Rental March 2016 by ForConstructionPros.com

NEW PRODUCTS Fresh from The Rental Show.

page 26

PRODUCT NEWS INSIGHT ■

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WHAT YOUR RENTAL STAFF NEEDS TO UNDERSTAND ABOUT COMPACTION page 60

OPTIMISM PREVAILS

DESPITE ECONOMISTS’ TEMPERED ENTHUSIASM 2016 STATE OF THE INDUSTRY Industry experts weigh in on construction, energy and roadbuilding markets, plus a look at the latest forecast for rental for the coming year and beyond — PAGE 40 March 2016

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VOLUME 38 ISSUE 2

MARCH 2016

2016 STATE OF THE INDUSTRY Rental and Construction

IN EVERY ISSUE 6 E verybody’s Business Impressions gleaned from a several weeks on the road.

Find out what experts see for key markets this year.

8 Manager’s Digest Market information to give you insight you need to run your business.

18 Market Watch Rental companies around the country weigh in various topics.

26 New Products

60 CONSTRUCTION SUPPORT EQUIPMENT What Your Rental Staff Needs to Understand About Compaction Understanding soil types and how they’re compacted is vital to knowing how to recommend the right equipment.

68 COMPACTION PRODUCTS Roundup A selection of rammers, plates and trench compactors.

72 PUMPS Roundup Here’s what suppliers have to offer in the way of pumps for your product inventory.

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76 PROFESSIONAL PERSPECTIVE CRA Executive Director Talks about the Growth of the Industry’s Biggest Regional Tradeshow Dale Blackwell explains factors behind the expansion of the California Rental Association’s annual event.

The latest product introductions from recent industry events.

82 Industry Update A roundup of recent news and happenings in the rental market.

90 Eye on Rental Dick Detmer explains how to make sure your staff is properly educated on equipment.

SUPPLY SIDE Terex Execs Talk About Strategy, the Merger and More New CEO John Garrison and Terex AWP President Matt Fearon philsophize about the past, the present and the future of one this industry’s most prominent supplies.

MARCH 2016

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CONTENTS

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New Products and More ForConstructionPros.com/RENTAL features the industry’s most comprehensive guide to construction-related products and equipment. Visit ForConstructionPros.com/RENTAL and click on the Buyers Guide for the most up-to-date list of what today’s leading manufacturers have to offer. www.ForConstructionPros.com/RENTAL

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Designed With You in Mind

Rental and Construction Market Updates

It’s easier than ever to find the industry news and information you need to run your equipment rental business. Just point your browser to ForConstructionPros.com/RENTAL, and scroll for the latest reports. Whether you’re using your desktop, laptop, tablet or smartphone, you get the same simpleto-navigate experience, only faster than ever before. Visit ForConstructionPros.com/RENTAL today.

ForConstructionPros.com/RENTAL offers all the latest information pertaining to the topics that matter most to your business. Look here daily for the news and information you need most. And don’t miss our weekly eNewsletter, RentalWATCH, for a digest of the week’s reports.

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INDUSTRY NEWS

MARCH 2016

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To subscribe, go to ForConstructionPros.com/Register.

USE THE EIGHT-DIGIT CODE For more information on any of the products in this issue, simply type the unique eight-digit code into the search bar at the top of www.ForConstructionPros.com/RENTAL

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EVERYBODY’S BUSINESS ™

B y J e n ny L e s c o h i e r, e d i t o r

Impressions from the Road Rental professionals are moving into a new era based on smart business acumen and a desire to provide solutions

he start of the year is packed with events and shows, and with those come a lot of fresh faces and an abundance of new information. While reflecting on what we’ve gleaned from these encounters, I offer you some general impressions: 1. Rental professionals are increasingly tech savvy. While attending a couple of seminars on social media and online marketing at the California Rental Association tradeshow, I was struck by how many of those in attendance were thinking about SEO optimization, considering their Twitter and Facebook accounts and talking about boosting their website traffic through Google Adwords. It’s clear the industry understands and appreciates the need for an online strategy and presence to succeed in today’s marketplace. 2. Total cost of ownership is the name of the game. Few if any are flying by the seat of their pants in this industry. Today’s rental professionals look at each piece of equipment in their inventory as its own business and aim to make that business as profitable as possible. Equipment suppliers realize this and are offering models designed to provide a faster and greater return on investment through lower acquisition cost, reduced maintenance and Tier 4 concerns, and improved performance. 3. People are optimistic. Read the news and it’s easy to find daily reports on the state of the construction market (and, it follows, equipment rental). The amount of information can get overwhelming. But talk to the people

MARCH 2016

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PRODUCT NEWS INSIGHT ■

■

www.ForConstructionPros.com/RENTAL Published by AC Business Media Inc. 201 N. Main Street Fort Atkinson, WI 53538 (800) 538-5544 www.ACBusinessMedia.com

Publication Staff Publisher Eric Servais eservais@ACBusinessMedia.com Editor Jenny Lescohier jlescohier@ACBusinessMedia.com Columnist

Dick Detmer

Ad Production Manager

Cindy Rusch

Art Director

Kayla Brown

Audience Development Director Wendy Chady Audience Development Mgr

Angela Kelty

Advertising Sales (800) 538-5544 Sean Dunphy Jill Draeger Vaughn Rockhold Erica Finger Amy Schwandt Denise Singsime Tom Lutzke

sdunphy@ACBusinessMedia.com jdraeger@ACBusinessMedia.com vrockhold@ACBusinessMedia.com efinger@ACBusinessMedia.com aschwandt@ACBusinessMedia.com dsingsime@ACBusinessMedia.com tlutzke@ACBusinessMedia.com

ForConstructionPros.com Digital Operations Manager Nick Raether nraether@ACBusinessMedia.com

“I spoke to many rental professionals over the past few months and the majority have very

solid expectations for this year.” actually working in the field and you’ll get the real story. I spoke to many rental professionals over the past few months and the majority have very solid expectations for this year. They’re not based on economic reports, but on an intimate understanding of the needs driving their local markets. The story is generally one of realistic optimism. The industry is stepping into a new era, one based on smart business acumen and a renewed focus on providing solutions to tomorrow’s customers. Now is certainly an exciting time to be a part of this industry, and with that, here’s to a stimulating and successful 2016! ■

Digital Sales Manager Monique Terrazas mterrazas@ACBusinessMedia.com Editor Larry Stewart lstewart@ACBusinessMedia.com Managing Editor Kimberly Hegeman khegeman@ACBusinessMedia.com Change of Address & Subscriptions — PO Box 3605, Northbrook, IL 60065-3605, Phone: (877) 201-3915 Fax: 800-543-5055 • circ.rpnmag@omeda.com List Rental — Elizabeth Jackson, Account Executive, Merit Direct LLC, Phone: (847) 492-1350 ext. 18 Fax: (847) 492-0085 • ejackson@meritdirect.com Reprints — Erica Finger, efinger@ACBusinessMedia.com

AC Business Media Inc. Chairman President and CEO Executive Vice President CFO VP Content VP Marketing

Anil Narang Carl Wistreich Kris Flitcroft JoAnn Breuchel Greg Udelhofen Debbie George

Published and copyrighted 2016 by AC Business Media Inc. 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 1067-0904, USPS 686-370) is published seven times per year: January/February, March, April/May, June/July, August/September, October/November and December by AC Business Media, 201 N. Main Street, 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. Canada Post PM40612608. Return Undeliverable Canadian Addresses to: RENTAL, PO Box 25542, London, ON N6C 6B2. Vol. 38, Issue 2, March 2016

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introducing the all-new barreto 20RTK/23rtk STAND ON track trencher

The all new RTK Stand-on Track Trencher from Barrreto features a fixed platform and unique fine tuning control adjustment that uses rod linkage instead of cables. The new Adjustable Trenching Control (ATC) can be placed into position to modify the trenching speed of the tracks individually while on the go. Individual track controls can be adjusted separately during operation allowing the operator to keep their trench straight when working on uneven terrain. Simple, one-handed controls are easy for any operator, and the boom pivot design keeps high maintenance components out of the dirt, reducing wear. Because of their large footprint, track trenchers are less invasive on the landscape. Cross-trenching is made simple and by combining tracks with additional weight, the ability to keep the trench straight is greatly improved.

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MANAGER’S DIGEST

U.S. CONSTRUCTION EQUIPMENT

EXPORTS DOWN 19 PERCENT IN 2015

Exports of U.S.-made construction equipment ended 2015 with a 19-percent decline compared to the previous year for a total $13.9 billion shipped worldwide. All world regions experienced declines, led by Africa and South America, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members. Year-end 2015 U.S. construction equipment exports by major world regions compared to year-end 2014: • Canada dropped 18 percent, for a total $5.5 billion • Asia decreased 10 percent, for a total $1.8 billion • Europe dropped 12 percent, for a total $1.7 billion • South America declined 33 percent, for a total $1.7 billion • Central America fell 23 percent, for a total $1.5 billion • Australia/Oceania declined 1 percent for a total $882 million • Africa decreased 37 percent for a total $777 million

AEM MARKET ANALYSIS OVERVIEW AEM’s Benjamin Duyck, director of market intelligence, provides some insights: As 2015 came to an end we can take stock of the yearly export trends. In the fourth quarter of 2015, construction machinery exports continued to experience year-over-year declines for the 12th consecutive month. The year-end also marked the 3rd consecutive yearly decline. These declines do need to be placed in the proper context as exports boomed after the Great Recession and strongly supported the U.S. construction equipment industry. Additionally, there are regional differences affecting exports. The deteriorating export position does not come as a surprise as the U.S. faces strong external headwinds. Global economic markets such as China and Brazil are experiencing deep-rooted structural problems and a strong U.S. dollar is making U.S. exports more expensive for international buyers. The lower commodity prices (metals and energy) are causing shifts in some market segments and equipment demand, domestically and internationally. For more, visit ForConstructionPros.com/12178443

MARCH 2016

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DODGE MOMENTUM INDEX RISES for Third Consecutive Month Thanks Again to Commercial Construction

The Dodge Momentum Index climbed 0.5% in February to 126.1 (2000=100) from its revised January reading of 125.5. February’s increase was the third consecutive month-to-month gain for the Index, as a 1% pickup by commercial planning reports overcame a slight 0.1% decline by institutional planning. While commercial planning activity is still below the levels present throughout much of 2015, it has made a moderate recovery following the decline witnessed in late 2015. Institutional planning, despite easing back in February, continues to be above last year’s levels due to the generally upward trend registered over the course of 2015. In February, seven projects entered planning with a value that exceeded $100 million. For the commercial building sector, the leading projects were a $190 million office renovation in New York, a $140 million hotel and casino in Gulfport, MS, and a $129 million mixed-use project in Long Island City, NY. For the institutional building sector, the leading projects were a $500 million medical complex in Indianapolis and a $180 million hospital in Valhalla, NY. The Momentum Index 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.

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MANAGER’S DIGEST

RECORD HIGH MULTIFAMILY CONSTRUCTION SPENDING BUT LOAN LENDERS CAUTIOUS

→

The new construction spending estimates released by the Census Bureau include significant upward revisions to multifamily construction. As of January 2016, total multifamily spending was at a seasonally adjusted annual rate of $59.8 billion, exceeding the peak readings registered during the housing boom years. This also represents a 30% rise over a year ago. Total private residential construction spending stood at a seasonally adjusted annual rate of $433.2 billion in January, virtually unchanged from December’s upwardly revised rate of $433.1 billion. It was up 7.7% from one year earlier and the highest since November 2007. Private single-family construction spending was at a seasonally adjusted annual rate of $230 billion, down by 0.2% from the revised December estimate but 6.6% higher than a year ago. Private construction spending on home improvements decreased slightly to a seasonally adjusted annual rate of $143 billion. Year-over-year, this adds up to a modest 2% increase. Despite the hot market for multifamily construction, lenders are becoming more cautious when it comes to multifamily construction loans. Factors leading to this commercial bank caution include worries about the number of multifamily buildings currently under construction, new bank regulations and new warnings from bank regulators.

SPENDING IN ALL MAJOR US CONSTRUCTION SEGMENTS POSTED HEFTY JANUARY GAINS Construction spending soared in January from a month earlier and all major segments posted hefty year-over-year gains, pushing the total to the highest level since October 2008, according to an analysis by the Associated General Contractors of America. Association officials said the new spending figures indicate that demand for construction remains robust amid broader economic concerns. “There were solid gains for both the month and year in apartment, nonresidential and highway construction,” said Ken Simonson, the association’s chief economist. “Although favorable weather may have boosted these results, demand for many types of projects remains strong despite worries that the overall economy has slowed.” Construction spending in January totaled $1.141 trillion at a seasonally adjusted annual rate, 1.5% higher than the upwardly revised December total and 10.4% higher than in January 2015, Simonson said. Private residential spending was flat for the month but increased 7.7% compared to January 2015. Spending on multifamily residential construction jumped 2.6% for the month and 30% yearover-year, while single-family spending dipped 0.2% from December but rose 6.6% compared to January 2015.

MARCH 2016

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Private nonresidential construction spending increased 1% for the month and 11.5% from a year earlier. Simonson observed that nearly every segment increased from 12 months before. The largest private nonresidential segment in January was manufacturing construction, which rose 4.2% for the month and 11% year-over-year. The next-largest segment, power (including oil and gas pipelines), gained 2.7% and 10.3%, respectively. Public construction spending increased 4.5% from a month before and 13% from 12 months earlier. The biggest public segment — highway and street construction — leaped 15% for the month and 34% year-over-year, as record warmth in January 2016 allowed projects to proceed that would normally have been deferred until spring in some regions, Simonson noted. Association officials said new construction spending figures underscore the need to address growing construction workforce shortages. They called on elected and appointed officials to act on the measures outlined in the association’s workforce development plan, including making it easier for high schools to set up construction-specific education programs.

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MANAGER’S DIGEST

NONRESIDENTIAL CONSTRUCTION SPENDING OVER $700B FIRST TIME IN SEVEN YEARS Nonresidential construction spending crested the $700 billion mark on a seasonally adjusted annualized basis in January for the first time since March 2009, according to analysis of U.S. Census Bureau data released today by Associated Builders and Contractors (ABC). Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. The Census Bureau upwardly revised December’s estimate from $681.2 billion to $684.5 billion, though they downgraded November’s figure from $683.7 to $680.5 million. Private nonresidential construction spending increased by 1% for the month, while its public counterpart expanded by 4.6%. “After several months of relatively weak nonresidential construction spending data, today’s data release was most welcome,” said ABC Chief Economist Anirban Basu. “While January is a difficult month to interpret, and one that should not be overly emphasized, the fact of the matter is that the year-over-year performance in spending is consistent with a host of industry indicators. For many months, the average contractor has been reporting decent backlog. Measures of industry confidence have remained stable even in the face of adverse news coming from various parts of the world. “While the nonresidential construction spending recovery appears to remain in place, the industry’s overall outlook remains murky,” said Basu. “The global economy remains weak, and domestic corporate profitability has been slipping. The U.S. economic recovery continues to be under-diversified, with consumers continuing to lead the way. If corporate profitability continues to struggle, given falling exports and a general lack of confidence among CEOs, the pace of employment growth will slow over the course of 2016. That will presumably affect consumer spending, which is already being hampered by rising health care costs. That, in turn, could jeopardize the ongoing economic recovery, now on its way to completing its seventh year.”

SPENDING INCREASED IN JANUARY ON A MONTHLY BASIS IN 10 OF 16 NONRESIDENTIAL CONSTRUCTION SUBSECTORS INCLUDING: • Spending in the highway and street category expanded 14.6% from December 2015 and is 33.9 higher than in January 2015. • Sewage and waste disposal-related spending expanded 4% for the month and 1.4% from the same time last year. • Spending in the amusement and recreation category climbed 0.7% on a monthly basis and 16.9% on a year-over-year basis. • Conservation and development-related spending is 10% higher on a monthly basis and 1.6% higher on a yearly basis.

MATERIALS PRICES FALL AGAIN, BUT LABOR PRICES CONTINUE TO HOLD Current construction costs fell again in February, said IHS Inc. and the Procurement Executives Group (PEG). The headline current IHS PEG Engineering and Construction Cost Index (ECCI) registered 41.3 this month, down from 43.3 in January. The headline index has been consistently below the neutral mark for 14 months. The current materials/equipment price index deteriorated once again, slipping from 39.6 in January to 36.9 this month. February’s level is the lowest recorded since the survey began four years ago. All underlying material and equipment components showed falling prices except turbines, which showed prices unchanged. Compared to last month, fabricated structural steel had the largest drop and registered the lowest reading among equipment and materials. In addition, falling prices in almost all other categories demonstrate that weak pricing continues to migrate downstream. The current subcontractor labor prices rose in February. However, the index retreated from 52.1 in January to 51.5 this month. The sub index has been above the neutral mark for the last four months, although still significantly lower than its historical average. In the United States, South and Midwest reported mostly neutral prices for subcontractor labor, while in Northeast and West, prices rose. To read the entire article, visit ForConstructionPros.com/12174026

For more, visit ForConstructionPros.com/12176689

MARCH 2016

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MANAGER’S DIGEST

JANUARY US NEW CONSTRUCTION STARTS GREW 2% The value of new construction starts in January grew 2% to a seasonally adjusted annual rate of $607.9 billion, according to Dodge Data & Analytics. The gain for total construction relative to December reflected moderate growth for housing. At the same time, nonresidential building retreated slightly in January, as increases for commercial building and manufacturing plant construction were offset by diminished activity for institutional building. The nonbuilding construction sector also retreated slightly in January, as modest improvement for public works was offset by a downturn for the electric utilities/gas plant category. On an unadjusted basis, total construction starts in January were reported at $40.6 billion, down 14% from the same month a year ago which featured the start of two massive liquefied natural gas (LNG) terminal projects in Texas. If these two LNG terminal projects are excluded, total construction starts in January would be up 1% from last year’s corresponding amount. The January statistics raised the Dodge Index to 129 (2000=100), compared to a revised 127 for December. “The construction industry, as shown by the construction start statistics, seems to be gradually regaining upward momentum,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “Last year construction activity proceeded at a healthy clip during the first half, followed by a 20% drop in the third quarter and then a slight 1% rebound in the fourth quarter. January’s modest gain for construction starts is consistent with what was shown at the end of last year. On the plus side, long-term interest rates remain low in early 2016, and such market fundamentals as occupancies and rents are supportive of further growth by multifamily housing and commercial building. The new five-year federal transportation act is in place and fiscal 2016 appropriations have been passed, which should help public works construction. On the negative side, the struggling global economy, the extended drop in energy prices and the sliding stock market in early 2016 have raised the degree of uncertainty in the economic environment, which may contribute to a more restrained approach towards investment in the near term.” Residential building in January advanced 5% to $294 billion (annual rate), helped by a 6% gain for single family housing. Murray noted, “January’s improved pace for single family housing may be the initial sign that it’s moving beyond the lengthy plateau that took hold during the second half of 2015. Admittedly, though, the winter readings on housing can be volatile and more monthly gains are needed before it’s possible to say that growth for single family housing is being re-established.” Multifamily housing in January increased 2%, showing further strengthening on top of the 22% jump that was reported in December. For more, visit ForConstructionPros.com/12172727

LOW OIL PRICES ARE NOT HELPING THE ECONOMY,

SO WHAT CAN WE DO ABOUT IT?

