Equipment World August 2018

equipmentworld.com | August 2018

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More options, technology push profits

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USED EQUIPMENT REPORT: With new machines at a premium, used equipment demand soars

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PRECISELY THE CONTROL YOU WANT. INDUSTRY-EXCLUSIVE UNIVERSAL MACHINE CONTROL provides universal wiring, mounts, harnesses and machine configuration. This allows the machine to be outfitted at any time with your choice of Leica, Topcon or Trimble machine control system, helping to improve resale value since it is not tied to a single system solution. Add to this best-in-class drawbar pull, exclusive SCR technology, maximum visibility, a quieter cab, adjustable controls, and time-saving serviceability features, and you’ve got the ideal dozer for any job and operator. CaseCE.com/Universal

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ProCare is a factory fit program available on new heavy machine orders. Š2018 CNH Industrial America LLC. All rights reserved. CASE is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates.

Vol. 30 Number 8 |

Cover Story

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table of contents | August 2018

36

MACHINE MATTERS:

DOZERS NOT NAPPING

Without fanfare, dozers get better at what they’ve always done and take on new tasks.

Equipment 17

Marketplace

21 Used Equipment Report

Cat’s new CW16 roller, New Holland C237 CTL, IPA’s Pneumatic Fuel Tank Sweeper, Gradall crossover excavators, Western Global EnviroCube, Weego 66 mobile power pack

67 Land Clearing Attachments From grapples to mulchers, these equipment add-ons tear through trees and brush and help load it away.

Our special report gives the lowdown on: • New tax breaks for used equipment purchases • How a manufacturer backlog of new machines is driving the used market • How to inspect used equipment • Auction price trends • What used machines are hot sellers in 2018.

EquipmentWorld.com | August 2018

5

table of contents | continued

Features 49 Maintenance

Affordable, portable and customizable, shipping containers make great storage units and jobsite offices.

54 Road Technology

Volumetric concrete mixers gain popularity as they help companies cut downtime, boost profits.

61 Contractor of the Year Finalist Matt Bachtel, Bachtel Excavating, Massillon, Ohio

®

equipmentworld.com facebook.com/EquipmentWorld twitter.com/Equipment_World Editorial Director: Marcia Gruver Doyle Executive Editor: Tom Jackson Online Editor: Wayne Grayson Senior Editor: Joy Powell Managing Editor: Don McLoud Contributing Writer: Richard Ries editorial@equipmentworld.com Media Sales Geoffrey Love: gdlove@randallreilly.com Pete Austin: paustin@randallreilly.com Drew Ingram: drewingram@randallreilly.com Patsy Adams: padams@randallreilly.com Jordan Arsenault: jordanarsenault@randallreilly.com Art Director: Tony Brock Advertising Production Manager: Leah Boyd production@equipmentworld.com

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Departments 9 On Record

Tier 4 resale challenge not here...yet.

13 Reporter

Kubota buys land for Kubota Ranch, distribution center.

47 Quick Data Excavators

53 Technology

Cat Detect provides alerts on hardhats, vests of nearing machines; Guardian Angel personal light illuminates up to two miles.

64 Safety Watch Heat kills

66 Heavy Trucks

Mack Anthem now available with fuel-efficient engine, aero package

74 Final Word

No time for slackers.

For subscription information/inquiries, please email equipmentworld@omeda.com. Equipment World (ISSN 1057-7262) is published monthly by Randall-Reilly, 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 2029, Tuscaloosa, AL 35403 or email at equipmentworld@ omeda.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, 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 arise out of publication of such advertisement. Copyright ©2018 Randall-Reilly, LLC, all rights reserved. Reproduction in whole or in part without written permission is prohibited. Equipment World is a trademark of Randall-Reilly, LLC. Randall-Reilly, LLC neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.

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August 2018 | EquipmentWorld.com

Chairman Emeritus: Mike Reilly President and CEO: Brent Reilly Chief Operations Officer: Shane Elmore Chief Financial Officer: Kim Fieldbinder Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Senior Vice President, Audience Data: Prescott Shibles Vice President, Events: Stacy McCants Vice President, Digital Services: Nick Reid Vice President, Marketing: Julie Arsenault Vice President, Business Analyst: Joe Donald Director of Media Sales: Seth Becker Vice President, Strategic Accounts: Michael Newman For change of address and other subscription inquiries, please contact: equipmentworld@halldata.com Editorial Awards: Best Editorial Series, 2018, Construction Media Alliance Eddie award for B-to-B Series of Articles, 2016 Highways 2.0, Folio: magazine Editorial Excellence, Original Research, Silver Award, 2016 American Society of Business Publication Editors Jesse H. Neal Award, Better Roads, 2011 American Business Media Robert F. Boger Award for Special Reports, 2006, 2007, 2008 Construction Writers Association Jesse H. Neal Award, Best Subject-Related Series of Articles, 2006 American Business Media Editorial Excellence Special Section Gold Award, 2006 Midwest-South Region, American Society of Business Publication Editors

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on record | by Marcia Gruver Doyle MGruver@randallreilly.com

Tier 4 resale challenge not here…yet

R

ewind to 2012, when we were getting familiar with Tier 4 emissions regulations. Many were then sounding the alarm that lower-regulated countries – a good market for used U.S. machines – wouldn’t be able to use the machines that normally came their way.

The reason was simple: these countries use higher sulfur fuel, fuel that quickly renders Tier 4 machines inoperable since this equipment requires ultra-low sulfur diesel fuel to run properly. Not a problem in the United States and Canada, where ULSD is the only kind of diesel you can buy. Much of the rest of the world, however, has much higher fuel sulfur levels than ULSD’s 15 parts per million or below.

Along the way many manufacturers have devised ways to “de-tier” these machines for sale in lower regulated countries.

These de-tiering solutions add cost to the U.S. used machines, however. This cost puts the machines coming out of U.S. contractors’ fleets at a price disadvantage, particularly when compared with foreignmade used machines from manufacturers that never had to install Tier 4 emissions components for the lower-regulated markets they serve.

The ULSD picture has improved in the interim, but not by much. While in many countries the diesel sulfur levels have decreased since 2012 – including in China – several key U.S. export markets still have too-high sulfur levels in their diesel fuels, according to a March 2018 map by the United Nations Environment Programme.

(This map can be accessed at http://bit.ly/ dieselsulfurlevels.) This includes most of Central and South America (the exception: Chile).

Doug Olive, senior vice president of valuations and appraisals with Ritchie Bros. told Equipment World that “nonTier-4 countries simply will not compete in newer equipment auctions.” (See more of his comments starting on page 32.)

Right now, with U.S. contractors having to wait for equipment to make it off the assembly line, the demand for lower-hour used machines – most of them Tier 4 – is high. Domestic demand is consuming domestic supply.

But just because we’re now able to gulp down all the Tier 4 equipment that’s entering the used market doesn’t mean we always will be able to do so. And as time goes by, a greater proportion of the used equipment inventory will be Tier 4 compliant. Tier 4 Interim regulations came on board in 2012 for certain horsepower ranges in full-size equipment. That means we now have six-year-old Tier 4 machines in the used market… and the numbers will only grow.

The looming question: What happens when the next inevitable construction downturn occurs? In the past, lowerregulated foreign markets for used equipment served as a relief valve, as well as viable secondary markets. Assuming these countries will take their time in becoming ULSD compliant, that relief valve now is essentially gone.

EquipmentWorld.com | August 2018 9

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reporter

| staff report

Kubota buys land for Kubota Ranch, distribution center

Briefs

K

ubota has been buying land in Texas and Kansas to expand its operations and increase its service to dealers.

The company has bought 318 acres in Ponder, Texas, for its future Kubota Ranch, designed to improve its relationship with its dealers and expand the company’s research and development.

The ranch will be used for testing, operating, demonstrating and training on the company’s equipment, as well as unveiling new products to dealers.

The land for Kubota Ranch is 30 miles northwest of Kubota’s North American headquarters in Grapevine, Texas, which is in the DallasFort Worth area.

The company also says it has completed the purchase of 200 acres in Edgerton, Kansas, to add two logistics facilities of 1 million square feet each at

a cost of $87 million. Kubota says the new North American Distribution Center will allow it to expand distribution capacity and streamline logistics for the speedier delivery of its parts and equipment in the United States, as well as be a source for the company’s global exports.

Kubota has leased a 765,000-square-foot facility for logistics since 2015 in Edgerton, and that facility will remain in operation until the new center is built, the company says.

Along with distribution and exports, the new center will allow the company to continue to receive and process shipments from Asia and Europe, in addition to goods from suppliers in North America. The new campus will also house Kubota’s new Midwest Division office.

–Don McLoud

Liebherr has begun work on a $40.6 million logistics center at its birthplace, Kirchdorf an der Iller, Germany. Construction on the 253,000-square-foot center – which will consist of two high-bay warehouses, logistics area for order packing and an incoming-goods area – is scheduled to end in 2020.

Since opening its U.S. headquarters in Des Moines in 2017, Netherlands-based compact equipment maker Tobroco-Giant has added 17 North American dealers, says company owner and director Toine Brock. The company sold 150 machines its first year and plans to start manufacturing in the United States after it sells more than 500 units a year, Brock says.

Volvo Construction Equipment is reporting second-quarter sales up 32 percent over the same period in 2017. Volvo sales in North America rose 17 percent to $498.8 million.

The Ashstead Group, operating in the United States as Sunbelt Rentals, is reporting a 20 percent surge in revenue – and 21 percent in rental revenue – for its fourth quarter.

The growth includes 62 new U.S. stores in the past year.

Trimble will acquire Viewpoint Construction Software in a $1.2 billion all-cash deal.

The Portland, Oregon-based software helps with planning a construction project and delivers information to the entire project team.

(continued on following page) EquipmentWorld.com | August 2018 13

reporter |

continued

More growth forecast for aerial lift rental fleets

T

he U.S. aerial lift rental market continued its three-year rise, posting 4 percent rental fleet growth in 2017 over 2016, with more growth likely in the next two years, according to the 2018 Powered Access Rental Market Report.

Leading the rise are scissor lifts, which remain the dominant type of mobile elevating work platform (MEWP) equipment in the country, says the report compiled for the International Powered Access Federation by Ducker Worldwide.

Global MEWP rental fleets posted 8 percent growth in 2017, rising to 1.35 million.

The U.S. rental fleet size has grown from 530,525 MEWPs in 2015 to 583,239 at the end of 2017. The report predicts 2018 will also see 4 percent growth.

MEWP rental revenue in the United States has also grown steadily since 2010 after posting a 24 percent loss in 2009 during the Great Recession, when revenues sank to $6 billion. Rental revenues rose 5 percent in 2017 over 2016, to $9.4 billion. The report predicts two more years of 5 percent revenue growth, reaching $10.3 billion in 2019.

–Don McLoud

Michelin acquires tire, track maker Camso

M

ichelin has acquired Canadian off-the-road tire and track maker Camso in a $1.45 billion deal.

Michelin plans to combine its OTR

14 August 2018 | EquipmentWorld.com

division with Camso and move all OTR decision making to Camso’s headquarters in Canada.

Michelin says the acquisition will create the “world’s number one OTR market player” and “will represent more than double the net sales of Camso, supported by 26 plants and approximately 12,000 employees.”

Michelin says it expects cooperation between the companies’ researchers in the new combined division to further innovation in tracks and airless tires.

–Wayne Grayson

Briefs (continued) United Rentals has acquired BakerCorp International Holdings for $715 million, expanding its massive presence in the trench shoring market and entering the European market for the first time. BakerCorp serves an estimated 4,800 customers in North America and Europe.

BlueLine Rental’s parent company, Vander Holding, has submitted a draft registration statement to the U.S. Securities and Exchange Commission for the proposed initial public offering of the company’s common stock. The offering by the company based in the Woodlands, Texas, area is expected to commence when market conditions allow.

Machinio, a startup with designs on being the Google of heavy equipment, has been acquired by Liquidity Services in a $20 million deal. Liquidity Services operates a network of e-commerce marketplaces in more than 500 product categories.

Able Equipment Rental of New York has bought the aerial equipment assets and service operations of Mobile Lifts Inc. of Norristown, Pennsylvania, and will run the branch as its fifth location in the Northeast, the company says.

For more on each of these stories go to equipmentworld.com.

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marketplace

| by Don McLoud |

DonMcLoud@randallreilly.com

EDIT PICOR’S K

Roll with oscillation, auto speed The CW16 pneumatic roller from Caterpillar is designed for mid-size roadwork and for use on granular and all types of asphalt-mix designs. The rubber-tire roller comes in nine-wheel and 11-wheel models, achieving 69-inch or 84-inch compaction width, respectively. The oscillating front wheels help compact

soft voids across the roller’s width, and a 1.25-inch tire overlap helps ensure even compaction across the surface. The roller’s two-speed hydrostatic, electronically controlled propel system automatically shifts between speed ranges, and it has a coast feature to save on fuel.

