Equipment Type

Construction Equipment Executive Institute

Learn the fundamentals of fleet management from our collection of articles and videos. The best in asset management for the construction equipment professional.

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Equipment Executive Articles

Historical data coupled with solid estimates of upcoming work provide the best opportunity to set accurate hourly rates.

It is rate-setting season again. We know about last year, this year is well under way, and we are thinking about the rates we need to change to be successful next year.

We are too focused on cost when it comes to thinking about equipment replacement. It certainly is important to know what it will cost to own and operate a unit in the year ahead and to make wise replacement decisions when the old unit—the defender—is likely to cost more than the minimum lifecycle cost you can expect from a new unit—the challenger.

Most conversations about overhead turn out to be complicated and emotional. People are confused about how it is defined, how it is calculated, and above all, how it is recovered. Everyone does it differently, and no one is happy.

Gone are the days when renting equipment was a small part of our business. Gone are the days when we did it as an exception and only when absolutely necessary.

Recently, someone said to me, “Mike, enough policy and philosophy, what would you do if you were responsible for implementing the material we have spoken about during the past four days. No fancy ideas, just hard realities?”

You can try to prepare the best meal in the world, but it won’t happen unless you have the ingredients in your pantry. The same is true with information and information systems. The data you have available, its definition, and its collection invariably limit what you can do to provide the information you need to manage your fleet.

The management of construction equipment fleets involves these types of data, and next-generation asset management will find ways to integrate them.

We continue to read about telematics and about the great work being done by AEMP and many others to help the technology achieve its full potential.

Should the shop make money?

It is surprising how often this question is asked and how much emotion is attached to almost any answer. Perhaps another way of looking at it is to ask, “Should the shop lose money?”


Session M/2 explains the principles and strategies of maintenance.

Session E/2 explains what is included in the hourly rate calculation, and how to do the actual calculation.

Session O/2 explains what role the hourly rate plays in an equipment-using company, and how the rate should handle transactions.

Learn how to understand and use activity metrics.

How to make your organizational structure work for you.

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