April 2009

The Passing of an Industry Icon

And the Finalists Are…

The New Hotness

Cutting Costs

What’s in a Name?

In The News

The Passing of an Industry Icon Gary Vermeer, Founder of Vermeer Corp., 1919 - 2009 Great leaders of industry offer grandiose visions of future efficiency and production, in addition to solid products. Gary Vermeer looked past the equipment of today to the machines of the future. He pushed boundaries with Vermeer Corp.’s ever growing line of drilling machines, agricultural tools, environmental systems and compact equipment. So it’s with great remorse to announce that Gary Vermeer, founder and chairman emeritus of Vermeer Corp. in Pella, Iowa, died Feb. 2, 2009, at the Comfort House of Pella. He was 90 years of age. He is survived by his wife, Matilda, and three children and their spouses — Stanley and Alma Vermeer; Robert and Lois Vermeer; and Mary and Dale Andringa, eight grandchildren and nine great grandchildren. Gary Vermeer and a cousin started Vermeer in 1948, after inventing a wagon hoist five years earlier, which made it easier to unload corn. Demand for the labor-saving device from his neighbors prompted him to open Vermeer Mfg. Co. The man and the machine. Gary Vermeer’s invention — the hay baler — changed the agricultural world. It also earned him Iowa Inventor of the Year in 1984. From that small operation, the company has grown over the past 60 years to an international organization that manufactures agricultural, construction, environmental and industrial equipment. Today, Vermeer Corp. has industrial dealerships in over 60 countries and on every continent except Antarctica, in addition to hundreds of agricultural equipment dealers throughout the United States. Two of Gary Vermeer’s children, Robert Vermeer and Mary Vermeer Andringa, now serve as co-chief executive officers of Vermeer Corp. Three of his grandchildren also are active in the corporation. Perhaps Gary Vermeer’s best known manufacturing contribution is the Vermeer round hay baler, an invention that revolutionized agriculture in 1971 as it turned the labor-intensive process of hay baling into a one-man operation. One of his many innovative ideas and industry-changing products over the years, Gary Vermeer’s hay baler concept was a solution to his common theme, “There has to be a better way.” Under Vermeer’s guidance, other landmark products manufactured by the company include stump cutters, trenchers and tree spades, among many others. Today, the company manufacturers more than 100 product models, including a more recent line of Vermeer Navigator horizontal directional drills and many other products in its four product segments: forage management; specialty excavation; environmental transformation; and underground installation. In addition to Gary Vermeer’s notable contributions to manufacturing, he is well known for his philanthropy. The company started a foundation in 1958 to set aside a portion of the company’s profits. Over the years, the Vermeer Charitable Foundation has made significant contributions to many projects, both locally and worldwide. In honor of Gary Vermeer and his lifetime of contributions, a Web site has been established. Gary Vermeer isn’t truly gone if we find a way to remember him. Please visit www.garyvermeer.com for more information.

And the Finalists Are…
AEM Announces the Lucky Regional Winners of the Construction Challenge

Students compete at a local rally in Milwaukee.

Igniting the spark of construction industry interest in the hearts and minds of kids begins with capturing their imagination. The Construction Challenge does just that — it’s a competition for teenage students that presents them with creative problem solving situations, in which students use skills they could be using on the jobsite in the coming years as federal and state governments seek to fund badly needed infrastructure projects.

The Association of Equipment Manufacturers (AEM) announces the regional winners in its Construction Challenge teen competition. Among the 2,000 students from around the United States, and in Toronto, Canada, who competed in 15 simultaneous qualifying rallies, 55 teams across the U.S. and Canada secured their spots in the challenge finals. More than 300 student teams competed in the regional rallies, held in early February, for a spot in the finals.

“The success of the stimulus package, the rebuilding of our infrastructure and the training of millions of workers will be directly related to the success of future generations of Americans,” said Dennis Slater, President of AEM. “The Construction Challenge is one way our industry is helping prepare and invest in that future. We also hope everyone has a little fun and gets inspired along the way.”

The Construction Challenge finals will be held May 20-23, 2009, during the Destination ImagiNation Global Finals in Knoxville, Tenn. Sponsorships are available to help cover the costs of student teams’ participation.

Now in its second year, the Construction Challenge offers an opportunity for students, teachers, parents and community leaders to learn more about available construction careers and how critical off-road equipment is to creating and maintaining the high quality of life enjoyed in North America and Europe, as well as by increasing numbers in the developing world.

