Finding the Right Finance Partner for Your Construction Business

Finding the Right Finance Partner for Your Construction Business

November 26, 2021

Financing companies talk about partnering with clients. They all say it matters. They all say they’re really good at forming solid relationships. But does finding and selecting the right financing partner really matter to construction businesses?

The short answer is a resounding “yes.” Selecting the right financing partner can make or break a business.

The right financing partner will have the resources and expertise in construction equipment the business needs. That partner will integrate into and be committed to the success of their client. This isn’t just for altruistic reasons; when both the client and partner realize success, they both achieve more and grow more.

5 points to consider when choosing a financing partner

Choosing the right financing partner can make a measurable difference in the life of your company. Every business and every financing company is different, but the points below are good indications that you are on the right track in choosing an effective partner.

It’s not all about pricing. A true partner is in it for the long term – literally, in good times and in bad – and is looking for a long-run relationship rather than a one-time transaction. Moreover, you typically will be working with a finance company for a long time – hopefully, for the life of your business. For that reason, you need a relationship that’s more than transactional.It is about information. Good partners will have in-depth questions about your business, your equipment, your goals and your process. They will want to meet in person, in a Zoom meeting and/or over the phone – on an ongoing basis. Keeping up-to-date with you and your business should be a commitment you hear early on from any financing company you meet with.They will push to talk with the right people. A partner that wants to understand your business will work to make sure they meet with the people within your organization who know your processes and who make decisions. They will spend time learning your business, while valuing your time and their own.The average tenure of a business relationship with clients is measured in years. A partner that approaches business from a long-term perspective, versus one that is based on volume and quotas, often works in the best interest of not only itself, but its clients. Ask about the financing partner’s average tenure with clients. Good ones may be three times the industry mean.They won’t be afraid to call out problems or concerns, and challenge decisions. Remember that a real partner is as committed to your success as you are. It’s not about being a “yes man.” They want to learn about your business challenges and then identify financing solutions that can help solve said challenges. Financing is not a one-size-fits-all product; make sure any financing company is tailoring its offerings to meet your needs.

The consultative approach

Companies may hear about financing companies taking a “consultative approach.” But what does that really mean? And is it the best approach?

The consultative approach to business engagement refers to the commitment to learning about clients’ businesses and business models before ever suggesting a financing method or program. Instead of a commodity solution, a consultative approach will result in recommendations that help you achieve your short-term as well as long-term goals.

The approach also works from a position of expertise. A consultant, by nature, is someone with expertise and experience in their field. Working with a financing partner who has experience working in the construction industry, and/or running, a business means they can think like you do. It also means they can think ahead and know the likely challenges you will face. That external perspective – a hallmark of the consultative approach – contributes important knowledge that can help a business stay on track or pivot when needed.

As the financing partner becomes more and more knowledgeable about your company, they can become an extension of your business. In return, you will gain more and more confidence that they’ll deliver what and when they say.

Partner resources

Most of the time, a financing partner will be able to provide financing solutions for your business. However, there are times when a company needs other resources. A good financing partner can be invaluable in these situations, which could include:

Personnel, experts: Perhaps what a business really needs is an interim CFO, a CPA with international experience or a strategic advisory board. A good partner with deep connections in the industry will be able to help with strong referrals and connections.Customized financing programs: Many financing companies will work with generic rates for different industries. While that can be a good place to start, a partner will determine what’s really right for your business and suggested a specific, often-customized, program.Business financing: As economies work to recover from the pandemic, many businesses are finding they need different and additional help to fund the growth they’re experiencing from pent-up demand. A strong financing partner could analyze and provide alternatives, whether it’s a line of credit supported by account receivables, equipment refinance or funding the ramp-up of inventory.

Often, the partner will be able to identify a company’s real needs, looking at a situation through the lens of experience and expertise. Other times, the business will know its needs, but not realize that a financing partner – versus a commodity lender or bank – can help. In times like those, working with a knowledgeable partner makes running and growing the business much easier.

