialist equipment

Multi-tasking lubricants for different types of machinery to simplify selection

Find out more by visiting www.shell.us/construction

SHELL LUBRICANTS WORKS CLOSELY WITH CONSTRUCTION COMPANIES WORLDWIDE TO DELIVER SAVINGS. Venezuelan company Dragasur operates heavy-duty equipment such as trucks and cutter-suction dredgers. Dragasur wanted to reduce its operating costs and worked with Shell to obtain a lubrication solution. The Shell technical team recommended Shell Rimula R6 M heavy-duty diesel engine oil. The company has extended its oil-drain intervals by 180%, increased the availability and reliability of its units, and reported annual savings of US$1,247,758.1

Sureway Construction Management in Canada was using separate products to lubricate its wheel tractor scrapers’ final drives and transmissions but faced the challenges of managing oil changes and mixing the products. Since switching to Shell Spirax S6 CXME, Sureway has reduced its oil consumption and maintenance costs, and increased productivity through less downtime, which give it reported annual cost savings of US$140,298.1

Saving reported by one customer. Actual savings may vary, depending on the application, the current oil used, the maintenance procedures and the condition of the equipment.

WHAT GETS MEASURED, GETS DONE:

PRELIMINARY RESULTS FROM THE AEMP JOINT TASKFORCE BY GEORGIA KRAUSE

applying materials, labor, and capital effectively. We have noticed a severe shortfall in most fleet organizations in measuring performance and cost. Most fleets only measure the cost of their efforts, with only a few showing their net benefits or returns on investment. We ask senior leadership to pour millions of dollars in CAPEX and OPEX investments with little to show for that investment. Imagine spending a large sum on a stock purchase with no feedback on that investment. The only measure you have is the amount of money spent on acquiring the stock but no information on its yield or performance. As outrageous as that may sound, many fleet organizations do just that. Download Preliminary Report

o be successful, you need to have a set of measurements to evaluate the effectiveness of your enterprise’s progress. Working without that information is like driving a car without an instrument panel. Progress is made when you know the vehicle’s speed, fuel needs, temperature, etc. Business has the same requirements. You must constantly monitor and measure your progress to ensure you are

