Tuesday, December 1, 2020
Home Blog

IEDA introduces Casey Black as new Executive Director

Two months after Kirten Williams resigned from the IEDA Casey Black, from Ada Oklahoma is appointed as the the new Executive Director. Here is the message we received.

Meet the IEDA’s New Executive DirectorOn behalf of the IEDA Board of Directors, I am pleased to introduce you to our new Executive Director, Casey Black. Casey will begin reaching out to all members starting in late May. We are excited to welcome her into the IEDA family. 

BIO:
Casey Black, from Ada, Oklahoma, joins the IEDA team as Executive Director. She has a bachelor’s degree in business management from East Central University and is currently pursuing a master’s degree in business management. 
Casey comes to us with experience in event planning, organization management, and public speaking. Additionally she has worked in the heavy equipment industry for an independent dealer. Casey is excited to join the team and looks forward to getting to know all of our members beginning May 26th. 

Looks like a good fit and cant wait to see how she will run things!

MINExpo 2020 is postponed to 28-30 september 2021

Below you will find the anouncement made:

The National Mining Association (NMA), the MINExpo INTERNATIONAL® 2020 (Show) sponsor, has made its highest priority the health, well-being and safety of exhibitors, attendees, stakeholders and their respective families and colleagues, as well as our event partners in Las Vegas. The advance of COVID-19 around the world has made holding the Show in September 2020 impracticable under the circumstances.

Therefore, in the best interests of all concerned MINExpo INTERNATIONAL 2020, will not be held September 28-30, 2020 in Las Vegas due to the ongoing COVID-19 pandemic. The Show, which is typically held every four years, will be postponed until September 2021. Our current plan is to hold MINExpo INTERNATIONAL® 2021 in Las Vegas.  We are working with our event partners to identify and secure the necessary exhibition facilities and hotel accommodations in Las Vegas for a successful MINExpo INTERNATIONAL 2021. Once the logistical arrangements have been confirmed the new dates will be announced.  We hope to have this information to you in the near future.

We know MINExpo exhibitors and attendees have many questions concerning the postponement, and we will continue to update the website as additional information becomes available.

Thank you for your incredible support, cooperation and patience as we work through this rescheduling process, and for your continued engagement with NMA and participation in MINExpo International. Stay safe and be well.

Conclusion:

I think this makes good sense, Conexpo was allready too far to cancel completely, but now attendees and exhibitors have enough time cancel their plans. Now time to cancel my hotel bookings and look for next year.

The Bauma show in November in China and India are still on the schedule though. Will keep you guys posted on these.

Kristen Williams resigns as Execeutive Director of the IEDA

Today we received a letter from IEDA Executive Director Kristen Williams that she will resign from her fuction. Below yoe can read her letter.

Dear Members, Associates, Sponsors and Friends,

For those of you who haven’t heard the news (or received/read Luke Brenner’s email yet), I am reaching out today to let you know I have decided to forge a new path for myself professionally, and I have given my resignation to the IEDA Board of Directors. I have accepted an Executive Director position with a large association unrelated to the equipment industry, and I am honored to have been offered this opportunity.

I have held the position of IEDA Executive Director for the last 11 years. I am genuinely grateful for the opportunity I have had to work with such an amazing group of talented, thoughtful and dedicated individuals. I have seen first-hand how passionate your IEDA Board of Directors is about supporting independent dealers worldwide, and I have worked incredibly hard to convey their ideas and implement their plans both with you and for you in that time period. I believe that together we have built a foundation for the IEDA you can all be proud of. I hope moving forward the IEDA membership as a whole will continue to realize value in participation and the importance of growth from within — I truly believe good people know good people!

I want you to know I did not come to this decision lightly. I have been committed to and invested in the success of the IEDA since November of 2009. Like all of you, though, I have a family to support and career aspirations to pursue. I will always wish the very best for each and every one of you as you travel your own journey and forge your own path.