Ivan Franklin, vice president – construction, vendor services, Mitsubishi HC Capital AmericaMitsubishi HC Capital AmericaShared vision, shared success

Solid financing partners are committed to a shared vision and shared success, and to building trust. Any of us who can surround ourselves with people as committed to our success should count ourselves as fortunate. In choosing the right financing partner, a construction business will find additional expertise, resources and flexibility to grow their business efficiently and effectively.

Ivan Franklin is Vice President – Construction, Vendor Services, at Mitsubishi HC Capital America, a provider of financing solutions that are tailor-made for the construction industry.

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Cat Expands it Remote-Control Command D5, D6, D7 Dozers

November 24, 2021

Cat D5, D6 and D7 dozers have now joined wheel loaders and excavators as Cat Command machines. Command for Dozing removes operators from the cab and gives them the ability to operate the machine using either a line-of-sight, over-the-shoulder remote console or a non-line-of-sight station.

“We now have the broadest range of remote-control offerings in the industry between our product line and our two scalable offerings of the Cat Command station and console,” says Mike Lenzie, product marketing consultant.

By getting operators out of hazardous environments, Cat says its Command system promotes safety, increases production and helps attract and retain skilled operators. “We can always replace the machine, but we cannot replace the person,” Lenzie says.

Applications where Command could offer safety advantages include steep slopes, underfoot conditions that are so soft the machine could potentially sink into the ground, demolition — especially when there’s the chance of falling debris and working around hazardous materials.

Using the Cat Command station, operators can switch between three different types of Command-enabled machines.CaterpillarBecause operators can easily switch between Command-enabled machines in the Cat Command station, users can see increased productivity. “They can be operating one machine and then with a touch of a button operate another piece of equipment,” Lenzie says.

Cat’s next-generation D5, D6 and D7 come remote ready from the factory; dealers can quickly install remaining components in the field. The Command components are fully integrated with the machine’s electronic and hydraulic system.

As previously mentioned, Command for Dozing comes in two versions:

The console provides access to all dozer functions and supports assist technologies such as traction control, AutoCarry and stable blade. Operators can switch between Command-enabled machines by changing out an RFID chip. Using the console, operators can control a Command dozer up to 437 yards away. The machine shuts down if the remote shutdown switch is pressed, wireless communication is lost or the console is tilted more than 45 degrees.The non-line-of-sight station, where the operator can be in a climate-controlled environment and control the dozer from close by or several miles away. Station controls operate all three types of Command machines – dozer, excavator and wheel loader – and feature pedals, joysticks and an adjustable seat. Multiple screen displays offer visuals from the left and right dozer cutting edges, blade top-center and rearview/ripper. In addition to the assist technologies offered on the console, the station is compatible with blade load monitor, slope assist and Grade with 3D.

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Sany Enters U.S. Backhoe Market with “Fully Loaded” SLB95

November 23, 2021

“Fully loaded.”

That’s what Sany America wants you to remember about its newest U.S. entrant, the SLB 925 backhoe.

The machine with a 14-foot 3-inch dig depth offers these features as standard:

4WD power-shift transmission with limited slip differential.Load-sensing hydraulics with pilot controls and ISO/SAE pattern changeBoom float, return-to-dig and breaker lineFlip-over pads, outrigger cylinder guards and front bumpersEight LED working lights, rotating beacon, traffic lights and air suspension seat

“The features we are offering as standard can cost more than $7,000 on competitive machines,” says Juliano Silva, Sany America product manager. A heavy-duty bucket with side cutters also is standard. Four-in-one bucket and extend-a-hoe options are currently being tested.

The backhoe made its debut at the American Rental Association show and is slated to be available in spring. The specs fit the rental market, says Silva, “but it’s going to deliver a lot more breakout force. We went with a 95-horsepower engine instead of a 74-horsepower engine to have a single product to fit most of our customers, including city, state and federal governments, as well as general contractors. These guys don’t look for a 74-horsepower machine.”

Sany is also considering adding electro-hydraulic controls, but first, “we want to make sure they are something operators actually use,” Silva says.

Why a backhoe?

Why enter the mature backhoe market, one that’s gotten its share of dings as the combination of compact excavators and skid steers/compact track loaders has gained favor?

“We know it’s a stable market,” says Gabe Weiss, Sany America marketing director. “It also gives Sany an opportunity to have more of a full brand offering. It’s another tool in our quiver. We’re looking at it from a growth in brand recognition.”