Crossover excavators With a full tilting, telescoping boom and easy travel between jobsites, Gradall is calling its new Discovery Series models the industry’s “first crossover excavators.” The new models are perched atop Freightliner’s M3 truck chassis and can use a range of quick-change attachments. The triangular boom tilts 220 degrees.

The excavators can perform such tasks as ditching, grading, replacing culverts, landscaping, mowing, vegetation control and street and sidewalk repairs. Maximum dig depth is 13 feet, 6 inches. Max boom reach is 24 feet, 11 inches.

EquipmentWorld.com | August 2018 17

marketplace

| continued

High-capacity CTL with no DEF

Keeping dirty diesel out of engines IPA Tools has developed the Pneumatic Fuel Tank Sweeper, a turnkey system for removing debris, impurities and water from contaminated diesel fuel oil and kerosene. It can be used to bulk transfer or to filter and polish these fuels at up to 26 gallons per minute using a diaphragm pump. A spill-free, drain-down design keeps the process clean. It comes with 17- and 13-micron filters, 11-foot intake and output hoses, a rigid and a flexible wand with a flow-through brush and a quick connect ball valve.

The steel cart rolls on 10-inch pneumatic wheels.

New Holland Construction’s addition to its compact track loader lineup, the C237, holds fast to steep slopes and moves easily over various terrains. The CTL also has nearly the same operating capacity as the company’s largest CTL, the C238, but with less horsepower. New Holland kept the C237 to 74 horsepower, which means the Tier 4 Final FPT engine does not require diesel exhaust fluid. The C238 has a 90-horsepower FPT engine. The C237 has a rated operating capacity of 3,700 pounds at 50 percent of tipping load versus the C238’s 3,800 pounds.

Give a jolt to engines, phones Weego says it has designed the safest and easiest way to give a jumpstart to your jobsite trucks and light-duty equipment as well as your phones, laptops and other mobile devices. The Weego 66 is a 12-volt lithiumion power pack that weighs 2.5 pounds and jumpstarts engines up to 10 liters by delivering up to 2,500 peak amps and 600 cranking amps.

It also has 5-volt USB and 19-volt outputs for powering laptops and mobile devices, and it’s able to charge a cellphone nine times before it needs recharging, the company says.

Fuel in the cube

In designing its latest tank for refueling jobsite equipment and trucks, Western Global went from the circle to the cube. The result is the EnviroCube, which the company says has advantages over round tanks. The EnviroCube stays within height, length and width standards for over-the-road transport. It also occupies less space on the jobsite. It can be moved by using its crane lift hooks or four-way forklift pockets. The EnviroCube comes in four models, ranging from 4,966 to 12,329 gallons.

18 August 2018 | EquipmentWorld.com

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143–768 HP

used equipment report

New tax law brings big deductions for buying used construction equipment

C

by Don McLoud

ontractors buying used construction equipment in 2018 and over the next five years will reap some hefty tax breaks, including one that was previously only available for purchases of new equipment.

The tax breaks come in two forms, section 179 and bonus depreciation, both of which now allow contractors to deduct 100 percent of the cost of new – and used – equipment in the first year they put the equipment into use. That also includes financed equipment.

“It’s a huge benefit,” says Ken Sibley, partner in charge of the Dallas office of Calvetti Ferguson CPA firm. “The used market now is really going to get a benefit because you can actually write the stuff off; whereas, before you couldn’t write it off as aggressively.”

For Gabe Vitale, president and CEO of C&L Sweeping & Pavement Maintenance in Jackson, New Jersey, the tax break combined with business growth is causing him to increase his annual equipment purchases of used street sweepers. He expects a windfall come tax time to help the company’s cash flow.

“We’re really taking advantage of that right now,” he says. “We’ve been picking up a lot of our used

This chart by www.crestcapital.com shows an example of possible savings from the new deductions for section 179 and bonus depreciation. A section 179 tax deduction calculator is available at section179.org.

equipment, taking the deduction and doing a complete refurbish on them.”

Expanded deductions for equipment purchases Under the new tax law signed by President Trump on December 22, 2017, first-year bonus depreciation expanded to include used equipment bought and placed in service after September 27, 2017. The

first-year bonus deduction for all qualified equipment also increased from 50 percent to 100 percent of its cost.

Another provision of the new tax law increased the maximum depreciation deduction on section 179 property from $500,000 to $1 million and increased the cap on the equipment purchases from $2 million to $2.5 million. Those changes took effect December 31, 2017, according to the Internal Revenue Service. Under section 179, equipment purchases are treated as an expense and deducted from income.

Both section 179 and bonus depreciation allow 100 percent writeoff of the cost of used equipment in the first year. Both also stipulate the equipment must be put into use in the year the purchaser takes the deduction.

For example, if you buy a used backhoe this year but you don’t put it into service until 2019, you will have to wait until filing your 2019 taxes before taking either 179 or bonus depreciation. But if you put it into use the same year you buy it, you can deduct from that year’s taxes.

There are some other caveats, as well.

“The used equipment can’t be

Special Used Equipment Report

Demand for used machinery rises as lag time for new equipment grows.......................p24

Used equipment inspection checklist: This is no time to gamble.....................p28

Ritchie Bros. VP: Prices on used Tier 4 machines strong due to tight new supply.......................p32

Auction price trends.......................p34

EquipmentWorld.com | August 2018 21

used equipment report

| continued

Thanks to new tax breaks for used equipment purchases and business growth, C&L Sweeping & Pavement Maintenance in Jackson, New Jersey, has been purchasing and refurbishing more used street sweepers than in previous years, says president and CEO Gabe Vitale. equipment that you’ve used before,” Sibley says. “It’s got to be new to you, and it can’t come from a related party. It can’t come from any of the associated companies in your control group or from a relative or anything like that.”

179 versus bonus Though the benefits of 179 and bonus are similar, there are some significant differences.

“The major difference is 179 comes with a cap on the amount of expenditures,” says 22 August 2018 | EquipmentWorld.com

Paul Helderman, partner with WithumSmith+Brown CPA firm in Princeton, New Jersey.

For 2018, that cap is $2.5 million, at which point the deduction begins to phase out dollar-for-dollar and reaches zero at $3.5 million.

However, bonus depreciation does not have a cap. “So if you can’t qualify under 179 because you exceed those thresholds, then the bonus depreciation can kick in,” Helderman says. “And you’d be able to claim 100 percent of that purchase price.”

Another difference: 179 is limited to taxable income. So if you report a loss, you don’t qualify. But companies with an income loss can still

“The used market now is really going to get a benefit because you can actually write the stuff off; whereas, before you couldn’t write it off as aggressively.”

–Ken Sibley, partner, Calvetti Ferguson CPA firm

deduct bonus depreciation, according to Richard Middleton, partner with Alloy Silverstein CPA firm in Cherry Hill, New Jersey.

“So that’s a big advantage,” Middleton says. “That’s something someone should consider when they’re deciding whether to use 179 or bonus depreciation.”

Typically, though, 179 is taken first, and then once the cap is reached, the business can take the bonus depreciation, accountants say. The 100 percent bonus depreciation is scheduled to start phasing out on January 1, 2023, according to the IRS. “Obviously, it’s a great benefit if their business needs’ include acquiring new or used equipment; it’s a good time to take advantage of that because it does go away after a while,” Helderman says.

“These are expiring provisions.”

Planning crucial for max tax benefits Though accountants agree the new tax law will be a big benefit for many construction firms purchasing equipment, as with any tax matter, there is more than just one variable to consider.

First, by taking 179 or bonus depreciation, you can’t depreciate that equipment after the first year.

“The benefit is you buy something and you can write it off immediately, which saves you the taxes for that current period and you’re not spreading the cost out over five years or seven years,” explains Middleton. “The problem with writing everything off in that initial time period is you’ve got no depreciation expense going forward, unless “Planning is just so critical in all these decisions.”

–Richard Middleton, partner, Alloy Silverstein CPA firm

“You don’t typically use tax benefits as a reason to buy equipment, but if your business needs it for sound business purposes, it’s a good time to do it to take advantage of these tax benefits.”

–Paul Helderman, partner, WithumSmith+Brown CPA firm

you buy more equipment.”

So whether you take the immediate write-off and how you take it can depend on your business’ future plans, what tax bracket you’re in and other considerations.

The new law also did away with tax deferral on equipment trade-in allowances, Helderman says. But the bonus depreciation can mitigate some of that lost benefit. Sibley added that this won’t likely be a big deal for many of his clients who keep their equipment so long there is little recapture value left.

The states you do business in can also play a role in your tax decisions. Some states will follow the federal tax changes, but other states, particularly California and Northeastern states, tend to treat 179 and bonus depreciation differently, according to Sibley. So your depreciation choice on your federal return might not be the best choice for your state return.

“You really have to know what’s going on with your particular state,” Middleton says. “And if you’re a contractor that’s doing business in multiple states, that becomes a consideration because you’ve got potentially different rules for all the places. Planning is just so critical in all these decisions.”

Big advantages Despite the need to plan, most contractors will find the new tax law beneficial when it comes to purchasing equipment, be it new or used, accountants say.

Helderman cites the finance concept

of “net present value” – a dollar today is worth more than a dollar in the future because of potential earnings and inflation – in explaining the advantage of taking a write-off in the first year versus spreading depreciation over time.

“If you’re able to deduct the full cost of your equipment purchase in year one, you’re getting an immediate tax benefit versus having to spread it over five years,” he says. “A benefit today is worth more than a benefit five years down the road.”

The deductions also hold true for financing used equipment, which could enable the deduction to exceed the purchaser’s loan payments in the first year.

“You’re getting the deduction upfront for tax purposes,” he says, “and you’re paying the equipment off over time at cheaper dollars because of that net present value concept.”

For C&L’s Vitale, who is a client of Helderman’s firm, the tax law should provide a windfall for his company as it adds to its fleet of street sweepers.

“It’s a combination of both taking advantage of the tax incentive but also to support our growth,” he says.

Helderman says that’s the proper way to view the new tax law.

“You don’t typically use tax benefits as a reason to buy equipment, but if your business needs it for sound business purposes,” he says, “it’s a good time to do it to take advantage of these tax benefits.”

EquipmentWorld.com | August 2018 23

used equipment report

| continued

Demand for used machinery rises as lag time for new equipment grows

W

ith the construction industry continuing its upswing, some manufacturers have lag times of nine months to as much as a year for new equipment.

Meanwhile, the inventory of used equipment is getting eaten up and prices are rising, dealers say.

“You’ve had strong growth and strong output while you’ve also had strong demand, and the supply is having a hard time keeping up with the growth in demand,” says Michael J. Murray, a regional manager for Associated Equipment Distributors (AED). “It’s a very, very good year for the industry; it’s actually been a good 18 months.”

Across the board, he says, dealers report robust sales, parts and service activity.

“The way to look at it is that a rising tide lifts all boats when it comes to used equipment,” Murray says.

“If there’s liquidity in the market and optimism is strong and people are doing projects, whether it be building houses or paving roads, you’re going to have more equip24 August 2018 | EquipmentWorld.com

by Joy Powell ment sales. And that’s going to be both new and used equipment.”

Len Kirk, president and CEO of Hayden-Murphy Equipment in Bloomington, Minnesota, says that when prices on new equipment go up and availability of new equipment goes down, the used market ramps up proportionally.

“Used values go up in concert, if you will, with the new equipment availability and the new equipment price,” Kirk says. “And right now, the availabilities on a lot of

Len Kirk, CEO and president of HaydenMurphy in Bloomington, Minnesota, says that when prices on new equipment go up and availability goes down, the used market ramps up proportionally.

equipment are out until late third to fourth quarter, or until the end of the year.

“That said, if you have a good relatively late-model trade-in, either on the dirt side or the crane side, it’s going to bring more money because the guy’s got a project to build and he needs the equipment to do it.”

Hayden-Murphy has two sides to the 61-year-old business – cranes and roadbuilding – and sells to customers worldwide.

“A lot of our big customers have a lot of work, big backlogs,” Kirk says. “We deal a lot in structures, bridges, roads. We’re heavily involved in the wind industry, which is both cranes and non-crane. These guys have to build the roads to get to the towers through the farmers’ fields and all that, so it takes a big variety of equipment.”

AED sees the same strong economic activity going into next year.

“We think that it’s going to be strong through 2019, barring some kind of financial collapse that can’t be predicted,” Murray says. “All the

indicators show that optimism is up, consumer confidence is up. So, all signs are green.”

