Month: November 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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How do you make a popular design even better? Genie set out three goals to meet with its new GTH-1056 telehandler. It had to deliver a lower cost of ownership, more lift capacity and a stronger design.

Based on the features found in the older GTH-636 and GTH-846 models, the GTH-1056 offers a boom and chassis that is 30 percent stronger than previous models. The boom’s mid-point pivot uses a single lift cylinder combined with a wider, stiffer horsehead to efficiently transfer weight in high-stress applications, such as handling pipe or suspended loads.

The GTH-1056 lifts up to 5,000 pounds to a height of 56 feet 7 inches and 3,000 pounds at a maximum reach of 42 feet. A 120-horsepower Deutz engine and four-speed transmission serve as the muscle behind this machine. The combo gives you 23,110 pounds of drawbar pull and a top speed of 18 mph.

There’s also a 74-horsepower Deutz engine option with a three-speed powershift transmission or continuously variable transmission. According to the company, the 74-horsepower version delivers performance on par with the larger engine but offers a lower cost and better fuel efficiency. And because it runs without the need for regular refills of diesel exhaust fluid, the 74-horsepower version reduces maintenance time.

Large tread bars in the middle add durability and aggressive tread blocks on the edges improve traction with Genie’s A/T hybrid tires.GenieTo keep you moving through wet or muddy soil conditions, the GTH-1056 delivers power to the wheels through limited slip differentials on both the front and rear axles that automatically deliver torque to the wheels that are slipping. 

Tires are always a big part of the operating costs of any machine. To help keep this cost low, Genie developed a new Enduro A/T hybrid tread design for the GTH-1056. The tread pattern on the tire combines the best characteristics of rock lug tires and conventional rough-terrain tires. A wide center bar resists wear on hard surfaces, and self-cleaning outer lugs power through soft, muddy ground without becoming clogged. According to the company, its Enduro A/T tires also provide one-third longer wear before replacement is needed.

Improved hose routing, chain retention, slide-in wear pads and hydraulics-free axles also reduce maintenance costs.

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Bryn Fosburgh, senior vice president of Trimble, has been inducted into the Association of Equipment Manufacturers Hall of Fame.

Fosburg is recognized for several achievements at Trimble, including the creation of the SITECH network, the first fully dedicated global construction technology distribution network to sell, install and support 3D machine control systems for mixed equipment fleets.

On the Ground Floor of GPS

During his tenure at Trimble, Fosburgh has spearheaded major projects advancing the field of GPS technology. He led Trimble’s first joint development project with Caterpillar called CAES, a 3D grade control system for ore mining machines.

Fosburgh was also part of a team that pioneered the development and validation of high-accuracy, low-latency GPS systems, including real-time kinematic (RTK) technology, for mining and construction machine control. RTK significantly improves the accuracy of a GPS receiver for precision applications including surveying and heavy equipment operations in construction and agriculture.

In addition, Fosburgh served as a member of the U.S. Army Corps of Engineers (USACE) RTK Team, working with Ben Remondi, a GPS RTK pioneer. He began his work in GPS technology and theory as a graduate student in civil engineering at Purdue University.

“I am honored and humbled to stand alongside so many of the true pillars of our industry,” said Fosburgh. “I have had the good fortune to work with great teams at Trimble as well as collaborate with very talented industry peers who are dedicated to solving some of our biggest challenges. Together, we can continue to move our industry forward.”

Fosburgh joins a class of more than 65 industry leaders “whose inventions, ideas, leadership and courage have contributed to the industry and our community’s quality of life,” says AEM.

Learn more about Bryn’s career in technology in the video below:

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For being the fourth-largest city in the country, when it comes to construction, Houston, Texas, often operates like a small town. Everybody knows everybody, and that suits Alicia Jimerson just fine.

Growing up the daughter of a well-known and respected Houston contractor, Jimerson had no intention of going into construction. But as fate would have it, she started helping out in the office of her dad’s company, and after she graduated from college, she decided to try her hand at the business.