And as with other Chinese OEMs, Sany points out that its products are global machines with components sourced from around the world. “It’s really about the support and the commonality of what’s under the hood,” says Weiss. These include Deutz engines which Sany also uses in its telehandlers and wheel loaders ZF transmissions and axles, Kawasaki pumps and Carlisle braking systems.

Sany is targeting both North and South American markets with the backhoe and put more than 1,000 hours on four prototype machines. “What is needed in both markets is very close,” Silva says. “We put a lot of effort into keeping the machine simple.” Field testers specifically asked for spacious cabs; rental customers focused on machine serviceability and reliability. And Sany knows owner/operators another backhoe market staple are focused on digging power, Silva says.

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Chevy Unleashes “The Beast”: A 650-Horsepower Supercharged Pickup Truck

November 20, 2021

Chevy has unleashed the Beast.

Debuting at SEMA, the 650-horsepower desert runner is built on a Silverado chassis and features tubular doors, a lightweight clamshell-type front end and a widened 91-inch track supported by high-performance suspension.

“The Chevy Beast concept takes the popularity of high-performance off-road trucks to the next level,” said Jim Campbell, GM U.S. vice president of Performance and Motorsports. “It’s a vision for a new dimension of Chevrolet Performance capability from a brand that’s been pioneering performance and supporting customer personalization for more than 50 years.”

Engineers started with the chassis of a Silverado short-bed model and modified it for high-speed desert running. The frame was shortened. A custom-designed, 4130 chromoly tubular safety structure was integrated, while the modified chassis was wrapped with a custom, lightweight body.

A Chevrolet Performance LT4 6.2L supercharged V8 that’s rated at 650 horsepower is bolted to a 10L90 10-speed automatic transmission that sends torque to a two-speed transfer case and distributes it to 37-inch-tall off-road tires mounted on 20-inch beadlock wheels. The concept also includes the Chevrolet Performance Big Brake Upgrade System.

A Chevrolet Performance LT4 6.2L supercharged V8 crate engine powers the Beast.ChevyFront suspension comes courtesy of concept upper and lower control arms and fully adjustable racing strut assemblies with remote reservoirs. The rear is treated to concept 5-link suspension with Panhard bar and fully adjustable racing shocks with remote reservoirs. Disc brakes are mounted at all four wheels and include Chevrolet Performance Brembo brakes equipped in the front with six-piston calipers.

A pair of spare tires are mounted in the bed while the rear of the vehicle itself is left open to help extract dust. Additional unique design cues include a custom front grille, front and rear bowtie emblems and off-road lighting from Baja Designs.

Inside, the customized cab has a minimalist, functional design, featuring a quartet of Recaro performance seats with four-point harnesses, as well as a pair of 7-inch-diagonal LCD screens that monitor vehicle functions and performance data, including pitch and roll during off-road driving scenarios.

“There’s nothing else like The Chevy Beast,” said Jeff Trush, GM program manager, Pace Car and Specialty Show Vehicles. “It delivers a ton of performance and capability, which makes it adept at conquering rough terrain — and it flat-out flies in desert running.”

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How Custom-Painted Equipment Can Boost Your Marketing

November 11, 2021

Construction equipment gets its fair share of head turns while operating or parked on the side of the road. But custom-painted equipment? Those are real neck breakers.

Not only do custom-painted machines look slick, owners say there are numerous marketing benefits too.

Having a professionally branded fleet with a unique color scheme is like having a billboard at every job site. The use of the right color can boost your brand recognition by 80 percent, according to a 2019 survey released by Reboot.

We talked to several contractors with custom-painted fleets to see how the unique paint job has given them an edge.

Here areareas where they’ve seen results, and a few drawbacks to consider:

Marty Lenum’s bright red equipment is hard to miss.Dirt Monkey Excavating

Increased Brand Awareness

Painting your fleet a custom color can create some serious buzz in your community and attract potential customers. With word of mouth still considered a top marketing tactic, a flashy fleet can help increase the frequency of organic conversations about your company.