What Gets Measured, Gets Done: Preliminary Results from the AEMP Joint Taskforce

“Measurement is the first step that leads to control and

AEMP’s CEO, Donte Shannon eventually to improvement. , FASAE, CAE, AEMP created has been champio youa bold can’tand measure something, ambitiou ning the importa equipmentIf manage s strategic plan, nce of envisioning an rs with new educatio you can’t understand it. Ifn you evolved organiza partnerships in AEMP’s growth. offerings, training, “Data is gold and tion which prepare Recently, To be successful, you need to have a set of measurements to evaluate the and most importa can’tAEMP understand can’t is strivingit,toyou s future professi ntly, data. be the premier onal effectiveness of your enterprise’s progress. Working without that information is performance and increase e resource for control it. If you the can’t bottomcontrol line for it, like driving a car without an instrument panel. Progress is made when you knowlaunch a study on mainten company owners,” the data that helps our member ance you can’t improve practiceit.” s and their says Shannon equipme and nt management the vehicle’s speed, fuel needs, temperature, etc. . Addition ally, when thinking teams enhance The follo and construction costs, partnering with CFMA is an ideal choice about how best wing grap financial manage Preston Ingalls, –H. James Harrington, IBM Business has the same requirements. You must constantly monitor and measure to manager, author, because of ment. Richproject hicthe Donte Shannon show strong National Account King, s the link between , and CEO of Harrington your progress to ensure you are applying materials, labor, and capital effectively. vario s Manage r for United Rentals, the AEMP Board, initiated us met goals and poll Institute rics and a project a and select task force led Randy group of AEMP We have noticed a severe shortfall in most fleet organizations in measuring performance the resp by members of also by Dennis and CFMA member Bosman, CEM, Equipment onse perc both associat Walker, Senior Manager with and cost. Most fleets only measure the cost of their efforts, with only a few showing their s to determine ions, and to test benchm entage GRANITE, ark comparisons. what the waters for for each net benefits or returns on investment. overall interest in participa current levels of measurement to define : Answ The taskforce are being ting in a more er Cho used polled ices comprehensive Maintena We ask senior leadership to pour millions of dollars in CAPEX and OPEX investments with little to 143 showparticipa for thatnts, investment. percent) came survey to use nce cost with an from for When Main percentage of the s highway Imagine spending a large sum on a stock purchase with no feedback on that investment. The only measure you have is theequal amount heavy responses from tenance cost as a percent segment as the ParticipantAs respo asked ifPerc of estim both Main emphasis of the as a perc joboutrageous associations. of money spent on acquiring the stock but no information on its yield or performance. as that may sound, many titles ranged surenta tena nd ated repla The majority vey ge of nce study was primarily from ent of annu Number Executive VP, having entsresp onde of responses Total plan onlabo would r cost fleet organizations do just that. nts with Production Manage CEO, CFO, Fleet Manage heavy al revenue(74cement valu s as a perc responde of equipme r, Director, VP ned main almost KPI beInter nt aka r, Director of Finance e (ERV) in ue “Yellow Asset Tota nts nch estval ent topic The tena Manage Iron.” survey l prevment, of annu answering participa nce Instead, business owners can ensure the maximum return on their investment with a strong set ofnts Keywere Performance Indicators (KPIs)., and Shop Manage entiveVice Presiden yes, the all - 92 pe marks, al revenue asked to identify r. and Total perc t, Equipm operations. The question rcent which metrics survey presente ent of eme predictive main ent Manager, of com y saw the 23.0 It goes back to the classic three bodies of knowledge: or KPIs they were Main other metrics d participants 8%- said tenance rgency tenance if theirs were currently with 42 metrics nefi bench mon and be work (EM usingover as not listed. 1. There are things we know we know, to measure 54.5 t developed by Main time % their 33 ) as % of % of maintena tenance the subgrou fleet manage measu mark me consist5% The largest respons ent p. nce Participa main ment labo tric 34.9 2. Things we know we don’t know and, hours Maintena nts also had the re act tenance r dolla s to 7% 78 rs as equipment utilizatioe was option to ivity 38.4 nce store hours Respo and res6% Pieces 3. Things we don’t know we don’t know. n, with 74 value as a percent of main add 50 ndent of equi percent of the ults a if perc pment s we 26.57% . they The dilemmarespond is that measurements fall into the third Contract ent of estim tenance mate ents 55 per mec saying they used asked or cost partici would be re 16.7 rial dolla ated repla hanic body of knowledge - we metrics as a perc Inventor Leading indicators (measuring the process) are typically input oriented, 8% rs tojust didn’t know what we 38 cement track equipme ling to y turns ent of tota (mobile fleet and anopate in a wil25.8 value (ERV didn’t know.nt uptime or ratio Inventor hard to measure, and easier to influence. Leading indicators change l maintena only) 7% 24 nymous confidentia usage. Next was ) help y service nce cost 11.19% l est Inventor level ance gap, you need a good before lagging ones do and usually result in lagging indicator actions. 37 themainten information s costToasremedy to tra ablish KP survey to y stockout a percenta ge ofand ck 2.80% Stores annual balance leading lagging KPIs focusing on 16 revenue and cos fleet pe I bench value per percentage withof55 ma percent rform20.98% Percent stores pers measuring equipment maintenance effectiveness and/ stating 4 perce ts. The ance rks they tracked of ma 13.2 nt- sai this cost Lagging indicators (measuring the results) are typically output-oriented metric. Total num man hours char on or asset management. This means indicators or metrics 30 d yes jority - 9% The third ged to The tas ber of store 74 highest . 