Industry BeatCED Magazine, November 2009
Article Date: 11-01-2009
Copyright(C) 2009 Associated Equipment Distributors. All Rights Reserved.
GE Capital Launches New Rebate Lease
For small and medium-size companies, leasing can be a critical finance option to help improve cash flow, enhance liquidity and increase flexibility. A new Rebate Lease program from GE Capital reduces the financial risk of leasing for companies whose equipment usage may fluctuate.
"In this economy, dealers don’t just need to sell their product, they need to help their customers buy it,” said Diane Cooper, general manager of GE’s Equipment Finance Business. "That’s where financing – especially creative new products like the GE Rebate Lease – helps close the sale."
The product was developed in response to comments from manufacturers and dealers of construction equipment whose customers have found it challenging to predict usage for leased equipment," said Cooper.
The new Rebate Lease program provides lessees who under-use the equipment with a direct cash rebate, applied at the time the equipment is returned. The process is simple: When the equipment is returned, GE's remarketing agent sends GE a report on the condition of the equipment and the amount of hours it was used. If it was used for fewer hours than were allowed for in the lease, GE calculates the rebate and sends it to the customer.
"Over-usage would be determined the same way," says Cooper. "Only with the Rebate Lease, the charge is significantly lower than the industry averages. When equipment is returned with hourly usage greater than the amount allowed for in the lease an over-usage charge will be billed to the customer."
GE Capital's Rebate Lease is currently being offered to construction industry customers on most types of equipment and will be available to other industry sectors at a later date. GE Capital is America's largest commercial leasing company.
Strategic Feedback Names Nortrax Equipment as Its 2008 Construction Dealer of the Year
Strategic Feedback, which specializes in customer satisfaction research among construction and agricultural dealers, recently named Nortrax Equipment Co. SE, Fort Myers, Fla., its Top 2008 Construction dealer of the year. Nortrax received three awards for overall customer service, from customer satisfaction research company Strategic Feedback, as part of its SatisfYd Parts & Service Satisfaction Program. Nortrax is the first dealership group ever to receive three of the 12 awards. Nortrax was competing against 1,000 construction and agriculture dealers.
"This really is a testament to our people and their dedication to going above and beyond for our customers. Whether it's with parts, personalized service or unwavering support, they are doing whatever it takes to help our customers be successful." said Tim Murphy, president and CEO of Nortrax.
Nortrax Fort Myers, Fla. earned top marks for service; Nortrax Vandalia, Ohio won sixth place for service and Nortrax Melbourne, Fla. took fifth place for parts. Nortrax Inc. is the largest John Deere dealership group for construction, mining, and forestry equipment in North America and extends across the eastern and central portions of the U.S. and Canada.
Also recognized among the top performing construction dealers were General Equipment Co. (McMinnville, Tenn.), James River Equipment (Salem, Va.), Miller-Bradford & Risberg, Inc. (Sussex, Wis.) and Nortrax-Great Lakes Inc. (Vandalia, Ohio).
In the News
Lawson Software announced that Butler Machinery, the Caterpillar equipment dealer headquartered in Fargo, N.D., licensed the Lawson for Equipment Service Management and Rental Suite software. Butler will use the Lawson solution to help promote efficiency within the company and position it for growth. In addition, Butler will use the Lawson Human Resource Management Suite to support its HR-related activities. Jerry Randecker has joined the executive search firm Jordan-Sitter Associates (JSA). Randecker has spent his entire career in the heavy equipment industry, with senior management experience on both the manufacturer and distributor sides of the industry.
Multiquip is consolidating to streamline the company and boost the efficiency of its business processes. Prompted in part by the global economic crisis, the company has consolidated and fully integrated the General Construction Equipment (GCE) and Power divisions into a single, right-sized, function-based organization, eliminating redundancies and promoting efficiency.
In conjunction with these initiatives, Gary S. Moskovitz, who previously served as the company's executive vice president, has been named president and chief operating officer.
Mike Howlett, former GCE Division president will take over the new position of senior vice president of operations; former Power Division president Bob Graydon becomes the new senior vice president of sales, marketing and planning; Phillip D'Amato has been promoted to vice president, human resources and corporate services and Torsten Erbel has been promoted to vice president of product management, engineering and customer support. Michael Hanken continues as vice president of Information Technology and Jim Henehan continues as senior vice president of finance/administration and CFO.
Multiquip is one of the largest and most diversified suppliers to the construction, telecommunications, special events, industrial, shelter and disaster/emergency market sectors. The company sells through a worldwide dealer network in more than 70 countries.
Cal Collins has been named President of Esco's Engineered Products Group, with responsibility for all global sales, marketing, engineering and operation groups. Collins most recently served as the company's group vice president, Engineered Products, North American Operations. He has also served as Esco's vice president of Administration and as corporate secretary and general counsel. Collins was a partner with a Portland law firm of until 2000, when he returned to ESCO.
Scott Place has joined Atlanta JCB as sales manager. Low Country Machinery, headquartered in Pooler, Ga., is the parent company of Atlanta JCB and Low Country Machinery-Augusta.
KIOTI has announced the addition of Hans Bouwers, Ron Ross and Troy Crawford to their sales team. Bouwers comes on board as the Canadian national sales manager, Ross as the south central regional U.S. territory representative and Crawford as the western U.S. territory representative. Bouwers will recruit new dealers, assist in sales training and oversee territory managers throughout Canada. Crawford will cover the states of Washington, Oregon, Idaho, Utah, Wyoming and Montana. Ross will represent KIOTI in South Central Texas.
Kent Equipment now distributes the full line of Terex compact construction equipment to customers in Michigan. The company has distributed other types of Terex equipment since 2002.
JCB recently named Dougherty Equipment Company as the new full line JCB dealer covering all of South Carolina with the exception of Hampton, Jasper and Beaufort counties. Dougherty Equipment has four full service locations and more than 100 certified technicians throughout the state.
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