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CERTIFIED RENTAL ARTICLES


KOMTRAX Turns 3 Years Old

January 2010
By Bill Chimley
Komatsu America District Manager


Three years ago this month Komatsu began offering KOMTRAX, Komatsu’s Machine Monitoring Telemetrics System, as standard equipment on all Komatsu construction models in North America. This advanced piece of Komatsu technology provides distributors and customers with an abundance of information about their machine’s operation literally right at their fingertips. In the last three years over 20,000 machines equipped with KOMTRAX have been delivered in North America. This Komatsu designed and supported technology has no rival in performance or OEM population worldwide. In honor of this anniversary, let’s reflect on the brief history of KOMTRAX as it relates to the Bramco Companies and Komatsu America and discuss what the future holds.

Prior to Komatsu’s introduction of KOMTRAX in January 2006 Bramco’s familiarity with machine monitoring started with Qualcomm’s GlobalTRACS on its Certified Rental® fleet. While this experience demonstrates Bramco’s early commitment to using the latest available technology for fleet monitoring, there was a caution about leaving this supplier and moving to Komatsu’s new system. In the first year of KOMTRAX’s North American introduction Komatsu America encountered skepticism from customers and distributors alike, regarding the equipment, level of support and commitment to this industry-first technology. KOMTRAX delivered, as factory installed standard equipment, with free communication for five years and with the multiple level reporting functionality.

A Bramco employee questioned me in 2006: “when will KOMTRAX’s levels of functionality and monitoring technology be complete and stop changing.” My answer was, and still is, a succinct “never.” Komatsu’s machine monitoring tool, now widely accepted and validated, will continue to grow in functionality every year, as does the technology in the machine. Komatsu’s history of technological advancement in the construction equipment industry means that KOMTRAX will never be “complete” and will be forever changing.

In year two, Komatsu’s obvious commitment to KOMTRAX galvanized the commitment of resources by Bramco for employing a KOMTRAX/VHMS coordinator at each Company. KOMTRAX grew in acceptance among service departments as a vital step in troubleshooting and machine repair diagnosis.

Parts departments started using KOMTRAX for predictive parts sales opportunities. Rental fleet managers used it to monitor utilization more closely and used equipment managers were able to scrutinize trade-ins, or sell machines based on actual machine histories. Finally, in year two when diesel fuel shot over $4 per gallon, customers and Bramco salesmen had conversations relating to idle time, economy modes and efficient machine operation. The number of customers and distributor personnel managing and relying on KOMTRAX data grew exponentially.

Year three brought a softening of the market that was actually tracked and somewhat predicted using KOMTRAX North American machine fleet monitoring data. For instance, machines in residential construction end use markets reported almost nine hours less operation per week in late 2008—an entire workday gone due to the economic situation gripping North America.

Despite the market drop, the Bramco Companies have delivered almost 1600 Komatsu construction machines since January 2006, undoubtedly an unmatched three-year field population gain in their Company’s long history. Fortunately, almost half of these machines (48 percent or 762 units) are equipped with KOMTRAX, which can assist Bramco in generating better service response with fewer personnel and more parts sales during a period of longer machine ownership. Over half of the North American Komatsu construction equipment field population is now equipped with KOMTRAX. Globally, Komatsu Ltd. has over 160,000 utility, construction and mining machines equipped with telemetric devices.

The time will come, especially with Tier IV emission compliance looming, that the entire field population of Bramco and Komatsu’s machines will be able to “check-in” wirelessly. This event will occur months, or probably even years ahead of other construction equipment OEM dealer fleets. Currently, there are no major competitors who have implemented a telemetrics system on such a complete scale, being standard equipment, or as robust in functionality.

Rarely mentioned Komtrax benefits began emerging in year three for Bramco and Komatsu. We saw more productive and durable machine designs. This was due to better engineering through more accurate machine life cycle monitoring and the precise tracking of abnormality and fault codes globally to increase the speed and accuracy of repair as well as field campaign initiation. The increased level of after sale product support that the distributor could provide using KOMTRAX also increased to unrivaled levels. For customers, KOMTRAX continues to provide a fleet maintenance and management tool that uses real data to accurately determine owning and operating costs, track machine usage history and to generally supply a competitive edge.