Last, I had to make the unfortunate decision this year not to attend ConExpo because this health scare concerns me, and I have family at high risk for complications. I regret having missed an opportunity to see many of you that I didn’t get to see in Orlando! No surprise though — Sheila did a great job for us out there, and our events went very well.

As I write this, we are all moving into unchartered territory and I know personally, I don’t like uncertainty. I like lists and check marks and productivity. I like knowing my family is safe and I can keep them that way. So — in these uncertain times, I am grateful to all of you who have helped me to become stronger, more thoughtful, more independent and more courageous.

Thank you again for this opportunity, for your faith in me over the years and for your friendship.

Sincerely and with much love,
Kristen

I personally think Kristen did an amazing job all these years and I wish her all the best in her new job. IEDA is looking for a replacement and I hope he or she will keep up the good work Kristen did.

How currency exchange rates effect the used equipment business.

Currency fluctuations effecting the Used Equipment Trade

As many of you have probably noticed currency fluctuations have a big effect on our Machinery business. If you are buying or selling overseas alot of the time a different currency comes into play. If that is the case you run some risk because the exchange rate changes constantly. A buyer in the USA for instance buying a machine in Europe will always calculate his buy in US Dollars and can adjust its offer accordingly if it changes negatively. On the other side i fit changes positevly a deal that was impossible yesterday can come together today all of a sudden.

Example:

Today I would like to sell a machine to an American customer. I need a minimum of  100.000,- EUR. for the machine. Toadays exchange rate is 1.125 which means it will cost the customer 112.500 USD to buy the machine but he only wants to pay 110.000 USD. We cannot make the deal unfortunately. A couple of days later however the USD went up against the Euro and the rate is now 1.10 .That means the customer can now buy the machine for 110.000 USD and I will get the needed 100.000 Euro.

RISK MANAGMENT

Buying machinery

If you buy a machine in a country with a different currency you can do 2 things.

  1. Ask the buyer to invoice you in your own currency , he will then take the risk and you know exactly what you pay. Many sellers however will or cannot do this.
  2. Pay in the sellers curency. In that case you have to exchange your currency to pay the seller in his currency. You can do this at your bank but many times its cheaper to use a special currency company. Especially if your company is not set up for this and the bank will charge you a large commission.

Selling machinery

For selling the situation is the same as buying, you can do 2 things.

  1. You can sell in your own currency and then all the risk is for the seller. In many cases though the buyer doent want or will not be able to  pay in your currency.
  2. In those cases you may want to sell in their local currency. If you do that you need cover your risk. You need to know what the cost of this are going to be and what your potential risk is. For instance if you cover your risk and the customer doenst pay you might lose money on the currency deal alone. For this reason many sellers wont sell in another currency. We for instance accept payment in Euros, our local currency and USD. Because we always deal with USD. but we dont accept other currencies for payment.

How to cover you risk

There are several ways to cover your exchange risk if you are planning a foreign exchange transaction.

  • Pay from your local currency account. You probbly dont need anything extra but he charges are usually very high. I woud not recommend this
  • Open up a foreign currency account. On this account you can buy or sell the foreign currency and pay/receive  from there. This a good option as you can still control all the costs, but be aware of the fees your bank charges for this. You need to calculate that in your deal. Also the bank puts you in a certain bracket which will determine the percentage they charge for the transaction. It can make quite a difference if you need to pay 0,6% or 0.2% commission. The brackets are mostly determined by volume. It is worth it to ask your bank to be put in higher bracket as in my experience they mostly dont do it if you dont ask.

Example

If I want to sell USD. 100.000,-  and buy Euro at an exchange rate of 1.10 I will get get the following amounts.