The New Hotness
The Latest Equipment from the Trade Show Season

Kubota Super Double Boom Utility Class Excavator

The KX080-3 Super Double Boom 8-ton utility class excavator is designed to bring the bucket more than 3 ft closer to the machine, making it easy to hold soil in front of the blade when leveling, while eliminating the small piles of rocks and rubble often left by a standard boom. Other features include an impressive dumping height of just more than 20 ft and a digging depth of slightly more than 15 ft. The wide leveling range with a wide tilt bucket also allows operators to easily level and finish on uneven surfaces.

Bobcat E80 Excavator

Bobcat Co.’s E80 excavator offers a completely new design that sets a high standard by increasing service intervals, operator comfort and durability. Daily greasing of the bushings at the boom, arm and bucket pivot is a thing of the past with the E80 excavator. Normally, this process takes up to 30 minutes of an operator’s time each day. Now, the operator will be able to spend that time working because the E80 has increased the service interval of greasing the bushings to 250 hours. The E80 also offers a spacious cab with an operator seat that adjusts six ways and a heating and air conditioning system that has true automotive-style controls.

John Deere G-Series Motor Graders

John Deere’s new G-Series offers users a choice of console-mounted industry standard controls or armrest-mounted industry standard fingertip controls, as well as features like cross slope control, automatic differential lock and a rearview camera. Each of the six G-Series models, ranging from 185 to 275 net hp, are engineered for increased productivity, reliability, durability, serviceability and low daily operating costs. There’s also a choice of ground-engaging tools. G-Series graders are available with a front- or mid-mount scarifier or a rear ripper/scarifier.

Topcon Tierra

Topcon Tierra is a Web-based remote asset management system that provides the industry’s largest information-gathering, storage and retrieval telematics system. Each vehicle selected for monitoring has a wireless device installed that feeds constant data into a central database. In turn, the in-vehicle information device receives information from the central database. Each piece of jobsite machinery — regardless of location — can be shown on customized maps (local to global). The remote diagnostic module makes available information on the exact condition of each vehicle and its components from a remote location. Periodic reports are available about the status of individual machines and maintenance needs, to lower idle and downtime and increase efficiency and productivity.

Cutting Costs
Tightening Operations in Tough Economic Times

Crew spending more time gabbing and less time working? Management practices can help get your guys off the phone or an extended break and back to work.

Everyone’s looking for corners to cut — but have you looked closely at your crew’s efficiency? Of the 226 construction executives and managers participating in FMI’s 2009 Contractor Productivity Survey, 74 percent indicated they could save a minimum of 5 percent of their annual field labor costs through better management practices.

For a company spending $10 million a year on field labor, this represents an opportunity to save an additional $500,000 or more, which goes directly to the bottom line.

Although contractors have improved their methods for tracking field labor costs with new data collection systems since FMI began its bi-annual survey of productivity in 2003, the latest report finds two-thirds of the companies surveyed met or beat their project labor budgets less than 80 percent of the time. FMI notes the upside opportunity for labor-intensive contractors to save dollars on a good project are finite, but the downside risks on a bad project are nearly limitless.

According to Scott Kimpland, FMI Principal and Author of the report, “As contractors enter 2009, they are faced with uncertainty and some tough economic challenges. Tighter credit markets, a falling stock market, increased unemployment and a sharp downturn in the residential segment are good indicators the next few years will bring fewer opportunities and increased competition, resulting in tighter margins. If ever there was a time to get serious about becoming a lower-cost producer, this is it.”

The report details contractor productivity improvement practices and challenges and suggests methods contractors can use to develop a more productive workforce, be more competitive in tough economic times and, ultimately, be prepared when the economy starts to improve again.

For the full report, visit www.fminet.com.

What’s in a Name?
AEM Promotes Consistent Terminology for Compact Tool Carriers

Potato. Potato. Alright, so they read the same when you write them, but some people say them differently. I’d like to introduce to you the latest potato — the compact tool carrier.

When working with so many manufacturers and brands, terminology can often get muddled. What separates a backhoe loader from a tractor loader backhoe? And did you know that mini track loaders, mini skid steers, compact utility loaders and walk-behind loaders are all the same machine?

