May 2008

Constructing Kid Contractors

Fame and Fortune: AEM Calls for Hall of Fame Nominees

WACKER’s Family Grows with Compact Equipment

The Presidents’ Briefing: Terex and ASV Head Honchos Discuss the Latest Acquisition

Kenworth Trucks Green with Efficiency

Letters to the Editor

Constructing Kid Contractors
The Construction Challenge Generates Excitement and Crowns a Winning Team

No, the wooden utility vehicles aren’t the future of Ditch Witch, but the kids operating them are. To spark interest in the construction industry, the Construction Challenge brought together more than 50 student teams to compete at the event held during CONEXPO in March at the Las Vegas Convention Center.

As many parents know, it’s hard enough trying to get your kids to clean their rooms, mow the lawn and take out the trash, but only contractors know how difficult it is to spark young people’s interest in the construction industry. By getting them hooked early with the opportunity to build their own construction equipment and tackle infrastructure tasks, the Construction Challenge brought together more than 50 student teams to compete at the event held during CONEXPO in March at the Las Vegas Convention Center.

An Oklahoma team won the first-ever Construction Challenge, while teams from Illinois, New Jersey, Ohio and Texas also took home top honors in the teen competition, which was initiated by the Association of Equipment Manufacturers (AEM).

First place went to a team from Perry High School in Perry, Okla. Team members were Amy Bieberdorf, Kelsey Cave, Evan Williams, Cassandra Bratcher, Daniel Cross, Dakota Johnson and Trevor Kukuk.

The group’s teamwork during the Road Warrior challenge — with self-built construction equipment — impressed the judges, competitors and onlookers. Each team member won a $2,000 scholarship and a computer.

“Lots of hard work paid off,” team member Evan Williams said.

“We learned time management and problem-solving skills, and we logged lots of hours after school to get ready,” added team member Kelsey Cave.

The team’s manager, technical education teacher Jeff Zagar, said, “We built the whole [Road Warrior] course at school so the team could walk in feeling confident and prepared. We logged our hours and each team member had an average of 112 hours in prep time.”

A total of seven teams won titles and prizes. The team taking 3rd place overall was from West Geauga High School from Chesterland, Ohio, and the only all-girls team in the competition. They also won 1st place in two of the three challenges, Dialogue and Product Development. Their product, a coloring book for young girls, will now be used by the construction industry as an educational tool to introduce more young people to careers in construction.

The teams built pieces of construction equipment, debated other teams on infrastructure issues and created interactive educational products to help spread the word about construction careers and equipment.

The students competed in three challenges:

• Infrastructure Dialogue (30 percent of overall score): Teams researched infrastructure issues (such as drinking water systems, road and highway systems and bridges) and were randomly assigned to answer a policy-related question on one of these topics. They worked with another team to present their answers and then took questions on the topic from the panel of judges and the audience.
• Equipment and Careers (30 percent of overall score): Teams researched, designed and developed an interactive educational resource or product to help teach specific audiences about construction careers and equipment. Teams identified a target audience, designed their product, tested and revised it before traveling to the finals.
• Road Warrior (40 percent of overall score): Teams built one or more equipment devices used during this challenge. First, two teams worked together to finish a partially completed infrastructure that included a road, a bridge and a pipeline. Once completed, the collaborating teams were pitted against each other to move the most gravel across their newly completed infrastructure, using their team-built equipment.
  

The Construction Challenge offered a chance for students, teachers, parents and community leaders to learn more about this growing industry.

They also learned about the industry’s need for skilled employees to deal with infrastructure problems of crumbling bridges, overcrowded roadways and aging water and wastewater systems.

“The response that these students have gotten is better than we dreamed of when we started this project 17 months ago,” said Al Cervero, senior vice president at AEM. “Not only were CONEXPO-CON/AGG attendees checking out the challenges, they were talking about the need to increase awareness of the industry and the great jobs that are available. They were stunned by the creativity and knowledge on display this week by all of the teams.”

Fame and Fortune: AEM Calls for Hall of Fame Nominees

Undertaking seemingly impossible feats, meeting unimaginable deadlines and executing a near super-human degree of efficiency and quality are just a few of the attributes an Associate of Equipment Manufacturers (AEM) Construction Equipment Hall of Fame nominee might possess. The Hall of Fame aims to create a wider public understanding and appreciation of the industry’s role in global economic and social prosperity. It will help focus increased attention on issues such as infrastructure renewal and workforce shortages.

If you are in the equipment or related industries, now is the time to speak up and nominate an outstanding individual, living or deceased, whose achievements were made in the manufacturing, distribution, rental or end-user segments of the construction equipment industry. There is no limit to the number of nominations that may be submitted by a person or organization, but each nomination must include supporting documentation.

An individual’s contributions may be from any aspect of the construction equipment industry such as industry innovation, achievements, leadership, corporate citizenship/social responsibility, sustainability advancement, engineering or invention accomplishments and educational impact. Specific information about the criteria are available at www.aem.org/News/HoF/PDF/NominationForm.pdf.

