CEDMag.com - August 2011 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 - August 2011 Articles

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


AUGUST 2011
  • Auction Update 2011: It's a Small, Small World
    Here's what auction companies that specialize in this space, as well as other experts, are seeing at the midyear point of this semi-post-recession period in CE history.
    Like it or not, auctions have become an integral part of the equipment supply chain. Through the growth and success of online auctions as well as a weak U.S. dollar, auction companies have opened up new markets for used machinery around the globe. "In the past, a lot of dealers looked at auctions as almost a failure on their part," said Paul Hendrix, equipment pricing analyst for IronPlanet, "but by and large most dealers are at least considering buying or selling at an auction today."
    [ read more ]
  • Midyear 2011: Bright Spots are More Spotty Than Bright
    By Ken Simonson
    This year has not proven to be the picture of health the equipment industry had hoped it would be, yet pockets of promise are visible.
    At first glance, the latest construction spending and employment news is pretty dark. Construction spending fell in May to an 11-year low, the Census Bureau reported on July 1. Construction employment remained in the doldrums in June, down 9,000 from the level in May and down 29 percent from the peak way back in April 2006, the Bureau of Labor Statistics reported on July 8.
    [ read more ]
  • Midyear Regional Dealer Report: Get Your Rental Game On – It May Be the Best Game in Town
    By Jeanne Fec
    http://www.franklynn.com/
    CED's survey reveals how dealer projections for 2011 align with reality at the midyear point, and how dealers are managing their businesses to create profit.
    Everyone seems to be in agreement: This has been the slowest recovery since the 1930s disaster. According to a recent Wall Street Journal article, the U.S. economy has had quicker recoveries from the 1980, 1991 and 2001 economic slumps.
    [ read more ]
  • Midyear Credit Snapshot: The Rat is Through the Snake
    By Kim Phelan
    For the most part, bad credit bumps have moved through lender portfolios, but that doesn’t mean lenders are ready to bite off – or stomach – anywhere near the pre-crisis levels of construction industry financing.
    A record-high 36 percent of Americans lack confidence in banks today versus 14 percent of bank skeptics in 2007, according to results of recent Gallup survey question. Unfortunately, banks might feel the same way about Americans in general, and perhaps more so about the construction industry – though no one really openly admits it.
    [ read more ]
  • Did You Know...Just How Much The Foundation Does for You?
    From the Chairman
    By Dennis Kruepke
    It's up to you to take advantage of the opportunities they create for your company.
    Recently I had the opportunity to sit down with the AED Foundation staff to get a current actions update. Early in the conversation it became very clear that our Foundation staff is fully engaged and committed to the membership. We are fortunate to have this dedicated team of individuals working everyday to enhance the success of member companies. Their "Four Pillars" initiatives approach is designed to help build our industry image, develop school partnerships, support industry recruitment and provide continuing professional education.
    [ read more ]
  • Common Sense in the Financial 'Twilight Zone'
    Editor's Note
    By Kim Phelan
    Stricter regulation for the finance community may have long-reaching impact on credit for our industry – but sensible standards apparently don't apply to everyone.
    In the face of fragile economic times in the U.S., it's comforting to know that the federal government has still found a way to bail out people who can't afford their mortgages – in fact, they found a spare $1 billion with which to do it. And ironically, HUD is dispersing this free money through a provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act – which I thought was supposed to be cleaning up and actually reforming poor fiscal behavior. (But maybe that's just for the big bad corporate and financial institutions.)
    [ read more ]
  • If You Want Out, You'd Better Get In
    On the Numbers
    By Garry Bartecki
    If you're planning to exit the business in three to five years, you've got to create value by achieving High Profit status – your new Performance Group will get you there.
    Some bankers I spoke with recently painted a pretty bleak picture about the overall deteriorated conditions many dealers have experienced in their retirement funds, their real estate, and – the thing they've poured their lives into most – their companies. The consensus was: Business owners planning to sell the business and retire within the next five years are in real trouble.
    [ read more ]
  • Construction Equipment Demand Still Shines, While Economy Swoons
    Business Outlook
    By Eli Lustgarten
    Despite the U.S. GDP, world production slowdowns, and the July debt ceiling debate, our sales prediction remains on track.
