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Vol. 29 Number 8 |
Cover Story
table of contents | August 2017
MACHINE MATTERS:
BEYOND SIZE ALONG WITH GETTING LARGER, ARTICS UNDERGO MAJOR ADVANCES.
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Equipment 16
Marketplace
John Deere 620GP and 622GP graders, Milwaukee Tool and Casella devices geared toward silica dust rules, Fecon Bull Hog mulching attachment, Manitou MTA 5019 and MTA 9050 telehandlers
20 Used Equipment Report
63 Snow Clearing Attachments
We take a look at what’s hot in the used equipment market, what’s driving prices and how to get the best deals.
Get a jump on the snow with these new attachments.
EquipmentWorld.com | August 2017
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Features 47 Maintenance
Proxy techs may be the answer for your overtaxed maintenance team.
55 Highway Contractor
Sweeper trucks offer another tool in prepping for better road pavement.
51 Contractor of the Year Finalist Matt Whaley, Whaley & Sons, Kodak, Tennessee
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Same story, 42nd verse
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Pipeline contractors seek ELD exemption, Colorado DOT requiring contractors to hire locals
Insert Quick Data Skid Steers
61 Safety Watch
Why kneeling near machines is a bad idea
68 Technology Volvo’s LX1 hybrid prototype sees 50-percent fuel efficiency improvement over L150
Word 74 Final End the gas tax For subscription information/inquiries, please email equipmentworld@halldata.com. Equipment World (ISSN 1057-7262) is published monthly by Randall-Reilly Publishing Company, LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Periodicals Postage-Paid at Tuscaloosa, Alabama, and at additional mailing offices. POSTMASTER: SEND ALL UAA TO CFS (SEE DMM 507.1.5.2). Non-postal and military facilities: send address corrections to Equipment World, P.O. Box 2187, Skokie, IL 60076-9921 or email at equipmentworld@halldata.com. Rates for non-qualified subscriptions (pre-paid US currency only): US & possessions, $48 1–year, $84 2–year; Canada/Mexico, $78 1–year, $147 2–year; Foreign, $86 1–year, $154 2–year. Single copies are available for $6 US, $9 Canada/Mexico and $12 foreign. The advertiser and/ or advertising agency will defend, indemnify and hold Randall-Reilly Publishing Company, LLC harmless from and against any loss, expenses or other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark infringement and any other claims or suits that July arise out of publication of such advertisement. Copyright ©2017 Randall-Reilly Publishing Company, LLC All rights reserved. Reproduction in whole or in part without written permission is prohibited. Equipment World is a trademark of Randall-Reilly Publishing Company, LLC Randall-Reilly Publishing Company, LLC neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.
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August 2017 | EquipmentWorld.com
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CERTIFIED LUBRICANTS
Clean. Redefined.
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on record | by Marcia Gruver Doyle MGruver@randallreilly.com
Same story, 42nd verse
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mid the ruins of the health care bill, we learned what’s next on the Trump Administration’s agenda. One guess: It’s not infrastructure. The 42 in the headline is a random number, and my point is this: Infrastructure has become a permanent resident in the anteroom of Congressional attention. There, to the discomfort of seemingly no one, we’ve staked out a homeless shelter, patched with scraps of trillion-dollar spending promises. The numbers now apparently leave everyone numb. The American Society of Civil Engineer’s 2017 report card pegged our highway and bridge repair backlog at $836 billion. Yawn. There are more than 2,170 high-hazard potential dams in the United States. Shrug. The EPA estimates $271 billion is needed to meet wastewater infrastructure demands from 56 million new users over the next 25 years. Next. The Minneapolis, Minnesota, I-35 bridge collapse was 10 years ago this month. The Flint, Michigan, water crisis first grabbed national attention two years ago. And every four years, the ASCE issues its report card, which since 1998, has given the United States a solid D or D-plus. Hands are rung when this report is released…for a day. But these are the big narratives. The true tell is in the day-to-day stories. An inspection diver discovers a crack 30 feet
below the water in a Townsends Inlet toll bridge pier, closing the bridge connecting two New Jersey seaside communities during both Memorial Day and the Fourth of July. A television inspection of a sewer line shows a large hole in the line underneath Johnson Street in Dowagiac, Michigan, closing down the street. A storm sewer underneath a walkway in Madison, Wisconsin, fails, creating a large sinkhole. And two months after the drama in Oroville, California, an earthen dam at the Scheckler Reservoir outside of Fallon, Nevada, develops a hole, threatening a nearby highway. Most of these recent stories are not dramatic tales. But these smaller stories, strung together, highlight the cracks, holes and too-soft places of the structures that support our everyday lives. It’s a pity that collectively they don’t seem to move the needle. But then neither do the major headlines. When something big happens again – and it will – predictably there will be laments about the sorry state of our inner workings. The ASCE report card again will be quoted innumerable times. Individual Congressional delegates again will pledge to put infrastructure on the front burner. But will any of this prompt the nation to make a true commitment to accomplish this basic civic responsibility? I’m losing my inherent optimism.
EquipmentWorld.com | August 2017 9
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Dedicated to Success.
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| staff report
Pipeline contractors request shorthaul exemption from ELD mandate Briefs John Deere and Wacker Neuson have formed a strategic alliance in which Wacker Neuson will supply Deere with Kramer brand compact equipment aimed at the agricultural market. Starting in Europe, Deere will sell Kramer’s “green line” of all-wheel-steer wheel loaders, telescopic wheel loaders and telehandlers, as well as attachments, accessories and parts.
A
pipeline construction industry association and a specialized equipment fleet are seeking exemptions from the federal electronic logging device (ELD) mandate set to take effect Dec. 18. The Pipe Line Contractors Association is requesting the exemption for all drivers of pipeline contractors. The PLCA says the drivers sometimes exceed the short-haul exemption of more than eight days in a 30day period, which would require them to use ELDs. The group says the drivers would still be required to keep paper logs, if the exemption were granted. The drivers, which primarily operate flatbed trucks, rarely drive on public roads, so the ELD requirement would not offer a safety benefit, the PLCA argues. It says the drivers “almost always” operate within a 100-mile radius and meet the requirements for the short-haul exemption, but may not return to the work-reporting site within 12 hours, as the shorthaul exemption requires. Additionally, MBI Energy Services, a water service hauling fleet in North Dakota, South
Dakota, Wyoming, Montana and Colorado, is requesting the exemption for its vehicles equipped with single-passenger cabs that are used in applications in which travel is rare. MBI says these trucks require oversize/ overweight permits to operate on public roads and are typically only used in remote areas, not on highways. Because the trucks are singlepassenger cabs, the fleet says space is limited and installing an ELD would reduce driver visibility. In other ELD-related news, a bill has been filed in the U.S. House to push back ELD compliance two years, until December 2019. The ELD Extension Act of 2017, filed by Rep. Brian Babin (R-Texas), is aimed at reducing the compliance burden for small operations. The Federal Motor Carrier Safety Administration is seeking public comment on both exemption requests until Aug. 9. For an in-depth look at the ELD mandate, check out Equipment World’s special report at www. EquipmentWorld.com – By Matt Cole
Volvo has sold its 25-percent stake in German engine maker Deutz. Both companies say they will continue to work together to develop next generation medium-duty engines for off-road applications. Martin Lehner has been chosen as the next CEO of Wacker Neuson to replace Cem Peksaglam, who steps down this month. Lehner has served as Wacker Neuson’s chief technology officer and deputy CEO. Lehner, 51, came to Wacker in 2007 when the company merged with Neuson Kramer. Volvo Construction Equipment has named Melker Jernberg as president, replacing Martin Weissburg at the end of this year. Weissburg, who took the reins at Volvo CE in 2014, is returning to the United States and will serve as senior adviser to Volvo President and CEO Martin Lundstedt. LiuGong Machinery has named Kevin Thieneman as chairman of LiuGong North America and senior chief director of Guangxi LiuGong Machinery. Thieneman most recently served as president of Caterpillar Forest Products from 2013 through January of this year. (continued on page 14) EquipmentWorld.com | August 2017 13
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Colorado DOT will require contractor to hire locals for I-70 expansion through Denver
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n granting a $1.2 billion contract for the expansion of Interstate 70 through north Denver, the Colorado Department of Transportation (CDOT) will require the contractor to hire 20 percent of its workforce – about 350 people – from the 15 neighborhoods adjacent to I-70 in Denver and Aurora, the Denver Business Journal reports. The project includes expanding I-70 between I-25 and I-225, sinking a portion of it between Brighton and Colorado boulevards, and
Briefs (continued) Thompson Tractor has named Charlie Stevens as vice president for earthmoving sales with responsibilities that also include the company’s Cat Rental Store Division. Stevens has been the region manager for the western sales regions for the past 10 years. Bomag GmbH this year is celebrating 60 years of serving the road construction industry through soil and asphalt compaction. The company was founded in October 1957 in Germany and now has roughly 2,200 employees and annual revenue of about $783 million, with production plants in Germany, Italy, Brazil, China and the United States.
building a four-acre park over the lowered highway. New express toll lanes will also be added, and the viaduct in north Denver will be removed. CDOT is expected to select a contractor this summer, with construction slated to begin in 2018. – Chris Hill
Doosan Construction Equipment has added two dealers to its network, expanding its coverage in Mississippi and western New York. The dealers are Bobcat of Jackson (Mississippi), a division of Equipment Incorporated, and Bobcat of Buffalo (New York). Bandit Industries has added two new distributors, increasing its coverage in Florida, Ohio, New Jersey, North Carolina, South Carolina, Tennessee and Vermont. The new distributors are Company Wrench, based in Carroll, Ohio, and Champlain Valley Equipment, headquartered in Middlebury, Vermont. For more on each of these stories go to equipmentworld.com.
14 August 2017 | EquipmentWorld.com
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marketplace
| by Don McLoud |
DonMcLoud@randallreilly.com
MINIMIZING HAND MOVEMENT, WORKER FATIGUE ED I PI TOR’S CK
John Deere’s 620GP and 622GP graders offer a choice of dual joystick or fingertip armrest controls, designed to minimize hand movement and worker fatigue. They also eliminate the need to “twist” for blade circle or articulation. The sister 620G and 622G models use conventional control levers. All four models also still have
a steering wheel. New features on the machines include increased horsepower, torque and blade control; unobstructed views from the cab; and more storage space. Deere says it has designed the machines to be more energy efficient, with auto engine shutdown and a hydraulically driven fan that adjusts its speed to conditions.
Getting a jump on silica rules
Milwaukee Tool offers a full lineup of rotary hammers and grinders and other dust-extraction attachments that will comply with proposed federal silica-dust reduction rules scheduled to take effect September 23. Anchoring the devices is the company’s 8-Gallon Dust Extractor, which features automatic filter cleaning. The company has also launched several attachments for the extractor, including the SDS-Max Dust Extraction Attachment and the SDS-Mac Chisel Boot. The company’s new Surface Grinding Dust Shroud and Cutting Dust Shroud keep dust at bay when using Milwaukee smallangle grinders.
Keeping a watch on dust
Casella has introduced its latest dust-sampling pumps to monitor worker exposure to silica dust. The pumps come in three models: Apex2, Apex2 Plus and Apex2 Pro. They are designed to monitor the amount of dust exposure facing individual workers on the job. The company says employers can view the status of the dust-sampling pumps from a smart phone, as well as start, stop and pause the pump. 16 August 2017 | EquipmentWorld.com
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| continued
Turn an excavator into a mulcher Fecon’s Bull Hog mulching attachments are designed for excavators ranging from 5 to 10 tons. The FMX36 Bull Hog features a 36-inch cutting width and weighs 850 pounds. The FMX50 has a 50-inch cutting width and weighs 1,050 pounds. Both heads can also be mounted on backhoes and side arm booms. The attachments feature a split ring rotor design with new reversible cubit teeth, allowing for quick mulching of 4-inch material and the ability to intermittently mulch material up to 6 inches.
