CEDMag.com - June 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 - June 2012 Articles

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Contact Kim Phelan at (800) 388-0650 ext. 340.


JUNE 2012
  • Health Care Construction: A Market in Flux
    Sector Check
    By Joanne Costin
    Top contractors talk about how the health care reform law, changing demographics, and even BIM are influencing equipment use and demand for this sector.
    Regardless of how the U.S. Supreme Court rules on the Affordable Health Care for America Act (HR 3962), fear of the unknown has already propelled the health care industry into an era of unprecedented change. Contractors responsible for building hospitals, surgical centers, medical offices and other health care facilities have already begun to see the impact of these drastic changes.
    [ read more ]
  • Keep Me Hanging On - The Strain of Lengthy Lead Times
    Market
    By Jeanne Fec
    With many factory lead times on equipment orders as long or longer than 2011, dealers are stretched simply trying to hold on to customers.
    Equipment dealers are relieved to see new machine orders climbing, but according to a recent CED machine availability survey, the contractors are not hearing good news. The lead times on compact and heavy machines are extending out beyond three months, and some projected deliveries are not likely to be seen by end of year.
    [ read more ]
  • Global Equipment Users Reveal Rental Plans in KHL Rental Attitudes Survey
    Rental Around the World
    By Murray Pollok
    More than 800 equipment users responded to International Rental News magazine's first ever 'Attitudes to Rental' survey between mid-January and late February. We received a particularly good response from Brazil, where we had more than 300 responses.
    Ask a customer what they want and they will usually tell you. In the case of our first ever 'Attitudes to Rental' study more than 800 contractors, industrial companies and other equipment users from around the world have done just that, generating a mass of data on exactly how customers view the rental industry and their rental suppliers.
    [ read more ]
  • Get to the Truth: Confronting and Overcoming Customer Objections
    Sales
    By Kim Phelan
    Experts explain how to respond and stay in control of the selling situation.
    If it’s a new day in the equipment salesman’s life, then sure as the sun rises some customer or prospect will be raising objections about buying from your dealership. It’s just a classic, predictably antagonistic part of the process, but sales trainers caution that what you don’t do in the face of customer objections is just as important as what you do.
    [ read more ]
  • Compensating People in This Industry
    From the Chairman
    By Larry Glynn
    To be successful in your territory, it’s essential to keep your whole workforce motivated.
    If I was a manufacturer sales person going to meet with a dealer representing me, the first thing I would want to know is: How are the sales people compensated? Most of the industry is driven by commissions or quotas with bonuses. After all, our industry has a history of up and downs over the years. Most companies want to have their sales costs go up and down with sales.
    [ read more ]
  • It Doesn’t Get Better Than Sweet Home North America
    Editor’s Note
    By Kim Phelan
    We may not have the Tour Eiffel and we might have sluggish GDP growth, but the picture looks better here when you do a little traveling.
    An editor pal has been telling me for some time that I ought to swap out my photo for this page periodically – if nothing else, to create the illusion that I’m a moving target, I guess! The goal is always to be scouring for trends and useful information for AED dealers.
    [ read more ]
  • Making Money With Rental
    On the Numbers
    By Garry Bartecki
    Exploring the Rent-to-Rent silo to meet changing end-user demand, and what it takes to be profitable when you’re not renting to sell.
    We just completed the first "Understanding the Rental Market" themed CFO Conference, May 3-4 in Chicago. The program featured various experts to discuss different aspects of rental and we enjoyed considerable active discussion and commentary throughout the day. It will be repeated in the fall for those of you who missed this session.
    [ read more ]
  • Managing for More Moderate Growth, Volatile Politics
    Business Outlook
    By Eli Lustgarten
    Acceleration in 2012 U.S. growth will taper, but the largest concerns stem from abroad.
    The momentum in construction equipment demand from 2011 has spilled over through the first quarter of 2012. Forecasts from major OEMs this year still call for at least mid-doubledigit volume gains or at least in the first half, which is about as far as their bookings will let them see. While the bonus depreciation has fallen back from 100 percent to 50 percent for 2012, prices are going up due to the IT4 emissions roll-out, which affects all equipment for 2012, particularly those machines under 174 hp that were exempt in 2011. Prices for these small to medium machines appear to be up 7 to 10 percent or more when they are introduced this year, giving a narrow window in some circumstances to beat the impact of the higher prices.
    [ read more ]
  • Are We Becoming Complacent, Again?
    Aftermarket
    By Ron Slee
    Take the parts business off of autopilot, and instead take action to achieve the 'possible.'
    It has been nearly four years since the financial meltdown, and it appears that we have settled in to this new reality – but not in the manner that I expected. We are getting some encouragement as the fleets of the contractors are being refreshed; however, they are not growing.
    [ read more ]
  • Capital Gains Tax Hike Will Hurt State Coffers
    View from the Hill
    By Margo Thorning
    Ignoring the importance of these taxes for many states' fiscal integrity, Buffet Rule will discourage investment, kill jobs.
