Tracks & Treads Spring 2014

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Program applies to select Cat Excavators (312E, 314E, 316E, 318E, 320D, 320E, 321D, 324E, 326F, 328D, 329E, 329F, 335F, 336E, 336F, 349E). See your Finning Sales Representative or visit finning.ca for “Finning Fuel Commitment”, “Machine Delivery Date Commitment” and “Great Prices and Competitive Financing” details. Finance programs may vary over the promotion period. Demo program available at select Finning branches. Promotion runs from January 1, 2014 to December 31, 2014.

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Making the GradeCaterpillar’s No. 12 Motor Grader is still a well-oiled machine at 75 years and counting

Owning the Rental MarketThe Cat Rental Store now counts 30 branches and 13 years under its belt

Walter Energy puts its hefty haul of Cat trucks and dozers to the test in three B.C. coal mines

SPRING 2014

A FINNING CANADA PUBLICATION PM #40020055www.finning.ca

Finning funds

Aboriginal

health liaison

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For a complete line up of Cat Compact Equipment, see your local Finning dealer today.

Cat® Compact machines are multi-purpose tools that will help you cut operating costs and increase efficiency. Caterpillar provides a wide range of solutions designed to increase productivity and operator comfort leading to greater profit margins. Because that’s the point, right?


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On the CoverWalter Energy turns its attention to coal mines in B.C. with Cat's help

Spring 14Contents

14 There’s Coal in the Hills Walter Energy is making gains in efficiency and safety, and industry is noticing

18 Built to be Rebuilt Advanced age and three decades of neglect were no match for a Cat aficionado bent on restoring a No. 12 Motor Grader

24 Rental Redone Right Thirty Cat Rental Store branches extend the reach of the Finning Caterpillar network

27 Constructive Consult Finning hosts Minister Rona Ambrose for a pre-budget meeting

2827

Columns & Departments4 Finning Focus

What are the values you stand for?

5 Letter to the Editor

6 Groundbreaker Finning Canada commits $200,000 to charity: The Gizmo; Festival of Trees; Mobile Vertical Wind Tunnel; Finning sales rep tries coaching on for size

10 By the Numbers

11 Yesterday & Today Why successful companies need to stay current

12 Operators’ Tips When working in tricky conditions, you need eyes in the back of your head

13 Managers’ Tips Measure twice, hire once

22 Service Spotlight Adding critical updates and extended warranties to Cat machines

23 Safety First How worst-case scenario prep can ensure best case outcome

28 Portrait Meet Dayna Egyed

29 Phil’s Business Phil offers full service at The Cat Rental Store

30 Count on Us

14

12

23www.finning.ca �Spring 2014


by hilary anaka, finning editor

The enthusiasm of the Canadian women’s soccer team’s coach is a true source of national pride

Though the 2014 Winter Olympics ended weeks ago, I’m still riding the high of patriotic pride. Before we go much further, I must confess that I started off with a plan to boycott the games on account of the human rights and political issues in Russia. While I stay true to my beliefs, my boycott only lasted until the opening ceremonies. What can I say? I’m a sucker for major events that have the power to unite the country.

Though the time change impacted what and how much I watched, I kept a close eye on the results and tuned in to weekend coverage with friends and fam-ily. I was with friends in pubs for the weekend events, including the crack-of-dawn men’s gold medal hockey game. The performance on the ice was inspiring, but what warmed my heart even more on that chilly Sunday morning was the performance of my fellow Canadians. That includes those who hosted friends for hockey and breakfast, those who stood in line for hours to ensure their spot in the pub, those who watched from bed and those who woke their young kids up to see history being made.

Last fall, I had the chance to hear John Herdman,

the head coach of the Canadian women’s soccer team, speak about how he turned that struggling squad into Olympic medallists in 2012. I’ll be hon-est, I’d never heard of him before and knew virtually nothing about the team or the sport but this Brit’s message inspired the intense patriotism typically reserved for Sidney Crosby’s gold medal game goals.

His talk and his approach to rallying his team centred around the Canadian national anthem. He pulled lines from the song and asked the team things like what their true north was or what they stood on guard for. Powerful questions when you really think about them. Suddenly our anthem meant some-thing more to me. Now it wasn’t only a message to our country and a testament to our people, it was a thought-provoking piece. Because of John’s message, I felt extra pride upon hearing the anthem each time one of our athletes won gold and our flag was raised.

While I am not doing Herdman's message justice, I challenge you to listen a bit closer to the words next time you hear the anthem. Think about what you stand on guard for. Contemplate your true north. And sing along loud and proud.

Words to Inspire

2012 Olympic medallists: Canadian women’s soccer team.

www.finning.ca� Spring 2014tracks & treads


SPRING 2014 Volume 55, No. 1

Publisher Ruth Kelly

[email protected]

FiNNiNG editor Hilary Anaka

[email protected]

director oF custom coNteNt Mifi Purvis

[email protected]

editor Shelley Williamson

[email protected] Wilkins

editorial advisors Jeff Howard,

Michelle Loewen

art director Charles Burke

[email protected]

associate art director Andrea deBoer

associate art director

Colin Spence

ProductioN coordiNator Betty Feniak Smith

ProductioN techNiciaNs

Brent Felzien, Brandon Hoover

circulatioN coordiNator

Karen Reilly [email protected]

advertisiNG rePreseNtative

Anita McGillis [email protected]

coNtributiNG Writers

Robin Brunet, David DiCenzo, Martin Dover, Keith Haddock, Cory Haller, Alex Migdal

coNtributiNG PhotoGraPhers aNd illustrators

Natalie Asperlund, Sarah Lee, Heff O'Reilley

Tracks & Treads is published to provide its readers with relevant business, technology, product and service

information in a lively and engaging manner.

