NAEDA NEWS ALERT
NAEDA's annual Dealer Manufacturer Relations Survey deadline is February 26
NAEDA is currently conducting its annual Dealer Manufacturer Relations Survey. Links to the survey questionnaire were distributed to dealer-members on Monday February 9. If you don’t recall receiving the email from North American Equipment Dealers Association, please recheck your Inbox or Junk Mail folders.
The survey asks dealers to rate the manufacturers that they do business with in important categories regarding Products (quality, availability, tech support), Parts (availability, quality, return policy), Communication, Warranty and Marketing/Advertising support. Responses are compiled anonymously and distributed to manufacturers and NAEDA dealer members for comparison, analysis and review.
The report contains valuable feedback and information about the relationship between dealers and their suppliers. Both the manufacturers and the dealers have found the data to have value for improving product and service quality and for promoting top-ranked products to consumers.
Many manufacturers have used the survey results to promote their performance to their dealer network and even to end-users. They have also used the results as a means to support change and improvements in their organizations. Dealers have used the results to evaluate potential new product lines and companies to carry, for competitive comparisons with brands they handle and to communicate areas of strengths and needs for improvements of their represented manufacturers.
The NAEDA Dealer Manufacturer Survey has been one of the association’s most important and successful endeavors and in 2015 we are continuing to build on this success to again recognize the manufacturers that have done an exemplary job in the key areas correlated to a dealer’s operational model. The NAEDA Dealer’s Choice award recognizes these companies and this survey's results will create the data used to determine the 2015 Dealer's Choice recipients.
Please take a few moments to complete the survey. Your responses will be compiled by a third party research firm and will be kept completely confidential.
If you have any questions contact Joe Dykes at 636-349-6205 or email@example.com.
Industry & Manufacturing News
Cooperative CHS returns $518 million to owners
ST. PAUL, Minn., Feb. 18, 2015 /PRNewswire/ -- Farmers, ranchers and cooperatives across the United States will share in an estimated $518 million cash distribution from CHS Inc. (NASDAQ: CHSCP), an energy, grains and foods company and the nation's leading agricultural co-op. The distribution is among the largest in CHS history and extends its record of significant cash returns to owners.
"The ability of our owners, who are also our customers, to directly share in the financial success of CHS is a distinct advantage of being part of a cooperative business," said David Bielenberg, CHS Board chairman and a Silverton, Ore., farmer. "And, this is cash that returns to local communities, enabling farmers, ranchers and cooperatives to invest in their own futures."
Bielenberg added that the CHS Board, which consists of 17 producers, strives to "take the long view" in regard to the company's future balancing significant investments in the company's future, direct cash returns to owners and a commitment to maintaining a strong balance sheet.
"It's about making sure that we're not only serving our owners and other customers with the products, services and marketing opportunities they need today, we're investing in what they'll need years and even decades from now," he said. "And we do it with an unwavering commitment to keeping CHS strong."
Caterpillar Dealers Fabick Cat and Fabco to Merge
Caterpillar dealers Fabco Equipment, Milwaukee, Wis., and John Fabick Tractor Co., Fenton, Mo., plan to merge their companies to create one of the largest Caterpillar dealers in the United States. The expanded organization will be led by Doug Fabick (currently president and chief operating officer of Fabick Cat) as CEO and dealer principal, and his cousin Jeré Fabick (currently president and CEO of Fabco) serving as president and co-dealer principal.
Corporate headquarters of the combined company will be in St. Louis. Fabick and Fabco teams will be working together during the next several months to complete the integration. The companies expect the deal to close June 30.
“The strength, stability and long-term continuity of the Fabick family network of companies will enhance our ability to meet the needs of all the customers who we have the privilege of serving in our combined territories,” said Doug Fabick.
S&P 500 Ends at Record; Nasdaq at 15-Year High
The NAEDA joined the major markets in positive terrain, gaining 31.45 points, or 3.25 percent, and closing at 999.79. Advancing issues handily outweighed declining issues at a 14-to-8 count.
Oil prices and geopolitical concerns continued their tug-o-war on stocks, but as our trading session ended February 13, 2015, oil ended its swoon and markets stabilized, with the S&P 500 closing at a record, and the Nasdaq at a 15-year high. The Commerce Department said that the economy grew at a 2.6 percent rate in the final quarter of the year, bogged down by weak business investment, and trade and government purchasing, down from 5 percent in the previous quarter. The University of Michigan’s consumer sentiment index fell to 93.6 in early February, from a 98.1 in January; no change was expected. Even so, the reading was the second highest since January 2007. “The economic data is coming in OK, and when you delve into the big picture of the earnings reports, they’re not bad,” said Robert Pavlik, Chief Investment Strategist at Boston Private Wealth. “People want to be in the market when it starts to go back up.”
