Industry BeatCED Magazine, September 2009
Article Date: 09-01-2009
Copyright(C) 2009 Associated Equipment Distributors. All Rights Reserved.
CNH Reorganizes Construction Group
Jim McCullough heads the new organization, and Jim Hassler is responsible for North American region.
CNH Global N.V. has reorganized its construction equipment management structure. In the new structure, CNH will maintain its construction brands, Case CE, New Holland Construction and Kobelco, while consolidating its internal construction equipment management structures. “The restructuring will have no impact on the dealer organization or our customers,” said Tom McLaughlin, communications manager for CNH Global. The brands’ sales forces and distribution networks will remain separate, enabling them to focus their efforts on brand-specific sales and service.
The new construction equipment organization will be headed by Jim McCullough, who is currently the CEO of Case Construction Equipment. McCullough will report directly to Harold Boyanovsky, president and CEO of CNH.
The objective of the reorganization is to streamline internal operations and reinforce product architectures while significantly reducing the costs of managing brand networks and building brand value.
In North America, Europe and Latin America, the new organization will be led by regional managers reporting directly to McCullough. Jim Hassler, vice president of CNH Construction, will head up the North American region. Sales administration, marketing and back-office functions for the brands will be centralized within the regions and overseen by McCullough and a small staff.
CNH’s International Region organization, headed by Franco Fusignani, will now include the construction equipment businesses alongside CNH’s agriculture equipment businesses.
Consumers Get a Taste of Training at Birch Equipment
Homeowners and contractors alike can now learn to use a variety of lawn and garden and construction equipment at Birch Equipment stores. The company has just launched a program that enables consumers to learn alongside employees during weekly training sessions that are free of charge. The Bellingham, Wash.- based rental dealer is just beginning to market the program to consumers.
“Employees lead the sessions, which typically last about 30 to 45 minutes,” said Cara Buckingham, information director. “Whether the consumer is renting a rototiller or a pressure washer, the goal of the training session is to make people feel more comfortable with the machine they are renting.” Instructors focus on both safety and performance tips to help the consumer have a more successful project.
The decision to open the weekly training seminars to consumers is a natural extension to the company’s focus on training. Birch employees spend more than 5,000 hours in paid training hours each year. Extending the training to consumers is a way to expand customer service and improve the rental experience. The training sessions are in addition to written instructions that accompany all outgoing rental equipment and the orientation provided by employees.
As a leading dealer and distributor of Genie and Gehl products, Birch has also been a leader in offering Train-the-Trainer classes for contractors. Taught by certified Birch staff and factory reps, the classes combine classroom instruction with extensive hands on equipment training. Participants obtain certification, which allows them to train and qualify their own employees as Genie scissor lift and boom lift operators, and Gehl reach forklift operators.
Birch serves a diverse customer base of contractors, homeowners, manufacturers and heavy industrial clients. Its new consumer training program makes good use of resources by utilizing existing training sessions to further enhance the experience of homeowners.
Birch Equipment is ranked among the top 100 rental companies in the nation and is the leading, independently owned construction equipment and sales company in the Pacific Northwest and Southeast Alaska.
Temporary Equipment Regulatory Relief for California Fleet Owners
In late July, the California Air Resources Board adopted amendments to help business owners comply with its pioneering 2007 regulation aimed at reducing toxic diesel emissions from the state’s estimated 180,000 off-road vehicles.
Though the move brings some relief to the struggling construction industry in California, dealers in the state aren’t ready to jump for joy. “It’s just a delay,” says Dan Pilon, branch manager for the Long Beach, Calif. branch of Coastline Equipment. “Nobody wants dirty air, but along with the economy, the regulations are not making it easier to do business in the state of California.” Pilon doesn’t see any big impact on his business as a result of the change.
According to Pilon, some developers are also requiring the latest machines be used on their jobsites, effectively excluding many smaller fleets from bidding. Under the legislation, small fleets (with a combined horsepower of 2,500 or less) have until 2015 to meet the requirements, while medium size fleets (2,501-5,000 hp) need to be compliant by 2013. Fleets with 5,000 hp or greater must begin complying by 2010.
Under the ruling, fleet owners who have reduced vehicle usage due to downsizing or work stoppage will be able to use credits to delay retrofitting their existing equipment with pollution controls or purchasing new equipment. The changes will not repeal or delay general implementation of the rule.
“This harsh economy calls for flexibility and creativity when dealing with new regulations if we are to continue to make progress in reaching the goal of healthy air for all Californians,” said ARB chairwoman Mary D. Nichols. “These changes will allow the hardest-hit fleets to postpone their compliance costs until the current recession has eased.”
The regulation adopted in 2007 – the first of its kind in the nation – requires installation of diesel soot filters and replacement of older, dirtier engines with newer emissions-controlled models according to a staggered timeline, depending on fleet size. Other states are considering adopting similar legislation.
The changes will also allow fleets to delay a portion of their compliance obligations for 2011 and 2012 until 2013. The board also approved changes which will exempt vehicles that are retrofitted ahead of schedule from being replaced in the future, and allow small- and medium-sized fleets to buy a filter today instead of having to buy two in a future year.