Rather than run her dad’s company, Jimerson hung out her own shingle in 1989 to take advantage of minority-owned business provisions. Soon after, she hired two skilled veterans, Tony Bonner as general superintendent and Tom Nugent as project manager. Today, she has 45 employees, runs a $7 million to $10 million business in Stafford, Texas, and is one of Equipment World’s 2021 Contractor of the Year finalists.

But her first venture into the world of bid letting didn’t go exactly as she had hoped. At a meeting with Houston’s biggest general contractor, “I got my ass chewed out,” she says. “He told me my numbers were good, but next time I came in with a bid, I had better bring some men with me, that if I didn’t, somebody was going to take advantage of me on pricing.”

Jimerson didn’t win the bid that day, but undeterred, she kept her head down and worked hard. “It was difficult to get doors to open up. And I don’t think I could have done it without the support of Tom and Tony,” she says.

ssociations are gold

From the start, Jimerson knew something many contractors learn the hard way, if at all. She understood the key to getting business as a small start-up was to build relationships, to meet your peers, shake a lot of hands and pass out business cards.

Thirty years ago, Houston construction may have been a club of good ol’ boys, but that world was changing, due in no small part to the persistence of women like Jimerson. She joined the Houston Contractors Association and was elected to the board in 2008, then chosen as president in 2011. She was also a founding member of the Houston Women Contractors Association.

Just as the relationships developed in construction associations have been important to the success of Jimerson Underground, so has Houston’s Livestock Show and Rodeo. With more than 100 committees and 37,000 volunteers, it is the largest livestock and rodeo show in the world. It unites everyone from the city’s billionaire oil barons to multinational corporations, civic groups and local businesspeople in a common purpose – generating more than $500 million in scholarships for young people since 1932.

Jimerson joined one of the committees in 1989 and has steadily worked her way up to vice president. “You would be surprised at how many contractors are involved in the rodeo,” she says. 

Smooth operations

To keep up with the demand for its services, Jimerson hired Dennis Wolford in 2006 to add some bandwidth on the management side. He’s now the vice president and keeps all the different departments working together smoothly.

In addition to maintaining relationships outside the company, Jimerson Underground has done well by keeping its relationships with its employees strong. “Nurturing the relationships you have with the people who work for you is important,” Wolford says. “It’s not a one-way street. They work for us, but we work for them as well. The people who have been here 20 and 30 years know that.”

David Medrano, project manager, (left) and Dennis Wolford look over estimates.Equipment World“Your employees are not just employees, they’re family,” says Jimerson. “Yes, you’re here to make money, but you’re also here to make sure their families are taken care of. That’s what families do, and the long-term employees know this is home.”

That focus on relationships and the skill and knowledge of 30-year veterans like Nugent and Bonner have impressed Nelson Blackwell of Vaughn Construction, an earthmoving general contractor that does business with Jimerson Underground. “They’re dependable,” says Blackwell. “They’re going to be there for you year-in and year-out. To them, it’s more than just the price on the bid. They’re the people you want on your team.”

Belt-tightening

The recession of 2008-2011 was a stark reminder of just how important this philosophy was to the company. Employees went without bonuses, and executives went without pay for a period, but the company got through it without resorting to layoffs.

One thing it did change during the recession was its philosophy about equipment management. Before the recession the company would run equipment “until the paint fell off,” says Jimerson. But the slowdown in work and the lack of cash flow made it essential to sell most of the assets that weren’t vital to the work at hand. Today, equipment acquisition and disposal decisions are much more strategic, says Wolford.

Jimerson Underground has also been rigorous about sticking to what it does best. On occasion it’ll do a bit of site work for a friend or longtime customer, but the core business is underground utilities – basic water and sewer installations.

“Our guys know water and sewer,” says Wolford. “From the office to the estimator to the permits to the field, everybody knows exactly what to do.”

Proof that this philosophy works comes from customer Falin Ishee at Turner Construction. “From the start it has been a positive impression,” Ishee says. “They are great to work with, from the office staff to the field. Utilities are always a pain to deal with, but they make it easy. They are one of the contractors who stand out.”