    Déjà Vu – the U.S. economy suffered through another sluggish period as the second calendar quarter of 2011 came to a close. Yes, corporate profits are strong, but most macroeconomic numbers have softened.
    [ read more ]
  • Setting Performance Bars Will Eliminate 'Demotivation'
    Aftermarket
    By Ron Slee
    Go ahead, give product support people the goals – and just watch their morale soar as they kick holes through your net.
    Last month we discussed growing your way out of this malaise in the market. Now let's concentrate on the people who will have a large impact in making it happen – the employees in your Product Support department.
    [ read more ]
  • Pushing the Envelope
    Washington Insider
    By Christian Klein
    AED expands its focus to strengthen equipment markets beyond the construction industry.
    Applying additional resources to AED's work in the nation's capital – in particular, establishing a headquarters office in Washington, D.C. – has allowed us to expand our activities into new policy areas. While continuing to play a leadership role on the core infrastructure, tax, and labor issues that affect our members' markets and costs of doing business, we've also partnered more closely with other natural – but nontraditional – allies on new issues. This, in turn, has expanded the range of equipment markets we're able to positively impact.
    [ read more ]
  • Texas A&M Distribution Expert Presents Best Practices at Forum
    Inside AED
    Dr. Barry Lawrence heads the only distribution research center in the world; armed with new research, he will show executives how to tie proven best practices to their financials.
    Virtually every dealer faces limitations of time, money or other resources. So why not focus on what matters – the best practices that drive profitability. Dr. Barry Lawrence will get to the heart of what's wrong with implementing best practices when he addresses AED dealers during the AED/Lawson Executive Forum, which takes place Sept. 8-9. "Ninety percent of best practices don't fail because of implementation; they fail because we don't measure. We don't tie best practices to our financials."
    [ read more ]
  • Can the Technician You're About to Hire Get the Job Done?
    Groundwork
    AED University introduces online pre-employment technician assessments.
    Your equipment technicians are on the front lines of customer relationship development. Their ability to get the job done, and get it done right the first time, directly impacts your dealership's reputation, customer satisfaction, and overall profitability. That's why it's important to make sure the technicians you are about to hire know their stuff. The AED Foundation can help you assess their technical knowledge with online Pre-Employment Assessments before you make an employment offer.
    [ read more ]
  • Demag Shareholders Accept Terex Offer
    Industry Beat
    Demag to remain autonomous under a Business Combination Agreement.
    Terex Corporation edged one step closer in its takeover of Demag Cranes when it went beyond the minimum acceptance level of 51 percent for the voluntary public tender offer by Terex Industrial Holding AG to all shareholders of Demag Cranes AG. Demag management recommended that its shareholders accept the offer after the U.S. construction machinery maker sweetened its bid. In late May, Demag rejected an € 880 million offer from Terex.
    [ read more ]
  • Reducing Workplace Injury from Falls
    Play It Safe
    By Randy Dombrowski
    A combination of environment controls and corrections, employee training, and management approach will make your dealership safer.
    An employee is using a portable ladder to perform repairs on elevated electrical boxes used for lighting in the service area. While he is standing on the ladder approximately 10 feet in the air, the ladder shifts, causing the employee to lose balance and fall to the concrete floor below. The employee suffers serious internal injuries along with a broken leg and hip. After some investigation, the ladder was found to have bottom rails that were bent prior to the accident, causing instability and resulting in the fall and related injuries.
    [ read more ]
  • Staying the Course
    Best Practices
    By Joanne Costin
    Kirby-Smith Machinery's steadfast commitment to training
    If there's a line item in Kirby-Smith Machinery's budget that probably won't be cut, you can bet that it's "training." At a time when most dealers have cut back on training expenses, this dealer continues to invest, spending more than $1 million in the last 18 months. That works out to about $3,300 per employee for the nine-location dealer serving Texas, Oklahoma, Missouri, Kansas and Illinois.
    [ read more ]
  • Komatsu America Corp. Launches New Hydraulic Excavator
    New & Improved
    Komatsu’s PC290LC-10 hydraulic excavator features a flywheel horsepower of 196 hp, and is powered by a Komatsu SAA6D107E-2 engine that is EPA Tier 4 Interim and EU Stage 3B emissions certified.
    Built upon a proven Tier 3 engine platform, Komatsu has designed an environmentally friendly engine that increases power while decreasing fuel consumption.
    [ read more ]