Both sales and profit increased for Tractor Supply Company as its fiscal year and quarter ended Dec. 27, 2014. TSCO posted a 16.9 percent increase in fourth quarter net income of $112.1 million, compared to net income of $95.9 million last year. Earnings per share increased by 19.1 percent, to $0.81 per share, versus last year’s $0.68. Net sales were up 12 percent, to $1.58 billion. Research firm Argus upped its rating on TSCO to “buy” from “hold.” TSCO jumped 9.06 points, or 12.05 percent, and closed at 84.26. TSCO was the top dollar gainer.
AGCO bested analysts’ estimates for the fourth quarter, and shares rose 6.79 points, or 15.79 percent. AGCO posted net income of $77.6 million, or $0.85 per share. This compares to net income of $1.40 per share earned a year ago. Adjusted for one-time items, AGCO earned $1.18 per share. Revenue was $2.49 billion, down 13.1 percent from the year previous. The results were ahead of estimates; analysts surveyed by Zacks expected earnings of $0.65 per share and revenue of $2.4 billion. AGCO closed at 49.78, and was the top percentage gainer.
Although Cummins beat fourth quarter forecasts, the company guided lower, and shares slid 2.48 points, or 1.75 percent. CMI reported net income of $444 million, or $2.44 per share, from $432 million, or $2.32 per share in the year-ago quarter. Revenues were up 11 percent, to $5.09 billion. Excluding one-time items, Cummins earned $2.56 per share. Analysts expected earnings of $2.51 per share and revenue of $5.02 billion. However, because of the strong dollar and softer global demand, Cummins lowered its full-year revenue to range between
$19.61 billion to $20 billion, from an earlier range of $20 billion to $23 billion. The average revenue expected by analysts in 2015 was $20.96. Cummins ended at 139.04, and was the top dollar loser.
Look Before You Pump!
Most gasoline now contains 10 percent ethanol (E10). But, you may see higher ethanol blended gas available for sale – such as 15, 30, 50 or 85 percent ethanol gas – at a gasoline filling station. These higher ethanol blends may even be cheaper than E10, and your consumers may be tempted to buy the higher ethanol content gasoline because of its lower cost.
But, price is no longer the way to choose gasoline safely. You have to choose the right fuel.
To help the equipment dealer and manufacturing community with this critical issue, OPEI has launched a “Look Before You Pump” campaign to educate and protect consumers from inadvertently mis-fueling their equipment investments.
To learn more about how you can prepare your customers to select the right fuel for their small engine products, UTVs and outdoor power equipment.
FAA proposes new rules for era of drones
Drone on, the government says.
Just not through the night sky. Or close to an airport. Or out of the operator's sight. And probably not winging its way with a pizza or package, any time soon.
Long-anticipated rules proposed Sunday will open an era in which small (under 55 pounds) commercial unmanned aircraft perform routine tasks — crop monitoring, aerial photography, inspections of bridges and cell towers, and much more. But not right away. Final rules are probably two to three years away.
Source: Ag Web
Legislative & Regulatory News
U.S., Canada reach key funding deal for Detroit-Windsor bridge
DETROIT -- The Obama administration and Canada have agreed on financing a key piece of a planned $2.1 billion bridge connecting Detroit and Windsor, Ontario, the two governments announced Wednesday.
The agreement involves a funding mechanism for a toll plaza on the U.S. side of the international crossing, the U.S. Department of Homeland Security said in a statement. It said a "public-private partnership" will pay for the plaza's construction, with reimbursement from bridge tolls.
Both governments have said the new bridge will create thousands of jobs and further stimulate the $658 billion annual trade between the nations.
"This agreement clears one of the final hurdles to building this hugely important bridge. Both Michigan and the entire nation will benefit," Rep. Sander Levin said in a statement.
Authorities have said the limited capacity of the 85-year-old Ambassador Bridge and the 85-year-old Detroit-Windsor Tunnel, which is too tight for tractor-trailers, is an increasing impediment to trade.
Michigan Sen. Debbie Stabenow called Wednesday's deal "a critical step forward" for the project, long stymied by opposition from owners of the nearby Ambassador Bridge who seek to add a new span of their own across the Detroit River. That opposition has blocked the needed U.S. funding for the plaza. The bridge itself already was to be built without U.S. funds.
Canadian Transport Minister Lisa Raitt said the agreement ensures "that the new publicly owned bridge between Windsor, Ontario, and Detroit, Michigan, can proceed without further delay" and that the project "will ultimately be delivered through a public-private partnership."
