NAEDA NEWS ALERT
NAEDA releases 2014 Dealership Compensation & Benefits Report
|| The North American Equipment Dealers Association has conducted and compiled the most comprehensive Compensation & Benefits Report to date. The complete 60-page report has been distributed to the nearly 500 Agricultural, Industrial and Outdoor Power Equipment dealers who participated in the survey and provided their dealership data. For their efforts each has received a complimentary copy of the 2014 Dealership Compensation Report.
NAEDA dealer-members have the opportunity to purchase the complete report at the member price of $200 and $100 for the OPE Dealer edition.
We have attached a condensed version of the report with selected pages to give you an idea of the information the report contains. Keep in mind, this is only a small portion of the data published in the complete report.
- 60 pages of comprehensive Compensation, Bonus/Commission and Employee Benefits data.
- Overall Data Numbers plus Five Volume Classification Breakouts for each position.
- Compensation Sections for Corporate Office Staff, General Office Staff, Sales Department, Parts Department, and Service Department.
- Over 120 Technician and Service Rate Breakdowns.
- Extensive Dealer comments on Bonus/Commission/Incentive programs for Sales/Parts/Service Departments.
- Methodology/Statistics Summary
- Projections for 2015
Also, attached for your reference is a Data Comparison Summary of the 2014 Compensation Benefits Report and the previous study conducted in 2011.
Copies of the report can be ordered by completing the attached order form and return via mail, fax at 636-349-5443 or calling NAEDA at 636-349-5000.
Industry & Manufacturing News
Todd Stucke of Kubota Elected to Ag Sector Board of the Association of Equipment Manufacturers
TORRANCE, Calif. – December 15, 2014 – Todd Stucke, vice president, ag & turf equipment, Kubota Tractor Corporation, has been elected as a director of the AG Sector Board of the Association of Equipment Manufacturers (AEM), the North American-based international trade group for the off-road equipment manufacturing industry (agriculture, construction, forestry, mining and utility sectors).
A vice president for Kubota since 2012, Stucke is responsible for the overall leadership, direction, planning and management of Kubota’s U.S. agriculture, turf & utility vehicle equipment functions, including related attachments and implements.
"AEM officers and directors are active members of the Association and selected from representative member companies to provide guidance and leadership to set the strategic direction for the organization. They reflect an industry cross-section; their dedication of time and energy to this volunteer service helps ensure Association programs continue to meet member needs,” stated AEM President Dennis Slater.
Stucke’s extensive experience in the agriculture industry will be a valuable asset to his role on the AEM Board. A 25-year industry veteran, he has learned the equipment business from the inside out, having progressed through a variety of positions within the industry.
"Agriculture is deeply important to me both professionally and personally, so I am extremely excited to be in a position to help influence its advancement,” said Stucke, regarding his recent Ag Sector Board election. "I’m honored to be a member of the Board, and I look forward to working with senior leaders across the industry to drive the future of agriculture.”
AGCO announces new $500 Million share repurchase program
DULUTH, Ga.--(BUSINESS WIRE)--Dec. 15, 2014-- AGCO, Your Agriculture Company, (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, today announced that its Board of Directors has authorized a share repurchase program of up to $500 million of the Company’s common stock. The latest authorization is in addition to any previously authorized share repurchases and is effective through December 31, 2016. Share repurchases may be made by the Company from time to time in open market transactions at prevailing market prices or in privately negotiated transactions.
"The new share repurchase authorization is indicative of AGCO's strong cash generation capabilities," said Martin Richenhagen, Chairman, President and CEO. "The new program underscores the Company's continued commitment to building shareholder value." The actual timing, number and value of shares repurchased under the latest program will be determined by management at its discretion within the terms of the authorization, and will depend on a number of factors, including the trading price of the stock, and general market and business conditions and applicable legal requirements. This program does not oblige the Company to repurchase any shares under the authorization, and the program may be suspended, discontinued or modified at any time, for any reason and without notice.
Robert Crain to Assume Responsibility for AGCO South America as of Jan. 1, 2015
DULUTH, Ga.--(BUSINESS WIRE)--Dec. 12, 2014-- AGCO (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment, announces that Robert Crain, Senior Vice President and General Manager, North America, will take over responsibility for AGCO’s South America region from André Carioba, Senior Vice President and General Manager, South America, effective January 1, 2015.