Murray says that while manufacturers are making more equipment it’s not helping the contractors who need to get roads paved and holes dug now and can’t wait nine months to a year for delivery. That brings a cascading effect.

“If a contractor is in the market for a new machine, but he’s aware of the lag times for buying that new machine, he’s wary of selling his current inventory,” Murray says. “He doesn’t want to sell an excavator and not be able to replace it with a new excavator. So, all that is driving the used machinery inventory down, which drives used prices up.”

Bracing for the tariffs and higher prices Due to the new tariffs on steel and aluminum, dealers who haven’t already seen hikes are bracing for higher prices on some machinery, depending where it’s built, says Murray.

“We’re getting some pretty significant price increases from our manufacturers because of the tariffs,” Hayden-Murray’s Kirk says.

While that’s particularly true on the crane side, he says, the impact has also been felt on the company’s non-crane side.

Some manufacturers raised prices even when the tariffs were just speculative, Kirk says.

“We haven’t seen much of a price increase to this point, but absolute-

With demand outstripping the supply of new machines and higher prices expected, dealerships such as Messick’s in Elizabethtown, Pennsylvania, expect buyers will find used equipment inventories more appealing. ly, everybody is telling us that they will be going up,” says Messick, whose family owns five construction and farm equipment stores in Pennsylvania operating under the name Messick’s.

“We are starting to see some upward adjustments in freight rates.

I’d expect, too, a little bit of a pullback in financing rates and discretionary money by the end of the

Neil Messick says his family’s five equipment stories in Pennsylvania are braced for higher prices on new equipment due to metal tariffs, making used equipment more attractive to their customers.

month. So, it’s likely we’re going to see some cost increases here.”

How will this effect sales of used equipment?

“If anything, it makes them become more appealing when the new equipment becomes more expensive, although that does usually take some time to work through,” Messick says.

“The units that are sitting here on the lot today don’t immediately become more expensive when these prices change. It will take some months before new inventory comes in that’s actually more expensive. A year from now, yeah, maybe used equipment will look more appealing than it might be today.”

“It tends to be that when construction isn’t doing well, agriculture is, and the inverse is happening right now,” says Messick, who is one of seven family members involved in the dealership. “Construction’s doing quite well and agEquipmentWorld.com | August 2018 25

used equipment report

riculture’s struggling. So, we always seem to find a customer.”

Kirk also noted the growth of the rental industry for heavy equipment.

“There’s a lot of work, a lot of activity, and rental is becoming a larger piece of our business,” Kirk says.

“People want to have HaydenMurphy be their banker and have us take all the risk, and that’s why we have such a large rental fleet across our lines. Rental is here to stay and it’s only going to grow.”

Does that bite into sales?

“We’ll selectively rent trade-ins if they are later models,” says Kirk.

“We’ll make the decision if we’re going to rent it or just turn it to cash and sell it; it depends on the situation.”

How are values holding up?

Kirk offers some insight. His dealership sells Wirtgen, Hamm, Kleeman, Vögele, GOMACO and Link-Belt excavators, among other brands.

“On the crushing side, values are holding strong on used equipment because of a shortage of certain models,” he says.

“On the reclaimers and mills, the same holds true. They’re going up year-over-year probably 5, 6 percent. We’ve got a large fleet, so a lot of our equipment we rent to the first user, and then that guy sends it back for whatever reason, but that doesn’t change the value of the machine. We price to market and 26 August 2018 | EquipmentWorld.com

| staff report

“If you have a good relatively late-model trade-in, either on the dirt side or the crane side, it’s going to bring more money because the guy’s got a project to build and he needs the equipment to do it,” says Len Kirk of Hayden-Murphy Equipment.

Above, some of his dealership’s used inventory. get good value for machines.”

“On the asphalt pavers, used values haven’t gone up much just because of the nature of the beast. When you put a first load of asphalt through a paver, you’ve got heat, dirt and vibration, and the residuals go down pretty quickly,” Kirk explains.

“With the compaction equipment – the rollers – they’re a bit of a commodity. They hold their value, but not as much as the other product groups – the mills and reclaimers and the crushers.”

“Used excavators don’t hold their value that well if they’ve got 8,000, 10,000 hours on them,” he adds.

“We know what they’re worth. But Michael J. Murray, regional manager for Associated Equipment Distributors, says lag times of nine months to a year for new equipment mean contractors in the market for new machines are wary of selling current inventory and not being able to replace it. That’s driving the used machinery inventory down, which drives used prices up, he says.

it’s not like you’re going to hit a homerun when you sell them.”

Reasons to buy used equipment include saving thousands of dollars on each purchase and leaving more money to invest in other areas, according to the Independent Equipment Dealers Association (IEDA).

Downtime is the biggest obstacle for contractors to work around, the organization says, and buying new equipment certainly does not reduce it.

Also, IEDA says, replacement parts are easier to obtain for used machines compared to new equipment, and used machinery retains its value better.

Those advantages coupled with a backlog of new equipment and a strong construction market are keeping dealers in some parts of the country busy selling construction equipment, used and new.

“Our customers are in good financial shape,” says Messick. “They’re all busy. There’s plenty of work out there. So, we’re continuing to see an up market, for the most part.

We’re selling more new, and used is keeping pace OK. … We’re carrying a larger amount of inventory, but we’re still selling through that inventory at a reasonable rate.”

RUN STRONG. Packed with the features that operators demand, Doosan® excavators bring strength to every job.

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DoosanEquipment.com/RunHEX 1.877.745.7814 Major League Baseball trademarks and copyrights are used with permission of Major League Baseball Properties, Inc. Visit MLB.com Doosan ® and the Doosan logo are registered trademarks of Doosan Corp. in the United States and various other countries around the world. ©2018 Doosan Infracore North America, LLC. All rights reserved. | 187

used equipment report

| continued

Used equipment inspection checklist: This is no time to gamble

I

by Tom Jackson

t doesn’t take long to evaluate a used car or truck but inspecting a piece of used equipment – whether it’s a beater or nearly new – requires several hours to a half a day. Anything you miss and have to repair or replace later will cost thousands if not tens of thousands of dollars.

So make a list. Be thorough. Take your time and carry a clipboard. After you’ve assessed the deficiencies, figure out each problem and what it would cost to fix, and adjust your bid accordingly.

While the general inspection points won’t apply to

1 VISUAL INSPECTIONS Engine compartment With the machine cold, pull the dipsticks and check lube oil, coolant and hydraulic fluid levels.

Open the radiator cap and look for traces of oil in the coolant (if present, it will be floating on top in small drops).

Inspect hoses for leaks and condition. Check metal fuel and oil lines to make sure they’re not bent or kinked and to ensure connection points are tight.

Pull the air filter and note its condition.

Inspect radiators for bent or damaged fins. Radiators should be free of debris, and connection points leak – or drip – free.

Note any paint discoloration or bubbling on the engine cowlings or covers. This may indicate an overheating problem.

Look for leaks around gaskets, hydraulic pump, hoses and fittings.

Frame, boom stick Look for hairline cracks in the 28 August 2018 | EquipmentWorld.com

every machine – for instance, undercarriage inspection points on a wheeled machine – this will give you a good overview of what’s critical. Many operational checks will require two people: one to operate the machine and the other to observe how it performs. We also outline what’s key to examine in each of the major machine types.

Also keep in mind that you can hire professionals to do this for you. Even if that seems expensive, it likely will save you money in the long run. Here’s what to look for:

metal. Ensure the welds are all solid and intact. Bushings should be intact and grease present. Inspect the hoses and fittings for leaks, kinks, wear or damage.

Keep in mind if the machine has been used to run a hammer, that has likely put a great deal of stress on the boom and stick and their linkages.

ROPS/FOPS Look for cracks, bent or damaged metal. Note any cracks or damage to windshield. Inspect door seals to make sure they’re crack- or damage-free and airtight.

Grab handles, access ladders and diamond plate/skid resistant surfaces should be intact and solidly mounted.

Hydraulic cylinders Look for leaks, excessive oil coming past the cylinder wiper or pitting/ scarring on the cylinder chrome. A film of dirt or dust may indicate the wiper needs replacing.

Cylinders should be free of nicks or dings. Oil on the chrome may indicate a reseal is needed.

Latches and locks These are small items but can be a nuisance and something that may need to be repaired. Test each one including cab, battery box, fuel fill,

engine hood or cowling, DEF access, cooling panel access.

Tires Check tread depth and inspect each tire for cuts and gashes.

Measure air pressure.

Inspect the sidewalls for cuts and bulges, which may indicate damage to the liner or steel belt and imminent failure.

Tires should be matched and worn evenly.

If the machine has been sitting for a while, look for dry rot, which will

Look for wear on buckets and teeth.

Reversible cutting edges are a plus.

Buckets and blades Look for excessive or uneven wear or damage on bucket teeth and cutting edges. Check supporting linkages and cylinders for wear or damage.

Check to see if cutting edges are reversible or both edges are worn down.

Check that the bucket and/or blade sits level on the ground.

Bearings and bushings should have grease on them. While operating, look for any signs of flex or play. show up as faded color, brittleness and/or small cracks in the tread or sidewalls.

Linkages Examine the machine for wear on all the pins and bushings throughout the linkage on the boom. Everything that has a grease zerk should have grease on it.

Tires are expensive. Make sure you know your replacement costs.

Steel undercarriage Look for wear on the sprockets, rollers and track pads. “Sharp teeth” on the sprocket tell you it’s near the end of its useful life.

Look at the rail pins and bushings. As the pins and bushings wear internally, each track segment lengthens and becomes looser. To take up the slack, the front idler is moved forward in a bracket on the rails between the idler and the rear drive sprocket. There will come a point, however, when no further

Undercarriage measurement is a complex procedure. Consider getting a kit from an equipment dealer. adjustments can be made. Some owners take a link out. While this makes the track look tighter, it also creates a tremendous amount of internal wear.

The best way to see if an undercarriage is worn out is to measure it using a track measuring group, which costs about $250 and is available from most dealers. With this you can measure the grouser height, rails, links and carrier roller and guide roller tread diameter and bushings.

Rubber tracks Inspect rubber tracks for worn track pads, cuts or gouges.

Look for wear or steel showing through on drive links.

Check track for proper tension, which indicates good maintenance.

2 OPERATIONAL INSPECTIONS Engine Turn the machine on and allow it to reach operating temperature while listening for any loud or unusual noises from the engine and/or cooling system, knocking or rough idle.

Some exhaust smoke at startup is normal, but exhaust should clear quickly. White smoke indicates incomplete fuel burn and possibly leaky or malfunctioning injectors or restricted air intake. Black or blue smoke indicates that oil is getting by the cylinder rings or low compression.

EquipmentWorld.com | August 2018 29

used equipment report Hydraulic cycles Using a stopwatch, time how long it takes to fully retract the arm cylinder and fully extend the bucket cylinder, then raise and lower the boom, timing each up and down motion. To test the arm cylinder, with the bucket cylinder fully extended, time how long it takes to move the arm from the full-out position to the full-in position. Then time how long it takes to return to the full arm-out position again.

Compare your times with manufacturer published times.

To test the track running speed, tie a ribbon on one of the track shoes on the side being tested, jack up the side where the track is being tested, then time how long it takes

| staff report 3 MACHINE SPECIFIC ITEMS Skid steers Look for evidence of over-the-tire tracks, which may cause wear spots on tires.

Driveline wear can be different with different skid steer brands.

Check the chains. Loose is not a problem, but if you hear clatter, it could mean it has been loose for a while and may have damaged the sprockets. That could require an expensive repair.

Under load, raise bucket to gauge how well it holds its position without drifting.

Access ladders should be secure and in good working order.

with a full load in the bucket, then turning the machine off. Wipe the oil off the boom cylinder rod and mark the measuring start point.

After five minutes, measure again to see how much it has drifted down.

Each time the operator cycles the machine, check for any movement in the bushings.

Look at each bushing independently, instructing the operator to take the bucket completely off the ground. Loose pins and bushings are a key sign of how the machine has been treated.

Run the machine and hydraulics up to operating temperature, shut off and look under the machine for any fluids dripping leaks on the ground or horizontal surfaces in the engine compartment.

to do three track rotations at maximum speed. Apply the test to both tracks, forward and reverse. Also tram the machine to make sure it travels in a straight line – if it veers one way or the other, you could have a weak pump.

Check for drifting – also called creeping – by raising the boom

Emissions controls With the engine running, make sure there are no warning lights on the dash indicating problems with the emissions controls, such as a DPF needing regeneration or an SCR system that is lacking in DEF fluid.

If the previous owner is available, inquire about DPF maintenance schedules.

30 August 2018 | EquipmentWorld.com

Wheel loaders The king pin/articulation joint carries all the load on a wheel loader and should be tight and flex free.

