SNEAK PREVIEW FLEET MAINTENACE Stay prepared for winter with diesel engine do’s and dont’s.
January/February 2021
THE
FUTURE OF TECHNOLOGY
SPECIAL SECTION
HOW TO MANAGE DATA AND PRIVACY
2021 B US I N E SS SU R V I VA L G U I D E Find the latest news at www.ForConstructionPros.com/RENTAL
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B O B C A T. C O M / E 2 6 R E N T A L
When your equipment can do more, you can rent it more. Build your fleet of Bobcat ® equipment and be prepared for any customer request. Bobcat is a Doosan company. Doosan is a global leader in construction equipment, power and water solutions, engines, and engineering, proudly serving customers and communities for more than a century. Bobcat®, the Bobcat logo and the colors of the Bobcat machine are registered trademarks of Bobcat Company in the United States and various other countries. ©2020 Bobcat Company. All rights reserved. | 1413
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VOLUME 43 ISSUE 1
JANUARY/FEBRUARY 2021
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COVER: VIRTUAL REALITY: A ‘JUST-IN-TIME’ TECHNOLOGY FOR A COVID WORLD
18 BUSINESS & FLEET MANAGEMENT
Navigating the Legal Maze of Rental Purchase Options
In the rental industry post-COVID, there have been more requests for rental purchase options and outright equipment purchases.
24 TECHNOLOGY & SOFTWARE
IN EVERY ISSUE
The Future of Data and Privacy in Construction’s Digital Age As the construction industry wades further into a digitized future, it’s imperative that companies exercise caution in regards to data.
04 Everybody’s Business While none of us know what could happen this year, it’s still imperative that we hold a sense of normalcy and set some goals.
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28 BUSINESS & FLEET MANAGEMENT
Part 2: The Ultimate Guide to Rental Marketing (How to Rank on Google for Free)
06 Market Watch
34 FLEET MAINTENACE
10 New Products
37 Industry Update
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42 Eye on Rental
TECHNOLOGY & SOFTWARE
“surviving” emphasis and begin talking
and
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Simple steps like equipment parking and regular battery care can make a big difference in how winter impacts your business.
36
Dick Detmer thinks it’s time to shed the
more about “thriving.”
Diesel Engine Do’s and Don’ts for a Trouble-Free Winter
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How to Create a Successful Rental Inspection System
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EVERYBODY’S BUSINESS // B y
Alexis Brumm
abrumm@ACBusinessMedia.com ™
How to Set a Goal for 2021 – MURDER HORNETS AND ALL While none of us know what could happen this year, we should still do some self-reflection.
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t’s something that “grow my business,” try, “I’d we’ve all mentioned like to gain 10 new customjust a few times: 2020 ers in six months.” Breaking was a wild ride. It shook big goals up into more specifup life as we know it, and ic achievements can help the living in unprecedented process seem less imposing. times has been anything Which leads me to our next but easy. Many of us had tip: make your goals meaMANY OF US HAD surable. Remember, Rome goals, plans, and aspirations for 2020; many of wasn’t built in a day. Focus GOALS, PLANS, those unfortunately fell AND ASPIRATIONS on daily, weekly, and monthto the wayside. ly steps you can be taking FOR 2020; But here we are MANY OF THOSE to achieve your goals. And again. It’s 2021, and once you take one step, take UNFORTUNATELY while none of us know another. FELL TO THE what this year will look Another tip? Put it in WAYSIDE. like or what could hapwriting! Either jot down pen (Aliens? Return of your goals on your phone or the murder hornets? write them on a sticky note Free ice cream for all? on your desk. Seeing your Four-day work weeks?), goals written down and in it’s still imperative that front of you allows you to we hold a sense of normalcy and set keep yourself accountable. some New Year’s goals. And my last piece of insight for you Goal setting is helpful for you and is this: don’t get discouraged. Things your business because it creates a sense happen. Let me gesture wildly and of direction. When we’re motivated, broadly to everything that was 2020, we’re at our best. We stay ahead of the for example. There’s no doubt that you game, we work diligently, we meet and will hit speedbumps, roadblocks, sinkexceed expectations, and, simply put, holes, trap doors, and insanely large we get things done. boulders that come out of nowhere and Now, these goals can be external chase after you as you run away with like getting a new job, landing that proa priceless artifact (or maybe I’ve been motion, buying new equipment for watching too many Indiana Jones movour rental fleet, achieving substantial ies, but that’s neither here nor there). business growth, or paying off debt, or Maybe you don’t want to set a goal they can be internal, like learning how with all the unknowns facing the world to handle change, increasing our contoday, but taking some time for reflecfidence, learning how to be a better tion is just as important. After all, leader, and practicing mindfulness. Or without critiquing our “now,” we can’t they can be both! properly plan for the future. In order to stick to your goals, I What are your goals for 2021? Let have some helpful tricks for you. First, me know at abrumm@acbusinessmebe as specific as possible. Instead of dia.com.
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PRODUCT NEWS INSIGHT ■
■
www.ForConstructionPros.com/RENTAL Published by AC Business Media 201 N. Main Street, 5th Fl Fort Atkinson, WI 53538 (800) 538-5544 www.ACBusinessMedia.com
Publication Staff Publisher
Eric Servais eservais@ACBusinessMedia.com
Editor
Alexis Brumm abrumm@ACbusinessMedia.com
Columnist
Dick Detmer
Senior Production Manager
Cindy Rusch
Art Director
Willard Kill
Audience Development Manager Angela Franks
Advertising Sales (800) 538-5544 Kris Flitcroft
kflitcroft@ACBusinessMedia.com
Sean Dunphy
sdunphy@ACBusinessMedia.com
Nikki Lawson
nlawson@ACBusinessMedia.com
Megan Perleberg
mperleberg@ACBusinessMedia.com
Tadashi Soma
tsoma@ACBusinessMedia.com
www.ForConstructionPros.com Editor
Larry Stewart lstewart@ACBusinessMedia.com
Managing Editor
Kimberly Htegeman khegeman@ACBusinessMedia.com
Change of Address & Subscriptions — PO Box 3605, Northbrook, IL 60065-3605, Phone: (877) 201-3915 Fax: (847) 291-4816 • circ.rpn@omeda.com List Rental — Bart Piccirillo, Sr. Account Manager, Data Axle, Phone: (518) 339-4511 Email: bart.piccirillo@infogroup.com Reprints — Megan Perleberg, mperleberg@ACBusinessMedia.com
AC Business Media Chief Executive Officer Chief Financial Officer Chief Digital Officer Chief Revenue Officer VP Audience Development Director of Digital Operations & IT Director of Digital Strategy Group Content Director
Barry Lovette JoAnn Breuchel Kris Heineman Amy Schwandt Ronda Hughes Nick Raether Joel Franke Jon Minnick
Published and copyrighted 2021 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the U.S. to rental centers, equipment distributors, and other businesses with rental departments. To subscribe please visit www.ForConstructionPros.com. Publisher reserves the right to reject nonqualified subscribers. One year subscriptions for nonqualified individuals: U.S. $35.00; Canada and Mexico $60.00; and $85.00 all other countries (payable in U.S. funds, drawn on U.S. bank). Single issues available (prepaid only) $10.00 each. Rental (ISSN 2375-9925, Print | ISSN 2471-7657, online | USPS 686-370) is published eight times per year: January/February, March, April, May, June/July, August/September, October/November and December by AC Business Media, 201 N. Main Street, 5th Fl., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI and additional entry offices. POSTMASTER: Please send change of address to Rental, PO Box 3605, Northbrook, IL 60065-3605. Printed in the USA. Vol. 43, Issue 1, January/February 2021
www.ForConstructionPros.com/RENTAL
1/29/2021 8:52:15 AM
EASY AS A, B, C, D. A B C D Hot Spot Pipe Locator ®
The Gen-Eye Hot-Spot® pipe locator makes locating easy. Its total field antenna array and on-screen icons lead your customers right to their target, without the long learning curve. Whether they’re an experienced pro or a first time user, they can quickly locate inspection cameras, sondes, active power lines and utility lines with pinpoint accuracy. The Hot Spot is the industry’s most rugged locator. It’s dust and dirt proof, water resistant and never too “delicate” to get the job done. Call the Drain Brains® at 800-245-6200, or visit www.drainbrain.com/hotspot
MADE IN U.S.A. © 2020 General Wire Spring
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MARKET WATCH GENERAL RENTAL RATE TRENDS IMPROVE IN MID-NOVEMBER A REPORT BY ALEX PRUDHOMME OF M SCIENCE Like nearly every industry in our economy, 2020 has dealt a meaningful blow to the rental equipment market. As construction and industrial production activity slowed, the demand for equipment rentals pulled back, putting pressure on rental rates and causing rental houses to cut their fleet size. But after a difficult year, our latest data shows some continuing signs of progress and reasons to be more optimistic for 2021. Equipment rental participants have been keenly watching rental rate trends headed into the winter. Many are concerned that rental rate pressure could accelerate into the seasonally weaker period. However, trends in our data suggest rental rates have held up better than feared QTD with rental rate data holding strong through the 15th of the month. UNITED RENTALS GENERAL RENTAL RATES (CHANGE Y/Y) Source: M Science
Rental Rates
UNITED RENTALS GENERAL RENTAL INDEX BY CATEGORY
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Source: M Science
Source: M Science
UNITED RENTALS GENERAL RENTAL RATES INDEXES BY REGION (CHANGE Y/Y)
By product category, earthmoving and material handling (i.e. telehandler) rental rates held up better YTD, only modestly declining from April’s levels (-0.5%), while aerial work platforms (AWPs) faced more notable headwinds (-1.5%). In mid-November, AWPs and earthmoving equipment saw improvements in rental rate trends on a Y/Y basis.
