Rental March 2019 by ForConstructionPros.com

NEW PRODUCTS From the ARA Show and more See the latest and greatest equipment introductions from leading market suppliers

Compact Excavators Manufacturers are bringing big-machine features to todayâ&#x20AC;&#x2122;s mini diggers

March 2019

3 PROPANEPOWERED MACHINES that might surprise you

RENTAL GOING STRONG

in 2019 & Beyond

SPECIAL SECTION

2019 STATE OF THE INDUSTRY REPORTS: Rental, Construction & Road Building Find the latest news at www.ForConstructionPros.com/RENTAL

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VOLUME 41 ISSUE 2

MARCH 2019

Find out what this year has in store for the equipment rental, construction and road building industries.

COVER: 2019 STATE OF THE INDUSTRY REPORTS

22 NEW PRODUCTS | Show Intros Products unveiled at The ARA Show and more. COVER IMAGE: kzenon/iStock/Getty Images Plus

IN EVERY ISSUE

CONSTRUCTION SUPPORT | Telehandlers Reach Further Into HighCapacity and Compact Size Classes

06 Everybody’s Business

Today’s machines rival skid steers and wheel loaders on today’s jobsites.

Trends and tidbits from The ARA Show.

08 Manager’s Digest

Rental professionals from around the country discuss obstacles to success and what to do about them.

EARTHMOVING EQUIPMENT | Compact Excavators Adopt Big Machine Features

98 Eye on Rental Columnist Dick Detmer warns of the dangers of being too cautious.

www.ForConstructionPros.com/RENTAL

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PRODUCT ROUNDUP | Pumps

16 Market Watch

92 I ndustry Update

Advanced features of larger machines are finding their way into a smaller package.

88 SPECIAL REPORT | Propane Why offering more propane-powered equipment can be an advantage for equipment rental businesses and their customers.

MARCH 2019

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VOLUME 40 ISSUE 8

CONTENTS

DECEMBER 2018

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COVER: TOC SPECIAL SECTION OR COVER STORY

RentalWATCH TOC SECTION

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Get all the latest information pertaining to the topics that matter most to your business. LookTOC here daily for the news SECTION and information you need Article Title go to most. To subscribe,

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 simple-tonavigate experience, only faster than ever before.

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VISIT TODAY!

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Join Our Social TOC SECTION Media Community Article Title

www.Facebook.com/ TOC description no Indent. Idi Check dioriaeout our Facebook RentalMagazine page and eos join our Twitter perovitatium exeratio debisto exceatem feed. Leave a comment, Rental@RentalMagazine discitfagu magnatio. post some news and photos, or just catch up on the latest TOC SECTION happenings Article Title in the TOC description no Indent. Idi dioriae world of perovitatium exeratio debisto exceatem eos equipment discitfagu magnatio. rental.

MARCH 2019

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BUYERS GUIDE

Fast, Relevant Product Information www.ForConstructionPros.

IN EVERY ISSUE

com/RENTAL/inventory features

the industry’s most comprehensive guide to construction-related products and equipment. Visit ForConstructionPros.com/RENTAL 00 Everybody’s and click on the New Equipment Business Directory for the most up-todateA.list of what today’s leading manufacturers have to offer.

00 Manager’s Digest 00 Market Watch

NEWS FEED

VIDEO: Toro and Ditch Witch Officials Clarify Details of Upcoming Merger

00 New Products C.

Information about the upcoming of the 00 merger Industry two powerhouse equipment manufacturers. Update www.ForConstructionPros.com/21048687 D.

VIDEO: Optimism in Rental Marketplace 00 Eye on Rental Spells Growth for Aerial Market E. Skyjack President Brad Boehler says the aerial market will see continued growth in 2019.

www.ForConstructionPros.com/21048055

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EVERYBODY’S BUSINESS // B y

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

jlescohier@ACBusinessMedia.com

RENTAL TAKES A LEAP

™

PRODUCT NEWS INSIGHT ■

at The ARA Show 2019 Technological advancements ruled the days in Anaheim

The time between one making the scene for a ARA Show and the next couple of years now from never seems very long, companies like Takeuchi in fact it’s head-spinning and Kato. And Toro, introhow fast those events come duced a prototype e-Dingo, around, as well as the leaps an electric-powered and bounds that prodversion of its 323 gaso...IT SEEMS uct advancement is taking, line-fueled Dingo, at this EVERYTHING especially in recent years. year’s show. But it was very IS GOING At this year’s show, which surprising to see an electook place in Anaheim, ELECTRIC, EVEN tric trencher, of all things, CA, Feb. 17-20, there were in the Ditch Witch booth. HEAVY-DUTY a few fascinating trends Only a concept model at EARTHMOVING the moment, the compathat stood out. EQUIPMENT As usual, the aeriny claims its C12e achieves al manufacturers led the the same performance as charge. Skyjack wins for its gas-powered counterpart. most dynamic presentation We look forward to seeing with its demonstration of a the production model when scissor lift self-check being it becomes available. performed from across the globe Telematics continues to create and in the future (well, actually in news as more and more companies Australia, where it’s a day ahead) using introduce programs to track equipnothing but a cell phone. JLG, for its ment and simplify maintenance. To part, introduced its own remote-conthat end, Trackunit, a leading global trol feature with the introduction of innovator of telematics technoloits R Series scissor lifts equipped with gy, has gone so far as to launch an Mobile Control. Using an app, stowed industry-wide mission to eliminate machines can now be moved around downtime. The gutsy ambition of the jobsite using an iPhone. Both of the movement is not only to recovthese introductions aim to improve er the billions lost through budget safety and efficiency on the jobsite by and schedule overruns, but also to reminimizing the presence of operators. establish the reputation of the industry They also beg the question of what for innovation and leadership. equipment will look like in the future, The 2019 ARA Show was defiin a time when machines might eliminitely one centered on technological nate the need for people to be directly advancement. It’s encouraging to see involved in any work at height. not only what’s possible, but also to see Meanwhile, it seems everything is leading suppliers finding ways to make going electric, even heavy-duty earththe advancements more accessible to moving equipment. Electric compact all through simplicity and ease of use. excavators, for example, have been What a time to be alive!

MARCH 2019

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■

www.ForConstructionPros.com/RENTAL Published by AC Business Media 201 N. Main Street, 5th Fl Fort Atkinson, WI 53538 (800) 538-5544 www.ACBusinessMedia.com

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

Dick Detmer

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Cindy Rusch

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www.ForConstructionPros.com Digital Operations Manager Nick Raether nraether@ACBusinessMedia.com 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: (847) 291-4816 • circ.rpnmag@omeda.com List Rental — Jeff Moriarty, SVP, Business & Media Solutions Infogroup, Phone: (518) 339-4511 Email: jeff.moriarty@infogroup.com Reprints — Erica Finger, efinger@ACBusinessMedia.com

AC Business Media CEO

Barry Lovette

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JoAnn Breuchel

Vice President, Sales & Marketing Amy Schwandt Editorial Director

Greg Udelhofen

Published and copyrighted 2019 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the U.S. to rental centers, equipment distributors, and other businesses with rental departments. To subscribe please visit www.ForConstructionPros.com. Publisher reserves the right to reject nonqualified subscribers. One year subscriptions for nonqualified individuals: U.S. $35.00; Canada and Mexico $60.00; and $85.00 all other countries (payable in U.S. funds, drawn on U.S. bank). Single issues available (prepaid only) $10.00 each. Rental (ISSN 1067-0904, USPS 686-370) is published eight times per year: January/February, March, April, May, June/July, August/September, October/ November and December by AC Business Media, 201 N. Main Street, 5th Fl., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI and additional entry offices. POSTMASTER: Please send change of address to Rental, PO Box 3605, Northbrook, IL 60065-3605. Printed in the USA. Canada Post PM40612608. Return Undeliverable Canadian Addresses to: RENTAL, PO Box 25542, London, ON N6C 6B2. Vol. 41, Issue 2, March 2019

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INTRODUCING THE 13STK/16STK TRACK TRENCHER THE PERFECT ADDITION TO THE BARRETO TRENCHER FAMILY

With its compact size and weight of 1,085 pounds, the all-new STK track trencher has the same key features as our larger track trencher. The innovative new track system and compact frame design provide bothstability and maneuverability. A hydraulic cooler with incorporated fan keeps the oil temperaturesregulated. Efficient and functional, the STK is the perfect addition to any trencher fleet. The independent floating track system keeps a significant portion of the track in contact with the terrain at all times, reducing ground pressure and increasing traction.

1-800-525-7348 | 1-541-963-6755 Fax www.barretomfg.com | info@barretomfg.com

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MANAGER’S DIGEST

Multifamily Builder and Developer Confidence Weakens Slightly in Q4 2018 bubaone/DigitalVision Vectors/Getty Images

Confidence in the market for new multifamily housing weakened slightly in the fourth quarter, according to results from the Multifamily Market Survey (MMS) released by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) dropped one point to 47 compared to the previous quarter, indicating weakening confidence. Meanwhile, the Multifamily Vacancy Index (MVI) moved down two points to 45, representing a slight improvement in confidence about the market for existing apartments.

2018 Commercial and Multifamily Construction Mixed in Top Metro Areas The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number below 50 indicates that more respondents report conditions are getting worse than report conditions are improving. The MPI has been slightly below 50 for two consecutive quarters. The MPI is a weighted average of three key elements of the multifamily housing market: construction of low-rent units — apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units — apartments that are built to be rented at the price the market will hold; and for-sale units—condominiums. All three components were below 50 in the fourth quarter. The component measuring low-rent units fell 11 points to 48, while the component measuring market rate rental units increased three points to 49 and the component measuring for-sale units rose five points to 44. The MVI measures the multifamily housing industry’s perception of vacancies in existing apartments. It is a weighted average of current occupancy indexes for class A, B, and C multifamily units, and can vary from 0 to 100, where a number under 50 indicates more property managers believe vacancies are decreasing than increasing. With a reading of 45, the MVI improved two points from the previous quarter, returning to where it had been in the second quarter. “We saw a big drop in the component for low rent starts, even though that is the segment of the market where demand tends to be the strongest,” said Steve Lawson, president of The Lawson Companies in Virginia Beach, VA and chairman of NAHB’s Multifamily Council. “Rising construction costs and difficulty with getting projects approved have made building particularly challenging in some parts of the country.” For more information, visit www.forconstructionpros.com/21048255

MARCH 2019

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CONSTRUCTION INPUT PRICE DECLINES CARRY INTO NEW YEAR Construction input prices fell 0.7% on a monthly basis in January yet are up 1.6% year-over-year, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. Construction input prices have declined for three consecutive months and in four of the previous six months. Seven of the 11 subcategories monitored in the data experienced price declines in January. Energy-related prices experienced the most precipitous declines, with natural gas prices falling 32.2% and unprocessed energy materials prices slipping 19%. “What a difference a year makes,” said ABC Chief Economist Anirban Basu. “In early 2018, contractors and their customers were being hammered by rapid increases in materials prices. Not only were prices rising, but there were concerns about the availability of certain precious commodities, including domestically produced steel. “Many factors were at work back then, including tariffs on steel, aluminum and softwood lumber,” said Basu. “The global economy was experiencing its first synchronized expansion in about a decade. At the same time, nonresidential construction activity in the United States continued to gain momentum and business investment surged in the wake of corporate tax cuts. “During the second half of 2018, the global economy has softened, helping to push oil, copper and other key commodity prices lower,” said Basu. “That has in turn influenced construction input prices. For contractors, this helps sustain profit margins at a time of rapidly growing worker compensation costs.” For more information, visit www.forconstructionpros.com/21047379

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3/14/19 10:26 AM

Nonresidential Construction Contractor Confidence Remains Positive Despite Drop Construction industry leaders remained predominantly confident about the nonresidential construction sector’s prospects during the final quarter of 2018, according to the latest Associated Builders and Contractors (ABC) Construction Confidence Index (CCI). This slight decline in optimism followed a slip in the CCI in Q3 2018 as well. Sales expectations remained especially upbeat during the fourth quarter, though the proportion of contractors anticipating significant sales increases in the following two quarters dipped by five percentage points. Despite that, more than 67% of contractors projected rising sales, while slightly less than 12% expected sales to decline. Just over 50% of contractors anticipate their profit margins to grow in the first half of 2019, yet only one in

■■ The CCI for staffing levels decreased from 68.6 to 66.2. “Despite rising materials costs, an ongoing skills shortage and higher borrowing costs, CCI continues to indicate optimism in America’s construction sector,” said ABC Chief Economist

10 contractors expects their profit margins to decline, even with rising labor costs. In addition, more than six in 10 contractors expect to increase staffing levels in upcoming quarters. Despite significant turmoil in “Construction industry leaders expect the financial marprofit margins will hold up well during kets during last year’s the first half of 2019 despite these rising final quarter, all three key components meacosts, which speaks to the ongoing sured by the survey strong demand for construction services.” — sales, profit margins and staffing levels — remain well above the diffusion Anirban Basu. “Construction industry index threshold of 50, signaling ongoleaders expect profit margins will hold ing expansion in construction activity. up well during the first half of 2019 ■■ The CCI for sales expectations despite these rising costs, which speaks declined from 68.6 to 67.2 durto the ongoing strong demand for coning the fourth quarter of 2018. struction services. ■■ The CCI for profit margin expecFor more information, visit tations fell from 63.6 to 60.6. www.forconstructionpros.com/21048262

REPORT

Q4 2018 CONSTRUCTION BACKLOG CONTRACTS TO 8.9 MONTHS

→

Associated Builders and Contractors reported its Construction Backlog Indicator contracted to 8.9 months during the fourth quarter of 2018, down 1.1% from the third quarter and 7.5% compared to a year ago. CBI reached a record high of 9.9 months in the second quarter of 2018 and averaged about 9.1 months throughout all four quarters of last year.

CBI is a forward-looking economic indicator that reflects the amount of work that will be performed by U.S. commercial, institutional, industrial and infrastructure construction contractors in the months ahead. “Though backlog has dipped slightly in the last quarter of 2018, it remains high by historic standards,” said ABC Chief Economist Anirban Basu. “A number of factors contributed to the decline, including a surge in materials prices in early 2018, which likely hindered project planning and contract negotiations later in the year. Interest rates also rose during much of the year, potentially resulting in some projects being postponed or canceled. It is also likely that the feverish market volatility during the fourth quarter of 2018 caused some investors to hold off until the financial marketplace stabilized, which it recently did. “That said, backlog in the heavy industrial segment rose slightly compared to the third quarter of 2018,” said Basu. “In fact, with industrial production surging for much of last year and with capacity utilization on the rise, the industrial category achieved its highest level in the history of the series during the final quarter of 2019. “Backlog in the South expanded at a more rapid pace than in the other three regions during the final quarter of 2018,” said Basu. “This has much to do with rapid population growth, which naturally creates demand for additional infrastructure. By contrast, the Northeast is hampered by growing concerns regarding overbuilt commercial segments and the Middle States are collectively beginning to feel the effects of an auto production cycle that may have peaked.”

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MARCH 2019

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MANAGER’S DIGEST

CONSTRUCTION EMPLOYMENT SURGES TO START 2019 Construction employment expanded by 52,000 net new jobs in January, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. Industry employment is up by 338,000 net jobs on a yearly basis, which represents an increase of 4.7%. Nonresidential construction employment grew by 28,600 net new positions on a monthly basis, although

the nonresidential building sub-sector lost 800 net positions. Construction industry unemployment rose to 6.4%, up 1.3 percentage points from December but 0.9 percentage points lower than in January 2018. The nationwide unemployment rate inched up a tenth of a percentage point to 4%. BLS also revised its estimate for December construction employment to 28,000 net new jobs, down from 38,000. “Today’s numbers are especially important for construction industry leaders to consider,” said Anirban Basu, ABC’s chief economist. “Because of the federal government shutdown and the market volatility that characterized last year’s final quarter, confidence among consumers and many business operators had been shaken. This is a far cry from a year

ago when many economic factors were upbeat after the brilliant financial market performance in 2017 and the passage of tax reform late that year. Today’s jobs report counter concerns that confidence had fallen far enough to jeopardize broader economic momentum and that the federal government shutdown could impact the January employment numbers in a meaningful and negative manner. “Instead, today’s employment numbers were exceptional,” said Basu. “Not only did the nation manage to add more than 300,000 net new jobs during the initial month of 2019, labor force participation rose further, indicating that more people are being persuaded to participate in the strongest labor market in a generation. What’s more, construction job totals surged higher, with nonresidential construction adding 28,000 on a seasonally adjusted basis in January. For more information, visit www.forconstructionpros.com/21045735

elenabs/iStock/Getty Images Plus

Dodge Momentum Index Recovers in January on Institutional and Commercial Strength The Dodge Momentum Index rose 4.7% in January to 157.7 (2000=100) from the revised December reading of 150.6. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. January’s increase reflected similar gains for the two components of the Momentum Index — institutional building, up 5%; and commercial building, up 4.6%. The January increase essentially reverses December’s decline, and brings the overall Momentum Index back to November’s level. January’s reading is also consistent with the monthly average for the second half of 2018, and just slightly below the current expansion’s high mark set in July 2018. Notably, however, the commercial component remains below the highs set during the summer of 2018, while the

MARCH 2019

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institutional component has gained traction as public funding for projects such as schools and transportation terminals remains supportive. In January, nine projects each with a value of $100 million or more entered planning. The leading commercial building projects were two $300-million CloudHQ data centers in Ashburn, VA. The leading institutional building projects were a $235-million arena renovation project in Phoenix, AZ, and a $140-million academic building at the University of North Carolina in Chapel Hill, NC.

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B O B C A T. C O M / R E N T T O U G H

When your equipment can do more, you can rent it more. Build your fleet of Bobcat® equipment and be prepared for any customer request.

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Bobcat is a Doosan company. Doosan is a global leader in construction equipment, power and water solutions, engines, and engineering, proudly serving customers and communities for more than a century. Bobcat®, the Bobcat logo and the colors of the Bobcat machine are registered trademarks of Bobcat Company in the United States and various other countries. ©2019 Bobcat Company. All rights reserved. | 1369

3/14/19 10:26 AM

MANAGER’S DIGEST

Engineering and Construction Costs Continue to Rise

DESPITE LOWER STEEL PRICES Construction costs increased in January, according to IHS Markit (Nasdaq: INFO) and the Procurement Executives Group (PEG). The current headline IHS Markit PEG Engineering and Construction Cost Index registered 54.4 this month, a slight uptick from December’s reading of 53.0, the lowest index figure for 2018. Although prices are still rising, with the index remaining above 50 for both materials and labor, these increases continue to be less widespread. Materials and equipment prices rose in January, with the sub-index rising from 52.6 in December to 53.9 this month. Price increases were recorded in eight of the 12 subcomponents in January. Ready-mix concrete and fabricated structural steel registered flat pricing, while carbon steel pipe and alloy steel pipe once again experienced price declines. All other categories had increasing prices. “Steel pipe prices continue to trend lower across all geographies due to falling steel input costs,” said Amanda Eglinton, principal economist, pricing and purchasing, IHS Markit. “Pipe prices in the United States will also be weighed down by the restarting of quotas on imports from Korea, Brazil and Argentina in early 2019. Price declines will level out by mid-year before moving sideways over the second half of the year, in line with the movement in steel input costs.” Current subcontractor labor cost increases were slightly more widespread in January; the index rose to 55.7, up from 54.1 in December. Labor costs rose in all regions of the United States. In Canada, the Eastern part of the country registered flat labor costs while in Western parts, labor costs dropped. The six-month headline expectations for construction costs index reflected increasing prices for the 29th consecutive month. The materials/equipment index slipped once more but stayed in expansion territory with a reading of 61.8. For the first time in a long while, expectations for future price increases were less widespread than in the previous month, though survey respondents continue to see costs increasing on a six-month horizon. In line with current pricing conditions, respondents noted expectations for dropping carbon steel pipe and alloy steel pipe prices. Expectations for sub-contractor labor also stayed positive at 69.7; that labor costs are expected to rise in all regions of the U.S. and Canada is not surprising given low national unemployment rates.

New Data Shows Trump Administration Tariffs Cost US Businesses $2.7B in November Tariffs Hurt the Heartland, a nationwide campaign against recent tariffs on American businesses, farmers and consumers, released new data that shows American businesses paid an additional $2.7 billion in tariffs in November 2018 — the most recent month data is available from the U.S. Census Bureau due to the government shutdown. This figure reflects the additional tariffs levied because of the administration’s actions and represents a $2.7-billion tax increase and a massive year-over-year increase from $375 million in tariffs on the same products in November 2017. The historic tax increases come despite overall imports being slightly lower. The data, compiled by Trade Partnership, also shows that U.S. export growth hit its lowest level of 2018 in November, thanks in part to a 37% decline in exports of products facing retaliatory tariffs. “This data shows that Americans, not our foreign competitors, are the big losers in the trade war,” Tariffs Hurt the Heartland Spokesman and former Congressman Charles Boustany said. “U.S. businesses are being hit by a double whammy of historic tax increases in the form of tariffs and declining exports as farmers and manufacturers lose opportunities in the overseas markets they rely on for their livelihoods. As U.S.-China trade talks resume, we hope the administration will heed the concerns of the thousands of American companies facing unprecedented tariff costs while making further progress toward an improved trading relationship and an end to the trade war. The proposed March 1 tariff increase should be completely off the table as American businesses are already facing billions more in tariffs every month.” “This new data proves the Trump administration’s tariffs are costing U.S. consumers and businesses billions of dollars,” said Association of Equipment Manufacturers (AEM) President Dennis Slater. “This not only risks millions of American jobs, including the 1.3 million jobs supported by the equipment manufacturing industry, but it also invites retaliatory tariffs that unnecessarily hurt U.S. farmers and ranchers. We share the Trump administration’s concerns about China’s discriminatory trade practices, but an escalating trade war is not the answer and has to stop.” For more information, visit www.forconstructionpros.com/21047367

In the survey comments, respondents indicated a tight labor market for all skilled trade workers. Diy13/iStock/Getty Images Plus

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BUILT

erful

Powered to easily handle heavy loads. The Snorkel SR1054 rough terrain telehandler is built to perform with a maximum lift capacity up to 10,000 lbs. (4,535kg). A 3-section boom offers extended reach up to a maximum lift height of 53 ft. 9 in. (16.4m), and standard outriggers and auto-leveling deliver sturdy performance on any jobsite.