Tracks & Treads is published for Finning Canada by

Venture Publishing Inc.10259-105 Street

Edmonton, Alberta T5J 1E3 Phone: 780-990-0839

Fax: 780-425-4921

Contents © 2014 by Finning Canada. No part of this publication should be reproduced without written permission. www.finning.ca

tell us what you thinkTracks & Treads would love to hear from you. Tell us what you think of the magazine’s stories, columns and look, so that we can improve it and make it a more interesting read.

Send your comments to editor-in-chief Hilary Anaka by email at [email protected] or the old-fashioned way to: Hilary Anaka, Tracks & Treads, Finning Canada, 16830 – 107 Avenue, Edmonton, Alberta T5P 4C3

From the archives:Part of a series of ads from 1977 which still rings true today with the debate for responsible resource development.

PM #40020055

www.finning.ca �Spring 2014



By David DiCenzo

Finning Canada recognized the issues facing Aboriginal people in northern Alberta, and in 2012 committed $200,000 over four years to the Northern Lights Health Foundation to fund a new Aboriginal health liaison position.

Stephanie Sack has been hired for the critical position in Fort McMurray for Alberta Health Services (AHS) and brings a personal viewpoint to her new job. “I’m excited about this position because I’m proud to say I’m First Nations,” she says. “When someone speaks to me about the power of the drum, or the seven sacred teachings, I know what they’re talking about.”

As an Aboriginal health liaison, Sack helps promote awareness of programs and services available to the Aboriginal community in Fort McMurray, and assists in ensuring these programs and services are accessible. She also works to ensure that the programs and services available reflect the health care needs of the Aboriginal community.

The new role came about after a Community Health Needs Assessment conducted by AHS’s Department of Public Health in Fort McMurray in 2008. The Aboriginal population

Aboriginal Health Liason in Fort Mac

was identified with health risks that were higher than average, including obesity, diabetes and respiratory disease, along with high rates of exposure to and use of alcohol, tobacco and drugs. Similar positions have had successful outcomes in other northern Alberta communities such as Grande Prairie, Peace River and Lac La Biche.

Finning does a significant amount of business within the Fort McMurray area and takes great pride in giving back and dedicating resources to meet the needs of the communities it operates in. “As an employer of more than 1,000 people in the oil sands, we take health and safety very seriously,” says Brent Davis, vice-president of oil sands for Finning. “In fact, our commitment to health and safety influences everything we do – even this donation.”

With substantial dealings in Fort McMurray, funding the Aboriginal health liaison position proved a perfect fit for Finning’s support. “This donation is about more than writing a cheque, it’s about making a long-term investment in the community by funding a position that will improve and increase health care for Aboriginal people in the Regional Municipality of Wood Buffalo, and limit the need to travel elsewhere for care,” Davis says.

In her role, Sack promotes healthy lifestyles through presentations to community organizations and helps connect Aboriginal people with services they need. This includes parenting programs, wellness initiatives and the health clinic at the Centre of Hope, which focuses on the needs of the homeless population. She also ensures they’re aware of the need to keep healthy habits, such as keeping up to date on immunizations and influenza shots.

Sack, who began her new position at the beginning of last October, is from the Mi’kmaq nation in Nova Scotia. Working as a maternal child health advisor until moving to Fort McMurray two years ago, Sack brings a wealth of valuable experience to the table. “I can relate to some of the issues in the communities, and that’s important,” she says.

HealtHy Gift: Finning Canada donated $200,000 over four years to fund a new Aboriginal health liaison. On hand for the cheque presentation were (left to right): Joe MacNeil, Northern Lights Hospital Foundation board member; Donna Koch, executive director of public health, addiction and mental health, North Zone, for Alberta Health Services; and Larry Gouthro, general manager, oil sands region, for Finning Canada.



Gizmo Powers Canadian Navy Submarines

Last year, Finning’s Richmond branch played an important role in developing a power solution for the Canadian Navy. The Department of National Defence (DND) was looking for new technology to power its submarines located at the Victoria Shipyards and Finning joined a group of engineering companies to work on a solution. And from the collaborative effort came the Gizmo.

Alan Novotny at Finning’s Richmond branch describes the Gizmo as a very sophisticated battery charger created specifically for the Victoria Class subma-

It’s one thing to hang with the competition. It’s quite another to obliterate them. In the ever-evolving fuel filter market, Caterpillar’s advanced high efficiency models, like the 1R-0749, are do-ing exactly that. In recent testing that measured a variety of qualities like multipass efficiency and capacity, fabrication integrity, impulse fatigue, hydrostatic burst, collapse and cleanliness, Cat’s fuel filters graded significantly higher than its competitors in each category.

“The advanced high efficiency filters are recognized as the premium product in the industry by both customers and competitors,” says John M. McConnell, Caterpillar’s market professional in filters and fluids, based in Mossville, Illinois.

