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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What must we do to be a world-class equipment-management organization?” It is a question you should ask yourself, and it is a question you should be prepared to answer. Your answer can be long and complicated, or it can be so broad as to be of no value. Here are four critical success factors for…
Much time is taken to define and measure what is spent on maintenance. But how much time is spent to define and measure what is returned or, even, what to expect in return? An equipment executive expects compliments for looking after the company’s assets. They expect longer lives and lower costs.…

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…

We constantly work to balance the cost of owning and operating our fleet with the revenue earned by charging jobs for the equipment they use. It occupies a large portion of every day. We worry about the cost side and struggle to bring it in line with our revenue so that we can “break even.” Yet…

Equipment-using organizations often use their fleet to promote their brand. The name is on both sides of the equipment; their logo identifies the organization. Senior managers get quite involved and particular when it comes to how the company brand is portrayed.

There are pros and cons to…

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