100.000 : 1.102 = 90.744

100.000 : 1.106 = 90.416          

Thats a difference of 328 Euro

  • You can also open up an account at a foreign exchange company like Ebury. Ther you will get your own foriegn currency acoount where you can pay and receive foreign currencies. The rates they give are usually better than at your bank but you need to set everything up with them which in my experience can be quite a hassle. I used their rates to negotiate a better ratebracket with my local bank and now are quite close to these rates.
  • Another way to cover your risk is to hedge foriegn currency. If you deal alot with a certain currency and you expect (big) fluctuations in the future you can hedge the cuurency by buying future contracts. Here is how that works. You have deal with someone that wants to buy a machine but you will only be able to deliver the machine in 3 months. You can  now either sell the currency now and have a debit stance on your account untill the money comes in or you can sell in the future. If you put in the future transaction you will usually pay a (smal) fee/percentage called a dissagio because the risk has to be covered. 

Opportunities

With the fluctuations in the exchange rates there are always opportunities in the air. Aside from the normal flucuations due to economy, interest rates and solvency of a country sometimes other situations arise suddenly. Countries can devaluate their currency or have a Total collapse of the exchange rate. At these times it can be a good time to buy machines in such a country. The devaluation of the Turkish Lira and the collapse of the Brazilean Reaal can been seen as examples where all of a sudden the machines getting really cheap and lots of people started buying there. Be aware of what youre doing though because not everyone there can be trusted.

I will give a quarterly update on the  6 most important currencies and keep a look out for crazy developments in other less known exchange rates.

United States Import Tariffs for European built machines.

This week we got informed that in addition to the USA China import tariffs new tariffs for some European made machine are going to be enforced starting oct 28. The rate for the tariffs is the same 25% as for all of the Chinese machines. It is stated that all self propelling machines with a 360 degree swing , made in Germany and the Uk will be charged. There is no saying how long this will last but I assume untill the fine the Eurpean Union got from the World Trade Organization for the illegal support to Airbus is paid. The fine amounts to 7.2 billion USD and the tariffs also includes alot of other products from the EU. Crazy enough Airbus parts themselve are only charged at 10%.

It might be a coinsedance but Caterpillar is hardly effected by this meassure because they dont produce any of this machines in the 2 countries but it will have a big effect on brands like Liebherr, Sennebogen and Atlas. These companies produce most of their excavators and Material handlers in these countries and will have big trouble getting their new and used machines sold in the USA. We can only hope there will be a solution quick and dont have the same prolongued issues as the Chinese machines.

There was talk of Material Handers can be imported under a different Customs Code because these are no diggers but trash machines. Someone I talked to however had it looked at by a lawyer that says that is not the case. The tariffs can also be collected within 5 years of importation meaning that you are not in the clear when you dont get charged at the moment.

Lots of shipping companies are dong the right thing and advising their customers of the new situation but probably not all will do so correctly and its ultimately your own responsibility.

Below you can see an image with all the products and their tariffs

Corporations Are Co-Opting Right-to-Repair

Opinion: Manufacturers are offering more repair options than ever before. But they still aren’t giving people the true freedom to fix what they want when they want.

“First they ignore you, then they laugh at you, then they fight you, then you win.”

As an advocate, organizer, and campaigner for preschool access, tax fairness, plastic pollution and other causes for the last 14 years, I’ve heard this saying many times. You tell it to your volunteers when it looks like your movement has hit a wall or when it looks like your opposition has the upper hand, and you want to show your teammates that many people have faced obstacles before, and overcome them.

The saying is often true, but some of my savvier adversaries see another option.

“First they ignore you, then they laugh at you, then they fight you… But then, as a last ditch effort, they co-opt you.”

They take your language and your messaging to support something that’s maybe 10 percent of what you asked for (sometimes it’s not at all what you asked for). They roll out this half-step with a lot of fanfare. They co-opt you because you’ve won a critical part of the campaign—setting the public frame around an issue.

This is what’s happening right now with the Right to Repair movement. But before I discuss where we are, let’s talk about how we got here.

Increasingly, companies use a variety of tactics to block access to repair. Companies either don’t sell replacement parts, or they sell them at big markups. They don’t make repair information, such as manuals or schematics, publicly available or open-source. They manipulate the software so that if you get unauthorized repairs done, the device locks until the manufacturer unlocks it. This forces the customer to take any problem to the original manufacturers, who can charge whatever they want. This also means the manufacturing companies have all the cards to decide if, when, and how much it costs to fix something.