“Everyone knows it’s us at the job sites,” says Marty Lenum, owner of Dirt Monkey Excavating based in Cashton, Wisconsin. “Branding is a top priority when it comes to building our business, and our fleet is a critical part of that.”

Lenum’s dealer Fabick CAT coordinates the painting of his signature red equipment.

“Why be like everybody else,” says Kimo Clark. “Make people curious about your brand.”Truth Excavation

Stretch Your Marketing Dollar

Is your brand the opening act or the headliner? Making your brand the star of the show helps your marketing dollars go further. Billboards and digital ads have a shelf life, but painted equipment is permanent.

“When I was in a band, I learned that gaining a following is all about self-promotion. I took that experience into the heavy equipment world because nobody was really doing branding or creative videos around 2012,” says Kimo Clark, owner of Maui, Hawaii-based Truth Excavation.

“As soon as I get new equipment, I take the decals off, paint it green and put our name on it. I consider it a marketing expense. A memorable company name paired with painted machines and great photo and video content makes a super-brand.”

In addition to painting your fleet, Clark says, look at the content being created in other industries, like surfing and skateboarding, for inspiration. Marketing for your construction business doesn’t have to be stuffy and boring. Make it fun and memorable.

Stop them in their feed. Custom-painted equipment can help catch the attention of your future workforce on Instagram or TikTok, says Dane Cotten.DC Excavation

ttract New Employees

Custom-painted equipment may also garner the attention of your future workforce. A millennial himself, Dane Cotten, owner of Bozeman, Montana-based DC Excavation, knows that branding, storytelling and a solid digital presence are critical factors in attracting the tech-savvy younger generation. Case in point, a video showing off his newly painted D6 received tens of thousands of views and likes on Instagram alone.

“Our black equipment with the old school CAT decals is a differentiator,” says Cotten. “It has helped us attract employees. Operators want to run the latest equipment, and the unique look doesn’t hurt either. Anybody can have equipment, but custom-painted equipment gets recognized and remembered.”

Cotten thinks more OEMs should offer factory-direct custom paint options due to the increasing importance of branding in the industry.

The Downsides to Painting Your Equipment

While none of the contractors we spoke to listed any drawbacks, here are a few you may want to consider.

Additional Expense

A custom paint job will set you back several thousand dollars. Owners should weigh if the cost is worth the potential benefits.

Issues When Selling

When selling or trading in equipment, some buyers may ask you to repaint the machine to factory colors. Just like that, more money has walked out the door.

Quality Control

Not all paint jobs are created equal. The technology and materials used to paint the machine by a third party may not be to the same quality standards as the factory. Premature peeling and chipping may occur.

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Vaccine Mandate Halted; Appeals Court to Review

November 9, 2021

A federal appeals court has halted the Biden administration’s vaccine mandate for businesses that employ 100 or more workers, so the rule can be reviewed.

The court’s stay of the mandate comes two days after the White House announced that employees of companies with 100 or more workers must be fully vaccinated by January 4 or wear a mask in the workplace and show negative Covid tests weekly. The mask requirement for unvaccinated workers was to take effect December 5.

Those filing the petition November 5 for review of the U.S. Occupational Safety & Health Administration’s emergency temporary standard include Trosclair family-owned supermarkets and businesses in Louisiana; the states of Louisiana, Texas, Mississippi, South Carolina and Utah; and various other businesses and groups. The Trosclairs are being represented by attorneys from the Liberty Justice Center.

Their petition states that the mandate exceeds OSHA’s and Congress’ authority. It adds that the Louisiana supermarket chains, which include Ralph’s Market, Butcher Boy and Save A Lot, employ about 500 workers. The mandate would adversely effect the company because it already faces a worker shortage, and the mandate “would make it even harder to hire and keep employees,” the petition says. That would also “diminish their ability to provide grocery options to the citizens of Louisiana.”

The petition also includes Texas workers of CaptiveAire Systems, which has 1,500 employees. They will be adversely affected because the mandate “will force them, against their will, to show their employer proof of Covid-19 vaccination or risk losing their jobs and livelihoods if they choose not to.” The testing and mask alternative would also be especially unfair and illegal for some of the employees who work mostly alone on roofs “and are highly unlikely to spread Covid-19” to coworkers and customers.

