September 2021 Edition

One IEDA Customer Offers Feedback We All Can Use

Our September podcast is an honest conversation about a contractor’s rental mindset. Clay Padilla, a rental customer of an IEDA member dealer, started his Native American-owned heavy construction firm at the age of 23 near Albuquerque, N.M. He has built it into a stable, growing company serving heavy civil and utility sectors, predominantly working under federal contracts on tribal land. Listen and learn from his likes and dislikes, priorities and pet peeves in this open, friendly dialog – and ask yourself, ‘Do some of my customers feel the same way?’ LISTEN TO PODCAST>>

Midyear Member Event Hits a Home Run

Members say it was the best IEDA event they’ve ever attended. From the kickoff Welcome Party with live music on the patio to provocative, engaging speakers, to rooftop Cubs game and a big Italian dinner seasoned with great conversations, the Chicago regional event Sept. 10-12 poured on the fun and reenergized IEDA member connections. “I just want to thank Dave Gordon and his team for an exceptional weekend,” said IEDA Vice President Steve Udelson. “Everything was planned and executed to a tee from start to finish. After seeing what they did with this event, I have no doubt Florida’s Annual meeting will be a huge success [Feb. 10-13].” Gearflow’s Luke Powers walked attendees through the strategic undercarriage of Amazon and its willingness to suffer years of loss in order to penetrate (and seek to dominate) the equipment parts business. Then the financial panel took the room by storm, outlining dealers’ opportunities to seize government tax credits, and cautioning members about serious tax threats coming from Washington. The web of state sales tax was discussed and the Q&A sent the session into overtime. Batting clean-up, digital marketing guru Mets Kramer focused members’ attention on identifying their individual core business basics and tactics for going beyond the single sale to create loyalty through branding. IEDA Board Member Caleb Phillips said: “The IEDA staff did a great job putting this wonderful weekend together. The speakers were great and all of the events were a blast.” “The first night [with] music/dinner was fantastic and it showed because of the numerous people that stayed late,” said attendee Rob Houlder, sales manager at Rockwheel Americas – Alpine Equipment. “The ball game was equally enjoyed by all and then followed by the evening dinner, which again was 5 star! This was a fantastic introduction to your group for me, being the first time. I am proud to be part of this group!”  

House Reconciliation Provisions Target Eliminating Natural Gas Power Generation

On Sept. 15, the founder and president of the EEIA, Toby Mack, issued the following urgent message to the equipment industry. Details are finally emerging on the Democrat $3.5 trillion “human infrastructure and climate change” tax and spending package. We’re focused on the energy-related parts of the proposal coming from the House Energy and Commerce Committee. Language was released yesterday which the Committee will be considering this week. Bottom line: a major provision of the bill is aimed directly at eliminating natural gas and coal fired electricity generation unless the generator is equipped with carbon capture, but with perverse incentives to discourage that from happening. The mechanism is called the “Clean Electricity Performance Program” which amounts to a byzantine and unprecedented system of money grants paid to, and financial penalties assessed on power producers, based on their year-over-year increase in production of “clean electricity”. “Clean electricity” is defined as generation that emits no more than .1 metric tons of CO2 equivalent per megawatt hour generated. Since the average natural gas plant emits about .4 metric tons/mWh, for its output to qualify as “clean electricity”, 75% of its CO2 emissions would have to be removed. The formula would grant the power producer $150 for each megawatt hour of increased “clean electricity” generated, but only if the increase is at least 4% above the previous year’s production. The grant applies to the amount of “clean electricity” produced that is above a 1.5% increase threshold. There is no upward limit on the amount of such electricity eligible, or the dollar amount of award. The bad news is a penalty that applies if the producer does not increase its clean electricity output by at least 4% from the previous year. If they fail to reach that 4% level, they would be required to pay the Department of Energy $40 per megawatt hour of “shortfall” from a 4% increase. So if you are a power producer that generates only from natural gas, 4% of your megawatt hours of output would be subject to the penalty. READ MORE>>

Are Things Getting (Slightly) Better?

Are Your Sales (Finally) On The Increase? It seems as though there’s a slight sales surge going on, but no one’s talking about it much — probably because no one wants to jinx it. The economy is still very fragile, the world is even more fragile, and with elections taking focus, politicians of all sorts are finally realizing that jobs and small businesses are the priority. That only took three years. I believe there’s going to be at least two years of feast — that there will finally be some semblance of economic recovery for those affected. (It’s important to note that many businesses have thrived through these times.) QUESTION: Will you get your fair share of this economic surge? ANSWER: Only if you’re ready. One notch more ready than your competition. REALITY: Most companies (maybe you) cut everything and everyone. Time to get a new mental outlook for what’s ahead. CHALLENGE: What are you doing to prepare for the years ahead so that you can take full advantage of the sales surge? Here are the 10.5 things you need to do as the economy begins to rebound: 1. Make certain everyone’s attitude has shifted to positive. Not just salespeople. Everyone. If you make a big sale and the customer calls for help and gets a grump in accounting or shipping, you lose. 2. Maintain pricing to the best of your ability, even if your competitors discount. Price pressure has lowered your profit for the past three years. Enough! Get back to profitability. Anyone who continues to bow to price pressures in these next two years the way they did in the past two years is a fool. As a seller’s market finally emerges, it’s time to hold price and let quality and service shine, let delivery and availability shine, and let value and relationship shine. 3. Be prepared to tell the customer what you can do, not what you can’t do. It’s a new day. People are calling — they want to buy and need help. Say yes! 4. Train everyone to be able to answer every question from a customer. The new world is immediate. Make certain that everyone can help whoever calls. 5. Be service ready not just sales ready. Starting with a YES! Attitude, make certain all employees who talk to customers are both friendly and helpful. READ MORE>>

Movin’ Forward! IEDA Featured in The Media

ACP Interviews IEDA Exec Director Dave Gordon and tells the industry how our association is getting bigger, better and smarter. The following article appeared in a recent issue of the ACP industry magazine. Our business-knowledge and growth vibe is spreading. Enjoy the read! READ ARTICLE>>