When oil prices started their precipitous drop in summer of 2014, just about everyone thought that this would be unquestionably good for the American economy: less money spent on oil, and especially imported oil, means that more is available to spend on things we really want, such as food, clothing, education, etc., and the additional spending would generate economic growth and jobs. But now we are seeing some distressing outcomes: for the last several weeks, whenever the price of oil drops, the stock market drops, and vice versa. These outcomes are distressing (if they persist) not just because it means that investors make less money, but also because lower stock prices often foretell reductions in economic indicators that we all care about, such as personal income and jobs. This result is accompanied by news stories showing that the consumer savings from lower oil prices has not generated new spending. Nor is there evidence that the increased consumer savings has done much good for the economy. Instead, the industrial production that used to go to drilling for oil is disappearing, with nothing to replace it. For more, visit ForConstructionpros.com/12171211

MARCH 2016

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HeatPro Indirect Fired/Oil Heaters have a variety of applications; heating and drying of building sites and all-weather projects, shelters, offices, workshops and warehouses. We have 240,000BTU to 700,000BTU models available. Pictured: HeatPro 700

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Light Tower

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MANUFACTURER PROFILE

REASONS

YOUR CUSTOMERS WANT PROPANE-POWERED RENTAL EQUIPMENT More customers are asking for equipment that will deliver the performance they need, run cleaner, and meet stringent environmental regulations. With propane-powered equipment, you give can give your customers all three. Take for example the most popular propane-powered equipment: forklifts, scissor lifts, and propane heaters. Not only will they get the job done, your customers can operate propane-powered equipment indoors. According to a recent Propane Education & Research Council survey of rental store owners

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and equipment purchasing managers, the number one reason rental customers ask for propane equipment is that it’s “clean burning.” Propane’s ability to meet Tier 4 regulations was a close second. Nearly half of those surveyed — 41 percent — reported customers are specifically asking for propane-powered equipment. With the growing variety of propane-powered equipment that number is sure to increase, so add propane equipment to your rental lineup, and watch your business grow.

COMPANY INFO The Propane Education & Research Council is a check-off program of the propane industry that drives technology development to expand adoption of propane as a clean, domestic, and affordable energy source.

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GIVE YOUR RENTAL BUSINESS

A BOOST WITH PROPANE. CUT COSTS AND INCREASE PROFITS WITH MOBILE GENERATORS AND OTHER EQUIPMENT. Boost your rental business proďŹ tability by adding propane-powered rental equipment to your lineup. There are more types of propane-powered equipment than ever before, and an increasing number of rental customers are asking for the performance that only propane can provide. This environmentally-friendly fuel is cleaner than diesel or gasoline and can be used indoors and out. Plus, propane is produced right here in the U.S.A. Learn more about propane-powered scissor lifts, forklifts, heaters, mobile and portable generators, light towers, and the growing list of additional propane-powered equipment at PropaneOnTheJob.com.

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MARKET WATCH By Rod Dickens, contributing editor

RENTAL PROFESSIONALS REVEAL What Draws Them (Or Not) to Industry Tradeshows Attending industry events can be expensive, so finding ways to make the time count is key for today’s business owners

CALIFORNIA: LEARNING EXPERIENCE ON THE WEST COAST Hal Hodges, president of Hodges Rental Inc. in Monterey, CA, just returned from the California Rental Association tradeshow in Las Vegas. “I had a good time,” he remarked, “but missed a few seminars because it was a last minute thing for me. The person who was supposed to go had jury duty.” Still it was beneficial, added Hodges, whose father Howard started the business in 1951 and even before then rented bicycles to the military. Today, Hodges Rental has two locations, one a general rental store and the other, a party store. This is the first tradeshow Hodges attended since 2008 when the economy

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had made it cost prohibitive to travel. “I purchased a few pieces of equipment while at the show, including a concrete grinder, a vacuum, and an auger,” he noted. “If I had driven my own vehicle, I would have brought back a few more items. Exhibitors usually don’t want to take their equipment back home, so they offer good deals.” The equipment purchases aside, this veteran rental store owner emphasized he likes to go to industry events to “learn” and talk with other rental store operators and vendors. The fact he grew up in the business and has a ton of experience comes in handy when looking at and comparing equipment. As he put it, “I know which equipment holds up over time and which is less durable.” Hodges has taken

a few employees to industry events closer to home, but even then there are challenges to overcome. “It’s a good learning experience for them,” he emphasized, “but we’re a small store with only four employees. If I were to take two employees today, I would have to close the doors few a few days.” This owner is optimistic about the year ahead, thanks to an economy that’s looking up and plenty of moisture. “So far, so good,” he added. “We also sell propane and sales there have been strong, and our repair business has been doing well. Our biggest challenge is the nearby Home Depot and its long hours of operation.” In the meantime, Hodges said he continues to look forward to learning about new tools and equipment and still taking advice from his 89-year-old father whose years of experience never get old.

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3/15/16 8:58 AM

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MARKET WATCH MISSOURI: “I HAVE A WISH LIST, BUT...” Like all rental store owners, Tom Jackson, owner of Universal Rentals in St. Louis, has a wish list. One is to attend a few tradeshows, but he doesn’t. “I would love to go and meet other store owners, but time and money j u s t d o n’ t allow for it,” he emphasized. There’s another reason. In his words, “this business could be endless and you have to draw the line somewhere.” Jackson draws his by specializing in smaller equipment and tools for homeowners and helping customers with their weddings. Seeing new equipment and items exhibited at shows would be helpful, he admitted, but many of the deals offered there by vendors become available later on anyway. If he were to attend, his primary objective would be to talk with owners about some of the challenges they all face. Jackson has been in the rental business for 18 years. Prior to that, he worked in sales for five years. After attending a wedding in Wisconsin, he decided he could help stage such events. Soon afterwards he left his day job to set up shop in St. Louis. Today, his store is 50/50 tools and events, and he has few regrets. “The great thing about this business is you have the opportunity to help people, whether it’s staging their first wedding or helping them finish a project around the house.” The events business is making a comeback in St. Louis, Jackson explained, adding, however, that keeping up with demand is expensive. “It cost us several thousand dollars to move our store last year and to grow to meet

demand would require more money this year, the biggest cost of which is employees.” Yes, tradeshows and other industry events have their place, but just maybe they are less meaningful for store owners like Jackson whose sights are set less on expanding their business and more on maintaining a tight focus.

INDIANA: “MAKE EVERY MINUTE COUNT” Upon returning from this year’s ARA show in Atlanta, Doug Hudson, president of Hudson Rental Sales in New Castle, IN, had taken the advice he gives others who attend large industry events. Before going to show, he rested up a bit, took some good walking shoes, and planned on spending three days “making every minute count.”

Before going to the show, he rested, took some good walking shoes, and planned on spending three days

“making every minute count.”

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The minutes ticked off as he walked the entire huge tradeshow floor at least three times, spent as many hours as he could in seminars, and enjoyed a good meal and some socializing with fellow dealers before retiring for the night, to do it all over again the next day. “I took my 15 year-old son Eli with me this year, and he enjoyed the show,” said Hudson, whose father BJ started

the business in 1969. “But there wasn’t a lot of free time for many fun things to do.” As he related, when you spend the time and money to go to industry events, you want to make the most of it. Hudson Rental Sales has three locations in Indiana. In addition to New Castle, there are stores in Muncie and Anderson. The company rents tools and equipment to small and mid-size contractors and homeowners and offers a wide variety party and event supplies. “Last year was a good year for us at all three locations,” said Hudson. “Our market looks to be strong for next few years, too.” The sentiment, he noted, was shared by several other rental dealers at the show.

MARYLAND: LITTLE TIME AND MONEY FOR INDUSTRY EVENTS Attending tradeshows and other industry events is not part of the game plan for Bay County Rentals president Scott Carothers and his brother Bruce. “We’re a small store and if both of us wanted to go to an event, we would have to close the doors,” said Carothers, who’s been a rental dealer for 37 years. “Cost is a factor too,” he added, “and most of the manufacturers will give you the same deal they give show attendees.” Located in Reisterstown, his store supplies tools and equipment to smaller contractors and has a party business, as well. “Our market has improved since the big downturn, but the tool business still isn’t approaching what it was before then,” Carothers noted. “Probably onethird of our contractor customers went out of business. We were fortunate to have the party business, which has stayed relatively even.” He estimates that the tool business is inching its way back, but still lags maybe 30 percent behind of what it was in 2005. “Times have changed,” Carothers emphasized. “We expect the

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3/15/16 8:58 AM

SPRING CLEANUP

ARE YOU READY? Whether it’s spring cleanup or construction, Generac Mobile Products offers the tools and equipment your customers need, including Generac contractor-grade portable pressure washers and generators. Big or small, we have the equipment to get the job done. Call us or visit us online at GeneracMobileProducts.com

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MARKET WATCH

small contractor business to eventually come back, but it will take time. One big obstacle is that money isn’t as readily available as it once was for our customers and for us. If we need financing today, for example, manufacturers offer better percentages and less paperwork to fill out than banks.” Said Carothers, “If I were 15 years younger, I would likely reformulate our thinking and business model.”

SOUTH CAROLINA: “I ALWAYS COME BACK WITH SOMETHING OF VALUE” Eddie Bennett, president of Bennett Equipment and Supply in Greenville, has been in business 16 years and tries to make it to at least one tradeshow or industry event each year. In fact, he and five of his employees just returned from the ARA show in Atlanta. “I’ve never been to a tradeshow where I didn’t come back with something of value,” he related. “We typically don’t attend seminars, but instead walk the tradeshow floor several times. Doing so gives us an opportunity to spend time with our vendors and to find new interesting products, some of which are tucked away with back-aisle exhibitors. After being in business 16 years, events like this also gives me a chance to become reacquainted with industry friends.” With the venue this year a couple of hours from Greenville, Bennett took along a few additional employees. “It’s a perk,” he emphasized, “but it’s also an opportunity for them to learn more about the industry.” In the meantime, he took some time to cut a few deals with suppliers for compaction and aerial equipment and, in his words, “some smaller stuff,” as well.

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Bennett Equipment and Supply has two locations, the headquarters store in Greenville and another in Spartanburg. The company is a dealer for Takeuchi, Link Belt, and Gehl equipment and rents the same along with a wide variety of other equipment and tools to contractors of all sizes. Of its 31 employees, 10 are repair technicians and six spend a lot of time on the road hauling larger equipment. “The economy in Greenville is doing well,” said Bennett. “Michelin is here, along with BMW and General Electric, and Boeing recently came to Charleston.” Despite their presence and local economic growth, he keeps his eye on forecasts and pays close attention to architectural backlogs. “If the backlogs start to drop, it’s a warning sign that the market will slow,” he added. This rental store owner and dealer doesn’t anticipate that happening in the near future, but it never hurts to keep a finger on the pulse.

COLORADO: “IT’S A BUYING SHOW”

Every year, All Rental Center Inc., treks to the ARA show. Its main objective, said company vice president Jeff Thorp, is to buy equipment. “This year we purchased two backhoes and five skid steer loaders, along with an assortment of tools. We have a lot of equipment between our two stores in Colorado Springs and Calhan so we’re usually in the buying mode. If we get an opportunity to attend a seminar sessions, that’s a plus.” Family-owned, All Rental Center has been in business since 1976 and Thorp has been involved for 18 years. “We rent to both homeowners and contractors of all sizes,” he explained, noting that business has been good but relatively flat for the last three years. We typically don’t attend Flat isn’t necessarily bad, however. Four years seminars, but instead ago, the area suffered through several devastating fires and people had to rebuild. Rental sales were brisk then and essentially the stores have maintained Doing so gives us an that level ever since. Could it be better? opportunity to spend time “Sure,” said Thorp. “I think during election years, cuswith our vendors and to find tomers b e come more new interesting products, cautious and hold back. There’s a lot of work to be some of which are tucked done around here, and we anticipate seeing the maraway with back-aisle ket and our sales pick up next year.” ■

walk the trade show floor several times.

exhibitors…

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MANUFACTURER PROFILE

Rich Duncan improves maintenance, manages costs with GPS tracking.

Vehicles can suffer a lot of wear and tear in the construction industry. Just ask Rich Duncan, owner of Rich Duncan Construction, a growing commercial contractor serving Oregon, Washington and Idaho. When ongoing maintenance problems and high repair costs began cutting into his company’s bottom line, he turned to Verizon Networkfleet’s telematics solution. With the ability to track vehicles 24/7, the company has improved vehicle maintenance, reduced idle time, and addressed inefficient driver behaviors that contribute to high operational costs, improving productivity as a result.

Protecting their investment. Rich Duncan Construction sought to achieve three primary goals by using GPS tracking: increase driver accountability, reduce fuel usage, and improve maintenance processes to help lower repair costs and extend the vehicle life. Networkfleet’s vehicle location and remote engine diagnostic capabilities have the company well on its way to achieving all three. “We have a big investment in our fleet,” says Duncan, “and we wanted a better way to track basic preventive maintenance— such as oil changes and other services—to keep our vehicles in good condition. “Networkfleet makes it easy by monitoring engine performance and tracking the service history of every vehicle. The engine diagnostic alerts allow us to bring in vehicles for service as soon as a problem is identified, potentially avoiding costlier repairs.”

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“With Networkfleet, I can focus on growing the business because I no longer have to micro-manage my drivers. After only a few months, the system is already paying off.” Rich Duncan Owner

Lowering idle times. Tracking their fleet with Networkfleet yielded immediate results, including lower fuel usage. The source—reducing excess idle time—came as a surprise to company management. “We didn’t even know we had a problem with idling until we started tracking it in Networkfleet,” says Duncan. “We quickly found out that some trucks were idling up to half an hour at a time. We made our drivers more aware of their idling habits, and the problem went away after only a few months. Since then, average MPG per vehicle has gone up.”

Maintenance alerts lead to an efficient fleet. Networkfleet is also helping drivers reduce speeding, hard braking and

other inefficient habits. By monitoring the location and performance of vehicles, managers can notify drivers via email alerts when they exceed established parameters for these areas. Rich Duncan Construction also uses email alerts to help improve vehicle maintenance. Networkfleet automatically tracks the mileage for every vehicle. It then alerts drivers about their vehicle’s next scheduled oil change, reminding them to have it serviced in a timely manner. Duncan believes this will help lower maintenance and repair costs. “Networkfleet gives me more control over my company,” says Duncan. “I can now focus on growing the business because I no longer have to micro-manage my drivers. After only a few months, Networkfleet is already paying off.”

Using Networkfleet to track vehicle location and monitor engine diagnostics, Rich Duncan Construction has: • Lowered idle times • Increased MPG • Reduced speeding, hard braking and other inefficient driving habits

Learn more. To find out how you can benefit from Networkfleet, contact your account manager or visit networkfleet.com.

© 2016 Verizon. All Rights Reserved. The Verizon name and logo and all other names, logos, and slogans identifying Verizon’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners. CA-NO41 2/25/16 www.ForConstructionPros.com/RENTAL

3/15/16 8:59 8:53 AM

Manage your fleet from your seat. At the office or on the road, managing your fleet is simple with Verizon Networkfleet. GPS tracking reveals where your vehicles are and where they’ve been. Engine diagnostic alerts and preventive maintenance reminders help you control repair costs and keep your trucks working. You may even discover hidden savings opportunities through our comprehensive reports, helping increase productivity and control costs. No matter where you’re sitting—in the field, at home, or at the beach—access Networkfleet from your computer, tablet, or smartphone.

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NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS

NEW

PRODUCTS HERE’S WHAT LEADING SUPPLIERS HAVE TO OFFER THE RENTAL MARKET RIGHT NOW Fresh from The Rental Show 2016, following are some of the latest product introductions available to rental businesses today. From aerials to earthmoving, and generators to turf care, here are some suggestions for additions to your rental inventory.

Vermeer SC552 HighHorsepower Stump Cutter With the launch of the Vermeer SC552 stump cutter, Vermeer offers a versatile tree stump removal solution for the tree care and rental markets. •

3-in. (58.4 cm) cutter wheel 2 diameter

•

6-hp (41.7 kW) Kohler diesel Tier 4 5 Final engine

• Control handles for the boom swing and boom raise/lower are equipped with an operator presence handle design that provides capacitance-sensing capability • Vermeer SmartSweep control system monitors engine load and provides continuous feedback to automatically adjust the cutter wheel speed • Cutter wheels equipped with the Vermeer-exclusive Yellow Jacket cutter system that features universal and reversible carbide-tipped teeth with two cutting edges on each tooth and more side pocket clearance, which limits the pocket rubbing that can cause power loss and premature pocket wear Search: 12173938

Skyjack SJ30 Articulating Electric Boom Series Skyjack introduces the new SJ30 articulating electric boom series featuring exceptional drive and duty cycle performance from an AC electric source. Loading and unloading trailers is easy and duty cycles are increased to maximize the amount of work possible from a fully charged machine. • Two versions - the SJ30 ARJE (Articulating Rotating Jib Electric Boom) and SJ30 AJE (Articulating Jib Electric Boom) • Models measure 47 in. wide with zero tailswing • Working height of 35.6 ft. • Up-and-over clearance of 13.1 ft. • 60-in. inside turning radius • 500 lbs. maximum weight capacity • Wind rating of 28 mph • 35% gradeability • SKYCODED, Skyjack’s relay-based control system • SKYRISER, Skyjack’s true vertical rise system • EASYDRIVE, Skyjack’s exclusive direction-sensing drive and steer controls Search: 12177817

Kohler Launches Mobile Paralleling Box Kohler Power Systems has launched a new Mobile Paralleling Box, which delivers cutting-edge flexibility by allowing users to combine different sized generators with different fuel types. • Four of the new boxes can be used to parallel as many as eight generators • Kohler Decision-Maker 3500 digital controller, which is standard on all Kohler gaseous and Tier 4 Final diesel mobile generators, provides the paralleling intelligence and network communications for remote monitoring • System uses contactors to connect to the bus and eliminates the need for installing or investing in motorized breakers on generators that may never be used in a parallel application • Each contactor is rated at 1,000 amps – different sized generators can parallel as long as each unit’s output is less than 1,000 amps. • External-controlled load sharing via analog bias signals • Load management to ensure the generators are not overloaded Search: 12173443

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POWER FACTS 275–770 hp 5, 6 and 8 cylinders US Tier 4f, EU Stage IV NO DPF

Solutions for Hard Work. PROVEN US TIER 4f AND EU STAGE IV TECHNOLOGY – WITH NO DPF. The Scania engine platform features compact dimensions and a common footprint which enhances flexibility, simplifies installation and shortens time-to-market. Last but not least: Proven reliability, outstanding operating economy and industryleading fuel efficiency vouches for long-term profitability and satisfied customers. Power at work. It’s here for you today.

For the closest dealer, visit www.scaniausa.com

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3/17/16 11:03 AM

NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS

NEW

PRODUCTS Classen PRO SA30 Stand-Aer Classen unveiled the PRO SA30 Stand-Aer as part of its PRO line of landscaping equipment for commercial landscape contractors and rental centers. The PRO SA30 Stand-Aer is designed to significantly reduce maintenance hassles while offering an easy-to-use machine. • A cover for the chain decreases dirt and debris buildup and Classen’s automatic chain tensioner reduces the likelihood of chain slippage and popping • C lassen’s Hydra-Cool system feeds a circuit of coolant to the unit’s transaxles to prevent the drive system from overheating • 1 5-hp Kawasaki engine provides increased efficiency for a variety of jobs with transport speeds as fast as 7.4 mph • T rue zero-turn maneuverability allows operators to work close to shrubs and trees Search: 12172875

EDCO Variable Speed Trowels These Variable Speed Trowels are specifically designed for trowel-on epoxy overlays and epoxy mortar floor installations. • Twist dial allows easy control of speed from 0 to 88 rpm • Variable speed capability allows use for other kinds of flooring applications, including improving the surface of terrazzo and some concrete installations • Available “Tote-A-Trowel” dolly makes moving heavy trowels a oneperson job Search: 12169698

Barreto 3104CMS Chipper Mulcher Shredder The all-new 3104CMS Chipper Mulcher Shredder from Barreto transforms yard debris into valuable mulch. • Powered by a 31-hp V-Twin Briggs Vanguard engine with electric start, the CMS is designed to chip logs and branches up to 4 in. in diameter, while the mulching hopper accommodates smaller leaves and branches • Chipping blades are double sided and the mulching/ shredding hammers have four hammering surfaces both have quick access ports for ease of service • Comes ready to tow with a standard torsion axle and quick release coupling Search: 12172880

Genie All-electric Z-60/37DC Boom Lift

JLG 1932R Electric Scissor Lift

The all-electric Z-60/37DC articulating boom combines the benefits of quieter, environment-friendly operation with the four-wheel drive performance of a traditional diesel-powered machine.