Adding to telehandler lineup Manitou has introduced two telehandlers to its MTA machine lineup, the Series III MTA 5019 and the Series II MTA 9050. With an operating capacity of 5,500 pounds, the MTA 5519 is powered by a 69-horsepower, Tier 4 Yanmar engine paired with a two-speed Rexroth transmission. Lift height is 19 feet, 1 inch, with a load capacity at max height of 3,000 pounds. Max forward reach is 11 feet. The machine boasts 173 pounds-feet of torque and a maximum travel speed of 15 mph.
R
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used equipment report | staff report
Regional demands drive used prices By Tom Jackson and Chris Hill
S
upply and demand determine the price of used equipment, but other less apparent influences also move the needle. Location is one such influence. “This year we are seeing certain geographic pockets doing better than others,” says Brian Sandon, eastern U.S. sales manager, J.J. Kane Auctioneers. “One area might do better than the next, even though it’s just a couple hours away. It’s been hard to pinpoint consistently.” The general trend in the Southeast and the West is a strong, growing economy and rising prices and demand. “Residential building and distribution have spiked up in the Southeast, and out West, the housing market has started to boom again, even in Las Vegas,” says Sandon.
Prices remain steady, trend upward In general, equipment prices in 2017 are similar to, or higher than, what the industry saw in 2016, says Doug Olive, senior vice president, pricing, at Ritchie Bros. There are a few particularly strong categories related to light construction, such as skid steer loaders, loader backhoes and smaller wheel loaders, he says. “Right now, equipment is in tight supply since it’s out working. Also, OEM production was reduced for certain models between 2014 and 2016, so there is less equipment on the market,” says Olive. “Because of this, there are many sellers looking to take advantage.” “It’s hard to find good, late-model construction equipment right now that’s not worn out and beat up,” says Sandon. Some reasons: Utilization is up. Rental companies are hanging on to their
fleets longer. And at ConExpo this year, orders came in strong, and manufacturer lead times for new equipment are now stretching out. “You just can’t call up and have one delivered in a week like you used to. You might wait up to three or four months, depending on the product,” he says. All of these factors may prompt a buyer to go to the used equipment market. “Used prices are trending up,” says Mike Womble, branch manager for Anderson Equipment, based in Buffalo, New York, “which can make it a good time to sell.” Kenneth Tysinger, used equipment sales manager for May Heavy Equipment in Lexington, North Carolina, adds a caveat: “While used equipment prices are up year over year, there has been some softening,” he says. “You would probably be better off to hold off on selling until the end of the year, if possible.” But buying is a split proposition, Tysinger adds. “New and used equipment prices are up, but there are a lot of good finance options on the market right now. These are enough to persuade buyers to pull the trigger.” (For more on used equipment finance options, go to page 28.) Si Hanna, general manager of remarketing and fleet management for RDO Equipment based in Hewitt, Texas, says equipment prices seem to have stabilized and even rebounded in some segments. “There is a lot of activity happening in the market, and from a dealer perspective, that means opportunity,” he says. “I think over the past 18 to 24 months, the market has favored the buyer because of the
Also included in this report: How does the No. 1 rental company dispose of its equipment?...p. 23 Contractor buying and selling strategies...p. 24 Plenty of credit available for used equipment buyers....................p. 28 Buyer’s market for used vocational trucks may be waning.............p. 32
20 August 2017 | EquipmentWorld.com
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A scene from this year’s Ritchie Bros. Orlando auction.
amount of machines that have been placed in auction and from some de-fleeting that has happened, but opportunity is always there for a buyer and a seller.”
It depends on the region The flip side of the coin is that the oil patch – which saw a significant downturn due to the lowered price of gas and oil – has been slow to recover, although it’s now showing signs of life. “That’s hurt used equipment prices in the Dakotas and Texas,” Sandon says. “The bulk of that equipment is not doing as well as it used to, but I’m sure that will turn around with time.” “Yellow iron prices have tended to stay fairly consistent, but your oilfield stuff and their trucks, they were just giving them away,” says Bob Merritt, director of equipment and construction services operations support at AECOM, a heavy civil and commercial construction firm in Meridian, Idaho. “It
What’s selling: excavators, excavators and excavators “Right now, 10- to 25-ton excavators are hot due to the increase in commercial site work and housing developments,” says Kenneth Tysinger with May Heavy Equipment. “Larger excavators, 40 tons and up, seem to be soft at the moment.” “Excavators have been and will always be top sellers,” Southeastern Equipment’s Heath Watton says. The number of attachments adds to their versatility, making excavators “a real bang for your buck. It doesn’t matter if it’s a mini excavator, mid-size, heavy – it’s excavators, period.” Si Hanna with RDO Equipment views used equipment demand from a broader perspective. “What’s hot right now is quality used equipment,” he says. “Customers are looking for well-maintained equipment with lower hours and warranty remaining. Once we pull machines from our rental fleet to sell, customers know it is a quality piece.” – Chris Hill EquipmentWorld.com | August 2017 21
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used equipment report | continued was a bloodbath. But that’s starting to turn around and come back.” Heath Watton, vice president of Southeastern Equipment, a Case dealer in Cambridge, Ohio, says used equipment sales are outpacing new equipment sales in the more rural locales of his sales area, which spans portions of Ohio, Pennsylvania, West Virginia, Kentucky, Indiana and Michigan. Contractors were generally steady in their used equipment buying expectations, “Here in Ohio, you according to the Wells Fargo 2017 Construction Industry Forecast. have a nice, robust used market,” he says. “There is so much business going on, and there are so many after the sale of these units. This can add relocation expenses on top of the price of an older asset, which owner-operators,” Watton says. As he tracks where his company’s used equipment is sold, he sees a clear trend will drive up the cost for buyers, says Dan Samford, of more used equipment being sold in rural areas and owner of Peak Performance Asset Services, an more new equipment sales driven by urban buyers. equipment consulting and value assessment firm. “Detroit, Michigan; Columbus, Ohio; Cincinnati, Samford believes these clean diesel machines Indianapolis, Cleveland – they’re new equipment should do well when they start showing up in the markets,” Walton continues. “When you get out into the used equipment stream. “Used Tier 4 iron is desired rural markets where there’s not as much industry, a guy by the dealers and resellers,” he says. “Dealers want is going to buy a used backhoe for $60,000 or $50,000 this iron back in their inventory to help build their sales inventory options.” Olive says pricing for the instead of buying a new one for $110,000.” Tier 4 assets Ritchie has seen on the auction block One industry segment seeing strong growth – and have been “solid.” the resulting increases in used equipment prices – is One reason the used market may not be seeing telecom, fiber and cable construction. “Directional drills, much Tier 4 Final equipment yet is because the cost mini-excavators, cable placers and bucket trucks are all of these machines is substantially starting to increase,” says Sandon. Top models sold at auction this year* higher, and most owners are “It’s getting harder to find decent hanging on to them for an extra used pieces.” Compact excavator Deere 27D year or two to make up for it, Excavator Cat 320C L says Sandon. Is there a Tier 4 effect? Wheel loader Deere 544K Emissions regulations Tier 4 Final engine emissions Dozer Cat D6N approximately doubled the cost regulations kicked in 2014-2015. Backhoe Deere 310J of a diesel engine, and while In most cases, these newer Artic Cat 740B that may not proportionally be a machines have not entered the Skid steer Bobcat S175 big deal for larger equipment, it used equipment market, so it’s still Compact track loader Bobcat T190 substantially drives up the price not clear what impact these more Source: TopBid, topbid.com, January through mid-May. on smaller machines. “It’s most expensive machines will have. notable with air compressors, The looming complication is especially with older air compressors, such as the 185 that most larger Tier 4 machines can’t be exported Sullairs and Ingersoll Rands,” says Sandon. “You used without expensive retrofitting to meet conditions to be able to buy them used for $2,000 to $3,000. Now outside the United States. Many of the smaller Tier 4 it’s hard to get a used air compressor for under $4,000.” units (under 75 horsepower), however, are adaptable A survey by the Independent Equipment Dealers with minimal to no modifications. Association of its members late last year indicated an Another complication: many non-attainment areas increase in demand for Tier 3 equipment because of (those considered to have air quality worse than the Environmental Protection Agency’s Tier 4 emissions. national standards) prohibit the import of older, preThose responding to the survey reported resale prices of Tier 2 units, and sales in those areas require export 22 August 2017 | EquipmentWorld.com
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How does the No. 1 rental firm dispose of its equipment? Tier 3 and lower equipment had increased by up to 20 percent, with that equipment becoming scarce. However, Southeastern Equipment’s Watton believes the trend of higher prices for Tier 3-and-lower machines is waning. “Two years ago this was hot and heavy,” he says. “That’s when I saw the biggest jump in a retail value on a Tier 3 or Tier 2 used piece.” At that time, Watton said, a piece of equipment that market trends indicated should be priced at $35,000 could be listed at up to $43,000, and buyers wouldn’t balk. RDO’s Hanna also believes the Tier 4 transition has worked past any issues, with some machines already entering the used market. “In the United States, there was an initial instinct for customers to be skeptical of the new Tier 4 Interim and Final equipment, and Tier 3 equipment was very popular,” he says. “Tier 4 machines have been working for a while now, and our customers have confidence in them.” But Tier 4 machines are affecting sales to other countries that are behind in adopting the standard. “The need to run cleaner fuels with Tier 4 machines has impacted sales to countries that do not have these fuels readily available,” Hanna explains. “Certain countries need to have the capability to operate the lowered tier machines, and de-tiering machines will play a bigger role moving forward to meet these needs.”
Rentals is the definition of a large U3,200nited fleet: The company rents out about classes of heavy equipment with a
total original cost of $9.8 billion. With such a massive fleet, how does the company stay on top of equipment disposal? Specifically, how long does the company keep a piece of equipment, and when it’s time, what avenues does it follow to dispose of it? As we learned in a conversation with Ted Grace, vice president, investor relations, it’s an intricate process, and United takes it seriously. “We have nearly $10 billion in original equipment cost and 450,000 discrete pieces of equipment,” Grace explains. “So we base everything on a rental useful-life model.” Grace says this model gives the company an expectation for the life span of a machine based on the amount of time United owns the asset “relative to the amount of capital we can get from it.” But it’s not just the age of the machine that’s figured into its overall usefulness. “Age is just a number. It’s the hours of operation that affect its useful life,” Grace says. “Some assets we may keep three years, some we keep 10. It averages out to about seven years.” For instance, Grace says the company keeps aerial machines longer than other types of equipment, while the turnover period with earthmoving machines is relatively short. “Part of it is repair and maintenance cost,” he explains. “There’s a depreciation curve for the rate at which fair market value of the asset declines relative to the original cost.” Reliability data is also added to the mix. “And because we are extremely data intensive, we know more about our equipment than anybody. From all of these different perspectives, we look at when is the ideal time to sell it so that our economics are optimized.”
Used equipment has a prominent spot on the United Rentals’ website. Once a machine has reached the end of its useful life, United chooses one of four avenues of parting ways with it: • Retail sale • Trade packages with manufacturers • Wholesalers • Auctions United is not particularly keen on auctions. “You end up paying the auctioneer 10 to 12 points off the top,” Grace says. “For each dollar you think you’re getting, you’re actually only getting 88 to 89 cents. And since we have alternatives, that affects the calculus we use to figure out how to sell used equipment.” United also engages in trade packages with certain manufacturers. In exchange for used machines, these manufacturers give United credits toward future machine purchases. Grace says the manufacturers typically take those used machines, rebuild them and re-sell them as certified remanufactured equipment. But using United’s sales staff to sell a used machine to one of its customers is by far the company’s preferred method of disposal, Grace says. “A lot of our customers buy and rent from us, and it’s just part of their business,” he says. “Our salespeople know their customers, and they know what they need.” But there are other considerations at play as well, Grace says. “Let’s say we have an 80-foot boom we paid $100,000 for, and we’re hoping to get 50 cents back on the dollar. We’re going to have a salesperson spend some amount of time trying to sell that to one of our customers,” he explains. “But a chainsaw that cost us $500? Our salesperson’s time is not well spent on a low-cost item like that. So that affects how we think about channel mix.” – Wayne Grayson EquipmentWorld.com | August 2017 23
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used equipment report | continued
Buying? Selling?
