Cybercrime, AI, and the Equipment Dealership

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Cybercrime, AI, and the Equipment Dealership

Guest writer Kevin Landers returns this week to highlight the relevance of cybersecurity in “Cybercrime, AI, and the Equipment Dealership.”

It sounds like the beginning of a bad film, but the reality is that the world of digital crime is continuing to develop as technology evolves. The latest and greatest evolution is AI. As AI unlocks our world to provide us with tools to improve our performance and capabilities in business, criminals are also increasingly using it to target equipment dealerships through sophisticated fraud tactics. Unfortunately, they are leveraging AI’s capabilities for social engineering, deepfakes, and synthetic identity creation. 

Social engineering has always been difficult to protect against, but AI is taking it to new heights. Cybercriminals use AI to automate and personalize phishing campaigns. Phishing is a type of cyberattack that involves tricking people into sharing sensitive information through fraudulent emails, text messages, phone calls, or websites. 

Phishing is the most common form of cybercrime, with an estimated 3.4 billion spam emails sent daily. Notoriously, over 10% of employees worldwide clicked on malicious links, and over 60% of those who clicked submitted a password on malicious websites. And dealerships need to have this on their radar, as employees at small organizations are more likely to click on malicious links. 

AI is changing the face of phishing attacks.

AI-driven tactics enable attackers to craft highly believable emails and messages that mimic real business correspondence, including the language, style, and branding typical of a dealership’s internal or external communications. 

Without the proper training and awareness in the desire to be helpful, do the right thing, or even do what the boss says, criminals can trick employees into clicking malicious links, sharing sensitive information, or transferring funds under the guise of routine transactions. 

Voice cloning technology is particularly alarming for equipment dealerships. Attackers use AI to create convincing voice calls that imitate senior executives or trusted partners. These calls often instruct employees to execute financial transactions or disclose sensitive data, leveraging the urgency and familiarity associated with an executive’s voice.

AI allows criminals to scale these attacks rapidly. Automated AI-powered scripts can launch large-scale attempts to breach systems, such as through credential stuffing, where stolen usernames and passwords are systematically tested across multiple platforms. This capability makes it easier for attackers to find vulnerabilities in dealership systems and gain unauthorized access.

For example, when the CDK data breach and outage took place earlier this year, dealerships suddenly began receiving calls “from CDK support” and emails from “CDK support” that were saying “hey, let us connect remotely with you so that we can get your CDK systems back up and running”. The issue was that these were all malicious actors posing as CDK that were attempting to trick dealerships into allowing them access to their systems. Taking advantage of the situation in seconds, not days.

And don’t underestimate the power of a chatbot. AI chatbots can engage in real-time interactions with employees, adapting their responses to seem more authentic and trustworthy, thereby increasing the success rate of these scams. It can feel like you are having a relationship with a real person or discussing plans with your boss. And with many businesses using tools like WhatsApp to discuss businesses outside of email or your network, it can be easy to fall for things when your attention is distracted. And criminals are taking advantage of this.

How can Dealerships defend themselves from AI phishing attacks?

  • Employee Training and Awareness: Regular cybersecurity training focused on AI-driven threats is crucial. Employees must learn to identify suspicious communications and verify requests through multiple channels. Making training fun, informative, and embedded into their workflow helps make this more effective. IT teams and support services must ensure training is appropriate for dealership scenarios. Training on spotting a fake date might be useful for your personal life but probably won’t help you decide if you should click on a link from what might look like the service manager.
  • Multi-Factor Authentication (MFA): Implementing MFA can significantly reduce the effectiveness of these attacks by adding layers of verification beyond simple passwords or voice recognition. We know this can be annoying, but a good IT solution will leverage ways to make it feel seamless yet powerful to protect.
  • AI-Driven Defense Solutions: We have to use AI to fight AI. Utilizing AI for defense is also vital. Systems that monitor for anomalies in behavior, voice patterns, and transaction data can detect and respond to fraudulent activity in real-time. 

As AI fraud evolves, equipment dealerships must stay proactive, combining advanced technology with a culture of vigilance and verification to safeguard against these sophisticated threats.

Werner’s Tech Leader Talks Cybersecurity

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Werner’s Tech Leader Talks Cybersecurity

An article by a Senior Editor of Commercial Carrier Journal is part of our content this week. Read on for Angel Coker Jones‘ report, “Werner’s Tech Leader Talks Cybersecurity.”

Ahead of an all-hands meeting, the information security team at Werner Enterprises (CCJ top 250, No. 14) combined all video archives of CEO Derek Leathers and, using a cheap AI tool, created a deepfake message announcing to employees that the company was removing all vacation time for cost cutting measures.

Many employees bought it until Leathers walked into the meeting an hour-and-a-half later, reporting that it was a fake AI-generated message. Daragh Mahon, executive vice president and chief information officer at Werner, shared this story last week at the National Motor Freight Traffic Association’s annual cybersecurity conference hosted in Cleveland, Ohio.

He said it was his team’s effort to further educate its employees on the importance of cybersecurity. Cybersecurity, he said, is the biggest thing that keeps him up at night because “that’s the one thing that can shut us down.”

The infosec team – not the corporate training team – at Werner hosts quarterly mandatory cybersecurity training for all employees, including drivers. The team also broadcasts cybersecurity messages across TVs throughout its terminals and regularly performs its own phishing testing on employees, who after three failures (by clicking on a link in a phishing email) must take additional training. If there’s another failure in the next three months, you get written up.

“We’ve taken a very hard-fisted approach to it. Employees don’t enjoy it. Yes, it scares them. Yes, it makes them worried. But that’s sort of the goal. We want them to understand the risk … and it’s not just the company; it’s their own jobs,” Mahon said. “We’re one of the biggest carriers in the United States. If we were down for a couple of weeks, that is an impact on the supply chain… It’s an impact on their jobs. It’s an impact on the prices they and their family pay at the store. So we try to get that message across and say, ‘Hey, we’re not doing this because we’re trying to be assholes. We’re doing this because we want you to understand the gravity of the situation.’”

Presented by Michelin Connected Fleet

While newer technology like AI is a rising cybersecurity concern, Mahon said he’s still most worried about older technologies, especially email because 90% of all attacks on corporate America last year came through email, yet companies use it every day.

Bare metal attacks

While internal attacks via methods like phishing (the top method of ransomware) and even piggybacking into the building with a fake employee ID are more common, he said bare metal attacks are coming.