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At M Science, we track general rental rates for +600 equipment SKUs at +1,000 United Rentals, Sunbelt Rentals, and Herc Rentals branch locations to understand how rental rates are changing at the largest market participants (~23% of the market) on a bi-weekly basis. In mid-November 2020, general rental rates at United Rentals were trending down 2.4% Y/Y, improving from trends in October (-2.7% Y/Y) and representing a modest change in trend, following degradation in Y/Y data since April. The improvement is primarily driven by a less notable seasonal pullback in rental rates. Overall, rates QTD have held up better than anticipated.
In our regional data, general rental rate trends improved on a Y/Y basis in mid-November in five of the seven tracked geographies in the U.S., relative to October. Rental rates in our data are largely flat Y/Y in the Pacific West, Midwest, and Mountain West regions, while down greater than 2% Y/Y in the Mid-Atlantic, Northeast, South, and Southeast regions. Read more at forconstructionpros.com/21205423. www.ForConstructionPros.com/RENTAL
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GLOBAL GENERATOR MARKET ANTICIPATED TO EXPAND 5 PERCENT CAGR THROUGH 2030 Uninterrupted power supply, supported by efficient power back-up, is crucial across sectors such as industrial, residential, and commercial. Erratic supply of power, especially in underdeveloped and developing regions of the world, is the main driver for generators. Despite growing environmental concerns about the usage of diesel across the world, demand from the industrial sector is expected to be over 30 percent over the coming years. The study also observed that companies are leveraging their business expertise to provide seamless power supply for a wide array of operations undertaken by business corporations and enterprises. Overall, the global generator market is set to expand at a steady CAGR of around 5 percent through 2030, according to the report analysis. Key takeaways from the Global Generator Market Report: • In terms of revenue, North America is forecasted to account for one-third of the overall global demand by 2030. Rapid development of commercial establishments and industries aiming to increase productivity is boosting adoption. • Asia Pacific excluding Japan (APEJ) will remain the fastest-growing market in terms of value, due to unstable power supply in many areas of the region. • Among the fuel types, demand for diesel generators will remain strong, accounting for three out of every four generators sold worldwide. • Due to high industrial demand for generators, the largest size of above 1,000 kilovolt-amps will be the most sought-after across regions. • Both stationary and portable generators will witness more or less the same sales when calculated by value. • The industrial sector will continue to be the main end user of generators through 2030. • With easing restrictions that were brought on by the COVID-19 pandemic, industrial activity has picked up and the global generator market is slated to get back to its normal growth trajectory over the coming months. Read more at forconstructionpros.com/21232420
OSHA REMINDS EMPLOYERS TO REPORT INJURY AND ILLNESS RECORDS The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) is reminding employers that the agency will begin collecting calendar year 2020 Form 300A data on Jan. 2, 2021. Employers must submit the form electronically by March 2, 2021. Electronic submissions are required by establishments with 250 or more employees currently required to keep OSHA injury and illness records, and establishments with 20 to 249 employees classified in specific industries with historically high rates of occupational injuries and illnesses. Under the Occupational Safety and Health Act of 1970, employers are responsible for providing a safe and healthy workplace for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. Read more at forconstructionpros.com/21219623.
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TIPS FOR KEEPING YOUR BUSINESS AHEAD OF THE NEXT COVID-19 CRISIS McKinsey & Company, a global consulting firm, published a guide for businesses to deal with the “next” coronavirus crisis. They laid out practical, real-world advice for creating a forward-looking strategy. The article offers five steps to planning ahead: • Gain a realistic view of your starting position • Develop scenarios for multiple versions of your future • Establish your posture and broad direction of travel • Determine actions and strategic moves that are robust across scenarios • Set trigger points that drive your organization to act at the right time Although the article was written at the start of the pandemic, it remains relevant. Read more at forconstructionpros.com/21219670. JANUARY/FEBRUARY 2021
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MARKET WATCH 2021 ECONOMIC OUTLOOK FORECASTS 7.8% EXPANSION IN EQUIPMENT AND SOFTWARE INVESTMENT Equipment and software investment growth fared better than overall GDP growth in 2020 as businesses invested to adapt to the COVID-19 pandemic, and growth should remain well into positive territory in the beginning of 2021. Annual equipment and software investment growth of 7.8% is forecast for 2021. Annual U.S. GDP growth for 2021 is forecast at 4.7%, according to the 2021 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation. Scott Thacker, foundation chair and CEO of Ivory Consulting Corporation, said, “This update, while reflecting widely disparate performance in various segments of the economy, indicates the worst of the economic downturn appears to be in the rearview mirror — although that does not mean the road ahead is clear. “Equipment and software investment surged to an annualized rate of 47% in Q3 after an unprecedented 28% decline in Q2. In Q3, investment levels in 11 of the 12 equipment verticals that the Foundation monitors improved and nine experienced double- or triple-digit growth,” he noted. “Prospects of widely distributed vaccines in 2021 should provide a boost to the economy, particularly in transportation-focused industries.” Highlights from the 2021 Outlook include: • The U.S. economy expanded at an unprecedented 33.1% (revised) annualized rate in Q3 as the nation partially reopened. However, GDP is still well below its level at the end of 2019, underscoring the long road ahead to a full recovery. • The U.S. manufacturing sector recovery continued in late 2020. Shipments and new orders of core capital goods rose to record levels as firms in several industries responded to elevated demand. Though output is relatively close to pre-pandemic levels, manufacturing employment remains significantly depressed. • The fragile equilibrium of the late summer and early fall faces another serious threat this winter. Record COVID cases and deaths have forced several major cities to impose new lockdowns, and the effects are beginning to show. Small business revenues are falling while awaiting the vaccine and another targeted federal relief effort. • The Federal Reserve remains committed to keeping interest rates at or near zero for several years. The Fed also intends to continue its liquidity-boosting measures, though its officials have stated that monetary policy alone is likely insufficient to prop up the U.S. economy. Read more at forconstructionpros.com/21207138.
COMMERCIAL CONSTRUCTION SENDS DODGE MOMENTUM INDEX HIGHER IN DECEMBER The Dodge Momentum Index jumped 9.2% in December to 134.6 from the revised November reading of 123.3. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The commercial component of the Momentum Index rose 14.0%, while the institutional component rose by 0.3%. The gain in the commercial component of the Momentum Index was heartening even though the increase was mostly the result of a sizeable increase in warehouse planning. The warehouse sector has been one of the few areas of construction that has flourished during the pandemic thanks to increased demand for online shopping. For the full year of 2020, the Dodge Momentum Index lost 4.8% from 2019. The institutional component of the Momentum Index dropped 13.5%, while the commercial component increased 0.8%. Read more at forconstructionpros.com/21220511.
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AGC & SAGE FORECAST COVID-19 WILL SHRINK THE 2021 CONSTRUCTION MARKET BY CHANTAL ZIMMERMANN
The Associated General Contractors of America (AGC) and Sage Construction and Real forecast the COVID-19 pandemic to shrink construction demand, decrease new hires, and increase cancelled or delayed production in 2021. AGC and Sage conducted the 2021 Construction Outlook National Survey, which accumulated 1,329 responses, and discussed the results in a Facebook Live event with a panel of contractors. The survey concluded that most companies anticipate declining demand for work in all construction categories. AGC Chief Economist Ken Simonson forecasts the construction industry won’t return to prepandemic levels anytime soon. Of the survey participants, 59% of companies had to postpone production and 44% saw project cancellations, resulting in lost income in 2020. Paycheck Protection Loans helped many companies bounce back and rehire. However, only 35% of companies plan on increasing headcount in 2021, while 24% anticipate decreasing their workforce throughout the year. During the Facebook Live, the three contractors all admitted to a shortage of skilled labor in their hiring processes. COVID Propels Technology Adoption In order to alleviate some impacts of the pandemic, many companies implemented technology to streamline production and reduce face-to-face communication. Michael Kennedy, president of KAI Enterprises, reported that the company won many work projects via the online platform Zoom. KAI also integrated a new technology platform that allowed bankers and architects to see the jobsite, schedule, and input photos — allowing production to continue virtually and at a safe distance. All three contractors reported some resistance to integrating new technology, but Rosie Biondo, president of Mark One Electric, said the company had 90% success in the transition to its new purchasing platform. Technology adoption comes with advantages and disadvantages. On one hand, most software helps companies streamline production; but overcoming a new software’s learning curve sometimes presents efficiency challenges. According to Dustin Anderson, vice president of Sage, resistance to new technology is common in any industry. However, it is important that companies invest in their people and promote engagement, which can lower resistance by making technology a benefit for them rather than a disadvantage. AGC and Sage forecast a challenging year ahead. However, adapting to the current environment and implementing of technology can help contractors survive. Construction is an essential part of the economy, and therefore, AGC plans to work with companies and the federal government to propel the construction industry further. This includes securing a COVID relief package for companies affected by the pandemic and creating workforce campaigns that improve availability of skilled labor. Read more at forconstructionpros.com/21220308.
U.S. DEPARTMENT OF LABOR LAUNCHES NEW INITIATIVE TO COLLECT OSHA DEBTS OSHA is getting tough on enforcement, starting before Joe Biden’s inauguration and his mission to as much as double the number of OSHA inspectors. OSHA’s initiative is part of broader efforts across President Trump’s U.S. Department of Labor. • OSHA is implementing a series of three penalty payment letters to be sent seven, 30, and 60 days after an establishment fails to timely pay a penalty based on a final order. • OSHA will also contact establishments by phone 14 days after the payment comes due. • OSHA will place establishments that fail to pay penalties on a priority list for further inspection. The DOL announced in late December a final rule intended to improve its debt-collection policy, deterrence, and enforcement. The prior rule provided that “second and subsequent demands shall generally be made at 30-day intervals from the first. At the conclusion of an OSHA inspection where a final order is issued, employers must abate hazards to protect workers and pay assessed penalties. Read more at forconstructionpros.com/21232659. www.ForConstructionPros.com/RENTAL
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PRODUCTS
JLG DaVinci AE1932 All-Electric Scissor Lift JLG Industries introduced the all-electric DaVinci AE1932 scissor lift — featuring zero hydraulics to help eliminate jobsite leaks and zero emissions to help control jobsite pollution. This 19-foot scissor lift is purpose-built for applications where stringent environmental regulations must be met. Every component on the DaVinci scissor is fully optimized, including the control, lift, drive, and steering systems, to reduce the machine’s energy consumption by up to 70 percent compared to a traditional scissor lift. This reduced energy consumption allows for the use of a single lithium-ion battery. The all-electric DaVinci AE1932 scissor lift has an indoor and outdoor 606-pound capacity rating and a 4 mph travel speed, which is up to two times faster than a traditional scissor lift. Another productivity enhancing feature is progressive elevated drive speed, a JLG industry first. This function slows the unit down as its elevated, instead of defaulting to 0.5 mph like a standard scissor lift. The machine has a compact footprint, weighing 3,450 pounds and having 25 percent gradeability. DaVinci lifts also comply with the latest ANSI and CSA industry standards, featuring a load sensing system, self-closing gate, and the JLG QuikFold rail system. It comes standard with JLG Mobile Control, allowing users to drive, steer, and load the scissor lift from any iOS or Android mobile device.