Mr. Carioba, due to retire on December 31, 2014, joined AGCO in 2006 and has been instrumental in the implementation of business strategies within South America, including Sales and Marketing, Finance and Administration, Manufacturing, Product Management, Purchasing, Engineering and the dealer organization for all brands. “We thank André for his leadership, commitment and successful results over the years. He has been a valuable asset to the organization,” said Mr. Martin Richenhagen, Chairman, President and CEO of AGCO Corporation.
Mr. Crain will assume the role of Senior Vice President and General Manager, North America and South America, providing leadership and direction for AGCO’s North and South American regions. Mr. Crain has been leading AGCO's operations within the U.S., Canada and Mexico since he joined AGCO in 2006 as Senior Vice President and General Manager, North America.
Used Equipment gets a second, certified life
DULUTH, Ga. (Dec. 10, 2014) — AGCO Corporation (NYSE:AGCO), the first manufacturer to stand behind equipment with a Certified Pre-Owned (CPO) program, is expanding the offering for more comprehensive coverage throughout North America. After piloting the CPO program with 16 dealers for more than a year, the company will unveil the full program in early 2015.
The CPO program aims to enhance quality and decrease risk by certifying used equipment for farmers in North America. To qualify, equipment must be thoroughly inspected and reconditioned at more than 100 points.
“Farmers are savvy businesspeople, and particularly in a down market, they are squeezed to maximize their net profit,” said Eric Lescourret, AGCO director of Commercial Strategic Initiatives. “Key areas of focus for farmers are capital expense and the purchase or lease of more fuel-efficient and productive equipment. AGCO was the first agriculture equipment manufacturer to stand behind equipment with a certified pre-owned program, beginning with pilot dealers, starting in 2013.”
Grasshopper named “2014 Company of the Year” by manufacturing professional society
WICHITA, Kan. – The Grasshopper Company was chosen as “2014 Company of the Year” by the Society of Manufacturing Engineers (SME), Chapter 52 and received recognition from the organization at a Dec. 9 ceremony in Wichita.
Grasshopper Company President Stan Guyer accepted the award at The Petroleum Club in Wichita, Kansas during the Society’s annual installation of officers. Grasshopper was recognized due, in part, tor manufacturing processes observed during a tour of the company’s headquarters and factory located in Moundridge, Kan., in May, 2014, in comparison to other manufacturing facilities toured during the year. The company’s products, consisting of commercial-grade zero-turn mowers and grounds maintenance systems, were also factored into the award.
During the award presentation, acting SME 52 chairman Martin Fisher said, “We were impressed with how efficiently the company operates in a concise environment, and were also very impressed with the company’s versatile products. They pay a lot of attention to the ergonomics of the product.” In a separate statement, SME 52 President Stuart Roberts, absent from the event due to illness, noted, ”Who knew that so many different types of mowers, with so many options, were made for not just US consumers but also exported throughout the world. Grass cutting has reached a phenomenal level of technology.” SME 52 Tour Director Chairman Mike Kreil of Spirit Aerosystems echoed those thoughts, calling Grasshopper “an amazing company”.
Source: Grasshopper Mower
Legislative & Regulatory News
NLRB Issues Final Union Elections Ambush Rule
On Friday, December 12, the National Labor Relations Board (NLRB) issued a final rule (the “ambush elections” rule) that will dramatically change union representation elections in the workplace. The rule will shorten the election process to as few as 15 days from the current median time of 38 days and deprive employers of due process. It will effectively restrict communication between employers and employees prior to a union election, leaving employees without access to important information before they vote.
Some of the key changes in the final rule are the following:
- Requires that all pre-election hearings be set to begin within 8 days after a hearing notice is issued.
- Mandates that employers file a “Statement of Position” by noon on the day before the hearing begins. The Statement of Position must include a list of prospective voters with their names, job classifications, work shifts, and work locations.
- Provides Regional Directors with discretion to limit the scope of pre-election hearings, by excluding evidence on voter eligibility and delaying the resolution of those issues until after the election.
- Requires an employer to provide, within 2 business days of the election agreement or decision directing an election, employee personal telephone numbers and personal email addresses.