Here are some contractor-honed strategies By Tom Jackson
Selling Used equipment plays a significant role – both its acquisition and disposal – in the business strategies of contractors. When it comes to selling used equipment, auctions are usually the most popular method, but most companies use a mix of strategies. “Right now, auctions account for probably 90 to 95 percent of our equipment disposals,” says Bob Merritt, director of equipment and construction services operations support at AECOM. “Without auctions, equipment disposal becomes a big job that includes taking care of the liens, title searches, marketing, legal paperwork and fielding the offers. After the sale, you still need to handle the shipping logistics. When you use an auction company, all this is taken care of for you.” But if you don’t have a lot of equipment and you’re not in a rush to sell it, there are other options. “If you can afford to let it sit, you’ll probably get a better price, because you’re not paying the fees and costs of the people selling it for you,” Merritt says. “I think auctions are the best way,” says Doug King, fleet manager at Sherwood Construction, a civil construction firm based in Wichita, Kansas. “You get what the asset is worth on that day in that market. Our experience shows that, on average, we equal or better our appraised values selling through auctions. The key is getting your product in front of as many potential buyers as possible.”
King cautions, though, that not all auctions are right for every contractor or piece of equipment. “All auction companies have reputations and specific markets they attract,” he says. “I will use different companies depending on what asset I am selling to which target market.” Neither King nor Merritt is a fan of brokered sales. “I don’t see any increase in our income, but we still have to put out time to show the equipment, store and insure the asset along with handling the fund transfers and commissions and deal with the haulers when they come to pick it up,” King says.
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Top Used Excavator Models
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1. Deere 544K 2. Cat 924K 3. Cat 930K 4. Deere 624K 5. Cat 938K
1. Cat 336E L 2. Cat 320E L 3. Cat 316E L 4. Komatsu PC360LC-10 5. Deere 210G LC
1. Cat D6N LGP 2. Cat D6T XL 3. Cat D8T 4. Cat D6N XL 5. Cat D5K-2 LGP
1. Cat 420F 2. Deere 310 SK 3. Case 580 Super N 4. Deere 310J 5. Case 580 Super M
Online auctions For most of its sales, Sherwood uses an online auction service, Purple Wave, with no reserves or holdbacks, King says. “They allow us to sell the equipment at our locations, saving freight, fuel, jumpstarts and all the other issues. When we do use onsite auctions, it might be for a specific or specialized item that sells better in a certain location or region.” “The transportation savings you get by using internet auctions for difficult, oversized pieces can make the net return better, but only if the unit can be marketed and advertised to get the attention it needs,” Samford says. Private sales King also works closely with specialty contractors for
In terms of number of units, financed Jun. 1, 2016-May 31, 2017. Source: EDA, edadata.com 24 August 2017 | EquipmentWorld.com
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used equipment report | continued private sales. “We have a couple of companies that we sell specific types of equipment to. An example is mixer trucks, where we have a relationship and trust with a company and buyer,” he says. If you have the patience and are attuned to the market needs, private sales have advantages, says Jack Bailey, owner of JBR Incorporated, a commercial construction company in Fredericksburg, Virginia. Bailey will occasionally use auctions, but says “it depends on the marketability of the items and how quickly I want it disposed of.” Private sales allow the seller to have the final say on the price, says Samford, an option that he loses with unreserved auctions. And from a buyer’s perspective, if you can personally inspect and run a piece of equipment at a private sale, you’re more likely to spot any telltale flaws or problems that an online buyer might not see, he says. Auction companies sometimes deal with what Bailey calls “an overabundance of junk.” When a contractor comes along with a well-maintained machine, the auction houses are often eager for it since it will bring better than average money, he says.
One strategy Merritt has deployed is buying a new piece of equipment for a specific job through a rentalpurchase option. The rental payments get charged to the job, and at the end of the project, the company will buy out the contract of the now used equipment and put it into the regular fleet for other projects. This only works if the prices are right, he says, but it has the advantage of letting the job pay for the first few years of the equipment. After that, you have a pricedepreciated piece of yellow iron without the costs or risks involved in buying used because you know its condition and value.
Other selling options The disposal option Bailey likes least are buybacks. “From my experience, these provide the least favorable return on investment,” he says. Others see some advantages in buybacks, depending on their business model. “Many joint-venture projects are negotiating guaranteed buybacks on iron acquisition because they have a known term when they will be ready to dispose of assets at the jobs end, and it allows them to clearly identify the project ownership costs going into the project,” says Samford.
Buying Nobody we talked to, even the large companies that spend millions on new equipment every year, say they rule out buying used equipment. At Sherwood, King will buy used equipment from a variety of sources: auctions, OEM dealers, independent dealers and private sales. “There are a lot of good reasons behind each option,” he says. “I have found that with the internet bidder participation in auctions, the chances to get a bargain on something is long gone. It’s good if you’re selling, not so good if buying.” All other things being equal, King says he likes buying through a trusted OEM dealer. Merritt also says he feels more confident in buying used equipment from a dealer. “I usually go through my OEM people, because I know I can deal with them. If there is an issue, you can go back to them and they can do something for you.” “A lot of our support pieces are used,” says Bailey. “Good deals are hard to find, so you must be patient and ready to make a decision quickly. Our philosophy is no matter what the market conditions, somewhere, someone needs to sell something.”
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1. Bobcat S185 2. Bobcat S650 3. Cat 262D 4. Bobcat S250 5. Bobcat S175
1. Bobcat T190 2. Cat 259D 3. Bobcat T650 4. Bobcat T300 5. Cat 289D
1. Kubota KX121-3 2. Deere 35D 3. Cat 308E-2 CR SB 4. Cat 304E CR 5. Bobcat E32
In terms of number of units, financed Jun. 1, 2016-May 31, 2017. Source: EDA, edadata.com 26 August 2017 | EquipmentWorld.com
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used equipment report | continued
Lenders: N
Plenty of credit available for used-equipment buyers By Don McLoud
ow that you’ve picked out that used excavator or wheel loader to add to your fleet, the next step to figure out is how to finance it. Thanks to dealers selling their rental machines, leases ending and trade-ins arriving, there’s plenty of supply for high-quality, late-model equipment on the market, lenders say. They also indicate there’s plenty of credit available to help make those deals. Borrowing money to buy used construction equipment, however, may take some shopping around to find the deal that best fits your needs. Lenders say just looking for the lowest interest rate might not make the most long-term financial sense. “It’s not like financing a new car or a used car,” says John Crum, senior vice president at Wells Fargo Equipment Finance. “There are so many things that are a factor in buying or financing a used piece of construction equipment.”
Get to know the machine One of the first things lenders will want to know is the age of the equipment you’re buying, what condition it’s in and who owned it before you. Because equipment doesn’t have registered titles like cars and trucks, buying used machinery can take lots of homework to make sure there’s clear title to the machine and no liens against it. That’s especially true in contractor-to-contractor sales and when equipment has changed hands several times over the years. The lender will want to see all the bills of sale or proof of ownership from the original sale forward.
“It can get complicated, time-consuming and costly to do that if you’re doing multiple lien searches,” Crum says. “It can be a long and frustrating process for the buyer and the seller.” One way to prevent such lengthy searching is to purchase from a franchise dealer, he says. The dealers generally have already done the title work. Along with determining the machine’s pedigree, lenders will want to research its value. Be prepared to discover that the price you’re paying may not match the lender’s loan value. Lenders typically look at what similar machines bring at auction or average resale. With that dollar figure determined, they can then decide how much money they’re willing to lend. But that’s just part of the loan picture. The other pieces to the loan puzzle focus on the borrower.
There’s an application for that Most lenders, be they banks or equipment manufacturers’ financial services, will require you to fill out an application to borrow money. And in many cases, if you’ve got good credit and are buying a latemodel, low-hour machine, that’s all they’ll need. They’ll research your credit history and credit references, and then structure the loan terms based on that information and the value of the machine. The process becomes a little more complicated for older machinery or if the borrower has some credit problems. Then, the lender may seek financial statements from
28 August 2017 | EquipmentWorld.com
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used equipment report | continued previous years. They may also ask to see your company’s work history, documentation of current projects and any contracts for future work. The top reason for denying a loan, lenders say, is poor repayment history. But many lenders are willing to seek ways to overcome credit hurdles. That’s particularly true for financial services divisions of the major equipment manufacturers. A large part of their mission is to help their dealers serve customers. “That means that we approve a high percentage of the deals that come to us because we try to fulfill that mission, while at the same time, we manage the risk that’s associated with lending,” says Dave Gilmore, senior vice president of global marketing and sales for John Deere Financial. “We’ll look for a way to say yes to the deal through different structures of the loan that match customer repayment capabilities.”
The best of terms Now that the equipment and your credit have been considered, it’s time to structure the terms of the financing. Questions like how long will it take you to pay back the loan, how much will it cost you to borrow the money and how much money will you have to put down come into play. This can be the most complicated – and costly – part of the deal and where lenders say it’s important to not just consider interest rates. “Decision-makers often want to focus on rate,” says Mike Rankin, vice president construction equipment financial services for Volvo Financial Services. “But you really have to look at prepayment charges, fees, loan terms and the flexibility of the lender to work with you.” The usual financing for used equipment is a fixed-rate loan for 24 to 48 months. Some lenders are also offering terms up to 60 months for late-model rental-equipment purchases. Interest rates on used equipment tend to range from 1 to 5 percent. Some manufacturers are offering zero-interest loans for their dealers’ sales of trade-ins and lease returns. They’re also offering warranties and maintenance deals as incentives on some used equipment. Lenders say the loans typically come with down payments, but some loans do not require them. Down payments usually range
from 10 to 20 percent. The amount of the down payment often depends upon the borrower’s credit history and the machine’s value. Those with less than stellar credit may have to make concessions to get financing. That might require accelerating the loan payments to gain equity faster. They might also have to accept a shorter repayment time and put up more collateral or a higher down payment. Collateral is usually the purchased equipment itself. Other collateral can also be offered, such as real estate, but real estate will require attorney fees, which can be costly. Those who want to avoid a down payment might consider leasing. That option usually only makes sense for newer machines coming off a rental fleet. Customers can lease the equipment for the length of a project or as long as they need it. Lenders say, though, that loans are still the most typical financing for used equipment. Another concern for borrowers: What happens if the economy turns south? Some lenders say they will help borrowers refinance when they are facing tough economic times and also take into account that used equipment is often an entry-level purchase for startup businesses. “We understand the ups and downs of the construction industry and look for a way to get approval, even if they have a somewhat bumpy history,” says Rich Fikis, president of Komatsu Finance. “We often assist in cyclical times to keep them as a long-term customer.”
A good time to borrow Lenders say that for the past five years, they’ve seen a steady increase in borrowing for used equipment. They attribute it to the economic health of their customers and a large supply of latemodel equipment up for sale. “It is a good time for customers to look at used equipment because there’s a good supply of it,” says Rankin, of Volvo Financial Services. “It’s generally latemodel stuff, with low to moderate hours on it. Pricewise they can get some pretty attractive payments and pricing.” And with the larger supply comes lots of lenders seeking your business. “It’s extremely competitive,” Rankin adds. “There are a lot of lenders out there chasing the business.”