Toyota Material Handling Core Electric Turret Forklift Toyota Material Handling introduced the company’s latest innovation to help customers maximize their storage capacity and efficiency. Designed for versatile and efficient dock-to-stock operation, the new Toyota Core Electric Turret Forklift combines high-capacity strength with narrow-aisle precision and agility. The Turret Forklift’s swinging fork face allows loads to be handled to the left, right, and center of the forklift, so that products can be stacked in racking without the need to turn. The Toyota Core Electric Turret Forklift has a lift capacity of up to 2,500 pounds and a maximum reach of nearly 20 feet. With the ability to maneuver in aisles as narrow as 7 feet and the capability of stacking goods at a 90° angle, operators can easily manage the heavy loads in the most condensed storage facilities.
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Fecon Compact Stumpex John Deere Gator Utility Vehicles John Deere updated its line of Gator Utility Vehicles (UVs), which include new automotive-like features that make the vehicles easier to operate and provide improved control in a variety of terrain. The updated UVs, including the HPX Work Series, Mid-Size XUVs and FullSize XUVs, offer dependability, durability and easy-to-use features. • Improved instrument cluster on the dashboard, providing more information at a glance including gear position, fuel level, differential lock, and an RPM readout and service interval indicator. • Integrated park position and improved shift pattern • Instant four-wheel drive • Full range of over 100 attachments, including sprayers, snow blades, and winches • Available in green, olive, and TrueTimber camo, new for modelyear ’21 www.forconstructionpros.com/21221080
Fecon introduced the Compact Stumpex, a slow speed, high-torque auger style stump grinder, designed specifically for compact utility loaders like the Toro Dingo. • Slow auger speed — ensuring a safer work environment with faster clean-up • High torque, which eradicates stumps of any species from 4 to 11 inches in diameter in a single plunge • Features a powerful robust drive, which generates up to 4,000 pounds of torque • Hardened auger cone ensures positive draw into the stump • Stepped blades of half-inch-thick durable AR500 material, which rotate at slow speeds • Low RPM auger bit leads to easy work site clean-up without flying debris that is inherent with conventional stumpers • No carbide tips to replace and no flying projectiles • Ideal for compact utility loaders with 10-20 GPM of hydraulic flow and 2,000 to 3,000 PSI www. forconstructionpros. com/21220715
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General Equipment Co. M-Series Electric Surface Grinder Line
Milwaukee MX FUEL CARRY-ON 3600W/1800W Power Supply The 49.7-lb. MX FUEL CARRY-ON 3600W/1800W Power Supply provides 3,600 peak watts and 1,800 running watts of pure sine wave energy to power everything from high-demand 15A tools to sensitive electronics. Its compact size, zero emissions, and quiet operation allow it to safely operate in confined, indoor spaces, while a roll cage provides durability for outdoor jobsite use. A push button start enables startup in seconds. The unit delivers enough power to run one 15-amp tool and one lower wattage device simultaneously. It can be powered by a single battery or two batteries for double the run time. The kit includes the power supply, MX FUEL REDLITHIUM XC406 Battery Packs, and a detachable charger cord.
General Equipment Company’s M-Series electric-powered, dual-head surface grinder line work with a wide range of industry standard magnetic type attachments. The M-series grinders feature two 12-inch steel discs. The 250-RPM counter-rotating discs balance forces to help reduce operator fatigue and enhance machine control. There are three electric models designed to accommodate various power needs. The SG24EM (pictured) features a 2-hp electric motor that operates from a 115 VAC, 60Hz, single-phase power source and can also be field wired for 230 VAC operation. The SGE3HP50M includes a 2.5-hp motor that operates from a 220 VAC, 50 Hz, single-phase power source. And the SG24E3HP60M is equipped with a 3-hp motor that operates from a 230 VAC, 60 Hz, singlephase power source. www. forconstructionpros. com/21207017
www.forconstructionpros.com/21206838
UNLEASH THE FULL POTENTIAL
OF RELIABILITY, DURABILITY AND PERFORMANCE Sullair offers a full arsenal of elite compressors — from the workhorse 185 to the versatile 375 family and big air 1600H — helping you satisfy more customer demand.
EXPLORE THE SULLAIR COMPRESSOR FLEET AT SULLAIR.COM
© 2020 Sullair, LLC. All rights reserved.
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PRODUCTS Trystar 9 kVA 6-Pack Weld Rack Trystar introduced the 9 kVA 6-Pack Weld Rack — a safe, convenient way to store, move to the jobsite or factory floor, and connect up to six 350 Series portable welding machines.
Terex Utilities Genie Z-45 SUB Terex Utilities introduced the new Genie Z-45 substation utility boom (SUB), a purpose-built MEWP designed for substation work and other applications where an insulated device is needed, but use of traditional bucket trucks is prohibited due to size and maneuverability. • Floor grating and optional cutouts for increased visibility, access, and water egress
Built around a Trystar 9 kVA 600 or 480V to 208/120V stepdown transformer, the 425-pound (without machines) steel weld rack meets NEMA 3R, UL 50, and UL 1640 specifications and features space for six welding machines, an all-aluminum power distribution panel, lift eyes, fork pockets, and heavy-duty casters. www.forconstructionpros. com/21219672
• Zero tail-swing and 355 degree rotation in tight quarters, selfpropelled control, and up-and-over capability of the boom to give workers greater flexibility • Lift Guard Contact Alarm — providing a secondary warning designed to reduce crushing hazards • Maximum platform height of 45 feet, 6 inches and horizontal reach of 24 feet, 9 inches • Dual work zones with capacity of 660 pounds at maximum outreach or 1,000 pounds in the maximum capacity zone www.forconstructionpros.com/21221165
Chicago Pneumatic Power Technique Expands Generator Lineup Chicago Pneumatic Power Technique (CP) announced the reengineered CPG 150 and brand-new CPG 200. Carrying over the same characteristics of the CPG line, the CPG 150 and CPG 200 offer quality, ease of serviceability, user friendliness, and economical operation. The CPG 150 has a rated prime power of 120 kilowatts, while the QAS 200 delivers a rated prime power of 160 kilowatts. The operator has stable power in less than 6 seconds in any weather condition. An internal 335-gallon fuel tank provides power for 44 hours at 75 percent load on the CPG 150 or 37 hours at 100 percent load. The CPG 200 operates for 37 hours at 75 percent load or 28 hours at 100 percent load. The Polyethylene fuel tank provides safe diesel storage while eliminating tank corrosion contaminants from being introduced to the fuel system. www.forconstructionpros.com/21207221
Milwaukee Tool One-Key Asset ID Tags Durable ONE-KEY Asset ID Tags allow users to easily manage smaller tool and equipment inventories by providing instant documentation as assets are transferred between jobsites and users. • Users scan tags to record time and location data using any smart mobile device with an integrated camera and the ONE-KEY app installed • Available in small (0.69 inch x 1 inch) and large (1.5 inch x 2 inch), and come in sets of up to 200 designed to adhere to either plastic or metal surfaces • Offer resistance to water and chemical exposure, fade protection from UV light, scratches, and can maintain adhesion through significant temperature fluctuations www.forconstructionpros.com/21220313
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RIGHT-SIZED OPTIONS FOR EVERY JOBSITE
Working at Height
Heavy-Lifting Applications
Work-Anywhere Hybrid
LEARN MORE AT GENIELIFT.COM ©2020 Terex Corporation, Terex, Genie and Taking You Higher are trademarks of Terex Corporation or its subsidiaries.