“Therefore, OSHA’s claimed authority over their private lives and vaccine status is an egregious government overreach,” the petition says.

The petition asks for the court’s review and to grant an emergency stay.

On November 6, the 5th Circuit U.S. Court of Appeals, based in New Orleans, granted the stay.

“Because the petitions give cause to believe there are grave statutory and constitutional issues with the mandate, the mandate is hereby stayed pending further action by this court,” the court’s order says.

The vaccine rules were issued November 4. Along with the vaccine or mask and testing rules, it requires employers to provide paid time off for workers to get vaccinated and recover from any side effects from the shots. It does not, however, require them to pay for workers’ weekly Covid testing.

For that reason, the Biden administration argues that workers have a choice on whether they get vaccinated and that “there have been no ‘mass firings’ and worker shortages because of vaccination requirements.”

In a statement, Biden said vaccines have long been required in the U.S. “We’ve been living with them throughout our lives for all sorts of diseases. Safety rules in the workplace are nothing new either. We require hard hats in construction sites and safety goggles in labs. And with today’s actions, we now have requirements to protect people from something that has taken the lives of 750,000 Americans.”

Meanwhile, construction associations have come out in opposition to the mandate.

Ben Brubeck, vice president of regulatory, labor and state affairs for the Associated Builders and Contractors, says it “is likely to increase compliance costs and cause regulatory burdens that will exacerbate several headwinds facing the construction industry – which is currently facing a workforce shortage of 430,000, escalating materials prices and supply chain bottlenecks – and the American economy.”

The mandate also creates confusion within the construction industry and will lead to workers at larger construction firms quitting to work for companies with fewer than 100 workers to get around the mandate, according to Stephen Sandherr, CEO of the Associated General Constractors. “This is something many workers will easily be able to do in a labor market where nearly 90 percent of construction firms are having a hard time finding workers to hire,” he says.

Sandherr says AGC has advocated vaccinations, and instead of mandates, the administration should focus on “providing additional resources and support to encourage workers to do the right thing.”

The federal government has until 5 p.m. November 8 to respond to the petition, and the petitioners have until 5 p.m. November 9 to file any reply, according to the Appeals Court.

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Road Projects Feel the Pain of Congress’ Last-Minute Funding Extensions

November 1, 2021

Construction, engineering and transportation groups are frustrated by the House once again delaying a vote on the $1.2 trillion infrastructure bill and also having to enact another short-term extension of federal transportation funding.

“Repeated month-long extensions of the federal funding programs for transit, roads and bridges mean that cities and states cannot move forward with critical transportation projects,” says Tim Smith, executive director of the American Society of Civil Engineers.

On Thursday, a House vote on the Infrastructure Investment and Jobs Act was delayed after negotiations among Democrats broke down. The House did, however, extend transportation funding until December 3. The funding was set to expire October 31 after a previous 30-day extension.

Meanwhile, construction and related industry associations are becoming more frustrated, not only at the inability to pass the infrastructure bill but at leaving states in a lurch with last-minute, temporary extensions.

A recent survey of departments of transportation around the country revealed that many DOTs face uncertainty with planned road and bridge contruction projects because of the temporary extensions.

In the survey, conducted by the American Association of State Highway and Transportation Officials, the Kentucky Transportation Cabinet commented:

“Over the next four months, KYTC has over a quarter of a billion dollars in projects scheduled for construction lettings. Without the certainty of full federal-aid highway funding, many of these projects could be delayed until federal funds are in hand.”

The Alabama Department of Transportation reported that a lack of long-term funding would ripple through the state’s economy:

“The impacts of a short-term extension are not just project-related; it also increases labor, construction and material costs affecting ALDOT and its contractors, consultants, material suppliers and Alabama citizens who work for these businesses. Many of these businesses and employees are still struggling to recover from Covid-19-related effects, and the postponing of work a short-term extension generates is profound and unfortunate.”

Transportation funding almost expired

The Senate passed the Infrastructure Investment and Jobs Act in a bipartisan vote August 10.

But since it moved to the House, progressive Democrats have been using the bill as leverage to try to pass the Build Back Better Act. That bill started with a $3.5 trillion price tag that includes such things as pre-kindergarten, expanded health care coverage and environmental initiatives.