STRONG FOR EASY LIFTING

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MANUFACTURER PROFILE Advertisement

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INDUSTRY

INDUSTRY MARKET MARKET WATCH WATCH By Rod Dickens, contributing editor

CHALLENGES ABOUND, as does optmism

Rental professionals from around the country discuss how they deal with obstacles to business success

OREGON: PORTLAND MARKET LOOKING STRONG “Things are looking pretty hot right now.” That’s how Brian Lusby, business development nanager for Trade Tool Supply Corporation in Tualatin, OR describes the Portland metropolitan market. “New data centers are being built in the Columbia River Gorge, as well as Central Oregon,” he related. “People are moving here to take advantage of job opportunities, which,

in turn, has created a housing shortage and a ramp up of new housing construction.” By selling and renting tools to the professional and electrical trades, Trade Tool Supply is in a good position to take advantage of the vibrant market. “In the rental market, our primary customers are large electrical, plumbing, and mechanical contractors,” explained Lusby. “That being said, we also serve a huge number of smaller companies performing the

THE BIGGEST ISSUE DOWN THE ROAD WOULD BE A SLOWDOWN, BUT AGAIN, THAT’S NOT SOMETHING WE FORESEE IN THE IMMEDIATE FUTURE. 16

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same activities. Our rental inventory includes everything from conduit bending and cable pulling and feeding tools, along with threading, cutting, and grooving tools. We also have a large inventory of drain cleaning and inspection tools for sale and rent.” He noted the company doesn’t anticipate a slowdown in the near term. In fact, it just added Greenlee products, a full line of tools and equipment for the electrical trade, to its sales and rental inventory. “Yes, the biggest issue down the road would be a slowdown, but again that’s not something we foresee in the immediate future,” Lusby reiterated. His advice to other rental stores: “No one can predict what the economy is going to do. Don’t over extend resources, but at the same time don’t hesitate to add something to your inventory if you can rent or sell it.”

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3/14/19 10:28 AM

TEXAS: GOING FORWARD WITH CAUTIOUS OPTIMISM

business with homeowners and smaller contractors who rent everything from skid-steer loaders, mini excavators, and dump trailers to smaller tools and equipment. “Our store has also grown into tent and party venues,” said company President Wayne Faust, “and both the party and equipment sides benefit from a strong local economy. The Omaha area is agriculturally based and, as my dad always said, ‘the economy in the Midwest cannot change a whole lot because of that.’ There’s also plenty of new construction in both the commercial and residential markets, which is bringing more contractors from out of town to our area.” Faust noted that his biggest challenge echoes that of other rental stores throughout the country: finding employees. “Most potential candidates do not have a driver’s license or transportation, and, even if they do, they’re not able to work steadily.” Solving that problem, he added, would go a long way toward taking advantage of growth opportunities created by a strong economy and, more recently, the disappearance of several small rental stores whose owners have retired. Said Faust, “We hope we can keep growing and changing to meet the needs of our homeowner and commercial customers and compete with the ‘big dogs’ in the rental industry.”

Texas State Rentals in Tomball recently opened its sixth location located in Austin, this despite what THE ONLY THING owner Angus HOLDING US BACK Davis said is “a cautiously optimistic view FROM BEING MORE of the market.” AGGRESSIVE IS “The only thing mature and holding us back from train people in MEMORIES OF ’08. the field. Our being more aggressive is memories of ’08,” target customhe remarked. “History ers, the larger indicates that a recession or downturn contractors, are a good niche for us, usually occurs within 120 months of too. We have a stringent credit process the last one. Currently, we’re setting at and customers as a rule have opera116 months of recovery since ’08. Add tors that take good care of equipment.” to this an election coming up in 2020 From this owner’s perspective, and there are reasons to be cautious. 2019 will be an interesting year for “For the last election, we had two rental stores, but no matter what hapbusiness plans in place. The tax cuts pens, one thing remains constant: promised by the current administra“Having smart people and a good tion were a formula for growth and location is the best formula for longwe are growing. The other plan called term success.” for less growth and more bottom line cash. For the coming election, we NEBRASKA: expect to again have those two plans AG ECONOMY in place.” REAPING Angus, who has been in the indusBENEFITS FROM try for 26 years, expects there will be a NEW CONSTRUCTION correction in the near term and quite Avery Rents Inc., in possibly some tough months ahead. Bellevue, NE has been in business As he pointed out, though, renting since 1962. Over time, the store has equipment will always be a cost-effectransitioned from renting large contive option for contractors. struction equipment to doing more As Davis emphasized, owners can prepare for contingencies, but at the WE HOPE WE CAN KEEP GROWING AND same time, they need to make decisions that are in their control. Hence, CHANGING TO MEET THE NEEDS OF OUR he hasn’t lost focus on the present day, HOMEOWNER AND COMMERCIAL CUSTOMERS when his company had the biggest December ever and looks to have an AND COMPETE WITH THE ‘BIG DOGS’ IN THE even better start to 2019. RENTAL INDUSTRY. “The Texas market is doing very well,” he added. “We’re growing as we

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INDUSTRY

MARKET WATCH LAST YEAR, THE TAX REDUCTION HAD A NOTICEABLE POSITIVE IMPACT ON THE LOCAL ECONOMY, AS DID LOWER FUEL COST. ARKANSAS: LOOKING FOR ANOTHER RECORD YEAR Small market rental stores can’t compete with their large-market cousins when it comes to sales growth, but they can still set and break milestones. That’s what A M Rental Sales did last year, and the Monticello, AR store expects another record year in 2019. “We’re the only rental store in a town of barely 10,000, said store General Manager Terry Maloney. “We don’t have a big influx of people or industry to drive additional sales. We can still grow, though, but at a slower rate.” According to Maloney, the town’s economy is sustained by two boat factories, a paper bag factory, and a styrofoam manufacturer. There’s also a hardwood flooring plant and a lumber mill, along with a vibrant logging industry. “Probably half our rental sales go to area contractors, with homeowners and industry making up the remainder,” Maloney noted. “Contractors and local industries take advantage of our scissor lifts and telehandlers, skidsteer loaders, trenchers, and tractors with front-end loaders. Homeowners are more in the market for manlifts for trimming trees, sewer snakes for unplugging pipes, and tractors and trenchers, as well, for odd jobs.” He continued, “Last year, the tax reduction had a noticeable positive impact on the local economy, as did lower fuel cost. In small towns like ours, there’s no public transportation,

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generate sales and the election results will likely determine if they stay in place. If not, we may have a slowdown and that’s one reason why we’re being a little more cautious this year.” While his company is tempering everyone drives and when gas pricthe urge to grow, it is taking advantage es drop, residents have more money to of the current marketplace, selling and spend.” renting to a large contractor market A M Rental Rental Sales has been constructing single and multi-famiin business 20 years. The store has five ly homes, new schools, and new retail full-time people and two who work establishments, all the result of poppart time.” ulation growth. “Our niche is renting to professionals in need of masonFLORIDA: ry and compaction tools, generators/ RESISTING THE URGE welders, air-hammers, aerial lifts, and IN NAPLES dirt-moving equipment.” His store, All Star which employs 11 people, also Equipment offers a full-line of Husqvarna Rentals in Naples has and Wacker Neuson been serving the southwest Florida equipment. market for more than 16 years. The As Duffy suggested, company is growing right along with there’s potential for more an economy that tragrowth than his comditionally thrives pany has budgeted on “snowbirds” and this year. A typical WE SAW THE vacationers. “We had November/December LAST RECESSION a good year last year slowdown in sales and expect to have didn’t happen. In COMING IN ’06 another one this year,” fact, December rentAND TOOK STEPS al sales were ahead of said company president Kevin Duffy. last year’s and January TO REDUCE “We’re targeting a 4is looking good, as to 5-percent increase well. Still, memories OUR DEBT AND over 2018. It could of 2008 are hard to INVENTORY. be more, but one of ignore. “We saw the our biggest challengULTIMATELY, OUR last recession coming es will be to resist in ’06 and took steps SALES DROPPED the urge to buy even to reduce our debt and more equipment. inventory, he added. OFF BY 65 “We’re looking “Ultimately, our sales ahead at the 2020 dropped off by 65 perPERCENT BACK election and history cent back then.” He THEN. IT DOESN’T doesn’t anticipate a tells us there’s usually a slowdown prior repeat of that scenarHURT TO BE to an election. This io, but, in his words, MORE CAUTIOUS. “it doesn’t hurt to be administration’s tax cuts have helped more cautious.”

www.ForConstructionPros.com/RENTAL

3/14/19 10:28 AM

Built not just for tomorrow. Built for 1,000 tomorrows.

QUALITY. So you can RUN [YOUR] WORLD. No matter thei their ir si size, ize, our machi machines ines are designed to get beat b up, not beat down. That built-in durability and extended time between service intervals means less time servicing and more time out on rent. And with over 1,900 dealer locations at your service, it all adds up to profits for the long run. johndeere.com/rentalsales

Search: 10073480

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MANUFACTURER PROFILE

SCANIA’S MODULAR ENGINE PLATFORM

INCREASES UPTIME Modular Concept Scania’s diesel engines are all part of a modular system, which reduces time and resources needed for training. The Modular Concept also supports the “One Man Service Concept.” Due to Scania’s separate cylinder heads, it makes it possible for one person to change a head in the field or shop.

Emissions Technology Scania uses the same modular engine platform for all emissions requirements throughout its complete engine range. Since the base engine footprint is the same, it minimizes the need for global OEM’s to redesign their equipment for markets with different emission legislation. Scania’s solution to meet Tier 4 Final emission requirements utilizes a SCR system in conjunction with a low mixture and cooled exhaust gas recirculation (EGR). This low percentage EGR keeps the cooling package requirements similar to non-EGR engines. Unlike most engine manufacturers, Scania is able to meet the strict emission requirements of Tier 4 Final without adding a Diesel Particulate Filter. Scania also redesigned the combustion chamber to

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improve engine efficiency and reduce the amount of harmful emissions produced by the engine. The fuel efficiency of the Scania Tier 4 engines were also improved compared to previous Tier engines. Scania uses the same after-treatment strategy for both their industrial, variable-speed engines and their new power generation, singlespeed engines.

Scania Service Network SMART SUPPORT Powered by Scania was developed in order to safeguard the quality of service received and to maximize uptime for every customer. The major components of Smart Support are Training, Scania Assistance, Strategically Located Service Points, Modular Concept, Parts Availability, Scania Handshake and Tailored Support. Scania’s service network includes over 700 technicians trained on the latest emissions standards and technology. Scania Assistance (1-800-2SCANIA) provides customers

with a 24 hour reporting line for any service issues they may face. All Scania Assistance cases are monitored until the engine is put back in service in order to ensure the customer gets maximum uptime and minimum downtime from their Scania engine. Scania uses metrics from Scania Assistance to measure everything from how quickly a customer is responded to all the way up to the time it takes to get the equipment back in service. The Scania Handshake is a unique way of bringing customers and dealers together before service is needed. All engines share common parts, thus helping to ensure high availability (95% + parts availability within 24 hours worldwide) and access to fast and reliable service from close to 2,000 Scania service points worldwide, of which approximately 360 are strategically located in North America.

www.scaniausa.com

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Sustainable power years ahead of tomorrowâ&#x20AC;&#x2122;s standards 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 industry-leading fuel efficiency vouches for long-term profitability and satisfied customers.

www.scaniausa.com

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Search: 10726813

3/14/19 10:28 AM

NEW PRODUCTS

SHOW

INTROS The industry looks to be in for another year of growth, which means the time is right to consider new lines of equipment. Check out some of the products introduced at industry trade shows.

 Snorkel SR9244 and SR1054 Rough-Terrain Telehandlers

 Ditch Witch Low-Profile HX Vacuum Excavators The HX-Series vacuum excavators feature a low profile, compact footprint, patent-pending design for optimized air flow and a standard cyclonic threestage filtration system. •

Power is provided by Kubota Tier 4 Final engines rated at 24.8 hp (HX30), 49 hp (HX50) and 74 hp (HX75)

•

Advanced sound-reducing technology creates minimal disturbance in noise-sensitive areas and contributes to operator comfort

•

Units provide a choice of a 500- or 800-gal. debris tank and a standard or heavy package with various freshwater tank sizes and trailer weights based on jobsite needs

•

Can be configured with an optional power boom or jib boom.

www.forconstructionpros.com/20995084

The 24,581-lb. SR9244 offers a lift capacity of 9,260 lbs., a maximum lift height of 44 ft. 4 in. and a forward reach of 31 ft. 2 in., while the 26,852-lb. SR1054 has a lift capacity of 10,000 lbs., maximum lift height of 53 ft. 9 in. and a forward reach of 41 ft. 4 in. • 100-hp Deutz TLD 3.6L Tier 4 Final engines • Include full-time four-wheel drive, powerassisted steering and foam-filled tires • Fully enclosed cab with adjustable suspension seat, heat and air conditioning and proportional joystick controls • Feature a B-Class carriage adapter and hydraulic attachment quick disconnect to utilize a range of attachments • Heavy-duty construction • Overall width of just 7 ft. 6 in. and a stowed height of 8 ft. 5 in. www.forconstructionpros.com/21046998

Minnich Stinger Concrete Vibrator The Stinger is a 14.5-lb. double-insulated universal motor that can drive the full line of Minnich vibrator shafts and heads from 3/4 to 2 1/2 in. • Available in 15-amp (115V) • Speed range of 11,000 to 13,000 vpm • Standard quick disconnect adapts to the vibrator shafts and heads of many other manufacturers • Motor runs safely when grounded systems are compromised • Durable protective frame extends vibrator life with urethane end caps that absorb shock while supporting easy-to-grip handles • Provides quiet operation meeting OSHA A 29 CFR 1910.95 standards www.forconstructionpros.com/20986167

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3/14/19 2:54 PM

 Vanguard 200 Single Cylinder Engine

 John Deere L-Series Utility Wheel Loaders John Deere has added the 524L, 544L and 624L to its L-Series utility wheel loader lineup. These new loaders incorporate new features including improved cabs, electrohydraulic (EH) loader controls, redesigned nearparallel linkage and enhanced performance buckets.

Vanguard introduces the first in a complete line of all-new single-cylinder horizontal shaft commercial gasoline engines built from the ground up based on customer input. •

Advanced version of TransportGuard, Vanguard’s single ignition and fuel shutoff designed to prevent oil dilution during transport

•

6.5-gross hp Vanguard 200 was designed for improved starting, reduced maintenance, less noise and vibration, and better service and support

• Two multifunction buttons integrated into hydraulic controls allow operator to assign a function to each button

•

• Ergonomically designed, seat-mounted right-hand joystick with standard forward-neutral-reverse switch and fully integrated auxiliary hydraulic controls

15 percent less vibration and 40 percent quieter performance than others on the market

www.forconstructionpros.com/21024666

• Roomier cab with rear defrost, standard 12-volt auxiliary power ports, optional premium heavy-duty air suspension heated seat and optional remote-heated adjustable mirrors • EH loader controls with integrated third and fourth function auxiliary hydraulics

www.forconstructionpros.com/21040276

Makinex Power Box The Power Box is a battery powered AC generator that stores electricity for use when and where power is unavailable. • Silent, emission-free power supply available in 4.4- to 17.6-kW sizes and several power configurations • Delivers Pure Sine Wave power to run anything from computers to portable air compressors • High surge loads to run heavy loads not possible on portable generators • Monitor usage stats, available power and more with the smartphone app • Locking NEMA3R cabinet for outdoor/ indoor security and heavy-duty wheels for safe and easy mobility www.forconstructionpros.com/21043673

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 Yamaha EF2200iS Generator The 55-lb. EF2200iS portable inverter generator includes Smart Throttle, a load-sensing control that allows for noise reduction and greater fuel efficiency. • Yamaha MZ80 OHV, air-cooled, singlecylinder, four-stroke engine • Maximum 2,200 watts of AC output and maximum AC current of 18.3 amps at 120 volts • Noise levels to 57 to 68 dBA at a 1/4 rated load • Includes an LED illuminated control panel, Yamaha Smart Dial for starting and stopping and Overload Power Reset to restore power without shutdown in event of an overload • Twin Tech parallel function allows for connection of two units to increase power www.forconstructionpros.com/21041228

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NEW PRODUCTS

Kato 9VXE-3 Electric Compact Excavator The 9VXE-3 electric mini excavator comes standard with all the features of the 9VX-3 and also allows excavating in confined areas with fume regulations. It combines a no-emission motor with other standard features such as the spanner function (27.5-in. to 37.5-in. variable width) and auxiliary hydraulic piping to front of the unit. • 360-deg. house swing with independent 140-deg. boom swing • 5-hp Baldor motor • 6-gpm hydraulic flow • 5-ft. 2-in. dig depth

 Takeuchi TB250-2 Compact Hydraulic Excavator

TB250-2 provides Takeuchi with a true 5-ton excavator that is well suited for a wide range of applications including general contracting, rental and landscapingLong arm with integrated thumb mount. • Four pump hydraulic system • Precision pilot joysticks • Primary auxiliary circuit delivers 24.2 gpm • Multi-function monitor • Standard Takeuchi Fleet Management telematics system (TFM) • Max dig depth: 12 ft. 4.8 in. • Weight: 10,957 lb. www.forconstructionpros.com/21043784

• 2,100-lb. operating weight • 2-speed travel • Comes with 100 ft. of power cord • Can be ordered with different volt options www.forconstructionpros.com/21044988

 Pettibone Traverse T1258X 12,000-lb. Telehandler Pettibone has entered the 12,000-lb. capacity market with the Traverse T1258X telehandler. The T1258X becomes part of the telehandler product line with a traversing boom carriage that can move loads by traveling horizontally. • Up to 70-in. of horizontal boom transfer • 117-hp Cummins QSF 3.8 Tier 4 Final diesel engine mounted on a side pod • Pettibone next gen X-Series platform • Four-section boom • Bottom-mounted external extend cylinder reduces load on wear pads • Drivetrain and axles optimized for greater tractive effort with minimal tradeoff on top end speed www.forconstructionpros.com/21046134

 Doosan P250/HP210 Dual Flow Air Compressor

The Tier 4 Final P250/HP210 portable dual flow air compressor delivers 250 cfm of air at 100 psi in low-pressure mode and 210 cfm of air at 150 psi in high-pressure mode.

 Bobcat Bob-Dock System

• 8% lighter working weight than the previous model

The Bob-Dock system is a hands-free hydraulic attachment mounting system designed for strong, easy and repeatable hydraulic connections without leaving the Bobcat compact loader cab.

• 34.5-gal. fuel tank

•

Available for M2-Series T630, T650, T740 and T770 compact track loaders; S630, S650, S740 and S770 skid-steer loaders; and the A770 all-wheel steer loader

•

To use, simply line up the loader with the attachment’s Bob-Dock adapter plate and press the Power Bob-Tach switch inside the cab

•

Standard couplers on the lift arm can still be used with attachments not equipped with the adapter plate.

• Includes curbside discharge valves and cooler clean-out ports • Runs eight hours at 100% load on lowpressure mode and nine hours at 100% load on high-pressure mode • Starts in temperatures as low as -10° F www.forconstructionpros.com/21046931

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www.forconstructionpros.com/21045451

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• EXCLUSIVE INDEPENDENT TRAVEL • ADVANCED HYDRAULIC CIRCUITRY • SET ATTACHMENT FLOW FROM CAB

DO MORE WITH A SINGLE MACHINE Most excavators can only do one thing at a time – travel, lift or swing. With our exclusive independent travel feature, KOBELCO excavators can do all three. Advanced hydraulic circuitry keeps the right amount of power going to the right places, so you can tackle even the most complicated tasks more efficiently and safely than ever before. Plus, hydraulic flow settings for up to 18 different attachments can be adjusted right from the cab, so switching between tasks takes only minutes. The next time you’re about to transport multiple machines to the jobsite, consider sending just one KOBELCO to take care of business.

