Issue link: https://read.dmtmag.com/i/101441
Aftermarket Another Year of the New Reality Parts and Service have to perform. By Ron Slee I am struck by the French phrase ���Plus de chose changent plus qu���il restent la meme chose��� ��� which translates: The more things change, the more they remain the same. In the five years from 2003 to 2007 there were 265,258 units sold in the main six categories of heavy equipment. From 2008 through 2012 that number was 149,912. The machine sales activity is similar to the end of the 1990s. We are not in a particularly robust equipment market. Of course there are some exceptions ��� the mining communities have had good activity as have the areas where fracking has been going on. I don���t know of anyone who believes that the equipment market will get back to the inflated levels we experienced just prior to the financial collapse. So this is what I have been calling the New Reality. Equipment sales will be what they are, and if we are to succeed we have to do it through the growth of parts and service, and this will come only through increasing the market capture rates. In order for us to have success we must improve the parts and service operational capability through systems and technology, and talented personnel. Training is an important cog in the personnel arena. One of the changes from those of us who are in the ���old guard��� is that the younger generation of workers is much less obedient than we are. We were taught ��� it was drummed into us ��� to be obedient. The younger worker is taught to challenge the status quo and this is a terrific thing. They challenge us to explain, perhaps defend, why things are as they are. They will not accept something that doesn���t make sense, nor should they. But what on which we perform the maintenance we should get any necessary I truly enjoy is that they force us to be repairs too. I���ll be covering this subject better, and that is a good thing. at Summit as well, Wednesday, 4:15 to In the current economy, the unem5:15 p.m. ployment rate for graduates from This year there is a new option the spring of 2012 is approaching for learning ��� 10- to 15-minute 50 percent. There are lots of oppor���power sessions��� will be held on a tunities to hire talented and ambi���Centerstage��� in CONDEX. I will be tious people. Similarly, we have to covering two important subjects: look at work differently. Perhaps we Customer Retention and Lead Time want to have part-time employees for Parts. There will be a brief introwho are students. Have them work in duction of the subject with slides and the evening from 5 to 9, for example. then we will encourage lively discusWork with a technical school or with sion. I am sure this will be an exciting the technical studies team in a high addition to the annual convention. school and offer work to students. January is a challenging time for You will gain knowledge about what many people. I love it. It is like a they can do and they will gain experebirth, a chance to make a differrience and some money. Mark my ence; a time to strive to improve words, personnel will be much more operations, skills, and performance. the differentiator in the future than I wish you all the best year of your it has been in the past, and there is lives ��� as well as the most productive, a serious shortage of skilled people and the one in which you become coming along. a better person than you thought At the Summit this month in Las you could be. Everything is possible. Vegas I will be addressing the New You see, that is the corollary to the Reality and covering what I call ���The New Reality: We can and should Critical Few.��� n Market Coverage expect more from ourselves. Parts n Buying Habits and Service must meet this challenge. n Inventory Management The time is now. n Expediting and Purchasing n Transportation Logistics n Technology Ron Slee (ron@rjslee.com) is the founder of R.J. Slee & Associates, Rancho Mirage, This is from 3 to 4 p.m. on Calif., celebrating more than 30 years in Wednesday, Jan. 16. business in the United States, a consulting The critical element that many firm that specializes in dealership operations. dealers either overlook or ignore is Ron also operates Quest Learning Centers, maintenance. With the arrival of the a company that provides training services Tier-4 engine the costs to the end specializing in product support, and Insight user of not performing maintenance (M&R) Institute, a company that operates becomes prohibitive ��� for dealers that are on the ball and so inclined there is and facilitates ���Dealer Twenty��� Groups. Fola huge opportunity to be realized. We low Ron on Twitter: @RonSlee; and read his blog at learningwithoutscars.com. have to remember that for machines January 2013 | Construction Equipment Distribution | www.cedmag.com | 73 73_aftermarket_KP.indd 73 12/21/12 2:42 PM