“It’s not like financing a new car or a used car. There are so many things that are a factor in buying or financing a used piece of construction equipment.” John Crum, senior vice president at Wells Fargo Equipment Finance
“We’ll look for a way to say yes to the deal through different structures of the loan that match customer repayment capabilities” Dave Gilmore, senior vice president of global marketing and sales for John Deere Financial
“It is a good time for customers to look at used equipment because there’s a good supply of it.” Mike Rankin, vice president construction equipment financial services for Volvo Financial Services
“We often assist in cyclical times to keep them as a long-term customer.” Rich Fikis, president of Komatsu Finance
30 August 2017 | EquipmentWorld.com
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used equipment report | continued
Washington State DOT
Used vocational trucks may not remain a buyer’s market for long
W
By Marcia Gruver Doyle and Tom Jackson
hile much of the sleeper-cab used truck market was spiraling downward earlier this year, used vocational trucks have been a steady bright spot for truck dealers. “Used vocational trucks are strong,” says Craig Kendall, specialty markets manager for The Pete Store and current Used Truck Association president. “We are encouraged by this market, but we’re not quite at prerecession levels.” “As a group, used Class 8 straight trucks (excluding tractors), were up 5 percent in 2016 through April 2017,” says Steve Tam, vice president of ACT Research, a market intelligence firm that tracks highway vehicles. “They did much better than their sleeper counterparts, which were down 10 percent or more but are now finally starting to brighten.” Taking a deeper dive into his numbers, Tam says he was surprised to see that dump trucks were down within this vocational slice, especially compared with crane, mixer and vacuum trucks. “Dumps usually tend to be rainmakers for dealers, so I’m not sure what’s driving that,” he says. “The demand is sure strong, so it could be a repositioning.”
In contrast to dumps, truck-mounted cranes were up 30 percent during the 16-month period, which Tam says could mean the energy sector’s pulse is reviving. “Oil field players are now back in the market and looking at the supply of used trucks,” he says. Kendall says he’s heard of a 100-unit new truck buy from a fracking client, another sign the energy sector is picking up. During the same 16-month period, mixers were up 25 percent and vacuum trucks were up 15 percent. “In general, it’s a buyer’s market,” Tam says. “With prices being down, you can save money and buy younger used equipment. I think it would behoove the potential buyer to take a look at the used truck market right now.” Since new truck sales eventually drive used sales, Tam also sees growth instead of replacement being the primary new truck sales driver. “My sense is that for every 10 new trucks people buy, they are only sending one to the used truck market,” he says. “That would suggest a smaller supply and equivalent demand on the used side in the future. So if you’re going to buy, the sooner the better, because it looks like the market will tighten up.”
32 August 2017 | EquipmentWorld.com
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used equipment report | continued YTD change in Commercial Truck Guide Value* 2011 model year
2012 model year
2013 model year
2014 model year
2015 model year
Segment
Highway Aerodynamic
-9.4%
-9.7%
-13.5%
-13.5%
-10.6%
-11.3%
Highway Traditional
-5.3%
-4.0%
-1.0%
-0.8%
-1.5%
-2.7%
Medium Duty Cabover
-10.1%
-7.7%
-9.2%
-6.3%
-6.0%
-7.1%
Medium Duty Conventional
-6.5%
-5.1%
-5.1%
-5.9%
-6.3%
-4.9%
Vocational/ Construction
-1.3%
-1.3%
-1.4%
-3.0%
0.7%
0.4%
Segment
Compared with other truck segments, the vocational/construction segment (such as dumps and mixers) saw a slight increase in value this year over last year, while all other segments saw decreases of 3 to 11 percent. *Source: J. D. Power Valuation Services (formerly NADA Used Car Guide), Jan.-Jun. 2017
Pre-emission premiums “While we did see some softening of truck prices in with manual transmissions.” second through fourth quarter of 2016, we have seen a Unlike the used construction equipment market, slight uptick in prices in early 2017 across all makes and where equipment is in relatively tight supply, there is a models,” says Doug Olive, senior vice president, pricing, large supply of trucks on the market – making it a great at Ritchie Bros. “In particular, we continue to see strong time to upgrade or add to your fleet, says Olive. demand for most pre-emission trucks – 2007 model year And while it may be a good buyer’s market, the and older – specifically ‘long-n’ talls’ with C15 power.” total population of pre-2010-2011 trucks won’t last Heavy trucks were three to four years ahead of forever, says Greg Peet, of Heavy Equipment Services, off-road equipment in deploying a construction company that also does SCR (selective catalytic reduction) repair and repurposing of used trucks technology to reduce engine for construction applications. If you haven’t emissions. By 2011, most truck “We are periodically asked by priced trucks engines were using these more customers to locate used trucks that expensive systems, and as a result, we source from various vendors in a while, lower mileage trucks built in model including auctions, which we in turn you may be years 2006 through 2009 are enjoying may repair, rebuild or modify and surprised what then sell to the end users,” says Peet. a price premium on the used market. “That never used to happen,” says “We typically look for 2007 or earlier a decent used Brian Sandon, eastern U.S. sales trucks. The inventory vocational truck pre-emissions manager, J.J. Kane Auctioneers. of good trucks that fits this criteria is costs. Buyers have concerns about the dwindling due to age and condition of reliability and longevity of the new the inventory.” – Craig Kendall, The Pete Store emissions systems. And contractors “We see problems with EGR valves may be worried about their inability and coolers predominantly,” Peet to fix or work on these complicated new engines. “You adds. “We tend to see DPF failures following a turbo or have to have a lot of investment – tools and scanners – EGR cooler failure after the DPF ingests a lot of oil or and a lot of smaller contractors don’t have that ability,” coolant.” Peet’s shop has seen enough of these types of Sandon says. failures to warrant investing in a DPF cleaner system. Olive points out another change in the truck “This is a chemical based, on-vehicle process that is market: Sixty-two percent of heavy trucks were built meant to be used as a maintenance operation rather with automated transmissions in 2016, up 10 percent than a post-plugged repair,” he says. from 2015. The secondary market used to price these Rather than trade up to an emissions-regulated lower than a manual transmission. But that price gap truck, Peet is seeing a lot of customers overhaul older is closing, he says. “In some cases, we have seen trucks, even as old as 1996 models, and doing an automatics collect more than similar trucks selling engine rebuild.
“
”
34 August 2017 | EquipmentWorld.com
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used equipment report | continued Regional trends Dump and mixer used truck sales are following regional trends, says Chris Visser, senior analyst with J.D. Power Valuation Services. “The West Coast is doing well, as is the Southeast, so they are not seeing the depreciation that we’ve seen with sleeper trucks.” He adds that dealers he has spoken to at industry events are “happy about how their business is going.” The Pete Store has 14 dealerships in the Mid-Atlantic and Southeast. “It’s all good,” Kendall says. “Northern Virginia is hot right now, and Dallas has a lot of big jobs going on.” As a result, “we’re seeing good prices for used tractors, which may be a bit higher than some contractors want to pay.” And new trucks with their emissions controls and automatic transmissions are expensive in comparison. Then there’s the possible wait: “It’s taking longer to get delivery of a new truck since dump truck body manufacturers have a backlog,” Kendall says. All of these factors may tip the buying decision to a used truck. Keep in mind, Visser says, that construction and vocational trucks haven’t seen as steep a price drop as highway tractors. “I don’t expect a downward trend in construction and other vocational trucks,” Visser says. “The pricing should stay healthy.” Adds Kendall: “We see decent prices for mixers and dump trucks in the short and long term.”
R T- 3 0
R T- 5 0
R T -7 5
R T -12 0
Buying a used truck “One thing that’s encouraged us is that we’re seeing more small fleets coming in to buy used trucks,” Kendall says. “There’s some good choices out there right now, but I would encourage people not to wait too long. If you haven’t priced trucks in a while, you may be surprised what a decent used vocational truck costs.” A dealer may help you with the heavy lifting on a used truck search. With differing regulations, what works in one state may leave you with lessthan-maximum payloads in others. “There are a lot of state-to-state differences that limit where trucks can go,” Kendall says. “You need to make sure you’re in compliance and you can max your payload. And if you figure a truck right, it’s actually a greener solution. For instance, if we can get you an extra cubic yard of concrete on a mixer, and you make 10 trips a day, you may need one less trip per day.” Another part of used truck research: finding a body that matches your application. The engine, transmissions and rear axle requirements are different if you’re hauling rocks or moving wood chips. “In hilly terrain, you want your loaded truck to keep up with everyone else on the interstate,” Kendall says “One size does not fit all.”
V S -7 5
R S -7 5
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36 August 2017 | EquipmentWorld.com
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machine matters
| by Richard Ries
While artics continue to get larger, major advances are coming to all ADT sizes. Focusing just on tonnage misses these more important changes.
BEYOND SIZ Volvo G-Series ADTs come with a guarantee for model-rated fuel efficiency levels, as monitored by CareTrack telematics. If the articulated hauler does not meet the guaranteed levels, Volvo will reimburse a portion of the additional fuel cost. In addition, the frame and articulation/oscillation joint are protected for the entirety of the initial period of ownership or for the life of the machine, whichever is less. 38 August 2017 | EquipmentWorld.com
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SIZE
F
or decades, the average size of articulated dump trucks (ADTs or artics) has been creeping up. Where once 24-ton machines were considered the standard size, 35-ton machines are the new benchmark. And the over39-ton size category now sports 17 models (see chart). As long as they’re properly matched to their loading tools, bigger trucks deliver bigger production numbers and bring the sure-footed performance of an ADT to larger sites. But often obscured by all the discussion about size is the fact that significant improvements have been made to ADTs of all sizes, improvements that also have big effects on production and profit. Advanced electronics underlie many of these improvements, often in the form of better sensors. One example is the use of inclinometers. An inclinometer, as the name suggests, measures inclines. ADTs use inclinometers to check a truck’s angle both front-to-rear and side-toside. Sensors are also essential to onboard weighing systems, which not only track production but along with inclinometers are key components of systems ensuring safe and efficient operation. Maryanne Graves, ADT product manager, John Deere, says many improvements reflect the fact that ADT operators can be the least experienced, least trained of all operators on a work site. “Much work has been done to help these operators be productive
and, especially, safe,” says Graves. “But experienced operators appreciate the safety and production benefits of these features as well as the reduction in fatigue they provide.” As for size creep, Graves says, “Deere recognizes that while bigger trucks continue to emerge, there’s a huge market for smaller trucks on smaller sites, which is why we offer a full complement of features across our line.” That line ranges from the 26-ton 260E to the 46-ton 460E.
Better drivetrains Most improvements to ADT drivetrains reflect the demanding conditions under which these trucks work. Hill hold-assist keeps the truck in place if it is brought to a full stop on an incline. The feature uses the truck’s service brakes, which are released when the operator presses on the throttle. But the brakes are released only when there’s sufficient torque to move the truck forward, thereby preventing rollback. Among the new features on Volvo ADTs are Volvo Dynamic Drive and Dynamic Volvo Engine Brake (VEB) systems. Dynamic Drive matches transmission characteristics to the gradient of the slope and the payload. With Dynamic Drive, the machine will automatically detect when to choose a higher starting gear and when to shift up earlier. Or based on conditions, the truck may hold a lower gear longer, maximizing rimpull. Dynamic Drive can provide a 3- to 10-percent fuel efficiency improvement, depending on the model.
Artics get heavier According to the Equipment World Spec Guide, the number of more-than-39-ton ADT models has almost tripled in 18 years.