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TECHNOLOGY & SOFTWARE
// B y
Alexis Brumm
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VIRTUAL REALITY:
A ‘JUST-IN-TIME’ TECHNOLOGY FOR A COVID WORLD Record360 website
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t the top of their “About Us” page, Serious Labs has six words prominently featured in a big, bold font: Safety through training, training tthrough hrough technology. In an era consumed with adapting and finding the new normal, that statement is even more important today. COVID has changed the face of jobs in all aspects: from people working from home and being challenged to find new ways to connect like Zoom calls, to discovering new avenues of training for new and existing employees and customers. Luckily, Serious Labs has been ahead of the curve. The Canadian technology company develops virtual reality (VR) training solutions for the equipment industries. In 2016, for example, they created a MEWP VR simulator that uses motion base integration, allowing operators to feel the same physics present on actual equipment. Serious Labs’ mission of revolutionizing the way people learn (another big, bold statement proudly displayed on their website) is right in line with COVID’s ever-present consequence of change. To learn more, I spoke with Jim Colvin, president and CEO of Serious Labs, about the importance of VR embracement throughout the post-COVID world and its role in immersive learning. Rental: Jim, why don’t you start off by introducing yourself to our readers? Tell me a bit about you and your background. Jim: Sure, I’m the CEO of Serious Labs and I’m also a tech/IP lawyer, specializing in start-up and growth-stage companies. I came on board Serious Labs’ predecessor, 3D Interactive, to help transition the company to grow from a projectbased development shop to being a world leader in the field of virtual reality-based heavy equipment training simulators. I had a blue-collar upbringing on Vancouver Island, and watching my dad’s career of operating equipment without professional training made me realize the fundamental flaw in the system. Globally, there is a lack of operator training for construction equipment across the board—the very cause of most construction-related injuries and accidents. www.ForConstructionPros.com/RENTAL
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Operator training is one of the most important ongoing issues facing the global construction equipment industry. According to OSHA, about 20% of worker fatalities in private industry were in construction—with falls being one of the top reasons. But corporations, contractors, and rental stores are driven by the bottom line, and operator training can easily fall to the wayside. I’m personally driven to disrupt the training model in this industry. R: That’s a great mentality. Can you tell me a bit more about Serious Labs and its mission? J: The company started in March 2005 under the name 3D Interactive (3Di) with a simple vision of leveraging video game technology for business. This started in the form of using video game engines to rapidly generate and render 3D environments. In 2007, 3Di was asked to do a realistic visualization of heavy equipment – a jobsite with a boom lift in the same form as a house. A series of prototypes resulted in the first version of an articulated boom lift simulator, which was demonstrated at the ConExpo tradeshow in Las Vegas in the Terex booth. The simulator sparked discussion with Caterpillar, resulting in two new simulators, one of which was commissioned for both Caterpillar and the U.S. Army. The concept of elevating the technology from a game engine to a world class simulator with www.ForConstructionPros.com/RENTAL
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high utility for training was born. By using gaming software, we could rapidly achieve visually stunning, physics-based, complex simulations. It wasn’t long before we developed two dirt-moving simulators and garnered attention from the energy industry. Fifteen years since our beginning, we have won many awards and are known around the world as one of the top simulation development studios for construction equipment. We offer companies a significant competitive advantage in the form of safe and accessible training, quick and convenient setup, and objective operator assessment. This is especially advantageous during the current pandemic. We have delivered VR solutions for multiple industry leaders around the globe. Serious Labs is focused on helping to change the world’s safety culture.
We believe that everyone, from every walk of life, should have access to quality training so they can go home safely. Everyone is entitled to this basic human right. R: You recently held a webinar where you addressed the importance of virtual reality embracement throughout the post-COVID world. Can you tell us more?
J: COVID has changed the way we live, work, and act. It has changed our behavior and has actually given rise to a new phenomenon where across the globe, people are going to become more reliant on tools like AR, VR, and mixed reality to work, communicate, and shop. This isn’t science fiction. These technologies are fully developed and are as reliable as laptops and smartphones. COVID-19 brought the trigger to begin to accept these technologies with greater ease. Even after the lockdowns end, the changes they impacted will bring a new way of living. And better internet connectivity and our new behaviors will become part of the new normal in 2021, and this will help drive major technological and business innovations. We see these types of tools and the adoption of them, along with what’s happening right now in this COVID world, and we see the future of training. It comes down to better safety, lower costs, and achievable results. Training in the access industry has always been completed in-person: the theoretical portion is done in a classroom. E-learning exists, but training is still primarily done in person, in a classroom environment, with an instructor. We believe this new COVID reality will drive more virtual training in a controlled environment. Because of this, there will be a trend towards not only training, but renewals of training in virtual environments as JANUARY/FEBRUARY 2021
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TECHNOLOGY & SOFTWARE they become more readily available. In the UK and Europe, we recently announced PAL+ VR training modules in conjunction with IPAF. PAL+ training, which can be completed for the first time on a VR simulator, tests existing Powered Access LicensedRegistration (PAL) Card holders at a more advanced level than required for the PAL Card operator license. Completion of the course will also renew a PAL Card holder’s license for another five years. This training is well underway in the UK and Europe. R: In the webinar, you talked about immersive learning and how VR plays a role in that. What is immersive learning, and how can it benefit the construction and rental industries? J: Confucius understood this concept when he said: “I hear and I forget. I see and I remember. I do and I understand.” People learn and remember more by doing. That’s immersive learning. In 1946, Ohio State University professor Edgar Dale felt comprehension is based on how people encounter information. According to his findings, people on average remember 10% of what they read, 20% of what they
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hear, yet up to 90% of what they do. Creating simulated training environments is nothing new and is commonly known to produce positive training results. Since the late 1950s, the federal government has trained pilots, astronauts, and all manner of military personnel this way. In the construction and rental industries, students may be present during a classroom training, or a familiarization walk around, but is their mind elsewhere? The great thing about VR training is that you are on the machine. You are driving the machine. You are making the same choices virtually that you would be if you were in a high-risk situation in person. Our actuators on the simulator let you feel the bumps, you feel the sensation of being at height. Because of all these sensory inputs, your brain remembers the experience, and the operator has better comprehension than passively sitting in a classroom daydreaming. Moreover, trainee actions and behaviors are more effectively measured and monitored in a simulated VR environment as opposed to watching someone operate actual equipment, particularly at height. Operational metrics give instructors a sense of how trainees will operate the equipment, highlighting potential problem areas prior to handson evaluation. This results in a safer worker who is easier on the actual equipment he/she will be operating. For the construction and the rental industries, not only is simulator training engaging, cost-effective, and safe, it provides trainees with better capabilities, while
decreasing the potential for accidents and fatalities — which is better for everyone. R: Have you seen any reluctance to using VR? Is there something that can squash fears for those business owners out there that might be scared of implementing it? J: It’s been a challenge, especially in the United States, and for a number of reasons. Some businesses are slow to adopt new technologies due to a lack of awareness. Some leaders in the construction and rental industries just don’t understand what a technology like VR is, or how it can benefit their business, or how to market and distribute it to their customers. Business leaders typically prioritize lowering operational costs, increasing revenue, and productivity. However, many businesses struggle to see how digital tools can power commercial performance and achieve key business objectives. I think the companies who prioritize innovation are more open to using digital tools. The others tend to follow rather than to lead, or maybe they don’t have confidence in their own team’s capabilities to be cutting edge... or they simply can’t see the future as clearly as others can. The current pandemic isn’t helping the situation because, when problematic financial climates hit, they also hit many companies’ technology strategies. There are many benefits to VR training. It’s mobile, and it’s always on. It doesn’t need a master trainer. It’s objective, so it’s always the same. It delivers a report. It doesn’t care what you think, or what the urgency is of getting a guy on the jobsite. The cost structure is much lower because you don’t need to have big equipment and space. We have developed different pricing models depending on jurisdictions and how the customer likes to pay. Some customers, like the larger rental companies, prefer to pay a lump sum up front, so we can bundle a term subscription into a single payment. www.ForConstructionPros.com/RENTAL
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Smaller training centers prefer to “pay as you go,” so we have a subscription model that enables these small businesses to build a business around a monthly payment, similar to a lease. For the latter, it’s really opened up opportunity. That said, we have noticed an increased demand for our product in many countries around the globe compared to before COVID, which is great to see. People recognize the potential and ease of learning, and they know they can operate our product safely for training while still following social distancing protocols. R: With things being quite unknown for 2021, what do you foresee being the next step in VR and COVID-19? J: I believe we will begin to see a faster changeover from classroom training to virtual training due to the pandemic. Prior to COVID, industrial and engineering training applications in the VR market were expected to reach $3.8 billion by 2023. I believe the impact of COVID-19 on traditional classroom training and group instruction will accelerate this adoption, including in the access industry. Eventually, some form of a VR headset will be as common as a standard issued laptop and cellphone when an employee is being onboarded regardless of the industry. You’ll just download whatever course you’re supposed to be taking into the headset, and then you’ll take it. Large global corporations with dispersed workforces may not be able to, or may not want to,
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bring everyone back to their main training facilities. It’s expensive and time consuming. But if an employee can log into the headset and take that training virtually from wherever they are, it’s registered in the learning record store, so you know they took it. You can watch them actually taking it from inside the program, and you can see how they scored and where they may need to improve. Why would we ever go back to a system of classroom training? R: About the future... What’s on the horizon for Serious Labs? J: We see Serious Labs products and our type of training and assessment — the “just in time” instruction that augmented reality can bring and that value proposition—all being absolutely magnified now. Not only in the construction, access, and rental worlds, but in other industries as well. Let’s look at history. The internal combustion engine pushed us into the industrial revolution. And that changed our agrarian society because machines now were doing what humans and horses used to do. I think that we’re on a continuous path to that, but it
always has to achieve the right result and it’s always one step at a time. My philosophy is, and certainly with Serious Labs is, we’re always reaching into the future. But we always have to have a foot anchored on the ground. As the 5G network rolls out, it will support other emerging technologies. And 5G, along with these new technologies, is going to help boost post-COVID recovery by creating new business models and increasing productivity. Businesses that can start adjusting and evolving early are going to experience the benefits and create a place for themselves in the postCOVID world. As for Serious Labs, we are adopting as well. As the pointy end of the spear, we are developing new technologies, working with new partners in new industries. It’s a very exciting time.
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BUSINESS & FLEET MANAGEMENT
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By James Waite and Brian McQuinn
Navigating the Legal Maze of
RENTAL PURCHASE OPTIONS In the rental industry post-COVID, there have been more requests for rental purchase options and outright equipment purchases. However, companies need to be prepared for a different set of legal landmines and liabilities.
W
hile resurgences of COVID-19 cases have led to states issuing stricter public health orders, we continue to see a general trend towards marketplaces reopening, albeit with some significant adjustments for the COVID-19 era. In some segments of the rental industry, this has led to more requests for rental purchase options and outright equipment purchases. This, together with historically low interest rates, Section 179 and bonus depreciation (which now cover 100% of both new and used equipment, subject to certain limits), and the quickening pace of technology enhancements, make for some attractive opportunities for cycling out old inventory and replacing it with new/ upgraded equipment.