“It’s never happened but it will. Ransomware never happened until it happened … These are the types of things we have to prepare ourselves for. We have to start thinking like the bad guys,” Mahon said. “I really do believe the bad guys who are targeting the U.S., but in general are targeting trucking, think about how to get onto the truck and utilize the hardware on the truck to cause problems. Not steal the software, not steal the data. How do we take the truck, shut it down, so we can shut down transportation? Or even weaponize it in the worst-case scenario in the case of terrorists.

 Werner is working with all the top providers in autonomous trucking, and he said he has been impressed with their level of focus on securing the operating systems that run robotics and data on the trucks, but he wasn’t impressed with their lack of focus on the possibility of bare metal attacks.

“If somebody were to get on the CAN (Controller Area Network) bus hardware, install their own primitive OS and take over the robotics, they can weaponize the truck to say run into a school bus,” he said. “Do that with a couple hundred thousand trucks across the U.S., which is what autonomy will bring to us at some point, and our enemies have a very easy way to get ahold of us. Let alone just taking over the truck and shutting it down and shutting down transportation in the United States.”

Playing defense

Mahon said he met the founder of a company called Fleet Defender, which offers a hardware device that plugs into the CAN bus to monitor anomalous traffic on and off the truck. Fleet Defender, which is deployed on Platform Science, provides real-time cyber threat detection before security is compromised. Mahon said Werner is working to deploy that across its entire fleet and its network and technical operations centers.

Werner is also moving away from the use of email.

“What does everybody do before Valentine’s Day? They break up,” he said. “We’re doing a campaign (called) ‘we’re breaking up with email,’” when the company rolls out its new corporate media platform in February.

The platform will provide alternatives to email like secure chat channels and secure file sharing through systems like Sharepoint and OneDrive.

“I feel like we don’t need email anymore; we just perpetuate the use because it’s something we’ve gotten used to even though it is the single most dangerous thing we have in our toolbox,” Mahon said. “It will kill us, and every one of us at some point are going to experience a phishing attack.”

Like many others, the company is also on a tech journey, transitioning from legacy systems to cloud-based platforms.

“We’re in this sort of weird place where I have to have perimeter security around the old on-prem stuff … and then as we transition into SaaS space … we have to be ready there as well,” he said.

Though he’s more concerned about on-prem security, he said the shift to the cloud has its own cybersecurity challenges.

NMFTA COO Joe Ohr said a company is only as strong as its weakest link, and oftentimes the weakest link is a third-party vendor. Many breaches come via a third-party avenue.

Mahon said as Werner moves from SaaS to the cloud, his team evaluates third-party providers for things like sales and back-office software not only based on functionality but also reputation. While a carrier can’t abdicate responsibility for their security to those platforms, he said they should still choose vendors that are know for being secure.

“The second thing is vet the hell out of them,” he said. “Every single vendor we sign up, they go through a security assessment … We have anywhere from, depending on the type of company, from 40 to 80 to 100 questions that they must answer, and we go through them line by line and make sure that they have the security we would expect them to have, that they have the controls in place.”

Werner then monitors its vendor platforms and assesses them quarterly for security.

“You have to watch it all day every day because you never know when somebody’s in there,” he said. “In fact, you just have to assume that (a bad actor) is in there.”

Angel Coker Jones is a senior editor of Commercial Carrier Journal, covering the technology, safety and business segments. In her free time, she enjoys hiking and kayaking, horseback riding, foraging for medicinal plants and napping. She also enjoys traveling to new places to try local food, beer and wine. Reach her at AngelCoker@randallreilly.com.

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The Key Tool for Business Retention: Essential Tools for Maximizing Business Retention

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The Key Tool for Business Retention: Essential Tools for Maximizing Business Retention

Ron Slee brings our skills for retention back to the forefront in “The Key Tool for Business Retention: Essential Tools for Business Retention.”

Building and maintaining strong customer loyalty is essential for your company’s sustainable growth. Success depends on keeping your customers engaged with your products and services rather than losing them to competitors. It requires dedicated effort across all dealer departments, from sales and customer service to parts and service teams—anyone who interacts with customers.

Key business retention tactics 

Here are several proven approaches to strengthen your retention rates:

Regular customer engagement

  • Maintain ongoing contact through email campaigns, and make sure anyone who hasn’t purchased in 9 to 12 weeks is contacted by phone.
  • Use past purchases to determine which products should be promoted when.
  • Identify industries that your company works with, and contact more that look just like your current customers.

Listen to customer input 

  • Conduct customer satisfaction surveys to identify any areas in your organization that may need to be improved. 
  • Respond to customers with suggestions or complaints about your operations or products.
  • Implement changes based on the feedback that you receive. 

Provide support after the sale 

  • Outstanding after sale support is important to improve customer retention.
  • Schedule follow up communications, provide maintenance support, share best practices, and recommend related products.
  • Customers stick with a dealer when they feel they can consistently rely on them for parts and service. 

Monitor essential metrics

  • Customer retention – How long you keep customers over a given period 
  • Purchase frequency – How regularly your customers purchase from you 
  • At risk customers – Customers that show signs of leaving you for the competition 
  • Customer lifetime value (CLV) – The estimated total revenue a business can expect from a single customer 
  • Types of purchases – What your customers are buying from you and which products are most popular

Two powerful retention tools

Among the many available strategies, two tools stand out as particularly effective for enhancing equipment dealer business retention: satisfaction surveys and email campaigns.

Customer satisfaction surveys 

Understanding customer needs and satisfaction levels is fundamental to improving retention. Surveys conducted by a third party, especially phone surveys, provide valuable unfiltered feedback about potential issues. Phone surveys achieve a 33% response rate, far exceeding the 2% response rate for email surveys, helping you identify concerns before customers leave you for the competition. Companies that actively respond to survey feedback can boost retention rates by up to 30%. Plus, customers whose issues are addressed become particularly loyal advocates.

Strategic email marketing 

The return on investment for email marketing campaigns can be remarkable. Equipment dealers working with our partner Winsby, for example, see annual ROI ranging from 208% to 10,205% – meaning customers receiving emails spend between $208 and $10,205 more than non-recipients for every $1 invested in email marketing. This exceptional performance largely stems from the ability of emails to boost purchase frequency and retention rates. Regular emails keep your brand top of mind, showcase your offerings, highlight service quality, and reinforce your value proposition. Higher purchase frequency typically correlates with stronger retention.

While satisfaction surveys and email marketing can serve as powerful retention tools, their effectiveness depends on proper implementation. Reach out to Winsby today to implement these strategies and begin improving your retention metrics and customer purchase frequency.