U.S. lawmakers said it remains crucial for the Obama administration and Congress to appropriate the funds that will be needed to operate the U.S. Customs plaza.
Officials have said they hope to open the bridge in 2020.
Michigan Gov. Rick Snyder, a supporter of the new bridge, said he "will continue to encourage the U.S. government to provide the necessary resources to fund U.S. customs facilities" at the bridge and at the Blue Water Bridge that links Port Huron, Michigan, and Sarnia, Ontario, about 55 miles north-northeast of Detroit.
Ambassador Bridge owner Matty Moroun had paid for a campaign to get a proposal on the November 2012 Michigan ballot seeking to block any new cross-border bridges or tunnels without holding a referendum first. Voters defeated the proposal.
The Associated Press left a message Wednesday seeking comment from the Moroun family-owned Detroit International Bridge Co. The company's website includes statements and videos criticizing the new crossing.
"The best outcome is to continue with the success that we as a region have had with southeastern Michigan border crossings for the last 80 years, especially with the Ambassador Bridge, where no taxpayer resources or government resources have been used whatsoever," Moroun, vice chairman of the Detroit International Bridge Co., says on the site.
Source: The Associated Press
West Coast Ports Come Back to Life
Bloomberg reports that “Ports are coming back to life along the U.S. West Coast after dockworkers resolved a nine-month labor standoff, though the cargo backlog from ships waiting offshore may take eight weeks to clear. The five-year contract reached Friday after U.S. Labor Secretary Tom Perez imposed a deadline for a deal, averted a shutdown of 29 ports that would have cost the U.S. economy $2 billion a day. The strife had reduced productivity at West Coast ports by as much as half since November, with California citrus fruit bound for Asia spoiling on the docks, while carmakers flew in components at more than 10 times the cost of sending them by sea. The West Coast ports, responsible for 43.5 percent of U.S. trade, have been operating at reduced capacity since late October as dockworkers slowed cargo and employers cut shifts.”
Source: The friends of the US Chamber of Commerce
What if the EPA Implements RFS Mandates for Renewable Fuels at Statutory Levels?
No shortage of ink has been spilled discussing the potential problems in implementing the Renewable Fuels Standards (RFS) due to the gap between the implied mandate for renewable biofuels (ethanol) and the E10 blend wall. The EPA announced preliminary rule making for 2014 on November 15, 2013, and the proposal signaled a significant shift in EPA policy. The most controversial aspect of the proposal was the write down of the renewable mandate for 2014 from 14.4 to 13 billion gallons. The substantial "roll back" from the statutory mandates resulted in the EPA receiving over 15,000 comments and was met with the threat of legal challenges. A final rule making for 2014 had been expected shortly after the 2014 U.S. elections, but the EPA surprised virtually everyone by announcing on November 21, 2014 that the final 2014 rules would be delayed until sometime in 2015 and the 2015 and 2016 rules would likely be released at the same time.
DHS suspends Obama's immigration action
The Department of Homeland Security (DHS) is suspending the implementation of President Obamas new executive actions on immigration to comply with an injunction from a federal judge.
DHS Secretary Jeh Johnson said he strongly disagrees with the move by U.S. District Judge Andrew Hanen to temporarily halt the new deferred deportation programs, but said the administration will abide by his order.
Source: The Hill
Trade advocates put numbers behind support for new pacts
The Hill reports that, “Three groups on Thursday released reports bolstering their case that new global deals include higher standards than previous pacts like the oft-cited 1994 North America Free Trade Agreement, which has been blamed for U.S. job and wage losses. In the Chamber’s data, the U.S. has a trade surplus with its 20 free-trade agreement partners, including large surpluses in manufactured goods, services and agricultural products. ‘The benefits of these agreements for American workers, farmers, and companies are hidden in plain sight,’ said Myron Brilliant, executive vice president and head of international affairs at the U.S. Chamber.”
Source: The Hill
Canada's GDP shrank 0.2% in November
Canada's gross domestic product contracted by 0.2 per cent in November, as the economy was dragged down by cheap oil prices and unexpected weakness in manufacturing and mining. Statistics Canada said Friday that for the 12-month period ending November as a whole, the economy expanded by 1.9 per cent - less than the 2.1 per cent that economists had been expecting.
Source: CBC News
2015 looks good for Canadian farmers
Agriculture and Agri-Food Canada recently released their 2015 Canadian Agricultural Outlook and all signs point to another successful and profitable year for farmers across Canada.
Feds 'very optimistic' agricultural trade war with U.S. will be averted
The Canadian government is expressing optimism that a trade war might be averted with the United States in a long-standing dispute over agricultural products. Agriculture Minister Gerry Ritz says he likes what he heard this week during a trip to Washington, and senses a willingness to adjust a U.S. regulatory policy at the heart of the dispute.