Sales and Leases (What’s the Difference?) That said, equipment rental companies that lean into sales need to be prepared for a different set of legal landmines and potential liabilities. As a starting point, sales and leases fall under different statutory regimes. The Uniform Commercial Code
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with in entirely different ways, or in some cases, eliminated). In fact, sales and leases are entirely different transactions, both functionally and legally.
Rental Purchase Options (Mix the two concepts, add another UCC section and an array of accounting and tax considerations, and shake)
alexlmx -- stock.adobe.com
(UCC), which has been adopted in all 50 states (though in somewhat differing forms), governs both types of transactions. However, sales and leases are governed by two entirely different articles of the UCC (Articles 2 and 2A, respectively), which makes sense when one considers the many different issues involved (as discussed in greater detail below, warranties, maintenance, repairs, insurance, damage waivers, check-outs, check-ins, and a wide range of other issues that differ substantially, and therefore, must be dealt
Now, add rental-purchase options (RPOs), which must incorporate both sales and leasing concepts as well as an array of recently updated accounting and tax rules. For example, where the option purchase price is based upon fair market value at the time of the purchase, RPOs are typically considered “true leases,” falling under Article 2A and allowing the buyer to deduct the lease payments as expenses, while leaving the asset on the lessor’s balance sheet. Where the option purchase price is nominal (think $1 buyouts), the purchase option is mandatory, or since last December, the stated lease term extends beyond a year and such agreements are typically deemed secured loans, which are governed by Article 9 of the UCC and requiring sales-type accounting (the lessee doesn’t deduct
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the payments; instead, the lessee capitalizes the equipment as a purchase immediately and, presumably, writes it off, while the lessor accounts for it as an immediate sale). Article 2 (Sales) and Article 9 (Secured Transactions) differ substantially and predate Article 2A (Leases) by roughly 40 years. As leasing activity increased in the U.S., it became apparent that Articles 2 and 9 were inadequate for leasing situations, which led to the drafting and adoption of some form of Article 2A throughout the United States, other than Louisiana (which uses a combination of codes to reach largely similar results).
payment terms, loan payoffs/lien releases, negotiated representations and warranties, liability limitations, lease assignments, insurance requirements,
and terms pertaining to the delivery of goods, to name a few. Where a Purchase and Sale Agreement is agreed to, typically a Bill of Sale is
Key Considerations Equipment rental companies who are pivoting toward more sales and RPO transactions need to be prepared for the requirements of UCC Articles 2 and 9, as well as the very different types of liability exposure and other legal issues (e.g., lien clearances, title transfers, defect claims, and warranty issues). One critical step is to make certain you have thorough (and legally enforceable) sales, and if necessary, financing agreements at your disposal. These may include a Purchase and Sale, Lease, RPO, Financing, and/or other agreements, depending on the transaction, but at a bare minimum should include a Bill of Sale incorporating terms that protect you as the seller of the equipment. An important note: You will want to use a very different form of Bill of Sale for purchases as opposed to sales whenever possible. A Purchase and Sale Agreement is typically used for larger and more complicated transactions that may involve, for example, extended
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BUSINESS & FLEET MANAGEMENT incorporated to evidence the closing of the sale and the actual transfer of title. By contrast, where a transaction is smaller, less complicated, involves little or no negotiation, and/or payment and transfer of title occur simultaneously, a stand-alone Bill of Sale may be adequate.
An All-Too-Common Mistake Where equipment rental companies are moving into sales, they are often tempted to simply try to reuse their rental contract (not realizing it is, for the most part, entirely inappropriate for transfers of title) rather than a proper Bill of Sale and/or Purchase and Sale Agreement. This is a misstep that can cost you dearly. Consider the differences between a lease and a sale transaction. In a lease, the lessor must concern itself with a wide range of issues that are rarely, if ever, relevant to sales, including: scheduling of rental period; checking equipment in and out, including inspection of the condition of the equipment; monitoring the location and maintenance status of the equipment; periodic inspections; training and familiarization; improper use and resulting injuries and/or property damage; servicing, maintaining, and repairing the equipment while on rent; monitoring of hours and charging for overuse; unauthorized subleasing and lending; insurance for hired equipment; and theft or vandalism.
What’s the Big Deal? Using the wrong document can result in entirely unanticipated liabilities. For example, if a lease is used for a sales transaction and that lease includes provisions for service, maintenance, and repairs, is the seller obligated for those? If so, for how long? Is the seller to be paid for them? Under a typical lease, such obligations might arguably exist for as long as the purchaser owns the equipment. The nature and structure of a sales document is more effective at
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cutting off such obligations and shielding the seller from further liabilities, including those arising out of maintenance and repair issues discovered after the sale is completed—especially with respect to used equipment. To effectively accomplish those goals, a proper sales document should contemplate the following concerns, depending upon the circumstances: ■ Clear identification of the item(s) being sold; ■ Sale, assignment, transfer, and conveyance language: Buyers will typically want this to be unlimited (i.e., “all right, title, and interest”). Conversely, sellers (particularly of used equipment that may not have been purchased with similar title warranties previously) may want to limit this to “all of seller’s right, title, and interest in and to the equipment;” ■ Title warranties. This typically means one of the following: ■ Quitclaim Bill of Sale: Conveys all of “seller’s interest” in the equipment, but disclaims warranties that seller has free and clear title, and that there are not claims against the equipment. Of course, this is most favorable to sellers; ■ Warranty Bill of Sale: Includes warranties that seller has free and clear title, and transfers such title to purchaser. Obviously, this is much more purchaserfriendly and may be required by those purchasing large, hardto-replace, and/or valuable equipment; ■ Warranty waivers: Disclaimer of product warranties, including “AS IS, WHERE IS” provisions and waivers of specific warranties called for under the UCC such as “merchantability” and “fitness for a particular purpose.” Depending on whether you are the buyer or the seller, and/or whether the equipment is new or used, you
may want this section to say very different things – the potential effect, of course, being to limit or eliminate the seller’s liability for alleged defects discovered after the sale is closed. You should also consider a waiver of claims with respect to hours shown on hour meters, which may have been rolled back without your knowledge on used or auctioned equipment); ■ Return provisions: These might, for example, eliminate the purchaser’s right to return the equipment after purchase, or at a minimum, define notice, inspection, repair, return, and/or refund rights and obligations; ■ Indemnity provisions: Critically, indemnity provisions can work in both directions and must be dealt with carefully, as they can create liabilities even where none would exist under the law, or conversely, eliminate many that do; ■ Default and remedies provisions: These provisions can, for example, limit or enhance the rights and/or remedies of either party and include provisions calling for prior notice of claimed defaults and possibly a reasonable opportunity to cure such claimed defaults; and ■ Control provisions: Provisions controlling litigation and expenses, requiring application of the laws of a given state, like determining venue for lawsuits and potentially requiring the loser to pay the winner’s attorneys’ fees and expenses. Leases, sales, and RPOs are inherently very different. This makes it imperative for buyers and sellers of equipment to use the right documents. The current environment is certainly creating some opportunities for buying and selling equipment, but to quote our clients: “make sure you have the right tools for the job.”
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TECHNOLOGY & SOFTWARE
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The Future of Data and Privacy in
Construction’s Digital Age
As the construction industry wades further into a digitized future, it is imperative that companies exercise caution in regards to data. metamorworks at stock.adobe.com
T
he value of data has proven its importance in our increasingly digital world. While the construction industry hasn’t been digitalized as quickly as others, momentum is being gained, as people realize using data can increase efficiency and provide other benefits. However, as noted by Tom Valbak Aardestrup, vice president of business development and strategic programs at Trackunit, during AEM’s most recent Product Safety & Compliance Seminar, data must be collected and used with the utmost responsibility, particularly when it comes to personal data. “There’s an enormous amount of data that is being collected and created, and the world is just connecting even more,” says Valbak Aardestrup. “There are new, cheap, open source systems and sensors available that collect data, make it available, and it yields amazing insights that we can use to become more efficient. We can work smarter. We can be better in the
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way we plan, design, conduct our business, [and] monitor and learn from our projects operations.”
Embracing the Use of Data The ways that companies utilize data is crucial for success, and Valbak Aardestrup warns those who do not embrace the use of data may find their businesses obsolete. “The world is changing by connecting digitally, but it definitely also brings in some challenging situations,” he says. According to Valbak Aardestrup, it is predicted that by 2025, we will have 175 zettabytes (ZB) of data being generated by systems supported by the Internet of Things (IoT). Of that vast amount, it is estimated that 90% of it will be less than two years old. In order to gain insights from that much data, machine learning and artificial intelligence will be required, putting greater emphasis on cybersecurity. “It also needs to, of course, be something that can be utilized in a format that is shar-
able and standardized,” says Valbak Aardestrup. “And then again, of course, it needs to be in a safe and secure environment.” As a result, companies doing business in the European Union (EU), like Denmark-based Trackunit, must comply with the EU’s General Data Protection Regulation (GDPR). It’s also important to note that the GDPR affects those in the United States as well. The regulation has extra-territorial scope, which means that websites outside of the EU (like in the U.S.) that process data of people inside the EU are obligated to comply with the GDPR. “When talking about GDPR and all these other items, there is no question that the shared access to standardized data is a precondition for us to harvest the data. That, of course, needs to be regulated when that becomes the case,” Valbak Aardestrup says. The GDPR was created for the protection of individual people living in Europe. It applies to all enterprises and governmental bodies, so OEMs selling or offering products within the EU must comply with the regulation. “It ensures that companies only gather information that they need. It’s definitely a trust issue, and the
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aim is for me, as an individual person in the European Union, to control who has access to see and use my data,” Valbak Aardestrup explains. The GDPR also provides an individual with the power to have personal data removed, and it ensures data is not exported out of the EU without the individual knowing. What’s more, the GDPR ensures companies using data have a legitimate interest to do so. As was mentioned, the U.S. does have data privacy laws, though there isn’t one federal-level privacy law like the GDPR. There are, rather, several vertically-focused federal privacy laws, as well as a new generation of consumer-oriented privacy laws. According to Varonis, a cybersecurity company, the U.S. has implemented these strategies state-by-state, with the Californian Consumer Privacy Act (CCPA) coming the closest to addressing consumer data privacy. The CCPA has been in effect since Jan. 1, and is expected to become a standard within the U.S. in the near future. However, Varonis points out that the two differ in that the GDPR grants consumers a right to correct or rectify incorrect personal data while the CCPA doesn’t. With no clear direction or insight from Washington, other states have taken a cue from California and have drafted their own privacy laws. It’s important to acknowledge, too, that few updates to the GDPR’s text have been made. However, Valbak Aardestrup notes that self-certifying through a privacy shield is no longer allowed, and the GDPR is more stringent than the CCPA. “If you’re active in the EU, I would suggest that you, first, focus on being compliant with GDPR and then, second, if need be, be compliant with CCPA,” he says. “I would presume if you are an American company
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dealing in Europe, you’re most likely also doing deals in California. “The GDPR is still stricter than what we see with the CCPA. So, at least the suggestion is it will be easier to go for GDPR and still be compliant with CCPA than the other way around.”