The collective future of KOMTRAX and the impact it has on Bramco and Komatsu America’s businesses lie squarely in the present. The continual dedication of Bramco to have KOMTRAX coordinators is vital to the future of providing a competitive advantage in sales, service and parts. As stated before, the evolution of KOMTRAX technology provides new opportunities as well. For example, actual fuel consumption data is one of KOMTRAX’s biggest selling points touted by salesmen to customers on machines with Level 3 functionality.

Today’s opportunities lie in items like the KOMTRAX upgrade of Level 2.5 controllers, which can provide fuel consumption data for every Komatsu construction machine model except motor graders. Brandeis ranks 8th and Power 11th in North America when it comes to upgrading their field fleet to Level 2.5 KOMTRAX. Komatsu also realizes that expanded functionality in scope and scale is vital to KOMTRAX’s future. Items that are currently under evaluation include: alerts triggered from hour meter readings, better mapping utilities and a service vehicle version of KOMTRAX that combines machine and service truck locations for more effective resource allocation.

As an industry leader and in accordance with AEM, Komatsu, along with other CE OEMs, will eventually have to provide machine hours, fuel and other critical metrics to AEM member contractors via a Web service, so contractors can receive such data into their business operating systems.

KOMTRAX, in the last twenty-four months, has grown to become a tool both the customer and distributor depend upon, expect and require. It is exciting to think about the potential of the next three years in regard to KOMTRAX as it relates to Komatsu and Bramco’s relationship. Our shared commitment to this machine monitoring system will continue to pay dividends for years to come.


Technology and Communication Collide in Construction Equipment Rental!

June 2009
By Sean McGuire


Two vital components of business, technology and communication, combined years ago in a new dimension with the Internet. All of us are connected to each other and the world around us via e-mail and the Web. This will only get bigger. Recent research indicates that by 2015 the Internet will be 50 times larger than in 2006. Technology, specifically the Internet, is truly the engine of economic growth in the U.S. and is also our country’s competitive edge.

The rental construction equipment industry is no different, though some would say our construction industry as a whole is one of laggards as far as technology. I beg to differ. Just look at the two most significant emerging trends with construction equipment-machine monitoring (telematics) and machine control (laser/global positioning systems). Both of these advances enhance efficiency.

Telematics-machine monitoring
Certified Rental implemented telematics with the Qualcomm System in January 2005. Telematics allows us to monitor time, utilize equipment on a daily basis, track the location of our rental fleet and most importantly the capability to monitor scheduled service and maintenance. Telematics provide self-protection from abuse and allows optimization of our rental fleet.

In the past few years machine-monitoring systems have become readily available. Komatsu’s satellite-based tracking system, KOMTRAX, is one of the pioneers to provide equipment production information such as fuel usage, idle time and load factors. Komatsu was the first manufacturer to utilize and install such as standard on its machines. We are only now beginning to see how our customers will benefit from all these enhancements, and as with any technology it will only get better.

Machine control
We all have heard of the lack of skilled workforce in the construction industry—especially good equipment operators. Recent technology in construction equipment control could be a blessing in disguise. Although there is need for operational training on these machine control systems and the workload more complex, overall ease of use is making the transition easier. The age of the video game and joystick have combined into heavy equipment operation. Recently Brandeis and Certified Rental management took note of such technology and are studying this emerging fact and how we can incorporate machine control into our rental operations.

Communication - check us out at certifiedrental.com
We recently unveiled our newly redesigned, easy-to-navigate Web site and added features such as monthly specials, equipment specifications and testimonials. The main goal of any Web site is exposure. It is important to promote our equipment and services, build our brand and keep customers coming back. To get noticed by those who need or want what you provide, you need fresh and relevant content. By developing and maintaining the new site in-house, we have that ability, which increases our capabilities and creativity.

We must continue to promote our Company in these tough economic times. We have three types of customers who we are constantly trying to attract. They are: local, transient and out-of state. An out-of-state contractor looking for ways to fill short- and long-term rental needs is the most likely visitor to the site.
Many new words and terms have evolved around the Internet recently such as blogs, Facebook, LinkedIn and Twitter. Where is all this going? The next generation of communication is upon us and we must take note and be prepared.