1999 2017
6 models 17 models
*Note: The 2017-18 Equipment World Spec Guide & Yearbook will be published in September. EquipmentWorld.com | August 2017 39
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| continued
Among improvements designed to increase operator comfort on the Cat 745 are more vents above and behind the operator for improved HVAC performance, shut-assist on the cab door to better resist dust infiltration, a wider range of adjustments on the heated/cooled operator’s seat and bonded rear quarter glass that eliminates the pillar from that location to improve visibility. With Dynamic VEB, the torque and shift points are adjusted according to current load, inclination and rolling resistance. This improves brake life by reducing the need to use the brake and retarder pedal when going downhill. “Dynamic VEB also leads to significant maximum torque on all models,” says Robert Palermo, product manager, Volvo Construction Equipment. On-board weighing, essential to both Dynamic Drive and Dynamic VEB, is standard on A35G and larger machines and optional on the A25G and A30G models. Maintaining traction is always a challenge for an ADT. Most manufacturers use locking differentials and axles. These are effective, but Komatsu took a different approach with their Komatsu Traction Control System (KTCS), which applies the hydraulic brake to the wheel that’s spinning and transfers power to the wheel that is not spinning. “The concern with locking diffs and locking axles is that, when engaged, they can create significant understeer,” says Bruce Boebel, senior product manager of wheeled products,
Komatsu. “With locks on, ADTs tend to plow ahead; whereas, with KTCS, traction is improved while the operator maintains much greater steering control.” Boebel says KTCS, which is in place on the first and second axles, also extends tire life and therefore reduces tire costs. Bell Trucks had been using V-6 and V-8 Mercedes engines but switched to the company’s inline 6-cylinder engines for their new E Series trucks. “Besides Tier 4 Final compliance, the new engines provide significant increases in power,” says Robin Pett, product manager. “The 40D, for example, was rated at 449 horsepower. The 40E is rated at 510 horsepower.” Bell also moved to seven-speed transmissions in their larger trucks. Bell chose to remove the transmission retarder on the large trucks and provide automatic retardation in the brakes instead. One of the reasons is that the engine and transmission combination on the new series is longer, but Bell says the change also improves functionality for operators. The operator can set the percent
Sideboards and tailgates
ust as there are sideboards Jcapacity available to increase the of rigid frame dump
trucks, there are sideboards and tailgates to bump the capacity of ADTs. It’s important to not exceed the weight rating of the truck, so these add-ons are recommended when hauling lighter materials such as ash, waste and recycling and coal. Some, such as the PhilippiHagenbuch Autogate tailgate, provide modest increases in volume capacity; the primary benefit is reduced spillage. Others, such as the Holmes body extension, dramatically increase volume capacity. The Holmes product takes a Cat 740 ADT’s stock capacity of 30 cubic yards to 50 cubic yards (heaped). Sideboards and tailgates from Hydex are available in custom sizes with extensions of 150 to 300 millimeters (about 6 to 12 inches). Consideration must be taken when adding side height as to whether current loading tools can still be used. Aftermarket sideboards and tailgates are available for both dump- and ejector-style ADTs. OEMs also offer these accessories and others, such as heated dump bodies and dump bin liners.
In addition to increased capacities, sideboards and tailgates (such as the PHIL Autogate shown) can provide a more centered and evenly distributed load. Better weight distribution enhances safety, especially on uneven terrain, and reduces premature wear on the front tires and front suspension.
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of retarder from 0 to 100. At 0 percent, retarder function is fully automatic, and Bell recommends operators use this setting. Because retarder action relies on oil shear in the space between the discs, there is no additional wear to the discs. The brake system has a dedicated hydraulic circuit providing filtration and cooling. The fan for the cooling system is software controlled to find the best balance between cooling, performance and fuel consumption. The Doosan DA40-5 has multiple drivetrain improvements. A bolt-on rear differential replaces the previous onepiece rear axle, reducing power loss to the wheels. Improved gear ratios reduce axle speed, extend component life and minimize vibration. The sum of the changes equals better operator comfort and improved fuel efficiency.
Better dumping Dumping the bin requires several steps, but they’re the same steps over and over all day long and are therefore perfect for automating with advanced electronics.
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While Doosan introduced a bolt-on rear differential and improved gear ratios on the new DA40-5, they kept their trademark front-mounted turning ring, tandem rear bogie and independent front suspension that work together to keep all six wheels on the ground and driving in even the most challenging terrain.
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Scott Thomas, product application specialist, Caterpillar, cites the assisted dump feature found on the 745 and 745 EJ as an example. “When the assist feature is turned on, pulling the hoist lever past a detent will bring the truck to a stop, apply the wait brake, set the engine to high rpm and raise the bed or activate the ejector automatically. This speeds up the dumping process and reduces cycle times while also lowering operator fatigue.” Better dumping is not just about faster dumping, says Thomas. Safety matters, too, especially on the uneven terrain
Bell says that while the two-axle design of the B60E doesn’t provide the off-road capability of the traditional three-axle design, the ideal customer doesn’t need the full potential of the standard design but rather a truck that handles moderately rough conditions and is matched to the same loading tools as 60-ton rigid frame trucks used on site.
Features incorporated in larger E Series trucks have been brought to the two smallest models, the 260E (shown) and 310E. The list includes updated styling as well as new cabs, frames and axles compared to the D Series trucks. A newly designed stay-tight oscillation joint, standard adaptive front suspension and balanced weight distribution also provide the agility and ability to navigate hostile terrain.
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Call 800-459-SEAT to find a dealer near you. EquipmentWorld.com | August 2017 43 Untitled-4 1
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[
machine matters
| continued
]
The Komatsu HM400-5 features K-ATOMiCS (Komatsu Advanced Transmission with Optimum Modulation Control System). The system has a six-speed, fully automatic transmission that uses advanced electronic controls to eliminate shift shock and torque cutoff to improve operator and engine efficiency.
where ADTs operate. “We also have Cat Detect with stability assist. This warns operators if they approach an unsafe angle during operation, both when driving and when tipping.” Cat Detect stops hoisting the body if raising it farther could lead to tip-over. The system monitors the cab, bed and ground independently. Palermo says Volvo’s Dump Support System allows the operator to see the percentage of side inclination of the truck and set allowable parameters for safe dumping operations. The feature can be configured three ways: off, on with an alarm, and on with an alarm and a complete bed stop.
Better everything When transitioning their two ADTs to the new -5 Series, Doosan improved visibility with sloping hoods, rearview mirrors with a field of view that goes to the center tires and a rearview camera. Heating and air conditioning, ergonomic controls and an air-suspension seat are all standard equipment. While owners continue their
trudge toward accepting telematics, manufacturers are leveraging the technology to everyone’s advantage. Where early telematics simply reported out-of-range conditions, current designs such as John Deere’s JDLink are all about overall machine health. The dealer and the factory both have roles in the program, but they’re different roles. “The information collected is the same but used differently by the dealer and the factory,” says Graves. The dealer looks at performance factors for individual machines to help customers derive the greatest value from each truck, she says, while the factory looks for trends by model across the entire customer base. Matching the type of truck to the application is key. “With good haul roads, a rigid frame truck is likely a more economical approach on a cost-per-ton basis,” says Komatsu’s Boebel. “But where there are poor jobsite ground conditions and an articulated truck is the right choice, customers will find that new models provide advantages in every area of operation.”
The Gen 10 TA400 is the first in a new line of ADTs from Terex and the first to be launched by the brand since Volvo acquired it in 2014. Power comes from a Scania DC13 rated at 444 horsepower. The Allison HD4560 automatic features adaptive shifting and a six-stage hydraulic retarder.
The Volvo A60H is powered by a Volvo D16J engine rated at 673 horsepower. The 100-percent differential locks operate in 4x6 and 6x6 modes. The front two axles are locked full-time and the back-axle diff lock engages as required; the design ensures peak traction while minimizing fuel consumption and tire wear. Hill assist, dump support, automatic traction control and on-board weighing are standard.
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maintenance
| by Preston Ingalls
PROXY TECHS
Help for your overtaxed maintenance team
Crews don’t need to be idle when the machine is. Train them as proxy techs so they can perform minor maintenance, freeing up time for your experienced diesel techs to do more complex work.
A
s with the weather, everybody complains about the lack of diesel equipment technicians, but nobody seems to be able to do anything about it. The demand for diesel technicians is growing at 12 percent a year, yet trade schools aren’t training nearly enough students to meet the demand. Contractors and fleet managers can’t do much about the state of vocational education, but the help everybody needs just might be sitting right under their noses. They’re called “proxy techs,” and they’re already working for you. A “proxy” is someone who has 47 August 2017 | EquipmentWorld.com
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the authority to represent someone else – for example, a medic filling in for a doctor on a battlefield. A proxy technician is an operations person who has the additional responsibility of performing or overseeing certain maintenance and repairs on equipment. They are normally rewarded or receive extra compensation as an incentive. A proxy tech can be anybody in your company: operators, laborers, supervisors or truck drivers. With a little guidance, they can perform small, simple, routine maintenance tasks that take up much of a technician’s workday. This frees up your trained and experienced technicians
to tackle more complex problems and major repairs. While many, if not most, of your employees may say they’re pedalto-the-metal all day and don’t have time to work on equipment, don’t forget there are plenty of rain and weather-related delays in which many on the crews are sent home. Properly trained proxy techs could use this downtime to strengthen fleet maintenance. Additionally, don’t overlook the fact that plenty of young people are willing to work overtime or weekends to earn extra cash. And if you’re using operators to do proxy tech work, it only stands to reason they’re going EquipmentWorld.com | August 2017 47
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maintenance | continued maintenance to take better care of that equipment and more closely monitor the condition of their machines when they return to the joysticks.
Elements of a program The key to tapping into this hidden potential in your workforce is to set up a program. Here is a 10-point list of what you need to develop a good proxy tech program: 1. Define the tasks, boundaries and limits of what your proxy techs should do. 2. Assess the skills and knowledge needed to accomplish these tasks. 3. Develop a process to train proxy techs. 4. Set up a selection and screening process. 5. List the tools and resources needed. 6. Detail the parts they need, something like an “uptime kit.” 7. Develop evaluation protocols. 8. Create a system to record the work being done by proxy techs. 9. Develop Key Performance Indicators to prove value with beginning baselines. 10. Develop compensation and reward standards.
Possible tasks Each company, its equipment and needs are unique, so you’ll want to spend time on the first program element – defining what your proxy techs do – and look hard for opportunities. Here are some examples of simple tasks common to most earthmoving equipment, paving and truck maintenance facilities: • Check and replace fuses • Replace lightbulbs and beacon lights • Change two-wire switches • Replace batteries • Check hydraulic quick connects, O-rings and hoses • Drain fuel-water separator and change filters
| by Tom Jackson |
TJackson@randallreilly.com
• Install or tighten loose bolts and pins • Tighten or replace fasteners • Replace air filters • Inspect and replace seat belts if needed • Inspect and replace rear view mirrors if needed • Check engine oil levels • Draw and process oil samples • Inspect and top off coolant if necessary • Check tire pressure • Inspect tires for wear or damage • Check track tension and wear on undercarriages • Grease zerks • Safety check to ensure horn, backup alarm and lights work. With a more advanced training program and assistance from an experienced mechanic, proxy techs could also take on more complicated tasks, such as: • Replace blades, buckets or cutting edges on equipment. Replace brooms on sweeping equipment. • Adjust tension on dozer, compact track loader and excavator tracks. • On pavers, inspect and adjust or replace, if necessary, front hopper rubber, augers, end gate wear plates and flight chains. • On material transport vehicles and road wideners, inspect, adjust or replace front hopper rubber, bearings and chains. • On milling machines, inspect, adjust or replace mold board wear blade, drum wear plates, track pads, conveyor belts or assist with drum swaps. • On rollers, inspect, adjust or replace scrappers, cocoa mats, spray nozzles, filters. • On tack trucks, inspect, adjust or replace spray bars, nozzles and mud flaps.
Testing and training requirements You’ll need to test your proxy techs before you select them for the work. Some people are all thumbs,
and some have a knack for mechanic work. To start your selection process, look for candidates who have shown a desire or interest in working on equipment. Employees who have some background, whether it’s tinkering with trucks, motorcycles or farm equipment, are usually good candidates. You should also select candidates who have been with the company at least six months. The Bennett Mechanical Comprehension Test is a good resource to use in the selection process. The BMCT can help identify candidates with good spatial perception and mechanical reasoning, as well as whether they have an aptitude for learning mechanical processes and tasks. Candidates can take the test online for $20. For more information go to: http://bit.ly/ZUNEVR6 Once candidates have been identified, your company fleet manager or shop foreman should develop the curriculum and conduct the proxy tech training. A two-day program should be enough to get the ball rolling. If your senior shop people aren’t comfortable training others, suggest they take a “train-thetrainer” course so they know how to communicate effectively. Google “train-the-trainer” and you’ll find plenty of resources for this. Another option is calling on vendors or outsiders like a community college or tech school to provide the training. Training should cover the basics of electrical systems (both AC and DC), understanding of fasteners, hydraulics, power train systems and lubrication principles. When the opportunity arises, outside training from OEMs can be valuable. These offerings are limited but essential for a proxy tech to understand basic mechanical, hydraulic and electrical systems. Supplement your classroom training with on-the-job demonstrations, and assign each
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student proxy tech a mentor or coach to go to with questions. Also, make sure your proxy techs understand the CLAIRE system. CLAIRE stands for clean, lubricate, adjust, inspect, repair and eliminate. This six-step process helps ensure a successful operation for preventive maintenance. For more on the CLAIRE process, see my article in the July 2016 issue of Equipment World: http://bit.ly/july2017eqw
Incentives There are a variety of ways to motivate proxy techs. Some companies pay an extra dollar an hour for the additional duties. One company I’ve worked with set a reward based on the goal of three repairs per month per proxy, resulting in a $100 gift certificate. If other crew members aid or assist the proxy with a repair, a
lunch reward up to $150 in value for all participants could be provided. Repairs must be documented on a work order to qualify for recordkeeping purposes.