Make sure all the grease fittings are intact and the top and bottom pins are vertically aligned. When you’re operating the bucket, have your inspection partner observe the top and bottom pins of the center pivot and note if there’s excessive up and down movement, which could indicate wear.

Excavators If you can see any movement in a swing bearing, it’s probably too much. Beyond the visual inspection, use a magnetic dial indicator to take a measurement at four quarter-turn positions; an average of these four measurements will tell you what shape the machine’s swing bearing is in. Without this measurement, you’re guessing at the amount of wear in the swing bearing and this is a costly repair item.

Inspect final drives for leaks.

Dozers If the dozer has a power-angle-tilt (PAT) blade, make sure it has full movement and the control cylinders are in good shape.

Inspect final drives for leaks.

To download a sample inspection checklist, go to bit.ly/usedinspection

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used equipment report

| continued

Ritchie Bros.VP: Prices on used Tier 4 machines strong due to tight new supply

T

hough the Environmental Protection Agency’s Tier 4 emission regulations have had undeniably positive effects on machine fuel economy and the amount of pollution created by heavy equipment and trucks, the engine rules have also introduced more than a few headaches to contractors.

For starters, modern Tier 4 Final engines are more technologically 32 August 2018 | EquipmentWorld.com

by Wayne Grayson complex than their Tier 3 forebears and have required many contractors to depend more on their dealers for servicing and troubleshooting. Throw in the extra maintenance duties of topping up diesel exhaust fluid (DEF), changing out diesel particulate filters (DPF) and asking operators to work around regeneration times, and you’ve got the recipe for a lot of consternation on the part of

equipment owners.

Which brings us to one final and potentially upsetting Tier 4 complication: resale value.

The United States, Canada and Europe have adopted strict emission rules. Most of the rest of the world – much of which accounts for a large chunk of the U.S. construction equipment resale market -- is operating under varying degrees of emission regulations.

Because Tier 4 engines require a grade of low-sulfur diesel not available in those lesser-regulated countries, Tier 4 engines can’t be used there without removing emission control devices such as diesel particulate filters, a process that adds to the cost of the machine. Since used Tier 4 machines compete in these markets with equipment made in lower-regulated countries, these machines can have a price disadvantage in these markets.

Now that we’re several years into these regulations, what has been the effect on the resale value of Tier 4 machines? For the answer, we turned to Doug Olive, senior vice president of valuations and appraisals at Ritchie Bros.

Auctioneers.

The most obvious effect of Tier 4 regulations is fewer exports of newer machines between North America and lesser-regulated countries.

“Non-Tier 4 countries simply will not compete in newerequipment auctions,” Olive says.

When asked about the effect of de-tiering kits, which allow a Tier 4 machine to run on lower grade fuel, Olive says “we haven’t seen an impact either way. We haven’t seen those as a detriment to resale, but we haven’t seen it as a positive either.”

However, the news isn’t all bad.

Olive says that though exports are down, prices have remained strong on used Tier 4 machines due to solid demand for low-hour, well-maintained heavy equipment here in the United States.

“It’s holding up and it’s better in certain areas depending upon the equipment type,” he says. “Deliveries from the manufacturers are tight and it’s been that way for the past year, and it will continue that way. There are certain assets that are particularly difficult to get new from the OEMs.”

Among those machines in which demand is outpacing supply are excavators and crawler dozers along with rental-oriented machines such as telehandlers.

Olive says the state of rental fleets is a good indicator of the demand for new machines.

“When you look at the average of rental equipment fleets, it’s older today than it ever has been,” he says. “That’s the effect of OEMs not being able to deliver fast enough. Utilization is so high at these rental companies that they can’t replace older machines with new ones.”

In reply to a request for comment, Richard Longbottom, Cat’s marketing manager for global used equipment, acknowledged that the company, as well as other OEMs, has seen increased demand for new machines due to

high utilization of rental fleets result in a tightened supply of used machines and, therefore, higher prices.

So what kind of Tier 4 machines can contractors expect to resell quickly and at a strong price?

Olive says light construction assets, smaller excavators, backhoes, smaller crawler dozers and “all general construction equipment tied to infrastructure work,” are drawing strong demand and pricing, along with vocational trucks, dump trucks and water trucks.

Meanwhile, demand for used Tier 3 equipment in good condition is still high, Olive says. That’s due in part to many domestic contractors preferring the performance and serviceability of those engines, but also to buyers in lesser-regulated countries.

“Demand is still strong for Tier

“Demand is still strong for Tier 3 machines as long as they’re well-maintained, from a fleet with a good reputation, and the hours on the machine are in line with its model year.”

– Doug Olive, senior vice president of valuations and appraisals at Ritchie Bros. Auctioneers

a “great amount of construction activity.” However, Longbottom did not say whether Cat was having trouble meeting that demand with a sufficient amount of new machines. But he did comment that this higher demand has led to an “interest in lower-hour used equipment.”

Longbottom added that Cat has seen this high demand for lowhour used machines combine with

3 machines as long as they’re well-maintained, from a fleet with a good reputation, and the hours on the machine are in line with its model year,” he says. “If it’s been triple shifting, you might be disappointed with the price you get. But if it has been in a general work environment, has been single shifted, and it’s around 10 years old, there will be strong demand for that machine.”

EquipmentWorld.com | August 2018 33

used equipment report

| continued

Wheel loaders $85,000 $84,000 $83,000 $82,000 $81,000 $80,000 $79,000 $78,000 $77,000

12-month average: $75,057

$76,000 $75,000 $74,000 $73,000 $72,000 $71,000 $70,000 $69,000 $68,000

Jul.

Aug.

PRICE

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

2017

Mar.

Apr.

May

Jun.

2018

Excavators

by Marcia Gruver Doyle

H

$93,000 $92,000 $91,000 $90,000 $89,000 $88,000 $87,000 $86,000 $85,000 $84,000 $83,000

12-month average: $83,948

$82,000 $81,000 $80,000 $79,000 $78,000 $77,000 $76,000

Jul.

Aug.

PRICE

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

2017

Mar.

Apr.

May

Jun.

2018

Dozers $116,000 $115,000 $114,000 $113,000 $112,000 $111,000 $110,000 $109,000 $108,000 $107,000 $106,000 $105,000

as the increased demand for new equipment had an impact on used equipment prices sold on the auction block this past year?

To examine this, we went to Randall-Reilly’s TopBid auction price reporting service and looked at the June 2018 prices for the top 10 models (determined by unit sales) of eight popular machine types sold at auction. We then compared that number to both the 12-month average going back to July 2017 and the 24-month average starting in July 2016.

We found there was no overall trend throughout this data set; prices were up for some machines, down for others.

On the upswing are wheel loader auction prices, with the June average price for the top

12-month average: $107,161

$104,000 $103,000 $102,000 $101,000 $100,000 $99,000

Jul.

PRICE

Are auction prices increasing?

It depends on the equipment type.

Aug.

Sep.

Oct.

2017

34 August 2018 | EquipmentWorld.com

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

2018

May

Jun.

These charts show the average price of the top 10 models sold at auction (as determined by number of units sold) during the July 2017 through June 2018 time period. The 12-month average price is also shown.

10 models at 8 percent above the 12-month average and 6 percent above the 24-month average. Excavator and compact excavator auction prices are also above the 12-month average, although at a more modest 3 percent.

Price increases not universal This upward pricing does not extend to all equipment types. On the downside, the June average auction prices for the top 10 models of compact track loaders and skid steers showed 7 percent and 4 percent declines, respectively, compared to the 12-month average.

CTL and skid steer June averages were both down 7 percent compared to the 24-month average.

Essentially flat during June were artic and backhoe auction prices compared with the 12-month averages. Compared with the 24-month averages, however, June artic prices were down 4 percent and backhoe prices were down 2 percent. The June price for the top 10 dozer models were down just 1 percent over the 12-month average, but are 4 percent above the 24-month average.

When looking at the 12-month average prices, it seemed as if several machine type auction prices declined in June. We wondered: was this a summer slump? Looking at the 24-month period, the answer for most machine types was no. Excavators did have a price slump the summer of 2017, as did CTLs, but these dips were also just as likely to occur in fall and winter throughout the eight machine types we examined, so there was no overall summer slump trend.

“On the upswing in June, compared to 12-month averages, were auction prices for the top 10 models of wheel loaders, excavators, and compact excavators.�

Top Financed Used Machines YTD* What models are doing well in the used equipment market? We looked at financed used equipment sales through mid-July of this year to determine the top used models (by number of units sold) in eight types of machines, detailed in the charts below.

These numbers are reported by EDA, which is a division of Randall-Reilly, parent company of Equipment World. EDA tracks UCC-1 filings, which are used by financing companies to give notice they have a secured interest in a machine.

Depending on the type of machine, financed machines can represent 40 to 75 percent of the total number of machines of that type sold in the United States. While machines can also be bought by cash or letter of credit, which are not tracked by EDA, buyers of larger, higher priced machines tend to use financing.

Wheel loaders

Articulated dump trucks

1

Cat 924K

1

Volvo A40G

2

Deere 544K

2

Cat 740B

3

Deere 624K

3

Cat 725

4

Cat 930K

4

Cat 730C

5

Deere 644K

5

Cat 740

Excavators

Skid steers

1

Cat 320E L

1

Bobcat S185

2

Cat 336E L

2

Bobcat S650

3

Deere 210G LC

3

Bobcat S175

4

Cat 320E LRR

4

Cat 262D

5

Cat 336F L

5

Bobcat S250

Dozers

Compact track loaders

1

Cat D6N LGP

1

Bobcat T190

2

Cat D8T

2

Cat 259D

3

Cat D6T XL

3

Bobcat S185

4

Deere 850K

4

Bobcat T590

5

Cat D6K-2 LGP

5

Bobcat T650

Backhoes

Compact excavators

1

Cat 420F

1

Cat 308E-2 CR SB

2

Case 580 Super N

2

Deere 35D

3

Deere 310K

3

Kubota KX121-3

4

Case 580 Super M

4

Cat 304E-2 CR

5

Deere 310J

5

Kubota KX040-4

*Reporting through July 13, 2018. EDA information is continually updated.

EquipmentWorld.com | August 2018 35

DOZERS NO machine matters

| by Richard Ries

Without fanfare, dozers get better at what they’ve always done and take on new tasks

36 August 2018 | EquipmentWorld.com

OT NAPPING The Cat D6T now has Cat Grade with Slope Assist as standard equipment, providing basic blade positioning assistance without the need for added hardware or a GPS signal. Also standard are Cat Slope Indicate, which displays cross-slope and fore-aft orientation on the primary monitor, and Cat Stable Blade, which complements the operator’s blade-control input to achieve finish grades faster and with less effort.

EquipmentWorld.com | August 2018 37

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machine matters

| continued

The Case 2050M XLT is the largest dozer in the Case lineup. Rated at 214 horsepower, it has 14 percent more power than the 1850K and nearly 81,000 pounds of drawbar pull. The one shown here is equipped with Case SiteControl CoPilot, powered by Leica Geosystems. Available factory-installed or as a retrofit, CoPilot bridges the gap between indicate-only and automatic systems to provide a cost-effective entry into 2D and 3D machine control technology.

W

hile other equipment basks in the limelight, dozers keep toiling away in the background. There are no new applications, no profound upgrades to design technology, no threat of dozers stealing market share from other types of equipment. Despite that, newsworthy things are happening with dozers, and it would be a mistake to dismiss them as the same old machines with slightly altered model designations.

“We’re enjoying the lull that followed moving everything to Tier 4 Final,” says Jason Anetsberger, senior product manager, Intelligent Machine Control, Komatsu. He says that while no major changes have occurred since the move to Tier 4 Final, there have been improvements, refinements and the addition of features. “Basically, it’s the same machines doing the same applications, but more versatility is available for those who need or want it.”

The introduction of a widergauge version of the Komatsu D65 is one example of added versatility. The D65PX-18 and DX65PXi-18 are now available with 14-foot, 1-inch blades and 36-inch shoes. (The “i” designates Intelligent Machine Control.)

“These models received steering system improvements to provide better steering under load,” says Jonathan Tolomeo, product marketing manager, crawler dozers, Komatsu. “They’re also among EquipmentWorld.com | August 2018 39

machine matters

| continued

The Deere 950K is powered by a John Deere 9.0-liter engine rated at 280 horsepower. It is availale with an outside or a six-way PAT blade. Weighing in at nearly 80,000 pounds with a ripper, the 950K is the largest dozer with a six-way blade. Standard electrohydraulics and Deere’s open architecture design make it easy to install grade control systems from Topcon, Trimble or Leica.

those available with a six-way blade.” Tolomeo says Komatsu offers rippers on all their dozers.