A recent issue of the Construction Weekly news magazine announced that the editor-in-chief has started using the social media Web site Twitter to “tweet” (a single short 140 character post). Many users like the brevity and constant communication a tweet can offer targeted subscribers. An upcoming article will detail how the construction industry and social media Web sites are being put to work in our industry.

What are the plans for our own Internet communications? Time will tell if we blog or tweet, but one thing is for sure, the Internet is here and going strong in the construction equipment industry. Just as machine technology for monitoring and control have arrived.


A Sleeping Giant Awakens—Again!

November 2007
By Sean McGuire
   

As you travel throughout Indiana, Kentucky, Tennessee and Mississippi today you will find many pieces of yellow construction equipment with a bold red Certified Rental® logo.

It is not by chance that we are in the rent-to-rent business once again. As the story goes Bert Paradis, father of Jay Paradis, was asked to provide Gorman Rupp trash pumps to local contractors on a short-term rent-to-rent basis in the mid-1960s, and hence the start of a business that would transform the way we provide equipment to the construction market.

I was fortunate to work for the new company, Resco Rents, during the 90’s and have seen the rental industry change over time. It was a wise decision for Bramco to get out of the rent-to-rent business in the late 90’s due to a change in our rent-to-rent business model with public money flowing into the industry and rates decreasing. I learned a valuable lesson with the sale of Resco, which is ‘that change is inevitable,’ and change is good.

Change, or stimulating progress, is not easy to do because it confronts us to alter the way we think, act and go after a market—in our case the construction equipment industry.

In 2000 the Company decided it was time to get back into the rent-to-rent market once again, this time focusing on our core products, bypassing the one-stop shop method held by Resco Rents. We now offer customers a short-term rent-to-rent piece of equipment for which we are a distributor. This was a natural niche that could be filled fairly easily. The results show a good and safe return on our investment—a significant part of our vision as a company.

I recently read two books, Built to Last and Good to Great, that gave me insight as to where we are today as a Company as we begin our second century in business. Authors Jim Collins and Jerry Porras shared a similar dilemma and a question that was the basis for these two books: What drives healthy and enduring successful organizations? Bramco is certainly in that category and we all should be thankful we are employed here. Their findings revealed that companies can live off luck for five- to ten years, but not for five- to ten decades. In their study they looked at the timeless principles that separate the truly great companies from the mediocre. First and foremost they found that companies must start with the principle of preserving the core and stimulating progress at the same time—easier said than done. Bramco has always held the belief that we must preserve the core and stimulate progress. Certified Rental® is stimulating progress for Bramco.

We are closing in on the last quarter of our sixth year and Certified Rental® has become a mainstay not only for our Company, but for many contractors near and far. We can break down our customer base at Certified Rental® in 3 ways—local, transient and out of state. Every branch has its core customer base for rental revenue that we strive to consistently do our best with so they become repeat customers, which is the majority of our rental revenue. At the same time we are improving and sharing more information among our branches within our two Companies, Power and Brandeis, thus enabling customers who move across the states we cover to do business with us. This is the transient source of rental revenues. While all of this is happening we also support customers who come from as far away as New York and Arizona to do business with us while they work in our distributor territory.

All in all we are doing something consistently right with all of our customers who do business with Certified Rental®. It has been said many times that people are a company’s best asset. I beg to differ, the right people are your best asset, and within Certified Rental® we have the right people to thank for our success. Yes, we have reliable equipment and reliable service, but the most important asset we have is reliable people, from the rental counter to the rental technicians, from the outside rental representatives to our fleet maintenance manager.

I have also learned through my readings that it is not a goal just to be the best, it is the understanding at what you can be the best at. Certified Rental®, in essence, is taking one idea—to be the best at providing construction equipment on a short-term rent-to-rent basis—and doing it with excellence and imagination. We are in a business that is different than that of our distributorship business, but we must all work together for Bramco as the sum of our parts is greater than the whole.

I can remember back to my days with Resco when we all were given sunglasses one year with the slogan “The Future is Bright.” History does have a way of repeating itself, especially when you stimulate progress as we are doing right now within Certified Rental®.


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