MINI

SHORT RADIUS

CONVENTIONAL

KOBELCO-USA.COM/EXCAVATORS Search: 10076018

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NEW PRODUCTS

 Genie GS-1330m Scissor Lift Designed for Compact Maneuverability

Genie’s GS-1330m scissor lift is ideal for low-level access and space restricted applications with a 12.8-ft. maximum platform height, 18.8-ft. maximum working height and a two-person, 500-lb. capacity. • A ll-electric DC drive system with zeroemissions operation • Drive at full height • Platform load sense • G enie Smart Link control system with fully proportional lift and drive control • C apable of climbing up to 25% grade slopes in stowed position • Side-by-side platform guardrails • Diamond plate platform flooring • Weighs 1,950 lbs. www.forconstructionpros.com/21048011

 Custom Equipment

Introduces PA-1030 Hy-Brid Lift Custom Equipment LLC introduces the all-new PA-1030 push-around lift as a safer and more productive alternative to ladders and scaffolding. The PA-1030 enables users to manually maneuver the unit into place and hydraulically raise and lower to the desired work height. • Auto-lock brakes and total-lock rear casters prevent unintended movement • 10-ft. platform height and a 16-ft. working height • Platform is 41 in. long by 20.5 in. wide; total stowed height is 69 in. www.forconstructionpros.com/21048813

Magni RTH Rotating Telescopic Handlers The RTH range of rotating telescopic handlers include 14 models with lift heights from 57 to 150 ft., forward reach from 47 to 110 ft. and lifting capacities from 11,000 to 17,600 lbs. • Combines the capabilities of a telescopic forklift, rough-terrain crane, access platform and more into one machine • Combi-Touch System provides a choice of full-color, intuitive touch display panel interface or control dial • Standard RFID-based attachment recognition enables machine to select correct load chart for a range of attachments, including forks, winches, jibs, buckets, work platforms and more

Compact Loader Offers Unparalleled Access

• Include Dana Spicer axles, Sauer Danfoss hydraulic components and IP 67 electrical circuit protection

ASV designed its new radial-lift RT-65 Posi-Track compact track loader with the swing-out radiator, hood and engine-compartment side doors pioneered with the parallel-lift VT-70. The design allows unprecedented access to all sides of the engine compartment, including filters and other daily checkpoints.

• Two-wheel, four-wheel and crab steering modes

•

Rated operating capacity of 1,925 lbs.

• Cab design eliminates a dashboard, allowing for floor to ceiling glass at the front of the cab

•

• Multiple sensors around the machine enable load charts from 0% to 100% • Mercedes or Deutz Tier 4 Final engines and Bosch Rexroth hydrostatic transmissions

 ASV RT-65 Posi-Track

• Fully sealed and pressurized cab with HVAC system, fully adjustable suspension seat and steer column and dual joysticks with fourfunction simultaneous controls

• Compact-track-loader-specific frame offers 12.9in. ground clearance

• Can be operated via remote control

• Ground pressure: 4.3 psi

www.forconstructionpros.com/21046991

www.forconstructionpros.com/21048703

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MANUFACTURER PROFILE Advertisement

JENNY PRODUCTS A HIGHER STANDARD OF PERFORMANCE When looking to replenish your rental equipment fleet, you need solutions that offer long-lasting performance to maximize ROI. And, since 1927, Jenny Products has delivered – with reliable, American-made air compressors built to handle the rigors of rental and keep making operators money. Though compressed air hasn’t changed much throughout the years, Jenny has also made strides to simplify service and maintenance, helping to ensure the longest service life possible. Jenny’s full line of electric motor piston air compressors have a “UL Listed” designation from Underwriter Laboratories (UL). This means they have been tested and determined to meet UL’s strict requirements, which are based primarily on their published and nationally recognized Standards for Safety. The approval lifts Jenny compressors to a safety standard not found with most compressor manufacturers.

The only time people notice an air compressor is when it’s not working. That’s why Jenny has basically gone unnoticed since 1927. It’s the hazard of offering the most reliable compressors on the market, but we wouldn’t have it any other way…nor would our customers.

›› Isn’t it time a Jenny was hiding on your customer’s jobsite?

MADE IN THE U.S.A. JennyProductsInc.com

Search: 10073465 www.ForConstructionPros.com/RENTAL

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NEW PRODUCTS

 CPS 250 Single-Stage,  Vermeer SC382 Stump Cutter The SC382 comes equipped with a 37-hp Briggs & Stratton Vanguard EFI gas engine, a redesigned cutter wheel to help optimize performance, fourwheel drive and an optional blade to make cleanup more efficient. • 17-in. cutter wheel engineered to help improve chip containment and reduce material re-circulation • Designed to work up to 24 in. above and 15 in. below ground • Vermeer Yellow Jacket cutter system features universal and reversible carbide-tipped teeth with two cutting edges on each tooth www.forconstructionpros.com/21048864

 Skyjack SJ9253 RT

Rough-Terrain Scissor

Skyjack introduces the SJ9253 RT, its largest scissor lift to date with a working height of 59 ft. It’s the first model in Skyjack’s new full-size rough-terrain range.

Oil-Injected, Rotary Screw Portable Compressor Chicago Pneumatic Power Technique (CP) introduces the CPS 250, a single-stage, oilinjected, rotary screw portable compressor featuring new pressure adjusted through cognitive electronics (PACE) technology so the operator can control the pressure of the machine. • Increased operating range in the 100-150 PSI range, making the machine more versatile and user friendly • Powered by a 65-hp Tier 4 Final liquidcooled four-cylinder turbocharged Kubota diesel engine • Standard spillage-free frame with 110% fluid containment www.forconstructionpros.com/21048820

• New range replaces Skyjack’s existing 88” and 92” models and consists of the SJ9233, SJ9243, SJ9253, and SJ9263 RT • All-steel platform measures 7’ wide and 14.5’ long, with the option of single or dual 5’ extension decks • Skyjack’s AXLDRIVE is a true mechanical fourwheel drive system, which when combined with a selective differential lock, provides optimal traction and up to 40% gradeability • Skyjack’s SMARTORQUE means no diesel particulate filter (DPF), no diesel exhaust fluid (DEF) /AdBlue, and no other active exhaust after treatment www.forconstructionpros.com/21048833

Billy Goat Introduces AGR1300H SelfPropelled Auger Billy Goat introduces the AGR1300H Auger, the only dedicated self-propelled auger on the market. The unit features the highest bit torque in its class; lift assist struts; and a Patent Pending Z-Link for straight line drilling with limited repositioning for optimal functionality and one-man operation. • Features Billy Goat hydro-drive controls common to its sod cutter, aerators, overseeder and brush cutters • Variable speed forward and reverse is standard and the drive is separate from drill, eliminating the need to switch to drive or drill mode • Rig fits through a 36-in. gate and fits in the back of a 6’-ft.pickup truck with the bit on, eliminating towing

 Manitowoc Shuttlelift

CD5515-2 Carrydeck Crane This 15-ton (U.S.) carrydeck crane is suited for both inside and outside projects, is offered in either a dual-fuel or diesel engine and has a compact footprint, long reach and hefty capacity. • Standard 41-ft. boom or optional 50 ft. fullpower boom available for the diesel model

• Handles 2- to 18-in. bits

• 15-ft. boom extension available on both models with a 10-ton (U.S.) deck carrying capacity

www.forconstructionpros.com/21048816

www.forconstructionpros.com/12048838

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ANOTHER JCB FIRST 12,000 LB. NO DEF. NO DPF.

Introducing the world’s first 12,000 lb telehandler with no engine aftertreatment. JCB pioneered the telehandler more than 40 years ago and is the world’s biggest selling brand. Now, the company that started it all, offers the first and only 12,000 lb telehandler that requires no DEF, DPF or other engine aftertreatment. And just like all JCB telehandlers, the new 512-56 74 hp telehander features an all-JCB drivetrain, for unmatched performance and efficiency, and JCB’s unique U-pressed steel boom for unbeatable durability.

/JCBNA

@JCBNA

JCBNA www.jcb.com

Learn more about the world’s most popular telehandlers at www.jcb.com

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NEW PRODUCTS

Avant 530 Compact Loader Challenges Skid Steers The Avant 530 compact loader is designed to be an alternative to traditional skid-steer loaders. The 530 provides increased maneuverability and can be operated on senstive surfaces without causing excessive damage. • Standard telescopic boom

 Toro Dingo TXL 2000 Compact Track Loader

The Dingo TXL 2000 has a rated operating capacity of up to 2,000 lbs. and features telescoping arms that allow it to reach over obstacles, dig below grade and generally extend the working range.

• All cab variants available • Optidrive drive system for more power to drive and attachment hydrauilcs • 11.8 mph drive speed • 26-hp diesel Kubota D1105 engine

• Fully extended boom offers a hinge pin height of just over 10 ft.

• Lift capacity: 2,100 lb.

• Flexible, suspended operator platform provides 360° to the work area

www.forconstructionpros.com/21044406

• Lift height: 9.2 ft.

• Intuitive, easy to operate traction control design • Loader arm joystick includes telescoping function, proportional auxiliary control and directional left/right control for applicable attachments

 Forever-ODM HD 1320 Mini-Scissor Lift Forever-ODM’s HD 1320 mini-scissor lift can fit into normal elevators with an operator, allowing companies the ability to do ceiling and wall work on different floors from the interior instead of ground level.

• Standard skid-steer loader attachment mount www.forconstructionpros.com/21029479

• Load capacity: 528 lbs. • Extended deck load capacity of 220 lb. at 13-ft. platform height • Total height when lowered: 6 ft. • Width: 2.5 ft. • Two rear wheels driven by electric motor independently • Two front caster wheels can swivel 360 degrees

 Hilti TE 60-A36 Cordless

www.forconstructionpros.com/21040877

SDS Max Combihammer

The TE 60-A36 cordless SDS max combihammer is powered by a 36-volt battery platform, enabling it to deliver a hammering frequency of 3,300 impacts per minute. • Suitable for applications beyond drilling and breaking, including corrective chiselling, driving ground rods and metal stakes for formwork, digging and tamping in narrow spaces and coring in masonry and concrete • Brushless motor for high performance and efficiency • Active Vibration Reduction and Active Torque Control protects the user, tool and insert

WANT MORE PRODUCT INFO? 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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Big Ass Fans Pivot 2.0 The Pivot 2.0 fan features a 6-ft. diameter with 73 airflow positions and variable speed controls to provide cooling air up to 120 ft. from the fan. • Direct-drive motor and balanced airfoils ensure quiet operation • Includes ceiling, beam and column mounting options • Durable steel cage • Intertek/TL-certified to UL 507 and CSA C22.2 No. 113 certifications www.forconstructionpros.com/21045078

 Kubota Introduces the New

SVL65-2 Compact Track Loader Kubota Tractor Corp. unveiled its new SVL65-2 to the company’s popular compact track loader line, further diversifying its construction equipment offerings. The new compact track loader is positioned in a lighter ROC weight class than its predecessors and features an advanced hydraulic multi-function valve, the line’s signature slide-up overhead front door, and on/off self-leveling capability. The introduction rounds out Kubota’s SVL line that includes the larger SVL75-2 and the SVL95-2s models. • Advanced Multifunction Valve (AMV Valve) provides smooth operation when using simultaneous functions, such as auxiliary, boom and bucket circuits, allowing operators to be more productive throughout their work day • With the AMV Valve, the SVL65-2 makes running any attachment that utilizes auxiliary hydraulics even easier, especially attachments such as grapple buckets, 4 in 1 buckets, and hydraulic augers, to name a few • Powered by a 68-hp engine • Rated operating capacity of 2,100 lbs. at 35% or 3,000 lbs. at 50%, a reach of 34.9 in. and a hinge pin height of 118.5 in. • Standard self-leveling feature can be engaged with the flip of a switch and keeps the bucket or forks level without the need to manually adjust the angle on the way up • Multi-function levers provide fingertip control of all major vehicle and attachment operations

For 50 years, our commitment to service, knowledge and product availability has made TVH the One-Stop-Shop for our customers.

www.forconstructionpros.com/21046374

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NEW PRODUCTS

Deutz D1.2 Diesel Engine DEUTZ, in partnership with Kukje Machinery Co., introduces two new models, the D1.2 and the D1.7. Both will be DEUTZ branded and fully supported by the company’s service network •

D1.2 engine falls in the under25-hp range and is designed to efficiently power machines like aerial platforms, welders, trenching equipment, mini skid-steer loaders and other applications

•

 Mobile Control App for JLG R Series Scissors Lifts

Naturally aspirated, three-cylinder configurations offered in a 1.2L displacement with output ratings of up to 25 hp

•

JLG launched its Mobile Control app for the R Series scissor line. The app enables users to drive, steer and load R Series scissor lifts while in a stowed position from an iOS mobile device.

Can also be utilized with the company’s new E-DEUTZ products, providing customers with complete hybrid packages that are more efficient and environmentally friendly

www.forconstructionpros.com/21047081

• Available as an option on new R Series scissor lifts or for purchase as an aftermarket option for installation on previously purchased machines • Intuitive user interface • Displays all essential features needed to run the scissors as if the operator was standing inside the platform • Horn symbol allows operator to alert jobsite personnel when machine is operating nearby www.forconstructionpros.com/21048175

Generac Pro iQ3500 and GP3500iO Portable Generators Generac’s iQ3500 and GP3500iO are both are durable, yet lightweight. The intuitive PowerDial integrates the start, run and stop functions into one simple-to-use dial, along with Electric Start capability, all conveniently located for quicker startup on both models. • Select from two engine speeds, depending on the need, to significantly reduce noise and fuel consumption or to maximize power response • Optional Parallel Kit allows the connecting of two iQ3500 inverter generators or two GP3500iO generators together for twice the power when needed • PowerRush technology delivers over 50 percent more starting capacity for tools and other motor-driven equipment • iQ3500 features advanced inverter technology and enclosure design to provide optimal quiet performance www.forconstructionpros.com/21048797

 Allmand Maxi-Air 100,

375 and 400 Air Compressors The Maxi-Air 100, 375DP and 400 portable air compressors feature a heavy-duty, oversized rotary air screw end designed to run at lower rpm for longer life and improved fuel efficiency.

The iGX700/iGXV700 and iGX800/iGXV800 V-twin horizontal and vertical shaft engines feature an integrated electronic self-tuning regulator governor that enables drive-by-wire remote control operation.

• Developed for ease of use and easy starting

• Electronic fuel injection technology, advanced combustion chamber design and integrated Digital Capacitive Ignition with variable timing enhance fuel efficiency and operation

• Tier 4 Final engine • Deliver powerful airflow in all climate conditions • Maxi-Air 100 suitable when a smaller compressor is required, while the 375DP and 400 meet high-pressure application demands

Honda Expanded GX Series V-twin Engine Line

• 9.3:1 compression ratio

• 375DP features a flexible dual pressure design

• Feature a control panel with LED indicator, digital ignition system, automotive-style starter motor, engine temperature monitoring and parameter-setting ECUs and more

www.forconstructionpros.com/21047378

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 Wacker Neuson Mini Track Dumpers Wacker Neuson is expanding its product offering to include a line of mini track dumpers. The DT series (Dumper Track) will be available in three models with various skip options, making them efficient material-handling solutions for smaller jobs that need the advantages of a rubber tracked machine. • DT08 provides a 1,763-lb. payload, 9.1-hp Honda gasoline engine and front tip skip with 13.7-cu.-ft. heaped capacity • DT10 offers a 2,205-lb. payload, 13.9-hp Kubota diesel engine and swivel, front tip skip platform or front tip skip with selfloading shovel and heaped capacities of 15.8 and 16.2 cu. ft. • DT15 delivers a 3,308-lb. payload, 23-hp Kubota diesel engine, swivel tip skip with a 26.8-cu.-ft. heaped capacity or three-way side tipping skip platform with tailgate-style sides, plus a seated operator’s platform with foldable ROPS • Feature fully hydrostatic drive • Low-maintenance, long life design with fewer wear parts • Suspension-mounted rollers (DT10 and DT15) compensate for uneven ground and deliver a smoother ride on rough terrain and over curbs or steps • Compact dimensions suited for traveling through narrow passages www.forconstructionpros.com/21047429

 Gehl RT105 Track Loader The new Gehl RT105 track loader is one the most compact in the market that still delivers an impressive rated operating capacity of 1,050 pounds. • Measures 50.8 in. wide, 71.5 in. tall and 4,720 lbs., so it can work in tight spaces and it is easy to transport • Powered by a 35-hp Yanmar engine with 80 ft-lbs of torque • Features Gehl’s patented IdealTrax system which automatically tensions the tracks when the engine is turned on, eliminating over-tensioning and extending the life of the tracks up to 15%

TVH covers 92% of the US industrial equipment population with 1 day ground service to ensure your parts are delivered when you need them.

www.forconstructionpros.com/21048807

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MANUFACTURER PROFILE Advertisement

TRAINING THAT MEETS NEW ANSI REQUIREMENTS The new ANSI A92.22 standards for Safe Use and ANSI A92.24 standards for training published on December 10, 2018, and everyone must be fully in compliance within one year. These new standards carry with them some major changes and substantial additional requirements for training. To help equipment owners and operators be in compliance by December 10, 2019, Genie® operator training programs meet the requirements in the new standards: ■ Genie Lift Pro™ Online Operator Training Program ■ Genie Lift Pro Train the Trainer courses ■ Genie Lift Pro classroom-based operator training courses Safety is always job one on every worksite. Most accidents or equipment damage happens when operators overlook important safety precautions or don’t fully understand how to operate equipment. One of the biggest challenges in the aerial industry is increasing awareness about why safety is so important, especially as the standards change. That’s why Genie updated its two-part training program — which includes both online and hands-on components — to deliver a

standardized MEWPs or telehandler training package, to help operators stay safe on aerial worksites. The updated Genie Lift Pro courses are designed to get trainers, operators and supervisors up-tospeed with the new standards efficiently and effectively, while continuing to promote safety and the

development of the proper mindset to safely operate MEWPs in today’s busy work environment. Today’s Genie Lift Pro training courses cover: ■ Machine terminology ■ How to select the proper mobile elevated work platform (MEWP) selection for the application ■ How to create and adhere to a safe use plan ■ How to perform detailed risk assessments which include rescue planning ■ Best practices for recordkeeping ■ Occupant knowledge of machine operation and best practices safe use

For more information about the upcoming standards changes, visit: https://www.genielift.com/support/ansia92-csab354 For more information about Genie Lift Pro Training programs, visit: https://www.genielift.com/en/support/training

MARCH 2019

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GO AHEAD, BRING YOUR HEAVY TOOLS

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STATE OF THE INDUSTRY | RENTAL

Rental Remains

Strong Amid Slowing Construction & GDP Current predictions show industry continuing to grow through 2022

quipment rental market observers have for some time been bracing for a correction in the current growth trajectory, but so far, it has yet to come. In fact, the latest predictions are for still more industry expansion, albeit at a slightly slower pace than in recent years.

Projections for growth in 2019 The latest five-year forecast from the American Rental Association (ARA) calls for equipment and event rental revenues in North America to surpass $61.5 billion in 2019,

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including $55.8 billion in the United States and $5.7 billion in Canada, up 5.3 percent compared to 2018. Similar steady growth is expected in each of the successive years of the forecast to reach nearly $70.9 billion in revenue by 2022. The current figures, which are updated by the ARA quarterly, project slightly less growth than what was forecast in October, reflecting

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RENTALS ON THE RISE The 43rd Annual Wells Fargo Construction Industry Forecast was recently released. The survey, conducted in late 2018, gathers opinions from industry contractors, manufacturers and equipment distributors to determine their optimism for the coming year in the construction industry. The results continue to show that respondents expect the construction industry to have another strong year. Among the survey’s findings, a total of 63 percent of distributors and rental companies are renting out more construction equipment in 2019 than a year ago. Of contractors who rented equipment in 2018, 30 percent expect their rentals in 2019 to increase and 62 percent expect them to stay the same, while only 8 percent expect their rentals to decrease. In 2019, 58 percent of surveyed distributors and rental companies expect their rental fleets to increase – very similar to 2018 when it was 55 percent.

kzenon/iStock/Getty Images Plus

different factors that have slightly slowed the projected growth of the U.S. economy. “This remains a strong forecast for a growing industry that continues to expand faster than the overall economy,” says John McClelland, Ph.D., ARA vice president for government affairs and chief economist. In the U.S., equipment and event rental revenue is expected to grow another 4.8 percent in 2020, 5 percent in 2021 and 4.8 percent in 2022 to reach $64.4 billion.

What’s driving it?

In addition, the survey found that for many contractors surveyed, rental costs would only need to increase slightly or moderately (up to 15 percent) for them to consider buying instead of renting equipment. Here’s some more specific information on the rental industry in construction: • Distributors who responded indicate they will continue to grow their rental fleets as demand from contractors continues to grow. Fifty-eight percent of distributors expect to grow their rental fleet and 35 percent expect their fleet to remain the same size. This is great news for manufacturers, as even when a distributor is maintaining their current fleet size, they are replacing older units or units sold from the rental fleet. This means 93 percent of distributors will be buying equipment for their rental fleet. • Respondents who rent equipment reported flexibility continues to be the No. 1 reason why contractors rent equipment, but building equity before purchasing the equipment increased dramatically from 9 percent to 2 percent and is now the No. 2 reason. • Having a strong backlog of jobs, and having long-term confidence in the local economy, are the top two things that contractors surveyed need to see before they want to buy construction equipment. To see the entire report, go to: mail.wellsfargoemail.com/construction-industry-forecast

“Last year, a lot of construction industry companies had record sales and profits,” says Peter Gregory, national manager for Wells Fargo Equipment Finance Construction Manufacturer and Dealer Services Group. “As I’ve talked to our rental clients over the past few months, they all are expecting another great year. There appears to be a really good pipeline of future construction work which aligns with the high optimism we are seeing throughout the industry.” He continues, “Last year, due to long equipment order backlogs from many manufacturers, we saw that

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STATE OF THE INDUSTRY | RENTAL

a lot of dealers having to sell equipment out of their rental fleets in order to not lose sales opportunities to their clients. They will continue to replace that rental equipment this year as new equipment arrives. Most are very optimistic that the demand for sales and rentals will continue to be strong in 2019.” Rental penetration — the percentage of total construction equipment in use in the United States that is owned by equipment rental companies — increased to 53.5 percent in 2018, up from 53.0 percent in 2017, according to the ARA. “Rental operators are anticipating another good year but have remained disciplined around adding inventory,” says McClelland. “The effect of better fleet management is that minor fluctuations in the business cycle will not be overly disruptive to the rental industry.” Still, there is something of a slow-down. The question is whether it will be significant. Scott Hazelton, managing director, IHS Markit, the forecasting firm that compiles data and analysis for the ARA Rentalytics subscription service as part of a partnership with ARA, says real gross domestic product (GDP) growth in the U.S. is expected to be 2.5 percent in 2019 compared to 2.9 percent in 2018, resulting in

UNITED RENTALS BULLISH ON RENTAL OUTLOOK We recently had the opportunity to catch up with United Rentals executive, Chris Hummel, chief marketing officer, to find out what the biggest rental chain in the country sees on the horizon for the market. Following is an excerpt from that discussion.