17.41% measuring results. Lagging indicators are often easy to measure but Average work thatenot only show your activity but also the results respons 19 kfo line item hours was a tie between rce wil expand backlog s per hard to improve or influence. 5.59% Percent per mec of that activity that answer the question, “Are we preventi 25 ve mainten commit ed into l be of hanic (wee attendant ance as a 6.99% Maintena maintenance overseeing management of our assets prudently?” a percenta ks) 8 will mo tee of explarger ge of the hour total nce hour 2.10% The problem withhours many indicator measurements are Training and off-road ly to main ly employees 10 the nex ve to the erts wh equipment idling dollars to tota A good way to think of the balance between the two is cause and effect. hoursthey focus om tenance spen only on financials and arrive too late to l plan Maintena at 41 percent and eve t level of study27.2 3 to 7% nce mec t per year per supervisor ratio t hourly pers each. affect the results and focus on the future. 1.40% Maintena onnel stand ntually research hanics 39 Maintenance to main mechanic nce mec de ardiza tenance ics Training hanics The Society for Maintenance and Reliability Professionals (SMRP), a trade associationmechan for maintenance and reliability professionals 9% tion liver 11.1 2 to enginee planner to main hours per produ a4.90 r ratio received The tas tenance ratio Annual across all industries, advocates measuring at least 15-20 leading and lagging metrics to track both performance and cost. mechani ct. % 16 no respons kforce CAPEX engineer es. Similarly, c 1. ’s ob as a perc Decid s ratio Prevente storeroom perform 7 jec 8.39% SMPR’s Body of Knowledge basic set of measures includes: business management, process reliability, equipment reliability, ent of annu e on d ance 2. De s are 13.2 which tive & Planned (PM) and pred 9%: al sales costs was focus 12 cide organization & leadership, and work management. Collectively these measures onby capital, labor and materials (CLM). chosen me icted main wh trics tenance (PdM) sche 3. De Inventor 4 percent of participaless than or%KP 19 velop at constit 4.90 sche y price dule com The Association for Equipment Management Professionals (AEMP) and the Construction Financial Management Association ute0% nts. guide 4. De data curre dule complian Equipme s tha Is for tracki 7 pliance Interesti ngly, this lowpractices and costs. Up to this point, velop line ce t spe ncy (per nt ng bo (CFMA) have long recognized the need for commonality in how we measure response criteria s to16.0 cifi 5. Ad Equipme utilization cent) validatemaintenance acq8% 0 th perfo s what consulta min nt to sel39.8 uire tha c metric (ho there have been several efforts but no definitive list of metrics to serve as a standard. This is changing. nts Idling perc availability perc often ect 6% Subgro ister a sur t observe - despite 23 w is it rmance and vey to41.2 the ind informatio the calcul large sums of mainta up (appro Idling perc entage for off-r entage to sche ust n. a 0% ated— costs sho money spent dule oad equi xim 31.4larger gro ry’s Best 57 in con on 6. Co the num uld be purchases of Correctiv entage for on-r of the pment 7% fidentia ate ly 220 59 up inc llect direct buy and recom e oad equi Best erator and lud com lly of 7. Usi replenishment 4.90 Planned maintenance (top www.aemp.org 45 all and de mended the%num panies ing of stock items, ng cor compile (CM) from pment 5 to maintena of )— . nom few metrics are 74.8 res rela 8. par Perc be nce prev Devel ults3% 7 ticipanAEMP me 10 perce inator entage tive ana rs. accuracy used entive . nt). op a mb Main ). storeroom efficienc to track percenta ts wil lysi28.6 Root caus of rework / SMRP report 7% 107 s, ide l be anoership (wi call back ies. ge estim tenance (PM) e of anal ’s mu ntif s ated to Overall lti-ind showin41.2 nymous th hea 6% y the top We are 41 g the actual equipme ysis (RCA) to ustry 25.1 and ref vy equip RCFA com Return nt effec WC me to tra all excited 7% results of 5 to5910 pe on net erred ment) and tiveness pleted ck tric the rce by bo asse 20.28% s). (OEE) to as Return nt ind th lea this stu t (RON 36ust The be on an alp CFMA’s A) ding ry ave to classif dy and 13.9 Mean time capital employe hanum Highw nefits y as Be (measu 9% loo rage 29 1. A sta for bo d com eric de ay Heavy st ring betw k (ROC of the een failu pared Mean time E) nd th org 18.18%the pro forward20 signat Best. re (MTB 2. A sta ard on to hav to the ani to repa cess) or to 17.4 zat8% how F) www.aempFuel ir (MTT nd Best ions and26lag ing a com burn to tra .org R) 3. A sta ard to of the ck 9% include: 11.1 track Total resp & downtime Best nd 25 ging (me mon or intenan mainte ma ondents 4. A me ard to compar asuring stand 30.7 ide nan7% - 143 ed to the res ard set ce-rela ce activit 17 5. A me ans to com ntify RO14.6 world y and of ults) ted I from 9% pare class practic metric metrics the the ass costs. 44 6. A me ans to com metric (using 11.1 s. e 9% con effo 21 et s par agains manag structio rts. e to 7. A pro ans to com the5.59 ement n ind Best% t others wit 16 pare cess ustry functio of the to the38.46% to me h Famed can sim 8 ilar n. Best be asure use writer opera in the progre st across and 55 ind tions. all ss of MA areand engine www.aem measuCFrem improv industries ustry, and er, Ro the ement (W p.org ent. extremely exc bert efforts orld Class) potential ited Heinlein, return and mo onc or cos tivated e said, “If ts sav it to mo ings if abl ve this can’t be exp e to projec res close t forwa sed in figu that gap. rd and res, it set the is not stand science. ard for It is www. fleet opinion.” aemp. perfo rmanc AEMP org e and cost