Designed with lower cost of ownership in mind, the 1932R offers increased serviceability, reliability and durability.

• Fast re-charging capabilities provide full charge from a 110V wall power supply in under 14 hours

• Platform capacity of 550 lbs.

• Delivers a 59-ft. 7-in. platform height, 36 ft. 7 in. of horizontal reach and 24-ft. 3-in. up-and-over clearance • Equipped with a jib that provides a high 70° up and 65° down range of motion • Platform offers 160° rotation and is available in 6- or 8-ft. versions with a capacity of 500 lbs. • FastMast system enables the boom to be moved from full height to below grade and back with just one boom function

• Platform height of 19 ft. • Service access via all-steel swing-out component trays featuring a layout that optimizes serviceability • Simple, low-maintenance active pothole protection systemy • All-steel platform, steel component doors, and thicker rubber tires • Machine width of 32 in. and stowed height of 6 feet 7 inches) Search: 12177849

Search: 12171584

MARCH 2016

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POWER

20 HP GAS/DIESEL

DRIVETRAIN

CUT DOWNTIME WITH THE

INDUSTRY’S ONLY DEDICATED RENTAL SUPPORT TEAM.

VEHICLE LOAD

AUTO 4 x 4 3/4 - TON

WARRANTY

2 year/2000 hour

Our durable, rental-ready automatic all-wheel drive Carryall® utility vehicles are backed by a corporate rental team you can reach directly by phone. They work exclusively for rental customers. Team members know our vehicles and organization from the inside out and: • Operate regional and on-site classroom and hands-on training for mechanics, working with actual Club Car vehicles. • Troubleshoot issues with clients remotely and on site. • Speed parts delivery. • Serve as a single point of contact for Club Car. • Act as a liaison between rental customers, engineering, product development, aftermarket and other divisions of the company. This combination of rugged vehicles and fast, efficient service reduces downtime and maintenance costs, improves renter satisfaction and speeds the return on your investment. To learn more, call Club Car’s Dedicated Rental Team at 800-258-2227.

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NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS

NEW

PRODUCTS

Terex ‘Rental Ready’ Compact Excavators Terex introduces four ‘rental-ready’ compact excavator models: Terex TC16-2, TC22-2, TC35-2 and TC35R-2. • Developed emphasizing cost-savings to customers • New exterior design, operator-focused workstation and modern excavator controls are also highlights of these new excavators • Equipped with LUDV hydraulics (load-independent flow distribution), enabling power to be transferred to the attachment the operator is using as needed

Wacker Neuson Tier 4 Final WL Wheel Loaders The upgraded WL compact articulated wheel loaders include 48- to 75-hp Tier 4 Final engines and updated cabs that combine power, performance and operator comfort. • Four models featuring 7,385- to 11,243-lb. operating weights, 4,885to 7,072-lb. straight tipping loads (bucket) and 10-ft. 6-in. to 11-ft. maximum height to hinge pin • Hydraulically operated universal attachment plate enables quick switch of attachments without leaving the operators station

• Precise joystick control (Terex Fingertip Control) Search: 12177087

JCB 525-60 Hi-Viz Compact Telehandler With a maximum lift height of 20 ft. and a load capacity of 5,500 lb., JCB’s 525-60 Hi-Viz compact telehandler is just 6 ft. wide and 6 ft. 2 in. tall. The side-mount engine permits a low boom pivot point for stability and good visibility to the front wheels, the rear, across the boom and to the forks. • Engine: 74-hp, 2.5L JCB diesel by Kohler, certified Tier 4 Final without a DPF or DEF engine

• Include a faster hydraulic block and 14-pin auxiliary electrical harness that allow use of current or new skid-steer attachments

• Two-stage hydrostatic transmission, travel speeds up to 15 mph

Search: 12171191

Search: 12173133

• Three steering modes: front-wheel, all-wheel and crab steering • Optional limited slip differential for the front axle improves traction

Atlas Copco CA1400 Soil Roller The tier 4 Final compact CA1400 soil roller offers two speeds and amplitudes for added versatility on a variety of applications, including pipe trenches, roads, streets, steep slopes and parking lots.

Updates for Volvo’s D-series models (EC35D compact and ECR40D short swing radius compact) include 10% more cab space, 5% more fuel efficiency compared to previous models and 6% to 14% improvement in break-out and tear-out forces. • Tier 4 Final Volvo D1.8A engine

• 66-in.-wide drum and two amplitudes — .032 in. and .067 in. — allow contractors one unit for compacting a wide range of materials

• Intelligent hydraulics match Volvo engine to find best match of engine speed and hydraulic efficiency

• Using the adjustable settings, operators can change the amplitude to suit different lift thicknesses

• Four attachment-specific buttons for precise adjustment of hydraulic flow

• In addition to two amplitudes, operators can set the speed on the CA1400 to high or low to achieve different compaction results on a variety of applications and materials

• Servo-hydraulic travel levers/pedals eliminate need for cables and ensure smooth actuation

• Cross-mounted 75-hp Kubota diesel engine sits perpendicular to the CA1400’s frame Search: 12176711

Volvo D-Series

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• Proportional pilot control joystick

• ECO mode reduces fuel consumption by up to 10% • Two user-adjustable engine speeds for tasks such as grading or lifting Search: 12174944

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MANUFACTURER PROFILE

CHICAGO PNEUMATIC: PEOPLE. PASSION. PERFORMANCE. The Chicago Pneumatic brand has been around for over a century, established in 1901. Since its origination, the name has represented high-performance tools and equipment designed for an extensive range of applications. CP has a wide product offering with an array of pneumatic, hydraulic and gasoline-driven equipment, portable compressors and generators, light towers, rig-mounted attachments, and concrete and compaction equipment for the construction and demolition industry. Chicago Pneumatic has a global network of distributors, and provides customers with worldwide sales and service support. Their durable products,

sales and service support are just a few reasons as to why customers keep coming back, but another reason is that they listen to the voice of their customers. People. Passion. Performance. is the CP motto and simply said, the phrase describes the way they operate, offering strong products backed by an outstanding sales and service support team.

P (800) 760-4049 | F (800) 952-7975 www.cp.com

PUMPS THAT PERFORM

Chicago Pneumatic now offers a new line of diaphragm pumps that are durable, efficient and precision-engineered to pump a variety of viscous, corrosive and abrasive fluids. Choose from a range of sizes and materials to fit your application and get the most for your investment with CP quality. Visit cp.com to learn more.

Chicago Pneumatic Construction Equipment Phone 800-760-4049 | Fax 800-952-7975 | www.cp.com

www.cp.com

People. Passion. Performance. Search: 10072423

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MARCH 2016

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NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS

NEW

PRODUCTS Gila Tools Single Row Diamond Cup Wheel The Gila Tools Single Rowed Diamond Cup Wheels are diamond grinding wheels that are designed for the removal, shaping and smoothing of concrete and masonry surfaces. • Vent holes help dissipate heat for extended wheel life Search: 12178228

Worksaver Inc. Sweep Action Rock Grapple for Mini Skid Steers

CS Unitec EHD 2000 S Diamond Core Drill

Worksaver’s 42-in. grapple sorts large or small rocks and debris, and its sweeping action allows the operator to move debris into the bucket.

• Use with angle grinders, concrete grinders and grinding machines

The hand-held EHD 2000 S diamond core drill can drill anchor holes or through holes up to 6-in. diameter in internal brick, brickwork, blockwork, soft concrete and other abrasive materials. • Features a two-speed gearbox (0-1,000/0-2,000 rpm) and 13.6-amp motor • Includes electronic soft start, temperature control and overcurrent cut-off • Safety slip clutch prevents jamming and allows for handheld operation • Can be coupled with an industrial HEPA dust collection vacuum • Supplied with an M18 male spindle, 5/8” x 11 UNC adapter and a convenient carrying case

• For mini skid steers and compact tool carries • Front grapple operates in sweeping action to pull rocks or debris into unit • Grapple design retains rocks or debris allowing operator to rock attachment to sift dirt out of material • 39-in. upper grapple sweeps material into bucket • Lower tines made from 1-in. solid round and spaced 3 in. center to center • Front sweep clamp remains in open position until rear section is closed

• Optional diamond core bits available

• Once closed, front sweep clamp operates like a thumb to move material into and retain it in the bucket

Search: 12173930

Search: 12178724

Cummins Highlights Tier 4 Final Solutions and Connected Diagnostics at Rental Show 2016 Cummins Inc. is displaying the current generation of Tier 4 Final four-cylinder engines, aftertreatment and Connected Diagnostics (telematics solution) in their Booth 4517 at the Rental Show through Feb. 24 in Atlanta. On display is Cummins’ full Tier 4 Final four-cylinder product line, including the QSF2.8 (49 to 74 hp), QSF3.8 (74 to 130 hp) and QSB4.5 (113 to173 hp). These products offer an optimal range of displacement and horsepower, as well as simplified technology that allows for compact installation packages, making them well-suited for space-constrained construction and materialhandling equipment. In addition, a QSB4.5-powered mobile rental generator set with 200-kW output is featured. The four-cylinder product line spans from 49 to 173 hp, is certified to meet U.S. EPA Tier 4 Final low-emissions regulations and are fully integrated with exhaust aftertreatment systems designed and manufactured by Cummins Emission Solutions. This integration allows aftertreatment size and technology to be precisely matched to engine output and intended equipment type. Also on display are Cummins Tier 4 Final aftertreatment solutions including the “fit and forget” diesel oxidation catalyst (DOC) for ratings below 75 hp (56 kW), rugged selective catalytic reduction (SCR) system which has been designed to last the life of the engine and combined DOC-SCR system designed for use at higher outputs. Cummins is also highlighting Connected Diagnostics at the Rental Show. Active in over 30,000 on-highway vehicles and soon to be available for off-highway equipment, Connected Diagnostics uses telematics to wirelessly connect the engine to Cummins for immediate diagnosis of an engine system fault alert, and provide valuable information within seconds. Search: 12173415

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3/17/16 11:04 AM

Quality Aftermarket Parts for Lift Equipment

Quality Aftermarket Parts for the Aerial Industry

Precision Components offers aerial lift replacement parts for JLG®, Genie®, Skyjack™ and Snorkel equipment. With an assortment of the most commonly used replacement parts in the aerial lift industry in stock, including platforms, railings, ladders, hoods, tires and many more items, Precision Components is your quality aerial lift replacement part leader. You can count on getting the best service, delivery and pricing in the industry. Most orders ship the same day. Check us out today online at www.pcaerialparts.com or give us a call at (866) 853-8989 to learn more about Precision Components.

Same day shipping on most orders! Many new JLG®, Genie® and Skyjack™ items added. Call today to request a full color catalog, current pricing and availability.

866-853-8989 | inside.sales@pcaerialparts.com | pcaerialparts.com Search: 12064693

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Now Order Parts Online 3/17/16 11:04 AM

NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS

NEW

PRODUCTS Hilti Hand-Held Gas Saws DSH 700-X and DSH 900-X

These next generation saws incorporate an innovative technology called Easy Start that automatically sets the proper amount of choke for more first-pull starts. • With Easy Start, there’s no need to worry about adjusting the choke simply flip the switch “on” and pull the starter rope • Hilti’s Cyclone Air Filtration System removes most of the dust and debris from the engine air intake flow using centrifugal force • DSH 700-X is a 70cc saw available in a 14-in. model • DSH 900-X is a 90cc saw in 14- and 16-in. models Search: 12173949

Jenny Vertical Tank Stationary Air Compressors This line of 16 electric two-stage, vertical-tank stationary air compressors come in 60-, 80- and 120-gal. tank sizes, provide 175 psi and displace between 9.1 and 43.6 cfm. • Heavy-duty, two-stage cast-iron pump and powder-coated, ASME-certified tank

General Equipment M235 Two-Man Hole Digger New polymeric Gen 2 Comfort-Flex operator handle technology with flextype grips take the next step in absorbing torque kickback and damping vibrations when operating General’s M235 TwoMan Hole Digger. • New transmission lock allows easier removal of a stuck auger from the ground without disconnecting the power unit from the auger and helping prevent damage to both • 4.5 hp, 190cc Briggs & Stratton gasoline engine • Max. drilling torque: 154 ft. lb. Search: 12173460

• Powered by a one-phase or three-phase electric motor providing between 2 and 10 hp • Large flywheel provides for extra cooling and easier startup, while special unloading valves further assist motor starting • Automatic start/stop control with pressure unloader helps to maintain consistent pressure levels Search: 12173664

Little Beaver Anchoring Equipment This anchoring equipment allows installers to quickly secure utility towers to solid ground, which prevents towers from shifting or moving off footings during a storm or strong winds. • Can install each anchor in about a minute • Package includes an 11-hp hydraulic drill, high-torque handle and anchoring adapter

SlatTrax SlatTrax is a ground protection system that uses a skid loader to roll out and retrieve temporary roadway in about two minutes providing an alternative to plywood and mats. • System include hydraulically-powered attachment which holds dual spools of Trax up to 100 ft. in length • Trax available in 36- and 42-in. widths

• Compact body and portable, selfcontained hydraulic power pack make it easy to anchor in remote locations and cramped work sites

• Break-point sections in Trax allow for manual maneuvering

• Easy-to-use controls with forward, neutral or reverse positions • High-torque handle (700 lb.-ft of torque at 45 rpm) allows operators to drill a 6-ft.-long anchor flush to the ground quickly

• Optional trailer holds complete SlatTrax system with two 100-ft. spools of Trax

Search: 12173945

Search: 12173978

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• Use on hills, curves, turf and hard cover

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3/17/16 11:04 AM

MANUFACTURER PROFILE

CUSHMAN HAULER 4X4 DIESEL Since 1901, Cushman vehicles have been recognized as light-transportation solutions for commercial and industrial applications. Designed and manufactuered by Textron Specialized Vehicles Inc., Cushman products include more than 20 different vehicle models. The Cushman® Hauler™ 4X4 utility vehicle is rugged, reliable and versatile. The Hauler 4X4 combines four-wheel-drive capability with a powerful 22 hp, 1,007cc three-cylinder OHV diesel engine, so it’s designed to handle large site prep and land clearing

jobs on tough terrain. Its performance is further enhanced by an automatic, continuously variable transmission (CVT) with low- and high-gear ratios, a userselectable locking rear differential which can be engaged in both 2WD and 4WD

operation, four-wheel independent suspension, and exceptional hauling and towing capacity, with a maximum vehicle load of 1,600 pounds. For more information and to see all Cushman’s vehicle offerings, visit Cushman.com.

FOR OFF-ROADS, BACKROADS AND BUILDING YOUR OWN ROAD. Introducing the rugged new Hauler ® 4x4. Powered by a 28-hp Subaru EFI gas engine, it boasts an industry-leading 800-lb. bed capacity to haul everything your work demands. With user-selectable 4WD and 4-wheel independent suspension, no job is out of reach. Visit Cushman.com/hauler4x4 to see it in action. ©2015 Textron Inc. All rights reserved.

Search: 10711756 www.ForConstructionPros.com/RENTAL

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MARCH 2016

3/17/16 3/15/16 11:04 9:15 AM

NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS • NEW PRODCUTS

NEW

MBW Walk-Behind Power Trowels

PRODUCTS

MBW’s 36” and 46” “MADE IN THE USA” Walk-Behind Power Trowels feature the industry’s heaviest bearings, output shafts, gears, spiders and blade arms. •

Trowel handles are up to 6 in. longer than most competitors for greater leverage and are adjustable to fit the operator more comfortably and absorb trowel torque • Each MBW trowel is balanced with regard to engine location for performance and reduced operator fatigue Search: 12169700

Toro BRC-28 Brush Cutter Toro’s entry to the brush cutter market is its hydrostatic-drive BRC-28 designed to take down 2-in.-diameter saplings up to 6 ft. tall. • Oscillating deck allows the 28-in.-wide cutting head to pivot 10 degrees to follow ground contours • Forward and reverse ground drive can be controlled with one hand • Offset blade design reduces impacts to the unit while a spindle shaft saddle prevents the blade bolt from loosening during normal operation

Rhino Multi-Pro Post Driver Rhino Multi-Pro Post Driver features ergonomically designed handles, interchangeable chuck and vibration dampening.

• Standard 6-in. four-ply tractor lug tires • 4-in. height-of-cut • Large-diameter drive pulleys extend belt life Search: 12173442

• 2.5-in. ID interchangeable chuck expands range of driving profiles with optional chucks for channel post and square tube • Rhino Chuck-Lok adapter system with 1-, 1.75- and 2-in. adapters

Next Generation Light Towers Next Generation’s light towers are designed to stack on top of each other to fit as many as 12 units on a 20-ft. trailer; 30 or more on a flatbed transport trailer. • Kubota-powered light plants have a 40-gal. fuel tank, and with four 240watt LED lamps, the units can run 200 to 300 hours on a tank of fuel • Standard machine is wired to run off shore power as well. The aluminum mast raises with a power winch. Options include: • All-battery power

• Rhino’s CIS Vibration Dampening

• Hybrid battery-diesel power

• Ergonomically designed handles for comfort and ease of use

• Extended run time up to 500 hours

Search: 12177211

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• Up to eight lamps, 300,000 lumens

Generac Power Systems Homelink 6500E Generac Power Systems announced the introduction of the HomeLink 6500E, a revolutionary, all-inclusive, residential backup power kit. • Affordable, safe, one-of-a-kind backup power solution that integrates an upgradeable transfer switch and a portable generator in one package • Kit enables homeowners to properly prepare for outages, with the ability to back up essential circuits using the portable generator – and easily upgrade to an automatic home backup generator in the future with the HomeLink upgradeable manual transfer switch • Designed to provide residential backup power to essential circuits • When the 6500E isn’t providing home backup power, it can be used to power recreation equipment, tools and more. • Equipped with an easy-to-use electric start and TruePower technology which delivers less than 5% total harmonic distortion (THD) for clean, smooth operation of sensitive electronics and appliances Search: 12171277

MARCH 2016

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www.ForConstructionPros.com/RENTAL

3/17/16 11:04 AM

JCB TELESCOPIC HANDLERS & BACKHOE LOADERS

World’s best selling. Invented and perfected by JCB.

JCB SKID STEER & TRACK LOADERS

World’s safest. Unique side entry.

JCB COMPACT EXCAVATORS

Industry leading serviceability.

Let’s face it. There are many brands of construction equipment you can put into your rental fleet... So why JCB?

SIMPLICITY We are your single source partner for machines, parts and service. Our unique vertical integration means it’s a JCB through and through.

JCB is the third largest manufacturer of construction equipment in the world. In fact, we are the world leader in the manufacture of backhoe loaders and telescopic handlers. But neither of these facts mean a thing unless we help your rental business make money.

PRODUCTIVITY With an innovative no DPF Tier 4 Final engine solution, customer productivity is not lost to meet emissions requirements.

SUPPORT With over 300 dealer locations and a dedicated field based staff, help is just a phone call away.

VALUE PROPOSITION Extended service intervals, strong factory warranties and national parts availability let you focus on profitability.

DURABILITY With rental specific designs that focus on high wear areas and include many reinforced major components, JCB is rental tough.

As a family owned business, we are big enough to compete, yet small enough to care about your business and how the JCB brand can help you grow it profitably. JCB has a wide range of productive, rental ready equipment, backed by a manufacturer’s warranty and supported by a nationwide dealer network, with strategically located parts facilities across the country for on demand delivery. And when it comes time to replace equipment, you can count on strong residual values from your JCB fleet. Position your rental business for growth by making the switch to JCB today.

www.jcbna.com Search: 10073460

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3/17/16 11:04 AM

MANUFACTURER PROFILE

TROJAN DEEP-CYCLE

BATTERY TECHNOLOGIES

FOR RENTAL EQUIPMENT Various issues impact the industry from reduced budgets to increased environmental regulations, which makes battery selection critical to ensuring reliable operation of forklift, AWP and other lift access rental equipment. Trojan Battery offers advanced deep-cycle battery technologies that are engineered to maximize equipment performance, reduce downtime and extend overall battery life. Trojan works closely with equipment manufacturers to ensure our batteries provide the functionality needed to keep pace with new designs and customer demands. Using advanced testing procedures and state-of-the art manufacturing practices, enable Trojan to deliver quality deep-cycle batteries for demanding applications.