At the same time, almost every Republican in the House plans to vote against the infrastructure bill, despite 19 Republicans supporting it in the Senate. They call the infrastructure bill a “Trojan horse” to try to ram through the BBB Act.

As the political bickering and negotiations continue, state departments of transportation – and those who build roads and bridges – around the country were three days away from seeing federal transportation funding expire and 3,700 USDOT employees furloughed. That’s because a last-minute extension enacted earlier this month was set to end October 31.

“Legislators cannot continue granting extensions from month to month using funding estimates from the previous decade without causing uncertainty for workers and business owners in the communities they are elected to serve,” says National Asphalt Pavement Association President and CEO Audrey Copeland.

What’s next?

President Joe Biden and Democrats in the House and Senate continue to hammer out the details of the Build Back Better Act.

Biden scaled back the proposal Thursday from $3.5 trillion to $1.75 trillion in the hopes of satisfying moderate Democrats while also keeping some of his priorities and getting the infrastructure bill to his desk.

Progressive Democrats still want the House to vote on the BBB Act and the infrastructure bill together. They also say they need to see the text of the reduced BBB Act before voting on it.

Congress now faces a December 3 deadline for federal transportation funding. That’s also when the federal debt ceiling needs to have been extended, or the government could default on its debt.

Congress is expected to return to session Monday.

The Associated General Contractors of America’s CEO, Stephen E. Sandherr, called on progressive Democrats and Republican leadership to consider the infrastructure bill outside the lens of partisan politics and think of its impact on an economy still emerging from the pandemic-induced slowdown.

“It is extremely disappointing that some progressive Democrats and the Republican leadership would again delay passage of a much-needed infrastructure bill,” Sandherr said. “This legislation will provide investments that will make our fragile supply chains more efficient while providing a needed boost to economic growth and employment levels.”

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Inside the Ritchie/SmartEquip Deal: What Happens Next?

October 27, 2021

When Ritchie Bros. Auctioneers acquired SmartEquip for $175 million in September, Ritchie CEO Ann Fandozzi said it would give Ritchie “asset-specific full-lifecycle parts and service support” to dealers, OEM partners and equipment buyers.

Of equal importance as SmartEquip considered suitors was continuating its multi-brand approach in the construction industry, says Alex Schuessler, SmartEquip founder and president, international group, talking with Equipment World.

SchuesslerSmartEquip”There was a lot of interest from other industries and private equity firms, but what really drew us to this partnership with Ritchie was a continued commitment to our existing customer base,” Schuessler says. “It was important for us to preserve industry neutrality. It took us a long time for our customers to feel comfortable that we were truly neutral, so that was absolutely critical going forward.”

In turn, SmartEquip, which provides software to support equipment lifecycle management, gives Ritchie a play on the parts, service and maintenance side of things, says Jim Kessler, president and COO, Ritchie.

“We knew how long it would take us to do this on our own and replicate what SmartEquip has already built,” Kessler says. “So for us it was the perfect match. We had customers who need this service and we weren’t able to provide it; it was an open hole for us. We know what the equipment is. We know where it is in the life cycle, how many hours on it, but we weren’t helping in that part of the value chain.”

But Kessler also emphasizes that the SmartEquip deal doesn’t mean it is in the parts stocking business. Rather, Ritchie is looking to add customer ease and value, he says.

“The magic in all of this is the equipment life cycle, and Ritchie has done phenomenal work in focusing not just on the moments that equipment changes ownership, but also what you do to support the equipment owners, dealers and manufacturers,” Schuessler says.

Hidden owners

This especially comes into play with second and third owners of a machine where perhaps dealers and OEMs lose track of them. “We were looking at ways of ensuring that they have a longer view across the equipment life cycle and across the number of owners,” Schuessler says.

“We’ve long been aware that there are tremendous opportunities there with that second, third or fourth owner,” Schuessler says, “and it’s been frustrating because we’ve had no systematic way of supporting them. I think we’ll be able to help both equipment owners and dealers right off the bat.”