Source: CTV News
Meat system safe despite mad cow case: Ritz
Canada’s agriculture minister issued an emphatic “no” when asked if Canadians should be worried about this country’s latest confirmed case of mad cow disease. The Canadian Food Inspection Agency said Friday that a beef cow from Alberta has tested positive for bovine spongiform encephalopathy (BSE). No meat from the animal entered Canada’s food or animal feed systems, the agency said.
Source: CTV News
Canadian economy adds 35,400 jobs as part-time work surges
The Canadian job market rode a wave of gains in part-time work last month as it beat modest forecasts and appeared to keep the expected oil-slump fallout at bay a little longer. But the undercurrent in Friday’s Statistics Canada data, which showed 35,400 net new jobs last month, also contained disappointing signs for the economy.
Source: The Star
Despite oil price shock, Canadian economy has ‘room to grow': Bank of Canada
Even though Bank of Canada officials admit the plunge in oil prices has been a shock to the Canadian economy, they believe it “still has room to grow,” with a strong U.S. recovery and increased business investment eventually lifting job creation and overall output.
Source: Financial Post
Bill C-51, Harper's Anti-Terror Bill, Passes Second Reading Amid Criticism
Canada’s proposed anti-terrorism bill passed its second reading on Monday with a vote 176-87 in favour of its omnibus legislation. The Liberals voted alongside Conservatives to extend power for Canada’s national security agencies while the NDP opposed. Independent MP Brent Rathgeber also voted “no” to the controversial anti-terror legislation, saying there other threats to Canada and its values beyond Islamic militants.
Source: Huffington Post
Canada retailers, ports fear impact as CN Rail lockout nears
A looming lockout at Canada's biggest railway threatens to delay imports from Asia and may compound a U.S. West Coast port logjam unless last-ditch contract talks succeed on Monday.
Source: Toronto Sun
NAEDA, Association & Program Partner News
Federated Insurance’s “HR Question of the Month”
Question: We have an exempt employee that separated in the middle of a workweek. We prorated his salary that week to reflect only the days he worked. He is coming back now stating that he had worked 40 hours that week before he left. Does that have any bearing on the pay, or are we ok with leaving it as is?
Response: Exempt employees generally must be paid their full weekly salary for all workweeks in which they perform any work. There are, however, certain limitation exceptions to this rule. Specifically, if an exempt employee starts or ends employment mid-workweek, the employer may prorate the employee's salary accordingly. As for calculating the deduction, the Fair Labor Standards Act (FLSA) does not mandate one specific method for prorating an exempt employee's salary in situations where deductions are permitted. Rather, 29 C.F.R. § 541.602(c) says that an employer may "use the hourly or daily equivalent of the employee's full weekly salary or any other amount proportional to the time actually missed by the employee." Thus, there are a number of methods the employer may utilize. To that end, it is certainly permissible for an employer to calculate a day rate and then multiply by the actual number of days worked, regardless of the number of hours actually worked. In other words, the number of hours do not have any bearing on the pay if the method you used to prorate the employee's salary was the daily (rather than hourly) equivalent of the employee's full weekly salary. For the full text of the statute, please see http://www.gpo.gov/fdsys/pkg/CFR-2012-title29-vol3/pdf/CFR-2012-title29-vol3-sec541-602.pdf
© 2014 Advisors Law Group, All Rights Reserved
To learn more about the Federated Employment Practices NetworkSM, contact your local Federated Marketing Representative, or visit www.federatedinsurance.com.
NAEDA co-sponsors Federated Designated Risk Management Seminar
||NAEDA and Federated will again host a 2 ½ day Designated Risk Management Seminar on July 13-15 at Federated HQs in Owatonna, MN. Companies most successful at controlling losses have designated a key person as their risk manager. This person is supported by top management and is both responsible and accountable for identifying loss exposures and implementing risk management solutions. This popular seminar is developed to target specific risk management concerns for the equipment industry. It is a valuable training tool for all risk managers, regardless of their experience in the position. See attached Flyer.
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.
With all of the details that go into keeping compliant personnel files, it's easy to forget why they're necessary. Don’t forget that personnel files are usually the first thing reviewed in litigation and that incomplete, sloppy, or incorrect records can destroy an employer's defense to common employment law claims.
To learn about what you should be including in your personnel files, watch the KPA webinar on The Legal Risk of Poorly Managed Personnel Files.
Free KPA Webinars
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 firstname.lastname@example.org 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 email@example.com.
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.
To subscribe to NAEDA Update by e-mail, send your request to firstname.lastname@example.org or subscribe online at www.naeda.com.
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