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This Months Cover Story

November 2009

ICUEE Roundup

The Facts of Fraud



ICUEE Roundup
The Innovations of the Bi-Annual Construction and Utility Expo

Despite the soggy weather and soft economy, more than 16,500 registered attendees filed into the Kentucky Exposition Center in Louisville for the second largest International Construction and Utility Equipment Exposition (ICUEE) in history. The show focused on the utility construction industry, including electric, phone and cable, sewer and water, gas, general construction, landscaping and public works.

“The feedback was very positive from exhibitors and attendees,” stated Show Director Melissa Magestro. “This was a great opportunity for the industry to get together and assess where they are now and plan for the future. ICUEE was definitely the place to be if you wanted to test-drive the latest equipment innovations and keep up to date on industry trends.”

More than 780 exhibitors covered 1 million-net sq ft of outdoor and indoor exhibit space. If that wasn’t enough to experience, attendees could also take advantage of more than 100 education sessions to pro-actively manage their businesses to increase productivity and operating efficiencies. Among the Top 10 most popular education session topics were new opportunities in emerging green technologies, such as solar and wind power, and a special panel discussion focused on the emerging smart grid electric power infrastructure.

Outfitted with laptops, gallons of coffee and jackets with plenty of pockets, the UC editorial staff braved the show floor to gather the latest intel from machine manufacturers. These were our findings.

John Deere D-Series Skid Steers and CTLs

John Deere unleashed the D-Series skid steers and compact track loaders (CTL), offering comfy cabs with 24 percent more room than their predecessors and six more inches of headroom and a 50-percent increase in noise reduction. D-Series skid steers and CTLs have electronically-controlled Tier 3/interim Tier 4 engines coupled with a new auto idle feature, providing quieter operation and fuel savings. The optional reversing hydraulic fan is a variable speed unit working with a computer program that monitors engine and hydraulic fluid temperatures to ramp fan speed up or down
as needed.

Freightliner Coronado

Shrouded in secrecy before the press briefing, the curtain was finally lifted on Freightliner’s new vocational truck — the Coronado Severe Duty (SD). Available in both set-back and set-forward axle configurations, the Coronado SD is built to last. From its high-strength, light-weight aluminum cab construction to its one-piece fiberglass hood and stainless steel grille, this truck is not only durable enough for rugged terrain and tough challenges, but easy to repair. Dual chrome steel intakes come standard on the Coronado SD. Air enters the system through two chromed steel grilles on either side of the hood, combining a stylish aerodynamic design with improved functionality. The air intake’s unique air plenum is designed to minimize the infiltration of water, snow, road debris or dust.Some of the key features on the truck — such as its 90 degree hood tilt for easy engine access for daily checks — were developed specifically with the vocational driver in mind. The truck’s headlight bulbs are readily available at any auto parts store and are easily replaced without any special tools.

Vermeer TrenchSense Electronic Control System

Vermeer Corp. revealed its TrenchSense electronic control system. Designed for use on select Vermeer utility trenchers, the industry-exclusive TrenchSense system helps eliminate engine stalls and stops when encountering difficult digging conditions.When trenching in AutoCreep mode, the patent-pending TrenchSense system actively monitors engine rpm and upon sensing a sudden drop in engine rpm or if chain operation stops, the tractor automatically pauses forward creep and backs up slightly.

Simultaneously, the trencher chain slightly reverses to dislodge material. Once the engine recovers, forward trencher chain motion and forward creep automatically resumes to previous settings and engine rpm helping to enhance productivity by eliminating the need to return controls to neutral and restart. All occurring within seconds, the TrenchSense system reacts quickly to help prevent engine stall when soil or digging conditions become difficult. This feature helps save wear and tear on both the trencher digging chain and tractor engine by preventing unnecessary stopping and engine load.