Flooded Trojan’s deep-cycle flooded batteries are the flagship of Trojan’s product

MARCH 2016

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portfolio, offering rugged durability and long life. Featuring Trojan’s T2 Technology™, an advanced battery technology that provides maximum sustained performance and increased total energy, Trojan’s deep-cycle flooded batteries are perfectly suited for use in a variety of applications.

HydroLink™ Deep-cycle flooded batteries need regular watering to ensure maximum performance and life. Trojan’s HydroLink™ single-point watering system simplifies this process, and can save time and money by helping avoid premature battery failures, as well as the cost of successive battery replacement due to lack of consistent watering. With Trojan’s HydroLink advanced singlepoint watering system, precise battery watering is made easy when on the job by filling a set of batteries in less than 30 seconds.

AGM & Gel Non-spillable batteries such as AGM and gel designs, are gaining in popularity due to various regulatory requirements. To meet this growing worldwide demand, Trojan offers a broad range of deep-cycle AGM and gel batteries that require minimal maintenance, and can be used in locations where mandates require equipment be powered by batteries that do not spill or gas. Trojan’s non-spillable deep-cycle AGM and gel batteries feature unique design elements for optimum performance and rugged durability.

(800) 423-6569 www.trojanbattery.com

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3/17/16 11:04 11:00 AM

No Boundaries

Weâ&#x20AC;&#x2122;ll Keep Breaking The Boundaries. Where You Go After That Is Up To You. Whether you own one Aerial Work Platform machine or manage an entire fleet, battery performance matters. And when it comes to deep-cycle batteries, no one goes to the extremes of performance like Trojan. Our full line of deep-cycle flooded, AGM and gel batteries will take you to heights you never dreamed possible.

800-423-6569 | +1-562-236-3000 | www.trojanbattery.com Search: 10075004

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3/17/16 11:04 AM

STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY B y J e n ny L e s c o h i e r, e d i t o r

U.S. RENTAL INDUSTRY CONTINUES TO GROW but Shifts Into Lower Gear With more room for growth in the construction and industrial markets, rental should see further expansion despite difficulties in oil and gas

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it h c onst r u c tion indicators looking healthy overall for 2016, d e s pit e s om e softening from initial predictions, the equipment rental industry is on track to see continued growth, however with slightly tempered enthusiasm compared to recent years. At its annual press conference at The Rental Show in Atlanta, GA, the American Rental Association announced it’s predicting 6.6 percent growth for 2016 and 5.6 percent growth for 2017. That’s down from previous year’s predictions closer to 8-percent compounded annual growth. The forecast reflects the downward shift of investment in energy markets and continued growth in residential and nonresidential construction.

“There is no doubt that the secular shift to renting equipment continues in the markets those in the equipment rental industry serve,” said Christine Wehrman, ARA’s CEO and executive vice president. “Rental companies also are adept at identifying customers and relocating equipment to different areas to take advantage of increased demand.” ARA’s latest forecast, with data compiled by IHS Economics, shows an even stronger story for the growth of the equipment rental industry because revenue totals have been revised upwards to reflect the latest data recently released by the federal government from the 2012 U.S. Economic Census. The industry’s new U.S. total rental revenue figures in 2009 through 2012 also impact the totals for 2013 through 2015 and the numbers forecast for 2016

www.ForConstructionPros.com/RENTAL

3/15/16 9:30 AM

STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

construction market is expanding and, in some markets, housing literally cannot be built fast enough and new home prices are rising. Nonresidential construction also is growing strongly. Commercial construction growth will fall from double digits to high single digits, but remains fundamentally strong,” Hazelton said. “The passage of the Highway Bill has improved the outlook for infrastructure-related spending for the first time since the stimulus package of 2009. These considerations bode well for construction/industrial and general tool rental,” Hazelton said.

Penetration index slightly lower, despite growth

through 2019. According to the revised figures, total rental revenue — including construction/industrial, general tool/ homeowner and party/special event — in 2012 was $36.5 billion compared to the previous estimate of $31.3 billion. The forecast for 2016 is now $48.2 billion and up to $53.7 billion in 2019. “Large revisions in the Economic Census are not uncommon since it is conducted once every five years and has a 100% sampling of U.S. companies,” said Scott Hazelton, managing director, IHS Economics. “The lack of frequency allows for changes in an industry to build up and the 100% sample is far more robust than any other government data project.” Changes in total U.S. rental revenue have not impacted growth rates forecast by IHS Economics. “The residential

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Rental penetration decreased slightly in 2015 to 52.9% from 2014’s 53.9%, according to the latest ARA Rental Penetration Index. “Rental penetration is measured as the share of the U.S. construction equipment fleet accounted for by rental companies. Rental penetration will decrease if rental companies acquire fleet slower than contractorowned equipment or if they divest fleet faster than contractors,” Hazelton said. “In the Great Recession, the latter was the case. In 2015, it is the former rationale that prevails. The story in 2015 was that construction markets were hot and energy markets were not. Equipment required for shale oil exploration was no longer in demand, yet much of this equipment was wellsuited for construction. For a rental company that supplies equipment to both industries, the solution was to defer some purchases of new equipment for construction sites and redeploy their existing assets from energy to construction,” Hazelton said. “Fleets still grew in 2015, but at a slower rate, while the investments by contractors remained unchanged. The result is a mild dip in rental penetration that indicates the flexibility of the industry, not any weakness in the outlook,” he said.

“The story in 2015 was that construction markets were hot and energy markets were not. Equipment required for shale oil exploration was no longer in demand, yet much of this equipment was well-suited for construction. For a rental company that supplies equipment to both industries, the solution was to defer some purchases of new equipment for construction sites and redeploy their existing assets from energy to construction.” Scott Hazelton, managing director, IHS Economics

MARCH 2016

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

STATE OF THE RENTAL INDUSTRY

The oil and gas effect The recent slowdown in oil and gas drilling, resulting from the high supply and low demand environment, which in turn drove down the price of oil, has impacted the utilization of both dealer rental and general rental fleets. According to Wells Fargo’s 2016 Construction Industry Forecast, the overall rig count in the U.S. is down 59% from October 2014 to October 2015. The reduced activity surrounding new well activity has impacted distributors, contractors and rental companies in areas with a higher concentration of energy production. The positive news in these areas is that as equipment comes off of production jobs in energy, it has been absorbed into other construction-related activities. The downside to this is that there has been recent pressure on pricing for non-energy related projects as well as downward pressure on rental rates and used equipment rates for assets related to the energy industry. It is yet to be determined what the long-term impact of this protracted slow-down will be on the overall construction industry, but there appears to be sufficient activity on a national basis to absorb the loss of energy-related activity in the industry. Still, the slow down in oil and gas has had an effect on rental fleet utilization. According to Wells Fargo data, utilization (as measured by average Original Equipment Cost on rent against average OEC) has been coming in lower on a year-over-year basis beginning in February 2015, peaking in April and improving in May 2015.

Rental rates expected to rise Rental rates are up 25.5% since January of 2011, according to the Rouse Rate Index, and the recently released Equipment Watch Rental Update reported the 4th Quarter of 2015 saw Q4 retail rental rates increase across the board as compared to Q3. Increases in average rental rates can be credited to improvements in

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“Fleets still grew in 2015, but at a slower rate, while the investments by contractors remained unchanged. The result is a mild dip in rental penetration that indicates the flexibility of the industry, not any weakness in the outlook.” Scott Hazelton, managing director, IHS Economics the housing market, which caused an increase in demand for heavy construction equipment, the report says. Throughout 2015, much of the heavy equipment rental industry demonstrated increases in rental revenue and rental volume, but increased competition—especially from growing peer-to-peer networks—led many rental houses towards volatility for the first time in years. “These two supply-side elements are generally indicative of an increase in consumer demand,” the report says. “However, there are also many other factors when looking at the average national rental rates, such as competition, climate, labor rates, and the local market of each metropolitan area. “In terms of an outlook for 2016, we should expect the monthly, weekly, and daily rental rates to continue rising slowly throughout the first quarter... In terms of equipment that is insulated from the housing market, such as forklifts, we should see the majority of those rental rates remain steady. As long as the housing market continues to rise and the economy stays strong, we should continue to see rental rates increase. “Historically low energy prices are creating a double-sided effect for heavy equipment rental houses in energyintensive regions. On one-hand, oil exploration and investigation efforts were projected to decline over 2014 and 2015. This trend obviously hurts equipment rentals for rental houses whose customers rely on them to help avoid the capital expenditures necessary for

equipment purchase. On the flip-side, however, many experts have also stated that lower oil prices can have a muted effect on equipment rental volume, since energy extraction does not immediately cease when prices decline. This uncertainty over the impact of changing energy prices will likely restrain major rate changes over the next quarter, especially as the economy approaches the two-year mark since the price of crude oil peaked in June 2014.”

So what’s the vibe? The state of the industry is more than economic indicators and projections for compound annual growth rates. While those indicators and projections remain promising, the sentiment among most rental professionals seems to be one of optimism. According to an informal survey of rental professionals taken by Rental at industry events this winter, the majority report decidedly positive expectations for 2016, suggesting an inherent fortitude and positive outlook among those in the industry, as much as it does a response to economists’ predictions. Most, it seems, attempt to balance their positive outlook with a touch of realistic preparation. “I think the challenge today for many operators is to strike a balance between being overly cautious and yet aggressive enough to take advantage of growth opportunities,” says Ed Bacon, owner of Grand Rental Station in Cornelius, OR. “When looking out toward 2016 and beyond, I have to say I’m cautiously optimistic about the future.” ■

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3/15/16 9:30 AM

SMALL FOOT PRIN T

SERIOUS

CORES COMPACT AERATOR Seriously Small - The most compact unit in the industry! Easily fits through a 28” gate with fold-down handles for compact storage and transport fits in the back of minivan and pickup with ease. Seriously Productive –Self-propelled with the fastest operation speed in the compact aerator category - up to 4.2 mph. Best Quality of the Core® - Five tine wheels produce the tightest hole pattern in the industry - pulling 15% more cores than the nearest competitive model. Seriously Manueverable - Compact unit size and steerable tine shaft increase maneuverability and eases end of row turning. Seriously Simple - Cushion gripped operator handle and easy lift/lower tine engagement bale make operation easy and comfortable. Removable weights reduce unit lift weight and built-in tie-down brackets secure the unit in transport.

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3/15/16 9:30 AM

STATE OF THE INDUSTRY â&#x20AC;˘ STATE OF THE INDUSTRY â&#x20AC;˘ STATE OF THE INDUSTRY By Rod Dickens, contributing editor

2016 Forecast for the US Construction Industry Industry economists share their insights on what lies ahead for general building trends, labor and material costs over the next 12 months

he construction industry saw plenty of opportunity and its share of challenges in 2015. We asked leading industry economists to comment on the market potential for general construction, as well as ongoing trends in labor and material cost inputs likely to affect the cost of building in the months to come. These and other industry authorities will also hone in on the transportation construction sector on page 54, with a specific focus on the effects the industry may see from passage of the first longterm highway bill in nearly a decade.

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BUILDING CONSTRUCTION RENTAL: Construction in both commercial building and single-and multi-family housing continued to gain momentum in 2015. What were the biggest drivers in these markets and do you see the trend continuing in 2016? Anirban Basu, chief economist, Associated Builders and Contractors (ABC): The economy continues to be led by consumer spending growth. That should translate into

ongoing momentum in commercial construction, including fulfillment centers attached to online enterprises. The multifamily boom should last another year given still low apartment vacancy rates in many markets. Condominium construction should also improve. David Crowe, chief economist, Economics and Housing Policy, National Association of Home Builders (NAHB): The housing market is being driven by the improving labor market. Adding jobs is particularly important to young adults on the verge of forming their own households. We have seen household formations pick up substantially beginning in the fourth quarter 2014 and extending into 2015. The uptick has been anticipated since household formations fell well below expected levels and stayed there for more than four years. The slow growth in newly formed,

www.ForConstructionPros.com/RENTAL

3/17/16 10:53 AM

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CONNECT FOR EQUIPMENT *Source: 2014 Cygnus Business Media Research Study. ©2016 LoJack Corporation. All rights reserved. LoJack and the LoJack logo are trademarks or registered trademarks of LoJack Corporation in the United States and other countries. LoJack® Connect for Equipment is powered by Trackunit®. Trackunit® is a registered trademark owned by Trackunit A/S or one of its subsidiaries. Search: 10073715

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3/17/16 10:53 AM

STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY primarily millennial generation households required more apartments to accommodate their arrival. As the expected increase chooses rental over owning, multifamily production remains and will remain above historic trends. Single-family construction, on the other hand, has moved slowly toward its former levels as most new household formations are renting and many existing homeowners are not moving. On the positive front, single-family construction has doubled from its nadir in Spring 2009, but is barely halfway back to a stable level of 1.3 million units per year, the level last achieved in the early 2000s... Most of the trends and forces that have slowed the housing recovery are gradually disappearing. More households are being formed; more jobs are being created; home equity is increasing; and confidence is coming back. The next year looks particularly strong for all these reasons. The pent-up demand for a new home and the arrival of first-time home buyers should push us forward. Housing starts are expected to increase by 136,000 to 1.26 million in 2016, the best year since 2007 and in line with the absolute increases we last experienced in 2012 and 2013. Ed Sullivan, group vice president and chief economist, Portland Cement Association (PCA): We will continue to experience an increase in the multi-family construction market. The recent recession caused home values to crash, lost credit ratings and tighter lending policies. Now, there are more jobs but still not the credit many potential single-family home buyers need. Add to this college graduates with large debt loads and baby boomers looking to downsize and all signs point to a strong multi-family market. I believe we will also see a continued uptick in commercial building construction. Office construction is linked directly to ROI. With employment and spending on the rise along with property values, look for last year’s 10% increase in commercial construction

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to carry over this year. Ken Simonson, chief economist, Associated General Contractors of America (AGC): As of early December, the Census Bureau has issued spending estimates through October. They show that in the first 10 months of 2015, multifamily construction jumped by 25% from the same period a year earlier, while homebuilding climbed 14%. Those growth rates are likely to slow down in 2016 but remain quite healthy, with multifamily increasing another 10% or more and single-family tacking on another 5% to 10%. With 200,000 more workers bring-

student debt continue to prevent many households from meeting stricter lending criteria, especially in terms of debt to income ratios, while others want to maintain a degree of mobility. These factors are increasing the demand for multi-family rental units. Looking ahead, construction spending in 2016 will moderate in the multifamily segment as supply begins to align with demand. Single-family construction is expected to be stronger in 2016 as economic conditions continue to improve, allowing for more households to look into the possibility of buying homes. Housing starts are

“I believe we will also see a continued uptick in commercial building construction. … With employment and spending on the rise along with property values, look for last year’s 10% increase in commercial construction to carry over this year.” ing home paychecks each month, more people can afford to rent, if not own. Millennials still show a preference for living in cities, or their high student debt disqualifies them from taking out mortgages. These factors will continue to support faster growth of multifamily and rental housing than single-family homebuilding. Jeannine Cataldi, IHS: Until recently, the residential market has largely been driven by spending on construction of multifamily units, although single-family construction has been gaining in strength. Drivers of growth in the multifamily market continue to be related to pentup demand from the recession, as well as a new generation of households that seems to be wary of actual home buying and is content to rent. Growing levels of

expected to grow at a stronger pace in 2016 than in 2015. In the commercial segment, growth has been slowing in recent months. The outlook for 2016 calls for spending on commercial construction to continue at a more moderate pace. There is some impact to business from the strong dollar and moderate global growth expectations. In 2016, the strongest growth is expected in the office and warehouse segments, with both being driven by employment, income and consumer confidence gains that benefit from improving economic conditions. Warehouse construction is also being driven by the increasing share of e-commerce retail sales, creating a greater need for distribution centers.

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

EMPLOYMENT RENTAL: Segments of the construction market in 2015 experienced challenges finding both skilled and unskilled workers. Do you expect the labor shortage to continue in 2016? What can the industry do to alleviate any anticipated shortages? AGC: In a survey the AGC released in September 2015, 86% of the 1,358 respondents said their firms were having trouble filling hourly craft and/or salaried positions. Those difficulties seem sure to continue as the backlog of projects remains high and the pool of unemployed, experienced construction workers shrivels to 10- or 15-year lows. Contractors have been teaming more with school districts and community colleges. And the word is slowly spreading that construction pays well and involves working not just with shovels but cool tools like lasers, drones and 3D printers in some cases. PCA: In 2016, there will be 2.5 to 3 million jobs created. The downturn put 2.3 million construction workers out of work and 500,000 of those, mostly Hispanics, never returned to the job market. There will be shortages, primarily in the single-family home construction market. In fact, we project that 75,000 startups won’t occur because of the lack of skilled workers alone. The labor shortages will be regional in nature and some will be offset by finding workers from nearby states where the economy may not be as strong. Still, lack of labor will continue to plague the industry for the next five years. There needs to be a change in sentiment about the value associated with getting an education in the trades, and that unfortunately will take a while. ABC: Construction employment growth remains constrained by a lack of human capital availability. That www.ForConstructionPros.com/RENTAL

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situation will continue in 2016, which among other things will translate into faster wage growth. The dislocation of many workers in the U.S. energy production and distribution sectors helps free up talent, but only in certain parts of the country. NAHB: Builders are reporting difficulty finding qualified workers and this problem is likely to continue into 2016. However, there are a number of efforts underway to address the issue. NAHB research has found that the typical wage rate for residential workers is greater than general wage rates, but that the differential above the general wage rate has fallen. From a basic

economic perspective, wages are and will have to continue to rise to attract new workers. A census report found that only 40% of the construction workers laid off in the collapse returned to the industry. An almost equal share (35%) found a job in another sector. The remaining one-quarter are still unemployed. Attracting and perhaps retaining the unemployed is another source. Homebuilding organizations are also working with local school districts to re-establish vocational training, as well as conducting classes on their own. NAHB’s education arm, the Home Builders’ Institute, is upping its focus on departing military veterans to address two issues at the same time. Kristin Reynolds, IHS: The unemployment rate for the construction and extraction occupations in 2015 has averaged 8.5% through October, a dramatic improvement from a high of more than 20% during the comparable period in 2010. In fact, on a not seasonally adjusted basis, this rate has declined relative to a year ago for 64 straight months (since July 2010). This subsector of the workforce averaged 8.3% unemployment during 2001-2005. In addition, the minimum average unemployment rate for any 12-month period between 2001 and 2015 (excluding the outlier of 2006) is 7.6%, suggesting that the construction and extraction labor market is heading toward full employment as 2016 approaches.

“Builders are reporting difficulty finding qualified workers and this problem is likely to continue into 2016. However, there are a number of efforts underway to address the issue.” MARCH 2016

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY Average hourly earnings for employees of residential building establishments have been rising steadily compared to a year earlier since the beginning of 2012. The production and non-supervisory subset represents about two-thirds of all employees at residential building establishments. Their average hourly earnings continued to expand in 2015, but at a slower pace than the prior two years. Year-to-date through October, supervisory employees saw wage gains more than 2.5 times as fast as non-supervisory employees. Specialty contractors that build the exterior of a building have seen average hourly wages increase across the board through October 2015 after no change in the year-earlier period. Building equipment contractors that do plumbing and electrical work and site preparation contractors have seen consistent hourly wage gains over the past two years. Average hourly wage growth for building finishing (drywall, paint, flooring) and finished carpentry workers has been less consistent.

“In 2016, there may be further modest declines in the prices of steel, copper, aluminum and diesel fuel. Other materials that are more specific to construction may have small to medium price increases.” The relatively slow housing recovery pace has also allowed the supply chain to catch up and keep supply availability relatively stable. Europe, China and developing countries are struggling to come back, so this influence should continue through at least the first half of 2016. AGC: There were huge drops in the cost of petroleum and metals products in 2015. Even gypsum prices edged down after taking their traditional January jump. But concrete and glass had unaccustomed spikes.