Chris Hummel

Rental: What is your outlook for rental in 2019? Chris Hummel, chief marketing officer, United Rentals: “From our viewpoint, we’re bullish on the industry’s prospects in 2019. We look at the same macro signs everyone does, and our own internal customer confidence index remains positive. The index is built from regular feedback from our network of over 1,200 branches. That’s an important factor that underpins our guidance and our positive outlook. And, as we’ve said in the past, we’re particularly confident in our company’s ability to capitalize on market conditions of any nature.” Rental: What are the primary factors contributing to this trend? Hummel: Increasingly, customers across the construction and industrial sectors are facing the challenges of dealing with project complexity, improving productivity, assuring safety and simply getting things done. At United Rentals, we have a role in helping them solve these challenges, solutions, services, and technology as well as helping them see the strategic value of renting equipment. In addition, from our experience, they value taking a more holistic approach to their project solutions. That typically includes some kind of specialty rentals, be it temporary power, fluid transfer, HVAC, and possibly support services.” Rental: What’s next for United Rentals? Hummel: “As you know, we’re finalizing the integrations of acquisitions we made in the last year, and that’s a positive dynamic for our business and for our customers. Moreover, we’re seeing strong growth in our specialty businesses, offering customers an expanded and market-leading portfolio of products and services to meet an increasing set of project requirements – like power, HVAC, trench, tools, fluid solutions, safety training, etc. And, importantly, we continue to offer innovative technology tools to help customers better acquire equipment assets and better manage their projects. These are ramping up very nicely, and we expect that to continue.” Rental: What do you see in your crystal ball long term? Hummel: “Importantly, we see how technology can help our customers better improve the performance of their worksites, manage their equipment on site, increasing productivity, driving collaboration, and better managing the back office. We use our technology to help our customers work faster and more safely. Innovations include technology that works, connected jobsites, and helping customers adapt best practices from other industries which will drive new opportunities for our customers and for our company. In our experience, customers welcome technology that helps them do their jobs better, to drive productivity and safety, and they’re looking to us to help them with that.”

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MANUFACTURER PROFILE Advertisement

THINK

OUTSIDE

THE BOX! If you do what you have always done, you will get what you have always gotten. If you keep on filling the CapEx with the same old products, you will keep on fighting on same known grounds against competition. SET YOURSELF APART and offer what no one offers: Easy Lift compact spider lifts and Hoeflon compact cranes. The Hoeflon mini cranes all fit thru a standard single door. Offered in combustion and electric mode. Models C1, C4, C6 and C10 will lift up to 8810lbs to a maximum height of 72 feet. Hydraulic jib allow up-and-over capability with 2 telescopic sections and 210° of articulation. Searcher hook, hydraulic winch, or vacuum lifting device can be used in both articulated mode and straight boom configuration. All standard with 100 % Hoeflon made wireless remote. Easy Lift series of spider lifts ranging from 40’ to 140’, BEST WARRANTY of the industry, featuring the newest model: 87-48AJ: 35” width; 87’ w. height; 48’ Outreach (with 265lbs); 8,250lbs overall weight and 22’ long. What makes it unique: extra-long reach of 48 feet with 265lbs in basket and the overall width of 35 inches. This is the ultimate rental tool before the straight standard booms. Simple Inside™.

LIFT YOUR BOTTOM LINE For years, UPequip offers a full line of rental ready compact aerial lifts and cranes for the most complicated, demanding and cramped jobsite. Let us help your customers with their challenges.

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STATE OF THE INDUSTRY | RENTAL

CONSTRUCTION HOLDS STEADY IN 2019 the mild softening of the nearterm growth outlook. “The slightly lower increases projected in the new forecast are the result of slightly lower economic expectations. IHS Markit has lowered its GDP outlook marginally for 2019 and 2020, but this is not due to worries about a dramatic decline in the economy, but a recognition that trade policy has had some negative consequences, particularly in the manufacturing sector, and that the stimulus from tax cuts is wearing off for both consumers and businesses,” Hazelton says.

“RENTAL OPERATORS ARE ANTICIPATING ANOTHER GOOD YEAR BUT HAVE REMAINED DISCIPLINED AROUND ADDING INVENTORY.” JOHN MCCLELLAND “The global economy, with a few exceptions, also continues to slow. Yet, domestic employment gains in the U.S. remain strong and while purchasing manager indexes have retreated, they remain in expansion territory. The outlook still is positive,” he says. In Canada, rental revenue is forecast to grow 4.6 percent in 2019 to total nearly $5.7 billion and then continue to expand with revenue increases of 5.8 percent in 2020, 4.8 percent in 2021, and 2.8 percent in 2022 to total nearly $6.5 billion.

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Dodge Data & Analytics recently released its 2019 Dodge Construction Outlook, a mainstay in construction industry forecasting and business planning. The report predicts that total U.S. construction starts for 2019 will be $808 billion, staying essentially even with the $807 billion estimated for 2018. “Over the past three years, the expansion for the U.S. construction industry has shown deceleration in its rate of growth, a pattern that typically takes place as an expansion matures,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “After advancing 11% to 14% each year from 2012 through 2015, total construction starts climbed 7% in both 2016 and 2017, and a 3% increase is estimated for 2018. There are, of course, mounting headwinds affecting construction, namely rising interest rates and higher material costs, but for now these have been balanced by the stronger growth for the U.S. economy, some easing of bank lending standards, still healthy market fundamentals for commercial real estate, and greater state financing for school construction and enhanced federal funding for public works. “An important question going into 2019 is whether deceleration is followed by a period of high-level stability or a period of decline,” he continued. “For 2019, it’s expected that growth for the U.S. economy won’t be quite as strong as in 2018, as the benefits of tax cuts begin to wane. Short-term interest rates will rise, as the Federal Reserve continues to move monetary policy towards a more neutral stance. Long-term interest rates will also rise, reflecting higher inflationary expectations by the financial markets. At the same time, any erosion in market fundamentals for commercial real estate will stay modest. “In addition, the greater funding from state and local bond measures passed in recent years will still be present, and it’s likely that federal spending for construction programs will increase once all the federal appropriations bills for fiscal 2019 are finalized,” Murray indicated. “In this environment, it’s forecast that growth for construction starts will decelerate further, but not yet make the transition to the point where the overall volume of activity declines. For 2019, total construction starts are forecast to hold basically steady at $808 billion. By major sector

in dollar terms, residential building will be down 2%, nonresidential building will match its 2018 amount, and nonbuilding construction will increase 3%.” The pattern of construction starts by more specific segments follows: • Single-family housing will be unchanged in dollar terms, alongside a modest 3% drop in housing starts to 815,000 (Dodge basis). There will be a slight decline in homebuyer demand as the result of higher mortgage rates, diminished affordability, and reduced tax advantages for home ownership as the result of tax reform. • Multifamily housing will slide 6% in dollars and 8% in units to 465,000 (Dodge basis). Market fundamentals such as occupancies and rent growth had shown modest erosion prior to 2018, which then paused this year due to the stronger U.S. economy. However, that erosion in market fundamentals is expected to resume in 2019. • Commercial building will retreat 3%, following 2% gains in 2017 and 2018, as well as the substantial percentage increases that took place earlier. • Institutional building will advance 3%, picking up the pace slightly from its 1% gain in 2018 which itself followed an 18% hike in 2017. • Manufacturing plant construction will rise 2% following the 18% jump that’s estimated for 2018. The recent pickup in petrochemical plant projects should continue, and cuts in the corporate tax rate from tax reform should encourage firms to invest more in new plant capacity. • Public works construction will increase 4%, reflecting growth by most of the project types. The omnibus federal appropriations bill passed in March provided greater funding for transportation projects that will carry over into 2019, and environmentalrelated projects are getting a lift from recently passed legislation. • Electric utilities/gas plants will drop 3%, continuing to retreat after the exceptional amount reported back in 2015. New generating capacity continues to come on line, dampening capacity utilization rates for power generation. View report in full at www.construction.com

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MANUFACTURER PROFILE

THE WORLD PUMPS US FOR SOLUTIONS Hydra-Tech Pumps is a small but mighty original equipment manufacturer located in Northeast Pennsylvania. This family business has been around for over 40 years including almost 11 years in their new location. Their pumps have discharges sizes from 1.5” to 30” and flows from 60–24,000 gallons per minute for a variety of different applications. With slim line, general purpose, axial flow, sand/slurry, solids handling, shredder and specialty pumps, they have you covered in many applications. Most models are available in aluminum or

ductile iron and certain models can be built in 316 stainless steel to survive a particularly corrosive environment. Pairing Hydra-Tech’s submersible pumps with their standard line of hydraulic power units insures that your pumping system will operate with maximum performance, efficiency and reliability.

(855) 813-9143 www.hydra-tech.com/

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OF A

9FT LIFT HEIGHT 6.4 IN MAXIMUM

OPERATING CAPACITY

1,841 LBS

TL6R: SMALL AND AGILE COMPACT TRACK LOADER A pioneer in the compact equipment industry, Takeuchi introduced the first compact track loader (CTL) to the market in the mid-1980s. The innovation continues with the TL6R, now the most compact CTL in its lineup. An agile, radial lift machine, the unit is easy to transport, and features outstanding stability and performance in rental, agricultural, general contracting and landscaping industries. Powered by a reliable and efficient 65.2 hp engine, the TL6R delivers excellent power on the jobsite with a maximum lift height of 9 feet 6.4 inches, and a rated operating capacity of 1,841 pounds. Compact dimensions, including a height of 6 feet 5.8 inches, width of 5 feet and weight of 7,485 pounds, enable the CTL to access and work efficiently in areas with limited space.

For greater operator comfort, the optional cab features a swing-out door, heat and air conditioning. For even further overall ride quality, the unit comes standard with a quiet track design with flotation pads, reducing vibration and noise levels. Takeuchi Fleet Management (TFM) comes standard on most Takeuchi machines. The telematics system is available during the machineâ&#x20AC;&#x2122;s warranty period of two years at no additional cost. It provides a variety of data points including machine health and condition, run time and machine location. The user-friendly TFM system can help reduce downtime, control costs, perform remote diagnostics and schedule maintenance. For details on the TL6R and more innovations that have made Takeuchi a world leader, visit www.takeuchi-us.com.

The newly designed cabin has an overhead 5.7-inch color multi-informational display and backlit rocker switches that control a variety of machine functions.

LEARN MORE AT TAKEUCHI-US.COM

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With 55 years of experience, Takeuchi has earned a reputation for innovation. From the invention of the first 360-degree excavator to the very first rubbertracked loader, Takeuchi has led the way in the compact construction equipment industry. See for yourself how our performance, power and reliability stand the test of time. Contact your nearest authorized Takeuchi dealer for details on the TB250-2 and our full line of excavators, track loaders, skid steer loaders and wheel loaders.

LEARN MORE AT TAKEUCHI-US.COM

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STATE OF THE INDUSTRY | CONSTRUCTION By Rod Dickens, contributing editor

Special Report:

State of the Construction Industry 2019 Economists weigh in on prospects for construction in the months ahead

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he New Year got off to a rocky start with an extended federal government shutdown and instability in the global markets. Yet, there is optimism that the U.S. construction industry will continue to see favorable investment and activity in the months ahead. To give you a better perspective on what to expect, we asked economists from some of the leading construction industry organizations to share their insights and outlooks on what we may expect from 2019 and beyond.

Highway and Bridge Construction How did federal, state and local spending on highway and bridge construction in 2018 compare to the previous year, and do you see more funds earmarked for rebuilding infrastructure this year? Anirban Basu, chief economist, Associated Builders and Contractors (ABC): Infrastructure investment was very strong in 2018, due in large measure to improved state and local

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Connecting Global Competence

THE HEARTBEAT OF OUR INDUSTRY

All Key Players. All Trends. All Innovations.

YOUR VISIT. YOUR BUSINESS. YOUR TICKET.

bauma is more than the world’s leading trade fair: it is the heartbeat of the industry. With around 600,000 participants, additional halls, and larger space. For even more business.

Munich, April 8–14, 2019 www.bauma.de Search: 21036590

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STATE OF THE INDUSTRY | CONSTRUCTION Dr. Alison Premo Black, senior appropriations bill. Congress approved government finances. Significant vice president and chief economist, $2.5 billion for highway programs in spending growth was observable in American Road & Transportation addition to an increase of $930 million much of the nation in categories such Builders Association (ARTBA): approved as part of the core highway as water systems, transit systems, highPublic highway, street and related program under the 2015 FAST Act ways and flood control. investment by state and local governlaw. The market impact of the General Ken Simonson, chief economist, ments is expected to increase to $66.5 Fund investment from the appropriaAssociated General Contractors of billion in 2019 from $63.4 billion in tions bill will depend on how quickly America (AGC): After shrinking by 2018. This is the second year of constates obligate the funding. 4% in 2017, highway and street consecutive growth for public highway Nearly $2 billion will be available struction spending increased 6% in construction. The real value of pubto states using the same formula as the first 10 months of 2018 compared lic highway work, when adjusted for the federal aid highway program. But to the same period the year before. inflation, fell to $60.6 billion in 2017, states can take up to four years to obliThe increase resulted not from highdown from $64.5 billion in 2016. gate this money, unlike the traditional er federal funding but from states After falling 2% in 2018 to $31.2 program where funds must be oblithat have raised fuel tax rates or other billion, the real value of bridge and gated within the same fiscal year. The funding sources in the past few years tunnel construction work is expected remaining $500 million will be disand from more toll construction by to increase to $31.7 billion in 2019, an tributed through the federal and tribal both traditional toll agencies and by increase of 1.5%. lands program and a competitive public-private partnerships (P3s). highway bridge program. It appears spending will One wild card in the forecast SOLVING THE INDUSTRY increase again in 2019 but not by is the outlook for the reauthorias large a percentage as in 2018. zation of the FAST Act and the LABOR WOES WILL TAKE A Jeannine Cataldi, IHS ability of Congress to find addiCONCERTED EFFORT OF Markit: Spending on highways/ tional revenues to support the streets declined in 2017, largeBUILDERS WORKING THROUGH Highway Trust Fund. If states ly due to a wait and see attitude start delaying projects in response STATE AND LOCAL HOME as the (at that time) incomto uncertainty over the future of ing administration had touted the federal aid highway program, BUILDING AND INDUSTRY grand infrastructure plans. As then it would temper 2019 marthe year wore on and no plan was ket growth. ASSOCIATIONS, ALONGSIDE announced or passed, state and Overall, highway construcNATIONAL ORGANIZATIONS... tion market activity is expected to local governments started making arrangements for spending increase in about half of the states in 2018. and Washington, D.C. in 2019. ROBERT DIETZ, NAHB Overall spending on highThe market should be steady ways/streets is expected to increase Increased investment at the federin another five states, with activity by 1.6% over 2017 levels. Regarding al, state and local level will continue expected to slow down in the remain2019, there currently is no federal to support the growing market. Major ing 20 states. plan in place for increased investment developments include: in infrastructure. However, after the ■■ increased federal investment Building Construction mid-term elections, there was a stronthrough the FY 2018 appropriations What are the major drivers of ger expectation that some type of bill and the 2015 FAST Act law, the commercial and housing federal funding plan can be achieved ■■ the approval of numerous state and construction segments and do in 2019. Funding any federal bill local ballot initiatives to raise transyou anticipate the level of new remains the key headwind, but state portation revenues in 2016, 2017 construction to be sustained in and local governments have been takand 2018, and 2019 in both market segments? In ing a stronger role in raising revenues ■■ the action by 30 states to raise or which subsets do you expect to to undertake needed improvements. adjust their motor fuel tax rates, and see the greatest uptick in activity? We expect that spending growth in the other fees, over the last six years. ABC: While apartment conhighways/streets segment will expand Federal highway investment struction remained elevated in 2018, at an accelerated rate in 2019. received a boost from the FY 2018 total spending is no longer climbing

MARCH 2019

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STATE OF THE INDUSTRY | CONSTRUCTION

quickly. Single-family home construction slumped due in large measure to higher mortgage rates. Commercial construction, by contrast, was red hot in a number of segments, including hotels and data centers. AGC: Spending was very closely balanced in 2018 among residential, private nonresidential and public construction. In addition, the spending increases were widely spread across the nation. All but six states added construction employees between October 2017 and October 2018. In 2019, I expect slightly less growth in public construction, except for airport and K-12 school construction. Private nonresidential categories will be modestly positive, with the strongest categories being pipelines, warehouses and data centers. Residential construction growth will be helped by an increase in multifamily. Most states will continue to add workers, if contractors can find them. Robert Dietz, SVP and chief economist, National Association of Home Builders (NAHB): While the single-family construction market is expected to post a gain for 2018, it will be at a smaller growth rate than we expected at the start of the year. A nearly 100 basis point increase in mortgage interest rates over the course of 2018, combined with the cumulative effect of prior home price increases, has reduced housing affordability to a 10-year low. Our expectation is that mortgage rates will continue to rise alongside gains for the 10-year rate, given a tight labor market and the Fed’s intended policy to continue to tighten monetary policy, albeit at a slower rate than expected a year ago. For 2019, we expect a small gain for single-family construction, but housing affordability will hold back construction volume going into 2020. For multifamily development, we expect roughly flat conditions with the

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market leveling off. This level of apartment construction, however, is higher than we estimated last year given the 2018 single-family slowdown. NAHB expects home construction growth to continue to be concentrated in the West and the South, where job and population gains are strong. This is particularly true for markets in the Mountain states, such as Montana, Idaho and Utah. IHS Markit: Commercial construction remained healthy in

made housing less affordable. In addition, costs to build homes are rising, and builders are finding it is more profitable to construct larger homes, which tend to fall outside of many potential homeowner price points. These headwinds will keep the overall housing market flat in 2019. Areas that are expected to see stronger activity will be in the south and west markets where there is room to build. These are also areas with stronger population growth.

2018, led by spending in the warehouse, office and lodging segments. Warehouse spending is expected to slow, but remain above 10% for the year. Office and lodging spending are expected to end 2018 with stronger growth than in the previous year. Tax cuts enacted in 2017 had some benefits to businesses. The outlook for 2019 is for moderate spending growth in the commercial market. Tariffs enacted through 2018 are having some impact and we expect that office and lodging will grow, but at slower rates through the year. The housing market has been flat through 2018, with an expected growth rate for construction spending of less than 1% for the year, weaker than growth of 8% in 2017. Rising mortgage rates and rising prices have

Employment Do you see the labor challenge continuing to plague the construction industry in 2019 and, if so, what can businesses do to mitigate its impact? ABC: Skills shortages will continue to plague contractors in 2019 and likely beyond. Retirement of some of the nation’s most experienced, skilled and dedicated construction workers will persist for the foreseeable future, as will inadequate entry of younger workers. While expanded apprenticeship programs, retraining and other techniques will help, construction’s skills shortages will likely ultimately be solved by the emergence and diffusion of new technologies, including robotics, drones, 3D printing, artificial intelligence and modularization.

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STATE OF THE INDUSTRY | CONSTRUCTION

AGC: The worker shortage will intensify as more sectors compete for workers. Contractors need to adopt a wide variety of approaches to recruit, retain and substitute for workers. NAHB: As of October 2018, there were nearly 300,000 open construction sector jobs, a significant increase over a year ago. While the housing market slowdown will ease some of the upward pressure on the count of unfilled construction sector positions, we expect the skilled labor shortage to remain a key supply side constraint for the construction industry. Solving the industry labor woes will take a concerted effort of builders working through state and local home building and industry associations, alongside national organizations like the Home Builders Institute and the National Housing endowment, in partnership with trade schools and community colleges. For home building, the labor shortage will also increase the market share of modular and panelized construction, although those market segments in total currently represent less than 4% of total single-family construction. Nonetheless, even a small gain in that share will help lift the industryâ&#x20AC;&#x2122;s labor productivity and help builders build more with less. Emily Crowley, IHS Markit: Tight labor market conditions in construction will persist in 2019, resulting in yet another year of labor shortages and strong wage growth in the industry. The good news is the construction labor market is responding to demand. The construction industry added 225,000 workers through November compared to 2017. We also expect some demand-side relief as the positive effects of the Tax Cuts and Jobs Act subside. Real nonresidential spending growth will slow from 5.5% in 2018 to 2.7% in 2019. Rising interest rates will also weigh on

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the residential sector; real residential spending will decline 1.1% in 2019. The bad news is the construction industry is in the midst of a demographic transition and is expected to retire 30% of its workforce over the next 10 years. While demand growth next year is expected to slow and the pipeline of younger workers is improving, the outflow of experienced workers will keep construction labor markets tight, leading to an acceleration in average industry wages from 3.1% growth in 2018 to 3.6% growth in 2019. ARTBA: Recruiting, training and retaining workers will continue to be an issue at the local, state and regional level in 2019. Industry wages for employees on jobsites were up 3% in 2018, on average. Longer term, changes in technology will help drive increased productivity to address labor challenges. Despite these challenges, half of highway and bridge contractors have significant capacity to increase construction work above current levels, according to the latest results of ARTBAâ&#x20AC;&#x2122;s quarterly market survey. Fourteen percent of respondents said they are working at below 75% capacity, and another 36% are working at 75% to 90% capacity and could take on more work.