Configured with a standard shoe and power-angle-tilt (PAT) blade, the D65PX-18 can be used for finish grade, replacing a motor grader for that task. The DX65PXi-18, with its standard Intelligent Machine Control, can work in automatic mode from rough cut to final grade, which Anetsberger says helps customers optimize utilization rates and thereby maximize their return on investment.

Nathan Horstman, product marketing manager, crawler dozers, Deere, says bringing a six-way 40 August 2018 | EquipmentWorld.com

blade and 285 horsepower to the 950K size class delivers versatility to the large dozer market.

With an 8.6-cubic-yard blade, the Deere 950K PAT is the largest dozer with a six-way blade, says Horstman. “Historically, the outside dozer configuration was used on a large dozer for mass excavation. Now there’s a large dozer than can do both mass ex, spreading and finish work.”

Electronics expanded and refined Max Winemiller, director of product management, road building and site prep division, Case Construction Equipment, explains the levels of machine control

available. 1D systems, such as the Case SiteControl CoPilot, provide simple grade and slope guidance through indicate-only functions.

Ideal for digging foundations and rough grading, 1D systems are a cost-effective entry point for machine control.

2D systems work in two dimensions at once: plane and slope.

Basic 2D systems are well-suited for residential and general construction and drainage work. With the aid of lasers and reference points, 2D grading systems can regulate elevation and cross-slope and work well for mid- to largesize residential and commercial developments.

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machine matters

| continued

Nearly a dozen models of the D65 occupy the middle ground of the Komatsu dozer lineup. The D65PXi-18 with PAT has 30-inch shoes and a blade capacity of 7.3 cubic yards. Power comes from a Komatsu SA6D114E-6 engine rated at 220 gross horsepower. An OSHA/MSHA ROPS and FOPS Level 2 cab is standard and has HVAC features to ensure reliable climate-control performance in high debris applications.

3D systems add a Z coordinate, which is elevation, to the X and Y coordinates. Relying on a base station or total station plus onboard sensors and GNSS receivers, these systems provide the greatest accuracy. And accuracy can be scaled to the job, down to sub-centimeter precision when required. While they likely have visual components, 3D systems 42 August 2018 | EquipmentWorld.com

are the heart of advanced automated machine control.

“It’s important to know that most 1D and 2D systems are easily scalable to 3D systems as a contractor’s needs grow over time,” says Winemiller. “Many of the sensors, lasers and other basic components of these systems are integrated into 3D systems as well, so upgrading to a more ad-

vanced system is often easier and less costly when the time comes.”

While Case has a partnership with Leica Geosystems for factory-installed and aftermarket systems, Case M Series dozers are compatible with blade control technologies from not only Leica but also Topcon and Trimble.

Case has placed precision construction specialists in a number

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Deere has expanded SmartGrade to all PAT configurations on the 650K, 700K, 750K, 850K and 950K. SmartGrade is an integrated Topcon 3D-MC2 system.

Because it’s factory-integrated, there are no external masts or cables.

Komatsu offers Intelligent Machine Control on 17 dozers, from the 105-horspower D39EXi-24 to the 354-horsepower DX155AXi-8 mining dozer. Included are eight variations of the D51 and D61 models, which are often found in applications where the ability to do finish grading is a big plus, says Anetsberger. He says 2018 marks the fifth anniversary of Komatsu Intelligent Machine Con-

| continued trol, and more than 1,500 Komatsu machines working in North America are equipped with it.

Winemiller says not all advances in electronics are on the scale of machine control; many are more subtle but still improve the operator’s experience and performance. Load management systems balance the load with drive torque to minimize engine stalling and track slip. Adjustable controls allow steering and shuttle sensitivity to be tailored to conditions and operator preference. Case 1150M, 1650M and 2050M dozers feature new electrohydraulic joysticks with improved feel and responsiveness.

Energy sector Although there are no new applications for dozers, there have been shifts in applications. The increased use of dozers for fin-

ish grading has already been mentioned. The strong energy market has also boosted demand for dozers to serve the oil and gas industry. Deere introduced two new models to meet this demand, the 1050PL 170 and 1050PL 220.

The 1050 has been a workhorse in the Deere lineup for some time, but these new additions are purpose-built for pipelaying. The “PL” indicates a machine set up to easily accept a side boom. The 170 and 220 relate to the maximum lift capacity of 170,000 and 220,000 pounds. All side boom functions are controlled with a single joystick to reduce operator fatigue.

Deere added a skylight to the purpose-built cabin, so operators have clear line of sight to the pipelayer boom. The track gauge is extended for greater stability.

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Horstman says the pipelayerready platform allows a one- to two-day installation time for a pipe-laying package versus two to three weeks if a standard dozer is rebuilt for the purpose.

Compact equipment a threat?

In recent Machine Matters, we’ve discussed the realignment in market share as skid steer and compact track loaders and, to a lesser extent, compact wheel loaders tussle for sales volume.

We’ve also covered the use of larger, more powerful compact equipment to do what had been tasks solely given to dozers. The largest compact wheel loaders, for example, are being used for dozing chores. So are the largest compact machines starting to cut into sales of the smaller dozers?

“We’re not seeing that,” says Anetsberger. “Sales of the D37

and D39 Series remain healthy.”

“CTLs are very versatile,” adds Horstman. “They’re good on and around finished surfaces and can get over a curb without damaging it. But for moving large volumes of material, a dozer remains the right choice.”

The one thing We asked our subject matter experts to cite one thing dozer owners and operators could do to improve their experience and enhance the machine’s value.

Horstman’s advice was to use Eco mode as the standard, rather than a fallback for special conditions.

“Deere’s Eco Mode will never sacrifice performance since the engine automatically increases the power level as the blade load increases. You get up to 20 percent fuel savings with no loss of production,” says Horst-

man. In fact, he says, production may actually increase because of reduced track slippage.

Anetsberger said owners should look beyond the machine. “Yes, the dozer is more efficient. However, it is important to analyze the enhanced efficiency that the machine can bring to the entire worksite.” Part of that process is effective use of the data broadcast from the machine via telematics. “Measure and benchmark productivity. Replicate what works best. Use the data to improve training.”

Tolomeo says both operators and service technicians can benefit from a better understanding of undercarriages to maximize undercarriage life and reduce costs. “Proper maintenance and adjustment are key to extracting maximum value from the undercarriage.”

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quick data

Excavators

MGruver@randallreilly.com Year-over-year change*

A snapshot of new and used sales trends from Randall-Reilly’s Equipment Data Associates and TopBid auction price service.

NEW: UP 7%

Auctions

USED: DOWN 3%

Excavator auction prices, June 2017-May 2018 $120,000

High: $92,453, April 2018

$115,500 $110,000 $105,000 $100,000

1-year average: $

Low: $77,927, July 2017

*Comparison of number of excavators financed June 1, 2017 to May 31, 2018, and June 1, 2016 to May 30, 2017.

Source: EDA, edadata.com

83,503

$95,000

Top three states for excavator buyers*

$90,000 $85,000

New

$80,000

State

# of buyers

$70,000

Texas

597

$65,000

Florida

413

California

347

$75,000

$60,000 $55,000 $50,000 $45,000

Current: $86,452

In June, the average price for the top 10 models of excavators sold at auction was 10 percent above the average price for these machines sold in June 2017, and 3 percent above the one-year average of $83,503.

May 2018

Used

$40,000 $35,000

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

PRICE

2017 2018 Trend prices for the top 10 models of excavators sold at auction, not seasonally adjusted.

545,000 OTHER $495,000 TOP BID: $

State

# of buyers

Texas

877

Georgia

500

New York

379

Top financed new excavator*

Top auction price paid for a 2015 Deere 870G LC with 2,087 hours at a Ritchie Bros. sale on Mar. 13, 2018, in Fort Worth, Texas.

2014 Cat 390 FL, 6,691 hours, Ritchie Bros., Feb. 22, 2018, in Orlando.

,13 $ 108

3

HIGH

0 0 0 , $ 20

AVERAGE

July 1, 2017 - June 30, 2018; prices for excavators 5 years old and newer, U.S. sales only. Only includes bids $5,000 and above.

Source: TopBid, topbid.com

LOW

Final bids unit count: 879

New

Excavator new, used financed sales trends, 2008-2017* 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000

,00 $545

0 Used

Used low: 2009, 8,779 units

Cat 336F L, 310 units

Other top selling new machine:

Komatsu PC360LC-11, 209 units

Top financed used machine* New low: 2010, 1,904 units

UNITS 2008 2009 2010 2011 2012 2013 2014 *Financed equipment, 2008 - 2017, number of units sold by sale or lease. Source: EDA, edadata.com

Cat 320E L, 112 units

New high: 2017, 10,114 units Used high: 2017, 12,549 units 2015

2016

2017

*In terms of number of new and used financed units sold June 1, 2017 to May 31, 2018. Source: EDA, edadata.com (Note: EDA reports are continually updated.)

EquipmentWorld.com | August 2018 47

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maintenance

SHIPPING

CONTAINERS

| by Preston Ingalls Whether you use them for offices or just storage, shipping containers offer a smart, low-cost and portable solution.

Affordable, portable and customizable, these steel boxes make great storage units, and jobsite offices.

S

hipping containers (dry storage containers) are being converted into everything from residential and commercial spaces to storage and industrial facilities. As single or combined units, these containers are often retrofitted to become data centers, pop-

PART 1 up stores/bars, housing, portable schools, restaurants, emergency centers, workshops, offices, and especially, storage units.

The construction industry is generally credited with the initial mass use of shipping containers for

storage. And while they offer an attractive option, there are several unique challenges when using them for construction tools and material storage.

In part one, we’ll look at how to evaluate, buy and take delivery of a shipping container. Next month, we’ll look at how to control heat EquipmentWorld.com | August 2018 49

maintenance

| continued

and humidity and what you can and shouldn’t store in these units.

Surplus brings down price There are more than 34 million shipping containers in use around the world. Some 12 million arrive in the United States every year, but more arrive than leave due to our trade imbalances, and the surplus keeps prices low. Each box is capable of holding 55,000 pounds of goods and has a service life of about 10 to 12 years with a life expectancy of 20 to 25 years if reasonably maintained.

Shipping containers are designed and built to ISO Standards maintained by the International Maritime Organization’s (IMO) “Convention for Safe Containers” standards. For practical purposes, this means they can take a beating and survive harsh environments, such as rough VMAC EquipWorld_Aug18_H4060.pdf 1 7/10/2018 weather on oceans, and vigor-

Untitled-33 1

50 August 2018 | EquipmentWorld.com

ous reuse. They are durable, safe (ground-level access), and hard to break into – all reasons more contractors are using them for storage.

Each container has a unique 11-digit alphanumeric serial number. You can use this code to find out where the container has been and what it has carried. Dry goods are usually not a problem, but some chemicals might be. The serial number can also tell you if the unit was a one-time-use container, meaning it was shipped once and has not made multiple trips across the ocean. These units are typically in much better shape. A vendor can help you decode the serial number, or you can find the translation online here: https://www.csiu.co/ container-prefixes.

They are also sized by the Twenty-foot Equivalent Unit (TEU), so a 20-foot container is 9:05:41 AM 1 TEU, and a 40-foot container

is 2 TEU. And they are referred to as Connex (or Conex), which was a military acronym denoting con(tainer for) ex(port).

Inspecting a used container You can buy shipping/storage containers online, but a visual inspection is recommended.

First, make sure the container has a steel lock enclosure. A carbide shank lock is best but avoid long shank ones that extend beyond enclosure. Check door seals to make sure they are in good shape and provide a full seal. Make sure the locking handles function, because they are exposed to saltwater and can rust. Check the hinges’ integrity, as they are also subject to rust from saltwater. Check the door swing to make sure it is catching.

Go inside and close the door. If you can see light emitting from any wall or ceiling or corner post, water

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Delivery of your used shipping container demands that you have your foundation ready and have space for the truck to maneuver.

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EquipmentWorld.com | August 2018 51

maintenance

| continued

can get in as well. Check interior and exterior conditions of corrugated panels, because serious dents can lead to rust and leakage. Make sure the door cam is catching and locking properly without much pressure or assistance. Check edge molding inside to ensure there is no leakage or cracks that will allow seepage. You can check for warping (shifting loads can warp containers) by dropping a vertical string and securing the top and bottom ends to check parallelism of vertical supports.

Check flooring for warping, holes and stains. Large stains probably indicate spills, which could pose a risk based on what leaked or dropped. Newer units have poly-coated flooring. Also, check under the flooring for evidence of corrosion.