The filters have been used in Cat engines for the past 12 years, and since the release of the ACERT engine they have become the primary production installed fuel filter across most engine platforms. The 1R-0749, for example, is among the top five highest-selling part numbers in all of Caterpillar, which demon-strates the company’s footing in the marketplace.

The advanced high efficiency filters come with a higher ticket price for good reason.

Cat Filters Protect Fuel Components

rines. Finning received a free-issued package of the Gizmo from RIC Engineering and went to work at packaging the device with electrical gear and a switch system.

The Gizmo’s development took two years and today the device is housed at the Seaspan Marine in Victoria. The Gizmo works alongside a custom, fully automated paralleling box that takes the input of four 800 kilowatt generators, which were also supplied by Finning. What sets the Gizmo apart from the pre-existing power system (since named Son of Gizmo) is that the Gizmo was designed into portable containers that can be broken down and shipped as needed. This combination of battery charging and power supply allows the diesel electric subs to carry on with commissioning routines before the two diesel engines and electric generators are ready for service. The new system also integrates charging and resistive discharging capabilities that can be used wherever required.

Finning, along with all the other companies involved, received praise from various engineering association for the work done on the Gizmo.

“If we assume the Cat filters protect the fuel system components to the first scheduled overhaul, test data suggest that using competitive filters could impact a customer’s ability to reach the expected overhaul interval,” says McConnell. “Early injector replacement or other fuel system failures can significantly impact the customer’s cost-per-hour calculations.

“Depending on the severity of the early-hour damage that results from the use of competitive products, the increase in cost per hour can quickly overwhelm any savings realized from buying low-cost, will-fit filters.”



Brian Magrath admits that coaching isn’t exactly in his blood. But the major product support sales rep at Finning’s Prince George branch clearly has a natural ability to lead.

Magrath’s hockey playing days ended as a 13-year-old bantam so he could “just be a kid.” When his own children became sports nuts (Alexis is 14 and Christopher is 12), McGrath gladly looked for ways to support them and their teammates.

“Baseball, soccer, hockey – whatever they happened to be into at the time,” the 43-year-old Magrath says.

He began as an assistant on one of Christopher’s hockey teams but he soon took the reins of the clubs, employing a brand of leadership that is refreshingly inclusive.

“The way I look at coaching, everybody pays the same, so they should play the same,” the well-organized Magrath says. “Kids need to have fun and want to come to play.”

His service was recognized this past year when he and three other men from across the country, selected from thousands of entries, won the Mark’s Work Warehouse Coach of the Year Facebook contest. His wife sent in a written submission highlighting Magrath’s work but when an email to confirm his win came, he didn't believe it was legitimate.

“I thought it was spam at first,” Magrath says with a laugh. “She thought that we would maybe get a gift certificate. To be selected from so many coaches was humbling.”

Magrath represented Western Canada and joined his fellow coaches in Ottawa to catch a game between the Toronto Maple Leafs and the hometown Senators on December 7, 2013. A long-time Canucks fan, Magrath now has a soft spot for the Sens because of the hospitality shown to the group.

He returned to B.C. with three things: a Senators jersey with his name on the back, right-wing Chris Neil’s stick and a bond with the other three coaches.

Magrath's inclusive coaching philosophy was highlighted in 2011 while he was coaching Alexis's hockey team. A young girl with a mild disability was a well-liked member of the group. In the final game of a tournament, with the score tied 2-2, it was

Put Me In, Coach

her line’s turn to go out for a shift and Magrath never once thought of deviating from his approach.

“Alexis dug the puck out of a corner and sent it to the front of the net where the girl was positioned,” he recalls. “She caught the pass and scored her first ever goal, winning the game.”

Tournament hardware was the furthest thing from everyone’s mind.“They were more happy for her than winning the game,” Magrath says.

“It was so neat because she was usually a quiet kid and in the dressing room afterwards, she was participating much more. Her confidence skyrocketed and she blossomed.” The story still gives him goose bumps.



The 20th edition of the Festival of Trees in Prince George and Fort McMurray will go down as historic. The annual fundraisers, which benefit both the Spirit of the North Heathcare Foundation in Prince George and the Northern Lights Health Foundation in Fort McMurray, were a smashing success – and a record-setter, thanks to Finning’s tree entries in the respective cities.

Finning’s “Race Away From Winter” tree featured a NASCAR experience for four in Las Vegas (with additional prizes) and went for a Fort McMurray record $29,500. Finning then offered a second similar trip, which brought in an additional $16,500.

At the Prince George event, Finning’s “We Cover a Lot of Ground” tree sold for an incredible $100,000, nearly doubling the previous record for a tree of $52,000 in 2012. The winning bidder certainly paid a hefty sum but left with a Cat 226B3 skid steer loader, trips to see both the Vancouver Canucks and the Toronto Blue Jays at home, another outing to the Daytona 500, as well a golf getaway in Florida and other skiing and golf prizes.

“We were absolutely floored when it raised $29,500 – it was a huge shocker to us but again this community is just absolutely amazing,” Susanne Chaffey, executive director of the Northern Lights Health Foundation told fortmcmurraytoday.com of the “Race Away From Winter” tree back in November.

“The generosity of our valued donors and sponsors tonight was truly overwhelming,” Spirit of the North CEO Judy Neiser told princegeorgecitizen.com after their event in early December. “We are truly humbled by such incredible support.”

Finning employees are always active at the Festival of Trees, volunteering their time to help with the important fundraiser.