RAW MATERIAL COSTS RENTAL: How did last year’s uptick in construction impact the cost of raw materials? Do you see this continuing? NAHB: Construction material prices generally remained calm during 2015, as compared to 2013 and 2014 when the supply industries were struggling to re-open and expand after so many years of near-historic low levels of housing production. Material prices, especially those influenced by commodity prices, have benefited from the slowing international economy, particularly China. While reduced exports are a negative result of the weak international economy, the slow or no growth in foreign demand has helped keep most construction material prices from rising.

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In 2016, there may be further modest declines in the prices of steel, copper, aluminum and diesel fuel. Other materials that are more specific to construction may have small to medium price increases. But materials costs will again be far down the list of contractors’ worries, unlike labor costs and availability. Deni Koenhemsi, IHS: The construction uptick in the U.S. did not impact the cost of most building materials in 2015. Raw materials such as lumber and steel lost their value due to abundant supply and relatively weak global demand.

Although construction activity picked up in the United States, it slowed in emerging market economies such as China, which has been a big consumer of raw commodities. Rising cement prices were an exception to the general trend of lower inflation. This was partly due to production constraints following the Great Recession and varying regional demand for a commodity that is known to be costly to transport. This year, building material prices will begin to slowly rise as demand in the U.S. continues to escalate. However, IHS does not expect a sharp reversal of this low price environment as supply remains healthy and global demand is not expected to rise significantly for most building materials. ABC: Despite the fact that America is well into its seventh year of economic recovery and ongoing expansion of nonresidential and residential construction spending, materials prices have fallen over the past year. Whether in the form of copper, oil, natural gas or steel prices, inputs into construction have become cheaper. Much of this has to do with the fact that key emerging nations are in recession (e.g., Brazil, Russia) and that Chinese growth rates are at multi-decade lows. A number of these emerging nations will continue to struggle economically in 2016. Moreover, a strengthening dollar is helping to keep a firm lid on materials prices. ■ www.ForConstructionPros.com/RENTAL

3/17/16 10:53 AM

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MANUFACTURER PROFILE

A TRUSTED BRAND

contributes to high rentability

John Deere Construction & Forestry Division, a leading producer of heavy and light construction equipment, and the world’s leading manufacturer of forestry equipment, continues to build on its history of innovation and fulfilling its pledge to listen and respond to rental customer needs. John Deere construction equipment is used in numerous types of earthmoving applications, including road building, underground utilities, site development and residential construction; and in material handling, road repair and maintenance. John Deere’s Construction & Forestry Division products are distributed through a network of more than 600 dealer locations worldwide. John Deere embraces selling to Independent Rental Companies and continues to use a holistic approach, aggressively pursuing IRCs large and small, and letting dealers choose rentto-own fleets where the market fits. John

MARCH 2016

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Deere also sells other products into the rental segment, including Gator Utility Vehicles, compact utility tractors, and OEM engines available from other John Deere divisions. Overall, John Deere has a product line that is a great fit for rental needs. A trusted brand contributes to high rentability, and a trained dealer network is ready to support rental stores. Today’s construction equipment rental offerings consist of: • Backhoe Loaders • Compact Track Loaders • Crawler Dozers • Excavators • Skid Steers • Tractor Loaders • Wheel Loaders Just this year John Deere introduced the small frame G-Series skid steers and compact track loader. The new G-Series features four skid steers models: two

radial-lift (312GR, 316GR) and two vertical-lift (314G, 318G); and one vertical lift compact track loader model (317G). Rental industry professionals helped design the new G-series, with four models under 6,500 pounds so they’re easy to transport, easy to operate, easy to service and easy to keep on rent. John Deere now has a full-line of skid steer and compact track loader products.

For more information, please visit: www.JohnDeere.com/RentalSales

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3/17/16 3/15/16 10:53 9:52 AM

SMALL MACHINES.

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Introducing the all-new G-Series Skid Steers and CTL. The G-Series has great pushing power, but that’s nothing compared to how much pull it’s got. A trusted brand with productivity and reliability will keep customers lining up. And with easy-access maintenance points, in-cab boom lock, and no-hassle footwell cleanout, getting them ready for the next rental will be no problem either. Whether you choose radial- or vertical-lift models, the G-Series won’t sit long in your shop or on your lot. Buy it. Rent it. Sell it. Count your cash. Repeat.

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CHOOSE YOUR DEAL ON NEW JOHN DEERE COMMERCIAL WORKSITE PRODUCTS UP TO

*Offer valid at participating dealers only. Offer valid starting 1 March 2016 until 30 June 2016. Subject to approved installment credit with John Deere Financial. Offer includes new John Deere skid steers, compact track loaders, compact excavators, and compact wheel loaders. Some restrictions apply. Other offers available. See your local John Deere dealer for complete details and other fnancing options. For commercial use only. **In lieu of fnancing, receive savings up to $2,800 on new John Deere skid steers, up to $3,500 on new John Deere compact track loaders, up to $3,375 on new John Deere compact excavators, and up to $4,650 on new John Deere compact wheel loaders. Offer valid starting 1 March 2016, and ends 30 June 2016. ***Purchase new John Deere skid steers and compact track loaders, compact excavators, and compact wheel loaders from John Deere or authorized John Deere dealers between March 1, 2016 and October 31, 2016 and in addition to the Standard 12-month/unlimited-hour Warranty, you receive a powertrain plus hydraulics warranty, for 2 years/2,000 hours. The powertrain plus hydraulics warranty expires two years after the delivery receipt date or after 2,000 machine hours, whichever occurs frst. Offer valid at participating dealers only. Some restrictions may apply. Other offers may be available. See your local John Deere dealer for complete details.

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY By Rod Dickens, contributing editor

Road Building Today Leading economists share their insights on the future of the transportation sector

n part 2 of our state of the construction industry report, we asked leading industry economists to comment on the market potential for the transportation sector, with a specific focus on the effects the industry might see from passage of the first long-term highway bill in nearly a decade. Following are their insights on the impacts of the five-year funding authorization.

RENTAL: Do you foresee a healthy highway construction market in 2016 and how might it compare to 2015? Ken Simonson, chief economist, Associated General Contractors of America (AGC): With the enactment, at last, of a

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long-term federal highway funding bill that contains additional revenue, there should be a modest uptick in highway construction spending in 2016. In addition, the list of states that have increased their gas taxes or other highway funding mechanisms keeps growing. Many of these provisions will have contributed enough to state coffers to allow a further increase in contract awards in 2016. Jeannine Cataldi, IHS: Spending on highway and bridge construction strengthened in 2015. Growth in this market will remain healthy in 2016 as revenues at the state and local level continue to benefit from increased job and wage growth. The residential market will provide an additional lift to this segment with an increasing number of housing starts creating a need for the upgrade of existing roads, as well

as construction of new roads for new housing developments. The recent passage of the Fixing America’s Surface Transportation (FAST) Act has removed a measure of uncertainty for the highway/streets construction market. The five-year bill will allow for long-term planning, which was difficult under the multiple shortterm extensions of the last decade. The five-year authorization is likely to lead to stronger growth of highway/street construction over the coming years. Anirban Basu, chief economist, Associated Builders and Contractors (ABC): I see additional progress ahead. Much of this relates to healthier state and local government budgets, which have helped to increase the level of investment in roads, bridges and highways generally. The new speaker of the U.S. House of Representatives

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3/17/16 10:53 AM

“The Carryall® utility vehicles are holding up much better than other utility vehicles we’ve tried. We keep them rented all the time, and have very few problems. If we do have an issue, we call a Club Car technician directly from the job site and get excellent support. And the aluminum frame is strong yet light, so we can deliver more vehicles at a time.” — Joe Alonzo, R.G. Rents St. Louis, MO

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Many utility vehicles sold into the rental market are built for recreational use. Not rental-ready Club Car Carryall® utility vehicles. These rugged rides are purpose built for rough worksites and ease of maintenance. Choose the four-passenger Carryall 1700 utility vehicle with an extended bed, or the two-passenger Carryall 1500 utility vehicle. Both feature the IntelliTrak™ automatic all-wheel-drive system that senses the ground it’s on and shifts automatically. This simplifies driver’s training, maintenance and cuts downtime.

Available with commercial-grade diesel or gasoline engines, they have a total vehicle capacity of up to 1,750 lb. (793.8 kg.) And their aluminum frames stop rust in its tracks. . CARRIES THE LOAD WITHOUT SAGGING

A four-link semi-independent rear suspension system combines independent suspension performance with solid-axle strength. The vehicles maintain their axle ground clearance while delivering a comfortable ride, even when fully loaded on rocky terrain. The suspension systems on competitive vehicles tend to sag when fully loaded. THE ONLY DEDICATED RENTAL SUPPORT TEAM

The vehicles are backed by the industry’s only dedicated rental support team. Working one-on-one with customers, they speed training, service and parts deliveries. The team also operates regional and on-site training for mechanics, troubleshoots issues with clients, and serves as a single point of contact, all at no charge. To learn more, visit clubcarinfo.com/rentals or call (706) 955- 0252 to speak direclty with a Club Car representative.

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STATE OF THE INDUSTRY • STATE OF THE INDUSTRY • STATE OF THE INDUSTRY

STATE OF THE CONSTRUCTION INDUSTRY will help secure a more stable future for the federal Highway Trust Fund, which should also induce more heads of state departments of transportation to move projects along. Dr. Alison Premo Black, senior vice president and chief economist, American Road and Tr a n s p o r t a t i o n A s s o c i a t i o n (ARTBA): The multi-year federal transportation bill will provide much-needed stability for the highway, bridge and transit markets after a decade of shortterm extensions. The modest increase in federal highway and bridge investment in 2016 will help the program keep pace with changes in inflation, materials and project costs. Federal funding accounts for an average of 52% of state department of transportation capital outlays for highway and bridge improvements. The highway and bridge construction market is expected to be uneven across the country, with programs growing in 23 states and Washington, D.C., and remaining flat in nine states. A number of states have increased their own funding in the last few years, including 15 that have raised their own gas taxes for transportation investment since 2013. Overall, states approved 30 legislative measures in 2015 to increase investment, while voters approved 68% of the ballot measures for transportation funding. Outside of construct i on , st ate and l o c a l governments are expected to spend an additional $42 billion for maintenance work, $14.8 billion for in-house and consultant planning and design services and $7.8 billion for right-of-way purchases as part of their highway and bridge programs.

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Our project cost index indicated overall increases in project costs in 2015 were below historical averages, but I would expect to see increases in the range of 2% to 3% this year as work and demand for material and labor increase in transportation and general construction. Three percent is the historical average. Ed Sullivan, group vice president and chief economist, Portland Cement Association ( P C A ) : Hi g hw ay c on s t r u c t i on improved last year in large part because

of state and local funding. In 2016, the new highway bill will have a positive effect, and we project a 4% increase in highway construction. But the bill is not a game changer. Congress won’t touch the gas tax, hence $70 billion dollars will come out of the general fund over the five-year program, which makes it very susceptible to any economic blip. Furthermore, it is projected that 20 years from now, there will be another 40 million drivers on our highways. The industry still needs a long-term fix. ■

“The highway and bridge construction market is expected to be uneven across the country, with programs growing in 23 states and Washington, D.C., and remaining flat in nine states.”

www.ForConstructionPros.com/RENTAL

3/17/16 10:53 AM

MANUFACTURER PROFILE

WORLDWIDE TECHNOLOGY AND QUALITY LEADER

IN WALK-BEHIND COMPACTION EQUIPMENT (vibrating plates, reversible soil compactors, tampers)

At Weber MT, we focus on our own strengths and only manufactures products within our own field of competence. We aim to be the number one choice within premium markets by offering top-quality products and superior performance. Weber MT takes on responsibility: Everything we sell is produced by us, and everything we produce is designed and developed by us. We do not fulfill standardized norms, we fulfill demands: highest quality standards of all products. Our investment in Research and Development is above average. In order to maintain high product standards, we are uncompromising when it comes to quality control: Every single machine is put to a final quality assurance test. Since customer service quality is just as important to us as the quality of our machines, we make sure all requests and inquiries are taken care of and handled immediately by trained professionals.

The perfect rental solution.

Lightweight but strong. (800) 709-3237 | www.webermt.com

When it comes to rental, quality is a must. Weber MT is devoted to crea�ng soil compac�on equipment you can rely on that will maximize your ROI. www.webermt.us 1‐800‐709‐3237 Search: 10075199

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MARCH 2016

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MANUFACTURER PROFILE

KOBELCO EXCAVATORS ARE

BUILT LIKE NO OTHER Every job comes with its own set of challenges – everything from solid rock to tight spaces. That’s why your rental customer needs a KOBELCO that’s ready to take on the task at hand. KOBELCO builds excavators with features you won’t find anywhere else. Features that power through the toughest jobs, get more done in less time, balance performance with efficiency and stay safe.

MINI-EXCAVATORS KOBELCO mini excavators pack full-size performance into a portable package. A minimal rear swing radius with zero tail overhang allows for excellent handling in confined spaces while a simple design makes routine maintenance easy to undertake. KOBELCO minis are ideal for small landscape and construction jobs, as well as utility work.

SHORT REAR SWING (SR) EXCAVATORS It only makes sense that the company that invented SR excavators would stay ahead of the competition. This series incorporates KOBELCO’s exclusive iNDr Cooling System, which reduces dust while delivering ultra-quiet operation, as well as NEXT-3E technology allowing you to dial in the perfect balance of performance and fuel economy. SR models are popular in applications where working ranges are limited such as in cities, where traffic needs to flow, or in residential or commercial applications where noise may become an issue.

CONVENTIONAL EXCAVATORS KOBELCO conventional excavators are anything but conventional. These models are engineered for maximum performance capacity and improved cost efficiency to deliver dependable power, wide-range digging strength and reduced fuel consumption. Operators are welcomed into big cab visibility and comfort, while owners welcome high quality construction and low cost maintenance. These excavators are found on jobsites ranging from general earthmoving applications to specialty work requiring full sized, powerful equipment with quick cycle times.

For more information on KOBELCO Construction Machinery USA or KOBELCO products, please visit www.KOBELCO-USA.com or call 281-888-8430.

MARCH 2016

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When NO!...is a good thing. Skyjack has consistently approached the issue of emission compliance with the knowledge that rental rates donâ&#x20AC;&#x2122;t just go up with emissions standards cost increases. The all new Skyjack TH range is engineered to require NO diesel particulate filter (DPF), NO diesel exhaust fluid (DEF), NO additional engine and exhaust sensors, NO complicated engine programming and computer logic, NO selective catalytic reduction (SCR) and NO other active exhaust after treatment on standard engines for Tier IV Final. Simple, Serviceable, Reliableâ&#x20AC;Ś.Skyjack

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CONSTRUCTION SUPPORT EQUIPMENT

What Your Rental Staff Needs to Understand About Soil Compaction to Best Serve Your Customers

Understanding soil types, how they’re compacted and which machine is right for the job will help your staff be better solutions providers

Editor’s Note: When planning editorial for Rental, we inevitably revisit many topics, and after years of doing this, it’s easy to adopt a tendency toward thinking everyone already knows this stuff. But while attending the Northwest Regional Rental Conference in Seattle last fall, we were reminded that going over the basics never gets old. Evidence of this fact was seen in the seminar program, when dozens of rental professionals packed a conference room to learn about “Basic Compaction Principles.” Soil compaction can be pretty scientific, and being knowledgeable about it can help you to help your customers. So with that in mind, we bring you a synopsis of that seminar.

oil compaction is defined as the method of mechanically increasing the density of soil. In construction, this is a significant part of the building process. If performed improperly, settlement of the soil could occur and result in unnecessary maintenance costs or structure failure. Almost all types of building sites and construction projects utilize mechanical compaction techniques. These different types of effort are found in the two principle types of compaction force: static and vibratory. Static force is simply the deadweight of the machine, applying downward force on the soil surface, compressing

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the soil particles. The only way to change the effective compaction force is by adding or subtracting the weight of the machine. Static compaction is confined to upper soil layers and is limited to any appreciable depth. Kneading and pressure are two examples of static compaction. Vibratory force uses a mechanism, usually engine-driven, to create a downward force in addition to the machine’s static weight. The vibrating mechanism is usually a rotating eccentric weight or piston/spring combination (in rammers). The compactors deliver a rapid sequence of blows (impacts) to the surface, thereby affecting the top layers as

well as deeper layers. Vibration moves through the material, setting particles in motion and moving them closer together for the highest density possible. Based on the materials being compacted, a certain amount of force must be used to overcome the cohesive nature of particular particles.

Soil types and conditions Every soil type behaves differently with respect to maximum density and optimum moisture. Therefore, each soil type has its own unique requirements and controls both in the field and for testing purposes. Soil types are commonly classified by grain size, determined by passing the soil through a series of sieves to screen or separate the different grain sizes. Soil classification is categorized into 15 groups, a system set up by AASHTO (American Association of State Highway and Transportation Officials). Soils found

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3/17/16 7:42 AM

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CONSTRUCTION SUPPORT EQUIPMENT

in nature are almost always a combination of soil types. A well-graded soil consists of a wide range of particle sizes with the smaller particles filling voids between larger particles. The result is a dense structure that lends itself well to compaction. A soil’s makeup determines the best compaction method to use. There are three basic soil groups: • Cohesive • Granular • Organic (this soil is not suitable for compaction and will not be discussed here) Cohesive soils have the smallest

particles. Clay has a particle size range of .00004” to .002”. Silt ranges from .0002” to .003”. Clay is used in embankment fills and retaining pond beds. Cohesive soils are dense and tightly bound together by molecular attraction. They are plastic when wet and can be molded, but become very hard when dry. Proper water content, evenly distributed, is critical for proper compaction. Cohesive soils usually require a force such as impact or pressure. Silt has a noticeably lower cohesion than clay. However, silt is still heavily reliant on water content.

Granular soils range in particle size from .003” to .08” (sand) and .08” to 1.0” (fine to medium gravel). Granular soils are known for their water-draining properties. Sand and gravel obtain maximum density in either a fully dry or saturated state. Testing curves are relatively flat so density can be obtained regardless of water content. The tables on the following pages give a basic indication of soils used in particular construction applications. The response of soil to moisture is very important, as the soil must carry the load year-round. Rain, for

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MARCH 2016

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example, may transform soil into a plastic state or even into a liquid. Moisture content of the soil is vital to proper compaction. Moisture acts as a lubricant within soil, sliding the particles together. Too little moisture means inadequate compaction—the particles cannot move past each other to achieve density. Too much moisture leaves water-filled voids and subsequently weakens the load-bearing ability. The highest density for most soils is at a certain water content for a given compaction effort. The drier the soil, the more resistant it is to compaction. In a

water-saturated state the voids between particles are partially filled with water, creating an apparent cohesion that binds them together. This cohesion increases as the particle size decreases (as in clay-type soils).

Achieving the right level of compaction The desired level of compaction is best achieved by matching the soil type with its proper compaction method. Other factors must be considered as well, such as compaction specs and jobsite conditions.

• Cohesive soils—clay is cohesive; its particles stick together. Therefore, a machine with a high impact force is required to ram the soil and force the air out, arranging the particles. A rammer is the best choice, or a pad-foot vibratory roller if higher production is needed. • Granular soils—since granular soils are not cohesive and the particles require a shaking or vibratory action to move them, vibratory plates (forward travel) are the best choice. Reversible

MANUFACTURER PROFILE

ICS, PIONEER OF DIAMOND CHAIN TECHNOLOGY™, PROUDLY OFFERS SAWS AND CHAINS DESIGNED SPECIFICALLY FOR THE RENTAL MARKET The 695XL and 680ES are both powerful, user-friendly and rental-reliable gas-powered saws. Perfect for everyday general construction and compatible with ICS exclusive RentMAX™ chain. Developed specifically for rental use, RentMAX is durable enough for tough rental applications with a price that allows rental operators to sell the chain and rent the saw, offering great ROI. Rentmax contains patented SealPro® anti-stretch technology that seals out the abrasive materials that would otherwise lead to frequent chain tensioning and premature wear. ICS introduced the world’s first concrete chain saw in 1992 and sells a full line of saws, diamond chains, and related products.