This rule is more sweeping in scope than the original “ambush” rule the Board issued on April 30, 2012. The 2012 rule was eventually withdrawn by the NLRB after the rule was struck down on procedural grounds by a U.S. District Court in Washington, D.C., on May 15, 2012, as part of a legal challenge to the rule by Coalition for a Democratic Workforce (CDW) and the US Chamber of Commerce.
CDW, of which NAEDA is a member, and several other national associations are planning on filing suit in early January to challenge the new ambush rule. National Federation of Independent Business, Associated Builders and Contractors and several local associations will file a separate suit.
We will keep you posted as we move forward with the litigation plans and court outcomes.
McConnell: Keystone will be GOP Senate's first move
The new Republican Senate will take up the proposed Keystone XL oil pipeline as its first order of business, incoming Majority Leader Mitch McConnell said Tuesday.
The Kentucky Republican also said he plans to allow open amendment debate on the pro-Keystone legislation from Sen. John Hoeven (R-N.D.). That move could shake up the chamber’s seemingly calcified pipeline politics as senators vie to use the bill as a vehicle for other hot-button energy issues.
“I hope that senators on both sides will offer energy-related amendments, but there will be no effort to micromanage the amendment process,” McConnell told reporters. “And we’ll move forward and hopefully be able to pass a very important job-creating bill early in the session.”
Among potential energy amendments that senators could seek to attach to the Keystone bill are proposals to slow or stop EPA’s emissions rules for power plants and plans to fast-track liquefied natural gas exports.
IRS release Standard Mileage Rates for 2015
The Internal Revenue Service issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be 57.5 cents per mile for business miles driven (up from 56 cents in 2014), 23 cents per mile driven for medical or moving purposes (down half a cent from 2014), and 14 cents per mile driven in service of charitable organizations (unchanged).
FDA Releases New FSMA Resources
The FDA Food Safety Modernization Act (FSMA), the most sweeping reform of our food safety laws in more than 70 years, was signed into law by President Obama on January 4, 2011. It aims to ensure the U.S. food supply is safe by shifting the focus from responding to contamination to preventing it.
FDA has released new resources related to the Proposed Rule for Produce Safety. The resources, which pertain to manure, compost, and soil amendments, can be found here.
NAEDA Update Official Sponsor
NAEDA, Association & Program Partner News
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Secure mobile payment solution turns smartphones into terminals
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Simple and Secure
VirtualMerchant Mobile offers merchants of any size and familiarity with credit card processing to take advantage of this burgeoning marketplace. The strengths of the Elavon solution include a secure, hosted environment from an industry leader, with quick upgrades and end-to-end connectivity:
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Made for Small Business
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Setup and configuration are easy; merchants download the VirtualMerchant Mobile App from their iPhone’s App Store or Android Marketplace and enter account configuration credentials provided by Elavon.
Once the Smartphone is configured, merchants can accept key-entered transactions or swiped transactions with the addition of a card reader that encrypts card data at the time of swipe to ensure security. Elavon supports multiple readers for multiple form factors, and offers MagTek® Card Readers for Swiped Transactions.
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The growing acceptance of mobile payments is analogous to the acceptance of the Internet: it’s the novelty that became a necessity. The more that customers use their smartphones to make payments, the more they will demand that merchants offer the convenience. The advantage of VirtualMerchant Mobile is that it is backed by Elavon’s expertise and proven track record in payment processing. It allows merchants to accept payments quickly and securely, anywhere and anytime.
For more information concerning VirtualMerchant Mobile and the NAEDA endorsed credit card processing program, contact Danielle Gibson 800-546-1831 ext. 5434 or Danielle.Gibson@elavon.com.
Consider a contribution to NAEDA's Equipment Dealers Foundation
NAEDA’s Equipment Dealers Foundation (EDF) was created to provide grants to meet the industry’s need for training resources, career advancements and scholarships. Through the years, the EDF has expanded its efforts to help dealership employees affected by natural disasters. Moving forward, your support is needed for research, grants and scholarships to continue to enhance our industry.
When faced with a disaster, the EDF has been able to step in and help. The EDF has financially aided a number of dealers and dealer employees, thanks to the generous support of dealers, manufacturers, suppliers and affiliated associations.