Key performance indicators Any program like this should have key performance indicators built in to gauge its effectiveness and to sell the idea to upper management. To judge the value of a proxy tech program you should use various metrics or measures to gauge performance and costs. You’ll need to establish baselines before you start monitoring the effectiveness of your proxy techs. Here are some common measurements to consider: • Ratio of labor dollars to material dollars. In world-class operations, this ratio is typically .75 to 1. With a proxy tech program, you should see a
reduction in labor dollars versus material dollars. • Mean time to repair. This is a simple calculation of the average time it takes to execute a repair, including any delays. • Emergency maintenance response time. • Number of proxy repairs performed without callbacks in a 30-day period. • Customer satisfaction survey. • Crew maintenance cost per dollar of revenue. Proxy techs can’t replace good, well-trained mechanics – no more than an Army medic or Navy corpsman can replace a surgeon. But knowing you have someone on a dirt crew, bridge job or paving crew capable of performing basic maintenance can maximize the talent and productivity of your full-time shop technicians and reduce downtime in the field. Even office workers can be trained to perform equipment inspections and simple maintenance.
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CONGRATULATIONS
to the 2017 Contractor of the Year winner and finalists IN
R
E
N
W
Roy Chipley
Raymond de Vre’
Carl Jones
Hiram DuRousseau, II
Chipley Company Florence, South Carolina
Blacktop Paving Homewood, California
Carl R Jones Excavating & Hauling Fredricktown, Missouri
HD Truck & Tractor Lake Charles, Louisiana
Jim Hutzel & Charity Bennett
Leo Livengood
Matthew Whaley
KAT Excavation & Construction Hutzel’s Concrete Construction Sour Lake, Texas Malvern, Arkansas
Livengood Excavators Walnutport, Pennsylvania
Whaley and Sons Kodak, Tennessee
Richard Preston & Claudia Preston McCord
Joseph Palmer
Tom Sawyer
Marshall Flowers
McKinnley Excavating Chattanooga, Tennessee
Sawyer Construction Fremont, Nebraska
Sun Construction Darlington, South Carolina
Preston Construction Johnson City, Tennessee
Kerry & Belinda Trest
Sponsored by:
SP13010_2017_COY_Congrats_Ad.indd 1
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contractor of the year
| by Chris Hill |
ChrisHill@randallreilly.com
Matt Whaley, Whaley & Sons City, State: Kodak, Tennessee Year Started: 1972 Number of 114 employees: Annual revenue: $14-15 million Markets served: Highway, box bridge, commercial site prep, demolition, grading, utilities
Turning around the family business meant going back to basics
M
att Whaley had a passion to run equipment from an early age, but had to constantly nag his father to let him to do it. His father, Ken Whaley, wanted his son to one day run the company he started in 1972 – not a bulldozer. Matt’s rise in the company was incremental. He started by laying storm drainage, made his way up to excavator operator, stepped up to having his own utility crew and ultimately managed large projects. He started running the company in 2010. When Matt took over, however, the company was down to 15 employees and one job. As he sat running a bulldozer on that lone job,
he realized it was time to make major changes. Similar to the process he underwent to hone his work skills,
“
What we did yesterday doesn’t matter. It’s what we do today and tomorrow that matter.
”
– Matt Whaley
Matt decided to chip away at every aspect of the company. The first step: Restructure everything with the help
Matt Whaley began his construction career laying storm drainage. of his brother Austin, vice president of the company. “Coming out of the recession, every construction company was struggling,” says Matt. “This business is a debt-heavy business and only grows when the economy grows, unless you offer some specific specialized alternative. There is nothing patented about what we do for a living; there are a lot of people who do what we do.” He believed that while Whaley & Sons was potentially on the brink of failure, it could make a comeback. They had a decision to make. He and the handful of employees could turn the company around or go bankrupt. “At that point, that level of stress is really what changed my life, because I worked harder on myself at that point than I did on my job,” he says. “I underwent a self-taught school of EquipmentWorld.com | August 2017 51
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contractor of the year |
continued
The jobs Whaley & Sons get now are much larger than when Matt took over the company, such as this site prep contract for an apartment complex near Knoxville. reading business books and studying what is good debt, what is bad debt. We knew the construction process, but I didn’t know until I took over how much hadn’t been done on the business side. Working hard on myself meant I had to read more, study the specs more and understand the plans more. That way when I went to these meetings with engineers and architects, I made sure I could answer any question they asked.” He also realized a key management person had let many of his duties slide. “I thought he was doing everything and came to realize he wasn’t looking at the accounting, not dealing with the insurance companies, not dealing with the debt burden we had and not streamlining the estimating department.” He was let go. Matt rounded up the remaining employees and explored some basics, such as how much their equipment cost them per hour and their production rates 52 August 2017 | EquipmentWorld.com
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for work completed in a week, a day and down to the hour. “We took that information and applied it to our estimating department where we had our quantity takeoffs and determined we’d been bidding all wrong,” Matt says. “We’d been bidding not knowing what these values are. So once we plugged these values in, out spits a number that was 75 percent less than what was originally being bid for jobs. “Well, no wonder we weren’t getting work.” His focus became winning work based on the company’s cost to do the job. But there was still more to learn. “We took that information, and bid a few jobs that way,” he says. “Well, we learned real quick that maybe we were a little too cheap. We were leaving quite a bit of
money on the table. It only takes a few of those jobs to realize what your mistakes are.” The first three years of his tenure became a quest for work in a market in which jobs were rare. But he managed to find a niche in smaller scale projects, expanding from the company’s core government work to private development. “Our workload was based on municipal, county, federally funded projects; there was no commercial or private work,” Matt says. “Those were the projects that we pursued, and we were successful at getting four projects the first year. And we ran somewhere around $600,000 to $700,000 of revenue.” “That first year I was scared to death, but it was one of the greatest parts of my life because it was a struggle,” he adds. “There was no turning back; there was no plan B. It was the only thing that we knew at that time.” Matt says this work ethic helped create a snowball effect. Whaley & Sons’ revenue grew from $700,000 or so his first year of running the company to about $14 million at the end of 2016. It now has 114 employees. “As every year went by, we got better,” he says. “If you want your business to be better, you have to become better. So the more that we learned, the more we studied, the
Ken, Matt and Austin Whaley more that we knew, the more we understood how money works, how debt works, how relationships work – everything got better.” The company’s policy revolves around honesty and integrity, Matt adds. “We get buy-in from our employees on that philosophy. It’s a common thread I see with successful contractors, and it’s how you build relationships and your business. Trust is like a bank account. You make one withdrawal, and you’ll never fill that trust account back up.” Matt has also built trust with his clients. He calls his approach “leaving a profit for the customer,” by determining what “little extra” he can provide at no charge to the client. He says he approaches a job from an owner’s perspective and continues “the service process” long after the project is done. “Whaley & Sons could teach other contractors that there is more to success than big profit on a single project,” says Bob Mohney of Saddlebrook Properties. “They have succeeded in building a teammate relationship with us by being fair. Matt Whaley has done an excellent job structuring his operation with competent people in defined roles, making our projects with them run efficient and effectively.” EquipmentWorld.com | August 2017 53
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A peer group is a community of leaders committed to building their businesses toward excellence.
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highway contractor
| by Chris Hill |
ChrisHill@randallreilly.com
Oregon DOT
SWEEPER TRUCKS:
Another tool for contractors in prepping roadways for better pavements Coordinate the sweeper operation hesing Power Sweeping of Sewell, Tsweeping New Jersey, which provides power for highway construction
milling and paving, says the main concern for sweeper truck operators cleaning up millings is to match the speed of the milling machines. The company says sweeping in milling and paving operations requires an experienced operator who is alert, properly trained and communicates well with the milling crew. The operator must keep track of the milling machine during the entire process and, more important, have discussed the operation with the milling crew before the job starts and have a cohesive plan.
A
cleaner workspace is always a good thing, but in paving, it can contribute to the road’s quality, if done prior to additional lifts being applied, before seal coating and following milling. Paving contractors can use several sweeping options: they can own their own sweeping trucks, rent them or contract with a sweeping company to clean. The advantage to owning a sweeping truck, is it’s readily available, and not reliant on the schedule of another contractor. The downside: the equipment is often idle. Sean Wolf, owner of Wolf Paving in Oconomowoc, Wisconsin, has
This sweeper truck is cleaning up materials before new asphalt is placed on a roadway in Oregon. owned sweeping trucks for several years. After milling, his company uses the trucks to push material onto road shoulders to be used later, rather than collecting the millings and hauling them off. In this application, Wolf Paving uses heavy trucks with angle brooms. Prior to seal-coating, the company sweeps with smaller non-cabbed machines. To make better use of these machines, Wolf says, the company started offering its own sweeper services. “We have a couple of sweeping contracts,” Wolf explains, adding that the work is mainly for commercial and municipal clients. “It keeps that equipment from EquipmentWorld.com | August 2017 55
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highway contractor being idle when it’s not in use cleaning up road construction jobs or after milling.” For Wolf, that’s important during the winter in Wisconsin when paving activity slows. Contractors are paying more attention to the level of cleanliness prior to paving, says Adam Braun, associate product manager for manufacturer Elgin Sweeper. “Asphalt laying contractors understand that cleaner surfaces provide better adhesion, which leads to longer pavement life. This, in turn, saves everyone money.” Braun adds that the paving contractor demand for street sweepers has followed the uptick in funding for infrastructure improvements. “These contractors have always been an important business segment for us, and we have seen steady and healthy sales in this segment since 2008.” But not all contractors are able to buy sweepers outright, he explains, so Elgin dealers offer sweepers through leases or rentals. Here’s an overview of sweeper products on the market:
Schwarze Industries Schwarze Industries launched the SuperVac Vortex earlier this year, based on the design of its SuperVac Gale Force and SuperVac Updraft machines. The SuperVac Vortex offers the Isuzu NPR Gas chassis, a 109inch wheelbase and a
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Sweeper trucks remove debris, such as millings, to provide better adhesion for asphalt layers or seals.
Seattle DOT
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Sweeper maintenance tips Here is a list of 10 maintenance tips Schwarze Industries has developed for sweeper trucks: 1. Clean the debris hopper daily. This helps avoid dirt accumulation, which will generate rust as well as restrict the airflow and the performance. 2. Maintain the hopper screen. Keeping the hopper screen clean and free of any obstructions is essential because it is the central area where the airflow will move freely to the fan. 3. Inspect the fan and fan inlet daily. Look for debris buildup that can cause vibration and result in bearing and driveline damage. The fan should be replaced at the first sign of machine vibration. When it is time to replace the fan, the driveline should also be replaced with new bearings to keep it fresh and up-to-date. 4. Inspect and replace air seals. All rubber seals that are associated with the fan inlet, intake tubes and doors of the hopper should be replaced when they become worn, to keep a tight seal for optimum vacuum. All rubber seals should be replaced routinely. 5. Inspect and adjust the sweeping head. On all air sweepers, the sweeping head is considered the most important part of the machine. Any time the sweeping head is out of adjustment, sweeper performance will decline dramatically. A bent or twisted sweeping head will be difficult to adjust, and since it is the most important part, it should be kept in alignment and the rubber skirts replaced when it is no longer possible to be adjusted. 6. Inspect the rubber skirts daily. The rubber skirts reach the ground, so make sure they are sealing to the ground creating an optimum vacuum. The rubber skirts should be replaced when it is no longer possible to achieve a good seal on the ground.