The trust built between SmartEquip and its dealer and OEM customers has been hard fought, Schuessler says. The firm began in 2000, right on the heels of the dot-com craze when everything was about reducing the number of intermediaries in a transaction.

“That’s not at all what we wanted to do,” Schuessler explains. “We wanted to bring efficiency to the relationships of dealers and OEMs on one hand and the fleet owners on the other.” In the process, SmartEquip gave OEMs and dealers a systematic way to tie in deeper into the life cycle and go into those second and third owners. “Now with Ritchie we can automatically do this together, and we can offer it straightaway,” he says.

For the foreseeable future, SmartEquip will continue to operate as a standalone business headquartered in Norwalk, Connecticut.

Both companies have a global footprint. SmartEquip has been operational in Europe for around 10 years, Schuessler says, and just announced a previous agreement with Tokyo-based Diamond Construction Equipment and that its network was fully operational in Japan. (Diamond Construction is co-owned by four large Japanese equipment rental companies and Mitsubishi.) Ritchie’s purchase of SmartEquip allows it to “be so much more responsive with our international business,” Schuessler says.

Supply chain perspectives

You can’t have a discussion with supply chain front row players such as Ritchie and SmartEquip without delving into the issues that are plaguing all industries these days. Schuessler sees two issues: components and whole goods.

“In Japan, rental fleets tend to hold on to their equipment two to three times longer than they would in North America or Europe,” Schuessler says. “Of course, as equipment gets older, parts consumption goes up, as do service needs. That means two things. For those fleets that tend to have a longer life, the value we can bring to them by making those parts efficient also goes up over time relative to other parts of the world. If you take a step back to look at the overall life cycle, the contribution that technology brings to the lifecycle costs in an aging fleet tends to be higher than it is when you only hang on to it for two to four years.

“On the parts side, the shortage means that the search cost is higher, and so much of what SmartEquip does is reduce the search costs. When we began as a company, it was not unusual for a technician to spend as much time looking for the right part from a preferred supplier as they would holding a wrench in their hands. While we can’t change the scarcity aspect of it, we do have the ability to find the parts out there that pertain to a particular serial number.”

In this tight supply market, Ritchie is focused on how it can add value, Kessler says. “We’re also working on our technology to make sure that when you are ready to transact in the future it’s easy to do,” he says. For example, Ritchie’s Inventory Management System “makes it easy to transact with us,” he says. “There are other value-added things that our customers would appreciate.”

“We’re very happy to have them on board,” Kessler says. “We don’t have a rush to try to force something, so we want to make sure we build a technology that’s going to be easy for everyone to use. This isn’t about Ritchie trying to change it and make it something that it’s not. We want to make sure that when the marketplace is ready that it’s easy to use, and everyone’s going to have full transparency of how it’s going to work for them.”

Schuessler says the real benefit will come when today’s “spot technologies” telematics, fleet management, etc. are knitted together. “There’s no new technology required; it’s all about the workflow now,” he says. “If a machine throws out a code, we should be able to order a part and have it waiting at the service bay with a work order already filled out and technician instructions on what needs to happen. Raising the efficiency is right there to be had.”

Product Roundup: JLG expanding its aerial lift product line

October 26, 2021

JLG to add rotary telehandlers

JLG announced that it is partnering with Italian manufacturer Dieci to bring a new line of rotary telehandlers models to market. The JLG rotating telehandler line will initially consist of three models, the R1370, R1385 and R11100 with max lift heights from 67.3 to 97.1 feet and max lift capacities of 11,000 to 13,200 pounds.

Long popular in Europe, the rotating design works well on narrow city streets or anywhere space is constrained. This feature also enables you to get more work with less repositioning of the machine. The new line of JLG rotary telehandlers will be available with 13 attachments at launch for added versatility.

With more than 70% of a machine’s weight composed of steel, Volvo and SSAB intend to reduce the carbon used in its manufacture.Volvo Construction Equipment

Volvo CE‘s first fossil-free steel vehicle

Volvo has been pushing the envelope for a decade or more when it comes to environmental improvements to its equipment and operations. Its latest innovation is the first vehicle made with fossil-free steel in Volvo Construction Equipment’s factory in Braås, Sweden.