Tony Bonner, general superintendent, (left) was the company’s first employee. Dennis Wolford, vice president, (right) joined in 2006 to help it grow.Equipment World

Volunteer to win

Having broken through the glass ceiling in one of the most male-dominated businesses in the country, Jimerson’s advice to those who want to succeed is essentially the same for men or women – build relationships.

It is essential to not just join your local construction and civic organizations, but to volunteer and get on committees in those organizations, Jimerson says.

“That’s how you meet suppliers and other contractors that you may work for someday,” she says. “Even if it’s just a 5-second introduction and handshake, they will at least know who you are. Once you get involved, you’re going to get out of it what you put into it.”

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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Vermeer’s new PD10R drill, introduced at The Utility Expo and directed at solar installation contractors, now can be outfitted with point-to-point automated machine positioning technology.

“We’ve always had GPS integration,” says Bo Howell, product specialist with Vermeer. “Point-to-point takes that GPS technology to another level, navigating the pile driver while tracking the machine.” The point-to-point system repositions the machine automatically using the onboard GPS.

After driving a pile, the operator uses a remote control console to press a button and the PD10R travels and aligns itself to drive the next pile. “We’ve basically boiled it down to one manual step: physically loading the post into the guides,” Howell says. “Everything else is done with a single button motion, stepping the machine through the sequence.”

While labor constraints have been a pain point across the entire construction industry, Bode says the solar industry has been especially receptive to adopting equipment technology to combat labor shortages. “We’re trying to take some of the human error out of the equation,” Howell says. Solar contractors typically use a fleet of drills to install a solar field, especially on large installations that cover several hundred acres. 

Vermeer says the system reduces the number of operational steps involved in moving the machines around solar farm construction projects, which can involve drilling hundreds of piles before installing racking and solar panels. The point-to-point system moves the drill’s mast orientation using the PD10R’s auto-plumb function. Operator input is reduced by eight steps. 

The system works by syncing GPS coordinates with a digital project map of identified pile sites. After a pile is installed, the system recognizes the next waypoint (or pile location) on the map, and then positions itself into alignment. The unit also has red bump bars on each side that disengage the machine if it encounters an obstacle. 

“The whole idea is to get as many posts into the ground as possible and as safely as possible,” Howell says.

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Cold weather isn’t just annoying, it’s dangerous. Workers exposed to low temperatures over long periods of time perform poorly. Extreme cold can cause hypothermia, which can lead to confusion and disorientation. Single-digit temps can turn lube oils into sludge and cause metal parts to fracture.

Whether it’s temperature-critical outdoor operations or unheated buildings, warehouses, and shops, your best defense is a portable power heater like the new Maxi-Heat 1M BTU from Allmand. This towable, indirect-fired unit has two independent burners providing up to 1,000,000 BTUs of heat combined. The Maxi-Heat can easily transition from heating indoor spaces to warming equipment to curing concrete.

Allmand says the key customer feedback they addressed with the new model was noise. “We heard it was reliable and durable but it was also loud,” says Dave Jones with Allmand. In response, Allmand reduced the sound by 60%. 

“We see a lot of these on bridge projects in the winter when contractors are painting,” Jones says. “They tarp it off and continue to paint.”

The iQ system automatically calibrates each burner for reliable, consistent results and eliminates the trial-and-error combustion measurements and adjustments. Recirculation is standard on all Maxi-Heat products, resulting in increased efficiency and lower fuel consumption.

Key features include an external control panel that allows you to adjust settings without opening the heater door and a centrifugal fan, which decreases noise and increases airflow efficiency.

Power options include a Cat C1.1 engine (13.8 horsepower) or a Kubota D1005 engine (11.6 horsepower). Run time is approximately 38 hours. For towing purposes, it uses a 2-5/16 -inch bulldog hitch. The gross vehicle weight rating (GVWR) is 6,000 pounds. To pipe the heat indoors, duct flange outlets are offered in 12-, 16-, or 20-inch sizes.

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