For more information on ICS or its products, call 800.321.1240 or visit www.icsdiamondtools.com. Search: xxxxxx www.ForConstructionPros.com/RENTAL

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CONSTRUCTION SUPPORT EQUIPMENT plates and smooth drum vibratory rollers are appropriate for production work. Granular soil particles respond to different frequencies (vibrations) depending on particle size. The smaller the particle, the higher the frequency necessary to move it. As you compact soils with larger particles, move up to larger equipment to obtain lower frequencies and higher compaction forces. Normally, soils are mixtures of clay and granular materials, making the selection of compaction equipment more difficult. It is a good idea to choose the machine appropriate for the larger percentage of the mixture. Equipment testing may be required to match the results of best machine to the job. Asphalt is considered granular due to its base of mixed aggregate sizes (crushed stone, gravel, sand and fines) mixed with bitumen binder (asphalt cement). Consequently, asphalt mu s t b e c omp a c t e d with pressure (static) or vibration. Tw o f a c t o r s a r e important in determining the type of force a compaction machine produces: frequency and amplitude. Fre qu e n c y i s t h e speed at which an eccentric shaft rotates or the machine jumps. Each compaction machine is designed to operate at an optimum frequency to supply the maximum force. Frequency is usually given in terms of vibrations per minute (vpm). Amplitude (or nominal amplitude) is the maximum movement of a vibrating body from its axis in one direction.

Double amplitude is the maximum distance a vibrating body moves in both directions from its axis. The apparent amplitude varies for each machine under different job site conditions. The apparent amplitude increases as the material becomes more dense and compacted. Lift height (depth of the soil layer) is an important factor that affects machine performance and compaction cost. Vibratory and rammer-type equipment compact soil in the same direction: from top to bottom and bottom to top. As the machine hits the soil, the impact travels to the hard surface below and then returns upward. This sets all particles in motion and compaction takes place.

Soil can also be over-compacted if the compactor makes too many passes (a pass is the machine going across a lift in one direction). Over-compaction is like constantly hitting concrete with a sledgehammer. Cracks will eventually appear, reducing density. This is a waste of man-hours and adds unnecessary wear to the machine.

What type of equipment is used for which type of soil? Rammers deliver a high impact force (high amplitude) making them an excellent choice for cohesive and semicohesive soils. Frequency range is 500 to 750 blows per minute. Rammers get compaction force from a small gasoline

poor compaction RESULTS OF POOR COMPACTION

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As the soil becomes compacted, the impact has a shorter distance to travel. More force returns to the machine, making it lift off the ground higher in its stroke cycle. If the lift is too deep, the machine will take longer to compact the soil and a layer within the lift will not be compacted.

or diesel engine powering a large piston set with two sets of springs. The rammer is inclined at a forward angle to allow forward travel as the machine jumps. Rammers cover three types of compaction: impact, vibration and kneading. Vibratory plates are low amplitude

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and high frequency, designed to compact granular soils and asphalt. Gasoline or diesel engines drive one or two eccentric weights at a high speed to develop compaction force. The resulting vibrations cause forward motion. The engine and handle are vibrationisolated from the vibrating plate. The heavier the plate, the more compaction force it generates. Frequency range is usually 2500 vpm to 6000 vpm. Plates used for asphalt have a water tank and sprinkler system to prevent asphalt from sticking to the bottom of the baseplate. Vibration is the one principal compaction effect. In a d d it i on to some of the standard vibratory plate features, reversible plates have two eccentric weights that allow smooth transition for forward or reverse travel, plus increased c omp a c t i on forc e as the result of dual weights. Due to their weig ht and force, reversible plates are ideal for semi-cohesive soils. A reversible is possibly the best compaction buy dollar for dollar. Unlike standard plates, the reversible’s forward travel may be stopped and the machine will maintain its force for “spot” compaction. Rollers are available in several categories: walk-behind and ride-on, which are available as smooth drum, padded drum and rubber-tired models; and are further divided into static and vibratory sub-categories. A popular design for many years, smooth-drum machines are ideal for both soil and asphalt. Dual steel drums are mounted on a rigid frame and powered by gasoline or diesel engines. Steering is done by manually

turning the machine handle. Frequency is around 4,000 vpm and amplitudes range from .018 to .020. Vibration is provided by eccentric shafts placed in the drums or mounted on the frame. Padded rollers are also known as trench rollers due to their effective use in trenches and excavations. These machines feature hydraulic or hydrostatic steering and operation. Powered by diesel engines, trench rollers are built to withstand the rigors of confined compaction. Trench rollers are either skid-steer or equipped with articulated steering. Operation can be by manual

Suitable for soil, sub-base and asphalt compaction, tandem rollers use the dynamic force of eccentric vibrator assemblies for high production work. Single-drum machines feature a single vibrating drum with pneumatic drive wheels. The drum is available as smooth for sub-base or rock fill, or padded for soil compaction. Additionally, a ride-on version of the pad foot trench roller is available for very high productivity in confined areas, with either manual or remote control operation. Rubber-tired rollers are equipped with 7 to 11 pneumatic tires with the

SOIL DENSITY

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or remote control. Large eccentric units provide high impact force and high amplitude (for rollers) that are appropriate for cohesive soils. The drum pads provide a kneading action on soil. Use these machines for high productivity. Configured as static steel-wheel rollers, ride-ons are used primarily for asphalt surface sealing and finishing work in the larger (8 to 15 ton) range. Small ride-on units are used for patch jobs with thin lifts. The trend is toward vibratory rollers. Tandem vibratory rollers are usually found with drum widths of 30” up to 110”, with the most common being 48.”

front and rear tires overlapping. A static roller by nature, compaction force is altered by the addition or removal of weight added as ballast in the form of water or sand. Weight ranges vary from 10 to 35 tons. The compaction effort is pressure and kneading, primarily with asphalt finish rolling. Tire pressures on some machines can be decreased while rolling to adjust ground contact pressure for different job conditions. ■ Information for this article was provided by Stevan Garcia, compaction product manager at Multiquip.

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MANUFACTURER PROFILE

EXCEPTIONAL CAPABILITIES

IN A HEAVY-DUTY BUT LIGHTWEIGHT DESIGN Custom Equipment engineers and manufactures all-purpose Hy-Brid Lifts brand of scissor lifts in electric and push-around models. The all-purpose lifts offer exceptional capabilities in a heavy-duty but lightweight design, are easy to maneuver and reach working heights up to 20 feet. Some of the unique features are lightweight design, higher lifting capacities, lower entry heights, longer duty cycles, counter rotating wheels, and more. Contractors and maintenance technicians can use them from start to finish for a wide range of applications in industries as diverse as construction, drywall, electrical, HVAC, industrial manufacturing, painting and plumbing.

Push Around Series Hy-Brid Lifts also offers a line of push around lifts with working heights

up to 16ft and platform capacities up to 550lb. These units are designed to be a replacement for ladders and scaffolding.

Self-Propelled Series The Hy-Brid Lifts HB-1030 weighs only 1273lb while having a platform capacity of 750lb and HB-1430 scissor lift weighs 1,645lb and offers a platform capacity of 670 lb. With working heights up to 20ft, high lifting capacities, 30” platform extensions, full-swing gates, and longer duty cycles these machines will cover most construction site needs. The Hy-Brid HB-1230 scissor lift weighs approximately 1,610 lbs, while having a platform capacity of 550lb and working heights up to 18 ft. This innovative unit features zero turn radius, proportional drive and lift controls, and AGM batteries. The overall length of the HB-1230 is 56” and comes with a 30” deck extension which allows for increased platform work area (over 7ft). The HB-1230’s scissor stack design provides for better stability and is intended to compete with mast style lifts.

For more information: www.hybridlifts.com P (262) 644-1300 | F (262) 644-1320 | sales@customequipmentlifts.com

MARCH 2016

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P R O D U CT IV IT Y D O E SN ’T

HA VE TO BE CO M PL ICA TE D

Compact and nimble Hy-Brid Lifts are designed to help you move quickly from one project to the next. With lifting capacities up to 750 pounds and 30-inch slide out deck extensions users have more room, can load more supplies and get more done. The industry leading low floor loading pressures allow them to access green concrete weeks before heavier

IT’S NOT COMPLICATED.

lifts, and the non-marking wheels wont cause damage to finished floors so they can be on the job from start to finish.

FOR MORE INFORMATION CONTACT US TODAY 262-644-1300 // WWW.HYBRIDLIFTS.COM

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ROUNDUP | COMPACTION

JCB Light Compaction Equipment The Light Compaction product line includes rammers, a singledrum roller and forward and reversible plate compactors. • VMF forward plates include Honda engines (Hatz Diesel on VMF 130D) and a wear-resistant, high-grade cast tamping plate • Hydrostatically operated VMP reversible plates include a single forward/reverse control lever, isolated guide bars and a wear-resistant, highgrade cast damping plate • VMR Rammers feature a special damping plate material that acts as a shock absorber

Toro Plate Compactors Toro’s new plate compactors are designed with a patented base geometry and optimal eccentric placement, amplitude and VPMs. New reversible plate compactors offer a centrifugal force range from 4,950 to 14,160 lbs. and feature hydraulic travel control with a safety valve to offer overload protection. • Patented offset eccentric sheave eliminates belt stress • One-piece base plate includes a large oil reservoir that dissipates internal heat • Patented sprinkler dispenses a sheet of water across the base to prevent asphalt sticking and reduce dust Search: 10879925

Bomag Vibratory Tampers The BT60, BT65 and BVT65 weigh from 128 to 150 lbs., deliver 3,372 to 3,822 lbs. of impact force and have operating widths from 9 to 11 in. • Four interchangeable shoe sizes (6, 9, 11 and 13 in.) available, along with optional 15-in.-tall tamper shoe extensions • Four-cycle Honda engine with recoil starter • 66-fpm maximum travel speed • F eature a low oil alert system, easy access fuel and engine shutdown switch and splash oil lubrication

• VMS Series Single Drum Roller suited for small asphalt reinstatement and ground care applications

• H igh-strength polyethylene tamping shoe with steel wear plate

Search: 10082578

• Corrosion-free plastic fuel tank • Vibration-isolated, height-adjustable steering handle Search: 11314666

Multiquip AR14H Tandem Roller The AR14H tandem roller produces 3,400 lbs. of centrifugal force from an eccentric housed within a 35.6-in. drum. • Honda GX630 engine with 9.5-gal. fuel tank • Pressurized 35-gal. water tank standard • Compact design with high curb clearance and clear line of sight visibility for better steering

Atlas Copco LT5005 and LT6005 Rammers The LT5005 and LT6005 feature ultraslim bodies (6 and 9 in. wide) suitable for getting closer to structures and through narrow spaces. • Honda GXR120 engine with an overhead camshaft and timing belt that operate with minimal noise • Include an oil alert LED indicator and throttle control • Rubber isolator on each side of the handle absorbs vibrations • Improved seal on fuel tank prevents fluids from leaking during lifting and transport • Single lifting point Search: 12044065

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• Easy to use and access throttle, vibration, water pump and water flow controls • Engine compartment places all filters, oil fills, fluid drains and hydraulic hoses within easy access • No greasing required for the articulation joint or vibratory assembly Search: 12034732

APT Full Range of Light Compaction Equipment Forward soil plates range in weight from 128 to 208.4 lbs., are powered by Honda engines and feature specially shaped bottom plates, stowable vibration-reduced handles and wheels for easy mobility. • Reversible plates range from 355 to 1,719.6 lbs., and offer a high-speed, balanced design with a hydraulic control system • 145.5- to 187.4-lb. rammers feature electrical shut-off and throttle control with three fixed positions, and are built with a robust steel frame and efficient shock absorbers • 3,695-lb., Bluetooth radio-controlled WR85-33 trench roller has an an 18-in. drum width and is powered by a Hatz diesel engine Search: 12055122

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Weber VPR 700 Paver Roller

Chicago Pneumatic MS595 and MS695 Tampers

Weber MT has introduced the VPR 700 paver roller for compacting large slabs and pavers in a gentle manner.

These rammers feature a sleek, slim build that allows operation closer to obstacles and in confined spaces.

• Efficient operation even in cramped spaces - increases labor savings • Prevents shifting, cracking and chipping Search: 12157284

• 6-in. foot size version on the MS595 joins 9- and 11-in. models • 3.6-hp Honda GX R120 four-stroke engine is tailor-made for tampers • LED indicator warns if oil level is low Search: 12093281

Sakai SA33L-2 Trench Roller The 24.6-hp SA33L-2 trench roller offers a tight turn radius that cuts in half the time spent on manholes. • Standard infrared remote control system • Standard split-style drums enable easy 24- to 33-in. conversion • 19,460 lbs. of centrifugal force, a vibration frequency of 1,950 vpm and amplitude of .083 in. Search: 12146273

Wacker Neuson BS70-4As Rammer The 177-lb. BS70-4As is powered by a 3.6-hp Honda GXR120, four-cycle, multiposition designed to withstand rugged rammer applications. • Produces a percussion rate of 678 bpm with a stroke height at the ramming shoe of 2.9 in. • Low oil shut down • Compensation carburetor maintains the optimum air to fuel ratio • Purge bulb carburetor prevents engine flooding and reduces the pulls required for starting Search: 12173737

Search: 10073191 www.ForConstructionPros.com/RENTAL

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MANUFACTURER PROFILE

BKT Tires, Inc. is the U.S. heavy construction and mining tire sales and service subsidiary of Balkrishna Industries Ltd, a leading specialty tire manufacturer headquartered in India. The company’s product lineup includes the LIFT STAR, a 16-ply tubeless bias tire in the 400/75-28 size. The LIFT STAR provides tremendous stability for machine operators working in construction operations and other severe applications; it fits on a bigger rim and, therefore, has a shorter, stiffer sidewall, which greatly aids stability. In addition, our lineup of EARTHMAX all steel radial tires includes loader, ADT, rigid haul truck and motor grader tires ideal for construction, quarry and mining operations. You may also be interested in our technical papers providing advice to heavy equipment operators on improving safety and profitability. Use the link below to download our paper on mismatched tires to learn: • Situations that can result in mismatched tires. • Consequences of mismatched tires. • How to avoid the cost of mismatched tires. BKT’s innovative solutions and services are designed to meet the most demanding of customer needs and include more than 2,300 products sold in over 130 countries worldwide.

Learn more about the BKT LIFT STAR for Telehandlers: http://hubs.ly/H021HxS0

Please visit www.bkt-tires.com to learn more. Or contact Siri Speegle at 844-258-8473 or siri.speegle@bkt-tires.com.

BKT TIRES TECHNICAL PAPER ON MISMATCHED TIRES Download our technical paper to learn:

• Situations that can result in mismatched tires. • Consequences of mismatched tires. • How to avoid the cost of mismatched tires.

MARCH 2016

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bkt-tires.com

PERFORMANCE, VALUE AND TECHNOLOGY ARE JUST A FEW OF THE THINGS WE DELIVER.

LIFT STAR LIFT STAR bias telehandler tire, ideal for construction and other severe operations • Low profile sidewall for high-lift stability • Sidewall rib for cut protection • Minimal soil compaction • Versatile non-directional tread

LEARN MORE ABOUT

LIFT STAR

FOR TELEHANDLERS hubs.ly/H021HzVo

BKT Tires, Inc.

12 Cadillac Drive, Suite 240 Brentwood, Tennessee 37027, USA Toll Free: (+1) 844 258 8473 Fax: (+1) 888 290 1804

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Search: 12115151

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ROUNDUP | PUMPS

Xylem Flygt BIBO Submersible Dewatering Pump Flygt BIBO 2830, 2840, 2860 and 2870 submersible dewatering pumps feature the DuraSpin hydraulic system for wear resistance in the toughest dewatering environments. • Plug-in seal

Tsurumi TPG4 Portable Generators

• Single impeller-adjustment screw • Handle flows up to 1,600 gpm, heads up to 300 ft. and solids up to 12mm in diameter

The TPG4 series of portable, industrialgrade generators range in size from 3,000 to 7,000 watts.

• Available with power ranges from 5.9 to 27 hp Search: 10920334

• Powered by 5.5- to 13-hp Honda engines that meet all EPA evaporative emission regulations and OSHA standards

Thompson Compact Series 6JSCEN Pump The compact series 6-in. 6JSCEN solids-handling portable pump is designed for high flows and applications requiring high pressure, easy mobility and accessibility in limited space.

• Low-level oil alert system • Automatic idle control

• Flow rates up to 2,700 gpm

• Large fuel tanks (4.2 to 6.6 gal.)

• Heads to 195 ft.

Search: 10931380

• Same features as the JSC Series pumps but smaller, more compact size, lighter weight and fewer parts • Solids handling to 3 in. Search: 11290674

Kohler TP4.0D Water Pump The TP4.0D water pump delivers a 450-gpm pumping speed and incorporates a long-life volute made of robust cast iron. • 4-in. suction diameter and discharge • 50-ft. total head • 360° roll cage design • 349cc Command PRO diesel engine • Oil Sentry automatically shuts engine down in low-oil conditions Search: 11299255

Atlas Copco WEDA Submersible Pumps

Gorman-Rupp PAH16A60-C-B-C18 The PAH16A60-C-B-C18 is a heavy-duty, priming-assisted pump ideal for mining, quarries, bypass pumping and other installations where high flow rates are a necessity.

WEDA electric submersible pump models are available in 50- and 60-Hz versions, are 1 hp or less and have voltage variants of 115V and 230V.

•

Flows to 15,000 gpm

•

TDH up to 204 ft.

•

• WEDA 04 and WEDA 08 single-phase dewatering pumps with polyurethane semi-vortex impellers offer maximum flow rate capacities of 66 to 86 gpm and maximum heads of 37 to 50 ft.

Handles 4-in. solids

• 1 8- by 16-in. pump is driven by a 755hp, Interim Tier IV, Caterpillar C18 twinturbocharged, charge air-cooled diesel engine power unit

• WEDA 04B residual pump draws water down to 0.04 in. and features a built-in non-return valve, rubbercoated bottom and a 2-in. outlet

Search: 12038215

• WEDA 04S and WEDA 08S sludge/ trash pumps include a vortex cast iron impeller and can handle particles and debris up to a 1-in. diameter

Tsurumi’s model HS2.4S-62 is specially designed to handle aggressive dirty water pumping projects often found in rental/construction dewatering applications.

• Feature a small, lightweight, highefficiency motor with thermal protection, triple-shaft seal design and 33-ft. cord

• Designed to pump sand, solids and debris with minimal wear and clogging

Search: 11291382

Tsurumi Model HS2.4S-62

• Pumps a maximum of 50 gallons per minute • All Tsurumi electric submersible pumps are built for continuous duty with 100% copper motor windings Search: 12038203

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MANUFACTURER PROFILE

BUILT WITH THE

DURABILITY & SAFETY ITS CUSTOMERS DEMAND

CASE Construction Equipment, established in 1842, has spent nearly 175 years manufacturing light and heavy equipment, including some of the most popular products for the rental market today: backhoe loaders, skid steers, compact track loaders, excavators, wheel loaders, compactors, dozers and rough-terrain forklifts. The company has navigated an evolving equipment landscape that has seen a change in how equipment is bought and utilized, and the entire line of equipment was redesigned to most efficiently meet emissions regulations. Throughout this shift, CASE dedicated itself to engineering beyond emissions requirements to deliver more productive, practical and intuitive solutions. As a result, today’s CASE equipment delivers improved productivity, excellent fuel efficiency, strong yet smooth

hydraulic power, as well as intuitive and comfortable operating environments that shorten the learning curve and help operators be as productive as possible. CASE Tier 4 Final engine solutions require little or no additional maintenance. Every CASE machine is backed by more than 350 North American dealer locations, thousands of OEM, remanufactured and Gold Value™ parts, as well as flexible financing and insurance options. CASE ProCare and FleetCare1 further allow rental businesses to grow their equipment fleet with the peace of mind that one of the world’s largest equipment manufacturers is there for support. A recent example of CASE’s commitment to the rental market and its philosophy on designing practical and intuitive equipment: the CASE 580N EP backhoe loader. The 580N EP (Efficient 1

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Power) features CASE’s particulate matter catalyst, a Tier 4 Final solution that requires no fluids and no diesel particulate filter (DPF) maintenance. At 74 horsepower – and with a backhoe bucket breakout force of 11,517 pounds, backhoe lift capacity of 2,858 pounds, and peak torque of 233 foot-pounds – the 580N EP provides ample power and performance while still keeping fuel, maintenance, and owning and operating costs low.