California Approves HUSS MK Retrofit System
In late 2008, Volvo Construction Equipment entered into a strategic partnership with HUSS, LLC, to provide retrofit systems for Volvo construction equipment that will significantly reduce exhaust emissions. The HUSS MK system now has final approval from California for Volvo Tier 3 IEGR-equipped machines in that state.
The HUSS MK system, approved for use on Volvo engines utilizing V-ACT technology with internal exhaust gas recirculation (IEGR), meets California’s CARB Level 3+ requirements. Volvo equipment owners can utilize the system to help comply with the “In-Use Off-Road Diesel Vehicle Regulation,” or to provide the best available control technology (BACT) for the newest machines in owners’ fleets. Previously, engines using any type of EGR had been excluded from applying exhaust retrofit technology in California. This has now changed with the recent system verification by the state.
The HUSS retrofit system for Volvo equipment is capable of collecting up to 99 percent of diesel particulate matter (PM) emissions, substantially exceeding the California CARB requirements.
Remembering Fred Johnston
Fred Johnston, Jr., a strong supporter of AED, passed away on July 16, 2009, from complications of Parkinson’s disease. He was 85. Johnston was best known in the industry for his role as publisher of Construction Digest and president of the Associated Construction Publications, an elected position which he held more for more than 20 years.
In 1997 AED honored Johnston with an award for 50 years of “faithful attendance” at the AED annual meeting.
Those who wish to share their condolences are encouraged to sign an online guestbook at www.flanner-buchanan.com/obits/.
JCB Dealer Low Country Machinery Expands Into Atlanta Market
Low Country Machinery, the authorized JCB dealer for the Coastal Georgia region, has expanded into the Atlanta market. The expansion gives them coverage across the state of Georgia with the addition of two new locations, Atlanta JCB in Kennesaw and one in Augusta. Rick Piper, will serve as president overseeing operations at all three locations.
“I am excited about this opportunity. The addition of both Atlanta JCB and our new location in Augusta enable us to provide the highest level of customer service across the state,” said Piper.
Low Country Machinery has been serving the heavy equipment industry in coastal Georgia since 2001. The addition of Atlanta JCB in Kennesaw, Ga., came at a great time for Low Country Machinery – the current slowdown provided an excellent opportunity for expansion, says the company. The team from Low Country has been able to work very closely with the new team in Atlanta to ensure synergy between the two locations.
In the News
Kevin Belflower has been promoted to the position of president and CEO of Stafford.
Belflower joined Stafford in 2005, as regional vice president for the company’s three South Georgia locations. In late 2007, Belflower was promoted to SVP/sales manager for the entire Stafford organization. Stafford, a multiline dealership selling John Deere utility, Liebherr, Terex, Hyundai, Kobelco brands and more, has 10 locations throughout Georgia, the Carolinas, Virginia and Alabama.
McAllister Equipment Co. is pleased to announce the appointment of Bob Lesher as vice president of customer support. Based at the company’s Alsip, Ill., store, Lesher will be responsible for all aspects of parts and service operations for McAllister’s six Illinois branches. Lesher has enjoyed nearly 40 years of experience in corporate management at both the manufacturing and distribution levels of the construction equipment industry. Prior work experience includes regional vice president of Volvo Construction Equipment, general manager of Brandeis – Indiana Equipment Co. and, most recently president of Atlanta JCB. Established in 1955, McAllister Equipment Co. is a full-service construction equipment dealership with locations in East Peoria, Ingleside, Rockford, Villa Park and Springfield.
LiuGong Construction Machinery, a global leader in wheel loader sales, is pleased to announce the continued expansion of their dealer network with the appointment of JOB Rentals & Sales, LLC. in the states of Indiana and Kentucky. LiuGong Construction Machinery offers a full line of high-quality, high-productivity earthmoving equipment, including wheel loaders, tool carriers, skid-steer loaders, hydraulic excavators and vibratory
Patrick Shannon, vice president, construction equipment finance, Volvo Financial Services North America, has been appointed vice president, finance, and chief financial officer for Volvo Construction Equipment North America, based in Asheville, N.C. Shannon replaces Muriel Huyghebaert, who is returning to Brussels as vice president, finance, and CFO for Volvo Construction Equipment Technology.
Roger S. Siboni has joined the IronPlanet board of directors. He brings more than 30 years of experience and executive level management in technology and financial management to the IronPlanet board. Most recently Siboni served as president and chief executive officer of Epiphany Inc. Siboni also sits on the boards of directors of ArcSight Inc., Cadence Design Systems Inc., Dolby Laboratories Inc. and infoGROUP Inc. IronPlanet is a leading online auction company for used construction and agricultural equipment.
Terex Construction Americas has announced that Kurt Bollman has been named general manager of Terex ASV, the company’s compact track loader manufacturing facility. Bollman was previously general manager of Terex ASV’s Loegering undercarriage design and manufacturing plant in Casselton, N.D. He replaces Mark Glasnapp, former president of Terex ASV, who is retiring.
Mike Mrotek has been appointed as the senior product manager for the Genie Telehandler product line, manufactured by Terex Aerial Work Platforms (AWP). Mroteks’ responsibilities include leading the telehandler product line by assessing customer and market needs in North America, identifying new product ideas and sales channels, and helping to set the overall strategy for growth.
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