Raw Material Costs What factors may play an instrumental role in raw material costs in 2019? ABC: There will be many factors shaping construction materials prices in 2019. One of them will be a weakening global economy, which will generally help to suppress further price increases. Indeed, the recent decline in oil prices is at least partially attributable to weaker than anticipated global demand. Moreover, domestic supply has been rising in certain instances in response to tariffs and higher prices. This appears to be the case with steel and softwood lumber. Further, the U.S. dollar is likely to remain strong in 2019, which would tend to further suppress construction material price increases. The implication is that materials prices in 2019 may not rise as rapidly as they did during much of 2018. ARTBA: ARTBA estimates overall highway and bridge project costs remained below general inflation between 2013 and 2016, and rose 2.7% in 2017 and 3.8% in 2018, largely due to increased costs for diesel fuel and materials. Prices for the materials used in highway construction projects were up an average of 8% in 2018. This increase is largely driven by the cost of diesel fuel and other energy inputs,

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which were up an average of 26% for highway contractors, according to the U.S. Bureau of Labor Statistics (BLS). Other sectors of the construction industry also saw similar price increases. According to BLS price data, the average selling price of key highway materials inputs in 2018 were up for asphalt (+6% vs. 2017), cement (+2%), concrete block and brick (+2%), aggregates (+3%), ready mix concrete (+4%), iron and steel (+11%) and diesel fuel (+36%). The uncertainty created by the steel and aluminum tariffs enacted in March 2018 will continue to have an impact on the highway construction market. Steel is an important input for transportation construction — for every $1 spent on highway and bridge construction, 10 cents goes toward steel-related materials. It is difficult to isolate the impact of tariffs on the price of steel-related products from other market forces, such as the cost of energy, transportation or input materials. A 2003 report by the U.S. International Trade Commission (USITC) found that the economic impact of the steel tariffs implemented under the Bush Administration in 2002 on the construction industry was mixed. While 56% of contractors reported spot prices for steel had changed, about 67% of construction firms indicated there had not been a change in contract prices. Of the contractors surveyed, 83% indicated there had not been any major contract modifications after the tariffs were implemented.

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BLS price data shows that average annual prices in 2018 for steel manufacturers making more material-intensive products, such as steel bars, tubes, well casings and conduits, were up 12% to 14% compared to 2017. Steel-related products that include more labor inputs, such as bridge expansion joints, structural steel, scaffolding, gratins, railings and highway guard rails, were up 6% to 8% in 2018 compared to average prices in 2017. NAHB: Tariffs on Canadian softwood lumber produced a large amount of price volatility in 2018. During the summer of 2018, higher lumber costs were adding $8,000 per new single-family home. Additional tariffs on steel, aluminum and other Chinese goods could increase development costs by $1 billion or more in 2019, offsetting some of the benefits of the 2017 tax cuts. Moreover, the higher costs produced by tariffs represent an inflation risk, thus adding pressure to increase interest rates and slow the overall economy. A new U.S.-Canadian softwood lumber agreement is needed, and broader trade issues need to be resolved quickly to allow the economy to grow. Deni Koenhemsi, IHS Markit: Construction materials costs are rising at levels last seen before the recession. Inputs to construction index tracked by the BLS statistics is rising close to 7.5% in 2018. This aggregate index includes materials and energy that goes into construction but excludes labor. Therefore, it is a good representation of the top-line inflation that builders face with higher raw material prices throughout 2017 and 2018. Behind this high escalation in 2018 are important drivers such as fabricated steel (10% price increase) or refined petroleum products (close to 30% price increase). Section 232 tariffs and other trade decisions certainly played an important role in the escalation of prices for raw materials such as steel and aluminum. We expect Section 232 tariffs to stay in place in 2019. However, prices for steel and aluminum will be lower compared to 2018. They have already begun to drop. While part of the strength in pricing in the U.S. can be explained by tariffs, the other part of the explanation is the strength of the U.S. economy. With fiscal stimulus boosting growth, and solid gains in income, we expect fourth-quarter GDP growth to come in at 2.5%, bringing growth overall for 2018 to 3.1%. However, for 2019, we expect dynamics such as slowing global growth, a strong dollar, fading fiscal stimulus, tightening monetary policy, a hesitant stock market, effects of recent tariffs and the approach to capacity constraints, which point to a slowing pace in U.S. growth. [These] will also have a tempering effect on demand and raw material prices.

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STATE OF THE INDUSTRY | ROAD By Jessica Lombardo, contributing editor

The

BUILDING

Road Blocks

to Infrastructure Growth Industry professionals weigh in on the challenges that keep contractors awake at night

ANIRBAN BASU chairman and CEO of Sage Policy Group

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he road building industry is experiencing a time of both excitement and anxiety. On the one hand, transportation is finally starting to get the traction it deserves. In the November 6 midterm elections, voters approved 81% of transportation initiatives, securing over $30 billion in funds for infrastructure investment nationwide. On the other hand, contractors are still facing uncertainty for long-term federal funding. Pair that with labor struggles and increasing material prices and it’s no wonder they are having a hard time being optimistic about the future. Still, industry experts say the market outlook is positive for 2019. The value of highway, street and related construction work is expected to grow nearly 5% in 2019, after adjusting for project costs and

Vectorig/DigitalVision Vectors/Getty Images

inflation, according to ARTBA’s forecast model, says Alison Premo Black, senior vice president, policy & chief economist at the American Road & Transportation Builders Association (ARTBA). Overall, highway construction market activity is expected to increase in about half of the states and Washington, DC in 2019. Anirban Basu, chairman and CEO of Sage Policy Group (and ABC chief economist) agrees, noting, “Despite an uncomfortable level of stock market volatility beginning in October 2018, the U.S. economic outlook for 2019 looks benign. Leading indicators remain upbeat, including a number related directly to construction spending such as the Architecture Billings Index and Associated Builders and Contractors’ (ABC) Construction

ALISON PREMO BLACK

AUDREY COPELAND

DARREN COUGHLIN

senior vice president, policy & chief economist at the American Road & Transportation Builders Association (ARTBA)

incoming president, National Asphalt Pavement Association (NAPA)

president, Asphalt Recycling & Reclaiming Association

ED MORTIMER vice president, transportation infrastructure for the United States Chamber Of Commerce

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Backlog Indicator. The tax reform that came into effect in 2018 remains in place and will presumably produce additional positive business investment impacts in 2019.” What else is on the horizon? Industry experts weigh in on what’s ahead.

LACK OF GUARANTEED FUNDING How the construction projects are paid for is paramount to keeping work in the pipeline. 2018 provided some guaranteed dollars, and states are starting to pick up the tab, as well, helping to keep work going, even without a federal infrastructure package. Basu: For years, it had always been conventional wisdom that the nation’s infrastructure problems had to be addressed at the federal level. But despite the lack of the much discussed federal infrastructure plan, infrastructure spending has been surging in America for approximately the past year. According to data supplied by the U.S. Census Bureau, from September 2017 to September 2018, construction spending on water supply systems rose 31%, conservation and development 25% (e.g. flood control), transportation 16% (e.g. mass transit), public safety 15% (e.g. fire stations) and sewage/waste disposal and highway/street each by 9%. There is a simple explanation for these blossoming public works expenditures. According to the Pew Research Center, 34 states are taking in more tax revenue than they were prior to the Great Recession, even after accounting for inflation. West Virginia, for example, closed the last fiscal year with a $36-million budget surplus, the first time in eight years (not counting surpluses created via budget cuts). Maryland, a state that has been associated with only moderate job growth

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for much of 2018, ended the fiscal year with a surplus of over $500 million. Similarly, North Carolina ran a $440 million surplus. These surpluses have caused some states to reinvest in their own roads and highways. For example, last year, North Carolina awarded $7 million in matching grants to help fund 14 short line railroad/railway projects, and the Maryland Transit Administration has already committed to spending $900 million over the next several years on

significant delays or uncertainty over future investment levels will have a market impact. The two-year budget agreement reached between President Trump and the bipartisan leadership of the House and Senate calls for a minimum of $10 billion per year in supplemental infrastructure investment. Transportation programs received a total of $5.3 billion in supplemental general funds in FY 2018 and are on track to benefit from an additional $5.4 billion to

ansonmiao/E+/Getty Images

IF CONGRESS DOES NOT SOLVE THE ISSUE OF THE HIGHWAY TRUST FUND (HTF) IN THE NEXT YEAR, THIS WILL PUT A DAMPER ON THE MARKET AND SLOW DOWN EXPECTED GROWTH. ALLISON PREMO BLACK, ARTBA its public transportation system. Premo Black: If the last decade has taught us anything, it is that many states will start to hold back on projects if they expect a long reauthorization process full of delays and short-term extensions. If Congress does not solve the issue of the Highway Trust Fund (HTF) in the next year, this will put a damper on the market and slow down expected growth. On average, federal aid highway funds account for half of state program spending on construction, right-of-way purchases and planning and design work. Federal investment is a core component of state highway and bridge program capital outlays;

$5.8 billion in FY 2019. Nearly $2 billion of that funding is for highways, bridge and tunnel projects distributed under the same formula as the Surface Transportation Program Block Grants. An additional $320 million is for federal/tribal highways and $225 million is for a rural state competitive grant program for bridge projects. The additional funding should help boost the transportation construction market in 2019, but the total impact will depend on how quickly states obligate the general fund revenue. States have four years to obligate these funds, as opposed to one year for the core federal aid highway program. So some states may decide to

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STATE OF THE INDUSTRY | ROAD

obligate the additional general funds at a slower pace, especially if there is uncertainty and potential delays related to the reauthorization process. States are also working to make money on their own. We tracked nearly 540 state and local ballot initiatives during the 2018 primary races and general election. Voters approved 81% of those measures, showing their continued support to raise revenues for increasing transportation investment.

HTF INSOLVENCY One wild card in the forecast is the outlook for the reauthorization of the FAST Act and the ability of Congress to find additional revenues to support the HTF. If states start delaying projects in response to uncertainty over the future of the federal-aid highway program, that would slow down market growth next year. Mortimer: In 2018, the FY 2018 Omnibus granted $20 billion to “infrastructure.” Highways received an additional $4 billion in FY 2018 and a similar amount is expected in FY 2019. While legislative action did not occur in 2018 on an infrastructure modernization bill, the U.S. Chamber is optimistic that a new Congress and renewed interest from President Trump will mean both parties can come together to enact a significant bill in 2019. In January 2018, the Chamber offered its plan for reform, “The Roadmap to Modernize America’s infrastructure.” The plan includes a federal user fee, which was last raised in 1993. Since then, inflation has eroded nearly 40% of the value of the user fee. Fuel efficiency has also improved in the last 25 years. As a result, motorists use less fuel to drive the same number of miles, and there is significantly less revenue to maintain the roads they use.

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The U.S. Chamber is calling for an increase in the federal user fee of 5 cents each year over the next 5 years for a total increase of 25 cents. The proposal would include indexing the tax for inflation and for future increases in fuel economy, so there would be no need to revisit this issue in the foreseeable future. The proposal would raise $394 billion over the next 10 years, which would be invested in our highways, bridges and transit systems in a fiscally responsible fashion. When combined with state, local and private sector funds, this would go a long way toward modernizing the nation’s interstate system. The cost to the average American would be around $9 a month. The Chamber’s plan for infrastructure reform includes a long-term funding solution through the fuel tax. The Chamber is also open to other long-term funding solutions, including encouraging more private investment. Sustainable funding should be a critical component of any infrastructure modernization bill. Addressing this issue in 2019 will allow Congress to review FAST Act policy and be able to accomplish a timely reauthorization of the FAST Act in 2020. Without the revenue adjustment for the HTF in 2019, it will be very challenging to address this issue during the 2020 election year. We also continue to see state and local governments strongly supporting increased investments in transportation programs. Copeland: On the day after the Democrats won the seats to retake the House in the mid-term election, both President Donald Trump and Rep. Nancy Pelosi (Speaker of the House) identified infrastructure as an area where the administration and Democrats in Congress could work together. It is likely that President Trump will be looking at his infrastructure proposal as the starting point

for discussions around the next highway reauthorization bill. We’re hopeful for broad federal funding legislation passed in 2019, but there is a lot of work to do to iron out the details. Insolvency of the HTF continues to be an issue. As early as Spring 2020, states will have to stop construction because the HTF will not be able to meet its obligations. In 2019, it is critical for Congress to find and enact a sustainable funding stream. NAPA will continue to work with our partners and Congress to propose viable initiatives for highway funding and increased investments for infrastructure. Beyond 2020, starting in FY 2022, the federal government will have to find at least $20 billion per year in new HTF tax receipts or additional bailout transfers just to keep highway programs going at current funding levels, plus annual inflation increases of around 2% per year. Thus, it’s critical to come to an agreement on a sustainable funding mechanism for highways in 2019, so implementation can occur before FY 2022. Many different reauthorization concepts have been floated through Congress and all of them would stabilize the HTF. An estimated $160 billion over five years will have to be raised to maintain current funding levels. The best option to address the HTF shortfall would be a gas tax increase indexed to inflation, to impose a tax on car batteries, and a vehicle miles traveled (VMT) user fee on commercial vehicles. Before any sort of VMT is ready for implementation, there will have to be some sort of nationwide pilot program. The next highway reauthorization — if it is a long-term bill — will likely have to include a combination of solutions, an increased gas tax (in the early years) indexed to inflation and some type of user-based fee for highly fuelefficient and alternative fuel vehicles in later years.

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3/14/19 10:54 AM

MANUFACTURER PROFILE Advertisement

NEW & IMPROVED TIPPMAN PROPANE HAMMER HD

Propane Powered Post Driver The Tippmann Propane Hammer HD edition is new and improved. Now made with a steel tube it is guaranteed to stay cooler longer and stay true to temperature. The steel tube is a perfect seal making it perform at optimal levels. Only a standard tank of propane required. No hoses, no air compressors, no skid loaders and no high maintenance due to a gas engine. With a press of a button the propane hammer will drive up to 75 t posts and 150 u channel posts off one a single tank of propane. The hammer has a rechargeable battery and when fully charged it will operate for up to 24 working hours. The hammer is a one man operation weighing in at 52 lbs. It reduces the roadside footprint making sign installation very quick because of no set up required. The propane hammer can drive any post with our variety of adapters. Custom adapters are always available.

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STATE OF THE INDUSTRY | ROAD

ONGOING LABOR SHORTAGE Seventy-eight percent of construction firms report they are having a difficult time finding qualified workers. The industry is going to have to make some serious changes in order to attract workers to these careers. Mortimer: The USG and U.S. Chamber of Commerce Commercial Construction Index found that though demand for new projects increases, a majority of contractors struggled to find skilled workers in 2017. If we do not expand the construction workforce, it will be impossible to move ahead with the infrastructure projects we need. Congress and the administration can help address the worker shortage. A recent example is the Carl D. Perkins Act, which was reauthorized earlier this year. Policymakers should also modernize America’s apprenticeship system, leverage the Workforce Innovation and Opportunity Act to expand the national network of sector-based construction partnerships, and keep the skilled workers who are already in the workforce thanks to programs like DACA and TPS. Copeland: At NAPA, we’re developing a national strategy to address the skilled labor shortage that will serve asphalt contractors. Over the next year, we will be educating our members and raising awareness on the issue. In order to fully address the challenges, we are going to have to understand the causes and issues within our industry, so a major part of our strategy will be market research, which then can be used to further develop our strategy and communicate with the potential workforce the many opportunities for good-paying jobs and life-long careers in the asphalt industry. We will also harness the power of collaboration and partnerships with other organizations... to expand our

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reach and amplify our efforts. One key, highly successful initiative implemented in 2018 was the creation of the Women of Asphalt (womenofasphalt.com), an industry-wide initiative to empower women to consider the asphalt industry for their careers and educate them on the opportunities within our industry.

as a potential career. NAPA, with the help and support of APAI, attended the FFA’s annual convention in Indianapolis. More than 65,000 young people raised in farming communities across America attended the meeting, providing NAPA and asphalt contractors an opportunity to introduce [them to] the asphalt pavement industry...

IF WE DO NOT EXPAND THE CONSTRUCTION WORKFORCE, IT WILL BE IMPOSSIBLE TO MOVE AHEAD WITH THE INFRASTRUCTURE PROJECTS WE NEED. ED MORTIMER,U.S. CHAMBER OF COMMERCE Asphalt pavement associations on the state level have had success in three key areas: career communications that highlight the opportunities in our industry, apprenticeships and student competitions. It’s also been identified through these efforts the importance of exposing middle school and high school kids to the opportunities our industry offers. We need to do a better job reaching out to guidance counselors that can inform children and young adults that trade work such as the asphalt industry can lead to a fruitful career. The Asphalt Pavement Association of Indiana (APAI) has done a fantastic job of building connections with high schoolers that are members of the FFA (FFA.org) to highlight road building

NAPA also be hosted an Ag2Asphalt Career Day at World of Asphalt in February. FFA students were able to see construction equipment and the latest technologies at the show, and equipment manufacturers have planned a full day of hands-on learning for the students. Basu: Apprenticeships represent a key avenue to career preparedness and the American middle class. The current administration in Washington, D.C. has become neatly aligned with the apprenticeship movement. In June 2017, President Trump signed an executive order entitled “Expanding Apprenticeships in America”, doubling the annual funding for apprenticeship grants from $90 million to $200 million in the process.

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3/14/19 10:54 AM

MANUFACTURER PROFILE Advertisement

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Sullivan-Palatek Inc., a leader in innovation and design, offers the industry’s widest range of portable diesel and industrial electric rotary screw air compressors. From humble beginnings in 1984, Sullivan-Palatek has grown from providing engineering services to existing clients, to a company that manufactures the most rugged and reliable machinery available in the market. Assembled right here in the USA, Sullivan-Palatek products are as dependable as the people that build them. For the Rental Industry, Sullivan- Palatek’s wide range of portable diesel products are ideal for any project. Tier 4 Final available for all our models, they range from 110-1800 CFM, with pressures up to 500 psi. Sullivan- Palatek will even build them to meet your specific needs for your market, there’s nothing cookie cutter about them. Sullivan-Palatek equipment and service are dependable by design.

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MARCH 2019

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STATE OF THE INDUSTRY | ROAD

Since that signing, there have already been a number of positive indications. Bloomberg BNA reports that the Employment and Training Administration (ETA) has taken the lead on implementing the President’s plan. The ETA is working to streamline the processes third-party groups, including unions and trade groups, have to navigate in order to initiate accredited apprenticeship programs. Coughlin: The lack of skilled workers affects contractors’ ability to complete work on a timely schedule. Wages are increasing to be able to compete for skilled labor, which creates an even greater need to properly fund the HTF. Therefore, contractors are engaged in education and making efforts to get vocational programs back into the education system.

NEED FOR TECHNOLOGY ADOPTION A 2017 survey conducted by KPMG found that while 72% of the engineering and construction executives surveyed stated technological innovation played a role in their company vision, less than half had a clear strategy in place to integrate those advancements. Copeland: It has been established that the labor productivity growth in the construction industry lags that of manufacturing and the total economy. According to a report by Balfour Beatty, productivity in the global infrastructure sector has remained static at 1% for the past 20 years. With this, profit margins are very thin and we’re facing a critical skills shortage due to a “low tech” image. According to a report by AECOM, we are facing an “innovation deficit.” The concern is that the infrastructure industry has not fully embraced new technologies and is not evolving fast enough to meet the changing needs of society.

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In 2019, we’ll likely see continued advancements and implementation of intelligent equipment that can sense and provide real-time information to contractors. Our members report implementing fleet management technology for fuel savings and safety and collecting data to improve operations. We will also continue to see advances in work zone safety such as intrusionsensing technology, remote flagging and autonomous truck-mounted attenuators that can be implemented to keep our workers safe in the work zone.

aware of struggles that might lie ahead. Basu: There are looming threats to the economic outlook. Contractors should be aware that recessions often follow within two years of the peak in confidence. In 1999, the U.S. economy was booming. That year, the economy expanded 4.8%. Within two years, the nation was in recession after the dotcom bust of 2000. This is not to suggest that recession is necessarily coming in late 2019, 2020 or 2021. This is merely to suggest

Worawee Meepian/ istock/Getty Images Plus

THE CONCERN IS THAT THE INFRASTRUCTURE INDUSTRY HAS NOT FULLY EMBRACED NEW TECHNOLOGIES AND IS NOT EVOLVING FAST ENOUGH TO MEET THE CHANGING NEEDS OF SOCIETY. AUDREY COPELAND, NAPA Coughlin: Most contractors see the benefit of technology to their bottom line and quality control by implementing technology as soon as it becomes available to the private sector. Technology like equipment maintenance tracking, estimating, intelligent compaction and automated grade control have been implemented for years. Most recently, total autonomous excavation sites are coming to the private sector.

LONG-TERM THREATS Despite the confidence in the economy, contractors need to be

that contractors should be wary and should remain vigilant with respect to cash flow management and balance sheet health during the year ahead. It is conceivable that falling asset prices in 2019 and/or 2020 could trigger the next economic downturn shortly thereafter. But there is also the possibility that outcomes will turn out better than anticipated. Should the federal government be able to structure a meaningful infrastructure deal, it could unleash even faster economic growth and the long-awaited surge in worker productivity.

