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June 2013

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From the Chairman President & CEO - TOBY MACK Associated Equipment Distributors Oak Brook, Ill. Where Will Technology Take Us? Executive Vice President & COO Robert Henderson Associated Equipment Distributors Oak Brook, Ill. As distributors, we have an incredible opportunity to be our customers' go-to source for working more efficiently. Officers Chairman - mike quirk Wagner Equipment Co. Aurora, Colo. Vice Chairman - Tim Watters Hoffman Equipment Co., Piscataway, N.J. Sr. Vice President - Don Shilling General Equipment & Supplies, Inc. Fargo, N.D. Vice President - Rick van exan Toromont Industries Inc. Concord, Ontario Vice President - whit perryman Vermeer of Texas Inc. Irving, Texas Vice President of Finance Michael D. Brennan Brandeis Machinery & Supply Co., Louisville, Ky. Past Chairman - Larry Glynn CMW Equipment St. Louis, Mo. At-Large Directors ron barlet Bejac Corp. Placentia, Calif. Paula Benard C.N. Wood Co., Inc. Woburn, Mass. Gregg R. Erb Erb Equipment Company, Inc. Fenton, Mo. Dennis J. heller Stephenson Equipment Inc. Harrisburg, Pa. Mike Rooney Thompson Tractor Co., Inc. Tarrant, Ala. Michael J. Savastio Groff Tractor & Equipment, Inc. Mechanicsburg, Pa. Regional Directors Bruce A. Bowman Upper Midwest Reg. Star Equipment, Ltd Des Moines, Iowa gary frelick Western Canada Reg. Douglas Lake Equipment Langley, BC Patrick McConnell, West Reg. Clyde/West, Inc. Portland, Ore. christopher palmer Northeast Reg. Wood's CRW Corp. Williston, Vt. Mark Romer, Southeast Reg. James River Equipment, Inc. Ashland, Va. Jeffrey Scott Rocky Mountain Reg. Intermountain Bobcat Salt Lake City, Utah Rick Van Exan Eastern Canada Reg. Toromont Industries Ltd. Concord, ON gary D. Vaughn South Central Reg. OCT Equipment, Inc. Oklahoma City, Okla. 5_fromthechairman_KP.indd 5 By Mike Quirk I'm quite sure that everyone is aware that it is virtually impossible to escape technology today. We are bombarded by it everywhere we turn. Recently, I was depressed to see a three-year-old have her afternoon ruined when her five-year-old playmate was blazing through the various applications (Apps) on her mother's iPhone. The younger child's mother also had an iPhone but was not ready for her child to go there yet. She was understandably upset and the afternoon outing came to an early end. Frankly, I don't know which was worse for me: Seeing the younger child's disappointment or the fact that the five-yearold could run circles around me on the device. Most of the advances in technology produce far better outcomes. Not long ago, one of our employees told me that she cannot understand why so many people complain about computers. She has worked for us for 30 years and she proudly states that she can do 10 or 20 times more work today because of our systems and processes. On my way home, I pulled up to a red light. Almost as fast as I came to a stop I tripped a device that changed the light to green. I smiled and thought: How good it is to be the AED Chairman! Later that day, I picked up the paper and read in an article that the auto industry's top technologists believe that we are only a few short years away from new cars that will be able to navigate stop-and-go traffic by themselves. Computers will soon control our vehicles at highway speeds and fully autonomous vehicles may roam the roads in significant numbers by 2025. That would mean that we could text and answer e-mail while commuting. Something tells me, however, that by then those two means of communication will have gone the way of the "Brick Phone." So, the logical question is, "where will technology take the equipment business?" We have already developed machine and blade control on earthmoving machines. GPS-guided systems take the guesswork out of compaction as well as concrete and asphalt paving. Engines report their own vital health information from afar, while agriculture tractors and implements literally steer themselves when tilling, planting, and applying fertilizer down to 1.5-inch accuracy. Through technology, our customers enjoy greater safety, productivity, and higher profits. We all benefit from significantly reduced impact on our environment. The same technologies that will enable the automotive industry to take the next steps are finding application in our equipment world. We will almost certainly see autonomous haul trucks, trenchers, dozers, and excavators that are programmed to follow a predetermined route, contour design, or trench depth and distance. Who knows where we go from there? I think that a better question for AED member companies is, "Where will we take technology?" If we are smart, we will find every way possible to add value to the technology. We all cut our teeth on being able to speak eloquently about the features and benefits of our products, and this should be no exception. The dealer should take every step to be the customer's resource, working to ensure they get the most benefit from this and other exciting technologies – and thus ward off potential third parties who might try to carve a niche and operate in that space. Finally, we should look to where technology will bring value to us. As the level of sophistication of our products ramps up, so does the attractiveness of our industry to a whole new generation of potential technicians, equipment professionals, and commercial opportunities. Count on AED as a primary resource to help identify and develop these opportunities along with the training and expertise needed to operate in the fast lane! Mike Quirk (mquirk@wagnerequipment.com) is vice president of Operations at Wagner Equipment Co., Aurora, Colo. June 2013 | Construction Equipment Distribution | www.cedmag.com | 5 5/31/13 11:49 AM

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