The Association of Equipment Manufacturers (AEM) is having the same problem. To assist equipment customers, AEM is promoting consistent machine terminology in the small equipment marketplace. AEM is advancing the use of the term “compact tool carrier” to refer to machines that are also known as mini-loaders, mini skid-steer loaders, mini skid steers, compact skid steers and compact utility loaders.

AEM’s Larry Buzecky notes that U.S. and international standards writing bodies are adopting the encompassing term.

A proposed SAE standard on personnel protection defines a compact tool carrier as “a self-propelled crawler or wheeled machine having an operating mass of less than 1,400 kg with a rigid frame, having either a walk-behind operator position or standing operator platform at the rear of the machine and having either front-mounted interchangeable equipment or lift arms with an attachment bracket capable of coupling to interchangeable, front-mounted attachments.”

In September 2008, AEM produced a new safety manual covering compact tool carriers, in English and Spanish, and available from the AEM Store online at www.aem.org. The AEM compact tool carrier manuals cover safe operating practices for compact tool carriers having either tracks or tires. Heavily illustrated with pictorials from AEM’s Pictorial Database, the manuals cover an entire cycle of safe operation, from preparing for safe operation through safe equipment shutdown and equipment maintenance. The manuals were developed with oversight from AEM’s Compact Tool Carrier Safety Manual Ad Hoc Committee, which helped guide the manual to production.

The Big 4-0 Despite economic hardships, Case Construction Equipment is scheduled to produce its 250,000 skid steer unit this year and mark its 40th year making skid steers. The company began producing skid steers under the Case name in 1969 after acquiring the Uni-Loader line from Universal Industries. Jim Hughes, Case brand Marketing Manager, noted that customers operating current-model Case skid steers will still find the trademark maneuverability that allows the machines to counter rotate. “But today’s Case skid steers include operator comforts — suspension seats, heated and air conditioned cabs, radios with an MP3 port — and productivity features like pilot controls, hydraulic couplers and high-flow hydraulics that operators in 1969 couldn’t even begin to imagine,” Hughes said. Gaining Ground Trimble has acquired privately-held QuickPen International based in Englewood, Colo. QuickPen is a leading provider of Building Information Modeling (BIM) software for the heating, ventilation and air conditioning (HVAC), mechanical construction and plumbing industries. QuickPen provides estimating, computer aided design (CAD), fabrication and asset tracking software for the mechanical and HVAC construction trades. The company’s state-of-the-art 3D CAD software produces detailed HVAC ductwork and piping models that can be rapidly fabricated. QuickPen will be part of the Engineering and Construction segment. Qualified for Taxes Purchasers of certain Kenworth medium duty diesel-electric hybrid trucks in the United States are eligible for a tax credit of up to $12,000, under a qualified hybrid motor vehicle credit available from the federal government. The U.S. Department of Treasury and Internal Revenue Service recently certified the tax credit eligibility of Kenworth T370 Class 7 and Kenworth T270 Class 6 hybrid trucks in both pickup and delivery and utility boom applications, when equipped with a PACCAR PX-6 engine and an Eaton(R) diesel-electric hybrid power system. The T370 qualifies for a $12,000 credit, the maximum for Class 7 hybrids. The T270 qualifies for a $6,000 credit, the maximum for Class 6 hybrids. The credit applies to Kenworth hybrid trucks built this year. Let’s All Go to the Fair CNH Parts & Service, the product support business of agricultural and construction equipment maker CNH Global N.V., recently hosted a trade fair in Nashville, Tenn., to offer equipment dealers new parts and service sales opportunities that will help them grow and diversify their businesses, even in these difficult times. The event, which took place Feb. 25 through March 1, at the Gaylord Opryland Resort & Convention Center, brought together CNH employees, suppliers and agricultural and construction equipment dealers in the U.S. and Canada. Dealers in attendance represented the entire CNH family of brands — Case IH, Case Construction Equipment, New Holland Agriculture, New Holland Construction and Kobelco — and were encouraged to “Stand By Their Brand.” “In response to the current economic environment, we are making a significant investment to ensure that the dealers we serve can take advantage of the potential opportunities in their markets,” noted Eric Bippus, Vice President of Sales and Marketing for CNH Parts & Service North America. “Parts and service work is one way dealers can help offset slower sales. Additional training and access to resources is vital, so we’re updating dealers on everything — from new business opportunities, to sales tools and environmentally-conscious products.”