Data Compliance Valbak Aardestrup notes the importance of understanding what the GDPR is and how the construction industry in Europe has had to navigate this “blanketed regulation” designed to protect consumers. The regulation created a number of challenges, especially within the industry. For example, heavy equipment rentals are a primary segment for tracking, which makes it vital
to comply with GDPR as data must be kept secure to remain compliant. The digitalization of the construction industry provides increased efficiency, better documentation, automation of jobsites, improved maintenance practices, less downtime, and safer working environments. Understanding what is considered personal data, and how it can be used properly, is critical. Examples of personal data within the construction industry can include CCTV monitoring of premises and jobsites, databases of email addresses, the GPS location of equipment when an operator is logged in, weight sensors on a driver’s seat, and more. Further, any bio-metric information—like
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TECHNOLOGY & SOFTWARE fingerprints—is considered sensitive information and regarded higher with additional protections. While compliance is required, there are proper ways to utilize personal data, provided a company has a legitimate interest for using it. “It has to be fair and transparent,” Valbak Aardestrup says. For example, if someone wanted to find out how a machine is being operated, only the data coming through for that specific time can be used to solve that challenge. “You have to ensure consent is actively
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submitted,” he adds, noting this can be included contractually in an employment letter. To avoid challenges, Valbak Aardestrup recommends that datahandling should become an integrated part of a company’s culture so that data is secure and used within the confines of the GDPR. Protecting an individual’s data must begin when a company is starting to design and develop new solutions that will be introduced to the market. “It’s challenging if you have one regulation that is meant for a consumer, or meant for one specific industry, is then blanketed across a lot of other industries. That will create some complexities,” Valbak Aardestrup says. “There’s also an ever-growing challenge of security. Now, C-levels across the globe are seeing that data security
and cybersecurity is one of their top concerns.”
Next Steps As the construction industry wades further into a digitized future, it is imperative that companies exercise caution in regards to data. The data controller—often the machine or fleet owner when it comes to construction or rental—needs to confirm it has consent from system users and make any legitimate interests clear. They should be prepared to note who is watching the data, why the data is being collected, and how long the data will be kept under their control. The data controller also must be able to delete data if the subject chooses to have their information removed. Data processers, like OEMs or business owners, must ensure the legal framework is in order, so data can be
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transferred within the context of the regulation. Without self-certification, the data processor must secure standard contractual clauses between all entities. This may amount to several contracts being signed in order to guarantee a data processing agreement is in place. An alternative is creating binding corporate bylaws, but that must go through a full EU approval process in Brussels. If partnering with a data sub-processor, make sure they understand all regulations and can comply with them. For example, sub-processors should have standard contractual clauses in place if they are also exporting data from the EU to the U.S., and they should have built-in data protection as well. Valbak Aardestrup also recommends a company document
compliance processes and keep records; update and maintain processes and records; and ensure processing partners are compliant. Individual companies can begin implementing best practices regarding data regulations by adding data sharing clauses into employer contracts and employment offer letters. “If this has not been done already within your company, start putting into your offer letters clauses that actually say you should be aware that you might be tracked, we might be using your personal information for these purposes, and by signing that contract later, the data subject actually gives their consent,” he said. As the EU continues to navigate the GDPR and the U.S. develops its own regulations like the CCPA, Valbak Aardestrup urges industry stakeholders to work with lawmakers to pass
regulations that take into consideration the logic, best practices, and general work processes of the construction industry. He said leveraging associations like the AEM could help avoid mistakes and avoid blanket legislation from hindering the industry’s digital growth. “The challenge comes when something meant for consumer protection is thrown across all industries,” Valbak Aardestrup says. Avoiding this can help members of the industry embrace digitalization and its related benefits, and usher in the future of the industry with fewer hurdles. This article was adapted by Editor Alexis Brumm from its original version, “Data and Privacy in Construction’s Digital Age: What Does the Future Hold?” on the AEM website with exclusive permission from the author.
Big or small, every part makes a difference. www.tvh.com
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BUSINESS & FLEET MANAGEMENT
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By Ben Preston
PART 2: THE ULTIMATE
GUIDE TO
RENTAL
MARKETING
(HOW TO RANK ON GOOGLE FOR FREE) In the first part of this guide, we covered how to reach your changing customer and what SEO is. Now we’re ready to delve into the next steps of marketing your equipment rental company, and they all start with one thing: content.
I
n the first part of this guide to rental marketing online, we covered how to reach your changing customer, what SEO is and why your website needs it, and some painless wins you can achieve that cost you little to nothing financially. Now we’re ready to delve into the next steps of marketing your equipment rental company, and they all start with one thing: content. You may have heard the term “content marketing” before, but let’s talk about what that is and why it is so
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important in competing online and ranking in organic search on Google. Remember: ■ 71% of your buyers are starting their purchase with an online search. ■ 75% of them are clicking the top three organic spots on Google. ■ You have a better chance of getting a customer to your website if you are the 10th organic spot than if you paid for a sponsored result. The purpose of content marketing
is to transform your business into becoming a resource for your most valuable customers. By using SEO strategies in that content, you improve your ability to appear in the top results when your prospects and customers search for topics relevant to your business.
How to Decide what Content to Write Getting content marketing right turns your website into a magnet, drawing prospective customers to you as
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The best way to gather this information is to interview your customers and ask them these questions. You will be surprised what you find out. Businesses often discover
their white-hot center is not what they thought it was. For more on this, I’d suggest reading into Clayton Christensen’s “Jobs to be Done” concept.
opposed to paying to push your products to them. There are several steps to take before you start writing that will keep you focused on producing the most valuable content for your most valuable customers. 1. IDENTIFY YOUR NO. 1 MOST IMPORTANT CUSTOMER
Start with identifying who your customers are. Be intentional about this step and think about the person, not the business, that works with you. The next step is to determine who your number one most important customer is and what are the unfulfilled needs of that customer. This is closely related to finding your niche, which Kevin Gray at Skyreach Equipment says is the key to success. Your most important customers do not have to look alike. NFX, the venture capital firm in Silicon Valley specializing in marketplaces, refers to this as your white-hot center. Think of the following items when determining your white-hot center: ■ What are the basics? i.e. demographics, geography, role ■ What is really important to them? ■ What is the job to be done? ■ What will cause them to buy? ■ What hesitations or worries do you need to overcome?
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BUSINESS & FLEET MANAGEMENT
Match your content with the appropriate stage of customer mindsets.
The Keyword Magic Tool in Google Adwords is useful for keyword research and is free when you set up an account.
2. MAP CUSTOMER QUESTIONS TO STAGES OF BUYER INTENT
A common misconception is that search is strictly a “bottom of the funnel” tactic or, otherwise put, solely for customers who are in the mindset to purchase a specific product or service. However, there are three other stages of intent, or mindsets, that commonly start with a Google search. The kinds of searches for each stage of intent follow similar patterns, and the click-through rate significantly increases when the content matches with the customer’s stage of intent: ■ Discovery: These are ancillary questions about how to complete the job to be done. For example, if you sell air filters, you may consider having content like, “How do you know when you need to change your air filter?” ■ Explore: These are typically searches for lists of the best products to get the job done. ■ Evaluate: At this stage, your customer has narrowed their search down to a few options that may best fit their needs. ■ Purchase: These are the product-specific searches that most people think of when considering search engine marketing. Begin jotting down questions from the perspective of your most important customer and map the questions to the four stages of intent.
3. CONDUCT KEYWORD RESEARCH
Now, it’s time to bolster that list of questions with keyword research. Keyword research helps you determine what your customers are searching for, how often a phrase is being searched, and how difficult it will be to rank for. What keywords should you target? All keywords can be put into three buckets: ■ Highly searched: “Equipment rental” ■ Mid-tail: “Equipment rental near Dallas” ■ Long-tail: “Scissor lift rental near Dallas” Although your first inclination will be to target the most searched terms, your chances of ranking for them are extremely low. SEO has a compounding effect. This means that the more keywords you rank for, the higher your chances are of ranking for the most competitive keywords. This is why your focus should be on the long-tail. There are several ways to identify what long-tail keywords your customers are searching for. Start with the questions you mapped out earlier: ■ Check the related searches section at the bottom of the Google search page. ■ Look at the “People Also Ask” section on Google search results. ■ Search through the relevant construction forums. ■ Sign up for a Google Adwords account and use their keyword planner tool. I also highly recommend SEMRush if you are willing to pay for a tool (it starts at $99 a month). There are a ton of useful features
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Example of the start of a content web centered around your core customer.
them. ■ Low traffic: Long-tail keywords inherently have relatively low monthly traffic. Generally, the more traffic a keyword generates, the more difficult it is to rank for. that come with an SEMRush subscription to conduct keyword research. Then, create a list of long-tail keywords that relate to the questions you brainstormed in the previous section. The key in identifying keywords that you can rank for is to find long-tail keywords with relatively low competition that simultaneously have enough monthly searches to be worthwhile. Indicators of low competition includes: ■ Low Cost Per Click (CPC): Although CPC is the currency with which paid search is
purchased, it can still be a useful metric for SEO. A low CPC means that few companies are bidding on it. The higher the CPC, the more companies are targeting that keyword. ■ Low keyword difficulty score: SEO tools such as SEMRush typically have a scoring system to quantify the difficulty to rank for any given keyword. This is measured by looking at how authoritative the sites are that currently rank for that keyword and your probability to surpass
4. IDENTIFY YOUR CONTENT ASSETS
A lot of content marketing revolves around writing articles. However, not all keywords are best served by a blog post. You need to identify what content assets you own and what gaps you may have. For a construction equipment or parts business/supplier, common content assets are the following: ■ Blog: This is where you create useful resources for customers that are in the pre-discovery, discovery, and exploration phases. ■ Product pages: Your goal should
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BUSINESS & FLEET MANAGEMENT The Keyword Magic Tool in Google Adwords is useful for keyword research and is free when you set up an account.