The result is we tend to repair broken items less, and buy new things more.

A recent U.N. report from PACE (Platform for Accelerating the Circular Economy) found that electronic waste is the fastest growing part of our waste stream. Not only that, electronic waste is often quite toxic, containing lead, chromium and toxic flame retardants.

That’s why our Right to Repair movement has hit a nerve with people. Too many of us have been quoted $500 to fix a $600 device, or seen our phones slow down with the latest update. Farmers have been getting fed up that before they can fix farm equipment, they have to pay a dealer to digitally unlock the software that makes that equipment run.

Right to Repair laws are popping up all over the country. This legislation, which would require manufacturers to provide access to the parts and service information needed to fix our stuff, has already been raised in 19 state legislatures so far this year. From Nebraska to Hawaii and Oregon to New Hampshire, people just want to fix their stuff.

Progress has been slow. No state legislature has held a full floor vote on Right to Repair. Manufacturers have gone to great lengths to sow uncertainty and stoke fears about repair. Despite the fact that we line up against trillions and trillions of dollars worth of companies every day, we are making progress. And I know from corporate insiders who talk to us that the manufacturers have gone from dismissive to afraid.

That is why we are starting to see them co-opt Right to Repair.

Last year, the farm equipment manufacturers made an “agreement” with their own dealers on a compromise to Right to Repair. This is another way of saying they agreed amongst themselves. Their “R2R Solutions” use our messaging and our stories to make the case for a voluntary agreement to allow customers limited access to some of what we need to repair their equipment. But because the manufacturers still retain control of what we fix, they still decide the terms.

Meanwhile, Samsung has ramped up its number of available “manufacturer authorized” repair providers. Its customers now have better choices when it comes to fixing electronics. Still, Samsung has control and can block repairs on any product or any particular bug that it wants, and many shops still can’t access the official Samsung resources.

When it comes to the industry leader, Apple has recently ended the ridiculous practice of denying service to anyone who dared to have a non-Apple technician swap a battery.

I expect to see more half steps from the corporations as we inch closer to real reform, which could come out over the next several weeks as we enter peak season for state legislative action across most of the country.

Each step forward toward more repair and more options counts. Apple, Samsung, and John Deere offering more repair options is not without value—it does matter. It is also proof that our work to defend repair is working.

But we want to decide, on our own terms, what to fix and who fixes it. As manufacturers try to co-opt that message without giving us the true freedom to fix, it signals that they realize we’re in the right.

I’m not about to stop now. I’m pushing on to the part when I get to say, “Then we won.”



How Tier 4 Impacts Used Construction and Mining Equipment

mission mandates from the Environmental Protection Agency (EPA) have been a major driver for construction and mining equipment manufacturers over the last 2-1/2 decades. And, while the progression from EPA Tier 1 to 4 is helping to reduce pollution, it has also created a lot of concerns for buyers and sellers of used equipment.

We wanted to take a minute to answer some of your buying and selling questions.

Which countries are impacted by Tier 4?

The EPA’s emission standards only apply to the United States. However, similar mandates are in place for Canada and most of Europe. Most experts will agree that Tier 4 affects any company working in a “developed” country. Many less developed countries do not have the government organizations to support these types of initiatives.

Keep in mind that in the U.S. each state may also have additional emission standards.

What equipment is affected by Tier 4?

All new off-highway equipment with 50-hp diesel engine or above must have a Tier 4 engine. The type of equipment doesn’t matter, which means that light towers, generators and air compressor, as well as dozers, motor graders and haul trucks are affected by the EPA’s regulations. This, of course, means you’ll be paying more for new equipment — on average 15 to 20 percent more.

Does used equipment have to comply with Tier 4?

Used equipment is grandfathered in; this means that if the machine was manufactured before Tier 4, it does not need to be brought up to current standards. However, used equipment still needs to meet the standards that were in place when the machine was manufactured.