A sweeper truck follows a grinder on a Seattle Department of Transportation project.
7. Adjust and replace curb brooms. The curb brooms are designed to move the debris from the curbs to the path of the sweeping head. As the curb brooms wear, they will require adjustment. It is necessary to replace the bristles or adjust the curb brooms’ strike pattern to maintain the optimum settings. The curb broom bristles should be replaced when it is no longer possible to achieve the strike pattern to clean the curb efficiently.
Oregon DOT
8. Monitor and maintain the hydraulic system regularly with the correct viscosity oil, hydraulic filter changes and pressure settings to ensure high performance. Replace weak or inoperative hydraulic components at the first sign of hydraulic pressure loss. Replacing the hydraulic filter will prevent hydraulic oil contamination and also return pressure, which will develop restriction on the hydraulic flow.
Oregon Department of Transportation using a sweeper truck to clean debris on a bridge deck during rehabilitation work.
9. Inspect the water system. The water system is vital to the life of the fan, keeping debris moist as it enters the hopper and not allowing it to stick to the screen, which would restrict airflow. Also, inspect the water filter daily to keep it clean and make sure the spray nozzles are clear. Repair or replace inoperable water system components to maintain adequate dust suppression for your sweeper 10. Keep a documented maintenance schedule log to ensure a long life for all the machine’s parts.
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highway contractor
Schwarze Industries’ SuperVac Vortex 31-horsepower Kohler liquid-cooled, fuel-injected engine. Other features include: • Dump height of 77 inches. • Heavy chain intake baffle, which slows debris as it enters the hopper. • 4.8-cubic-yard hopper. • C12 stainless-steel hopper standard. • Separate dump and screen cleanout doors. • Screen cleanout door fitted with a lever to open and prop the door from the ground level. • Hydraulic cylinders on the dump door sequenced to open before hopper lift. • Adjustable dump door hinges. • Built-in dual rear hopper strobe lights. • Optional shroud with soundattenuating foam inner liner. • 159-gallon water capacity; 93-gallon standard, with a 66-gallon option. Schwarze also has introduced a free five-year/5,000-hour extended warranty program on its A7 Tornado, A8 Twister and A9 Monsoon sweeper engines. It covers all sweeper engine conponents and applies to new John Deere Tier 4 propulsion engines installed between April 1, 2017, and Dec. 31, 2019.
| continued
Elgin Sweeper Elgin has two primary models for road construction applications: the Road Wizard and Broom Bear. The company reports the machines can take care of broken pavement, asphalt and concrete millings, mud and other construction debris. The trucks offer adjustable dumping heights and can unload debris into staged dump trucks or containers on the jobsite, so contractors do not need to take the time to unload at another location. “When it comes to road
construction applications, the bigger the side brooms, the better,” says Braun. “Both sweepers feature 46-inch trailing arm, free-floating side brooms that offer four-way motion and protection against damaging impacts. Hydraulic lift and extension control on both sweepers enhance performance while sweeping within a 10-footwide path.” The Road Wizard has a standard 5.4-cubic-yard hopper and a squeegee elevator that is the full width of the main broom, a feature the company says allows the machine to move large amounts of millings into the hopper without stalling. The Broom Bear offers a single engine, short wheelbase and can travel at highway speeds. “From our experience, both contractors and municipal customers are changing their focus on singleengine sweepers to minimize daily checks, maintenance costs and noise, while increasing payload capacity,” Braun explains. Elgin Broom Bear
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AEM Your Partner in Safety Association of Equipment Manufacturers (AEM) is proud to partner with National Safety Council for National Safety Month. AEM is committed to helping our industry remain safe. Our full line of safety materials communicate the preparation, safe operation and maintenance of equipment across all industry sectors.
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safety watch
| by Tom Jackson |
TJackson@randallreilly.com
T
he victim, a grade checker, had on all the safety gear: a highvisibility vest, hard hat and ear plugs. He was a 10-year veteran with the construction company. The motor grader had a functioning backup alarm, and the operator had checked the mirrors. Both men were working on the construction of a parking lot. The stakes had been hammered in, and the gravel was being spread by the motor grader. The grade checker had stepped back to the curb and was cleaning up loose gravel when he noticed one of his stakes had a torn flag on top. He began to walk toward the stake just as the motor grader operator put the machine into reverse. Accident investigators believe the grade checker was so focused on the damaged stake that he did not notice the motor
Illustration by Don Lomax
Never kneel near moving machines
grader’s change in direction. When the grade checker got to the faulty stake, he knelt down to replace it and disappeared from the motor grader operator’s rear views. The grader’s two left tires ran over the grade checker, causing serious injuries.
How this accident could have been prevented • Equip machines with rear vision cameras. • Consider installing collision avoidance or proximity warning systems on mobile equipment. • Make sure that machines with rear blind spots have reverse signal alarms that are distinguishable from the surrounding noise level. • When reverse signal alarms are not readily audible, use amber strobe lights.
• Develop, implement and train workers on visual methods of communication between machine operators and workers on foot. • Use spotters to communicate via hand signals with the operators in cabs. • Train all workers on machineand brand-specific equipment blind spots. • Train workers not to kneel or bend down on active jobsites except briefly and only then after making sure they’re out of the path of any moving equipment. For more information on this accident see: http://bit.ly/2g0ocltj For additional information and tips on preventing backover accidents see: https://bit. ly/2tu8Fm9
Date of safety talk: Leader: _____________________ Attending: EquipmentWorld.com | August 2017 61
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alerta de seguridad
| por Tom Jackson |
TJackson@randallreilly.com
Illustration por Don Lomax
Nunca se arrodille cerca de máquinas en movimiento
L
a víctima, un inspector de gradientes, contaba con toda la indumentaria de seguridad: un chaleco de alta visibilidad, casco y tapones de oídos. Tenía 10 años en la industria de la construcción. La motoniveladora tenía una alarma de marcha atrás que estaba operativa, y el operador había revisado sus espejos. Ambos hombres estaban trabajando en la construcción de un estacionamiento. Se habían fijado estacas de guía y la motoniveladora estaba esparciendo la grava. El inspector de gradientes había retrocedido hacia la cuneta y estaba limpiando un poco de grava suelta cuando notó que una de las estacas no tenía sus “plumas” —las cintas plásticas de guía— de la parte superior. Empezó a encaminarse a ella cuando justamente el operador puso la motoniveladora en marcha atrás. Los investigadores del accidente creen que el inspector de gradientes estaba tan concentrado en la estaca dañada que no se dio cuenta del cambio de dirección de la motoniveladora. Cuando el inspector de gradientes llegó a la estaca con problemas se arrodilló para arreglarla y desapareció del campo visual trasero del operador de la motoniveladora. Las dos llantas izquierdas de la motoniveladora pasaron sobre el inspector de gradientes causándole múltiples heridas.
Cómo pudo haberse prevenido este accidente • Equipe a sus máquinas con cámaras retrovisoras.
• Considere la instalación de sistemas para evitar choques o de alarma de proximidad en los equipos móviles. • Asegúrese de que las máquinas con puntos ciegos en la parte trasera tengan alarmas de señalización de marcha atrás que sean distinguibles del nivel de ruido del entorno. • Cuando las alarmas de señalización de marcha atrás no sean fácilmente audibles, use luces ámbar destellantes o estroboscópicas. • Desarrolle, implemente y capacite a los trabajadores en los métodos visuales de comunicación entre los operadores de maquinaria y los trabajadores de a pie. • Use vigilantes para que se comuniquen por medio de señales manuales con los operadores en las cabinas. • Capacite a todos los trabajadores sobre los puntos ciegos específicos de marcas y maquinarias. • Enseñe a los trabajadores a no arrodillarse o agacharse en los sitios de trabajo activos, excepto muy brevemente y sólo cuando están seguros de no estar en la ruta de ningún equipo en movimiento. Para más información sobre este accidente visite: http://bit.ly/2g0ocltj Para información adicional y consejos en inglés y español para prevenir accidentes en marcha atrás visite: https://bit.ly/2tu8Fm9
Fecha de la charla de seguridad: Líder: Asistentes: 62 August 2017 | EquipmentWorld.com
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snow clearing attachments | by Marcia Gruver Doyle
|
MGruver@randallreilly.com
Snow clearing attachments
Blade sections shift up and down in response to obstacles Case Construction Equipment’s six-model line of heavyand light-duty sectional snow pushers is compatible with both current and older model wheel loaders, skid steers, compact track loaders and backhoes. The moldboard sections move independently, allowing each section to shift up and down in response to uneven pavement or obstacles. The light-duty models go up to 13 feet wide; the heavy-
duty models top out at 17 feet wide. Each pusher has a Hardox 450 steel cutting edge that scrapes cleanly down the pavement, and if obstacles are encountered, only a single section lifts off the ground, helping reduce instances of property damage. If a section becomes damaged, the modular design lets you replace just that section instead of the entire pusher.
Poly-lined chute prevents snow clogging Attaching to skid steers and compact track loaders, the Volvo Construction Equipment snow blower has a two-stage hydraulic blower that is controlled inside the cab. The poly-lined chute ensures the blower will not become clogged with packed snow, according to the company. The high-volume chute throws snow up to 45 feet. The blower has replaceable tapered wear edges for easier maintenance. The adjustable skid shoes are designed to perform in all weather conditions. The unit uses either a single auger motor for standard flow or dual auger motors for high-flow situations. EquipmentWorld.com | August 2017 63
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| continued
Combine onsite salt storage and spreading in one unit Boss Snowplow’s QuickCube mounts on a skid steer and uses weatherproof, poly cubes that can be filled with deicing materials and staged at jobsites in advance of wintry weather. Designed to replace the need for remote salt piles, tarps and temporary salt shelters, the cubes can be stacked for storage. The QuickCube System consists of a forkshaped spreader assembly and six cubes, each holding 1/2 cubic yard of deicing material. When used, the cubes mount on a spreader assembly attached on a skid steer via a universal attachment system, giving the skid steer the ability to pick up, move and spread salt. A complete system has the same capacity as a 3-cubic-yard V-box hopper spreader, says the company.
Snow pusher stays rigid for heavy snow Doosan has two models of bucket-mounted snow pusher attachments for its 13- to 20-metric-ton wheel loaders and toolcarriers. The 12-foot-wide attachment weighs 2,200 pounds, while the 14-foot-wide version weighs 2,400 pounds. On both models, a 47-inch moldboard has a 1.5inch rubber cutting edge designed to protect surfaces. Three bucket mount support tubes help keep the snow pusher rigid. The units also have 12-inch push beams and steel skid shoes.
Direct snow up to 45 feet away The SB84H Snow Blower from John Deere is a twostage, 1,200-pound, high flow hydraulic blower compatible with skid steers, compact track loaders and compact wheel loaders. An electric-over-hydraulic operated poly-lined chute and deflector gives the unit the ability to direct snow up to 45 feet, says the company. A direct-drive hydraulic motor eliminates chains and sprockets. The unit can cut up to 78 inches wide and 36 inches high. Deere says the unit’s skid shoes adjust easily, and bolt-on wear-resistant tapered steel edges can be quickly replaced. 64 August 2017 | EquipmentWorld.com
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Remove snow over sensitive surfaces Bobcat’s snow pusher attachment has an open bottom and wide body, designed to quickly remove snow. Flotation and oscillation of the moldboard keep the snow pusher in contact with the ground, allowing for snow removal over decorative or sensitive surfaces, says the company. The blade floats, allowing it to follow ground contours. The blade position also can be fixed for powering through hard-packed snow and ice on flat surfaces.
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| continued
Skid shoes are reversible and replaceable Kubota’s SSP15 Series Snow Pusher, designed for both skid steers and compact track loaders, does not leave windrows on the sides of the blade when pushing. An optional 8-inch rubber wear edge is easy on surfaces while removing slush and snow. Available in 72-inch, 84-inch and 96-inch widths, the units are equipped with AS400 adjustable skid shoes that are reversible and replaceable.