The on-demand auto mechanic company YourMechanic does an awesome job with this – they receive 6 million organic visitors per month from their FAQ content. ■ Reviews: Positive customer reviews have a massive impact on your SEO and are one of Google’s factors for measuring trustworthiness. 5. CREATE A CONTENT WEB
be to have the best content on any particular product you offer and become the best resource for customers searching for your specific type of product. ■ Category pages: Category pages should contain rich information about that category of products. Category pages can become a resource for customers that are in the discovery and exploration mindsets, and are on their way to narrowing down what product fits their needs. Home Depot is a great example of what a contentrich category page looks like.
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■ Video/YouTube: Video does phenomenally well for customers in the discovery phase. In fact, Google can recognize the intent of a search and will serve up videos as the first results for a search with discovery intent. This is a major area of opportunity for construction marketers. ■ FAQ: An FAQ section can directly answer the questions that you wrote down from earlier in this guide. Ask your sales people what questions they get asked the most and create an FAQ section with a separate post per question.
Now, it’s time to bring all the pieces together into what I call your content web. A content web is a tool I like to use to link all of these seemingly disjointed steps together into a web centered around the core customer. This tool allows you to track what content you have created, the intended purpose of the content, and what content you should consider creating next. The anatomy of a content web is as follows: ■ Centered around your core customer. ■ Second layer: The topics you brainstormed earlier that your core customer cares most about. At this layer, you want to have
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one piece of “pillar content” to rule them all for that particular topic. This pillar content acts as the anchor and all other ancillary topics refer back to that pillar content. We will get more into this when we get to internal linking. ■ Third layer: The keywords you researched that the customer would search for related to the topics they care most about. This layer should be supported with your keyword research so you know the exact phrase being searched for and the search volume that the keyword gets. ■ Fourth layer: I added in the content asset that is addressing each keyword into the third layer, although you could have more
PLUG & PLAY
than one content asset for any particular keyword, which could warrant a fourth layer. The point of a content web is to avoid a content creation workflow that is based on gut feeling. There are multiple ways to create a content web like this. I use a free tool called MindNode (only works on Mac), which works for me, but there are certainly other tools and methods that could work for you. Make this part your own. In the final section to come, we’ll discuss the all-encompassing message behind this series: how to create content that ranks on Google. Keep an eye on Rental to read the final installment, and don’t miss part one at forconstructionpros. com/21174858.
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FLEET MAINTENANCE // By Julian Wood, Perkins product manager for Aftermarket
DIESEL ENGINE
DO’S AND DON’TS FOR A TROUBLE-FREE WINTER
T
he best solution to cold weather diesel problems is being prepared for cold weather before it happens. Diesel engines are harder to start in the cold because they depend on high temperatures created by compression to ignite the injected fuel. In fact, it is five times harder to start a diesel engine at 0°F (-17°C) than it is to start one at 80°F (26°C). The top reasons for this are gelled fuel, cold cylinder walls, and electrical failure. There are, of course, many others, but addressing these is a good place to start when getting ready for winter.
room for water to condense overnight. Don’t neglect the fuel filter, as it’s the most common place for fuel to gel. Do change the fuel filter before winter weather sets in. That makes it less likely to freeze. Do keep a spare fuel filter and/or water separator on hand. It’s often easier to replace a frozen one than it is to thaw it. Do park equipment in a sheltered location whenever possible. A heated shelter is best, but simply parking where the wind can’t blow snow and ice into the engine can make a big difference.
FUEL
Do use winter blended fuel, which is less likely to gel. Do store full portable fuel cans in a temperature-controlled area to avoid condensation. Do drain the water from the fuel filter daily, preferably when the machine is shut down for the day, so the water does not sit in the filter overnight. Don’t forget to drain the water separator on fuel storage tanks every day. Do fill fuel tanks at the end of the working day, as a full tank doesn’t leave
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ENGINE OIL
Do switch to a lighter weight engine oil during cold weather. A cold engine needs adequate lubrication especially when it’s started. Don’t use engine oil lighter than the engine manufacturer recommends as it may not provide adequate lubrication when the engine is hot. COOLANT
Do check your coolant regularly with a hydrometer. The glycol in your coolant is there for a reason; it doesn’t boil off
and it lowers the freezing temperature of the mixture. Don’t top off the coolant with plain water. Make sure to use a proper water/ glycol mix every time. You do not want water to freeze in your engine or radiator. Do pay attention to temperature gauges and avoid overcooling, which can be caused by long periods of idling or excessive airflow. DIESEL EXHAUST FLUID
Don’t store diesel exhaust fluid (DEF) at below-freezing temperatures. DEF is about 50% water and will freeze. Don’t worry about DEF in the tank on the machine. The system automatically circulates engine coolant to thaw it, so it’s ready for use when the machine warms up.
Cold Engines Do inspect and, if necessary, change glow plugs and air inlet heaters before cold weather sets in. Do consider using a block heater if one is installed or installing an aftermarket unit. A warm engine is much easier to start and avoids many of the issues related to cold weather operation.
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Don’t use starting fluid unless the engine is equipped with a factory installed kit that precisely controls the amount used. Simply spraying starting fluid into the air cleaner carries a high risk of causing a fire or even an explosion.
Electrical Systems Don’t ignore your battery. After a hot summer that encourages corrosion and fluid evaporation, the added strain of cold weather starts can kill a battery. A battery can lose 35% of its power at 32° F (0° C) and as much as 60% at 0° F (-18° C). Do consider using a battery warmer; either a ‘hot plate’ type that slides under the battery or an “electric
blanket” type that wraps around the battery will help it retain its charge.
Other Considerations
oil, hydraulic oil, and DEF time to come up to operating temperature so they can function efficiently.
PARASITIC LOADS
Conclusion
Parasitic loads can include: engine and transmission oil viscosity, fan drive, clutch engagement, hydraulic pump engagement, and anything else that’s driven by the engine or consumes engine power. Any parasitic load during cranking can be a major contributor to the engines inability to start.
Proactive preventive action may seem like an extra expense or time spent on something that isn’t a problem now, but it makes economic sense in the long run. The consequences of ignoring winter diesel issues can range from losing a day’s work to repairing expensive engine damage. Simple steps like keeping your fuel tanks and cans filled, plugging in heaters, strategic equipment parking, and regular battery care can all make a big difference in how winter impacts your business.
WARM UP TIME
Always let a cold engine warm up for at least 5 minutes before putting it to work. That gives the coolant, engine
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TECHNOLOGY & SOFTWARE
//
By Jesse Buckingham
How to Create a Successful
RENTAL INSPECTION SYSTEM Rental company owners are transforming their businesses with inspection management software and these three tips for a winning strategy.
T
he equipment rental business, including inspections, is evolving. Times have changed, and those that are adapting are winning. The strongest business owners are investing in modern inspection software to execute a winning strategy, and the most successful follow these three core pillars. Let’s dive in further.
1. MAINTAIN QUALITY ASSETS
The most successful business owners maintain high quality and good looking assets at reasonable prices. The way your fleet looks matters more to customers than it should. They notice scratched paint jobs, dirty equipment, and dings. These issues might seem cosmetic, but your customers assume that if the asset appears poorly maintained, then the quality is poor. Over time, your brand will become associated with low quality assets, which will drive away customers. In saying that, you need to maintain quality, and the perception of quality, at reasonable prices.
2. BUILD LOYAL CUSTOMER RELATIONSHIPS
Another step that’s important is you must build loyal relationships with your customers. It’s always easier to expand an existing customer relationship than it is to develop a new one. You’ve already won your customer’s trust, and you already know how to work with them. As a result, the highest return on your team’s time will be from expanding your share of wallet with your best customers. Expanding your existing customer base relies on building those relationships of trust and accountability, so both you and your customer are confident investing further in the relationship. 3. HIRE GREAT TALENT
Hiring, retaining, and cultivating great talent is critical to equipment rental, as it’s becoming increasingly more important given the shortage of skilled labor in the construction and equipment industries. To hire and retain quality employees, you need to build a strong culture that attracts the best talent. That means you need to build processes and provide tools that make it easier for your employees to be productive and successful, so they can flourish in their roles.
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Traditional Inspection Processes Traditional inspection processes threaten rental
business owners’ ability to execute a winning rental strategy. In the old world, inspections were done with cumbersome processes like pen and paper, carbon copy forms, etc. These result in poor documentation, and charging customers for damage without good documentation erodes trust. Forcing your employees to use clunky processes is frustrating for your hard-won talent, too. The most successful rental business owners are transforming their equipment inspection process by adding modern inspection management software. First, they’re able to maintain quality assets and a brand they’re proud of. Renters who identify new damage through careful inspections can more easily charge customers, which means there’s simply less to argue about. Secondly, sending rental inspections to your customers using an inspection management software platform builds confidence that you won’t charge them for damage they didn’t cause. They’ll feel like they’re treated fairly and trust is built. Finally, savvy rental business owners are able to provide their employees with simple and easy-touse inspection tools that make their jobs easier. Clunky or hard-to-manage processes will frustrate your most valuable employees (not to mention your customers). Read the full version of this article at forconstructionpros.com/21203523.