There are several grades: Premium, A, B and Refurbished. Marine surveyors certify these as Wind and Water Tight (WWT). The Premium rating indicates a unit less than eight years old in excellent shape. Grade A and Grade B are eight years old or older. An A is cargo-worthy, while a B has significant rust or damage. While not deemed cargo-worthy for the shipping industry, they are usually suitable for storage. Be careful with ones graded Refurbished, as the quality of the refurbishment may be superficial.

If the container will be used for more than storage, consider high cube containers. These are more appropriate if you will be insulating or installing overhead fixtures like lights, as they are a foot taller than normal shipping containers. Based on length, standard containers are 1,700 cubic feet, while a high cube is 2,500 cubic feet. But high cubes are a little more challenging to ship. Look for new ones, as they have a 10-year warranty and have never been used to ship potentially toxic 52 August 2018 | EquipmentWorld.com

chemicals or sprayed to handle the saltwater from multiple shipments. New high cube containers are hard to locate and are normally about three times more expensive.

Bear in mind that the wooden floors used in the majority of shipping containers are treated with chemicals such as pesticides. Some shipping containers are coated in paint that contains harmful chemicals such as phosphorous and chromate. You can contact the original manufacturer of the container and inquire whether the floors have been treated with hazardous chemicals.

Do so by locating your shipping container’s unique identification number to track who manufactured the container.

Prices Depending on size and condition, expect to pay between $1,400 and $4,000 for a used shipping container. If you search Google for “shipping containers,” you’ll find dozens of vendors. Williams Scotsman, one of the leading vendors, has 90 locations across the country. You’ll also find vendors online, including on eBay and Craigslist.

Some vendors also sell shipping containers that have been remodeled, with insulation, wiring, lights, doors, windows, air conditioning and finished wall, floor and ceiling surfaces – a complete jobsite office ready to go. You can also rent these refurbished containers to serve as temporary job trailers and storage.

Because of their compact, modular nature, shipping containers are easy and inexpensive to truck to a site. If you have a 40-foot trailer, you could ship two at once and save on

delivery costs. The 20-foot containers weigh about 4,500 pounds, and the 40-foot units are double that.

Delivery There are several ways to get the container off the delivery truck. Tiltbed or roll-off trailers are common, and some deliveries will use a crane to hoist the unit off the truck and onto the foundation. When planning for the delivery, make sure the truck approaches the site with the trailer’s doors pointed in the right direction. And make sure the delivery truck has about 100 feet in front of it to drop off the container and pull away.

Before delivery you need to have your footings or foundation prepared. It’s recommended that you elevate the bottom of your shipping container off the ground for air circulation and to prevent moisture from creating rust. Wood cribbing, concrete piers or blocks on each corner will do the trick but make sure the foundation can handle the live load. In areas where high winds are frequent, you may want to bolt your container to the foundation.

Note that it is important that your foundation or footing is dead level. If it is out of level, you may not be able to open the doors.

Shipping containers are exceptionally strong, but like anything built out of steel, they will flex.

Also, be sure you get a building permit and adhere to local building codes when putting a shipping container at your jobsite or on your property.

Preston Ingalls consults with construction industry fleets on equipment uptime and cost improvements.

He can be reached at www.tbr-strategies.com.

technology

R

| by Tom Jackson |

TJackson@randallreilly.com

Cat Detect sees even what cameras don’t

earview cameras are a great safety addition to construction equipment, but there will always be situations when a worker walks into or kneels down in a blind spot. That’s where Cat Detect for personnel comes in.

The system is based on a safety vest or hardhat outfitted with a passive radio frequency tag and machines with a UHF antenna. When the antenna is energized, it will sense the presence of these tags and sound a warning anytime they come within a certain radius of the machine. The warnings include a visual and audible in-cab alert for the operator and an external speaker to notify the worker on the ground.

The energized UHF zone is customizable to the needs of different sites and applications. The tags use passive RFID technology, which means they never need charging and tagged items are washable. You can also set up the system to work with your machines’ telematics to report actionable information and near misses.

Cat detect RFID tag with hardhat strap

Guardian Angel Elite series visible up to two miles Guardian Angel Elite hardhat mount.

G

uardian Angel’s new Elite Series personal safety light device features up to two miles of visibility. Multiple mounting accessories enable you to attach it to any hardhat or piece of clothing or structures on the jobsite.

The Elite Series’ lithium-ion battery is USB rechargeable. Front, rear and top light controls give you a 360-degree light pattern and three light intensity settings.

The 3-ounce device is housed in an indestructible polycarbonate and waterproof exterior shell. It exceeds the requirements for Class 3 reflective apparel regulations, which dictate visibility at 1,280 feet. The company claims two miles of visibility. Priced at about $100.

EquipmentWorld.com | August 2018 53

road technology

| by Joy Powell |

JoyPowell@randallreilly.com

Volumetric concrete mixers gain popularity as they help companies cut downtime, boost profits

O

ver the past decade, manufacturers of mobile volumetric concrete mixers have seen a small but steadily growing number of customers either switching from drum mixers or adding volumetic mixers to their fleets.

Both types of mixers have pros and cons. By using a mobile volumetric mixer, however, you can not only keep your concrete fresh, you can save about 40 percent off your concrete costs, according to manufacturer Cemen Tech of Indianola, Iowa.

That’s in large part because these mixers can help prevent over-ordering concrete that would otherwise be wasted. Their separate storage bins allow extra materials to be saved and mixed later for use. Trips to the batch plant, time at the jobsite, hot loads and other expenses can be saved, say proponents.

The volumetric mixers can also make it easier to manage short loads and longer travel times, as well as help you to better control quality, manufacturers say.

Precision concrete The basic concept is that volumetric proportioning is based on volume, not weight. Precision is key.

“Automated machines of today are extremely accurate in producing concrete that meets or exceeds all applicable standards,” says Connor Deering, president and CEO of Cemen Tech.

Also called mobile concrete mixers, volumetric concrete equipment works as a moving batch plant of sorts mounted on a chassis or trailer. It carries unmixed sand, ce54 August 2018 | EquipmentWorld.com

ment, coarse aggregates, water, and any other admixtures or chemicals needed, to a jobsite where it is mixed as needed for fresh, maximum strength concrete to meet specifications.

Mix designs can be changed onsite without going back to the batch plant, too.

An increasing number of cities, counties, states and federal agencies are accepting volumetric mixing, according to the national Volumetric Mixer Manufacturers Bureau (VMMB) based in Silver Spring, Maryland.

Five manufacturers founded the VMMB in November 1999 with the assistance of the National Ready Mixed Concrete Association (NRMCA). A primary goal was to develop a standard for which volumetric concrete mixing equipment could be rated.

VMMB-certified volumetric mixers must meet all the requirements for certification detailed in ASTM C685, AASHTO 241M and the VMMB standards.

The VMMB also promotes greater use of this equipment through education and awareness, as well as providing professional tools for both manufacturers and operators of mobile mixers.

CTS Cement Manufacturing, based in Southern California, provides quick-setting bulk cement under the trade name Rapid Set to concrete producers and contractors who use volumetric trucks.

“For our fast-setting cement, which is capable of structural strength in one hour, volumetric

trucks are the best production method because it eliminates the need to factor in unexpected haul times,” says John Kim, senior research engineer for CTS. “The popularity of volumetrically mixed trucks is definitely growing,” Kim adds. “Especially within the past 10 years, acceptance with the DOTs and overall trust within the industry has significantly grown.”

Volumetric mixers in the fleet When it comes to roadbuilding, it’s not always just one type or the other, drum versus mobile volumetric mixers. Some companies have found it helps their bottom line to use both.

Paul Harris is sales manager for ProAll of Alberta, Canada, which manufacturers Reimer volumetric

PHOTO: CTS Cement Manufacturing Corporation.

A roadbuilding crew uses a roller screed to smooth and finish the concrete from a volumetric concrete mixer.

mixers. He notes that some customers who might buy, say six drum (batch) mixers, are now making their seventh purchase a volumetric mixer.

“That last truck out of the seven to go is volumetric. It can be used to make the last amount needed and shut it down, with no waste,” Harris says.

“Batch plants used to look at volumetric mixers as competition.

As the technology in the volumetric mixers increase, they’re becoming accepted by the drum or the batch market.”

Adds Harris: “It’s increased our sales with bigger sales and batch customers looking to offset costs.”

Most volumetric mixers are operated by contractors and concrete producers, with many trucks also

The Volumetric Mixer lets you pour concrete how and when you want with little or no waste, from half a yard to 10 yards, says Bay-Lynx Manufacturing in Ontario.

EquipmentWorld.com | August 2018 55

road technology

| continued

going to government agencies and buyers, according to the VMMB. A good portion of these trucks are used to produce specialty concrete, such as gunite and shotcrete, rapidsetting concrete, “flowable” fill and special grout mixes.

The applications for these volumetric mixers include roads, highways and other infrastructure, precast, remote jobsites, military, utility, mining, airports, bridge decks, foundations, pervious and soil stabilization.

When it’s critical to get roads, bridges and airport runways reopened as soon as possible, volumetric mixers are the only type that works with fast or rapid-setting cements, experts say.

With these machines, you can change mix designs “on the fly” without returning to a batch plant or dumping the unused material. That means an operator could pour 5,000 pounds per square inch of concrete, select a different mix design through the control panel and a few seconds later, pour a low-strength, flowable fill, the manufacturers say.

With volumetric mixers, it’s all about control While there’s new technology that can help improve efficiencies and cut human error, the volumetric mixer is a mainstay that’s been around 50 years. In the early 1960s, Harold Zimmerman of Pennsylvania invented a machine that could carry the ingredients needed to make concrete onsite, rather than delivering concrete that had been made elsewhere.

He applied for a patent in 1964 and teamed with Irl Daffin. The ConcreteMobile was a hit, topping more than 2,000 machines produced by 1979.

With about 10 billion tons of concrete produced every year in the United States, no matter whether you’re using a volumetric or batch concrete mixer, your challenges remain the same: you need to tightly control the quantity, quality and timing of your ingredients.

By far, the most important factor of 56 August 2018 | EquipmentWorld.com

Manufacturers say you can cut about 40 percent off your concrete costs by using a volumetric mixer, saving on trips to the batch plant, time at the jobsite, hot loads and other expenses. concrete quality remains the water-tocement ratio, which binds everything together. This ratio largely determines concrete’s strength, durability, workability and finishing quality.

Many specifiers consider this ratio the foundation for building and approving mix designs, experts say.

The more water added, the more reduction in the strength of the resulting concrete. Too little water makes the concrete more difficult to place and finish.

A volumetric mixer allows the operator to control the precise amount of water added to any mixture. And once operators have mastered that, they are looking at ways to cut costly errors and improve their bottom line.

Take, for example, new adjustable metering gates that enable the volumetric Zim-Mixers by Zimmerman Industries of Ephrata, Pennsylvania, to

deliver the exact amount when and where it is needed. An operator uses adjustable metering, which mixes the materials into a homogenized stream of concrete delivered from the auger.

“We’re having a very good year with strong sales internationally and domestically,” says Joan Stoner, vice president of Zimmerman Industries.

Using machine technology to reduce human error With traditional volumetric mixers built in 2014 or earlier, the onus was on the operator to make sure every decision was correct, says Harris.

Now, manufacturers are providing easy-to-learn operations and automation that reduce the chance for human error. That higher level of technology is switching some of the onus back to the machine, Harris says. The concrete industry, as with

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It’s the smart choice to help you Run Your World.

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road technology

| continued

Some key features of the Commander, a Reimer volumetric mixer from ProAll, include automated mix functions, digital controls for mix adjustments and state-of-the-art hydraulics that help deliver total consistency to your mix. the rest of the labor market, faces challenges finding enough truck drivers and skilled workers. Such technology would help train new workers, Harris says.

He likes to joke that “if you can drive the truck and you’ve got a smartphone, in a day you can make high quality concrete from our Commander truck.”

The Commander debuted in 2016 at World of Concrete in Las Vegas.

Billed as a “new-look mixer and cutting-edge control system,” it offered

58 August 2018 | EquipmentWorld.com

many features never seen before on a mobile mixer, ProAll said at the time.

One big gain: the process can be run by one operator.

“For years, we heard from contractors and producers that they wanted a more responsive, more precise mixer that reduces the chance of operator error,” according to Steven Fillmore, ProAll vice president.

“We took that feedback and developed the Commander with them in mind, so it’s great to see their reactions when we demonstrate all the

new capabilities of a Reimer Mixer.

We really think the Commander is ushering in a new era for concrete mixers.”

Some key features of the Commander include automated mix functions, digital controls for mix adjustments and state-of-the-art hydraulics that help deliver total consistency to your mix.

At Cemen Tech, the C60 Volumetric Mixer features Accu-Pour capabilities and new automated gates as standard.

