We Need to Talk … To Each Other
Listen to the May podcast with Marlin Smith at TKO. What does IEDA need more of? IDEA SHARING. So says IEDA founding board member Marlin Smith, owner of TKO Equipment. Listen in as he discusses some of the big challenges independent dealers are wrestling with today, from customer rental expectations to machine and part shortages––as well as perhaps the most formidable obstacle: being handcuffed by OEMs and authorized dealers when it comes to independents’ ability to repair their own rental units. With limited political and financial clout compared to the deep pockets of manufacturers that are fighting to be exempt from any Right to Repair legislation or executive orders, IEDA members’ best tool right now is each other. Smith opines on today’s issues and why––despite members’ entrepreneurial tendency to keep their cards to the vest––it’s more important than ever for independent dealers to get together, stick together, and share information. LISTEN TO PODCAST>>
A Closer Look at Wheel Loaders Pricing Trends
Many contractors are buying versatile equipment like 4-WD articulated wheel loaders to compensate for their limited staff.
The construction equipment market continued familiar trends in March 2022, with freight issues and production slowdowns impacting pricing and activity levels. Average FMVs for construction equipment increased 5.5% over March 2021 levels, and 4.1% over March 2020. They did trend down slightly—0.6%—compared to February 2022. Activity levels were 29.6% lower than March 2021, and 3.8% below February 2022. READ FULL CONSTRUCTION REPORT>>
More Distress Plus
Dealing with Stagflation requires a new set of planning skills few managers have had the pleasure of dealing with. By Garry Bartecki This month I was hoping to share some positive comments about inflation, supply chain issues, OEM delivery dates, improving sales numbers and margins. Unfortunately, I cannot do that. I cannot do that because the activities in Europe have changed from what we call a conventional recession (where we were headed before the shooting started in Europe) to a strange recession that will have more bite for a longer-term. Just what we needed. In addition, word on the street is this recession will become stagflation where prices continue to rise even though economic activity is shrinking. Conventional recession could last from six months to a year when events turn and it is a start back to business as usual, such as what happened in 2008 and 2009. READ FULL STORY>>
The Critical Need for Pipelines: Important WSJ Recommended Reading
Steep energy bills imposed on Americans by stopping pipeline infrastructure are coming due, and the primary cause is the alliance among Federal government agencies and environmental opposition groups creating obstacles to building new interstate natural gas infrastructure. By Toby Mack Two recent (April 22) pieces from the Wall Street Journal about the future of natural gas and pipelines are so spot-on and relevant to EEIA’s industries that we couldn’t let them pass unmentioned and without recommendation. The first, “John Kerry Says the Darndest Things“, is subtitled “Biden’s climate envoy sentences natural gas to death in a decade or less,” was by the WSJ’s Editorial Board. It’s punchline: “Natural-gas prices have shot up in recent months because production isn’t keeping pace with demand as the economy continues to recover and coal plants shut down. Political opposition to new pipelines is constraining U.S. production. Without more pipelines, U.S. energy prices will increase. READ FULL STORY>>
Rental Store Owner Battles to Solve Nation’s Debt Crisis, One Politician at a Time
An Oklahoma equipment entrepreneur says the No Budget, No Pay Act is the only way to incentivize Congress to do the hard work of balancing the budget––and he’s harnessing some savvy strategy and all the financial resources he can gather to get it passed. Construction equipment rental-man Brian Walter is taking on Washington, and both his message and mission are gaining traction. Owner of WBC Rental & Lumber in Kingfisher, Okla., Walter is on a personal, patriotic crusade to save America from fiscal suicide, and his no-nonsense strategy to force members of Congress to simply do their job and pass a budget every year is predicated on one thing every politician dreads: negative publicity. READ FULL STORY>>
Ritchie Bros. Sells CA$102+ Million of Equipment in Largest-Ever Ontario & Manitoba Auctions
More than 6,400+ items were sold between the Toronto and Winnipeg auctions last week. From Ritchie Bros. on PRNewswire Last week, Ritchie Bros. conducted its largest-ever auctions in Ontario and Manitoba, selling CA$71+ million (US$54+ million) of equipment and trucks in Toronto and CA$31+ million (US$24+ million) of assets in Winnipeg. The multi-day online auctions attracted a combined 11,900 registered bidders to compete for more than 6,400+ items between the two events. “We bulldozed past our previous Toronto sales record, set last May, with gross transaction value up approximately 35% year over year,” said Ryan Pottruff, Regional Sales Manager, Ritchie Bros. “There was a lot of demand from consignors to be a part of this event, so we made full use of our Thunder Bay satellite yard and an additional offsite location in the Toronto area to ensure there was enough room for everyone, and it paid off. Consignors were very pleased with the strong pricing we achieved during all three days of the auction.” READ FULL STORY>>
Did You Hear? United Rentals Is Investing in Ford Electric Trucks for Its North American Fleets
They’ve ordered 500 F-150 Lightning trucks and 30 E-Transit vans, with 120 trucks and all 30 vans to be delivered in 2022. What’s in your rental fleet and should you make any changes? From United Rentals United Rentals, Inc. announced on May 12 a new agreement with Ford Pro to purchase all-electric vehicles for its North American rental and company fleets. The agreement initially includes orders for 500 F-150 Lightning trucks and 30 E-Transit vans, with 120 trucks and all 30 vans to be delivered in 2022. The vehicles will be used by United Rentals customers on construction and industrial jobsites, and by the company’s sales, service and delivery personnel. United Rentals has selected the Ford F-150 Lightning model with a maximum target range of 320 miles and a maximum towing capacity of 10,000 lbs. The E-Transit is an all-electric commercial cargo van with a target range of 126 miles. Both models are equipped with Pro Power On-board and an array of connectivity features, including F-150 Lightning’s game changing technology – Intelligent Back-Up Power. The company expects to deploy the vehicles in the second half of 2022. Matthew Flannery, chief executive officer of United Rentals, said, “We’re pleased to demonstrate leadership in the use of 100% electric vehicles in the construction and industrial rental sectors. We’re committed to helping our rental customers meet their greenhouse gas reduction goals by integrating more sustainable solutions into our fleet. This investment expands our strategic partnership with Ford and reflects our dual commitment to alternative energy solutions for our customers and operations.” United Rentals will partner with Ford Pro Solution experts to provide charging options for customers that include home, worksite and Ford’s BlueOval Charge Network. Additionally, Ford Pro Solution experts will assist United Rentals with the optimal placement and use of the new vehicles in the company’s electrification plan and installation of charging infrastructure. United Rentals has set a goal of reducing the greenhouse gas emissions intensity of its business by 35% by 2030, from 2018. More information about the company’s environmental management strategy can be found in its Corporate Responsibility Report at unitedrentals.com.