“The tree and its success was a great source of pride this year for the Finning oil sands team and a great representation of the many ways that we reach out to help in our community with volunteers, sponsorships and participation,” says Alanna Dumonceaux, Finning’s executive assistant in the oil sands region.

A Body in FlightStephen Winter’s career path was irrevocably shaped by a trip to Montreal back in 1999. The founder of Bodyflight Mobile Systems Inc. went to Quebec to meet Jean St. Germain, the man who invented the modern day wind tunnel. Winter gave St. Germain’s machine a go and found two things: first, what it felt like to fly and, second, his life’s passion.

“I was very impressed,” Winter recalls. “We have subsequently pursued the dream of human flight offered by wind tunnel technology.”

BMS, based in Vancouver, is intent on realizing that dream for the masses. Winter bought the rights to St. Germain’s Air Nest Aerodium model and acquired the entire unit. Since 2008, Winter and his staff have been perfecting their Mobile Vertical Wind Tunnel so anyone with the courage can try to fly, at a reasonable cost.

BMS and its subsidiary Bodyflight Systems owns two portable units and one stationary, all three of which are powered by Caterpillar C32 1125HP engines. The burgeoning business has taken Winter around the globe. BMS has been contracted to build a portable model for Ufly in Taiwan and a stationary version for Guam-based Skyadrenaline Zone. Rental clients also include Royal Caribbean, Princess Cruises, Alberta Skydivers Ltd and various movie production companies. There is also a location 70 kilometres northeast of Calgary at Beiseker Airport.

The real beauty of BMS’s wind tunnel operation is that there are no limitations when it comes to customers. Who wouldn’t want to fly?

“We see this as an amazing individual sport and a corporate team-building opportunity,” Winter says. “It attracts interest from a wide demographic, from ages five to 85.”

Festival of Trees Shines


www.finning.ca10 Spring 2014tracks & treads

40.6By the Numbers

15 The number of Finning instructors in each technical training group

Total number of apprentices

in Finning’s apprentice group

in 2012

1,700

71,500372Training hours spent in Finning’s

core and product classes

Amount, in dollars, of disaster assistance provided to nine municipalities

Approximate number of Albertans still out of their homes after last summer’s flood

985Total kilometres of roads and bridges closed as a result of flood damage

3.9 millionNumber of whole turkeys consumed by Canadians last holiday season

150 million

1Alberta’s provincial

ranking for the highest average

charitable donation

Per cent of Canadians older

than 15 who volunteer for a charitable organization

27

By the Numbers

The year the Wizard of Oz was released by MGM. It celebrates its 75 anniversary this year.

1939

The number of feature films Caterpillar equipment has appeared in, dating back to 1927. The most recent appearance was in the James Bond film Skyfall, which has Daniel Craig, the lead actor, operating a Caterpillar 320D L hydraulic excavator in the opening sequence of the film.

20The amount Robert Downey Jr. was paid between June 2012 and June 2013, making him the highest paid actor in Hollywood, according to Forbes magazine.

$75 million

The amount Pixar’s Avatar made at the box office in 2009, making it the highest-grossing movie to date.

$2.8billion

Caterpillar makes its movie debut with Holt-Caterpillar tractors in the silent film Man Power.

1927

The cost of a movie ticket in 1948.

40 cents

240 hoursThe length of the longest film, Modern Times Forever (2011) by Superflex, which saw a one-off screening beginning March 23, 2011 in Helsinki, Finland.

4The number of Academy Awards Leonardo diCaprio has been nominated for in his 20-year career. Nominations include nods for What’s Eating Gilbert Grape, The Aviator, Blood Diamond and The Wolf of Wall Street.

The number of Friday the 13th movies made between 1978 and 2009.

12T&T_Spring_14_p06-11.indd 10 3/14/14 12:48:59 PM

DIGGERS: (From the top) The Bucyrus steam shovel became part of Caterpillar's heritage when it purchased the company in 2011; in the '70s the 225 was at the cutting edge of technology.

actions have changed extensively. Over the decades, motive power evolved from steam to gasoline and diesel power, and larger steam machines were replaced with electric power. Early excavators used chains to perform their digging motions, later to be replaced by wire ropes. Now, with the exception of the very largest excavators, hydraulic power prevails.

When the transformation from wire rope to hydraulic excavators occurred in the 1960s, most established American excavator manufacturers attempted to design and produce hydraulic machines. They ran into difficulty because their engineering was steeped in cable shovel design and they couldn't compete with their hydraulics-only counterparts in Europe and Japan. Some manufacturers took many years to forsake features like jaw-clutch steering and tumbler-type excavator track shoes. North American manufacturers tended to employ low-pressure hydraulic gear pumps, where European and Japanese manufacturers used piston pumps operating as high as 5000 psi. As excavators increased in size, the low-pressure systems grew less efficient.

Because of this resistance to take advantage of the latest technology, most North American excavator manufacturers with in-house designs were either taken over by a larger company, or failed completely.

For several years, Caterpillar stood on the sidelines, observing changes in the excavator market. Then, as a latecomer, it added hydraulic excavators to its product line in 1972. The first machine, the 225, was the result of a four-year development program including prototype machines, field tests and an intensive study of excavator trends in Europe and the U.S.