The automated gates make the C60 fully computerized and continue to reduce operator error by synchronizing the mix design with the appropriate gate setting for material flow, according to Deering. An operator doesn’t need to worry about manually changing the amount of material flow through the gates.

“This is the Accu-Pour Controller for the C60, the most accurate and only fully automated mixer on the market today,” Deering explained as he showed features of the C60 at

World of Concrete 2018 in Las Vegas.

Selecting a 3,000-psi mix design on the C60’s display, Deering demonstrated how the equipment works: “When I hit start, you’ll be able to see the gates start to move. These gates are setting themselves exactly according to the mix design that we’ve plugged into the computer. This is done so that we remove that element of human error. The truck now fully sets itself.

It sets the gates, the admixtures, the water, all those things to ensure that it gets the perfect concrete out the mix auger every single time.”

Using pre-programmed mix designs eliminates the risk of using the wrong mix because the information is stored electronically and available at the touch of a button, Deering says. “The C60’s automation, one-button operation and accuracy make it easy for virtually anyone to pour concrete,” Deering says. “You do not have to be a concrete expert.”

Additional safety features include an optional wireless remote for one-

button mixer turnoff, work platform, LED lights and Auto-Stow to securely store the chute in transit.

At Bay-Lynx Manufacturing in Ontario, Canada, the cement metering on the company’s volumetric mixers is mechanically linked to the belt that delivers the sand and stone.

That means the costliest ingredient of the mix will always be in a precise, accurate ratio, a company spokeswoman says.

What’s the future hold?

The VMMB works closely with an affiliated organization, the National Ready Mixed Concrete Association (NRMCA).

Issues facing the concrete industry as a whole include a shortage of truck drivers, says Kevin Walgenbach, vice president of compliance and regulatory affairs for NRMCA. While automation can help reduce the tasks of an

operator and cut chances for human error, autonomous (self-driving) trucks, are an entirely different matter. And it’s not when the autonomous trucks are going to show up on construction sites; they’re already here, Walgenbach says.

“The potential for how autonomous trucks may impact the industry has probably yet to be seen,” he says.

North American manufacturers report this has been a good year for sales of volumetric concrete mixers. Shown here is the Cemen Tech C60.

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Solid Earth Civil Constructors, our 2018 Contractor of the Year, has a great story. So do you.

One way to make sure it gets told is to become one of our 2019 Contractor of the Year finalists. equipmentworld.com | May 2018

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Our Contractor of the Year program honors the forward thinkers, high achievers and just plain good people in construction. These are the construction companies that get the job done right, on time and within budget.

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| by Wayne Grayson |

WayneGrayson@randallreilly.com

Contractor emerges from tragedy, grows successful business Though he has dealt with a fair share of tragedy, Bachtel considers himself “the luckiest man.”

Matt Bachtel, Bachtel Excavating City, State: Massillon, Ohio Year Started: 2000 Number of 14 employees: Annual revenue: $18 million (current)

E

very facet of Matt Bachtel’s life has been touched by tragedy.

As a father, he mourned a miscarriage. In 2006, his best friend passed away. Two years later, he endured the death of his wife, Lisa. Left reeling in the wake of her passing, his business, Bachtel Excavating, hung in the balance as the 2008 recession took hold.

Nearly 10 years later, seated in his office chair, Bachtel looks back on surviving his darkest hours and on his new life, and he flashes a smile.

“I am the luckiest man alive,” he says.

Turning a negative into a positive While the other kids in Massillon,

Markets served: Residential, commercial and industrial

Ohio, played, Bachtel spent most of his childhood days thinking about work.

He started his own lawn care business and spent the rest of his time chasing down every piece of heavy equipment that entered his neighborhood. He would watch from afar, dreaming of a day when it would be his turn to operate that machinery.

His father was a construction manager for Aqua Ohio, a private water utility. Anytime an emergency main broke in the middle of the night, Bachtel would get a chance to go, as he put it, “hang with the guys.”

Once he was old enough, he spent Christmases and spring breaks working for an excavator contractor who was a friend of his father’s.

“I think he and my dad had in their minds that they were going to break me,” he says laughing. Bachtel split time working for three different excavating companies during his teenage years and put his earnings toward a college education at Ohio State University.

He graduated with a business marketing degree, but his fascination with equipment led him to a successful stint selling heavy machinery with Tiger Machinery out of Columbus. “I would go out on deliveries, and I would see Kokosing Construction…and it exposed me to the best of the best,” Bachtel says.

He realized he didn’t want to just sell equipment. He wanted to make his living using it.

EquipmentWorld.com | August 2018 61

contractor of the year finalist |

continued

With the help of his wife, Stacey, a CPA who now runs the company’s books, Bachtel has grown Bachtel Excavating from $1 million in revenue in 2009 to $4.5 million in 2017.

Matt Bachtel stands in front of a barn that served as the company’s first offices.

It wasn’t an easy decision, however. With Bachtel’s career at Tiger quickly moving along, he and Lisa had begun putting down roots in Columbus with a newly renovated home. But when the couple’s first 62 August 2018 | EquipmentWorld.com

pregnancy resulted in miscarriage, they reevaluated their future in Columbus. “Out of this negative came this life-transforming change,” Bachtel says.

They sold their home in 2000 and moved back to their hometown of Massillon where Bachtel would establish his excavation business. “It was Lisa’s belief in me that was re-

ally the driving force,” Bachtel says.

Bachtel got his first jobs by sending a flyer for residential excavating, water and gas services to the Massillon building industry association’s mailing list, which he got from his mother, a Realtor. He also called up every plumber in town.

Within a week, he had clients.

Over the next seven years, Bachtel Excavating grew slowly as he focused on keeping the company small and “just being ourselves.”

Bachtel says a meeting with a business coach in 2007 had a big impact on him. “It was a huge investment for us at $12,000,” Bachtel recalls. “But he pushed me in a lot of ways. We would meet a few times a month and I would have homework.” He says the best advice he received concerned how to lighten the load of a family and a growing business.

“He said, ‘Hey you’ve got three

Bachtel talks over a job with two members of his crew.

kids, you’re working six days a week, why are you still cutting your own grass? Your wife is doing your books and taking care of the kids. Why don’t you hire a cleaning service once a week to take care of the housekeeping?’” Bachtel recalls.

“It helped me not only personally, but also in business to become comfortable with subbing jobs out.”

In 2006, Bachtel suffered the loss of childhood friend Ryan Hannan.

A year later, his company surpassed $1 million in revenue. Unfortunately, the milestone year was quickly followed by another devastating loss.

‘Everything got turned upside down’ It was a Monday and slightly warmer than average for February in Ohio. After arriving home from work, Bachtel says, Lisa began acting strangely and was talking about a childhood friend. The behavior prompted a visit to the doctor who

initially told Bachtel it was likely that Lisa was just severely tired. “We had three kids and we were building a house and in the process of moving,” Bachtel says.

Later that night, the doctor returned to Bachtel and told him he had found a tumor on Lisa’s brain.

“That was a Monday and she passed away on Sunday,” Bachtel says. “In just six days everything got turned upside down.”

Lisa’s death left Bachtel unable to focus on the business and forced him to step away for a few months while he tended to his wounds and those of his family.

“I was in a fog for a while,” he says. He received clarity in the form of the recession in the fall of that year. “It woke me up again. It made me realize I’ve got not only my own family to feed but all of these other families of the guys who work for me as well.”

For the rest of 2008 and through 2009, Bachtel watched as contractors in his region “dropped like flies.”

His revenues dropped by 20 percent in 2008. “It was bad. All of a sudden, you go from doing 50 condos with someone to only doing 10. You go from getting paid in 30 days, to 90, or not getting paid at all.”

Like most contractors who sur-

vived the recession, Bachtel Excavating got lean and performed any job it could get. “There was some skill to it, but there was a fair amount of luck as well,” he recalls.

In 2009, as he continued to work at keeping his family and business together, he started dating the woman who would help him do both.

“It was no accident that when Stacey came into my life, Bachtel Excavating started growing again,” Bachtel says of the woman who is now both his wife and business partner. “She is a certified public accountant and she pushed me out of my comfort zone in the business.

We were doing a lot of things based on emotion. Now we’re a lot more balanced.”

After the hardships of 2008, 2009 saw a return to $1 million in annual revenue for the company. Since then, it has grown revenue to $4.5 million.

But the business wasn’t the only part of Bachtel’s life that grew with Stacey. The couple are now raising six kids, three of whom she had with her first husband and Bachtel’s best friend, Ryan Hannan, who had passed away.

“I am the luckiest man,” Bachtel says. “I have had two women in my life believe in me 110 percent.”

EquipmentWorld.com | August 2018 63

safety watch

| by Tom Jackson |

TJackson@randallreilly.com

Heat kills

How this death could have been prevented: • Train workers to recognize and respond to heat-related problems.

Symptoms of heat exhaustion include headache, dizziness, fainting, weakness, wet skin, irritability, confusion, thirst, nausea or vomiting. Heat stroke, however, is more serious. Symptoms of heat stroke include confusion, unable to think clearly, passed out/unconscious, seizures, stop sweating/dry skin.

• Train workers and supervisors to understand and monitor the Date of safety talk: Attending: 64 August 2018 | EquipmentWorld.com

Illustration by Don Lomax

I

n August 2010, a new laborer went to work on a jobsite in Moss Point, Mississippi, the southernmost part of the state. His job was to help install wooden formwork for concrete curb and gutter placements.

By lunchtime the temperature had climbed to 97 degrees Fahrenheit, with a humidity reading of 74 percent. With no wind, the heat stress index climbed to 130 degrees.

Shortly after lunch, the new employee collapsed unconscious near a portable toilet and was found later by coworkers. Emergency medical personnel were called, but the employee was pronounced dead at 2:44 p.m. Cause of death was listed as hyperthermia.

According to OSHA reports, the employer did not protect employees from the recognized hazards of heat stress, heat exhaustion and heat stroke. OSHA also noted that the new employee was not properly acclimated to the extreme heat.

heat index.

• Provide cool water, shade or airconditioned spaces for frequent rest breaks during the day. Workers need at least one pint of water per hour and to drink water every 15 minutes. Avoid caffeinated beverages.

• Implement a buddy system for workers to check on each other.

• Allow more frequent breaks for new workers or those who have been away from the jobsite for some time. Consider putting them on half-days outside (mornings preferably) until they have acclimatized.

• Wear light colored, loose fitting clothes and a wide brim hat or ventilated hard hat.

• Note that older workers, those who are overweight or have diabetes or take some medications, may be more susceptible to heatrelated illnesses than others. Make sure you know the fitness level of each worker and act accordingly.

What to do when you see heat related illness: • Call a supervisor for help, or 911

Leader:

if a supervisor is not available.

• Stay with the worker until help arrives.

• Move the worker to a shaded or cooler area.

• Remove outer clothing, fan and mist the worker with water, apply ice bags or ice towels.

• Provide cool drinking water if victim is able to drink.

• If victim is not alert or has dry skin, this may be heat stroke, which can be deadly.

Make sure 911 and emergency responders are aware and use every available means to lower the worker’s body temperature immediately.

An app for that OSHA has a free application for mobile devices that enables workers and supervisors to monitor and assess risks for workers based on the heat index. It includes reminders about protective measures that should be taken at that risk level. It is available for Androidbased platforms and the iPhone in English and Spanish by visiting: http://bit.ly/OSHAheatindex

_____________________

alerta de seguridad

| por Tom Jackson |

TJackson@randallreilly.com

n agosto del 2010, un nuevo trabajador ingresó a un sitio de operaciones en Moss Point, Mississippi, en el extremo sur del estado. Su trabajo consistía en ayudar a instalar molduras de madera para ubicaciones de veredas y alcantarillado. Para la hora de almuerzo las temperaturas habían alcanzado los 97 grados Fahrenheit, con una lectura de humedad del 74 por ciento. Sin viento alguno, el índice de estrés de calor trepó hasta los 130 grados.

Poco después del almuerzo, el nuevo trabajador colapsó y quedó inconsciente cerca de un baño portátil y fue encontrado después por compañeros de trabajo. Se llamó al personal médico al lugar, pero el trabajador fue pronunciado muerto a las 2:44 pm. La causa de muerte fue registrada como hipertermia.

Según los reportes de la OSHA el empleador no brindó protección a los trabajadores contra los riesgos reconocidos del estrés de calor, agotamiento por calor, y el golpe de calor. La OSHA destacó también que el nuevo empleado no estaba apropiadamente aclimatado a la condición de extremo calor.

