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, July 16-18, 2019, in Chicago.

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By the time you reach my age, you are able to take a long-term perspective on things. Long ago and far away, we ran the equipment fleet with little emphasis on preventive maintenance. I spent many school vacations developing preventive maintenance check lists, and we did change the oil, adjust…
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…
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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…

Many large-fleet equipment managers are proud of the fact that they own most or all of their fleet. But, to quote a friend, “Profits accrue through the successful use of equipment; not its ownership.” With a shaky economy and uncertain construction future, rentals make more sense than ever.…

When asked, “Do you use work orders?”, equipment managers respond in frustration and talk about systems that are “too complicated,” “unnecessary,” or “just paperwork.” It is time to think seriously about work orders, define the essentials of a good system, and then make sure that it works for us…

Your selection of suppliers, support organizations, and information sources will probably be one of the most important sets of decisions you will make. Think of these work relationships as any other management tool: They must be carefully chosen and developed.

Excellent relationships don’…

Many folk accuse me of spending too much time on trick plays and forgetting the basics of the business. Trick plays are fun, but they only work if your blocking and tackling are excellent; you have to know the basics. 

Let’s look at three things you have to have to attack the causes of…

The companies that seriously manage their spare parts are likely to be the ones that survive in the long run. Parts costs for most construction equipment, especially dirt fleets, run about two-thirds (yes, 67 percent) of all repair costs. That’s way too important to mismanage or manage casually…

I frequently hear talk about comparative shop labor rates and outsourcing. A lot of it makes sense, and it certainly is important to constantly check that the services you deliver are competitive with those you can buy from dealers and other outside sources. Deciding on how much to do in-house…

The companies that seriously manage their spare parts are likely to be the ones that survive in the long run. Parts costs for most construction equipment, especially dirt fleets, run about two-thirds (yes, 67 percent) of all repair costs. That’s way too important to mismanage or manage casually…

The November 19 edition of The Wall Street Journal ran a front-page story about how insurance companies use online purchasing data to identify individuals to whom they can sell life insurance and make a better than average return. The next time you buy a $2,000 elliptical training machine, your…

It seems to me that there are fewer equipment managers today than there were 10 years ago. I’m pretty sure of it, and if you’re an equipment manager, that should concern you. So why is that? Is your job at risk?

Since most construction-company presidents and owners come out of the…

Everybody has been downsizing and holding on to their old iron. Business conditions have been brutal and it certainly has not been fun bidding work, winning work and building work in an industry that seems to have lost sight of the balance between risk and reward.

More and more folk are…

As a general rule for most construction equipment, one-third of your total owning and operating (O&O) costs is your depreciation, one-third of your O&O costs is repair and maintenance related, and one-third is fuel related. I suspect you intuitively agree with this. I am amazed, then,…

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