The Caterpillar 225 was at the cutting edge of technology. Its advanced design included variable displacement piston pumps in its hydraulic system, similar to those in European excavators. They worked at much higher pressures than the gear-type pumps previously favoured in North America. The machine employed independent propel motors, one in each crawler side frame, allowing contra-rotating tracks. The 225 set the stage for Caterpillar to become a world leader in hydraulic excavators and challenge the onslaught of European and Japanese-built machines worldwide. This wouldn’t have been possible if Caterpillar had resisted the changing industry.

The history of construction equipment manufacturing is littered with machines that failed. Poor design, lack of dealer support, and inadequate parts availability are common reasons for failure. Sometimes the machine was a great concept ahead of its time. An example of this is the British invention of the articulated dump truck in the late 1950s. It was a brilliant design, but customers did not fully understand its advantages and marketing was unable to sell it. None of the British companies launching this product survived for long.

A major reason for the failure of equipment, or even a company, is that a manufacturer missed out on the latest available technology, or resisted change. Forward-thinking companies that maintained their position at the cutting edge of technology are the ones surviving

today. A study of excava-tor manufacturing – the oldest in the industry – reveals many examples of defunct companies that resisted change.

The Erie Steam Shovel Company, leading producer of construction-size steam shovels in the 1910s and 1920s, failed to design a diesel machine to compete with rivals. Erie was taken over by the Bucyrus Company in 1927, which discontinued its steam products. This became part of Caterpillar’s heritage when it purchased Bucyrus International Inc. in 2011.

The basic elements of an excavator haven’t changed since the first models were built in 1834. The concept of utilizing motive power to dig with a bucket, swing left or right, and dump a load was evident on the very first machine. But the methods behind these

The Strong SurviveThe industry is evolving, and companies who resist no longer exist

www.finning.ca 11Spring 2014

by keiTh haddock


Tips

fluid and other gauges, and following up with dipstick testing if indicated. It’s important to look for leaks or other signs of potential problems before every shift, he says.

Due to the nature of the work and the amount of stress that the machines are often under, McLeod ensures that full maintenance inspections are done every 250 hours in addition to regular services with Finning. McLeod recommends that every company with machines that regularly need to work outside of ideal conditions determine a routine inspection period and stick to it.

Extreme Excavating’s main business specializes in underground utilities and wastewater projects. This, too, has its own set of challenges because almost every dig is going to be around pre-existing infrastructure. Operators in these situations must be extra attentative to avoid damaging existing utilities and any other equipment operating on site. “It’s important you be incredibly observant and work at a safe pace,” McLeod says. “There’s usually a lot going on and the last thing you want to do is put someone else in harm’s way or do damage.”

McLeod goes further, suggesting that operator survey their surroundings every hour so that they are always up to date on any potential hazards.

Standard maintenance inspections and an acute awareness of the immediate surroundings are great tips for any operator, but are particularly important for operators working on unstable terrain and in close proximity to pre-existing infrastructure. Daily, routine inspections go a long way toward increasing the equipment’s longevity and decreasing the amount of unscheduled downtime, especially when working in the most extreme conditions.

When you’re working in tricky conditions, you need to have eyes in the back of your head, and a willingness to step up your machine inspections

By martin dover

Tough Terrain Tips

in his role as an owner/operator for an excavating company operating out of Kamloops, J.D. McLeod is no stranger to using Cat equipment on challenging terrain and in extreme conditions. It should come as no surprise that his company is called Extreme Excavating.

McLeod’s fleet consists of several Cat machines: a 12M motor grader, a 305 excavator and his most often used piece, a D6K dozer. “We usually use that one throughout the process,” he explains. “When we start a project, we use it to strip and stockpile the organics; we also use it when backfilling pipe trenches and in cut-fill situations when building roads.”

Extreme Excavating works on urban sites, but a large portion of the company’s business happens in B.C.’s rugged interior. This means operators must know their way around steep slopes. “We do a lot of work on some pretty rugged terrain,” McLeod says. “A lot of the time this terrain is unstable so you definitely need to know how to handle the machine. You must be fluent with the controls and always keep yourself stable by knowing where your centre of balance is.”

As you can expect, working on inclined landscapes can be hard on a machine’s brakes. The potential safety risks associated with braking trouble are obvious, but

there’s also a major financial consequence to braking incorrectly. Applying brakes with too much force, too quickly, can overheat the braking system, which can warp brake discs and wreak havoc on other machine components.

Consistent, scheduled maintenance checkups are important for any machine, but particularly so when working in difficult conditions. McLeod says he is often battling the elements, whether it’s the weather or the sludge ponds that exist on some jobsites. He requires his operators to take an active part in the safety routine, inspecting their machines daily, checking air filter indicators as well as fuel, hydraulic,

operators

Consistent, scheduled maintenance checkups are important for any machine, but particularly so when working in difficult conditions.



managers

You have to get the right people. Some learn faster than others and some have more experience, but you have to be willing to spend the time with them.”

Kilbreath warns that, even though the investment of all that time may seem like it’s costing your company valuable resources, it may actually save your business money in the long run. “It’s estimated that the cost of a bad hire is 2.5 times the cost of the actual hire itself. So it what would originally cost you $1,000 now costs you $2,500, because you’ve wasted time and money on someone, and you now have to do it all over again.”

Since 2012, the Jobbers team has grown from three to 12. And even before the employee is hired, the mentoring begins. “Anybody that we are interviewing comes into the office and meets the team. They hang for a day, and get the opportunity to see for themselves if they would be comfortable in that environment,” says Pillar. The exposure to the company culture gives the opportunity for the team, and the potential employee, to ensure the right fit. It’s a move that Kilbreath believes can weed out bad hires before they even happen.