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3/14/19 10:54 AM

MANUFACTURER PROFILE Advertisement

LEADING MANUFACTURER of Mobile Elevated Work Platforms Haulotte is a leading manufacturer of mobile elevated work platforms (MEWPs) with locations across the globe. With 7 product ranges and 3 telehandler product ranges, Haulotte strives to manufacture products with the customers’ needs in mind. Haulotte recently announced that all future self-propelled booms will be electric powered. This new ‘PULSEO GENERATION’ line encompasses the company’s dedication to innovation and their new electric-centric strategy. Haulotte is the first MEWP

manufacturer to commit to fully-electric powered platforms. The HA61 LE PRO, the first of PULSEO line, was recently debuted in the U.S. at the ARA show. It features dual load capacity, non-marking tires for indoor use, and 4-wheel drive for rough terrain use. It also features Haulotte’s latest safety innovations: the Activ’Lighting system, Activ’Shield Bar 2.0, Activ’Screen, and the latest, Activ’Energy Management smart battery management system.

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MANUFACTURER PROFILE

SUPPORTING AERIAL RENTAL COMPANIES Chances are if you work with aerial lifts, youâ&#x20AC;&#x2122;ve heard the term reconditioned. Precision Components - an Iowa LLC supports aerial rental companies with quality aftermarket replacement parts.

S electing where and how to purchase aftermarket parts can be a challenge for equipment owners, and the option of buying factory original, new aftermarket, or rebuilt parts only adds to the complexity of

the decision-making process. Like all machine purchases, factors affecting parts acquisitions include availability, cost, warranty, equipment age, and owner preference. The hunt typically begins with finding a reputable and reliable supplier, which may be the original equipment manufacturer, an equipment dealer, or a third-party vendor. Precision Components offer OEM manufactured or sourced aerial lift replacement parts for JLG, Skyjack, Genie and Snorkel machines, always having an assortment of the most commonly used aftermarket parts in the aerial lift industry in stock. Having more than 120 years of aerial equipment engineering, manufacturing, and maintenance experience, Precision Components is committed to helping our partners reduce their growing repair and maintenance expenses. A newly expanded state-of-the-art facility boasts the latest in manufacturing technologies. With a wide variety of replacement parts to choose from, Precision Components strives to help rental companies meet the needs of their clients and the industry.

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CONSTRUCTION SUPPORT

EQUIPMENT

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

TELEHANDLERS

REACH FURTHER Into High-Capacity & Compact Size Classes Today’s machines rival skid steers and wheel loaders on today’s jobsites

The Gehl RS4-14 is the most compact model in the Gehl lineup, boasting a lift capacity of 4,400 lbs. and a lift height of 14 ft. 3 in. and outreach of 9 ft.

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elehandlers are arguably the MVP of the jobsite, always Johnny-on-the-spot, capable of lifting, loading, picking, placing and more. Recently, we’re seeing expansion on both ends of the size spectrum with new high-capacity and compact models being introduced. We talked with several leading manufacturers to get a sense of why these telehandlers categories are growing. Following is that discussion.

Q Why are we seeing so much expansion on the high-capacity side of the telehandler range?

A: JOHN BOEHME, telehandler product manager, JLG: I think it has a lot to do with the size of the work. We’re talking about large industrial projects where the building materials coming in are much larger. And there are other applications that are growing, like solar and wind power, as well as energy exploration and extraction, where you have heavy components that need to be moved to the worksite, sometimes over fairly long distances. These high-capacity machines are very well suited for that kind of work.

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3/14/19 2:59 PM

MANUFACTURER PROFILE Advertisement

Electric Eel Manufacturing, based in Springfield Ohio has been a major supplier of quality sewer and drain cleaning equipment since 1939. Originally known for our Model C dual cable sectional drain cleaning machine, we have continually expanded our line of products over the years. Our product line now includes sectional and drum drain cleaning machines, high pressure water jetters, gasoline powered municipal sewer cleaners and pipeline inspection camera systems. This full range of equipment is the industry standard for quality and professional design. We are committed to providing the industry’s highest quality at competitive prices. Along with this commitment to quality, is our dedication to service and support for all our customers and distributors. We are your complete source for Drain and Sewer Cleaning Equipment from Drainlines to Mainlines!

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Compact, durable and affordable, the ACE 2 features 1-touch USB recording, an on-screen footage counter, and a wheel kit for easy transport and maneuverability. Rugged stainless steel housed 1.68” dia. color camera for inspecting 3”–10” lines. Sapphire lens with 20 LED light ring and high resolution CCD element. Flexible camera spring designed to navigate 3” P-traps. Auto iris adjusts lighting automatically. Industry standard 512HZ sonde. 5.4” LCD monitor with AR film for optimal viewing in sunlight. Video output jack for recording option. 200 Ft. of braided Fiberglass premium 1/2” dia. push rod. Secure-locking reel brake and a heavy-duty screen cover.

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MARCH 2019

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CONSTRUCTION TELEHANDLERS SUPPORT

EQUIPMENT FEATURE

A: STEVE KISKUNAS, product manager - telescopic handlers, Manitou Group: Contractors are always searching for new methods to improve jobsite efficiency and productivity. The high-capacity telescopic handler can do a wide range of highcapacity material pick and placements without needing a high-capacity crane. Manitou offers models with 20,000 to 72,000 lbs. pick-and-carry capacities. A: JOSH TAYLOR, Genie product manager, Terex AWP: The market size in North America for high-capacity telehandlers has shown steady growth in the last five years. Some manufacturers are just now starting to fill out that side of their portfolio, whereas Genie has made a commitment to this market since 2014 when the Genie GTH-1256 model was introduced.

A: BRADEN SPENCE, product manager, telehandlers, Skyjack: The 10,000-lb. capacity telehandler with a 56-ft. lift height has proven to be the bread and butter within the telehandler rental market, but due to lifting capabilities and available options, there’s a great opportunity for

Why rent anything else?

high-capacity telehandlers to displace other equipment lines on a jobsite. For instance, when operating Skyjack’s ZB2044 equipped with its Hydraulic Winch option, the ZB2044 is capable of displacing the need for a RT crane which was previously used for pipeline work ,equipment maintenance, framing and loading/unloading equipment or materials.

Q Regarding compact

models, why are these machines getting so much attention right now?

A: SPENCE: Compact telehandlers are very versatile, the options are endless. With a skid steer attachment plate, a compact telehandler can use the majority of all skid steer attachments up to its auxiliary hydraulic

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MANUFACTURER PROFILE Advertisement

CELEBRATING

60 YEARS

Celebrating its 60th anniversary this year, Snorkel has been producing one of the largest ranges of safe work at height solutions since 1959. With platform heights ranging from 6 ft. 6 in. to 132 ft., the Snorkel product range includes electric and diesel scissor and boom lifts, as well as towable booms, mast lifts, and material lifts. More recently, Snorkel has added a line of compact rough terrain telehandlers to its range, including the Snorkel SR5719, SR630, SR9244, and SR1054. At World of Concrete 2018 in Las Vegas, Nevada, Snorkel debuted a new compact telehandler for the US market, the Snorkel SR5719. The Snorkel SR5719 can lift a load capacity of up to 5,732lbs (2,600kg) and can reach heights of up to 19 ft. (5.8m) with a maximum forward reach of 10 ft 4 in. (3.2m).

Just a year later, at World of Concrete 2019, Snorkel showcased two new large rough terrain telehandlers, the new Snorkel SR9244 and SR1054. The Snorkel SR9244 delivers a lift capacity of up to 9,260 lbs. (4,200kg), a maximum lift height of 44 ft. 4 in. (13.5m) and a forward reach of 31 ft. 2 in. (9.5m). The larger SR1054 delivers a lift capacity of up to 10,000 lbs. (4,535kg), a maximum lift height of 53 ft. 9 in. (16.4m) and a forward reach of 41 ft. 4 in. (12.6m). To minimize total ownership costs, Snorkel telehandlers are designed to be simple, robust, and reliable. All Snorkel lifts and telehandlers come with a five-year structural warranty, plus a two-year warranty for parts and labor.

For more information about the new Snorkel telehandlers, visit https://www.snorkellifts.com/telehandlers.

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CONSTRUCTION SUPPORT TELEHANDLERS

EQUIPMENT FEATURE

flow capabilities. With the addition of the skid steer attachment plate, a compact telehandler really rivals a skid steer in terms of versatility. It’s ground engaging, can lift material to height and can maneuver efficiently in very tight spaces. A: TAYLOR: Compact models have a more accessible acquisition price, and they typically are extremely versatile machines, which means utilization is high. The Genie GTH-5519 model is a market leader in the compact space, and it is hard to think of a jobsite where this particular model could not be utilized. A: BOEHME: We’re seeing compacts popping up everywhere, especially in suburban and urban jobsites, simply because of space restrictions. It’s the same with some residential work. Take the

landscaping/hardscaping market, for example. A 5,500-lb. capacity machine has enough capacity to get the job done. The next machine up is a 6K and it’s twice the size. I think there’s some realization that these smaller machines have plenty of capacity and they can really get in and out of tight spaces.

Q What is the target

application for compacts?

A: TAYLOR: Our target customer and application has consistently been

Skyjack’s “Little Big Cab” compact telehandler, the SJ519 TH, uses skid steer attachments, with the addition of a skid steer attachment plate, for maximum versatility.

construction rental. Most telehandlers being used on sites are rented. Genie aerial lifts are distributed through rental channels, so for our business model, it is a natural fit for telehandlers to be distributed in the same way. It is hard to imagine these broadening their applications any wider. Telehandlers are typically the first

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3/14/19 2:59 PM

MANUFACTURER PROFILE Advertisement

RENTAL FOCUSED, RENTAL STRONG:

PERKINS PROVIDES PERSONALIZED SUPPORT When you collaborate with Perkins, you’re not alone. Through the Perkins Rental Support Program, our highly-skilled maintenance and service experts help you meet your needs with personalized support that provides genuine parts and next-day delivery (in most locations). Coupled with training, electronic tooling, diagnostic capability, direct warranty claims submission and more, Perkins Rental Support Program helps lower fleet maintenance costs, drive ROI and increase your bottom line. Perkins engines are time-tested and backed by our knowledge and expertise. For more than 85 years, Perkins has manufactured over 21 million engines for 5,000 machine applications with range spanning from 5 to 2800 hp (4 to 2000 kW), meaning there’s a Perkins engine that’s fit for your needs.

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CONSTRUCTION TELEHANDLERS SUPPORT

EQUIPMENT FEATURE

machine on the site and one of the last machines off the site. In Europe, there is a well-developed agricultural telehandler market segment. These machines are as common on farms as the traditional tractor. This market has not yet developed in North America, although we occasionally receive inquiries about agriculture applications. There’s also an emerging customer base in utility work, although the specification for machines in this segment typically requires a high degree of customization or upfitting. Additional opportunities may present themselves in the future, but the market is so well developed in its present state that it is challenging to identify any specific applications or site types that do not already utilize these machines. A: KISKUNAS: Our super compact models are focused generally in the construction rental industry. Manitou launched the MT 420 super compact telehandler last year to great success. These units are designed to be easy to transport and use with the comfort of a full-size operator’s cab on a machine that is less than five feet wide.

Q What makes the highcapacity and compact classes of telehandlers good choices for rental?

A: KISKUNAS: The high-capacity telescopic handlers are still a new trend for contractors. Many contractors would

like to try the concept out before making a large financial investment. Rental allows contractors to try the equipment for specific projects and determine how the equipment can reduce their material placement costs. This is generally good for rental companies, as the high-capacity telescopic handlers tend to go out on long-term rentals where both rates and utilization are high.

Q What are some

predominant design trends in today’s telehandler models across all sizes?

A: BOEHME: A telehandler is always referred to as the Swiss army knife of a jobsite because it’s typically the first machine on the site and the last machine off. They’re expected to be able to do a number of jobs, so with that expectation from the user, the more attachments, the more tools, the more solutions you can give them, the better. JLG takes that very seriously and is continuously developing new solutions to allow the end user to do more things with one machine. Next is comfort, because if an operator is comfortable and confident with the equipment, they’ll be more productive. Is the machine comfortable to use for eight to 12 hours a day? And is it safe? Is there good visibility around the machine, and features that assist in making sure the operator has high awareness of what’s around them at all times? For the owner, it’s serviceability. How quickly can I perform the

maintenance and get it back to work? Machines built on the JLG brand platform have a side engine, and that’s important because it provides ease of access to all service points. A: SPENCE: At Skyjack, throughout product development, we ensure that serviceability is a major focal point of product design. Whether it’s Skyjack’s new compact SJ519 TH or the larger telehandlers, it is critical to provide the rental house with a machine with all major service points easily accessible. Telehandlers are in high demand and as a manufacturer, it is our job to provide telehandlers that decrease downtime so rental houses can continuously support such high demand. A: TAYLOR: One technology that is being adopted industry-wide, across all rental products, is telematics. Telematics allows the fleet owner to see real-time data about the machine while it is on the site. This improves the rental house’s ability to track service and maintenance needs, optimize delivery and pickup routes and generally become more efficient in a way that was not possible before. Many large rental companies have already taken advantage of this technology, and adoption is becoming more widespread among independents and smaller rental houses. A: KISKUNAS: In the rental market, we are seeing greater use of telematics systems and rental companies leveraging the data available from these systems to improve their operational efficiency. Manitou telescopic handlers have an optional Easy MANAGER telematics system for remote machine monitoring that allows customers to increase uptime, improve security and anticipate maintenance. Compact telehandlers are designed to be easy to transport and use with the comfort of a full-size operator’s cab on a machine that’s only about 5 ft. wide.

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MANUFACTURER PROFILE Advertisement

1939-2019:

CROFT TRAILER SUPPLY’S 80TH ANNIVERSARY Over the last 80 years Croft has grown to a national brand, but still keeping the same small family atmosphere. We maintain this through exceptional customer support, supplying the towing industry with high quality products (like our rental tough cast steel couplers and rings), our premium craftsmanship trailer manufacturing, and innovative test and towing equipment. As we celebrate our anniversary, we realize our success comes from our customers. Thank you for stopping by our ARA booth in Anaheim. We are proud to have supported our customers and the rental industry over the 61 years we have exhibited at the ARA show. If you missed us this year, there is still time to take advantage of our show specials through April 1st. Simply call one of our friendly, knowledgeable customer service reps, or find everything you need on our easy to use website. Just check out with code “80ARA19” to receive show special pricing.

BE PART OF THE

L egacy A Closer Look

Since 1939, Croft Trailer Supply has brought you the safest & most versatile rental tough trailers. With one of the longest lasting & most durable trailers on the market, Croft invites you to be part of the tradition.

CROFT TRAILER SUPPLY, INC. www.CroftTrailer.com | (800) 426-8159

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MANUFACTURER PROFILE Advertisement

PRESS CONFERENCE ON THE

GLOBALIZING CHINESE CONSTRUCTION EQUIPMENT INDUSTRY Over the past decade, Chinese infrastructure construction including transportation, energy and municipal facilities has ranked highly for quality and efficiency in many projects built around the world. Many of the builders of these projects have utilized Chinese-made construction machinery, which offers not only competitive price but also great performance. There are more than 20 leading manufacturers in China, including XCMG, Zoomlion, Sany, LiuGong,

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Shantui, SinoMach, Sunward, NFLG, Yongmao, CRCHI, CREEG, who produce a wide range of lifting machinery, earth-moving machinery, concrete machinery, road building machinery and tunnel machinery, which has played a significant role in infrastructure construction in China as well as Asia, Africa, Latin America and Middle East. Attending the press conference, you will have opportunity to interact with CEO & VIP of leading Chinese manufacturers face to face.

SUPPORTER: Ministry of Commerce of the Peopleâ&#x20AC;&#x2122;s Republic of China ORGANIZERS: China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) & China Construction Machinery Association (CCMA) DATE: Monday, April 8, 2019 TIME:11:30-14:00 VENUE: Meeting Room C54 (2nd Floor of Hall C5), Messe Munchen EMAIL: int.coop@cmtm.com.cn

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PRODUCT ROUNDUP // PUMPS

 Generac Water Pumps Generac offers four water pump designs featuring low-oil shutdown, color-coded suction and discharge ports to ensure proper connections and the Easy Prime funnel (ST20-S, CW10K and CW20) for an easy start-up process. • ST20-S 2-in. semi-trash and T20-S 2-in. trash pumps feature Subaru engines, a 3-gal. fuel tank, 1-in. frames and silicon carbide seals • ST20-S pumps up to 158 gpm and handles jobs needing small particulates removed • T20-S pumps up to 185 gpm and can handle particulates up to 1 in. • CW20 2-in. clean water pump has a 208cc engine and displaces up to 158 gpm, while the 16.5-lb. CW10K 1-in. pump displaces up to 30 gpm

 Wacker Neuson

PT 6 Self-Priming Centrifugal Trash Pump

www.forconstructionpros.com/12194619

 Tsurumi Model HS2.4S-62

The Wacker Neuson PT 6 self-priming centrifugal trash pump provides fast, cost effective pumping solution for larger jobs.

Tsurumi’s model HS2.4S-62 is specially designed to handle aggressive dirty water pumping projects often found in rental/ construction dewatering applications. • Designed to pump sand, solids and debris with minimal wear and clogging

• Moves water up to 1,300 gpm (4935 l/min) containing solids up to 2-in. (50mm)

• Pumps a maximum of 50 gallons per minute

• Cast ductile iron pump housing, impeller, wear plate and volute for long, trouble-free service life

• All Tsurumi electric submersible pumps are built for continuous duty with 100% copper motor windings

• Mixed flow impeller design produces high volume and head for increased pump capacity

www.forconstructionpros.com/12038203

• Oil-lubricated silicone carbide seal reduces maintenance and provides seal protection • Discharge elbow rotates 360 degrees to accommodate various discharge angles • Automatic engine shutdown protects engine from damage due to low oil pressure or high cylinder temperature • Liquid-cooled Tier 4 diesel engine enhances reliability and provides cleaner emissions www.forconstructionpros.com/20994604

 BJM XP-KZN Submersible Slurry Pumps The XP-KZN heavy-duty submersibles are designed for tough conditions where explosion-proof, FM, C/US-approved (Class I, Division 1, Group C & D) are needed. • Provide up to 665 gpm and heads to 61 ft. • Feature a top discharge, slim-line design with agitator to suspend heavy slurries coal, ash, sand or gravel • Impeller, wear plate and agitator made of abrasiveresistant, 28% chrome iron (600 Brinell, 57 Rockwell C) • Protected by Class H motor insulation and built-in amperage ( FLA ) and temperature overload protection • Feature double silicon carbide mechanical seals in a separate oil-filled seal chamber and a heavy-duty lip seal www.forconstructionpros.com/12222163

 Honda WMP20X Chemical Pump Honda’s new WMP20X is designed to pump various industrial and agricultural chemicals in addition to clear water applications. The WMP20X model features EPDM seals for chemical resistance, a reinforced thermoplastic pump housing and impeller as well as full frame protection with vibration-damping mounts. • 2-in. pump features a Honda commercial-grade four-stroke engine with Honda Oil Alertâ to provide outstanding performance for chemical applications

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• Multi-purpose, centrifugal self-priming 2-in. pump

• Full frame protection

• 220-gal/min capacity

• Isolation mounted engine and pump

• Thermoplastic pump housing and EPDM seals

www.forconstructionpros.com/12211261

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MANUFACTURER PROFILE Advertisement

GENERAL PIPE CLEANERS

KEEPS DRAIN CLEANING RENTALS PROFITABLE “When you’re renting drain cleaning equipment nearly every day, you need tough, reliable machines.” So says Von Hunn, owner of Garden True Value Hardware, Garden City, KS – serving residential and commercial rental customers in southwest Kansas. And drain cleaning forms a “significant” slice of his business.

“Easy” Choice That’s why Hunn chose General Pipe Cleaners’ range of drain cleaning equipment – with Easy Rooter™ for his flagship machines.

Easy to transport, use and maintain, rugged Easy Rooter brings heavy-duty performance, superior reliability and excellent safety features to a wide range of rental requirements. Built tough for maximum turns and minimal down time, the Easy Rooter features powder coated steel frame with “roll bars” protects the motor, 10” heavy-duty wheels roll easily to the job, and a folding handle for easy loading into cars. So rental facilities enjoy maximum performance, longer life and greater efficiency – even under demanding rental conditions. Hunn calls Easy Rooter “easy to demonstrate and safe to use.”

Bottom Line Most importantly, Hunn says, Easy Rooter – like all his G enera l equipment – works.

“I can’t remember ever having a problem with it – and it’s used for all sorts of drain cleaning jobs!” Hunn calls it “excellent” for unclogging severe stoppages from 3” through 10” lines. The large steel cage carries 100 ft. of 3/4” or 5/8” Flexicore®* cable. “Flexicore® is another reason why General is so crucial to the success of our drain cleaning rental business,” Hunn says. Heavy-duty wire tightly coiled around 49-strand aircraft-type wire rope, Flexicore® offers superior strength, kinking resistance, and flexibility. Flexicore® cables carry a one-year warranty against defect or breakage – the industry’s best. “We prefer General to other brands,” Hunn concludes. “Our customers are satisfied, and so are we!” General Pipe Cleaners, a division of General Wire Spring Co., is a leading manufacturer of high quality American-made drain cleaning equipment. In business since 1930, the third generation family-owned company is celebrating nearly 90 years. The Toughest Tools Down The Line. *“Easy Rooter” and “Flexicore” are trademarks of General Pipe Cleaners, a division of General Wire Spring Co.