    The Buffett Rule, a measure to raise income tax rates on individuals and capital gains of top-earning Americans, recently received its first close-up in the U.S. Senate and failed. Nevertheless, President Obama, Senate leaders and others have pledged to continue to raise the Buffett Rule again and again this campaign season in the name of tax "fairness."
    [ read more ]
  • Looking for Profitability? Make Sure You 'Guard the House'
    Inside AED
    Strategic intelligence for your business available only at Executive Forum, Sept 6-7. Reserve your seat at www.aednet.org/forum.
    What are the "coordinates" for Q4 dealer profitability and beyond into 2013? If plugging in simple latitudes and longitudes were all it takes then taking profits to the next level would be a no-brainer. But the dealer's competitive reality is all the complexity of a military mission and none of the simplicity for getting there. However, hundreds of dealer executives have come to rely on the industry's one-stop intelligence gathering each fall: The AED Executive Forum, scheduled this year on Sept. 6-7 near Chicago's O'Hare Airport at the Rosemont Hilton.
    [ read more ]
  • Technical Training Committee Works Hard on Your Behalf
    Groundwork
    These dedicated industry experts help The AED Foundation keep the bar high for the dealer workforce.
    The AED Foundation's Technical Training Committee (TTC) for 2012 met this spring at AED's Oak Brook, Ill, headquarters to report on its work for the current year and strategize for continued progress on the accreditation program going on throughout the U.S. An advisory committee to the Foundation, TTC supports the delivery of value-added workforce development and technical education services for the benefit of AED members. This dedicated group of volunteers is comprised of representatives from AED member dealers and manufacturers, as well as from AED Accredited college technical programs. Committee initiatives are based on The Foundation's strategic plan, as approved by The AED Foundation Board of Directors. Thank you to the following individuals and organizations for volunteering their time and talents to the industry.
    [ read more ]
  • AED Vice Chairman Tells Congress Shale Energy Means Economic Growth, Jobs for Equipment Industry
    Industry Beat
    AED Vice Chairman Mike Quirk testified at a U.S. House of Representatives Natural Resources Committee Energy & Mineral Resources Subcommittee field hearing in Denver on April 1. Quirk spoke about the jobs and energy security implications of hydraulic fracturing, as well as the impact on dealers. Quirk is vice president of Wagner Equipment, based in Aurora, Colo.
    "Shale energy development has allowed Wagner Equipment Co. to begin to recover from the recession and start to grow once again," Quirk said. "While the equipment markets on which we previously depended have still not recovered, demand from nontraditional markets, such as hydraulic fracturing, have helped us get our company back on solid footing."
    [ read more ]
  • Do You Have a Driver Who Is An Accident Waiting to Happen?
    Play It Safe
    By Randy Dombrowski
    Qualifying all your company’s drivers can help prevent tragedy; it will also keep your image positive in the community and among customers.
    Following is a hypothetical scenario that is, unfortunately, not so uncommon: A field service employee at an equipment dealership drives to a customer location to complete urgent repairs. Following a long day in the field, the employee stops at a tavern for dinner and a number of alcoholic drinks. After a few hours, he begins driving home rather than taking the service vehicle back to the dealership. While en route, the employee misses a stop sign and sideswipes a vehicle carrying a family of four, causing serious bodily injury to the passengers and damage to both vehicles. Law enforcement determines that the employee is drunk, and he is arrested on the scene. The accident makes the local news. The family hires an attorney who obtains the employee’s 10-year driving history, which shows previous violations for speeding and a conviction for driving while intoxicated. Fearing the results of a jury trial, the dealership’s insurance company moves to settle the case for more than $1 million.
    [ read more ]
  • It's the Second Sale That Means Success
    A Closer Look
    By Joanne Costin
    Anyone can sell a machine once, says Solesbee's' president. He – and his dealers – say the company is easy to business with because of its quality attachments, flexible purchasing processes, and rapid delivery.
    In an age where it seems you can't do anything without providing a pin number, a password, or listening to an endless menu of options on voice mail, Solesbee's Equipment and Attachments offers a welcome contrast. The attachments manufacturer from Douglasville, Ga., is focused on winning the end game by making it easy for dealers and end-user customers to work with them. "We try to make the purchasing experience easy. We try to adapt to your method of purchasing," explained David Jenkins, president of Solesbee's. "Some people order on an iPhone. Some people fax. Some people call. We like to handle each customer in the method they want."
    [ read more ]
  • Distributors Press Lawmakers on Industry Priorities
    Recap from the AED Washington Fly-In
    On April 25-26, America's leading construction equipment dealers hit the marble corridors of Capitol Hill as part of AED's 2012 Washington Fly-In. Attendees became lobbyists for a day, urging lawmakers to take swift action to approve a new highway bill and advance other industry priorities.
    "Your presence here in Washington is critical," said 2012 AED Government Affairs Chairman Ken Taylor (Ohio CAT) in his opening remarks to attendees. "The simple fact is that there are far too many lawmakers who don't understand how their decisions affect your companies and your employees. You're here to help turn the abstract into the concrete for the people who serve you in the House and Senate. You're here to help them understand the real world consequences of their decisions."
    [ read more ]