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How Construction Equipment Dealers Can Succeed (Or Fail) Faster

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How Construction Equipment Dealers Can Succeed (Or Fail) Faster

Our new guest writers, Jordan Arsenault and Nick Mavrick bring big data to their first blog post for Learning Without Scars, “How Construction Equipment Dealers Can Succeed (Or Fail) Faster.” Don’t dig for data. Let data dig for you.

Big trouble: that’s how we are ending 2024, most economists agree. Inflation, investment bubbles, over-the-top government spending, technology disruption, dealer margin and market share compression and the exceptional market power of two major rental companies. How can your dealership thrive with more instability ahead? 

One may turn to Warren Buffet’s counsel:  “I don’t look to jump over seven-foot bars. I look around for one-foot bars that I can step over.”

In your construction equipment dealership, would you allocate capital differently if you knew how much revenue and profits were created by the top 10, or 20 percent, of your customers? What if you learned that 5% of your customers generated over 70% of revenue & profits? Or that your top customers’ life-time value was 5X or 10X larger than that of your average customer?

Consider the following construction equipment cases:

  • Major construction equipment service company:  23% of customers, 87% of revenue, each customer generates $43k annually, 5X greater than the next customer group.
  • Major equipment rental company:  3% of customers generate 62% of revenue and profits – only 15 customers per store, that each generate $250k annually 4X greater than the next customer group.
  • Major construction equipment dealer:  11% of customers, 83% of revenue and profits.

 

None of the above had been using the proportionality of their data for 80/20 capital allocation, to manage their salesforce, or in short – replicate what they are doing well, to do more of it – faster. They kept going by raising prices, cutting employee expenses, and taking incremental actions while remaining perilously close to a vicious doom cycle. Why?

  • While successful relative to their peers, they shared attributes that imperiled ability to replicate their successes by leveraging data:
  • Transaction driven, not data driven  day-to-day busyness, obfuscated strategic actions, for tactics.
  • Siloed data, and disparate systems:  DBS (dealer business system), CRM, Business Intelligence, data warehouses, ERP and more. They lacked a unified dataset.
  •  Dirty data:  garbled customer data was inconsistent by account; making it difficult to distinguish between decision-makers and influencers.
  • Tactically use of prospect databases and rarely used industry intelligence:  not linked to internal data.
  • Business Intelligence:  relegated to answering obscure ‘jeopardy’ like questions for their OEMs or ownership.
  • Territory management:  based on geography, rather than market opportunity goals. This resulted in an inability to rank salesperson performance, or more importantly evaluate share-of-wallet penetrations with high value customers.

 

For the solution, one may turn to Charlie Munger for advice:  “There is an old two-part rule that often works wonders in business, science, and elsewhere: take a simple, basic idea and take it very seriously.”

To solve data problems, BiltData.ai has constructed a Continuous Insights portal to transform a dealer’s data to quickly identify patterns and establish proportionality – which are referred to as the 80/20 rule. 

  • Data is cleansed, structured, and enriched to provide a unified hierarchy and dataset for strategic use.
  • Quick-decision dashboards for customers and prospects drive action focused on Best, Future Best and more, resulting in laser-like focus to gain and secure profitable business, faster.
  • Geographic dashboards address sales coverage deficiencies that were not previously visible, and rank sales performance. 
  • Smart leads help build market share faster by enabling multi-dimensional prospect insights, and visual filtering. This saves time by moving from cumbersome spreadsheets to one unified dataset, where action can be taken in 2-3 clicks.

The results: construction equipment companies can move quicker to take the most ‘profitable’ share, grow best customers, find the best prospects, grow share of wallet by upselling, launch new markets profitably and adopt new sales and pricing models

“In God we trust; all others bring data.” -W.  Edwards Deming

Relentlessly pursue data for your continued success!

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Jordan Arsenault is Board Chair of BiltData.ai. Jordan is the Board Chair of BiltData.ai. With an extensive career in sales management, Jordan is an expert in using data to accelerate revenue and ROI. She currently serves as Chief Strategy Officer for Southland Resources, a leading raw material energy producer.

Nick Mavrick is the CEO of Biltdata.ai. With decades of B2B data science expertise, BiltData.ai provides a tailored industry solution. We enable the construction equipment industry to get going with X-Ray vision for customer and prospect data. Nick is an expert in CRM and data mining, as the cornerstone to segmented marketing, strategy, operations and driving ROI. He has vast experience in supporting B2B sales teams including VOLVO Rents, NationsRent, multi-brand dealers and more.

The Dangers of Flatbed Trucking and How Safety Can Be Improved

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The Dangers of Flatbed Trucking and How Safety Can Be Improved

Guest writer Dan Shipley gets down to the nuts and bolts of the conversation around safe operations with “The Dangers of Flatbed Trucking and How Safety Can Be Improved.”

Flatbed trucking might not always get the spotlight, but it’s one of the backbones of our freight industry. It’s the reliable workhorse responsible for moving heavy machinery, construction materials, and those oversized loads that simply can’t be boxed into traditional trailers. However, with all its importance, flatbed trucking is also one of the riskiest jobs on the road. The very nature of hauling on an open, flat platform creates unique challenges, ones that affect not just the drivers but also the safety of everyone around them on the highways. In this discussion, we’ll explore why flatbed trucking is so dangerous, present some eye-opening industry data, and dig into ways we can make it safer—because when it comes to transporting heavy goods, safety should always come first. Flatbed trucking is dangerous primarily because of the way cargo is carried. Flatbeds don’t have walls or roofs to contain their loads, which leaves securing the cargo entirely up to the driver. Unlike enclosed trailers, where even if a load shifts it remains contained, flatbed loads are vulnerable to shifting, sliding, or even falling if not properly secured. This makes securement one of the most critical aspects of flatbed trucking. Drivers spend a considerable amount of time fastening heavy-duty chains, straps, and tarps to keep everything in place, but this also exposes them to injury risks. Whether it’s climbing up onto the trailer, securing oversized loads in unpredictable weather, or dealing with unforeseen road conditions, flatbed drivers face a different kind of danger compared to other truckers.