“You want someone who, when they sign their offer letter, has a very good sense of what they will actually be doing every day. You don’t want the person after the third day to say, ‘This is nothing like what I expected,’ and then up and quit on you,” says Kilbreath.

“So even a day of job shadowing before the hire can save you time and money. When that’s all said and done, you have the stairway to a successful hire: Know what business goals you want. Know what profile, skills and cultural fit you need, and then spend the time with the person,” says Kilbreath. “You can’t go wrong.”

By Cory Haller

A Time to HireThe stairway to hiring for success is knowing the culture, skills and profile you’re looking to fit

When Sam Pillar, co-founder and Ceo of management software developer Jobber, hired his first employee in 2012, he all but worked himself to death before taking that inevitable step.

“We had read lots of material by founders of tech companies that had been through the expansion stage growth we were experiencing,” says Pillar. “And one of the biggest pieces of advice that kept floating to the surface was that you shouldn’t hire for a new position until the pain of performing those functions on your own is excruciating.”

It wasn’t until it became apparent that the company needed a dedicated sales person – a role that Pillar could no longer keep up on his own – that he made his hire.

It’s a move that Layne Kilbreath, the service leader of talent acquisition for Bowen Workforce Solutions (a company that specializes in employment recruiting), agrees with. “To me, the best advice for managers is, before anything else, to sit down and figure out the business reason that would be solved by another person,” says Kilbreath. “What’s the people component that’s measurable?”

In the case of Jobber, it was a case of just too much work to handle alone, says Pillar. “We started to see how we were missing opportunities due to not having a dedicated resource on that side, so we hired our first full-time sales guy and account manager,” says Pillar. “But the very first step was me actually being on the sales team. I developed a really good foundation of how to approach that position.”

The experience Pillar had in the sales position was integral to training his new hire. Having filled the role himself for as long as he could, Pillar then mentored the new employee over the course of a month, directly transferring the knowledge and expertise his organization developed since it’s inception. It’s a move that created a long-lasting employee that now mentors new hires in Pillar’s stead.

Pillar knew something from the get-go that most managers, according to Kilbreath, have to learn over time. “Managers often underestimate the time that is required of them. I think it’s just an expectation that a new hire will change things overnight,” says Kilbreath. “The truth is you are on an inclining scale over time.

“Anybody that we are interviewing comes into the office and meets the team. They hang for a day, and get the opportunity to see for themselves if they would be comfortable in that environment.”



There’s

Coal in The hills

By Alex MigdAl

Walter energy is making gains in efficiency and safety, and the tight coal industry is noticing


Triple ThreaT: Dan Cartwright oversees three mines in northeastern B.C. for Walter Energy, including Wolverine Mine.


or Dan Cartwright, overseeing the sprawling, lucrative mines in northeast British Columbia is like coaching a rough-and-tum-ble football game. Say the team’s got a run-

ning back who plays poorly in the first half. When he’s off on the sidelines, the coach pulls him aside. “We’re expecting 4.28 yards per carry out of you and you’re only getting one,” the coach tells him.

“Sometimes even your best players need a sidelines pep talk,” Cartwright says.

Handling unforeseen shortcomings has defined Cartwright’s two-and-a-half years as president of Walter Energy’s Canadian operations. Times were promising when he joined the metallurgical coal company in 2011. Walter, headquartered in Alabama, had just acquired the Vancouver-based Western Coal Corp. for $3.3 billion, giving the leading U.S. metallurgical coal producer valu-able access to untapped reserves in B.C.

The three mines – Wolverine, Willow Creek and

Brule – punctuate the rugged terrain neighbouring the quiet towns of Tumbler Ridge and Chetwynd. As of December 31, 2012, they held 135.8 million metric tons of recoverable coal reserves, including 72.1 million metric tons at potential future mine sites.

The largest mine, Wolverine, produces premium hard coking coal, used to make steel, and features a coal processing plant and a rail load-out facility that can han-dle 3.5 million metric tons per year. Walter’s Canadian mines employ about 850 people, roughly 20 per cent of its 4,000-person workforce.

It’s no surprise, then, that the acquisition seemed so promising for Walter, which already oversaw profitable mining operations in Alabama, West Virginia and the United Kingdom. Joe Leonard, Walter’s chief interim executive officer at the time, called the takeover in late 2010 a “transformative transaction at a time when global demand for metallurgical coal is surging.”

Walter especially sought quality reserves that could compete favourably in the

Canadian reserves, with their ocean freight access, were best positioned to compete in those surging markets,

which include South Korea and Japan.

F


DOWN TO BUSINESS: Willow Creek Mine is one of three mines for Walter in B.C., holding 135.8 million tonnes of recoverable reserves.


The Coldest Journey

progress that has been made in the cost structure at the mine, when we see signs of sustainable market pricing conditions, we would expect to ramp up production,” CEO Walter J. Scheller III said about Willow Creek in March 2013.

Much of that progress in cost structure has been due to Cartwright’s eagle-eyed approach to pin-pointing inefficiencies. “We need to make sure we’re operating in such a way that we get everything we’re paid for. How efficiently you can run it is how you keep costs down.”