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The 3600 Series Skid Steer Snow Pushers from Hiniker are available in 96- and 120-inch widths. The units have a rubber cutting edge that cleans paved surfaces. The 36-inch-tall by 36-inchdeep sides add snow moving capacity, and the 3/8-inch steel construction side plates provide durability. Heavy-duty skids allow for flotation on uneven surfaces. The pushers have a universal skid-steer attachment system; an optional pull-back attachment provides a second rubber cutting edge for back dragging operations.
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Attack snow removal with a variety of blade positions Spreaders designed for all-weather use The HERD sand, salt and mixture spreaders from Kasco Manufacturing come in three PTO-powered models, holding a maximum of 550 to 2,000 pounds of wet sand. An agitator system offers an even flow of material, giving the units the ability to handle wet and dry sand, sand mixed with salt or calcium chloride, and both salt and chloride separately. A 14-gauge powdered paint-coated hopper is designed for all-weather heavy use. The Model 750SSS can be hooked up with flow valve to control the width of the spread from the operator’s seat.
Moldboard’s geometry aimed at snow rolling action Worksaver’s four-model line of skid steer snow blades angle left or right and have a 3/8-inch by 6-inch steel cutting edge. The reinforced 10-gauge moldboard’s curl geometry is designed to enhance snow rolling action, says the company. The blades come in 5-, 6-, 7.5- and 9-foot lengths; the two larger blades have 5-degree lateral oscillation, allowing the blade to follow ground contours. Extension springs keep the moldboard upright and the snow rolling; optional hydraulic angle adjustment kits are also available.
Vernig Manufacturing’s V60 Hydraulic Snow Blade/ Pusher has variable pusher, straight and angled positions to attack snow removal. Electric-over-hydraulic control allows independent angling of each wing; the entire blade can also be angled separately from the wings for multiple blade and wing angle configurations. A floating frame link maintains full blade contact when the wings are angled, while also allowing down pressure when the wings are straight. By using oscillation and adjustable cast skid shoes, the unit’s edge can follow uneven surfaces. Three blade sections with individual trip edges use a total of eight compression springs.
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technology | by Marcia Gruver Doyle
|
MGruver@randallreilly.com
LX1 hybrid prototype tests achieve up to 50% fuel efficiency improvement over Volvo L150
A
fter six months of testing at two Waste Management (WM) facilities in California, Volvo Construction Equipment says its electric hybrid LX1 prototype loader achieved up to 50-percent fuel efficiency improvement over a comparison machine, well exceeding the 35-percent goal it set for the project. The LX1, unveiled at Volvo CE’s Xploration Forum last fall, underwent head-to-head testing with a conventional Volvo L150 loader powered by a 13-liter engine. In comparison, the LX1 uses a significantly smaller 3.6-liter diesel and is designed as a “series hybrid” machine – meaning in part that the engine drives the electric motors mounted at the wheels instead of directly driving the wheels. Since the electric motors are on the LX1’s wheel hubs, Volvo could change the frame, eliminating the axles and moving the bucket closer to the center of the machine. “This allows us to lift more with a physically smaller machine,” says Scott Young, Volvo CE’s electromobility director. Additional energy storage led to a reduction in engine size, and now small electric motors propel the machine’s hydraulic system. “With the LX1, we’re bringing ‘Star Wars’ technology to construction equipment,” says John Meese, WM’s senior director of heavy equipment, who partnered with Volvo on the project.
Whatever Rhonda wants… Rhonda Lepori, WM operator, took on the real-world
operation of the LX1 at Redwood during an unusually rainy winter and spring. She was paired with Mikael Skantz, Volvo CE test engineer. With Lepori’s input and Skantz’s engineering expertise, the LX1 went through a series of adjustments. Some loaders have power train modes; the LX1 has a “Rhonda” mode. “If Rhonda needed something changed, we could go into the software and make adjustments,” Young says. For instance, Lepori initially found the LX1 lacking when the loader was pushing and lifting, with the lighter weight of the machine – compared to the L150 – being a factor. “They adjusted lift speeds, back-out speeds to how I run it,” she says. “It was slow in the hydraulics and jumped out of a pile, but they made it smooth. For moving things, the hybrid is a lot faster. You just have to work it differently.” Operators used to the familiar diesel rumble might find travel in the LX1 eerily quiet. The whine of the electric motors is most noticeable during bucket lift, load and dump. The throttle is used instead of braking, reducing foot movement. “It’s so quiet you don’t have to wear earplugs,” Lepori says. There is, however, a potential downside to the quiet. “I go around a lot of piles that are blind, and so I had to be careful that people could hear me.” At the Redwood site, Lepori typically moved material between stockpiles. The active charging software in the machine detected work patterns and anticipated power
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Rhonda Lepori and John Meese with Waste Management. needs, charging the machine in advance. “The machine knows that when Rhonda Head-to-head testing: CALSTART measured the Volvo LX1’s fuel is doing a certain efficiency and emissions against type of work, then those of a Volvo L150. it’s likely she’ll be doing a task that will need more power,” Skantz says. “It is programmed to be smart enough to charge the battery in advance.” Users can set the level of battery charging. At WM, the engine kicked in when the battery got to 35 percent of its capacity. The LX1 was also tested at WM’s transfer station in Moreno Valley, California, where the LX1 worked in tight quarters loading trucks, as opposed to Redwood’s open spaces. “At Redwood, we wanted the machine to be as nimble as possible and go from zero to maximum safe operating speed quickly,” Meese says. “We wanted to quickly fill the bucket and dump it.” The Moreno Valley facility is primarily a truck loading operation, requiring fewer tweaks of the operator settings. The LX1’s ability to reduce wheel slippage by controlling the torque at each wheel, however, was an important factor at the transfer station. “We pay $4 million a year on tires in our transfer stations, primarily because of wheel slippage on wet floors,” Meese says. “If that number can be significantly reduced, that’s important beyond fuel efficiency.” Not that Meese is discounting the LX1’s fuel efficiency potential. On the baseline L150 loader, Meese estimates a fuel burn of 7 to 9 gallons per hour on an eight- or 10-hour shift. The 3.6-liter LX1, by comparison, runs occasionally at 4 gallons per hour. Another important feature in both WM test facilities: the “clean line” underneath the machine, made possible by eliminating axles and differential housing, since motors
The sloping hood is a safety advantage, says John Meese with Waste Management, giving the Volvo LX1 operator the ability to see people around the back of the machine.
power each wheel. “There’s very little there for material to wrap up in, because nothing’s really exposed, which is huge from a maintenance standpoint,” Meese explains. Then there’s the sloping hood. Unlike conventional loaders that need to deal with the space requirements of emissions control components, the green-already LX1’s hood contour allows the operator to see a person in close range to the machine. “It may look like a sexy design, but it has real safety benefits,” Meese says.
Still on the wish list Since the LX1’s loader pivot pins positioned the bucket closer into the machine body’s center, there’s also been a reduction in the machine’s ability to reach up and over. That’s something WM would like adjusted, since it typically buys 2 ½- to 3-foot lift arm extensions to get the lift height it needs, eliminating the need to use a larger machine. Technical support is another challenge Meese sees if the LX1 reaches production. “We won’t have the inhouse capabilities to do software diagnostics, so there’s really an onus on the dealer to bring up the level of their technician’s knowledge.” Project details The project was funded in part by an $1.8 million California Energy Commission grant. CALSTART, an organization aimed at growing a green transportation industry, conducted the project’s fuel efficiency and greenhouse gas emission tests. CALSTART will issue the official test report in September. Volvo CE is not making predictions on when the LX1 will – if ever – reach the production line. “But before we launch a machine like the LX1, you can expect to see elements of this design incorporated into our products,” Young says. Meanwhile, the LX1 is one of the key machines Volvo is using in its Electric Site quarry research, to be completed in 2018. EquipmentWorld.com | August 2017 69
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equipmentworld.com | August 2017
®
AD INDEX Equipment World August, 2017 Advertiser
Web URL
Page
Advance Metalworking
advancemetalworking.com
72
AEMP Membership
www.aemp.org
ASV
asvi.com
BEKA Lubrication
www.beka-lube.com
Bell Trucks America
belltrucksamerica.com
41
BKT USA, Inc.
www.bkt-tires.com
14
Bobcat
bobcat.com/newr-series
Chevron
chevronisoclean.com
Clearspan Fabric Structures
www.clearspan.com/adew
Crafco, Inc.
www.crafco.com
46
Dominion Equipment Parts, LLC
www.depparts.com
71
Donaldson
donaldson.com
37
Force America, Inc.
www.varitech-industries.com/ROADS
65
Hammond Air Conditioning, Ltd
www.hammondac.com
66
Hyundai
tomorrowsedgetoday.com
17
ICUEE Expo
icuee.com
59
JCB
jcb.com/teleskid
27
John Deere
johndeere.com/smartgrade
KAB Seating
800-459-SEAT
KCM
kcmcorp.com
Kubota
kubota.com
Liebherr Construction Equipment Co.
www.liebherr.us
Link-Belt Excavators
www.lbxco.com
Mack Trucks, Inc.
www.macktrucks.com
Matttacks
877-436-7800
72
Mobile Barriers, LLC
www.mobilebarriers.com
67
Motion Industries
motionindustries.com
15
Pengo
www.pengoattachments.com
72
Pioneer Bridges
www.pioneerbridges.com
65
IBC
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38
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RAM Commercial
ramtrucks.com/commercial
RoadTec
roadtec.com
7
Rubbertrax, Inc.
www.rubbertrax.com
Top Bid
topbid.com
35
TopCon
topconpositioning.com/MAX
25
Toy Trucker & Contractor Magazine
www.toytrucker.com
70
VMAC
vmacair.com/G30
18
Wirtgen
wirtgen.com/concrete-paving
BC
ZORO
zoro.com
45
10-11 42
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final word | by Tom Jackson
TJackson@randallreilly.com
End the gas tax S
ince Congress and the Trump administration are in a repeal and replace mood, I have another suggestion for them: Repeal the federal fuel tax of 18.4 cents per gallon for gasoline and 24.4 cents for diesel. Why? Three reasons: First: The program no longer works. Created back when Washington, D.C., functioned properly, our national interstate program boosted commerce and improved national security. It was funded by gas taxes – debt-free, pay as you go. Today, the wisdom brought to bear for the Eisenhower interstate program has devolved into gridlock. The five- to six-year cycle for highway bills that served so well for almost half a century turned into a series of tenuous one-year extensions that left contractors wondering whether there would be any work from year to year. The new bill, the FAST Act (Fixing America’s Surface Transportation) is a little better, but Congress didn’t have the courage to find funding for the last three years of the cycle – so once again, contractors, equipment manufacturers and a multi-billion-dollar industry are left hanging. Second: The money belongs to the states to begin with. The federal government only collects it and then sends it back to the states, which typically kick in matching funds. Third: The federal gas tax is not indexed to inflation and hasn’t been raised since 1993. This neglect should be reason enough to
call for its demise. No government program I know of has had its funding frozen for a quarter of a century – proof that Congress is not in the least serious about infrastructure. If a state wants to plow that money back into the roads, great. If a state wants to spend that money to put Ritalin in its drinking water or give it back to citizens and let the roads go to hell, so be it. State governments are more transparent, accountable and closer to the voters’ needs anyway. More than half the states in the last three years have legislated their own gas tax increases. Every poll taken in the last 10 years has shown broad support for increased infrastructure funding. And in a remarkable example, the South Carolina legislature this year overrode the governor’s veto and enacted a state gas tax increase (12 cents over six years), proving that the closer you get to the people, the better the political decisions. If the citizens of South Carolina – the reddest of red states – want this, I think it’s obvious that Washington no longer represents the interests of the people, conservative or liberal. There’s taxation but no representation. The federal gas tax has outlived the honest and patriotic men and women who created it. A program created by the Greatest Generation shouldn’t be left in the care of the worst political generation in American history. End the federal gas tax and let the states figure it out.
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