And let’s not forget about the elements. Flatbed drivers load and unload outdoors, come rain or shine. In the summer, they’re sweating it out under the hot sun; in winter, they’re trying to handle freezing chains with numb hands. High winds, rain, and snow also make securement much more difficult, adding to the potential for accidents. This exposure not only affects securement quality but also contributes to slips, falls, and general fatigue. A tired, overworked driver is a more vulnerable one, and flatbed trucking certainly takes its toll physically. The loads themselves are another significant safety concern. Flatbeds are used to transport a wide range of cargo, often heavy, oddly shaped, or oversized. Because of this, the center of gravity on a flatbed can be uneven, leading to a greater risk of rollover accidents. Rollovers can be catastrophic, both for the driver and others on the road. Imagine trying to navigate a winding road or making a sudden stop with a poorly balanced load—the results can be disastrous. This makes weight distribution one of the most important yet challenging aspects of flatbed trucking.

When we look at the statistics, it’s clear that flatbed trucking is no small feat. According to the Bureau of Labor Statistics (BLS), truck drivers already have one of the highest rates of occupational injuries and fatalities among U.S. workers, and flatbed trucking is at the top of that list. Studies from the National Institute for Occupational Safety and Health (NIOSH) show that nearly 50% of injuries among flatbed drivers are due to falls, while overexertion is another significant factor. Flatbed drivers often find themselves hauling heavy chains, securing awkward loads, and maneuvering on top of slippery surfaces—factors that all contribute to higher injury rates. The Federal Motor Carrier Safety Administration (FMCSA) also reports that flatbeds are more likely than other types of trucks to experience rollovers, with uneven loads being a key cause. And the Insurance Institute for Highway Safety (IIHS) notes that flatbeds account for about 10% of truck-related fatalities each year, a significant number given their smaller share of the overall trucking fleet. So, how can we make flatbed trucking safer? For starters, it’s about smarter securement. Load securement is both an art and a science, and the industry has been developing more advanced techniques and tools to help drivers get the job done right. Better materials for straps, chains, and tarps, along with automated tensioning devices, can make a real difference in keeping loads stable while reducing strain on drivers. Simple things like adding side barriers or rear stops can provide an additional safety net, helping to prevent items from shifting or falling off during transit. It’s a practical step, but one that could have a significant impact on overall safety. Driver training is another key factor. Comprehensive, hands-on training that covers everything from load securement to understanding weight distribution can greatly enhance safety on the road. Refresher courses can ensure that drivers stay sharp and up to date with the latest techniques and regulations, which is crucial in a fast-evolving industry. When drivers are well-trained and confident in their skills, they’re better equipped to handle unexpected situations, whether it’s a sudden stop or a shifting load on a tight curve. Personal protective equipment (PPE) also plays a significant role. It might sound simple, but having the right gear—such as non-slip footwear, helmets, gloves, and protective eyewear—can help prevent injuries. Tarping tools that reduce manual lifting can also cut down on musculoskeletal injuries, which are all too common among flatbed drivers. It’s not just about loading and driving; it’s about making sure that drivers have what they need to stay safe while working on and around their rigs. Technology can also help bridge the gap in safety. For example, load sensors that monitor cargo stability during transit can alert drivers to potential shifting before it becomes dangerous. GPS and telematics systems can provide real-time updates about road conditions, allowing drivers to adjust their routes or speeds to avoid hazards. These tools are not just add-ons; they can become vital parts of a driver’s safety toolkit, making a significant difference in accident prevention.

In the end, flatbed trucking is always going to be a challenging job. But it’s also an essential one. Making it safer isn’t just about ticking boxes on a safety checklist—it’s about protecting the drivers who keep our economy moving. It’s about ensuring that each trip, whether it’s across town or across the country, is as safe as possible. With better securement practices, enhanced training, and more robust safety measures, we can make flatbed trucking not just a job, but a safer career choice for the many hard-working drivers who take on this crucial task. It’s time to recognize the unique risks of flatbed trucking and invest in solutions that protect drivers, cargo, and everyone on the road. Because when it comes to hauling heavy loads, safety isn’t just an option; it’s a necessity.

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AI, Unknown and Optimism

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AI, Unknown and Optimism

Guest writer John Dowling addresses one of the current topics that is at the forefront of the international conversation, “AI, Unknown and Optimism.”

Amidst the hype and excitement about Artificial Intelligence, it’s important to remember its potential to revolutionize the heavy equipment industry. Whether you view it as a significant technological leap or harbor concerns about its implications, we can all agree that AI is a new frontier full of possibilities. There’s much to learn about harnessing the power of artificial intelligence to drive the success and profitability of heavy equipment dealerships, and this journey is one filled with unknowns and optimism.

 

There are two routes when choosing an AI platform. I’m not an IT expert, so I won’t be using technical jargon. I apologize in advance if I don’t use the correct terminology. Let’s refer to one option as “captive AI” and the other as “noncaptive” or “free AI.” By captive AI, I mean that the manufacturer’s AI platform will be limited to its branded products, providing support exclusively for its dealers. 

 

On the other hand, noncaptive or free AI, which we can also call unlimited AI, refers to a third-party AI provider that is not restricted to a single manufacturer or data source but can access data from all dealer sources.

 

Now that we’ve defined ‘limited’ and ‘unlimited’ AI, it’s time to discuss their advantages and disadvantages. This knowledge will empower you to make an informed decision about Artificial Intelligence, a decision that could significantly impact your dealership’s future.

 

While this blog may not provide a definitive answer, it aims to equip you with the knowledge to make informed decisions. We’ll discuss the benefits and concerns that dealers face when they begin to explore this new and unknown technology, guiding you through this complex but promising terrain.

 

Let’s start with the advantages of utilizing AI. These benefits include increased parts sales, higher technician recovery rates, reduced employee onboarding time, decreased time spent processing warranty claims, less time needed for receiving technical support from the OEM, and improved data utilization. 

 

During a conversation, Cristoph Nathan, the Executive Director of Product Support for Kubota, made the point that AI does precisely what a human can do by processing data but does it more efficiently. Joel White with Digital Iron stated that AI can do the “laborious tasks,” freeing time for the dealership’s employees.

 

I was trying to update my Air MacBook the other day, but I got an error message saying I did not have enough memory to download the latest update. While cleaning up my MacBook and deleting unwanted text messages and duplicated pictures, I was just dumbfounded by the amount of data I had. Dealerships and manufacturers are no different. They have years and years of data stored on a server somewhere, but there is no good or efficient way to access and use it. And that is where AI comes in. The benefit and power of Artificial Intelligence is the ability to effectively and efficiently utilize your data to deliver better customer service and increase profitability.

 

The benefit of using a limited AI platform, especially one provided by a manufacturer, is that dealers don’t need to go through an integration process. This means they don’t have to upload manuals or involve third-party providers to access their data. The advantage of this limited platform is that the dealer’s data is not used, thus there is no risk of compromise.