For starters, 2013 was the first year that all three B.C. mines ran as company-owned operations, as opposed to mining contractors managing them. While the latter made sense for the relatively new Western, Walter is best suited for producing in-house. The move led Walter to buy equipment from its contractors, while most of its personnel left due to job continuity.

Ensuring the training and safety of new and

Asian markets. Walter’s Alabama mines were ideally situated for South America and Europe. But Asia, fuelled by China’s exploding economy, was driving much of the global growth for metallurgical coal. And Canadian reserves, with their ocean freight access, were best positioned to compete in those surging markets, which include South Korea and Japan.

“That’s what we found here in B.C.,” Cartwright explains. “The things we were hoping to get in this acquisition, we’ve been able to get. But from a reserve stand-point, nobody saw the market doing what it’s done in those two years.”

Thanks to strong Chinese demand, global coal consumption rose by about 46 per cent between 2006 and 2010. But global prices have tumbled in recent years, with supply outpacing demand. A report by the Economist Intelligence Unit in 2010 predicted that demand will continue to wane, as coal consumption is expected to grow by only 18 per cent between 2011 and 2015.

It’s a grim forecast for Walter, which needs to pay for resources like crews, fuel and electricity, regardless of whether they’re exporting product. With the price of production wavering precipitously close to the market price, Walter has made it its mission to proactively respond to market pressures.

In early 2013, it made the decision to curtail operations in Willow Creek, downsizing from 350 employees to 80. It’s the fifth mine Walter has curtailed or idled in recent years to strengthen its balance sheet. “Given the tremendous


KEEP ON TRUCKING: Walter Energy uses about 35 of Caterpillar's 793 mining trucks, one of the largest fleets in Western Canada.


existing staff proved just as important. The company implemented a number of changes in its safety program, including a policy that asks workers to do their own inspections and note any potential hazards. The Brule mine, as a result, finished last year without a single reportable incident – its best safety performance to date. Wolverine reported a small number of incidents, but no

lost time. Both were dramatic improvements over previous years, Cartwright says. “Safety issues are incredibly disruptive. When you have an accident or a near-miss, something you have to stop and address, it’s a symptom of some-thing else going wrong. There’s much more of a disruptive influence than people tend to think.”

That leads to an equally important Walter strategy: productivity. Take shovelling, for instance. Walter ensures that its workers maximize the materials

they transport in a shift. If someone falls behind, supervisors address the issue during shift changes. Likewise, costs can be reduced during those shift changes by minimizing the time it takes to perform safety inspections and to relay messages to staff.

“A big driver for Dan and his team is operational excellence,” says Gordon Finlay, vice-president of mining for Finning Canada, which has serviced Walter with Caterpillar equipment since 2011.

Walter uses about 35 of Caterpillar’s 793 mining trucks, one of the largest fleets in Western Canada. Its sizable haul also includes more than a dozen D10 dozers. Cartwright says Walter’s pursuit of produc-tivity intersects with Finning’s goals of increasing efficiency. “All equipment has issues from time to time, but I believe those issues are minimized through the approach that Caterpillar takes with its testing facilities and equipment development pro-grams,” he says. “I’ve worked with a lot of Caterpillar dealers and I’m really pleased with the support we get from Finning.”

That’s largely due to a business relationship that ex-tends beyond the confines of purchasing and mainte-nance. Both Cartwright and Finlay serve on the Coal Association of Canada’s board of directors, which is how they first met. The two quickly developed a mutually beneficial business plan. Finning brought in technicians to perform on-site assessments for Walter and develop a list of recommendations. The goal was to establish a maintenance strategy that minimized Walter’s costs per hour and ton.

“What makes Dan’s team unique is that they realize the importance of making a right decision and its long-term implications,” Finlay explains.

Cartwright notes that it takes a lot of work on both sides to make a relationship like this work well. “It takes leadership on both parties to make that hap-pen,” he says.

Walter’s future looks brighter, thanks to its best ef-forts to reduce costs. “It’s in our advantage to operate these mines at the very lowest cost and in the safest manner possible,” Cartwright says.

With that said, Walter has resumed exploration of the Belcourt-Saxon reserves near Tumbler Ridge, for which it shares 50-per-cent interest. This reserve could prove profitable, with a half share amounting to three to five million tons a year. Even with its existing reserve base, Walter’s growth could more than double under improved market conditions.

Although Brule and Wolverine Creek aren’t im-mune from the same curtailment that befell Willow Creek, Finlay remains optimistic about the year ahead. The most important takeaway, he says, will be resisting the temptation to increase production costs when prices inevitably swing back up. And like any good football coach will tell you, it all starts with the team you recruit.

“This is a challenging environment to operate in. It’s beautiful, but it’s remote and the geography is complex,” Cartwright says. “It really speaks to the need for people in the delivery chain – starting with Finning, to the mines, to the railroads – to better work together. I’m really pleased with the degree to which that’s happening.”

“It’s in our advantage to operate these mines at the very lowest cost and in the safest

manner possible,” Cartwright says.



Three decades of neglect were no match for a Cat aficionado bent on restoring a No. 12 Motor Grader

LUCKY No. 12: Kevin Steed was such an admirer of his grandfather's Cat grader that he completely overhauled it.

By RobiN bRuNeT

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built Rebuilt

to be n 1938, when the Caterpillar No. 12 Motor Grader was introduced to the marketplace, Cat engineers knew it was built to last, but they prob-

ably had no idea how revered the grader would still be in the 21st century.