TO LEARN MORE about General’s complete line of drain cleaning machines for the rental industry, visit www.drainbrain.com/ rental, or call the Drain Brains® at 800-245-6200 or 412-771-6300.

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PRODUCT ROUNDUP // PUMPS

 Xylem’s Godwin Field Smart Technology (FST)

Xylem’s Godwin Field Smart Technology (FST) and Godwin PrimeGuard 2 controller provide contractors working in remote locations with crucial pump operating data that can significantly reduce or eliminate the need for expensive, onsite personnel to monitor pumps manually. Xylem’s Godwin PrimeGuard 2 is a fully programmable microprocessor engine control system that allows for inputs from flow meters, level transducers, pressure transducers or standard floats. Using the data from any of these systems, Godwin Dri-Prime pumps can be programmed to start/stop automatically with no operator intervention required. Used in tandem with PrimeGuard 2, FST is a premium solution for any contractor. • FST can monitor engine, motor, and pump operation conditions (e.g. operating hours, speed, engine temperature, and fuel consumption) as well as pump parameters such as suction and discharge pressure, sump level, and flow data. • Pump data can be accessed remotely from any device in the world with an internet connection. • FST enables the operator to remotely start, stop, and set engine speed, and alarms can be set to alert for operating or performance failures. www.forconstructionpros.com/12315745

 Hydra-Tech S3SHR Hydraulic Submersible Shredder Pump

The Hydra Tech S3SHR hydraulic submersible shredder pump is designed to continuously rip and shear solids with a 360° shredding action for municipal, industrial, agricultural and institutional waste applications. • Smaller size allows for use in tight spaces • Guide rail assembly is available for stationary applications • Dual-vane shredder impeller with tungsten carbide cutting tip • Hardened macerator suction plate • Oil lubricated seals (can run dry) • Variable speed hydraulic drive to 3,800 rpm • Versions for portable or fixed Installations • 6 - 10 GPM

 Chicago Pneumatic Electric Submersible WEDA Pumps

Chicago Pneumatic Power Technique (CP) has introduced five new electric submersible pumps to the North American market. WEDA pumps are ideal for dewatering of construction sites, mines, flooded areas and more where small, lightweight, portable and easily maintained pumps are required to perform daily jobs quickly. • Designed for handling liquid with abrasive particles • 66-ft. submersible depth • Pumps include WEDA 10, 30, 40, 50+ and 60+ • Wear resistant wet end in CR-alloy steel and natural rubber • Adjustable wear parts • Complete seal pack • Built-in capacitor and contractor www.forconstructionpros.com/21015291

www.forconstructionpros.com/20994610

 Gorman-Rupp ValuPrime Centrifugal Pumps The ValuPrime line of priming-assisted centrifugal pumps consists of cost-effective compact pumps for dewatering needs in construction, industrial and agricultural markets. • Flows to 1,520 gpm and total dynamic head to 150 ft.

PRODUCT INFO?

• Model sizes include 4” x 4” and 6” x 6”

USE THE EIGHT-DIGIT CODE

• Solids handling capabilities up to 3 in. • Standard with 34-gal. fuel tank, programmable control panel and Isuzu Tier 4 Final diesel engine www.forconstructionpros.com/20991145

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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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MANUFACTURER PROFILE Advertisement

Oztec introduces a

NEW & IMPROVED PADDING AND STRAPPING SYSTEM for their Backpack Concrete Vibrators The improved padding and strapping system was designed to meet the needs of concrete contractors. We have added wider shoulder straps with generous sewn-in-place padding to distribute weight more evenly. Our quick adjustment buckles allow users to easily fit the straps to their individual needs, reducing fatigue and downtime on the job. The back pad has been upgraded to span the full length of the backpack with thicker, more comfortable padding. We have done all of this while maintaining a system that is rugged and easy to repair. Powerful, portable, and reliable, the Oztec BP-50a backpack concrete vibrator provides contractors with incredible maneuverability on the job. Utilizing rugged and dependable Honda gasoline engines, coupled to our speed up transmission, vibrator heads develop 12, 000 vpm and never drop below 10,000 vpm, even in low slump concrete. The BP-50a Backpack concrete vibrator is equipped with a patented totally enclosed rotary throttle allowing the operator to comfortably control the engine while preventing wet concrete from entering and clogging the throttle mechanism. A kill switch is located on the same handle. The patented rotary throttle has been specifically designed and engineered to eliminate the operatorâ&#x20AC;&#x2122;s variable setting of the engine speed. This feature will ensure that the unit will consistently produce the proper vibrations per minute resulting in optimum concrete consolidation.

Contact Oztec at: 1-800-533-9055, mail@oztec.com, www.oztec.com

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EARTHMOVING

FEATURE

By Cur t Bennink, contributing editor

Compact Excavators Adopt BIG MACHINE FEATURES Advanced features of larger machines are finding their way into a smaller package

or the past decade full-sized excavators have adopted new technologies and features that make them more productive and fuel efficient. Now many of these features and technologies are trickling into the compact excavator market. “More and more often compact excavators are being tasked to do the job of their larger counterparts, so they are equipped with greater hydraulic flow for improved hydraulic attachment/tool versatility, larger better-equipped cabins and fleet management/telematics to help manage machine location, usage, downtime, etc.,” says Lee Padgett, product manager, Takeuchi-US. Comfort features from full-size machines are also trickling down into compact excavators. “It was not that long ago that none of the compact

excavators had air conditioning,” recalls Tom Connor, product manager, Bobcat. “Now it is a fairly high take rate as far as a factory option.” Cabs have also continued to grow. “When the zero tailswing craze took off 15 years ago, one of the quick ways to help get to zero tailswing was to shrink the cabin space.” In the last five years, creative engineering has gained back space for the operator. “We were able to get about an inch and a half more in width of the cab, which doesn’t sound like a lot, but in a cab that size, it is actually quite noticeable. It allows us to put a wider seat in the machine.” Bobcat offers several seat choices tailored to customer requirements. “For the R Series, the standard seat

is a vinyl suspension seat on an open canopy machine,” says Connor. “But you can option that up to a cab with heat and air that comes with a cloth seat, which is a nice upgrade, especially in the hot weather.” You can even go above that and order a heated cloth seat in the cab-enclosed options. According to John Comrie, product manager, compact equipment, Volvo Construction Equipment, larger cabs and air conditioning allow operators to focus more on the work with less fatigue, potentially extending the working season. “Many of Volvo’s compact excavators, like the ECR88D short swing model, offer the same features and spacious cabs found on our full-size machines,” he notes. Compact excavators increasingly have not only more cab space and foot room, but also storage. “Operators are often

More compact excavators are offering greater hydraulic flow for improved attachment versatility, larger better-equipped cabs and fleet management/telematics.

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MANUFACTURER PROFILE Advertisement

BARRETO MANUFACTURING, INC.

TRENCHERS What began as a revolutionary idea for a hydraulic tiller back in the 80’s has become an industry-leading product line of lawn, garden, and tree care equipment. The first product in the Barreto line of walk-behind trenchers was the all-hydraulic 1324D standard trencher introduced in 1995. Built specifically for the rental market, without belts, chains, or gears, the Barreto 1324D features a 900lb frame with a low center of gravity to provide stability. The hydraulic chain motor is attached directly to the head shaft, and the outboard bearing is designed to protect the auger shaft from bending due to impacting rocks and debris. The control panel is simple and understandable, and the safety clutch engages and disengages the wheel and chain drive. In 2005, Barreto brought the first all-hydraulic, self-propelled mini walk-behind trencher to the rental market with the introduction of the 912 Mini Trencher. Built to meet the needs of the residential contractor who may be working in tight spaces, this self-propelled trencher can easily handle sprinkler systems, electrical lines, and other shallow trench applications. The 912 saves on space while still providing the horsepower necessary to trench up to 24” deep. The boom pivot design keeps high wear components out of the dirt and is easily maintained. The front end pivots on a pin instead of a boom pivot bushing, reducing maintenance issues caused by dirt and debris. The newest addition to the Barreto family of trenchers is the 1324STK walk-behind track trencher developed in 2017 as a response to customer demand for a smaller track trencher.

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The 1324STK is a smaller, more compact machine than the Barreto large track trenchers, allowing it to fit in tighter areas, while still reaching dig depths of 24”-30”. The STK features an innovative new track system and compact frame design that provides both stability and maneuverability. The floating track system utilizes independent undercarriage idlers that move in response to the terrain. The design keeps a significant portion of the track in contact with the terrain at all times, reducing ground pressure with increasing tension. The Barreto line of walk-behind trenchers also includes the 712 Micro Trencher, introduced to the rental market in 2010m, and the RTK StandOn Track Trencher series, which was released in 2015.

See how the Barreto trencher line can help your rental business. Call us today at 1-800-525-7348 or visit www.barretomfg.com.

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EARTHMOVING

FEATURE

“FLOW CONTROL HELPS MATCH THE MACHINE OUTPUT TO THE ATTACHMENT REQUIREMENT FOR EFFICIENT OPERATION AND LONGER ATTACHMENT LIFE.”

spending an entire day inside these machines. They want to focus on their work with minimal fatigue.”

Hydraulic versatility meets growing attachment demands The ever-growing use of hydraulic attachments is helping drive the popularity of compact excavators. This means the hydraulic system must adapt to a wide variety of demands. “Flow requirements are attachment dependent,” says Connor. “What is needed for some of the attachments is a detriment to other attachments.” Many OEMs, such as Bobcat, offer the ability to tailor the flow rate to best match individual attachment flow demands. “A breaker, an auger or a plate compactor — those types of attachments typically want every ounce of flow you can get,” Connor states. “But a thumb or a clamp attachment is a little more sensitive depending upon what you are doing. Sometimes you want very precise, delicate control of a clamp attachment to grasp and release items gently, so we have the ability to back that flow off.”

JEFF JACOBSMEYER, PRODUCT MANAGER, KUBOTA Being able to make necessary hydraulic flow adjustments from the seat aides efficiency. “Adjustments that can be done from the seat are welcome features on any size machine. Flow control helps match the machine output to the attachment requirement for efficient operation and longer attachment life,” says Jeff Jacobsmeyer, product manager for excavators, wheel loaders and TLBs, Kubota. Modern control panels allow quick changeovers between attachments. “Most Kubota compact excavator models have the ability to program up to five different flow rates for specific attachments on our digital control panels,” says Jacobsmeyer. “No tools are required and this can all be done from the comfort of the operator’s seat. Simply set the required flow amounts

for up to five different attachments and, with a couple pushes of a button, hydraulic control of the attachment is set just where you need it to be most efficient. There is no need to continually adjust the flow every time you change the attachment because now there are five programmable settings stored in the dash memory.” Modern in-cab interfaces make quick adjustments to flow possible. “It’s relatively easy to offer flow adjustment on the auxiliary hydraulics with the type of hydraulic components used today,” says Comrie. “All Volvo machines above 3.5 tons have a cab interface where the operator can easily adjust the flows to suit the attachment.

While rubber tracks still dominate the market, hybrid tracks are becoming more popular.

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The same feature is available on the below 3.5-ton models, but is done mechanically from inside the cab.” Hydraulic flow adjustability will be critical as the industry adapts to newer attachment trends. “Like other construction trends that tend to start in Europe and then make their way to the U.S., we are seeing increased use of tiltrotators and we expect it to continue to gain traction in the coming years,” says Comrie. “A tiltrotator is best described as a wrist at the end of the boom. This attachment allows an operator to achieve greater flexibility for attachments, rotating them 360° and tilting +/- 45° in either direction. Equipment owners and operators who use tiltrotators tell us they would never go back to a standard bucket or pallet forks.” In response to an ever expanding array of attachments, the popularity of hydraulic-activated quick couplers continues to grow. “That is just becoming more and more commonplace. We offer a hydraulic quick-tach on our 3-ton all the way through the 8-ton [excavators] now at a pretty respectable take rate,” says Connor. “On an 8

ton, the quick-tach is almost a necessity because those attachments get so heavy. In the old days of aligning pins, you may have gotten by with it on a 3-ton [excavator], but on an 8 ton, you don’t want to be wrestling attachments if you change more than once a week. Quicktachs have essentially been the norm

and now hydraulic powered are really coming on strong.”

Auto idle and ECO modes boost fuel efficiency Auto idle is commonplace on larger excavators. If the controls are not moved in a pre-set timeframe, the

Flexible job site performance. Merlo Telehandlers and Rotos supply the lift and capacity your customers need with lift heights up to 115 feet and operating capacities up to 25,000 lbs. Merlo designs versatility into every machine with features such as frame leveling, precision sideshift, and ground engaging capabilities. Add attachment flexibility and intuitive operator controls, and now your customers have machines delivering powerful, adaptive performance.

Merlo offers telehandlers and Rotos that fit every job specification. To find your Merlo, visit ams-merlo.com Sales / Rentals / Service / Training Dealer Opportunities / 803-327-4949 info@appliedmach.com

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EARTHMOVING

FEATURE

engine automatically transitions to idle to save fuel. On larger size excavators with corresponding larger displacement engines, this technology promises a rapid return on investment. But auto idle has been trickling down to smaller size excavators. “The average 3-ton machine on the market now has auto idle,” says Connor. Bobcat initially started offering auto idle on its Tier 4 Interim machines. Many of these were preelectronic control engines. “It required an electromechanical device to literally move the fuel rack,” Connor points out. “The advent of electronic engine controls has made it easier to add the auto idle feature.” Such features are about more than just fuel savings. “Auto idle and auto engine shutdown are useful on most compact excavators because they protect equipment from long idle times, adding value by protecting the more sophisticated exhaust emissions devices,” says Comrie. Another feature gaining traction is ECO mode. “ECO mode largely limits your high-end throttle,” reports Connor. The popularity of this feature depends on the operator. “It is appealing to some of the more progressive mentality. It is more of a fleet solution where it is mandated.” “Electronic features like auto idle and ECO modes have been offered for several years on many Kubota compact excavator models,” says Jacobsmeyer. “Today, engines that are less than 25 hp usually do not offer an ECO working mode of operation because of the lower horsepower. Machines with less than 20 hp commonly do not offer an auto idle mode feature. As the smaller models begin to adopt electronic fuel systems, features like auto idle and ECO modes may become more common because the cost of adding these features becomes less with the advancement of electronic fuel systems.” Some manufacturers offer working modes similar to those found on

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full-size excavators. “Both auto idle and multiple working modes are standard equipment on most Takeuchi excavators,” says Padgett. “With today’s fuel prices, fuel economy is a concern for operators when pricing out jobs even when using a compact excavator. Multiple working modes allow the operator to match machine performance to the job at hand while reducing fuel consumption. These features are often found on 3-ton machines and larger.”

Advanced hydraulic systems maximize available power “Another feature becoming more common on compact machines is load-sensing hydraulics, which make the machines smarter and increase their power,” says Comrie. It is about maximizing machine efficiency. “Kubota’s Advanced LoadSensing Hydraulic System maximizes efficiency by providing optimum oil flow to each cylinder,” says Jacobsmeyer. “This feature, combined with an advanced hydraulic regeneration circuit, provides the speed, precision and power that will improve cycle time and productivity. The auxiliary hydraulics provide versatility to maximize the machine potential with impressive flow amounts.”

Growth in smart technologies Depth guidance systems have gained traction in the full-size excavator market and are now starting to move into the 3-ton and larger compact excavator market. Typically, cost has been the highest hurdle to more extensive implementation. “Historically, customers were willing to spend $11,000 on a full-size excavator system,” notes Connor. “But it was hard to convince them to spend that same amount of money on a machine that costs one-third of a fullsize excavator.” Bobcat created its own depth guidance solution to address this challenge.

“We were able to incorporate it into our excavator electronic system and dash panel,” Connor explains. This reduced the investment required, and it has proven an increasingly popular option. Another smart technology making the leap from larger excavators is telematics. “Telematics systems are becoming more popular for both the owner-operator and larger fleet managers,” says Jacobsmeyer. “Geofencing, machine health and maintenance can be monitored more accurately, resulting in less downtime.” “All Takeuchi excavators come equipped with Takeuchi Fleet Management (TFM),” says Padgett. “TFM will remotely provide alerts and machine information to include location, performance and maintenance data, giving insights into where and how the machine is being utilized. This allows customers to take a wide view of their equipment and monitor the machines’ health and service needs without having to go out on the jobsite, saving time and money.” The types of information customers want varies. “There’s definitely growing interest in telematics, but how much information owners want depends on the customer,” Comrie comments. “Some want a lot of data. Others only want the basics like machine hours and location.” Telematics systems simplify tracking multiple machines when contractors have several crews working. “It becomes a challenge keeping track of machines as regular service intervals come about,” notes Connor. A telematics system allows the customer to be notified in advance when upcoming service intervals are due.

Track options move beyond rubber The vast majority of machines up to 8 tons are sold with rubber tracks since they are easier on existing landscaping and concrete compared to steel. “We do sell steel tracks on our

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3- through 8-ton excavators,” says Connor. “The steel track take rate is extremely small, but it absolutely leaps when you get to the 8-ton unit.” Customers’ desire to combine the rubber tracks’ ability to run on finished surfaces without creating jobsite damage and the increased durability and stability offered by the heavier steel tracks has led to a hybrid solution. According to Connor, there are actually two forms. One is a steel track with bolt-on rubber street pads. There has also been a growing interest in a segmented track, which is like a steel track except each grouser pad has a rubber coating. “We are seeing more demand for that on our 8-ton excavator,” says Connor. Customers have had no problem driving across improved surfaces, and they still have the peace of mind

that they will not destroy a traditional rubber track in the event they hit a chunk of rebar or concrete. Each segment can be individually replaced if damaged. Hybrid tracks can provide the best of both rubber and steel tracks. “Track pads, such as TUFPADS, which bolt onto the steel chain and allow the machine to work in all surfaces, is an option that has been gaining popularity,” Comrie indicates. “Customers are looking for ways to make their machines more versatile. These TUFPADS allow the machine to work on asphalt, concrete, gravel and most other surfaces. They also have a longer life than single rubber tracks, and the individual pad can be replaced if damaged instead of the whole single rubber track. “An added benefit is improved

stability on short radius machines,” he continues, “thanks to the added weight track pads give to the machine.”

Features also migrate up In addition to features migrating down from larger excavators, some features are actually migrating from smaller units up to the larger compact models. Two of the most notable examples are center pivot swing booms and dozer backfill blades. “The 8-ton and smaller machines have almost exclusively gone to the swing boom and to a backfill blade as standard equipment,” says Connor. “If you go back 10 or 12 years, a swing boom was a rarity on the 8-ton machines.” Some did have it as an option. “Swing booms basically have become the norm in this size machine over the course of time.”

MANUFACTURER PROFILE

PROVIDING INNOVATIVE, QUALITY EQUIPMENT THAT LASTS AND PROVIDES YOU YEARS OF SERVICE The E-Z Cable Installer from E-Z Trench is great for installing low voltage lighting and radio pet fences with minimal turf disturbance. The Model TP400CL3 Cable Installer will actually install and cover the wire in a single pass. Family owned and operated, E-Z Trench has been manufacturing walk-behind trenchers since 1982. Our mission has long been to provide innovative, quality equipment that lasts and provides you years of service. Our owner, Gail, and her sons Monty & Scotty are involved in all facets of the business. When you call our office you will likely talk with one of them. Thank you for taking the time to learn more about us. Please feel free to contact us if you have any questions or comments. (843) 756-6444 | eztrench.com

www.ForConstructionPros.com/RENTAL

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SPECIAL

REPORT

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By Jeremy Wishart, director of off-road business development at the Propane Education & Research Council

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3/14/19 11:15 AM

3 MACHINES

THAT MIGHT SURPRISE YOU

ental managers are likely familiar with propane as part of daily operations. Companies that carry consumer products as an additional source of income might rent propanepowered outdoor space heaters for events and might even offer propane refilling services on site for small consumer tanks, such as those used for grills or camping. But the fuel can also be used in a wide variety of applications for one of the largest rental equipment markets: construction. Propane is often used to fuel construction mainstays like jobsite heaters, mobile light towers, and portable generators of all sizes that keep projects moving yearround. It can also offer contractors another option for fueling scissor lifts and boom lifts, and can also be used to power dust control and mitigation units in spaces without electric utilities. In fact, a recent trend we’ve seen is brands moving away from corded equipment. For example, brands that once offered electric-only equipment are now offering engine-driven solutions, mostly powered by propane, though some are considering batteries and even hybrid options. As more and more manufacturers see the advantages of propane, too, the list of light construction equipment that can be powered by the fuel continues to grow. Here are three types of light construction equipment that rental managers may not realize can be powered by propane.

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Power buggies Power buggies are used to move materials in and out of sites, from wet cement to debris. This makes propane’s low emissions profile a major advantage on jobsites that include work indoors or in semi-enclosed spaces where emissions from gasoline or diesel would be dangerous for crews. Multiple manufacturers now include propane as an option for both tracked and wheeled buggies, allowing work to be completed in all types of terrain.

Why offering more propanepowered equipment can be an advantage for equipment rental businesses — and their customers

Power concrete trowels Commercial concrete projects, and even large residential projects, can often benefit from the speed and efficiency of a power trowel, which helps finish and polish poured concrete. It’s increasingly common to see ride-on

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SPECIAL TOPIC HERE

REPORT FEATURE

power trowels equipped with propane cylinders rather than fuel tanks for gasoline or diesel due to propane’s versatility. Like with power buggies, propane’s low emissions profile allows the equipment to be used on indoor projects. Some manufacturers have even added duel-fuel options with both propane and gasoline to allow for longer usage time between refueling in addition to flexible usage on projects with both indoor and outdoor concrete work.

