Issue link: http://read.dmtmag.com/i/141668
Market Update ("Tier Fear, Are Dealers Ready? Or Not?" continued from page 25) " We have some good major support them. We won't ship to a equipment dealers...but I distributor who has not been trained." Smith has no qualms about the think equipment dealers readiness of dealers to embrace the are like any other business: Tier-4 Final equipment. "Everybody is Some will be ready and on board. It is the future and we are into it." some will never be ready. Caterpillar Commercial Manager, Large Power Systems, Doug Mihelick says Cat dealers are "wrapping up" their preparation for servicing the larger Tier-4 Final engines, which begin to be affected by EPA regulations in January. For engines in the 75-175 hp range, which come under EPA scrutiny later in 2014, "preparation Ryan hasn't had any conversations with dealers about the to support those products is probably better described as in final generation of engines. "I've been too busy dealing with process," he said. Tier-4 Interim issues." Milhelick notes that Cat corporate executives monitor The Minnesota Department of Natural Resources is a training and parts progress at dealerships to ensure readinatural ally of cleaner engines in construction equipment. ness whenever new equipment is introduced. "This prepara- When Ken Hemp became the department's fleet operations tion is consistently completed in advance of the arrival of the coordinator in 2004, he began to systematically replace first production machines in the market." older and misfit equipment that was almost Introduction of Tier-4 Interim engine systems has been exclusively "dirty diesels." "very successful," Mihelick says, and for that he gives credit He soon stipulated that engines must be to Cat dealers and the company's field organization. "They Tier-3 compliant and rejected bids when did a wonderful job of preparing for Tier-4 Interim products they weren't. His standard for the fleet now and we are confident that Tier-4 Final will be no different." is Tier-4 Interim, and he just ordered a John Deere 444K wheel loader that meets Customer Dissatisfaction that requirement. Ken Hemp However, some customers of heavy equipment dealers want et his experience with tiered emisY it to be different this time. The Tier-4 Interim introduction sion systems service is mixed. A fleet of highway trucks left much to be desired, they indicate. purchased by the department has suffered recalls because "Our problems have been significant with Tier-4 Interim of after-treatment system failures, resulting in lots of equipment," said Chris Ryan, vice president for equipment downtime. As for dealer support of department dozers, at Boh Brothers Construction, New Orleans. "It may sound excavators, road graders and the like – represented by strange, but I am hoping that, with additional experience, such manufacturers as Caterpillar, Deere, Case, Terex, and Tier-4 Final will be better." Champion – Hemp characterizes it as "reactionary." Boh has some 1,500 pieces of numerous brands of "I would say the vendors are having a hard time keepequipment in its yards. After-treatment sensors have been ing up," Hemp said, "or manufacturers are not providing a special headache, and some difficulties have arisen about the training to them. If we have a problem, the local John a shortage of parts on dealers' shelves. (Also challengDeere, or Cat, or Case dealer, or whatever, may have one ing is something dealers can do nothing about: changing or two people trained to fix the problem; if we can't get the culture of equipment operators, who tend to want to that person, there is a lot of guesswork. I hesitate to blame bypass emissions systems if they can, though that can void [dealers] because I really don't know that they are unwilling warranties.) to get trained." "We have some good major equipment dealers in the The department operates four mechanical shops where Southeast, but I think equipment dealers are like any other technicians attempt to be conversant enough with the new business: Some will be ready and some will never be ready," technology to do initial diagnostics. "But we really rely on said Ryan. He adds that the Boh maintenance shops are the the vendors. Our goal is to keep our people aware enough "first line of defense" in keeping Boh equipment operating. so that they know when to call for help," he said. "If all fails, we call in the dealers." Hemp added that, from conversations with peers in other " 26 | www.cedmag.com | Construction Equipment Distribution | July 2013 22_Tier4_Feature_KP.indd 26 6/27/13 12:52 PM