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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Last month we discussed the need to know how equipment-related transactions flow through the organization and detailed a process for operating costs. We introduced a diagram of how charges flow from the job accounts to the equipment account. This article details a process for owning costs and…
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…
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I learned a lot about availability and utilization during my railroad construction days when I had the pleasure of working with a very big, very old and incredibly complicated tie tamper. You have not lived until you have worked with a machine like that. It took the full-time attendance of an…

Years ago, my boss had a favorite saying: “What’s everybody’s business is nobody’s business.” It was a way of reminding us that accountability is very important. If you don’t have clearly assigned responsibilities, no one feels the pressure to take the reins and manage the task. I don’t have to…

If a picture is worth a thousand words, then a good data graphic is worth a million numbers. They help cut through stacks and stacks of data and highlight the critical trends. Edward Tufte is the master when it comes to designing elegant…

I have been looking over some recent articles and have come to the conclusion that they were too serious. It is time to have fun. Here are some bumper stickers you can use to dispel some of the myths and misconceptions about equipment, equipment management, and equipment costs.

You do…

Most of us will agree that the hourly cost of a machine is strongly influenced by how much we use it and how long we keep it. Use it little or keep it for a short time, and cost per hour will be high because owning costs are high; keep it for a very long time, and cost per hour will be high…

Capital expenditure budgets are at an interesting crossroads. Some companies are expanding operations and want to know how much, where and how to invest in their fleets and position themselves for the future. Others see the glass as half empty and are wondering how to minimize expenditure,…

Every equipment manager I know has some kind of financial report that tells him or her about their fleet costs. These reports typically include owning cost items such as depreciation, interest, insurance, property taxes, and some overhead and administrative costs associated with managing the…

It is third and goal on the 5-yard line with two minutes to go, and you are four points behind. You say to your coach, “Give me the ball, Coach. I can get the job done.” Do you have the confidence to make the play and win the game?

Seldom in our business do you come across someone who…

Few questions have concerned me more than: “I want to lower my bid, so why must I include depreciation for machines that are fully written off?” It is a tough question because it combines semi-valid short-term logic with a mindset that has dangerous long-term implications.

When faced with…

The singer Bob Dylan had it right. The times, they are a-changin’. I recently was preparing a presentation for a group of equipment managers and listed the major changes we are encountering. It’s scary how many significant changes are happening simultaneously. Sure, most of the changes are good…

As an equipment manager in 2011, you’re probably faced with managing an older fleet than ever before. Your organization and owners aren’t spending the usual dollars to replace old iron, and this economic picture will probably continue in one form or another for many years. Asset managers will…

Owning costs make up between 25 and 30 percent of the total cost of owning and operating a fleet. It is a big portion and, fortunately, a manageable portion. Most of the costs are defined when you ink the deal, and most of the money is spent up front when you take possession of the asset and put…

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