The purpose is not to replace insurance coverage or the entire business economics; rather, the efforts through “bridge grants” of up to $2,500 help put food on the table, replace toothbrushes and toothpaste, put gas in the vehicle and generally help individuals get their everyday routine back as quickly as possible. To date, the EDF has provided more than $200,000 to assist disaster victims.
In 2012 and 2013, EDF has offered a matching scholarship program in conjunction with dealers and affiliate associations, with the goal of helping dealers train the next generation of employees. These scholarships, coupled with the other matching grants of the sponsoring dealer and affiliate associations, were used to help students interested in the equipment industry attend schools and receive training so they can be a part of our industry after graduation. To date, 145 matching scholarships have been awarded to students.
Now is where you can help. In order for EDF to assist when disaster strikes again—and it will—and to help do research and provide important industry data and education, and provide scholarships to students excited about our industry, we need your continued support. Please consider a generous donation to the NAEDA EDF as we close out the year.
Please visit our website at https://www.naeda.com/SupportEDF/EDFFoundationOnlinePayment.aspx to contribute online.
Tip of the Month
An organization’s ability and conviction to creating a flexible work environment will be a key factor to attracting and engaging millennial talent. Technology has changed the landscape of the traditional 9-to-5 office career; with the ability to work from anywhere at any time, millennials expect such freedom. With that said, flexible work environments can benefit both employee and employer. Ways that some companies offer flexibility include:
- Job sharing
- Remote working arrangements
- Flexible working hours,
- Seasonable months off to accommodate work-life balance needs
Do you want more information on how to attract millennials to your workplace and instill flexibility? Contact firstname.lastname@example.org.
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From the NAEDA Office
Equipment Dealer To Undergo Transformation
New magazine will debut this spring.
As a part of our ongoing effort to improve the value proposition for dealer members, the NAEDA Board of Directors recently decided to put Equipment Dealer magazine on a two- to three month hiatus while we work to expand the content and enhance the delivery of the publication. The “new and improved” magazine is a significant part of the associations’ ongoing communications initiative, which addresses our entire messaging platform – magazine, e-newsletter, web site, email and other key components.
One of the first steps in reworking NAE DA’s communications is the creation of an editorial board of dealer members and industry partners, including manufacturers, vendors and academicians. This diversity of background and experience will help in identifying timely content, selecting key themes and developing the editorial calendar for the publication. The eight-member board should be identified within the next few weeks.
Our initial effort is focused on increasing the appeal to members by enhancing current content:
▶ National/Affiliate Highlights
● Manufacturer Relations
● Legislative Issues
● Regulatory Requirements
▶ Dealership Spotlight Stories
▶ Observations and Analysis from Industry Leaders
● Dealership Management
● Business Management
From there, we intend to expand the magazine to address a broader range of topic areas, including:
▶ Sales, Parts and Service
▶ Used Remarketing Reports
▶ Economic Trends/State-of-the-Industry Reports
▶ Dealership Marketing/Communications
▶ Customer Spotlight Stories
▶ Industry/Academic Research
▶ Equipment Dealer Foundation Stories (scholarships, disaster assistance, etc.)
Ultimately, the magazine will provide targeted/segmented content based on manufacturer lines, geographic locations, membership types, interest areas and other determinants. Our goal is to provide relevant, focused content that can assist dealers in running their businesses.
As mentioned in a previous column, this initiative is one of the recommendations of the Communications Task Group. Over the next few months, we will be working to implement the recommendation and provide greater value to our members. I hope you will enjoy the coming changes as we continue to create the new NAEDA!
As always, your ideas, issues and suggestions are welcome, so please feel free to contact me at email@example.com or 636-349-6221.
Thank you for being a valued member of NAEDA.
RICHARD “Rick” LAWHUN is president/CEO of North American Equipment Dealers Association (NAEDA). The association provides educational, legal, legislative and financial services to approximately 5,500 retail agricultural, construction, large property/rural lifestyle and outdoor power equipment dealers in the United States and Canada. Rick can be contacted at 636-349-6221 or via e-mail at firstname.lastname@example.org.
To read this article in full, click here.
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NAEDA Update is provided as a service to members of the North American Equipment Dealers Association. This information may not be reprinted without permission from NAEDA.
The North American Equipment Dealers Association provides educational, legal, legislative, and financial services to approximately 5,000 retail agricultural, construction, large property/rural lifestyle, and outdoor power equipment dealers in the United States and Canada.
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