Issue link: http://read.dmtmag.com/i/205815
From the Chairman President & CEO - TOBY MACK Associated Equipment Distributors Oak Brook, Ill. Why Are You So Special? It's Obvious Executive Vice President & COO ROBERT HENDERSON Associated Equipment Distributors Oak Brook, Ill. OFFICERS Chairman - MIKE QUIRK Wagner Equipment Co. Aurora, Colo. Delivering product support excellence is what we do – use AED's latest report to raise the bar even higher. 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. BY MIKE QUIRK As we rapidly approach the end of another year, we find ourselves headlong into the fall planning process for the upcoming year. While 2013 is not yet in the can it looks like we will have done pretty well in spite of lingering stiff economic headwinds and more uncertainty than I would ever like to operate in. While traveling around Canada and the U.S. this year I have found those involved in our industry to be engaged and upbeat. It kind of reminds me of interviews with race car drivers after a big wreck or a bull rider waiting his turn at the rail. If this is the new normal it has become a more exciting "normal." If 2013 is the test, we have passed it. In spite of an economy that remains stuck in low gear, the twinkle seems to have returned to the eye of the equipment world. That part feels pretty good. The new machine sales industry has continued to recover. The primary reason for this is that the rental segment is strong and most of us have increased our inventory and upgraded our fleets to meet demand and balance the age of the fleet. Rental demand will remain strong at least until consumer confidence improves to the point that our customers will reinvest in their own fleets. That will likely still be a ways down the road. Also, some geographic areas require Tier-4 equipment, driving some new machine sales. Overall, architectural demand has increased and construction forecasts indicate continued growth in both residential and commercial construction for most of North America. That is really good news for our industry. If you operate in a region with natural resource development you have seen strong engine sales and construction activity. Mining has once again proven to be perpetually cyclical. Although it has cooled off due to decreased global demand and relentless government regulation, it still has some activity. Fortunately, our equipment distribution channel is as strong today as it has ever been. Manufacturers are committed to the model, and, whether it is by default or design, they value the dealer and the people who make up the dealership. There are at least two major reasons for this. They are obvious. First, ours remains a relationship business. We are on the ground with our customers. We are local and unique. The second is our commitment to product support. These relationships, along with our parts access and service capability are the heart and soul of our business. They are key elements to our profitability and the success of our customers. They are what make you so special. AED has kept their eye on the ball. They recognize that product support is centric to the overall success of a dealership. The association provides numerous webinars and onsite educational events for our employees in these areas of our business. There are several sessions covering a variety of topics still available to you in November and December, and parts and service programming will of course be on the agenda at the upcoming Summit in Houston – just two months from now. Soon to be released is the latest edition of AED's "Product Support Opportunities Handbook," containing brand new research that concentrates on key customer trends and demands relative to dealership parts and service departments. This report will allow dealership personnel to identify key indicators for performance standards that are specific to the parts and service areas. Every AED member dealer should acquire this relevant data when it becomes available at the end of this month. Click on aednet.org/products to order your PDF after Dec. 1. Remember, if this business were easy, anyone could do it. I for one am glad that we still have a lot to look forward to. MIKE QUIRK (mquirk@wagnerequipment.com) is vice president of Operations at Wagner Equipment Co., Aurora, Colo. November 2013 | Construction Equipment Distribution | www.cedmag.com | 5