For more information on CASE, visit CaseCE.com, and to see our latest news for the rental industry, visit CaseCE.com/Rental.

ProCare available on CASE heavy equipment lines for qualifying rental businesses, while FleetCare is available for larger national accounts.

MARCH 2016

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PROFESSIONAL PERSPECTIVE B y J e n ny L e s c o h i e r, e d i t o r

CRA Executive Director Dale Blackwell Talks About the

GROWTH OF THE INDUSTRY’S BIGGEST REGIONAL TRADESHOW

Dale Blackwell

A renewed interest in networking and cooperation with fellow organizations are contributing to the growth of the California Rental Association’s annual event

he California Rental Association recently held its 53rd annual Rental Rally Tradeshow in Las Vegas, enjoying significant growth over last year’s show. To find out what’s behind the growth and where the organization is headed, we sat down with CRA Executive Director Dale Blackwell to get the scoop.

RENTAL: How much growth did the CRA see this year compared to last year? BLACKWELL: Last year we had 187 booths at the show and this year we grew to 309, including party booths growing from 12 to 44. That’s nearly double the size. Attendees represented 18 different states from three countries, including Mexico and Australia. Our attendees went from 303 in 2015 to 412 this year.

RENTAL: What contributed to the success of this year’s show? BLACKWELL: Several things. We’ve seen continued growth in the economy out west combined with continually increasing rental revenues. Our alliance with the Mid-Atlantic Tent Renters Association (MATRA), with its ability to bring the Industrial Fabrics Association International (IFAI) onboard for a tenting seminar, helped a lot, as did participation from the Scaffold Access & Industry Association (SAIA). Our cooperation with and support from the Northwest Rental Conference group contributed to the success of this year’s CRA, and as always, a lot of it comes down to location, location, location. Las Vegas continues to be a desirable destination for our attendees.

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RENTAL: How did the California Rental Association get started? BLACKWELL: The California Rental Association has formed in 1946 as the California Trailer and Rental Yard Association (CTRYA) by 11 of the “trailer guys” who saw the need for an organization to protect and develop California’s young rental industry. Several years later the Northern Equipment Rental Association joined the CTRYA. CTRYA officially became the California Rental Association in 1961. As the rental industry grew, so did CRA. To keep up with the growing needs of rental businesses, CRA successfully implemented several group member insurance plans; a scholarship foundation was developed to provide funds for rental industryrelated education; a political action committee was created to protect the industry’s legislative interests; and Western Rental Sales was formed to develop discount buying programs for rental businesses. The first CRA convention held in 1963 in Long Beach, CA, provided members the opportunity to market their products, network and attend educational seminars. The CRA’s focus has always been to give back to the industry by having outstanding partnerships with vendors, offering many networking opportunities, and keeping shows and meetings affordable for both vendors and attendees.

RENTAL: What is your history in the rental industry? BLACKWELL: My father started our rental business, Aba Daba Rents, in 1960 when I was 5 years old. He joined the CRA immediately in 1960 as the business was growing. It gave him the www.ForConstructionPros.com/RENTAL

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MANUFACTURER PROFILE

CURRY SUPPLY EQUIPMENT RENTAL PROVIDER Curry Supply Company is a leading manufacturer and dealer of service trucks to the equipment rental industry. Products include water trucks, dump trucks, crash attenuator trucks, mechanics trucks, flatbed trucks, fuel/lube trucks, enclosed lube trucks, and lube skids. As a rental industry provider, we understand the things that are important to you: easy to use products that are rent ready, delivered on time and have a favorable residual value. We can source the chassis, apply your decals, and prep it so all you have to do is put it out on rent. That’s turnkey. Whether you are a single rental location or a national chain, Curry Supply makes it easy. Contact Curry Supply at 800-345-2829, Sales@CurrySupply.com, visit their website www.CurrySupply.com, or follow them on LinkedIn www.linkedin.com/company/curry-supply-company.

WE MAKE IT EASY. Whether you’re a single rental location or a national chain we make it easy to get the trucks you trust.

YOUR JOBS. OUR TRUCKS.

American Rental Association ASSOCIATE MEMBER

WATCH

WHAT MAKES CURRY SUPPLY DIFFERENT!

www.CurrySupply.com | 800.345.2829 One of America’s largest manufacturers of commercial service vehicles, since 1932. Search: Search:11222607 xxxxxx www.ForConstructionPros.com/RENTAL

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PROFESSIONAL PERSPECTIVE

ability to learn from his peers and partner with manufacturers. I began working at a very young age helping my father. At 18, I left college and began managing one of our six stores. I was asked to serve on a local territory helping put on meetings. Several years later I was asked to join the CRA Insurance Committee. In 1986, I was asked to run for the board of directors. I worked my way up through all of the officer positions, taking over the position of executive director from Chuck Maltese in 2006. This July, it will be 10 years that I have been managing the CRA with my own staff at Aba Daba Rents.

“ I am most proud that the association has been able to survive and prosper in a difficult economic time, while continuing to address its members needs.

We are witnessing a rebirth of the industry and a continued willingness to share ideas.”

RENTAL: Do you see growth of the CRA show continuing? At what pace? BLACKWELL: As for next year, there continues to be interest in our tradeshow. We are anticipating continued growth, thanks to increased revenues for our member companies, and also due to continued interest among attendees in coming to Las Vegas. Rental companies, both party and event businesses and equipment-focused businesses, are all looking for new niches.

RENTAL: What are you most proud of during your time with the CRA? BLACKWELL: In July I will have been executive director of the CRA for 10 years and a board member for 19 1/2. I am most proud that the association has been able to survive and prosper in a difficult economic time, while continuing to address its members needs. We are witnessing a rebirth of the industry and a continued willingness to share ideas.

RENTAL: What is your plan going forward?

RENTAL: Why do you suppose that is?

BLACKWELL: The CRA show will be in Las Vegas 2017, 2018 and 2020, with no show planned for 2019. Our board of directors has voted to support the American Rental Association when it holds The Rental Show in Anaheim in 2019, by not having our show in Las Vegas that year. The CRA does not want to compete with the ARA by holding another western show so close to the ARA’s show.

BLACKWELL: Networking with peers seems to be making a comeback in our industry. People in the rental industry are asking questions and listening to reps and manufacturers when deciding on new procedures and equipment needs. The CRA 2017 Rental Rally Tradeshow will be held Jan. 30-Feb. 1, 2017 at the Southpoint Casino Hotel in Las Vegas. For more information, visit www.calrental.org. ■

RENTAL: How do you plan to foster continued growth? BLACKWELL: As always, we continue to focus on partnering with our vendors in the West. We’ll continue to listen to our members and associate members and offer services and products to help small businesses survive.

MARCH 2016

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www.ForConstructionPros.com/RENTAL

3/15/16 11:10 AM

MANUFACTURER PROFILE

BUILT WITH THE

DURABILITY & SAFETY ITS CUSTOMERS DEMAND

Allmand, a subsidiary of Briggs & Stratton Corporation, is a manufacturer of portable jobsite equipment focused on providing customers with safe, reliable, and high-quality products. Located in Holdrege, Neb., Allmand manufactures towable light towers, mobile industrial heaters, solar flashing arrow boards, and portable light stands for the global construction, mining, oil & gas, and rental markets. Allmand, with the help of Briggs & Stratton Corporation resources, is working to expand into the global market, allowing our products to provide for more businesses, communities, countries, and customers. Allmand has expanded its current line of diesel light towers with the introduction of the Night-Lite™ NL5000 60Hz light tower. Designed as an ROI-driven solution and built with the durability and safety its customers demand, the NL5000 features a 45 gallon steel fuel tank providing users with approximately 90 hours of runtime, a vertical manual winch tower deployed from the rear of the unit to keep the operator away from the tower cables, exterior operating controls and fuel fill neck provide for quick operation and refueling of the unit, as well as a stepping pad for easy fixture adjustment and mast rotation from the ground. The compact design of the NL5000 maximizes both freight costs and yard storage by being able to fit 18 and 20 units on a 48’ and 53’ flatbed trailer, respectively.

www.ForConstructionPros.com/RENTAL

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Featuring the Allmand-exclusive 1250-watt metal halide light system, the NL5000 provides its users with a higher light output than competitive units in its class. All major service points, including the Tier 4 final Kubota 1005 (CARBand EPA-certified) liquid-cooled diesel engine, are easily accessible with a lockable clam-shell style door. The unit is also equipped with a Genset Protect™ system designed to protect the engine and generator from starting and stopping with AC power and ensures the lighting system is turned off at startup and shutdown.

(800) 562-1373 | www.allmand.com

MARCH 2016

3/15/16 11:10 10:34 AM

SUPPLY SIDE B y J e n ny L e s c o h i e r, e d i t o r

Terex Execs Talk About

STRATEGY, THE MERGER & MORE John Garrison Jr.

Terex CEO John Garrison Jr. and Terex AWP President Matt Fearon talk about the past, the present and the future of one of the industry’s most prominent suppliers

Matt Fearon

ohn Garrison Jr. took the reins as chief executive officer and president of Terex in November 2015, following the retirement of his predecessor, Ron DeFeo. We had the unique opportunity to meet with Garrison and Matt Fearon, president of Terex AWP, makers of Genie equipment, at The Rental Show in Atlanta. Following is an excerpt from that discussion.

RENTAL: What is your vision for Terex, now that you’ve got a couple of months under your belt as president and CEO? JOHN GARRISON: Like many companies, there are some things we do very well and some things that need continuous improvement. I’ll bring in a more intense focus on the operating side of the business. I fundamentally believe that a business strategy should be centered around products and services. How do we create a competitive advantage for our customers? I think if you look at Genie, we’ve done a good job of actively listening to the customer and coming up with products and services that meet their needs. I’ve spent most of my life working with capital goods and cyclical businesses, so I know all about cycles. One of the things I have learned is it’s important to invest throughout the economic cycle. We have things to do across Terex to improve our cost structure, but one of the areas we won’t sacrifice is our product and service development. I’m a firm believer in investing because ultimately, cycles are hard to predict. It’s important

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to acknowledge our business is cyclical, but we need to continuously invest in our products and services. The Genie brand is a global leader and we continue to work on that globalization. To be a global leader we need manufacturing locations beyond just Redmond and Moses Lake, WA. In capital goods, you always have to be getting better. If you’re not getting better, you’re getting beat. There’s no in between. We’re focusing on that relentless pursuit of improvement in all aspects of our business. That’s the fun part, the challenge of figuring out how to get better. I think Genie has done a good job with that. It’s really the same focus across all of the segments of Terex, and we’re applying that same discipline and rigor to all of them.

RENTAL: How would you characterize the biggest difference between you and your predecessor, Ron DeFeo? GARRISON: We have to start by acknowledging the amazing job that Ron did - 23 years as CEO of Terex. Ron created this global enterprise and he did a heck of a job. There were a lot of acquisitions over time, whereas now we’re going to focus on the operating side; running the business that we have effectively. We’ll also make bolt-on acquisitions where they make sense to drive growth. There are two fundamental tenets the team knows. First is the importance of safety. What our customers do puts them in harm’s way. So we drive a culture of zero harm. The safety side is very important both operationally and also with our customers. If you look at Genie, what they do is innovate to enable our customers to work at height and do it safely, every single time. So taking that focus on safety all the way back through the organization is one of our key focuses. The other one is really listening to the customers. It’s a global world and our business is very complex. But when things get really complex, I always focus on distilling things down to something simple: We’re all customers. If we focus on the needs of our customers and we do it safely, good things will happen. Lastly, we are competing in a hyper-competitive global marketplace. We need to have a cost structure that enables us to compete to get a return on invested capital, to win in that marketplace. We can do it.

www.ForConstructionPros.com/RENTAL

3/17/16 11:10 AM

MANUFACTURER PROFILE

As a college student, Greg Barreto worked as a mechanic in a rental yard and thought hydraulics were the answer to the frequent breakdowns that were occurring with their tillers. Greg knew the parts most often needing repair were belts, chains, and gears. If he could eliminate these high maintenance mechanical components, the tiller would be more reliable by design and more efficient for the owner and operator. He experimented with hydraulic power and found he could make a rental duty tiller - without belts, chains, or gears. He built his first all-hydraulic tiller in his garage in Oregon in 1982 and sold it to his employer at the rental yard. Greg introduced the industry to the first all-hydraulic walk-behind tiller at a tradeshow in 1983 and founded Barreto Manufacturing, Inc. the following year. Customers were so impressed with the performance and reliability of the Barreto tiller, Greg continued to look for ways to meet the needs of the rental

industry. He proceeded to design the first ever all-hydraulic walk-behind trencher in 1995 â&#x20AC;&#x201C; a decision that has changed the trenching industry. Since that time, Barreto has continued to be

in design and quality in manufacturing are key to helping customers enjoy the greatest return on investment. Each piece of Barreto equipment is designed to excel in the most difficult conditions,

Each piece of Barreto equipment is designed to excel

in the most difficult conditions, without the downtime often experienced in harsh rental environments. on the forefront of innovation with a product line that now features tillers, trenchers, log splitters, stump grinders and wood chippers. Barreto manufactures over 80% of their components in-house to ensure quality and keep parts in stock without lead times. Barreto believes innovation

without the downtime often experienced in harsh rental environments. Backed by the philosophy that in order for a company to be successful, its customers must be successful, Barreto strives to provide the best quality and service possible.

For more information, please visit www.barretomfg.com or call (800) 525-7348. www.ForConstructionPros.com/RENTAL

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MARCH 2016

3/15/16 11:10 3/17/16 10:33 AM

SUPPLY SIDE

RENTAL: What is the state of the aerial industry? How do you see 2016 shaping up? MATT FEARON: In our last earnings rerport, we said we’d be down 10-15 percent this year. That’s driven mostly by the North American market for Genie. But there are other global markets that are flat. The only two that are really rising are Europe and China. The North American market is starting to slow down... from a manufacturer’s perspective (that’s a key point). Part of it is because of the cyclical replacement of fleet. Rental companies are starting to replace those 2008, 2009 and 2010 populations of machines and they just don’t have a lot of them. They didn’t buy much during those years. And building their fleets back up from those years is what’s been driving the industry growth for the past few years, so we see that naturally coming down. That being said, construction is still good. Look at the indicators, they’re still healthy. Residential and nonresidential construction forecasts are positive, but from a manufacturer’s perspective, we’re going to feel that dip. It is not 2009, I keep telling everybody that. This is a dip that we anticipated. We’ve been looking at our forecast models, knowing that it’s coming. In my opinion, the decline in oil prices in North America did throw a curve ball at the North American rental companies. They had to take that fleet out and move it around so their utilization dipped, and they’re really watching their metrics. As much as you’d love to have growth every year, I love it that the rental companies are paying such close attention to how their fleet is being utilized. The industry is still healthy. A lot of people want to overreact and say that it could be getting worse than it is. We’re not doom and gloom. We’ve been through the cycles before and we realize you can’t just sit back. You’ve got to make the move when you get into these little troughs. It’s not a major reset. GARRISON: I think oil and gas has had an impact, but it’s more like a multiplier effect. It wasn’t just the equipment at the well head that was affected. When you go out from the well head you see a lot of infrastructure, construction and a need for schools and hospitals that blossomed out from the well head, or from the fracking site. The multiplier effect caught us a little off guard, and that’s now working its way through the system. Everybody’s adjusting to that. It was a very good market for a very long period of time. It came down abruptly and that’s hard, but we’re working our way through it, and so are our customers. I think it will stabilize. There’s also the other side of the equation... there’s got to be some benefit to gas being only $1.50 per gallon. It helps the rental industry. I think it’s going to help us all in the long run. It will take some time to generate back into the market. When will it transcend into buying habits? That’s the big question, but I think it will happen.

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RENTAL: What’s going on with the Terex merger with Konescranes and the offer from Zoomlion? GARRISON: On the Konecranes side, Terex and Konecranes entered into a business combination agreement to merge the two companies as equals. The board of directors of Terex has not changed its recommendation. We continue to proceed with required anti-trust filings in the US and the EU and 7-8 other countries. We’ve received approvals from a couple of the smaller countries and that work continues. The work on all the files required for securities, shareholders and FCC continues. We did make a decision to pause the detailed integration planning for the time being because frankly, we were pretty far ahead of where we needed to be. On the Zoomlion side, they have made a nonbinding, cash proposal to acquire Terex for $30 per share in cash. The Terex board and management is evaluating that offer with our legal and financial advisers to ascertain what would be in the best interest of Terex shareholders, so that analysis is ongoing. And I really can’t comment beyond that. I will say that Zoomlion has said they do not want a hostile takeover. They only want the deal to work on mutually agreed upon terms. RENTAL: Which scenario would you prefer? GARRISON: I respect the question, but I can’t comment.

RENTAL: Is there anything else you’d like to let our audience know about what’s going on at Terex and Genie? FEARON: Genie’s 50th anniversary is a big deal and it’s something we plan to celebrate all year long. We have a storied past worth acknowledging. Look at our tag line: “50 years of Building the future.” When you look back at the roots of Genie, they really center around innovation, outstanding products and a commitment to continuous improvement. Those things created a culture, which is one of the things I really want to preserve. There’s something about Genie’s culture that’s different and our customers are attracted to it, our team members are attracted to it. I want to hang onto that, but at the same time, I want to move the company forward another 50 years. Over the last few years we’ve been putting out a lot of innovative products and we’ll continue to do that. Those foundation pieces that we built over the first 50 years are what we’re going to use to propel us into the future. I’m really excited about it. GARRISON: It is a momentous occasion. The world is filled with brands that don’t last. Genie is a brand that’s been able to succeed and grow in all sorts of challenging markets. They’re not looking in the rearview mirror, they’re looking forward and building the future. ■

www.ForConstructionPros.com/RENTAL

3/17/16 11:10 AM

MANUFACTURER PROFILE

CELEBRATING 30 YEARS OF PRODUCT INNOVATION

Since 1986, Baseplan Software Group has developed innovative, customer driven business management solutions available to the rental, sales and equipment industries. An expanding global business, with customers spanning four continents, we have proven over the last 30 years that Baseplan Software provides our customers with a foundation that empowers them to run more efficiently. Customers are provided with the tools to build greater value into their business with prompt delivery of products and services, while maintaining superior after-sales support. Baseplan Enterprise — a customized solution — is scalable, tightly integrated and module based. Individually, the Sales, Rental, Service, Parts and Financial modules offer unrivalled control and visibility of business processes

www.ForConstructionPros.com/RENTAL

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and supply chain management in all crucial sectors of your business. Together, the deliver a market-leading, seamless business management solution with endless benefits for your business and customers. “We are excited about the growth Baseplan Software is experiencing. It represents our success in delivering on the commitment we made a few years back to bring to the U.S. rental industry a software solution unrivalled by anything currently available,” said Matthew Patrick, CEO, Baseplan North America. From field solutions to rental management, Baseplan Enterprise can offer business intelligence software to keep our customers a step ahead of the competition. As the industry changes and grows, Baseplan is there to provide customers with world-class technologies, harnessing the importance of

asset management, computerized stock monitoring and equipment management solutions. Baseplan has built its success on helping customers increase productivity, optimize business processes and maximize operational effectiveness, all while creating greater value propositions for their customers. Supported by our company-wide focus on excellence in customer service, Baseplan Enterprise is the only true end-to-end fully integrated software solution on the market.