 

However, before we get too excited, we should consider whether this is the right direction to go in order to protect our data. There is always a drawback to consider. When I discussed Tech Assist, Case IH’s AI assistant, with Jim Hudson, a Regional Service and Parts Sales Manager with Case IH, and some Case IH dealers, the Case IH dealer’s technicians expressed that they see value in the Tech Assist platform. It reduces the time needed to find information to diagnose a piece of equipment, ultimately increasing technician efficiency in the long run.

 

Kubota has also been successful with an AI platform, but there is a drawback. The platform can only search Kubota manuals, and the same limitation applies to Case IH dealers. This is because the AI platform is restricted to the data of specific manufacturers. For multi-line dealers, a separate AI platform would be needed for each manufacturer they work with. An unlimited or third-party AI platform would allow technicians to search all manufacturers’ manuals with just one login, instead of needing a separate login for each line of equipment.

 

I recently conducted a training video emphasizing the importance of estimating every job. Service managers often don’t estimate every job because determining the repair time for a piece of equipment is not convenient or accessible in the heavy equipment industry. Kubota’s upcoming AI iteration will include a service estimate platform. This exciting development will assist Kubota dealers in increasing technician recovery rates and profitability.

 

I believe Kubota is moving in the right direction, and I’m excited to see this AI in action. However, there will be a downside to this next iteration. The issue will be that the AI will be limited. Kubota’s platform and any other manufacturer will only be able to use their data, which will be based on warranty data. This is a contentious topic. Manufacturers think their warranty flat rate times are generous and accurate, but dealers don’t believe that.

 

But this blog is not about warranty reimbursement rates. The point is that the manufacturer’s AI platform is limited to warranty reimbursement rates. So, their estimating model will be based on what the warranty reimburses the dealers, not actual customer billing times. 

 

It’s important to remember that a manufacturer’s AI platform has the advantage of not being integrated with the dealer’s data. However, the downside is that the manufacturer’s platform is restricted to only their data. This means that using AI to estimate service jobs relies on the manufacturer’s warranty reimbursement claims, not the repair times the dealer has previously charged customers.

 

After completing the training video on estimating every job, I realized how practical and beneficial it would be for AI to assist dealers in estimating jobs. I contacted Joel White, the Head of Marketing at Digital Iron, an AI platform based in Belfast, Ireland. I inquired whether they could develop an AI model to extract data from the dealer’s business system and help the service manager estimate service jobs. 

 

Joel arranged a meeting for me with Ciaran Gillen, the founder of Digital Iron, to discuss this further. Ciaran confirmed they could build a model to extract the necessary data from closed work orders and assist the service manager in estimating customer repairs.

 

A third-party AI platform not limited to one manufacturer’s data will allow service managers to pull from the data within the dealer’s business system. The third-party or unlimited platform will not be limited to just one brand or manufacturer but could be utilized to estimate every line or brand of equipment a dealer sells. However, the drawback is that the dealer has to give the third-party AI platform access to their data to build the model. 

 

AI is only as good as the data it has access to. There is no limit to what AI can do for the heavy equipment dealership. But we must remember that AI will only be as good as the data it can learn from. Manufacturers’ AI platforms will be an easy way for dealers to integrate AI into their overall business practice. However, the manufacturer’s platform will be limited only to the manufacturer’s equipment and data.

 

If your dealership only carries one line of equipment, using the manufacturer’s limited platform may be the way to go, but what about dealers with multiple lines of equipment from different manufacturers? We could all see the benefit of a third-party or unlimited platform.

 

If you choose to go with a manufacturer’s limited platform, there will be no need for integration or allowing the AI platform access to your business system and data. However, as stated before, Artificial Intelligence is only as good as the data it accesses. The more data and the higher quality of the data that AI has, the more productive and valuable it will be. 

 

Maybe the third-party AI platform is the way to go. But before you make that decision, you must remember that you will need a trustworthy AI service provider because they will need access to your data to work efficiently and profitably. No matter what direction or road you take with AI, it will be full of unknowns and optimism.

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Why India is Poised to Become a Global Manufacturing Hub

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Why India is Poised to Become a Global Manufacturing Hub

Our new guest writer Sanjay Pendharkar is a seasoned professional with over 30 years of experience in sales and business development across India and South East Asia. His expertise spans market research, channel partner management, and strategic business growth. After 32 years with JCB, Sanjay founded his own consultancy in 2020, advising multinational corporations in the earthmoving, material handling, concrete, and metal processing equipment sectors. He excels in developing engagement strategies, sales forecasting, and competitive analysis. An industry thought leader, Sanjay contributes articles to niche magazines and serves as a jury member for prestigious awards, keeping him at the forefront of industry trends and innovations. His first blog post for Learning Without Scars is “Why India is Poised to Become a Global Manufacturing Hub.”

Introduction

By 2024, India has solidified its position among the top 7 global manufacturing nations, with the sector accounting for nearly 15% of its GDP. With increasing investment, a skilled workforce, and supportive government policies, India is emerging as a key player in global manufacturing.

The global landscape for manufacturing is undergoing a seismic shift. Countries and multinational corporations (MNCs) are reassessing their supply chains and production bases in response to economic, political, and technological changes. India, with its expanding industrial base and strategic policies, has gained attention as a formidable contender for global manufacturing.

Historical Context

India has a rich history in manufacturing, with industries like textiles and steel forming the backbone of its economy. In the mid-20th century, India was among the world’s leading textile producers, and sectors like steel, automobiles, and machinery began to flourish post-independence. 

Despite this promising start, India’s manufacturing potential remained largely untapped on a global scale. Factors such as bureaucratic hurdles, lack of infrastructure, and limited foreign investment slowed growth. India’s manufacturing was also overshadowed by rapid industrialization in China, which became the preferred destination for MNCs.

Current Landscape

Economic Growth

India’s economy continues to be one of the fastest-growing major economies globally, with an average annual GDP growth rate of 6.8% over the past five years. The International Monetary Fund projects India to be the world’s fastest-growing major economy in 2024-2025, with an estimated growth rate of 6.5%. A young, vibrant population coupled with a burgeoning middle class is creating a favourable environment for manufacturing, with rising domestic demand for goods and services.