By Preston Ingalls, President/CEO, TBR Strategies LLC Edited by Donte Shannon, FASAE, CAE, CEO of AEMP

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ES TO to m Wh CK .C or ba pa en OM n h sk jo la ie ir he ills b a nc s n ing th r u w pp e a ee , e s it lic w d co ef h o m u l n h i s a nt r ke p a e o ’s r ’ s s r ny s . to

ON EN KZ



CO RIN G V I AND D

Build season is upon us, and responses from AGC’s 2021 Construction Outlook National Survey show 54 percent of those surveyed said they are having a hard time filling some or all positions, even with increased base pay rates and incentives. When asked to identify which issues are the biggest concerns to their firms, 43 percent of respondents listed worker shortages and 40 percent despaired of worker quality. AGC says overall, 35 percent of its respondents anticipate adding more people to their company’s headcounts this year and 41 percent plan to keep their headcounts as is. Comparing union and open shop hiring, only one-quarter of union employers expect to increase their headcount, with 36 percent

Today’s COVID world requires new metrics for measuring a job candidate’s potential.

BY GEORGIA KRAUSE

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OSHA agencies are defining their own guidance. See California’s Act Now Advisory and Pennsylvania’s Guidance to the Construction Industry for examples.) This year also presents changes in the available labor pool configuration. The Wall Street Journal recently wrote, “The Coronavirus pandemic is forcing the fastest reallocation of labor since World War II.” Workers who initially thought they would return to their pre-pandemic jobs are finding those jobs have disappeared. This presents both a conundrum as well as an opportunity for employers looking to fill positions this year. This is a time for changing our hiring

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anticipating a reduction. Open shops seem more optimistic with 40 percent reporting they expect to add employees and only 18 percent expecting a decrease Cue the pandemic. The AGC survey also says 84 percent of survey respondents list the pandemic’s impact on projects, workers, and supply chains as their number one concern. AGC’s survey cites COVID mitigation issues, infection risks from nonemployees spreading to jobsites, and questions about inadequate legal protection against unwarranted virus-related claims from worksites. (OSHA continues to be the national resource for COVID employer/ employee protocols; however state

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perspectives. COVID has pushed many good, skilled workers out of their jobs through no fault of their own. The old metrics for measuring a job candidate’s potential, as well as entrenched corporate directives, hinder finding valuable employees in 2021. Don’t assume that a laid off or furloughed worker is now a past employee. Assumptions that the worker has moved on or has taken another job limit the labor pool available to you. HR experts are finding that COVID-displaced workers are overlooked or forgotten. Some may have taken ‘bridge’ jobs to get through the pandemic but are still a good fit for your now open position. Ask them. And, if your company has a no rehire policy, get over it. As for workers still hanging in with you, in a previous AEMP post, AEMP CEO Donte Shannon talked about ‘tapping someone on the shoulder’ to get them to participate in jobs they may not have seen as a good fit for themselves. Now is the time to talk with current and furloughed employees about transferring their skills to other positions within your company. Monster’s 2021 Future of Work Survey says the top four most important skills employers are looking for are dependability, teamwork/

Journal of Equipment Management

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collaboration, problem solving/critical thinking, and flexibility — valuable assets that an employee may have demonstrated well before. Consider tapping the shoulder of a current or past worker and investing in some additional training and transferring those assets to an open position in your company. Training a recently furloughed worker eliminates the need for extensive new-hire onboarding and cultural alignment. This hiring season, balance the worker’s or job applicant’s task skills with his / her usefulness to your company. A solid knowledge of the industry and your company in particular are directly related to Monster’s top four most important skills.