(702) 410-8600 | www.baseplan.com

MARCH 2016

3/17/16 11:10 11:09 AM

INDUSTRY UPDATE

GENIE CELEBRATES 50 YEARS OF

“BUILDING THE FUTURE”

Marking half a century of serving aerial markets around the world, Genie, the Aerial Work Platforms (AWP) segment of Terex Corporation, has achieved a five-decade legacy of “Building the Future” and will celebrate its milestone anniversary this year. Genie Industries was founded in 1966 when Bud Bushnell bought the manufacturing rights to a material lift that operated on compressed air. With growing demand for material lifts and aerial work platforms, products such as man-lifts, stick booms, articulated booms, light towers and telehandlers have been added to the Genie product line. Over its 50-year history, Genie has set new standards in the industry for innovation and many products and technologies that have become widely adopted. Terex AWP is sharing in Genie’s five-decade legacy with delivery of commemorative “Genie 50th Anniversary” machines. All deliveries of the GS-1930, GS-1932 and GS-4047 scissor lifts, Z-45/25 articulated booms, GTH-5519 telehandlers and S-60/65, SX-150 and SX-180 telescopic boom lifts throughout 2016 will bear the commemorative label.

HERC PARTNERS WITH COGNIZANT TO EXECUTE DIGITAL STRATEGY Cognizant announced it has been selected by Hertz Equipment Rental Corporation (HERC) to digitally transform its business by defining and executing a new Internet of Things (IoT) strategy. HERC is working with Cognizant to generate higher value from its telematics technology, the wireless capture of data about maintenance status, operator behavior, geographic location and other performance aspects from sensors on HERC’s heavy equipment fleet. HERC, a unit of Hertz Global Holdings, is a leading equipment rental company with approximately 280 locations worldwide, offering a diverse line of heavy equipment and tools for rent, including aerial lifts, earthmoving equipment, forklifts and power generators. HERC’s key markets include transportation, industrial and manufacturing, construction, oil and gas, government and municipalities, mining, energy, remediation, emergency response, facilities and entertainment. Cognizant will re-architect and enhance HERC’s critical business applications to capitalize on the latest digital capabilities, including advanced mobile interfaces for field technicians to improve efficiency and productivity, and new

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digital services for customers enabled by telematics.

SPECIFIC CAPABILITIES COGNIZANT IS DEVELOPING FOR HERC INCLUDE: • Asset tracking through advanced systems that automatically send an alert to employees when HERC equipment assets are entering or leaving a site; • Equipment availability and utilization tracking that enables real-time monitoring of equipment asset status (e.g. idle, underutilized, or mis-used); • Maintenance scheduling that enables automatic scheduling of preventive maintenance based on runhours of equipment. “Cognizant has long been a valued partner to HERC, so it is natural that we turn to them as we innovate with new technologies, and look to enhance our operational efficiencies,” said Rich Marani, chief information officer at HERC. “The team at Cognizant impressed us with a deep understanding of our industry’s business challenges, and their demonstrated ability to execute end-to-end as we transform our telematics program.” “HERC’s sizeable deployment of telematics technology reflects that they’re forward-thinkers and leaders in the new digital age. We’re excited to work with them to help better engage their customers and unlock new levels of business value from the massive amounts of data generated,” said Sean Middleton, COO emerging business accelerator, at Cognizant.

www.ForConstructionPros.com/RENTAL

3/17/16 7:48 AM

MANUFACTURER PROFILE

YOUR MOST

PREFERRED

BRAND

Rental customers with clogged sewers or drains demand “The To u g h e s t To o l s D o w n T h e Line!” General Pipe Cleaners is a leading manufacturer of high quality American-made drain cleaning machinery since 1930. In survey after survey, rental customers have consistently rated

General Pipe Cleaners their most preferred brand by a wide margin. Durability and dependability, combined with ease-of-use are the key to many happy return rental customers. Packed with safety features, our rugged, reliable drain cleaning machines have a solid reputation for reliability. Our equipment features

Flexicore® cable. It’s made of heavy gauge wire that is coiled tightly around 49-strand aircraft-type wire rope and heat treated. It has unequalled strength and the right amount of flexibility. We also offer innovative items like the compact, lightweight Kinetic Water Ram™ that clears a clogged line instantly with a burst of compressed air. Jet Set® water jets add new tools to your fleet to make it easier for your renters to clear stubborn grease stoppages, as well as sand and ice clogged lines. And our versatile, easy-to-use Gen-Eye® video inspection system eliminates guess work when inspecting sewer and drain lines. Along with the durable, easy to use Hot Spot® pipe locator, General offers a full range of inspection cameras with everything your renters need to trouble-shoot 2” through 10” lines, including selfleveling color camera, on-screen distance counter, titler, voice over, and date and time stamp. General Pipe Cleaners, a division of General Wire Spring Co., is a third generation family-owned company celebrating 85 years of service to the rental industry, drain cleaning professionals and plumbing contractors, as well as facilities managers and the hardware/DIY market.

DRAIN CLEANING QUESTIONS? Call the Drain Brains® at General at 800-245-6200 or 412-771-6300. Or visit us at www.drainbrain.com/rental. The Toughest tools down the line.

www.ForConstructionPros.com/RENTAL

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MARCH 2016

3/15/16 3/17/16 10:40 7:48 AM

INDUSTRY UPDATE

THE RENTAL SHOW 2016 DRAWS HIGHEST ATTENDANCE IN 10 YEARS The Rental Show 2016 brought together an increased number of rental business attendees over the previous show for the seventh consecutive year – an achievement last accomplished in the 1970s. Rental attendance was the highest in 10 years, since ARA’s 50th anniversary celebration in 2006, according to the American Rental Association. The total number of rental business attendees in Atlanta was 5,932 from 2,568 rental businesses.

The commemoration of the American Rental Association’s (ARA) 60th anniversary and the continued optimism for growth in the equipment rental industry combined to create a successful 60th edition of The Rental Show in Atlanta from Feb. 21-24 at the Georgia World Congress Center. The sold-out show floor had 665 exhibiting companies – including one manufacturer, Clarke, that’s been at every show since the first in Omaha, NE in 1957 – and featured lively buying activity throughout the three days the exhibit hall was open. “It was a fantastic show,” said Terry Turner, CERP, now ARA’s chairman of the board from All Occasions Party Rentals in Knoxville, TN. “It was great to see everybody in Atlanta and the mood was good. The vendors I talked to had a great show and were excited.” Attendees reached the show floor in an upbeat mood following a full day of crowded seminars on Feb. 21 and an engaging keynote session to start the morning on Feb. 22. During the session, keynote speaker Earvin “Magic” Johnson captivated the capacity crowd with fist bumps, humor and even posed

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for selfies with audience members. The basketball star has become a successful businessman since his NBA playing career ended, and he told the audience the same strategies he’s used for his business ventures can work for the rental industry as well. “You gotta over-deliver to your customers, your clients and your partners. My ‘secret sauce’ of success has been to over-deliver,” Johnson said. The opening day of the trade show after the keynote was frenetic, which pleasantly surprised exhibitors, and the remaining two days on Feb. 23-24 provided more positive buying activity that left attendees and exhibitors weary but still smiling.

events, were pleased to see each other and embraced what the exhibitors had to offer. It was visibly energetic and very positive for the industry. It bodes well for rental operators in the coming year.” Attendees noticed that upbeat attitude as well. “I know I am biased after a few great years, but I haven’t heard anything but positivity and excitement from other members and vendors. All you had to do is stop and look around on the show floor – everyone was smiling,” said Josh Nickell of Nickell Rental, Newnan, GA. He said his company placed several orders on the show’s first day, taking care of business earlier than usual and continuing to buy throughout the show. “I’m really excited about some new product categories we’ve discovered at the show this year. They will make great additions to the fleet and help us access some niche markets.”

“You gotta over-deliver

to your customers,

your clients and your partners. My ‘secret

sauce’ of success has

Erin Stubbs of Busylad RentAll, Tupelo, MS, said the — EARVIN “MAGIC” JOHNSON attitude of attendees was a “Everything little better this moved along well. People were very year. “A lot of people were buying on optimistic and very energetic on the the first day. At almost every booth we show floor,” said Christine Wehrman, visited on the first day, we had to wait ARA CEO and executive vice president. in line to get an order written.” “You could see how excited they are As ARA moves forward into its seventh about the year ahead. Attendees were decade of operation, plans are beginpleased with all that the show offered ning for its 61st annual convention and and to see everyone. They were upbeat, trade show. Next year, The Rental Show expressing that it’s very worthwhile returns to Orlando, FL, from Feb. 26 to to be at the show. They enjoyed the March 1, 2017.

been to over-deliver”

www.ForConstructionPros.com/RENTAL

3/17/16 7:48 AM

Terex Asks Zoomlion to Up Its Offer

U.S. crane maker Terex Corp has told Chinese peer Zoomlion to sweeten its $3.3-billion offer in order for it to abandon its merger agreement with Finland’s Konecranes, according to people familiar with the matter. Terex’s response shows that Zoomlion has made little progress toward a deal since its offer was disclosed publicly by Terex a month ago. Terex said on Feb. 17 that it was continuing to review Zoomlion’s proposal to determine the course of action that is in the best interest of its shareholders, and that this process would take time. The latest development also shows Zoomlion’s main stumbling block in its negotiation is price, rather than concerns that the United States could block the deal because of Terex’s ties to the U.S. military and presence in U.S. ports. Terex has argued privately that the synergies with Konecranes in the material handling and port systems businesses of the two companies mean that Terex is worth more than the $30 per share in cash that Zoomlion has offered, the people said on Wednesday. Terex has not communicated to Zoomlion the exact price it would need to justify breaking up its merger agreement with Konecranes, though discussions are continuing, the people said. Zoomlion has not shown any willingness so far to raise its offer, the people added. The sources asked not to be identified because the discussions are confidential. Terex and Zoomlion declined to comment, while a Konecranes representative did not immediately respond. Previously, Terex Corp., a U.S. manufacturer of cranes said it had halted all work on its integration with Finland’s Need a flat saw that will handle tough jobs and last rental after rental? Konecranes Abp. The moves comes folThe NEW FS 3500 G flat saw is the perfect choice! It is a lightweight, low lowing a $3.3-billion acquisition offer profiled, easy to manuever and service, 37 hp rental-ready workhorse. from China’s Zoomlion. While Terex has It is available in 20", 26" or 30" blade guard sizes and comes standard with an made no decision on whether it will abanengine tachometer, hour meter and water safety blade protection. It can also be don its agreed merger with Konecranes, equipped with an optional water pump kit and/or light kit. the move is the clearest indication yet that To learn more, visit www.husqvarnacp.com or call 800-288-5040 to find your closest Husqvarna representative! it views a sale to Zoomlion as a realistic alternative, despite concerns such a deal facebook.com/husqvarnaconstruction could be blocked by the United States on national security concerns. Copyright © 2016 Husqvarna AB (publ.). All rights reserved. Husqvarna is a registered trademark of Husqvarna AB (publ.).

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MARCH 2016

3/17/16 7:48 AM

INDUSTRY UPDATE

SULLAIR LAUNCHES NEW CERTIFIED RECON PROGRAM Sullair, an industry leader in innovative compressed air solutions since 1965, announced the launch of its brand new Certified RECON program for its large portable air compressors. Under the reconditioning program, customers can turn in their used compressor—750 to 1600 cfm models from 2004-2012—and within 6-to-8 weeks, Sullair will refurbish it to whatever specification is requested. The RECON program will offer companies a hassle-free way to maintain their equipment and keep it running at maximum efficiency. Over the past year, Sullair has successfully been testing the program with a pilot company. The RECON program allows customers to send in their machine to Sullair and specify exactly what work they’d like done. The customer then receives the same machine back in 6-to-8 weeks with warranties on only what has been replaced. This differs from the Certified REMAN program, where the customer receives a like-new machine with a like-new warranty. The customer sends in their old core and receives a machine that has been fully remanufactured to the latest factory revisions with no waiting time. “This program was truly designed with the end user in mind,” said Rebecca O’Mara, business leader, after sales and support for Sullair. “Not only does it provide cost savings over time, but it also allows the customer to customize the compressors to meet their unique requirements.” The addition of the Sullair Certified RECON program now allows Sullair customers to meet their compressor needs through four different avenues: purchasing a remanufactured model; reconditioning their current fleet; and renting or buying brand new from a Sullair distributor. To learn more about the Sullair certified recon program, visit www.sullair.com or contact your local distributor.

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United Rentals Opens First Seven Specialty Rental Branches of 2016

United Rent als Inc. announced the further expansion of its specialty branch network with the addition of seven U.S. locations: • The United Rentals Trench Safety branches in San Diego, Calif., and Columbia, S.C., will provide engineered excavation support and confined space entry systems, as well as worker training. • The United Rentals Pump Solutions branches in Nashville, Tenn., and Savage, Minn., will provide fluid transfer solutions ranging from high volume, high pressure pumps to small, portable units and custom fabrication. • The United Rentals Tool Solutions branches in San Antonio, Texas, and Oakdale, Minn., will provide temporary and long-term onsite tool management and maintenance. • The United Rentals Power & HVAC branch in Oakdale, Minn., will provide engineered solutions for temporary power, heating, cooling and ventilation, as well as disaster recovery services. Paul McDonnell, senior vice president – specialty operations, said, “Our latest U.S. expansion is the first phase of at least 14 new specialty locations planned for this year. These offerings are fundamentally important to our company’s strategy, both in terms of profitable growth and service to customers. Demand for our specialty range is growing, and we will continue to invest accordingly.”

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INDUSTRY UPDATE

REPORT: GLOBAL CONSTRUCTION EQUIPMENT RENTAL MARKET TO EXCEED $110 BILLION BY 2019 According to Technavio’s latest report, the global construction equipment rental market is expected to exceed USD 110 billion by 2019 growing at a CAGR of over 7% during the forecast period. The equipment rental industry is gaining huge prominence across the globe. Although, in emerging economies, such as Asia, the industry is still in the nascent stage, it is projected to witness high growth in the coming years. An increase in the awareness of the equipment rental industry and growing investment in the construction industry will drive the equipment rental market. Asia and Europe are currently witnessing large-scale infrastructure

development activities, which is raising demand for construction equipment. Also, as most of the projects are undertaken with private investment money, where the utilization of equipment is limited to a short duration, contractors prefer to use equipment on a rental basis. According to Soumya Mutsuddi, a lead research analyst at Technavio for construction industry “Renting equipment not only reduces the ownership cost of the equipment, but contractors can reduce other costs pertaining to the use of equipment, such as maintenance costs and transportation costs, among others.” In this report, Technavio covers the present scenario and growth prospects of the global construction equipment

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rental market for 2015-2019. The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors operating in the market. The market is segmented into the following four regions: • Europe • North America • Asia • Others The other segment consisting of the Middle East, Africa, and South America accounts for only about 9% of the market share.

EUROPE: largest construction equipment rental market According to Technavio, the construction equipment rental market in Europe is forecast to grow at a CAGR of over 7% to exceed USD 44 billion by 2019. The economic slowdown during the period 2010-2013 had a huge impact on rental companies because of the decline in investments in the construction industry. However, the market has now picked up, with large-scale investment planned for infrastructure development across various countries in Europe. Countries such as Poland, Spain, Germany, and France are witnessing heavy growth in the construction industry. Moreover, as most of the construction projects in Europe are handled by private sector investors who bid for specific projects, the equipment remains idle following the completion of the project. Therefore, in such cases, construction contractors prefer to rent the equipment rather than buy their own equipment. For more on the report, visit ForConstructionPros.com/12177051

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ADVERTISER’S INDEX ADVERTISER PAGE Allmand Brothers Inc....................................................19, 77 Applied Machinery Sales.....................................................61 Barreto Manufacturing Inc..............................................7, 79 Baseplan......................................................................13, 81 BKT Tires, Inc. (USA)..................................................... 70-71 Bobcat...............................................................................11 Chicago Pneumatic Tool Company......................................31 Club Car......................................................................29, 53 CNH - Case Corporation.................................................2, 73 Curry Supply Company.......................................................75 Cushman Commercial........................................................35 Custom Equipment Inc.................................................66, 67 Electric Eel.........................................................................88 EZ Oil Drain........................................................................86 Generac Power Systems......................................................21 General Pipe Cleaners....................................................9, 83 Ground Hog.......................................................................69 Husqvarna Construction Products.......................................85 ICS, Blount Inc..............................................................49, 63 JCB Inc...............................................................................37 John Deere Construction Equip..................................... 50-51 Kobelco Construction Machinery................................... 56-57 Kohler Company...................................................................5 Kuhns Power Equipment LLC..............................................89 LoJack Corporation.............................................................45 MMD Equipment..........................................................15, 62 Networkfleet, Inc.......................................................... 24-25 Precision Components........................................................33 Propane Education & Research Council......................... 16-17 Quick Attach Attachments Inc.............................................91 Scania USA........................................................................27 Schiller Grounds Care Inc..............................................23, 43 Skyjack Inc................................................................... 58-59 Sotcher Measurement Inc...................................................86 Ditch Witch........................................................................92 Towmaster, Inc...................................................................87 Trask-Decrow Machinery.....................................................89 Trojan Battery............................................................... 38-39 Weber Machine (USA) Inc...................................................55 This index is provided as a service. The publisher does not assume liability for errors or omissions.

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EYE ON RENTAL By Dick Detmer

Make Sure Employees

GET AND STAY EDUCATED to devise a true system ON EQUIPMENT How for teaching your staff

ne of the primary indicators of the strength of an equipment rental company is the degree that its employees are truly educated on its inventory. As a former college educator for a program devoted to preparing many hundreds of students for careers in the equipment rental field, I have designed curriculum for the rental business. Even 30 years later, I am still educating the employees of rental companies and designing training systems for them on behalf of owners of rental businesses. O ne of t he mo st important keys to having a successful equipment education program is that it must be structured. The “learn as they go” program is not a system – it’s a recipe for having employees being unprepared to maximize daily opportunities to make the company much more revenue and profits. The most effective and efficient method to educate employees is to have a real equipment education system. It is vitally important to ensure that your employees are educated on all the various types of equipment in your inventory. Here are just a few of the many benefits of providing this type of education to your employees: • It helps them to become better solutions providers. Undereducated employees are not likely to ask the appropriate

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questions to match the customer’s need with the correct piece or pieces of equipment. They won’t have the knowledge to advise customers on the proper “dos and don’ts” when operating the equipment. • It helps to reduce damage to your equipment. Again, properly educated employees will be able to know the correct applications of each item and will be able to advise customers accordingly. This reduces the chances that equipment will be used for projects that would injure the equipment. Also, this knowledge is useful in helping to prevent potential injuries to your customers as well.

equipment, they are more likely to “suggestive sell” additional related rental items to customers and are better equipped to upsell. • Customers like doing business with rental companies that have employees who know what they are talking about. This leads to more repeat customers. All equipment rental companies should have a system to get their employees educated on their inventory, but most rental companies do not have one. The justification for developing a customized educational program that is right for your company, your team and your inventory is so compelling. And even though the benefits of having a structured way to bring a new employee up to speed and keeping them up to speed have always been there, the need is more acute now. The growing rental industry needs more employees and there is a shrinking pool of qualified candidates from which to choose. With all of the compelling benefits of educating employees (and keeping them educated) on the vast array of equipment in your inventory, make this one of your company’s priorities. Developing and implementing this educational system is well worth the investment. ■

“The most effective

& efficient method to educate employees is to have a real equipment education system. • It makes the employee’s job more interesting and satisfying which helps with your staff retention efforts. • When employees are more educated on the

Dick Detmer is a nationally recognized consultant, lecturer and writer with over 35 years of experience in the equipment rental industry. For consulting, on-site employee training or to order his books, visit www. detmerconsulting.com. Dick can be contacted directly via his website, by emailing dick@detmerconsulting.com or by calling (309) 781-3451.

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