Government Initiatives

The Indian government has launched and expanded several initiatives to boost manufacturing:

  • Make in India 2.0: Launched in 2022, this program builds on the original 2014 initiative, focusing on 27 sectors with an emphasis on cutting-edge technology and sustainability.
  • Production-Linked Incentive (PLI) Scheme: As of 2024, the scheme covers 14 key sectors with an increased outlay of $30 billion.
  • Ease of Doing Business Reforms: While the World Bank discontinued its Ease of Doing Business rankings in 2021, India has continued to implement reforms, with the government claiming significant improvements in areas such as starting a business, getting construction permits, and cross-border trade.

Infrastructure Development

India continues to invest heavily in infrastructure development:

  • $1.8 trillion allocated for the National Infrastructure Pipeline (2019-2025)
  • 375+ operational Special Economic Zones (SEZs) as of 2024
  • Significant progress in industrial corridors like the Delhi-Mumbai Industrial Corridor, with several nodes operational

Key Advantages of India

Skilled Labor Force

India’s skilled labour pool continues to grow:

  • 550 million people of working age
  • 1.8 million engineering graduates annually
  • World’s largest youth population (aged 15-24)

Cost Efficiency

India offers significant cost advantages:

  • Labor costs 15-50% lower than in China
  • Competitive real estate and utility costs
  • Abundant natural resources

Technology and Innovation

India is making significant strides in high-tech manufacturing:

  • 4th largest auto industry globally, with a strong push towards electric vehicles
  • Growing aerospace manufacturing sector, with indigenous projects like Tejas fighter jets
  • 2nd largest smartphone manufacturer globally as of 2024
  • Emerging hub for semiconductor manufacturing with major investments announced.
  • Rapid advancements in 5G technology, artificial intelligence, and quantum computing, further enhancing manufacturing capabilities.

Global Supply Chain Realignment

Shift from China

The trend of companies diversifying their supply chains away from China has continued:

  • According to a 2023 Deloitte survey, 70% of surveyed companies were considering or actively shifting manufacturing out of China, with India being a top alternative destination.
  • India captured 33% of relocating companies from China between 2021-2023 (JP Morgan Research, 2023)

Trade Relations and Market Access

India’s strategic location and trade agreements offer significant advantages:

  • Access to domestic market of 1.4 billion consumers
  • Free Trade Agreements with ASEAN, Japan, South Korea, and others
  • Part of Quad Alliance, strengthening ties with US, Japan, and Australia

Sustainability and Future Trends

Sustainability Initiatives

India has reinforced its commitment to sustainable manufacturing:

  • On track to achieve 500 GW renewable energy capacity by 2030
  • Net-zero emissions target by 2070 reaffirmed at COP28.
  • National Green Hydrogen Mission launched in 2023, aiming for annual production of 5 million tonnes by 2030.
  • National Electric Vehicle Policy 2023 targeting 30% of new vehicle sales to be electric by 2030.

Digital and Industry 4.0

India is embracing the fourth industrial revolution:

  • $2 billion allocated for AI, Machine Learning, and IoT under the Digital India initiative.
  • ‘Industry 4.0 India’ platform expanded to include 100,000 MSMEs by 2024
  • 25% of large manufacturing plants have adopted Industry 4.0 technologies as of 2023.

Challenges and Solutions

While India’s manufacturing potential is immense, challenges remain. However, significant progress has been made in addressing these issues:

Infrastructure Bottlenecks

  • Challenge: Ongoing need for improved transport and power infrastructure
  • Solution: 
    • National Infrastructure Pipeline (NIP) expanded to $1.8 trillion for FY 2019-25
    • ‘PM Gati Shakti’ – National Master Plan for Multi-modal Connectivity launched in 2021, with a digital platform to ensure integrated planning and implementation of infrastructure projects.
    • 11 industrial corridors being developed across the country.
    • Dedicated Freight Corridors (Eastern and Western) operational since 2021, significantly reducing logistics costs.

Skilling the Workforce

  • Challenge: Continuous need for upskilling to meet evolving industry demands
  • Solution: 
    • Skill India Mission 2.0 launched in 2021, focusing on digital skills and Industry 4.0 technologies.
    • National Education Policy 2020 emphasizing vocational education and skill development.
    • Pradhan Mantri Kaushal Vikas Yojana 3.0 (2020-2024) aiming to skill 8 million youth.
    • National Skills Qualification Framework (NSQF) aligning skills with industry requirements.

Regulatory Environment

  • Challenge: Complex regulatory landscape
  • Solution: 
    • Implementation of Goods and Services Tax (GST) has simplified the tax structure.
    • Labour reforms: 4 labour codes consolidating 29 central labour laws, implemented in 2022.
    • Reduction in corporate tax rates to 15% for new manufacturing companies

Supply Chain Resilience

  • Challenge: Need for robust and flexible supply chains
  • Solution: 
    • Production Linked Incentive (PLI) Scheme expanded to 14 key sectors with an increased outlay of $30 billion.
    • Self-Reliant India (Atmanirbhar Bharat) initiative promoting domestic manufacturing and reducing import dependence.

Adapting to Global Events

  • Challenge: Disruptions caused by events like the COVID-19 pandemic and geopolitical tensions
  • Solution: 
    • Rapid digitalization of manufacturing processes to enable remote operations
    • Diversification of supply chains to reduce dependency on single sources
    • Government support through economic stimulus packages and policy reforms to boost manufacturing sector resilience.

Conclusion

As the world seeks resilient, diversified, and technologically advanced supply chains, India offers a compelling proposition. For multinational corporations looking to optimize their manufacturing footprint, India presents an opportunity that is hard to ignore. The time to invest in India’s manufacturing potential is now – those who act early stand to gain the most from this rising global manufacturing powerhouse.

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What Would You Have Done Differently?

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What Would You Have Done Differently?

Guest writer Tom Barry is here today with a tale from the trenches: “What Would You Have Done Differently?”

As the saying goes sometimes, you learn the hard way…

The business brevity concise version of my learning takeaway was – ‘Trust but Verify’!

I admit that I should have learned and internalized that sentiment from…

President Ronald Reagan well over a decade earlier!

The situation stemmed from my then-early decade-long background in construction equipment as well as the IT/ERP Software Industry, wherein I was contracted to advise a small Rent to Rent (RTR) business on their desired interest to become more competitive and profitable. Towards that end, the business strategy evolved under my guidance and expanded to become an OEM Distributor, which favorably impacted equipment competitiveness and revenue by way of lower initial acquisition costs and related KPIs. Additionally, I secured a new ERP/CRM software/computer package specifically earmarked for this industry sector endeavor, along with extensive physical facility layout and infrastructure modifications serving to support adding new and complementary OEM lines of construction equipment – and more. 

