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.

Registration is open for the next Institute, April 16-18, 2019, in Chicago.

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You have heard what people say: If you want to know how something works, just follow the money. Equipment management is no different, and it is useful to trace the flow of funds through an organization in order to understand and communicate how things work. This is the first of two articles that…
A construction company is an exciting place to work. Every day is different, and change seems to be the only constant. All this excitement, change, and turbulence comes about because construction companies continuously bid for, build, and complete unique projects: discrete well-defined pieces of…
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Many long and complex discussions have taught me that setting up an effective work-order coding system is more complex than it appears. Two problems occur frequently. First, the list of applicable codes is so long and complex that the final result is full of errors, misinterpretations, and…

Reading, writing, and arithmetic—if you get them right, you will be on your way to great things. The same is true for the repair/rebuild/replace decision. Get it right, and many of the requirements for success fall into place. 

As with most sound bite titles, it is best to start with some…

We work in a very capital-intensive business with razor-thin margins. Ever wondered how it works? Ever wondered whether it was more important to make a profit than to reduce the amount of capital required to accomplish the job?

As with most things, it is a balance. As with most things,…

We spend a lot of time discussing what it costs us to own and operate a particular machine. There is no doubt that this is important, but from a company and strategic level, it is not the final word. We absolutely need to know what it costs us to “own and operate” the equipment account as a…

I had a lot of arguments when I earned my living as a hard-riding, fast-shooting construction engineer. The one I remember most was about cost and the need to reduce cost. Of course it is important to reduce and manage cost. No argument there. But you do not improve cost by agonizing over the…

It used to annoy me when people referred to the equipment division as “the shop.” That does not bother me now because equipment management is a serious business. It has a huge impact on the company as a whole, providing the tools needed to produce work on time and on budget. Without an effective…

Measuring and managing utilization is difficult. It is easy to know exactly where the heavy iron is located and to record hours worked. It is a much more complex problem when it comes to the 4-inch pumps, trench rollers, and variable message boards that are moved informally and work…

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. Do we set conservative rates that will ensure we recover the full cost of owning and operating our fleet; or do we set…

Depreciation is a word that has so many meanings that it is almost meaningless. We know that it has something to do with the fact that equipment does not last forever and that we need to write down its value as it ages and is consumed in the production of work. We know that depreciation charges…

The difference between annual cost and full life cycle or life to date (LTD) cost is one of the most difficult things to grasp when it comes to understanding equipment costs. This is due to the fact that we have been trained to focus on next year’s cost and next year’s budget, which causes us to…

Most construction companies have an equipment department or division within the overall organization. This responsibility center builds a specialized equipment team, gives it clearly defined and measurable objectives, and focuses management attention on a critical part of the business.

When a machine starts a production shift, it should work without interruption, not break down and not bring everything to a grinding halt.  Our goal should be to have zero on shift failures - it is possible, desirable and it makes good business sense.

Successful equipment managers know…

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