CEDMag.com - January 2012 Articles
Construction Equipment Distribution magazine is published by the Associated Equipment Distributors, a nonprofit trade association founded in 1919, whose membership is primarily comprised of the leading equipment dealerships and rental companies in the U.S. and Canada. AED membership also includes equipment manufacturers and industry-service firms. CED magazine has been published continuously since 1920. Associated Equipment Distributors
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CEDMag.com - January 2012 Articles

Questions or feedback?
Contact Kim Phelan at (800) 388-0650 ext. 340.

  • Ones to Watch in Washington
    By Christian Klein
    Six House freshmen who are making their mark on Capitol Hill while building strong back-home ties to the equipment industry.
    The 112th Congress includes the largest number of freshmen in recent political memory. AED members and the association's Washington team have cultivated good working relationships with many of those new congressmen based on a shared commitment to entrepreneurship, the free market, reigning in the federal bureaucracy, restoring certainty to the tax code, and investing in highways, bridges, and water infrastructure. This month, we profile six rising stars in the freshman class who have quickly distinguished themselves as leaders.
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  • 2012 Business Outlook Report: Energy's Hot - But Is That All We Got?
    Business Outlook
    By Kim Phelan
    Survey shows widespread expectations for slightly improved conditions for distributors.
    As dealers were closing out 2011, a strange dichotomy was characterizing the North American construction equipment marketplace, in a way splitting distributors into the haves and the have-nots according to a geographic luck of the draw. Those fortunate enough to be doing business in proximity to energy-related booms - chiefly oil and gas - as well as ag and mining, experienced a very favorable year. Those who are not able to participate in these sectors were generally characterizing 2011 as an OK year at best.
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  • The Business of Equipment Theft and What Dealers Can Do About It
    By G. C. Skipper
    Even with overall reported thefts down, stolen equipment is still at least a half-billion-dollar industry.
    One of the most intriguing questions that surfaced from heavy equipment theft data in 2010 is: What caused the unprecedented decline in reported incidents? According to the "2010 Heavy Equipment Theft Report" a study conducted in 2011 by National Equipment Register (NER), a division of ISO Crime Analytics, and the National Insurance Crime Bureau (NICB), incidents dropped from double- to single-digit percentage points.
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  • Getting the Biggest Bang For Your Online Bucks
    By Joanne Costin
    CED asks the experts how construction equipment dealers can make the most of their online marketing spend.
    Marketers continue to ditch traditional media such as Yellow Pages advertising in favor of Internet marketing. eMarketer recently forecast online ad spending growth at 20.2 percent for 2011, with growth expected to continue. By 2015, total online advertising will reach $50 billion. The reason: Online search is growing. "Fifty-eight percent of all purchase decisions start with search," said Yoram Wurmser, director, Marketing & Media Insights, Direct Marketing Association (DMA). Online marketing also offers a better return on investment. The DMA reports that every dollar spent on B2B Internet marketing delivers a return of $18.54 compared to $4.64 for nondirect marketing advertising. B2B e-mail marketing had an ROI of $37.28, but it is not considered a good customer acquisition strategy.
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  • Focus on the Young – Teach, Train, and Guide Them
    From the Chairman
    By Dennis Kruepke
    Closing thoughts and a humble thanks for the honor of being your 2011 Chairman.
    I recently attended a Boy Scout Distinguished Citizen Award Luncheon that recognizes noteworthy and extraordinary leadership of citizens from around my regional area. This annual luncheon helps to deliver a message to our youth that character counts. The individual recipients at this awards ceremony reaffirm the values that inspire our youth to lead, to accept responsibility, and to care about principles and causes beyond themselves. I am fortunate to personally know several individuals who are recipients of this award. Closest to me is Richard McCann, chairman of McCann Industries, a long-time business partner, mentor and friend. It’s my honor to know these individuals who contribute to the development of our youth, and I appreciate the values and principles that they have also helped me develop.
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  • Dealers Have a Wonderful Way With Words
    Editor's Note
    By Kim Phelan
    Enjoy 10 'award-winning' quotes we find well worth sharing.
    This month at Summit, AED will honor the volunteerism and achievements of colleagues and peers in the equipment business. It's an inspiring, refreshing exercise to pause and recognize those who have made great contributions to the industry. It is in that spirit of awarding meritorious effort that I dedicate this page to some special recognition of my own.
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  • Will It Be a Good Year? You Have a Lot to Say About That
    On the Numbers
    By Garry Bartecki
    Watch payroll closely – and learn from dealer peers what else to control by participating in a data-rich AED/ADP Performance Group.
    It makes no difference whether you plan for a good 2012 or a bad 2012; you still have to run the business. From what I hear there are sectors in this country where things have been good and remain good, and sectors where dealer customers indicate they plan no equipment acquisitions in 2012. And a third category has popped up in terms of parts, service and rental billings trending upward even though equipment sales are stagnant. But no matter what scenario you fall into, you still have to manage and run the business and manage the risk associated for each scenario.
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  • Bracing for the Slowdown in 2012
    Business Outlook
    By Eli Lustgarten
    But the U.S. economy might be one of the best houses in the rundown global neighborhood.
    The U.S. economy appears to have been gaining some momentum as the year 2011 was drawing to a close. Too bad it's unlikely to last much into the new year. The industrial sector is finishing on a strong note with the Institute for Supply Management Purchasing Managers Index (ISM PMI) rising in November to 52.7 from 50.8 in October with increases in both new orders index to 56.7 (from 52.4) and production index to 56.6 (from 50.1). Most North American equipment markets showed substantial increases in demand in 2011 from 2010: trucks up more than 60 percent; rail cars up more than 125 percent; and construction equipment up more than 35 percent. What we are witnessing is a bounce in equipment sales back toward a level more consistent with current activity after a more than two-thirds peak to trough decline in many markets during the 2008-'09 recession.