 

Noteworthy:  Additionally, I also sourced and instituted a construction equipment rental insurance rider policy option for this evolving and poised for expansion rental business so to have full access to rental insurance coverage for all interested renters at the point of a rental agreement. A common option widely available for decades now for those cases when a renter does not have their own blanket policy resources.

On one memorable occasion, a long-standing rental customer of decades for this business had at my direct request emailed over a signed copy of their blanket insurance policy coverage for an equipment rental pick up start planned for later in the day. The blanket insurance policy paperwork they provided was intended to save them the $45 that the optional rental contract insurance rider would have cost them for full repair and total loss coverage. This rental service insurance coverage option was something that I sourced to create a streamlined turnkey ease of rental with peace of mind via an agreement positioned by an outside insurance vendor. 

A few hours later, I was in an upstairs office at my desk peering through an adjacent bay window overlooking 30+ acres of our rental equipment storage lot. It was a beautiful sunny day I recall as I was on the phone with another customer. Unbeknown to me at the time, it turns out that the customer for whom I had earlier rented equipment and received their Insurance Policy Rider for an excavator rental had their truck driver arrive as he had just walked into our downstairs rental office. The customer’s driver was thereupon informed… ‘the excavator unit intended to be rented is all set to go’… ‘the keys are in it’ and our Rental Representative gave him the authorization to proceed to take the unit given their familiarity and frequency of engagement with our yard operations. 

Twenty minutes later, from the vantage point of my desk. I spied a tractor trailer flatbed heading towards an exit from our back yard facility with a boom, arm, and bucket of a loaded excavator still up in the air… (not retracted, settled, blocked, and not fully tucked and chained for legal transport onto the deck). Was he moving the truck to address that matter on more level ground or in the shade… or was this a problem?

ACTION: Immediately, I informed my customer that I was on the phone at the time that I had an emergency to address and that I will call them back asap. I grabbed my binoculars (as I kept them at my desk) and focused on gleaning the drivers’ side door of the flatbed truck 75+ yards away… to gather the phone number and immediately called that number. I told the person that answered that their driver was leaving our yard after loading his truck with the mini excavator with the boom and arm still up in the air… Stating… call them RIGHT-NOW as there are bridges in the area… and hung up to allow them to do just that. 

Just minutes later, I got the return call from the same person that I had just hung up with and heard that the equipment hauling driver had indeed hit the railroad bridge and that ‘the bridge had won!’ Even the track base of the excavator that was chained to the deck had just ripped and sheared completely off the truck bed and was now lying in the road. Thankfully, the truck driver was uninjured, safe, and OK despite being shook up – and no one else was involved – Thank GOD!

Within an hour, the owner of the rental company visited me ‘Hoss’ with whom I was contracted to work. I came to learn directly that he was remarkably close friends with this long-term customer and their family – in fact, they were neighbors for decades. Hoss had just concluded a phone call that he received from the customer/owner that had just been informed of the news from his driver of the now damaged rented excavator by way of an overhead railroad bridge. 

He went on and asked me about the insurance coverage status of the unit. I related that I had the proof of insurance that I requested of the customer right here on my desk and was about to call the customer again for the next steps. As I reached to pick up the proof of insurance paper that was in the rental file, he proceeded to inform me that they (his long-standing customer/friends) sent a forged/fraudulent insurance document to us. This was just verified by the very same customer and person that called him. My mistake was that I never called the customer’s insurance company on the templated form to verify the veracity of the newly signed and dated blanket coverage policy form from this long-standing customer. We were talking about an MSRP: $70K Mini Excavator value.

Result: The mini excavator was clearly totaled due to the unyielding movement specifications of the railroad bridge vis-à-vis the applied physics of 45mph. My owner/president ‘Hoss’ to whom I directly reported had extremely specific questions prepared for me. I shared all the nuances associated with why I sought out and positioned this insurance vendor resource for our business as well as how our Optional Rental Insurance Rider worked. Moreover, and specifically, he was interested to know how such optional arrangements were perfected and electronically memorialized by my required actions at the time of a rental transaction order. 

I related that I was expected to act and execute on an honor basis in accordance with the rules of procedure outlined for this process not to mention the State Insurance Laws already in place which also cover the subject matter. In reply to my shared information and without delay, I then listened to minutes of an early afternoon inebriated diatribe espousing a ‘non-negotiable’ set of specific ideas on what I should do next involving the ‘available’ resource of an Optional Rental Policy Rider program that I had positioned for our business operations. 

To which, I categorically declined all espoused suggestions (vehement directives) that would never hold up to the light of day – at this stage of the known circumstances. I illuminated Hoss that his personal white-hot enthusiastic hatred of insurance companies is not an actionable basis for retroactively effecting the prevention of a bell ringing sound for that which has already rung. I added that I would arrive at the customer’s office within an hour or so and address the matter directly. 

I gathered the rental order file and made two copies. I replied that I would report directly back to him on where we stand upon my return from the customer’s office. Next, I made a couple of calls to put everything in place and prepared the paperwork that I needed and departed. As I passed under the Railroad Bridge in question, I noted the overly impressive stoutness of the engineering design of our still impressive Industrial Revolution! I had to pause and take a picture with my Polaroid Camera at the time.

Upon arrival at the rental customer’s main construction office, I navigated the conversation complete with life-cycle cost values, payback study scenarios, brochures, and productivity estimates for addressing their work on hand and convinced them of a remedy to the matter at hand. I sold them on buying a brand-new identical mini-excavator unit (that I had in stock) to that which was totaled and still in the road… on the spot where it fell. They also bought the ruined mini excavator at an attractive price as a ‘parts order supply’ to support the lifetime of the unit that was here now to be added brand new in their fleet. Fortunately, the ruined unit also qualified for the same new machine OEM subsidized financing given that they were both bought at the same time as the base unit with the destroyed unit ‘as a parts support order.’ 

Sometimes when an unintended bad financial scenario arises, you hold it close to better navigating an eventual financial position that can serve as a Band-Aid remedy that given the circumstances – works out in the long haul.

Although my approach to selling two mini excavators in this creative manner was financially welcoming and conducive to the ultimate bottom line of the customer, our equipment rental business and the OEM’s financing arm, not all was as warm and glowing as the Sun that day. There were consequences going forward. My dismissal of and complete non-compliance with the stated directives on how I was to proceed by Hoss proved consequential. In the not too far off distant future, an unspoken and unwritten basis for my unceremonious dismissal ‘without cause’ was provided via the conclusion of my Independent Contractor Agreement in concert with the favorable terms set forth therein.