The concept vehicle, unveiled October 13 in Gothenburg, Sweden, is a load carrier for mining and quarry work. According to Melker Jernberg, president of Volvo CE, the company intends to have fossil-free steel used in all its products. Volvo says more vehicles with fossil-free steel are coming in 2022, including a series of concept vehicles and components.

The steel for the concept vehicle was provided by SSAB, headquartered in Stockholm, with facilities in Finland and the United States. You may recognize one of SSAB’s more well-known products here: Hardox wear plate and Strenx performance steels for dump trucks and other high-abrasion applications.

Crowded streets and confined jobsites are no problem for Liebherr’s new MK 73-3.1 crane.Liebherr

“You want that drywall where?” Liebherr’s new crane easily lifts over the gnarliest obstacles

The new MK 73-3.1 crane from Liebherr offers compact dimensions, making it a good choice for projects in densely built areas or where you need to perform multiple lifts to different points on a jobsite without having to reposition. According to the company, setup can be accomplished in as little as 10 minutes.

The smallest of Liebherr’s mobile construction cranes, the MK 73-3.1 measures 45 feet (13.8 meters) long, 8.8 feet (2.7 meters) wide and 13 feet (4 meters) in height, but it also includes all the features of its bigger brother the MK 88-4.1. The new crane can be operated electrically on site or powered by its integrated drive unit. The electric mode is quiet and emissions free, which is desirable in urban environments. A single Cummins six-cylinder diesel engine provides both drive and lifting power. Smart assistance systems and an adjustable elevating cabin support the lifting and positioning of heavy loads.

Max lifting capacity for the MK 73-3.1 is 13,225 pounds (6,000 kg), and 4,400 pounds (2,000 kg) at full radius. The top hook height is 87 feet (26.5 meters) high. Slewing radius is 11 feet (3.5 meters). The crane weighs 36 tons and can take on 2.9 tons of additional ballast for heavier lifts.

The Terramac RT7U can be customized to meet customers’ needs.Terramac

Customize your crawler carrier from Terramac

Shown at The Utility Expo, the Terramac RT7U is purpose-built for utility applications and capable of accommodating a wide array of support equipment.

The carrier’s rubber tracks and low ground pressure enable crews to access remote locations with difficult terrain.

Terex Washing Systems

Easily transport Terex’s new mobile washing screen

Terex Washing Systems launched the M1700X mobile washing screen at Ireland’s Construction & Quarry Machinery Show.

The screen can produce up to five products (three aggregates and two sands), the company says. The M1700X is easily transported, has a short 15-minute setup time and has optional hybrid power.

Junttan’s introduction of the world’s first electric pile driving rig will support Aarsleff’s mission to reduce the carbon dioxide emissions that originate from fossil fuels.Junttan

Junttan launches world’s first electric pile-driving rig>

Junttan Oy and Per Aarsleff A/S have formed an alliance to bring the world’s first battery-powered electric pile-driving rig to market.
The PMx2e is modeled after the diesel-powered PMx22. The electric pile-driving rig will offer the same “robust structure and usability as the PMx22 but consumes less energy per pile, reduces noise and delivers more power and instant torque,” Junttan says.
The rig features two detachable 396 kWh battery packs to allow for 8 to 13 hours of continuous pile driving. The battery packs replace the counterweight on the machine and can be charged with a normal 63A mains outlet.
Aarsleff Ground Engineering AB is a Swedish subsidiary of the Danish construction company Per Aarsleff A/S and is one of Sweden’s leading companies in ground engineering. The goal between the manufacturer and end user is to create more environmentally friendly construction sites through the reduction of carbon dioxide emissions that originate from fossil fuels.
Junttan Also Signs Dealer Agreement with XCMG for Foundation Drilling Rigs
Junttan USA Inc., a subsidiary of Junttan Oy, will represent XCMG foundation drilling rigs in the United States.
The rigs, custom-built by XCMG for Junttan, will be backed by a full line of drilling tools, temporary casings, shoes, drive adapters and teeth. The XCMG line of drilling rigs has a range of operating weights from 45 to 200 tons and torque values between 130 and 800 kNm. >
The partnership will expand Junttan’s product line from primarily pile-driving equipment into foundation drilling equipment.>