However, if you field a fleet of equipment, there are some restrictions. You can only use remanufactured pre-Tier 4 engines if they are up to the latest Tier 4 standards, or if you are retiring a pre-Tier 4 engine and replacing it with a Tier 4 engine at the rate of 1-to-1. This means that anytime your fleet replaces a pre-Tier 4 engine with a similar engine, they have to remove another pre-Tier 4 engine and update the machine with a current, Tier 4 Final engine.

For the individual tractor owner, there’s nothing likely to happen. But for the fleet owner, they may see some or all of the following:

Stepping up inspection and enforcement in the wake of these final regulations, so fines could be more likely to occur.Potential profit loss due to required downtime for a vehicle to be upgraded at the last moment.

One note of caution, some projects, typically government related, may mandate the use of Tier 4 complainant equipment only on a project, which may affect your buying options. So, if your work involves public sector work and/or jobs for universities and other large organizations that have adopted Tier 4 standards, or if you are working in a non-compliance zone which is an area that the EPA has determined has poor air quality, you should expect that the machines that you plan on using for that job will have to consist exclusively of Tier 4-compliant machines. If you currently don’t work on those type of projects, then, for the most part, you can avoid being affected by Tier 4 for the near future. In the longer term, of course, Tier 4 will affect every company that owns off-road equipment. Why is that? There will be no new machines available for sale in the United States other than Tier 4-compliant, and unlike with previous tiers, it is not possible to retrofit a Tier 3 machine to Tier 4 standards with currently available technologies.

What rules apply when importing used equipment to the states?

In order to import a unit to the U.S., the engine must have an EPA certificate, otherwise, it will not be allowed to operate. If the unit is going to be for sale instead of operating, the government will give you a special permit for up to one year, but the unit must leave the country in that time.

A machine only as to meet the EPA standards that apply for the year, make and model of that particular machine. So, for example, if you buy a machine overseas that’s a few years old, it may only have to meet Tier 3 standards.

How does this affect exporting equipment?

The EPA does not have any emissions standards for equipment leaving the country. However, the country it’s being shipped to may have its own regulations. In additions, some countries that do not have adequate diesel to support Tier 4 engines. There are kits available that will allow the after-treatment devices to be removed so this equipment can burn higher sulfur fuel and be sold in less-regulated countries. However, someone, the buyer or seller, will have to absorb the added costs.

Will this affect used equipment values?

The short answer is “Yes,” used equipment values will be affected by Tier 4 regulations. It’s still too soon to know exactly how they will be affected. However, many experts speculate that Tier 4 units will not hold their value as well as older machines because of the limited markets where they can be sold.

The Independent Equipment Dealers Association (IEDA) and its members are keeping a close eye on how Tier 4 will affect the used equipment market around the world, today and in the future.

For additional questions, please contact one of our vetted members.

Trip Report: Cat factory Grenoble France for inspection Cat 963K

Late last week an American customer contacted me with the question if I wanted to get involved buying a Cat 963K trackloader in France that was not EPA or CE certified. The buying price was good and we decided that it was a good idea that I would go and inspect this machine.

The machine was located in the city of Grenoble and I immediately started exploring  the best way to travel there. First I checked flights to Grenoble, but that airport is mainly focused on winter ski travel so very hard to get to. I then looked which other big French city was close by and that was Lyon. Ther are alot of flights to Lyon from Amsterdam area but all served by mainline carriers like KLM and they were asking crazy money for a short trip. Even in economy class they asked over 800 Euro! I then brothened my horizon and saw to my surprise that Geneva in Switserland was about the same distance as Lyon and also had much cheaper flights with good timings from Amsterdam airport. In the end with all the low carrier surchrages and upgrades for good seat and priority boarding I paid 275 Euro. I also found a good rental car deal from Hertz and a good hotel for a decent price in Grenoble so I booked it.