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1/27/21 4:20 PM
INDUSTRY UPDATE
RENTAL’S RECOGNITION CORNER
A
lmost two years ago, Meghan Boland left the retail world, working in Manhattan for Michael Kors and GAP as an international allocator for men’s clothing in Japan, to try working for her family’s business, Boland Equipment Rentals (B.E.R) in New Jersey. Making such a switch is no easy feat, but Meghan has made quite the impression on the company’s president, who just so happens to be her dad. “She stands out because in the short time she has been at B.E.R., everything has been thrown at her, including audits, internal turmoil, and negotiating the recent pandemic,” says Brian Boland. “While times have been tumultuous and challenges have come toward her at high speed, she has managed to grow sales by over 33 percent and has recently expanded the company into aerial lifts by taking on the Snorkel line.” With some fatherly love, Brian adds, “While I may be biased, there is no denying she has achieved some impressive achievements in a short period of time.” Keep it up, Meghan!
®
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INDUSTRY UPDATE DOLAN LEAVES CUSTOM EQUIPMENT TO JOIN CASE, SHAVER JOINS HY-BRID LIFTS In early January, Custom Equipment announced that Terry Dolan (top right), who was company president, was transitioning to a board of director’s role. Dolan was hired as president and CEO in December 2018 to leverage his nearly 30 years of experience in the rental, construction, and equipment industries. That same day, it was announced that Dolan was named CASE Construction Equipment’s new head of sales and marketing for CASE in North America. Dolan previously worked in the CASE organization in various strategic, sales, marketing, and training roles. “I’m looking forward to rejoining the CASE organization as I’ve always had a great passion for the construction industry — my home office is still filled with CASE memorabilia — and I look forward to leading this iconic American brand into its next generation,” said Dolan. “The CASE team’s focus on practical innovation and intuitive solutions, its gains in sustainability and alternative fuels, and the brand’s purpose of building communities all establish the foundation that will drive our accelerated growth.” A few days after CASE’s announcement, Hy-Brid Lifts (Custom Equipment) announced the appointment of Marshall Shaver (bottom right) as the new vice president of sales and marketing. Shaver brings more than 10 years of industry experience to his new role, largely derived from his time at Wacker Neuson as the business development manager and director of key accounts. “I’m looking forward to working alongside the rapidly growing team at Hy-Brid Lifts,” said Shaver. “I have been watching the strong growth of the team and products over the last few years and am excited to continue providing excellent support to existing customers, while simultaneously growing our market presence with new dealers.”
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1/27/21 4:18 PM
HERC HOLDINGS PURCHASES ASSETS OF CHAMPION RENTALS
HOLT CAT ACQUIRES SULLAIR OF HOUSTON
Herc Holdings, a North American equipment rental supplier operating as Herc Rentals, acquired all the assets of Houston-based Champion Rentals. Champion is a full-service general equipment rental company, comprising of approximately 100 employees and four locations serving customers in the Houston area. The addition of Champion expands Herc Rentals’ Houston-area presence to 12 physical locations, which collectively provides general and specialty equipment rental solutions and related services. The transaction represents Herc Rentals’ first multi-location acquisition since it became an independent publicly traded company in 2016. “I am pleased to welcome Champion’s team members to Herc Rentals,” said Larry Silber, president and chief executive officer. “Our combined team and resources position Herc Rentals to be a preeminent equipment rental partner for the Houston market’s diverse mix of construction, industrial, and government customers. Read more at forconstructionpros.com/21219648.
HOLT CAT, the Caterpillar equipment and engine dealer for south, central, north, and northeast Texas, has acquired Sullair of Houston, a fixed and portable compressed air dealer with operations in Houston, Odessa, and San Antonio. Family owned and operated since 1986, Sullair of Houston is headquartered in Houston with satellite locations in Odessa and San Antonio. As the distributor for Sullair commercial air compressors, Sullair of Houston’s dealer territory covers nearly half the counties in Texas, including Houston, Austin, San Antonio, the Rio Grande Valley, and the majority of west Texas, aligning with many of the counties that HOLT CAT presently services. “We are excited to welcome the Sullair of Houston team to HOLT,” stated HOLT CAT CEO Peter J. Holt. “We share the same core values and each bring a relentless focus on providing legendary service to our customers. Acquiring Sullair of Houston allows us to expand our list of products and services within a growing market.” Read more at forconstructionpros.com/21220725.
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INDUSTRY UPDATE SUNBELT RENTALS RAISES AWARENESS ON COVID-19 BEST PRACTICES Sunbelt Rentals is participating in the American Rental Association’s (ARA) Clean. Safe. Essential. program, which is aimed at raising awareness of the rental industry’s commitment to safety best practices related to COVID-19. “Sunbelt Rentals is committed to the safety of our customers and employees, and from the outset of the pandemic, proactively introduced new safety and operational protocols,” says Katy Lovering, vice president of operational excellence at Sunbelt. “There is so much uncertainty right now, and we want to help provide peace of mind in any way we can. Safeguarding our people and our customers is our number one priority.” By joining this program, Sunbelt Rentals branch locations receive a completion certificate as Clean. Safe. Essential. compliant and will have established uniform guidelines along with other rental companies in the industry. ARA previously reviewed Sunbelt’s COVID-19 related safety, operational protocols, and trainings, and deemed them as compliant with the ARA’s Clean. Safe. Essential. program requirements. Sunbelt Rentals will continue to work with the ARA to advance the program through industry awareness and sharing of best practices. To date, Sunbelt Rentals has already established curbside pickup of rental equipment, which will be a permanent offering, and can be requested via an online reservation or by phone. In addition, the company is following stringent sanitizing, cleaning, and handling guidelines, per the CDC, and observing social distancing and the wearing of face coverings at its branches. Read more at forconstructionpros.com/21206402.
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ADVERTISER’S INDEX ADVERTISER
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Abbott Rubber Co. ................................................ 40 Ammann America ................................................. 31 Bobcat ...................................................................... 2 CK Power ............................................................... 39 Cojali USA Inc. ....................................................... 33 E-Z Trench .............................................................. 35 EDCO Equipment Development Co. .................... 43 Essex Silverline ...................................................... 41 General Pipe Cleaners ............................................. 5 Ground Hog ........................................................... 26 JLG Industries Inc ............................................. 22-23 John Deere Construction Equipment................... 44 Orion Software ..................................................... 25 Oztec Business Machines Inc. ............................... 19 Oztec Industries Inc............................................... 29 ROEDA ................................................................... 38 Stellar Industries ................................................... 37 Sullair ..................................................................... 11 Takeuchi Manufacturing Co. ................................ 21 Terex USA .............................................................. 13 TVH Parts Co. ......................................................... 27 Uline ....................................................................... 38 Windy Ridge Corp. ................................................ 40 This index is provided as a service. The publisher does not assume liability for errors or omissions.
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EYE ON RENTAL // B y
Dick Detmer
THRIVING (Not Just Surviving)
IN 2021 AND 2022 As we close out a rough 2020, I have faith that the well-prepared independently owned and operated rental companies will thrive — and not just survive.
I
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Analyze your current and past financials as well as other valuable data that can be mined from your system. ■ It’s important to remember that one shouldn’t be overly focused on taxation and depreciation. Of course, these are very important, but generally one should not spend money on assets solely for
■ Be careful not to blindly follow what you hear or see other rental companies doing. In my 50 years of being in the equipment rental industry and visiting thousands of rental businesses, I have found that every company is different. Each rental business has its own set of unique situations that strongly influences what course(s) of action make the most sense. In other words, avoid the “one size fits all” mentality. ■ Have your staff use the next couple of months to be extra diligent with preparing your rental fleet for heavy duty action. Many postponed projects will start again, and there will be even more need for rental equipment. Also, in my opinion, increased infrastructure spending will have a sizeable trickle-down effect. As we start the new year, I remain convinced that the equipment rental industry is one of the most resilient businesses on earth and that the men and women who work in this industry are among the most dedicated and hard-working. So, I have full faith that the well-prepared independently owned and operated rental companies will thrive (and not just survive).
SecondSide @ stock.adobe.com
think it’s time to shed the “surviving” emphasis and begin talking more about “thriving.” Yes, so much changed in 2020, but even though the emotional, social, and economic effects of the pandemic will linger for years, I believe there will be a sharp economic recovery in 2022 and a very noticeable economic improvement in the third quarter of 2021. There are plenty of unknowns concerning new tax rates, deductions, and other rules and regulations; new administration government programs; the speed at which COVID (and its effect on our lives and our businesses) will finally be behind us; and more. It can be difficult to pinpoint exact strategies to approach each of these unknowns, but there are a number of things that we can focus on. Here are a few of my thoughts centered on the topic of equipment: ■ Purchase core rental equipment needs early. With the likelihood that there will be vastly increased demand for rental equipment both nationally and internationally, it would be prudent to get your orders in sooner rather than later. Some of my clients have already noticed long delays in getting the equipment they need, which is the result of pandemic-related parts and components shortages. ■ Focus additional time and resources on asset management.
the tax benefit. Instead, determine if the purchase makes sense on its own merits without it. ■ Remind employees that renting to unqualified customers can ruin equipment, cause unsatisfied customers, and be very dangerous. Yes, great rental companies are focused on saying “yes” to customers; however, let your staff know that it’s okay to decline the occasional rental when renting would cause a problem.
Dick Detmer is a nationally recognized consultant, lecturer and writer with 40+ years of experience in the equipment rental industry. In 2018, he celebrated the 30th anniversary of his business, Detmer Consulting Inc., and his column in Rental. Dick can be contacted at dick@detmerconsulting.com, (309) 781-3451 or by visiting his website www.detmerconsulting.com.
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Rent. Rinse. Repeat.
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