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 managers must often identify future staffing and facility needs in response to changes in organizational structure, direction, and contract volume that alter the overall size, composition, and maintenance requirements of the fleet. By calculating the maintenance repair factor (MRF) and…
When an organization depends upon the utilization of construction equipment to perform the functions of the business, it often must grapple with understanding how much maintenance is required to maintain its operational requirements. Problems arise when additional equipment is acquired to increase…
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The AEM/AEMP telematics standard is a major step forward. Many people have worked long and hard to reach this point, and we should all be thankful for their efforts. The API that has been developed as part of this…

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…

Equipment is a capital-intensive business, yet capital is a scarce and expensive resource. That is why so much of what we do is focused on capital expenditure (capex) and the capital-expenditure budget.

Developing the budget and making the business case for the substantial capital…

Setting the internal charge-out rate is probably the most difficult, contentious and important task that an equipment manager needs to perform. Let’s look at each of those words to better understand the situation and then attempt to develop a process that helps.

Difficult

The difficulty…

Every equipment organization I’ve ever known has a problem with theft and security of their small equipment. When I say small equipment, I’m talking about small generator sets, tamps and jumping jacks, cut-off saws, small pumps, and dozens of other such items. It’s the group of tools with…

What is best: buy, borrow, lease or rent? The question comes up often, and there are no right answers, only intelligent choices. Although cost is certainly important, it is not the overriding consideration. Many other factors and risks must be considered.

Let’s develop some working…

What do you buy when you buy a wheel loader? Do you buy one unit? Or do you buy a certain number of productive wheel loader hours that you put into inventory and keep there as an asset until it is used up in the production of work? The accountants certainly see the new wheel loader as an asset…

The term “Best Practices” has become an overused catch phrase in our construction industry. It’s like the weather; everyone talks about it, but practically no one does anything with it. Managers use the popular Best Practices phrase to sell an idea or a concept. A Best Practices program is…

Balancing an equipment account and taking the right action when things go wrong is extremely complex. It takes a deep understanding of costs and the costing process to pinpoint problems and take appropriate action.

Three things are absolutely essential for effective equipment cost…

We struggle with capital expenditures (capex) and capex budgets every year. It is invariably a long and complex process, and we often feel that things have not gone our way. We believe that we must spend a certain amount to maintain fleet average age and to grow. The president and the board of…

When buying a piece of construction equipment, most managers consider whether they want to purchase extended warranty. Key questions need to be asked—and answered—before making your decision, but unfortunately, it’s not simple.

Let’s review the basics of standard warranty. The standard…

I have, for a number of years, been proposing an economic life or sweet spot calculator based on knowing the equation of the cumulative cost curve. Many managers have successfully used it; others are confused by the concept of cumulative cost and have stayed with their current methodologies.…

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