To ensure that the competition is as fair as it is fierce, the Hall of Fame judging board comprises impartial representatives from major industry associations and includes an advisory panel of experts from throughout the industry.

“We face the challenges of a shrinking workforce, insufficient funding for an overburdened infrastructure and a changing global marketplace. We hope the innovation and creativity exemplified by Hall of Fame members will inspire the next generation to continue our industry’s legacy of productivity, sustainability and growth,” stated Al Cervero, AEM senior vice president.

This AEM-led industry initiative recognizes individuals whose inventions, ideas, leadership and courage have contributed significantly to the growth and strength of our industry and our quality of life. Since its inception in 1993, more than 30 industry leaders have been inducted into the Construction Equipment Hall of Fame.

More information, including official nomination forms and instructions, are on the AEM Web site at www.aem.org/news/ and click on the hyperlinks under the Hall of Fame icon on the right hand side of the page.

Nominations must be delivered by June 1 to:

Nominations
Construction Equipment Hall of Fame, Association of Equipment Manufacturers (AEM)
6737 W Washington St., Ste. 2400
Milwaukee, WI 53214-5647

WACKER’s Family Grows with Compact Equipment

Mini is mighty as WACKER’s new lineup of wheel loaders, excavators and dumpers joins the manufacturer’s light construction equipment offering.

New additions to a family are always exciting. And WACKER, a leading manufacturer of light construction equipment, is excitedly handing out cigars in celebration of its latest arrivals — a new line of compact equipment for the U.S. market. The introduction of the new line represents a major expansion of product offerings to the landscape, rental and construction contractor markets.

The WACKER compact class will include a wide range of compact equipment, including wheel loaders, excavators and dumpers. The new line of wheel loaders includes four articulated units and two all-wheel-steer machines with standard bucket capacities of 0.26 to 1.1 cu yds. The new wheel loaders will also have a complete line of attachment tools available for added versatility on the jobsite.

A broad lineup of five new compact excavators with a wide array of available attachments will also be introduced.

The new excavators will range in size from 1.4 to 8 metric tons and feature models that include everything from a mini-sized unit to units with high-output powerful engines, as well as zero tail swing models for performance in even the tightest confines. Independent boom swing, increased flow hydraulic systems, rubber tracks, dozer blades and a control pattern selection are standard on all models.

According to Jay Baudhuin, compact class product manager, “Our excavators are new to the WACKER line but have been performance-proven in tough conditions both here and in Europe.”

New dumpers will round out the line with three new machines with payload capacities of 2,205 to 13,228 lbs. Baudhuin looks at the new dumper line with high expectations. “Articulated dumpers are becoming the bulk material-mover of choice here in the United States,” he said. “With a range of power and payload options, these new units will prove to be popular with the landscape, rental and contractor markets, as well as others.

“We now have new machines that will lift, load, move, dig, plow, haul and more,” said Baudhuin. “It’s a natural progression for our company’s goals to have the WACKER brand involved in as much of the construction process as possible. And we plan on introducing additional compact equipment to complement the line in the future.”

The Presidents’ Briefing: Terex and ASV Head Honchos Discuss the Latest Acquisition

ASV president Mark Glasnapp and Terex president Bob Isaman discussed the future of these machines and how they plan to work together in 2008.

In early March, Terex Corp. (the third largest manufacturer of construction and mining equipment in the world) announced that it had completed its acquisition of compact equipment legend ASV Inc. — a pioneer of compact track loaders. The transaction was valued at approximately $488 million, but it means a lot more than dollars and cents to ASV’s and Terex’s brand equity. To better understand the importance of the acquisition, Utility Contractor’s Keith Gribbins sat down with Terex president of construction Bob Isaman and ASV president Mark Glasnapp to discuss the evolution of these machine magnates in the small equipment market.

What attracted Terex to ASV and its products?

Bob Isaman — Looking at our strategies, ASV was an opportunity we were really excited about. They offered key strengths in four areas. One was technology.

They have a patented track system that’s unique in the industry. Second was geographic fit. ASV is very strong in North America and Australia. Terex is very strong in Europe, so it’s a perfect fit from a distributor standpoint. And now we have the opportunity to add Terex production lines in Minnesota and potentially increase employment there. So from an operations footprint standpoint, this is a big win for Terex. The third strength is the segmentation fit. Landscaping, turf, small general contractors, homeowners with land — these markets are just a really great fit with the ASV product. The CTL [compact track loader] business is the fastest growing part of that CTL and skid steer market. The opportunity to add that product to our lineup, with its advanced technology and to access that customer space, which is growing at a compound annual growth rate [CAGR] of 23 percent per year, is just a huge opportunity for Terex. And lastly, and I think the most important thing, is the people. They’re from the same entrepreneurial stock that typifies Terex.