COMPARED TO GASOLINE AND DIESEL EQUIPMENT, PROPANE PRODUCES FEWER EMISSIONS. THIS INCLUDES EMISSIONS OF CARBON MONOXIDE, AS WELL AS GREENHOUSE GAS EMISSIONS.

Concrete grinders and polishers Of the equipment mentioned in this article, concrete grinders and polishers are likely the most widely used. In addition to finishing concrete as part of commercial or residential construction, these machines are frequently used in renovation work and regular floor maintenance. New propane-powered grinders and polishers are safe for use indoors, and the machines often feature carbon monoxide sensors for even greater peace of mind during use. Propane-powered concrete grinders and polishers also allow cord-free operation, which can be an advantage on larger projects where there may be hundreds of feet between a machine and an electrical outlet, or in hightraffic areas where a cord can easily become a trip hazard. Propane can also power industrial vacuums used to collect concrete dust during grinder use. With propane equipment, rental businesses can also see a number of advantages for both behind-the-counter operations and for customers, including versatile uses, portable fuel, long storage life, and closed fuel systems.

The major benefits of propane Compared to gasoline and diesel equipment, propane produces

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urfinguss/iStock/Getty Images Plus

fewer emissions. This includes emissions of carbon monoxide, as well as greenhouse gas emissions. Propane equipment also emits less nitrous oxide (NOx) than equipment fueled by electricity, gasoline, and diesel. This emission can contribute to acid rain and respiratory ailments. For contractors working on sites requiring reduced emissions or near sensitive populations, such as nursing homes, hospitals or schools, the availability of propane equipment can provide reassurance. For sites that aren’t yet connected to utilities or are located beyond the electrical grid, propane also allows work to be completed without the downfalls of electric equipment. Crews working indoors don’t have to worry about trip hazards from electrical cords, and propane generators can provide power to mobile offices or charge batteries. For other equipment, propane also enables greater confidence for performance in rainy or damp conditions, as well. One example of this is propane-powered forklifts, which can be used in environments that are too humid for battery-powered forklifts. Propanepowered jobsite heaters can also keep construction moving in unfinished indoor spaces during colder weather. Propane cylinders used for construction equipment are able to be

transported to jobsites on trucks or trailers. Rental managers can establish a relationship with a local propane supplier to provide fuel solutions for short- or long-term rentals. Propane cylinder refueling or rentals could be offered on site with equipment rentals, or contractors could be referred directly to the propane supplier when more fuel is needed on a jobsite. Unlike gasoline and diesel equipment, propane doesn’t deteriorate in storage. Propane cylinders also aren’t stored on machines, whereas gasoline and diesel equipment require additional maintenance to empty fuel tanks during periods of decreased usage. This leads to faster uptime when equipment is restarted, as well. Another advantage with propane is that customers can’t inadvertently add ethanol fuel blends to fuel tanks, potentially damaging small engine equipment. Propane cylinders hook directly into fuel systems versus requiring fuel to be poured from jerrycans or other containers, reducing spills on jobsites or trailers. For more information on propane, visit propane.com. Jeremy Wishart is the director of off-road business development at the Propane Education & Research Council. He can be reached at jeremy.wishart@propane.com.

www.ForConstructionPros.com/RENTAL

3/14/19 11:15 AM

MANUFACTURER PROFILE

DEUTZ

A HISTORY OF SERVICE AND SUPPORT

TO THE RENTAL INDUSTRY

For more than 150 years, DEUTZÂŽ engines have supplied customized, cost-effective power to a broad array of machine types and market segments. In fact, DEUTZ produced its nine-millionth engine in 2015. However, while we may have manufactured millions of engines over the years, we continue to nurture an everevolving innovative spirit. That innovative spirit means that DEUTZ is always one step above the competition, developing new, more efficient engine technologies. From its headquarters in Norcross, Georgia, DEUTZ Corporation, a subsidiary of DEUTZ AG, supports a product range of 25-to-830-hp diesel and natural gas engines, serving as a sales, service, parts, and application engineering center for the Americas, employing nearly 300 people. DEUTZ Corporation also operates

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a value-added production facility for some of its key OEM customers, as well as an engine remanufacturing facility, in Pendergrass, Georgia. DEUTZ Power Centers and Service Centers were launched in 2016, serving as one-stop shops for supporting OEM partners, end users, and rental companies with quick and reliable access to DEUTZ Genuine Parts, highly trained service, DEUTZ Xchange remanufactured engines, and new engines. The company operates with the premise that productivity and profitability are on the line each day for all of our customers. Thatâ&#x20AC;&#x2122;s why every person in the organization comes to work each day with one central purpose: to help rental customers grow their businesses by providing them with the service and support they deserve.

(770) 564-7100 www.deutzamericas.com

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INDUSTRY UPDATE

Off Grid Energy Appoints ANA Exclusive Distributor for North America Off Grid Energy – Rugby, England has appointed ANA as the exclusive distributor for the North American market. Off Grid Energy manufactures a line of fixed and mobile Power Storage Machines for the fast-growing power storage market. “We are pleased to be teaming with ANA in the North American market,” says Janene Dooler, managing director for Off Grid Energy. “We were looking for a partner in the North American market who is aligned with our company values and commitment to the product and we have found that in ANA.” “ANA is excited to be teaming with Off Grid Energy”, said Mike Niemela, CEO for ANA. “Off Grid Energy and their line of products fits perfectly with our strategy to provide top quality international brands access to the North American market. We are also excited about the opportunity to tap into new markets where Off Grid Energy has seen success in the UK.” “We believe our mobile line of products known as ‘Grid to Go’ is well suited for the North American market,” said Danny Jones – managing director at Off Grid Energy. “Grid to Go can be used in conjunction with diesel generators and other power sources to help reduce carbon emissions, eliminate noise pollution and improve diesel generator performance. Over the past eight years we have been working with many [rental] companies in the UK to provide solutions for construction applications and ANA gives us immediate access to this customer segment in North America.”

TRACKUNIT LAUNCHES ELIMINATE EQUIPMENT DOWNTIME 2025 MOVEMENT Trackunit, a leading global innovator of telematics technology, has announced the launch of an industry-wide mission to eliminate downtime. The ambition of the movement is not only to recover the billions lost through budget and schedule overruns but also to re-establish the reputation of the industry for innovation and leadership. With the publication of an open letter to construction, Trackunit CEO Jorgen Raguse said, “Downtime is the mother of all of our problems. It affects every corner of the industry, from broken promises to broken processes, from missing tools to broken equipment.” In launching Eliminate Downtime 2025, Trackunit has called out for individuals and organizations to share ideas, big or small, to increase the efficiency of construction. The suggestions will be curated and consolidated as a white book made available at the end of 2019.

For more information, visit www.forconstructionpros.com/21048595

Generac Mobile Products Unifies Brands Under New Brand Generac Mobile Products, Magnum, MAC and Tower Light are now under the new brand Generac Mobile. The move is part of the company’s commitment to provide mobile equipment and solutions designed to meet the needs of its customers, maximizing productivity, safety and return on investment.

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“As a global brand, Generac Mobile will continue to leverage its expertise and resources from around the globe to deliver innovative solutions,” said Brian Michael, North American president, Generac Mobile. “Our goal is to provide our customers with an unmatched experience, with the best support in the industry.”

The transition was first planned when Generac Power Systems acquired Magnum Power Products in 2011, forming Generac Mobile Products, LLC. Generac Mobile Products went on to acquire Italian light tower manufacturer Tower Light in 2013, and in 2014 acquired North Dakota mobile heater company MAC Heaters. The official move to merge the acquired brands under the global Generac Mobile brand began in the third quarter of 2018, and it is estimated to be complete by July 1st of 2019.

www.ForConstructionPros.com/RENTAL

3/14/19 3:36 PM

Genie GS Scissor Lifts Now Available with Lithium Ion Battery Option Lithium ion batteries are now an available option on Genie GS slab scissors. This new battery option is tailored specifically for work on construction sites, is suitable for cold weather performance and charging, and is right-sized to minimize total cost of ownership (TCO), maximize rental return on invested capital (rROIC) and maintain the runtime per charge that operators rely on to get the job done. “Electric scissors of today are typically powered by lead-acid batteries, which are comprised of a number of lead plates in a bath of acid,” says Mike Flanagan, Genie product manager, Terex AWP. “The new Genie lithium ion battery option is made up of a Lithium Iron Phosphate mixture (commonly referred

to as LFP), a proven battery chemistry well suited for the performance required in demanding rental applications and jobsite environments. To further enhance performance of the new Genie lithium ion battery, we have incorporated battery heaters into the design of this new option to enable the battery to provide reliable, consistent operation in temperatures down to -20°F (-29°C).” According to Flanagan, these construction-ready lithium ion batteries from Genie offer many advantages in rental scenarios. For example, these rechargeable batteries use the transfer of lithium ions to provide power and charge, as well as offer a number of performance benefits over lead-acid batteries.

For more information, visit www.forconstructionpros.com/21048015

MANUFACTURER PROFILE Advertisement

100 YEARS of Tradition & Innovation Established in 1919 as a machine shop in Coburg, Germany, Kaeser Compressors has evolved into an industry leader in the manufacture of industrial and portable compressed air equipment. Our gasoline and diesel portable compressors pack the most efficiency possible in a rental-ready, compact, rugged design. Models are available from 50 – 900 cfm at 100 psig. Mobilair™ compressors feature a larger, slower turning proprietary Sigma Profile airend for longer life and better efficiency, and produce up to 20% more air per gallon of fuel than other models in the same class.

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From our airend to our patented anti-frost valve that guarantees the ideal operating temperature is quickly reached and maintained regardless of weather conditions, to our exceptional craftsmanship and soundproofing that make our portable compressors one of the quietest in the industry—innovation is our lifeblood. Our latest innovation, Sigma Control SMART, comes standard in our mid-range units and is a user friendly control system with only 6 buttons and clearly marked pictograms. Starting, stopping, pressure adjustments and

operational data, as well as maintenance history are all at the touch of a button. These are only some of the innovations that emphasize Kaeser’s commitment to the compressed air user and why after 100 years, the Kaeser family still proudly puts its name on every compressor.

(866) 516-6888 | www.us.kaeser.com

MARCH 2019

3/14/19 3:36 9:21 PM AM

INDUSTRY UPDATE

EDCO CREATES DISTRIBUTION FOR INDEPENDENT RENTAL BUSINESSES EDCO created a new distribution network specifically for independent rental businesses. “Independent rental customers have been the backbone of EDCO’s success since (our) first show in 1958,” said EDCO vice president of operations Jason Stanczyk. “The best way to show our appreciation for independent rental’s warmth is to help them be more successful, and make more money with EDCO products. To do this, we have changed our sales model from direct sales to independent rental, to distribution.

years of EDCO product experience either by representing our products or distributing them on a smaller scale. This is a unique, educated, partnership that gives independent rental well over 100 years combined experience in the industry.” Stanczyk says EDCO’s customers can look forward to: • Enhanced logistics with EDCO inventory now strategically located within your region • Lower shipping costs and pick up options • Expert application diagnosis and technical advice

“We’ve partnered with three fantastic companies, MidStates Distribution Inc., or some customers may know them as Construction Product Sales; Big Eight Supply and Tool, also known as Trinity Equipment Solutions; and MTA Distributors, a long-time ARA member. All have

• Local access to trained representatives who teach the profitability of EDCO products • The same high level of support from EDCO online, over the phone, and in person • The same pricing structure as before

For 60 years, EDCO has shipped from its single, Frederick, MD, location. The new partners put EDCO machines and accessories closer to shared rental customers. “Midstates is stocking EDCO in both Chicago and Minnesota. Big Eight Supply and Tool has EDCO in Dallas. MTA stocks us in Nashville,” said Stanczyk. “At no point ever before has this much EDCO been readily available. Because of these companies, lead times will be less, meaning shared customers will get product when they want it.” The new network’s support benefits are available to rental with no immediate change in pricing structures.

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“Prices are the same has it was before distribution,” said Stanczyk. “Moving forward, we will all work together to figure out fair pricing throughout the country. EDCO’s new distribution partners include: • Midstates Distribution Inc.: midstatesdistributioninc@gmail.com | 844-634-3478 States Represented: ND, SD, NE, MN, IA, WI, IL, IN, MI, OH, KY, WV • MTA Distributors: www.mtadistributors.com | 800-264-0225 States Represented: AL, AK, AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, MA, MD, ME, MT, NC, NH, NJ, NM, NV, NY, OR, PA, RI, SC, TN, UT, VA, VT, WA, WY • Big Eight Supply & Tool: Sales@Big-8.com | 972-792-8183 States Represented: MS, LA, AR, MO, KS, OK, TX EDCO and these partners are working together to make this transition smooth and seamless for shared customers. EDCO has provided your region’s distributor with a large volume of product and these firms are beginning to help advance EDCO’s renown quality and service.

Search: 10076444

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SUNBELT DONATES $1M

TO CUSTOM SMART HOMES FOR SEVERELY WOUNDED HEROES Sunbelt Rentals has donated $1 million to the Gary Sinise Foundation’s R.I.S.E. (Restoring Independence, Supporting Empowerment) program which provides 100% mortgage-free, specially adapted custom smart homes for America’s severely wounded heroes. To garner support for the R.I.S.E program, Sunbelt Rentals began sponsoring a series of fundraising campaigns and community outreach efforts. The company was on hand at the 2019 Barrett Jackson auction this January in Phoenix, Arizona, where a custom jeep was auctioned off to raise $300,000 for the Foundation. Following the auction, the Sunbelt Rentals team presented Gary Sinise with a $1-million check — representing Sunbelt Rentals collective efforts to support R.I.S.E. over the last year. “We are incredibly thankful to our friends at Sunbelt Rentals,” said Judith Otter, chief operating officer at the Gary Sinise Foundation. “Their ongoing support, passion, and commitment to our R.I.S.E. program has helped change the lives for many of our severely wounded heroes and their families, giving them back the independence they deserve.” “After achieving our goal to raise $1 million, our team was honored to present Gary and the R.I.S.E. program with these funds that allow the Foundation to help even more wounded veterans and first responders,” said John Washburn, Sunbelt Rentals, senior vice president, sales & marketing. “This year, we will continue to increase our efforts and bring more awareness to the Foundation’s work, to help positively impact the lives of those who have sacrificed so much for our freedom.” Since January 2016, Sunbelt Rentals has supported the Gary Sinise Foundation and R.I.S.E. by providing tools and equipment needed for each of the program’s home build projects. Sunbelt Rentals also backs the program by donating a portion of rental proceeds from uniquely-branded Gary Sinise Foundation equipment to R.I.S.E.

“Their ongoing support, passion, and commitment to our R.I.S.E. program has helped change the lives for many of our severely wounded heroes and their families, giving them back the independence they deserve.”

For more information, visit www.forconstructionpros.com/21047949

Search: 10074951 www.ForConstructionPros.com/RENTAL

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INDUSTRY UPDATE

RITCHIE BROS. ORLANDO EQUIPMENT AUCTION HITS A RECORD $297+ MILLION

→

A sea of equipment stretched over the 220-acre Ritchie Bros. auction site in Orlando, FL, last week as the company hosted its largest auction ever. Over six days, the company sold a staggering 13,350+ assets for a record US$297+ million, up 7% from last year’s US$278+ million total. The massive selection of equipment attracted more than 15,900 people from 88 countries — setting a new site record — including 11,300+ bidders participating online in real time from around the world. At the end of the six-day event, approximately 84% of the assets were purchased by buyers from outside Florida. U.S. buyers purchased 85% of the equipment,

while international buyers from countries such as Australia, China, Colombia, Germany, Nigeria, and the United Arab Emirates purchased 15%. Online buyers purchased approximately 49% of the equipment. “We had a great week in Orlando, helping more than 1,150 companies sell their surplus equipment to buyers from nearly every corner of the world,” said Ravi Saligram, chief executive officer, Ritchie Bros. “Orlando is the Super Bowl of auctions and our team was prepared and performed tremendously, helping us set multiple company records, including our largest ever gross transactional value (GTV) and the most equip-

ment we’ve sold in one auction in 60-plus years of business. On Day Five alone, we sold approximately 2,300 items for more than US$82 million — the largest single auction day in our history!” For more information, visit www.forconstructionpros.com/ 21049566

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3/14/19 3:37 PM

ADVERTISER’S INDEX ADVERTISER

PAGE

ADVERTISER

PAGE

ADVERTISER

PAGE

Abbott Rubber Company............96

Haulotte US Inc............................65

Scania USA..............................20-21

Alliance North America..........54-55

Hydra-Tech Pumps.......................41

Snorkel...................................13, 71

Applied Machinery Sales.......72, 85

JCB Inc..........................................29

Sotcher Measurement Inc...........70

Barreto Manufacturing Inc...........7

Jenny Products, Inc......................27

Stellar Industries..........................49

Bauma 2019.................................45

JLG Industries Inc....................50,51

Sullivan-Palatek...........................63

Bobcat..........................................11

John Deere Construction Equip.... 19

Takeuchi Manufacturing Co....42-43

CCCME.....................................76-77

Kaeser Compressors....................93

Terex USA................................34-35

CK Power.....................................53

Kobelco Construction Machinery...25

Tippmann Industrial Products....61

Croft Trailer Supply.....................75

LBX Company LLC...................56-57

Towmaster, Inc.............................95

DEUTZ Americas....................91, 99

Oztec Industries Inc.................5, 81

Trask-Decrow Machinery............96

Electric Eel....................................69

Perkins Engines

Trojan Battery..............................47

Essex Silverline.............................97

Company Limited................73, 100

TVH Parts Co..........................31, 33

E-Z Trench....................................87

Power Pusher,

UP Equip......................................39

Generac Power Systems.........14-15

Division of Nu-Star, Inc................94

Weber Machine (USA) Inc...........70

General Pipe Cleaners.............2, 79

Precision Components............66-67

This index is provided as a service. The publisher does not assume liability for errors or omissions.

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MARCH 2019

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EYE ON RENTAL // B y

Dick Detmer YaroslavKryuchka/iStock/Getty Images Plus

DON’T BE Overly Cautious Stay focused on your local market and ignore the hysteria that elections and biased news reports can bring

he “state of the industry” is a theme that’s heavily discussed of late, especially at The ARA Show last month in Anaheim, CA. With that in mind, here’s my take on the topic. I fear that some rental business owners and operators might be giving in to what seems like an overwhelmingly negative frenzy by the national media (some of which might have a political bias or agenda) and becoming overly cautious with their business decisions as a result. My advice in response to this is that it’s wiser to concentrate more on what’s happening in the communities you serve. I expect that later this year will bring plenty of economic scare tactics used by politicians who are running for office in 2020. Perhaps surprisingly, I believe it’s very possible to remain successful in your rental business almost no matter what happens through careful preparation. There have been plenty of uncertain and troubling times for our nation over the last several decades. But, our country’s culture of success, the unique nature of the rental business, and the tenacity and hard work of the people who own and operate independent rental companies, have all combined to make rental businesses very successful and super resilient. It certainly takes courage to invest in upgrading your rental business when there are so many economic, political

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and global uncertainties. I believe 2019 will prove to be known as another pivotal year for significant bold initiatives by forwardthinking, independently owned and operated rental companies. Recessions are inevitable, so it’s just a matter of time before the next one happens. The key is to put plans in place now to cope with and perhaps even take advantage of economic downturns when they happen. In my opinion, the smaller independent rental companies can have advantages over the large national chains during a recession. But you can bet the large national chains have plans to deal with the next economic downturn as well. Again this year, barring a major national or international calamity, I believe the rental industry is poised for more growth. In fact, I believe the combination of relatively low interest rates, low inflation, continued building and remodeling demand - plus construction companies and others who this time around are wiser and won’t overspend on the ownership of capital equipment - all point to considerable upside potential for the rental industry. Of course, some rental companies in depressed market areas, as well as those in areas that have too many competitors, might likely continue to have much more modest gains. Also, rental companies that are clinging to the old ways (such as not having fresh equipment, an appealing visual image, relevant marketing plans and solid employee systems) are not as likely to participate in

the growth experienced by other rental company owners who are more modern and forward thinking. With that said, I see that wise, progressive rental business owners are still proceeding to invest in growing their equipment rental businesses in size and internal systems. The rental business owners I consult with are very actively pursuing opportunities to grow and become even greater at what they do. Huge opportunities can be missed by procrastination or being overly cautious. The rental industry is still poised for more competition. You are not alone in seeing the benefits of the equipment rental business (although they might not see the challenges you face). Some professionals in other types of businesses (which will be hit the hardest in the next economic downturn) will become attracted to the idea of starting an equipment rental business and might become a competitor. It’s never wise to rest on one’s laurels or be overly conservative. So, remember to make wellresearched, wise growth decisions even though there is plenty of negative noise being made on the national political/economic scene. In my opinion, for now and at least for the remainder of 2019, the general state of the rental industry is strong. Keep in the mind the importance of remaining positive and focused on moving forward. This philosophy will serve you well in good times and in not-so-good times as well.

Dick Detmer is a nationally recognized consultant, lecturer and writer with over 35 years of experience in the equipment rental industry, including more than 30 writing the Eye on Rental column for Rental. For consulting, training or to order one of his books, visit www.detmerconsulting.com. Dick can be reached directly at dick@detmerconsulting.com or at (309) 781-3451.

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