Cómo pudo haberse prevenido esta muerte: • Capacite a los trabajadores a reconocer y responder a los problemas relacionados con el calor. Los síntomas del agotamiento por calor incluyen: dolor de cabeza, mareos, desvanecimiento, debilidad, piel húmeda, irritabilidad, confusión, sed, náusea y vómitos. Los síntomas del golpe de calor incluyen: confusión, incapacidad de pensar claramente, desmayos/caer inconsciente, convulsiones, parar de sudar/piel seca. El golpe de calor es el más serio de ambos males.

• Capacite a los trabajadores y supervisores para entender y monitorear el índice de calor.

• Provea de agua fresca, sombra o espacios con aire acondicionado para interrupciones de descanso frecuentes durante el día. Los trabajadores necesitan al menos una pinta de agua por hora y beber agua cada 15 minutos. Evite las bebidas con cafeína.

• Implemente un sistema de apoyo entre compañeros para que los trabajadores se vigilen unos a otros.

• Permita que los nuevos trabajadores o aquellos que han estado un tiempo lejos del área de trabajo, tengan descansos más frecuentes. Considere colocarlos a trabajar medio día fuera (preferentemente en las mañanas) hasta que se hayan aclimatado.

Fecha de la charla de seguridad: Asistentes:

Illustration por Don Lomax

El calor mata E • Utilice ropas sueltas y de colores claros y un sombrero de ala ancha o un casco ventilado.

• Tenga en cuenta que los trabajadores mayores, aquellos que tienen sobrepeso o tienen diabetes o que toman algunas medicinas, pueden ser más susceptibles a los males relacionados con el calor que otros. Asegúrese de que conoce el estado físico de cada trabajador y actúe de acuerdo con ello.

Qué hacer cuando ve males relacionados con el calor: • Pida ayuda al supervisor o al 911 si el supervisor no está disponible.

• Permanezca con el trabajador hasta que llegue la ayuda.

• Mueva al trabajador a un área sombreada o un área más fresca.

• Quite las ropas exteriores, abanique o rocíe agua sobre el trabajador, aplique bolsas de hielo o toallas heladas.

• Provea de agua fresca para beber si la víctima puede hacerlo.

• Si la víctima no está alerta o tiene la piel seca podría tratarse de un golpe de calor, lo cual puede ser mortal. Asegúrese de que la gente del 911 y los socorristas de emergencia lo saben y utilice cualquier medio que tenga disponible para bajar de inmediato la temperatura corporal del trabajador.

Una aplicación para eso La OSHA tiene una aplicación gratis para dispositivos móviles que permite a trabajadores y supervisores monitorear y evaluar el nivel de riesgo de los trabajadores en base al índice de calor, e incluye recordatorios de medidas de protección que deberían implementarse a ese nivel de riesgo. Está disponible para plataformas de Android y para el iPhone en inglés y español visitando: http://bit.ly/OSHAheatindex

Líder: EquipmentWorld.com | August 2018 65

heavy trucks

| staff report

Mack Anthem now available with fuel-efficient engine, aero package

M

ack Trucks has added a high-efficiency 13-liter engine and its Mack HE+ package as available options on Mack Anthem models.

Anthems equipped with the MP8HE engine and HE+ package deliver up to a 9.5 percent fuel-efficiency improvement compared to a base MP8-equipped Anthem model, and the combination is SmartWay certified by the U.S. Environmental Protection Agency.

The 13-liter Mack MP8HE engine

uses waste energy from the engine’s exhaust system and converts it to mechanical energy that is delivered back to the engine crankshaft as added torque – a process Mack dubs “Mack Energy Recovery Technology.”

The Mack MP8HE is matched to an mDrive automated manual transmission, which enables a lower and downsped cruise rpm to take advantage of the extra torque provided by waste energy recovery.

The HE+ package includes several fuel-efficient features, including

additional aero components like a roof fairing with trim tab, side fairings with extensions, chassis fairings with ground effects and an aero bumper with spoiler. It also includes Mack Predictive Cruise – an intelligent system that memorizes a route when cruise control is on, storing up to 4,500 hills in its memory. The next time a driver travels the same route, Predictive Cruise engages the ideal shift strategy for maximum fuel efficiency.

–Jason Cannon

BRIEFS Air disc brakes now standard on International HV, HX series International Truck has made air disc brakes standard on its HV Series and HX Series models. The HV507, HV607, HV513 and HV613 and the HX515, HX520, HX615 and HX620 now feature Bendix ADB22X air disc brakes. From Bendix Spicer Foundation Brake, the brakes feature a lightweight air disc design that allows for increased payload, reduced stopping distance and extended brake system life. Rated for severe service, ADB22X brakes also provide quicker pad replacement and longer pad life.

66 August 2018 | EquipmentWorld.com

Eaton extends 7-speed Procision AMT to construction trucks Eaton Cummins Automated Transmission Technologies has expanded its Procision 7-speed dual-clutch automatic transmission for use on medium-duty utility, construction, tanker, refuse and municipal trucks. Featured as part of the Cummins Integrated Power portfolio, Procision is paired with the Cummins B6.7 engine at many North American class 6 and 7 truck and bus manufacturers. As with all automated transmissions from the Eaton Cummins joint venture, Procision features IntelliConnect, a telematics capable system that provides near real-time monitoring of vehicle fault codes.

land clearing attachments

| by Don McLoud |

DonMcLoud@randallreilly.com

Sweeping action eliminates hand cleanup Worksaver’s Sweep Action Tine Grapple sweeps debris into the bucket, where it is retained when the cylinder overcomes the spring pressure, causing the front rake to rotate toward the bucket in a sweeping motion. It is available in overall widths of 72, 78 and 84 inches. The SATG offers an open tine bottom with its sweep-in grapples, designed for handling demolition debris, rocks, brush, wood and metal.

The sweeping action allows operators to pick up small materials without leaving the cab, eliminating hand cleanup and leaving the dirt behind.

Turn excavator into mulcher

Loftness’ Battle Ax mulching attachment for 7- to 15-ton excavators features a two-stage cutting chamber and directdrive variable displacement piston motor. The Battle Ax is designed for right-of-way maintenance, land clearing and forestry applications. It is available in cutting widths of 41, 51 and 61 inches. The depth gauges on the 17-inch-diameter rotor prevent the attachment from engaging too much material at one time. Available tooth options are Quadco reversible knives and carbide teeth. Custom mounts are available for all makes of excavators.

21 knives for clearing land

The BrushHound FX26 Defender Forestry Mulcher attaches to most compact excavators for use in property maintenance and clearing right of way. The serrated edge on the thumb saddle works with the excavator thumb to grab and remove debris. The cutting width is 26 inches. Cutting capacity is 6 inches. The mulcher has 21, 1-5/8-inch Quadco knives that are easy to change. The attachment requires 15 gallons per minute of auxiliary flow. Its hydraulic direct drive is designed to increase efficiency, power and torque, as well as reduce maintenance.

EquipmentWorld.com | August 2018 67

land clearing attachments

| continued

Quickly shear trees at ground level The Brushshark Tree Shear can quickly shear .5- to 8-inch-diameter trees and brush at ground level. It can handle any type of tree and brush, from cedar to soft saplings. Its low-profile shear plate design enables it to cut along fence lines and clear the bottom wire. It fits on skid steers and most tractors with auxiliary hydraulics rated at least 8 gallons per minute. The shears cut in both directions. Trees and brush up to 3 inches in diameter are sheared in a 1-second cycle. Larger material requires multiple cycles that are each about 1 second.

Grab, dig, scrape and backfill Kubota’s 4-in-1 CB25 Combination Bucket turns skid steers into a combination bucket loader for loading, carrying and dumping dirt and other materials. Along with serving as a bucket, the attachment serves as a grapple and dozer blade and can be used in back drag operations.

The jaw can act as a grapple to pick up rocks, branches and sticks. And when fully opened, the jaw can dig, scrape, level and backfill. The bucket is available in widths of 68, 74 and 80 inches. An optional spill guard adds bucket capacity and helps keep loose materials in the bucket.

Monster brush cutter

Eterra calls the 74-inch model in its Typhoon series of mowers “a monster of a brush cutter.” The Typhoon 74 is designed for heavyduty skid steers and compact track loaders with at least 2,500 pounds of lifting power. The attachment requires 32 to 50 gallons per minute of hydraulic flow at up to 5,000 pounds per square inch of pressure.

It can handle material up to 12 inches with the front gate removed and up to 4 inches with the gate closed. The company says it can “grind down large logs and stumps with slow and deliberate operation.”

68 August 2018 | EquipmentWorld.com

Lift large boulders Geith heavy-duty grapples are made for demolition, recycling and land clearing. The grapples can handle heavy objects such as broken pavement, oversized branches and large boulders. They are designed for excavators weighing 3.6 to 52.2 tons and come in a variety of sizes up to 130 inches. The grapples feature abrasionresistant steel, replaceable bearings in the main hinges, boxed tines with replaceable wear plates, and pinprotecting seals. They are compatible with both pin-on and quick coupler mounting systems.

Mow down material up to 4 inches The Heavy Duty Brush Cutter from Blue Diamond, a partner of Skid Steer Solutions, can mow down material up to 4 inches with a heavily reinforced deck, a ž-inch blade carrier, and a tapered rear deck for improved material discharge and clearance. The deck was also made easier to clean, and thicker to handle highstress areas. The land clearing attachment works on full-size skid steers and compact track loaders. The grease-filled drive is designed to be more reliable than oil and require less maintenance. A perimeter wire guard spools up wire so it can be accessed with wire cutters.

Convert invasive vegetation into mulch The IMH Series mulching heads from Indeco North America are designed for land clearing, site preparation, invasive-vegetation management and storm-damage removal. The unwanted vegetation is returned to the soil as mulch. The mulching head are designed to fit excavators from 5 to 50 tons and to use the excavator’s auxiliary hydraulics. They are available in 10 direct-drive and belt-driven models. Components and bodies consist of Hardox steel. Features include single piece shaft, severe duty bearings and extra heavy-duty drum.

EquipmentWorld.com | August 2018 69

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75

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15

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45

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58

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50

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20

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EquipmentWorld.com | August 2018 73

final word | by Tom Jackson

TJackson@randallreilly.com

No time for slackers

M

achine automation and the digitally connected worksite are much in the news these days. OEMs and technology companies have been creating fascinating new products in this regard.

But what happens when you put one slacker in a smart machine or connected worksite? I suspect the results will be, as the corporate types like to say, “sub-optimal.”

What I’m talking about is not the 2D and 3D machine control technology. That’s proven to help inexperienced operators get better faster and good operators get more efficient.

What concerns me is what some call the connected jobsite, where five or six different trades and three or four different subs all work together under one technology umbrella. It can be done; it is being done. Japan is ahead of everybody on this. But it’s not taking over traditional methods of running a jobsite here anytime soon.

And that’s a real problem for everyone in this industry. Two citations: • A 2017 report from McKinsey says construction labor productivity could increase 50 to 60 percent if the right systems were put in place: http://bit.ly/constructionlabor.

• Noah Smith writing about infrastructure in Bloomberg last year noted that: “U.S. costs are high due to general inefficiency – inefficient project management, an inefficient government contractor process and inefficient regulation.” In other words, a lack of coordination and cooperation, everybody dancing to the beat of a different drummer. Here’s a link to the full story: http://bit.ly/noahsmith.

74 August 2018 | EquipmentWorld.com

The consequences of this are enormous.

According to the Urban Institute, rail projects in major U.S. cities are 10 or even 20 times higher than comparable foreign cities.

Boston’s Big Dig was bid at $2.5 billion but cost $15 billion in the end. The Oakland-San Francisco Bay bridge shot up from $1 billion to $6 billion.

The problem of cost overruns has many fathers, but contractors should ask themselves what they can do to help with solutions. Connected jobsite software and technology is a great solution, but not if it gets torpedoed by slackers in the field.

And let’s be honest, they exist. The barriers to entering the construction workforce are low. Even the best contractors occasionally wind up with people who are on the run from their alimony payments, probation officers, immigration, the shore patrol, you name it.

Some of these outlaws may be good workers, but most probably aren’t. And it only takes one or two deadbeats to bring down the efficiency of a crew. How well can a connected jobsite run if one or two people aren’t pulling their weight and don’t give a rip about anything other than doing the minimum amount of work to get a paycheck?

The technology-connected worksite holds out tantalizing prospects for boosts in productivity, profits and efficiency. But until we solve the human part of the equation, the gains will be incomplete. Fix that weak link, get the right technology, and your company will soar.

CLOSE TO OUR CUSTOMERS. 35 years ago, we presented an innovation in the form of oscillation compaction. Today, we offer this technology to our customers in more than 35 models for asphalt construction and earth work. Just like our experience, this is unique in the industry. Only available at HAMM. www.wirtgen-group.com/america