Loegering Mfg. is a subsidiary of ASV, also purchased by Terex, which allows you to offer a variety of track solutions. Do you see more track-integration technologies going into the Terex brands?

Mark Glasnapp — Loegering has been focused on developing track solutions for over 30 years. They started out as the first company to offer over-the-tire steel tracks for skid steer loaders. In the late 1990s and early 2000s, Loegering also began to develop work tools and attachments for skid steer loaders. But what really attracted ASV to Loegering in late 2004 was their new VTS [Versatile Track System]. We recognized Loegering’s VTS technology as an ideal opportunity for us to engage the embedded skid steer market by offering a new traction solution to customers that already own a skid steer loader. We knew from our Posi-Track customers that once we put skid steer owners on tracks, they’d never want to go back to tires. It has been a great way to get more and more people to understand the benefits of working on tracks.

As we look to the future, we see many other applications for Loegering track systems — from aerial work platforms to trenchers to other construction and agricultural products, through both Loegering’s traditional distribution channel and on an OEM basis. Loegering is very well-positioned to succeed at doing both.

Caterpillar was a large ASV customer. You supplied undercarriages for Cat’s multi terrain loaders and the company had owned 23.5 percent of ASV stock. Cat has sold its portion with this new acquisition. Will you continue to supply Cat with track loader undercarriages?

Mark Glasnapp — Absolutely. ASV and Caterpillar have a tremendous relationship. In fact, I was a part of Caterpillar’s Building Construction Products Division for many years. We at ASV think of the people we work with at Caterpillar as both friends and business partners. Caterpillar has built five models of multi terrain loaders around ASV track technologies. Obviously, we agree with Caterpillar when they say it’s the right track solution for their customers. And Caterpillar is very supportive of the acquisition of ASV by Terex. They have affirmed to us many times before, during and after the acquisition, that Caterpillar will continue to buy track systems from ASV.

With all of the company’s acquisitions over the years, Terex noted at its CONEXPO press conference that it was really interested in promoting three main brands under its machine umbrella — Terex, Genie and Powerscreen. Will ASV continue to retain its brand identity?

Bob Isaman — We just closed on this acquisition, so we don’t have any decisions on this yet. This is something we’ll tackle in integration. There’s a lot of different ways we could go. I think if you see a Terex-branded ASV product line, it will first be in countries where ASV doesn’t have a presence, like Europe, for example. Before the acquisition, one of ASV’s goals was to become a billion-dollar entity. That’s our goal for them too, no matter what color you paint the machines and where they happen to go.

Kenworth Trucks Green with Efficiency

The green technology in Kenworth’s diesel engines radiates through the truck’s paint, as the diesel-electric system improves fuel efficiency and emissions.

Although the green-eyed monster was once a negative metaphor for greed and envy, the lumbering beast is setting its sights on a new cause — environmentalism.

And major manufacturers are following suit. The latest fuel efficiency news is Kenworth’s medium-duty, diesel-electric hybrid trucks going into production this summer.

Kenworth offers the fuel-efficient, hybrid option on its new T270 Class 6 and T370 Class 7 conventional models and will produce the trucks at the PACCAR plant in Ste-Therese, Que. Kenworth’s goal is to enhance fuel economy by up to 30 percent in pickup and delivery applications and up to 50 percent in utility operations.

The Kenworth hybrids use an integral transmission-mounted motor/generator, frame-mounted 340-volt, lithium-ion battery pack and dedicated power management system.  Advanced powertrain controls monitor driving conditions and automatically select the ideal power mode, smoothly switching among electric-only, combined diesel and electric and diesel-only power modes. Electricity generated through regenerative braking is stored and used for acceleration, assisting the diesel engine.
The hybrid system is monitored through a dash display. As the power requirements for different driving conditions change, the screen constantly updates the driver on system status.

The Kenworth T270 and T370 hybrids use a PACCAR PX-6 engine rated from 200 to 300 hp and 520 to 620 lb-ft of torque and an Eaton six-speed UltraShift transmission. Halogen projector low beam headlamps provide 30 percent more light down the road and three times longer life than sealed beam headlamps. The hood is made of sheet molded composite (SMC) for enhanced fit and finish, while a hood assist device and 90-degree hood tilt opening offer superior access to the engine compartment for ease of service. A one-piece chrome or painted bumper and Metton quarter fenders provide additional durability and impact resistance.

“We’re excited to introduce the new Kenworth medium-duty hybrids into production this summer as we help customers enhance fuel economy and reduce emissions,” said Gary Moore, Kenworth assistant general manager for marketing and sales.

“There is tremendous interest in our Kenworth hybrids, and excellent results have been reported by customers that were part of last year’s limited hybrid production.” Moore noted that purchasers of Kenworth hybrids, equipped with a PACCAR PX-6 engine and the Eaton hybrid system, may qualify for a maximum federal tax credit of $6,000 (Class 6) and $12,000 (Class 7).

LETTERS TO THE EDITOR