After a working day and dinner at home I headed to the airport to catch my 20.35 flight to Geneva. The flight in the end left 45 minutes late so that was not a good start. When I arrived at Geneva I went to the Rental car desk and picked up my keys. Now I had to take the bus to the Rental car garage to pick up the car. The spot they told me the car was in was wrong and all Hertz people allready left for home at 23.00 hours. Found the correct car in the end myself and drove the 150km to Grenoble. Arrived in the hotel at 00.45 and unfortunately at that time the hotel bar was allready closed and no beer in the minibar, just my Luck!

The next morning I woke up  after a good sleep and had some breakfast and a shower. It was just a 10  minute drive to my destination which was the Caterpillar logistics platform that they use for the factory. They kept the machine at this location because of the lack of CE Certification and had it roped off together with a 953K that has the same issues. The people there were very helpfull and offered to take the machine out so I could make a good movie of the machine operating. I accepted obviously and made the below movie.

After the movie it was time to make some pictures and a look around the machine. The machine was in av ery good condition with hardly any wear noticable and a almost new undercarriage. The inside was also really nice and there weren no codes active on the machine. After some more looking around I did notice some dirt in the engine compartment which has to be cleaned off before shipping overseas, nothing major though. It was time to finish my inspection and conclude that all is ok with this machine.

When I walked back I asked if could have a little walk around the yard that they have there and they said it was no problem at all and even showed me around a bit. The location is really beautifull with mountains all around and ,offcourse being from the Netherlands, for me even the smallest hill is allready impresive. They also have their own rail track where they load all the machines produced in Grenoble to be send to the port of Antwerp in Belgium and from there shipped around the globe.

The machines produced in Grenoble that I saw are

Mobile Excavators, full range

Scrap handlers full range

Track Loaders 953K,963K

Wheel loaders 962M to 982M, standard and XE models

Carter service territory to expand into Northern Virginia, Maryland, Washington, D.C. and Delaware

Salem-based Carter Machinery, a leading Caterpillar, Inc. dealer, announced today an agreement to acquire the assets of Baltimore-based Alban Tractor Co., Inc. effective February 4, 2020. In connection with the acquisition, Carter Machinery will become the Cat dealer in an expanded service territory that will now include Northern Virginia; Washington D.C.; Maryland; and Delaware. 

For more than 92 years, Carter has serviced customers throughout the Commonwealth of Virginia and southern West Virginia, becoming one of Caterpillar’s top performing dealerships in the country.

“Carter’s growth is evidence of the caliber of our employees’ expertise and the speed at which they service the industry to ensure customer success every day,” said Drew Parker, CEO, Carter Machinery. “Carter is enthused about expanding our services to more customers with the same commitment that our Virginia and West Virginia customers have come to rely upon.”

The acquisition will strengthen Carter’s position as an equipment leader in key industries, including construction, mining, aggregates, and forestry, as well as expand upon its market leadership in key growth areas such as rental and power generation.

“Alban’s reputation in heavy equipment and power systems is strong and one we’re excited to build upon in the coming months and years,” added Parker.

In addition to Cat® equipment, Carter also supports more than 70 world-class brands. The company will begin customer outreach immediately to ensure seamless transitions and uninterrupted service.

About Carter Machinery
Carter Machinery has been enabling the success of construction and equipment industries for 92 years. Headquartered in Salem, Virginia, the company serves customers in Virginia and West Virginia and employs more than 1,350 employees. Carter’s diverse business portfolio supplies machinery, rentals, power, and product support to customers across many industries, leading the market in construction, mining, transportation, and power infrastructure, as well as supplying Virginia’s largest and best maintained rental inventory.
Learn more at www.cartermachinery.com.

About Alban Tractor Co., Inc.
Established in 1927, Alban Tractor Co., Inc. is a Baltimore-based construction equipment and power systems company and Cat dealer employing a team of 750 across 16 locations serving customers in Northern Virginia, Maryland; Washington, D.C.; and Delaware. The company, is the recognized construction and power systems leader for the mid-Atlantic, supplying power generation equipment to top tier global brands with East Coast operations based in the Capital Beltway region.