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“What we’ve got here is failure to communicate.” - Cool Hand Luke

s it us? Could it be we as an industry aren’t doing a good enough job of communicating to potential employees that a career as a diesel tech is time well spent? According to research done by ZipRecruiter, there is a gap between what employers say they are looking for to fill a job and what job seekers think employers want. In some cases, that gap becomes a pothole that impedes good jobs from finding good workers. The ZipRecruiter comparison highlighted two fairly simple issues that are problematic in the current hiring process. While it is up to the job applicant to provide documentation of work experience as it applies to the job opening, if hiring managers are not explicit enough in their job posts about exactly the skills, experience, and qualifications they are searching for in a new hire, the applicant is already at a loss. Additionally, if the job post doesn’t detail the job’s tasks, a potentially great hire will simply pass to the next job posting. Let’s talk diesel technicians. The ZipRecruiter comparison showed key features such as having a CDL license, ASE diesel or AEMP CEM certifications, and telematics experience useful for diesel technicians weren’t mentioned in either the job descriptions posted by employers or offered in the respondent’s resumes. Both hiring managers and job applicants assumed the other understood the job’s day-to-day responsibilities included these assets. The result was a missed opportunity. A job post that says, “Diesel Technician will identify and resolve potential defects of off-road earthmoving equipment by troubleshooting, conducting preventive maintenance, and calibration procedures using OEM and leading aftermarket test equipment” tells the applicant not only what the job is but also indirectly says the company works with specific equipment, probably leaning towards one brand, has embraced technology and trusts the tech work within set parameters. AI startup firms like Textio can help hiring managers build better job postings that give the job description the detail and voice required to interest an applicant. Now, blame the algorithms. In the old days, hiring managers posted open positions in newspapers and job seekers responded by phone, in person, or by letter. Sometimes we’d get lucky and a recruiter or another employer would send us a lead and referral. The common denominator was the opportunity to make human contact. Today approximately 38 percent of medium size firms and more than 70 percent of large companies use applicant tracking (ATS) forcing job seekers to maneuver around qualifiers such as knockout questions that crunch the application data and rates everything from keywords and data tags to punctuation. With luck the applicant’s digitals tickle a preexisting ratio of positive matches which then allows the computer to forward the applicant’s resume to a human. Job applications that are one match short go right to cyber hell. No human contact, no chance at a job match. ATS prepackaged programs organize job seeker’s based on experience and skill sets but used right off the shelf they don’t reflect the filters specific to our industry. If you use AI or ATS screening software, work with your vendor or recruiter to fine tune the filters to best reflect what you are looking from the audience you are reaching. Susan Alvarez, a transportation recruiter interviewed in a previous AEMP article, says employment software often does a much better job of screening out than pulling in. “You must communicate with the applicant at a common point that fits you both.” Catch more applicants with a broader net. It might seem like more effort, but you’ll have a better chance to catch the right applicant. 20 2 1 | A E M P .O R G

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Journal of Equipment Management 2021

Articles inside

AEMP Equipment Management LIVE Highlights and Summary

AEMP Equipment Management LIVE Highlights Infrastructure - Capitol Hill, the White House & Beyond

Diversity and Inclusion Prove Profitable

What Gets Measured, Gets Done: Preliminary Results from the AEMP Joint Taskforce

Rehiring and COVID

Adjusting to Climate Change Brings Changes to Fleet Management

Top Experts Share 5 Insights That Will Change Construction Fleet Management

AEMP Women in Equipment Leadership

AEMP, John Lennon, and The A-Team Making the Best of a Unique Time

Refocus on the New Horizon

The Year of the Pandemic

How to Prepare Now for Future of Electric Construction Equipment

How to Boost Profit with Construction Fleet Maintenance Technology

Empathetic Leadership: Skills for Leading During High Stress Times