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Navigating Risk Management in Today’s Construction Industry

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Navigating Risk Management in Today’s Construction Industry

Today, we continue with guest writer Andy Fanter in his article on “Navigating Risk Management in Today’s Construction Industry.”

The construction industry is changing fast, and so is how we handle risk. Andy Fanter dives into this shift, pointing out a generational gap that’s reshaping things. While older folks were more into taking risks, the younger crowd is playing it safe. This cautious vibe, mixed with dealership consolidation and financial conservatism over the last 15 years, has made sales of new and used equipment more complex and frustrating.

Fanter stresses the importance of planning ahead and assessing risks to reduce headaches across departments. His approach to managing sales risks at equipment dealerships involves pinpointing the best-selling products and boosting orders to meet demand, much like Starbucks expanding its product lineup. Using data analytics, dealerships can better understand market trends, which can help keep customers happy and grow market share.

A standout example of this shift is the parts department losing market share—from over 80% in the 1970s to just 40% in 2020. Fanter blames this drop on poor dealer performance and tracking, showing how crucial parts and service are for customer satisfaction and profits. He believes focusing on these areas, rather than just equipment sales, is key to staying competitive.

Fanter also calls for fresh thinking and risk-taking from industry leaders. Despite tech advances, productivity is lagging, so a new perspective is needed. He suggests looking into the underused subscription service model for machinery as a possible game-changer.

Sharing personal experience, Fanter highlights the need for resilience amid criticism and the challenges of business consolidation. He stresses strong communication and relationships, suggesting more sales reps to handle increasing traffic and road construction issues. A friend’s success story supports this, where hiring more staff improved sales.

Technology and data analysis are crucial for understanding sales trends and optimizing revenue with strategic pricing. Fanter critiques manufacturers for past price hikes that hurt margins, advocating for analytics to boost dealer transactions and customer retention. He even suggests creative distribution methods, like drop boxes for inventory, to overcome dealer pushback. By focusing on dealership profit drivers and continuous evaluation, businesses can adapt to changing environments. This adaptability is also relevant to the electric vehicle sector and the environmental concerns surrounding lithium batteries, pushing companies to use dealer data for sustainable growth.

The pandemic has brought back in-person meetings and revamped training programs with voice recognition tech. An engaging teaching method has students defining key management concepts and tackling questions about ignorance, stupidity, and insanity in management, emphasizing the risks of stagnation and the need to stay adaptable.

Fanter also touches on job issues related to new U.S. computer chip plants and the nuclear energy revival, along with challenges in clean energy regulations and high energy loss during transmission. Economic signs show a rise in housing permits, driven by young adults wanting customizable new homes. This trend encourages builders to offer flexible options, ultimately benefiting the equipment industry as single-family homes increase.

In summary, Andy Fanter’s insights offer a clear guide for navigating the new era of risk management in construction. By adopting innovative strategies, using technology, and building resilience, businesses can thrive amid change and uncertainty. As the industry evolves, so must our approach to risk, ensuring we’re not just ready for the future but actively shaping it.

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A Candid Conversation with Andy Fanter

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A Candid Conversation with Andy Fanter

 

On the Learning Without Scars Podcast, we just had a candid conversation with Andy Fanter. Andy Fanter started Intercast in 1994. The company is a division of Cyclcast, created in 1978 by Dick Fanter. Dick retired in 2019. Andy currently forecasts for over thirty dealers across the US. In his free time, he enjoys the stock market and fishing.

Risk and Generational Shifts

The construction industry is witnessing a fascinating transformation in attitudes toward risk. Andy Fanter’s analysis reveals a noticeable shift from the older generation’s penchant for risk-taking to the younger generation’s more cautious stance. This evolution is shaping how businesses strategize, plan, and execute their operations. 

The conservative financial goals that have  emerged from dealership consolidation over the past 15 years have added layers of complexity to sales dynamics, especially between new and used equipment. Proactive planning and robust risk assessment are becoming indispensable tools to mitigate interdepartmental frustrations.

Strategies for Success

Fanter suggests a keen focus on identifying top-performing products and boosting inventory to meet customer demand, drawing parallels with Starbucks’ successful product expansion. This approach not only meets demand but also enables sales personnel to bundle complementary items, enhancing customer satisfaction. Leveraging data analytics to gain insights into market dynamics is crucial, especially when customer retention and market share are at stake.

The Market Share Conundrum

A striking example of the industry’s challenges is the decline in OEM Dealer parts department market share, from over 80% in the 1970s to around 40% in 2020. This downturn is attributed to poor dealer performance and inadequate measurement. 

Despite maintenance efforts, equipment breakdowns persist, underscoring the importance of prioritizing parts and service for customer satisfaction and profitability over merely focusing on equipment sales.

Embracing Innovation

Fanter calls for bold, innovative thinking among industry leaders, particularly in adopting underutilized subscription service models for machinery. His experiences highlight the resilience required to navigate criticism and manage travel expenses amid business consolidation. Building strong communication and relationships is key, as demonstrated by a friend’s successful strategy of hiring additional staff to boost sales performance.

Harnessing Technology and Data

Technological advancements in computing and data analysis are revolutionizing sales strategies and revenue enhancement through strategic pricing. Fanter critiques manufacturers for excessive price increases in the 1970s, which led to unnoticed margin drops. He advocates for the strategic use of analytics to improve dealer transactions and customer retention. Innovative distribution strategies, like drop boxes for inventory, are proposed, though they face resistance from dealers.

Adapting to Change

In the face of environmental concerns and shifts in the electric vehicle sector, Fanter urges businesses to adapt by utilizing dealer data effectively. The pandemic has also prompted a return to in-person meetings and revamped training programs, with voice recognition technology enhancing learning experiences. Engaging teaching methods encourage students to define key management concepts and address the pitfalls of ignorance, stagnation, and adaptability.

Economic and Market Trends

Employment challenges related to new U.S. computer chip plants and the revival of nuclear energy highlight the ongoing clean energy debate. Economic indicators suggest a rise in housing permits, driven by young adults, with demographic shifts pointing to a preference for customizable new homes. This trend offers opportunities for builders to provide flexible options and for the equipment industry to thrive.

What should we do now?

As we navigate these dynamic times, the construction industry stands at a crossroads of risk and innovation. Embracing change, leveraging technology, and prioritizing customer satisfaction are vital for future success. 

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