McLaughlin On Target Auger Boring System

With steering flaps that keep this boring system on target like a heat-seeking missile, the McLaughlin On Target steerable auger head allows grade and lateral control of auger boring jobs from 20 to 60 in. The On Target System consists of a steerable control head and control station and features a built-in vertical alignment sensor for checking grade, Twin Line projection lights that allow the operator to check line and Forward set flaps for improved steering ability and quicker response. The system works with any size or make of boring machine.

 

Parker Hannifin Parker Tracking System

Developed for the United States by Parker’s Hose Products Div., the Parker Tracking System (PTS) has two key components. First are uniquely encoded tracking labels that incorporate visual data, barcodes and optional Radio Frequency Identification (RFID) technology. The labels are generated by special printers and are affixed to the hose assembly at the time it is made. The second component is a Web-based PTS software system that can be accessed securely through an Internet connection. Each tracking label code is cataloged in the PTS database. The code identifies several key pieces of information about the hose assembly — for example, where and when it was made; what hose, fittings and accessories were used; and the length of the hose. Special OEM features will include details about the asset in which the assembly is installed as well as other information.

IMT Certified Used Equipment

To meet customer demand for quality pre-owned equipment, IMT Certified Used Equipment is an extension of the IMT line of durable and reliable service vehicles that provides a premium level of certified used equipment. Each vehicle will be reconditioned to a defined set of criteria within a rigorous 90-point checklist. IMT will inspect every aspect of each vehicle, including overall appearance, cab interior, condition of under-hood and under-vehicle components, service body, crane, compressed air system and optional components. Customers who purchase IMT Certified Used Equipment and register their warranty online will receive a copy of the 90-point checklist, as well as a six-month limited warranty for the IMT equipment and a one-month limited warranty on the chassis.

The Facts of Fraud
Construction Losses Are Down in Tough Times

The global construction, engineering and infrastructure industry saw a significant decline in fraud activity with companies losing an average of $6.4 million over the last three years, according to the latest edition of the Kroll Annual Global Fraud Report.

This new figure represents less than half of last year’s amount of $14.2 million. Construction, engineering and infrastructure companies registered a below average loss compared to other sectors, with the financial services industry being hit hardest by fraud over the past 12 months. The findings are the result of a survey Kroll commissioned from the Economist Intelligence Unit of more than 700 senior executives worldwide.

“Traditionally, every downturn brings about a rise in fraud, but what we are seeing in 2009 is something far more complex,” said Blake Coppotelli, Senior Managing Director in Kroll’s Business Intelligence and Investigations unit. “Companies are seeing greater vulnerability due to reduction in internal controls, pay cuts and reduced revenue across the board, but counteracting this increased risk are the realities of today’s constrained business environment, where factors such as high staff turnover, entry into new markets and inter-firm collaboration are far less common than in years past. In short, the current economic crisis has increased the motive for fraud, but decreased the opportunity.”

While the construction industry experienced a slowdown in fraud, this was not the case in every industry. In fact, despite the most challenging global economic conditions in recent history, the latest edition of the Kroll Annual Global Fraud Report revealed that across ten industries, fraud activity worldwide remained steady in 2009. On average, companies lost $8.8 million to fraud over the past three years, up just seven percent on last year’s figure of $8.2 million.

Although fraud losses are down in this year’s survey for construction companies, the prevalence of the problem is not declining at nearly the same rate. More than nine out of ten (91 percent) companies reported being hit by some form of fraud over the past three years, down slightly from last year’s figure (95 percent) but still well above the survey average (85 percent).

Interestingly, the types of fraud incidences are changing, with more than a third of companies suffering from corruption and bribery (38 percent), up from last year’s survey (28 percent). Other areas of frequent loss are: theft of physical assets or stock (36 percent); financial mismanagement (29 percent); vendor, supplier or procurement fraud (25 percent); information theft, loss or attack (23 percent); regulatory or compliance breach (23 percent); and management conflict of interest (21 percent).

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