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  • Dashboards as a Management Tool
    By Ron Slee
    Looking after business on a daily basis is much smarter than waiting for month-end.
    For nearly a decade now, the use of a "dashboard" as a management tool has become quite common. This is using a picture, a graphic image, perhaps a traffic light, as a signal that things are going well or not so well. Not only is this a great tool, but it is one that can be used on a daily basis throughout the month, not just after the month has been completed. Let’s go back to some basics. Through AED, our industry has a series of operating and financial standards against which you can compare your performance. These standards are expressed in the parts and service departments through the Product Support Handbook and other publications. They are taught in the classroom and through webinars offered by AED throughout the year.
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  • Oil Pipeline Delay Bad for U.S.
    View from the Hill
    By Congressman Ed Royce (R-CA)
    Obama's choice to postpone a decision is clearly election-driven, but the consequences will haunt us far beyond next November.
    Talk about a self-inflicted wound. With U.S. unemployment hovering at about 9 percent, with the U.S. sending hundreds of billions of petrodollars every year to hostile regimes, and with our growing economic rivalry with China, the Obama administration's decision to further postpone the Keystone XL Pipeline Project is simply maddening. The proposed Keystone pipeline would move the abundant, proven crude-oil reserves in Alberta, Canada – the third-largest in the world – to U.S. refineries on the Gulf Coast. Its construction is still awaiting an Obama administration OK, three years after the request was filed, longer than the typical process. But the administration announced recently that the process would be delayed again, until after the November 2012 election.
    [ read more ]
  • Find the Answers You Need in an AED Dealer Performance Group
    Inside AED
    Even if you don't know the questions yet.
    Who knows more about running a dealership than your peers? AED and ADP Performance Inc. strongly believe that the best way to improve the profitability and operating efficiency of your dealership is to harness the knowledge of your peers. By arming dealers with the industry's most comprehensive and timely data available, AED's Dealer 20 Performance Group Program is unlike any other tool available to improve your performance.
    [ read more ]
  • Two More College Equipment Service Technology Programs Accredited
    The total is now 26 U.S. post-secondary schools.
    Congratulations to the faculty and administration of the heavy equipment service technology programs at College of Western Idaho in Boise, Idaho, and Reedley College in Reedley, Calif. They have become the latest schools to receive AED Accreditation. Receiving Accreditation assures students and prospective industry employers that the college diesel-equipment technology programs meet rigorous technical academic program standards as defined in The Foundation's Standards for Construction Equipment Technology. "These standards address the needs of the equipment industry, as stated by the industry," said Steve Johnson, Foundation executive director. To date, 26 technical schools have received the AED Accreditation.
    [ read more ]
  • Slow Job Growth Tied to Slow Construction Recovery: Forecast Puts Robust Cement Consumption Off Until 2014
    Industry Beat
    Portland Cement Association says structural issues throughout the sectors will hinder recovery.
    Job creation is key to improving many economic indicators, and its reduction translates into a longer wait for the construction and cement recovery. Even with an economic recovery, construction levels will remain at new floor levels and lead to relatively flat cement consumption until 2014, according to the most recent economic forecast from the Portland Cement Association (PCA).
    [ read more ]
  • Transporting Equipment is A Big Deal
    Play It Safe Connection
    By Randy Dombrowski
    Dealerships that deliver and pick up machinery are responsible for that load, even if they use a contract driver.
    A driver was transporting heavy construction equipment to a customer when another vehicle suddenly merged in front of his truck. He applied the brakes quickly to avoid an accident, but the construction equipment shifted against the tiedowns. The strain of the shifted weight caused the tiedowns to fail, and the equipment was ejected from the trailer. The equipment bounced several times down the roadway, gouging the road. The load chains and pieces of cement struck multiple other vehicles, causing a chain reaction crash. An investigation revealed that the driver was inexperienced and failed to use the proper number of tiedowns to secure the equipment. The driver and dealer were found liable for damage to the roadway and to the victims injured in the crash.
    [ read more ]
  • ADI's Dealer Loyalty Program Designed to Boost Your Company's Service Business
    A Closer Look
    By Joanne Costin
    Hassle-free and tailored to the dealer's marketing objectives, Dealer Rewards can add profit right to the bottom line.
    When it comes to looking at their business, Advantage Dealer Insurance (ADI) looks at the big picture. Instead of focusing their business solely on insurance services, its strategy is to think about what they can do to better serve their core customer: the dealer. With an experienced team of construction equipment industry veterans, ADI is a supplier with an insider's perspective on dealership challenges and opportunities.
    [ read more ]
  • Window to CONDEX
    CED presents Part 3 of its special preview to the upcoming CONDEX trade exhibition exclusively for AED dealers in conjunction with the 2012 AED Summit at the Gaylord National Resort and Convention Center, Jan. 18-20.
    Be sure to visit all the CONDEX exhibitors, each of whom is investing resources to develop business relationships with AED North American distributors. Come see which products and services will help your business thrive and grow in 2012 and beyond.
    [ read more ]
  • Take the Culture Plunge
    By Christine Corelli
    Get everyone in the dealership on board for a transformation – here are 12 steps to get you moving in the right direction.
    Forget tough. Today, competition is brutal. Developing a reputation for exceptional customer service, better yet, a "Sales-Service Excellence Culture" is not optional. It is critical to your success. A sales person cannot sell or rent your equipment without being able to confidently communicate the product support your dealership provides. When they do sell, they know that your competitors will be circling in like a pack of wolves to take them away. If you want to gain more sales and be able to retain your new and existing customers, you and your entire sales team need the full support and dedication of everyone in your company.
    [ read more ]