The No. 12 was born in a year that many of today’s young admirers would have great difficulty relating to. In 1938, General Motors began mass production of the diesel engine. The Nazis invaded Austria, which Britain’s then-Prime Minister Neville Chamberlain famously declared was nothing to worry about. Du Pont announced the creation of nylon. Radar was installed for the first time in a passenger ship. Howard Hughes flew around the world in 91 hours, and the Graf Zeppelin II, the world’s largest airship, made its first flight.

The No. 12 debuted 25 years before Kevin Steed was born, but the Peace River-based Caterpillar fan, 53, is such an admirer of the grader that he completely rebuilt the one that his grandfather Keith bought new

I



in 1958. “Granddad used it in oil field construction as did my father Gordon,” says Steed, who is the owner of Steed Grading Ltd. “As a kid, I would play on the machine, and by the time I was 14, my dad taught me how to operate it for use in the neighbourhood.”

Although the Steeds retired the No.12 in 1981 and it sat on the family property accumulating rust, the younger Steed always had a soft spot for the machine. “It was an incredibly rugged piece of equipment, so when the idea came to restore it I jumped at the chance, if only to honour granddad who passed away in 1984,” he says.

The machine was originally introduced as the “Caterpillar Diesel No. 12 Auto Patrol” in the summer of 1938, but was renamed a “Motor Grader” just one year later. Weighing 20,360 pounds, the No.12 Auto Patrol featured a 12-foot blade, six forward speeds and two reverse speeds. The No. 12, along with other auto patrol models, was primarily used in road building and snow removal.

As any seasoned grader operator knows well, there were many improvements made to the No. 12 over the decades. Caterpillar introduced articulated frames to the product line in 1973 with the 12G. The 12H increased productivity even further with a new elec-tronically controlled eight-speed transmission, and a redesigned cab debuted in 1995, providing operators a better view.

Today, the No. 12 is manufactured at the North Little Rock Facility, Caterpillar Brasil Ltd. and Caterpillar Suzhou Company Ltd. As far as Pat O’Connell, Worldwide Motor Grader product man-ager is concerned, the reason for its remarkable lon-gevity is simple: it was designed right in 1938, and has been built right throughout its entire history, to this very day. “For 75 years we’ve continued to innovate and deliver a superior product,” he says. “Cutting edge then, and still today.”

www.finning.ca Spring 2014 19


TEAM WORK: Kevin Steed, left, and mechanic Hugh Foster worked together to bring the No. 12 up to speed.

Four other machines produced by Caterpillar have reached a 75th anniversary, too: the D6, D7 and D8 Tractors in 2010 and the D4 Tractor in 2011. The No. 12 Motor Grader is the first non-tractor machine to reach this milestone.

Although the Caterpillar Visitors Center recently opened a new exhibit in its Heritage Gallery that showcases No.12’s expansive history, Lars Harpe, Finning International Inc.’s product support repre-sentative in Peace River, is more impressed by the

abundance of old No. 12s still in the field. “The No. 12 evolved into the 120s, 140s and 160s, but the original still keeps going.”

Harpe, a long-time colleague of Steed (whose firm boasts a fleet of 14 graders, 12 of which are Caterpillar), knows first-hand Steed’s dedication to yellow iron, particularly the No. 12. “When Kevin decided to

undertake a complete restoration of the family’s No. 12, it was with the intention to make it good enough to perform jobs if required – and he achieved this without resorting to after-market parts or shortcuts.”

Soon after he learned to operate the No. 12, a teenaged Steed used it to blade a neighbour’s sulky training track (a sulky is a horse-pulled cart) and other farm-related chores. He joined the family firm – Steed McCloud Oilfield Construction – in 1980 and built roads with a Champion 740 grader. The last time he used the No. 12 was in 1981, to build a driveway for his mobile home. “It dropped a valve, so we parked it on the property, and there it sat with weeds growing up under the cab until last year.”

It was Steed’s mechanic, Hugh Foster, who was inspired to rebuild the No. 12. “My company was doing well and we had some spare time on our hands, so in February I said ‘Why not?’ ” recalls Steed, who, with Foster, lost no time pulling the grader out of the weeds, removing the engine and completely disman-tling it – which, in hindsight, was overkill. “It turned out the only thing wrong with the engine was that

Steed and Foster embarked on a hunt for original parts,

which, to their astonishment, proved relatively easy to find.



the lifter assembly had broken off from the camshaft,” he says. “Everything else was still fine.”

The body of the No. 12 was rusty, the windows were broken and the tires were shot, plus mice had eaten away the upholstery. Steed and Foster embarked on a hunt for original parts, which to their astonish-ment proved relatively easy to find. “We relied on Lars and the original parts list that came with our No. 12, and often it was just a matter of phoning up and ask-ing for the required part,” recalls Steed. “Admittedly, the parts came from all over the world, but to take one example I was absolutely floored that an outlet in Belgium still had original weather stripping available.”

Finning was Steed and Foster’s primary parts source. “The hardest item of all to track down was a float ball for the pump motor carburetor, but we eventually found one somewhere in the U.S.,” says Steed.

Only a few items couldn’t be found, such as a clutch pressure plate and a fuel tank for the pump motor; both were manufactured new according to original specifi-cations. “Also, Ace Machining & Welding Ltd. of Peace River did some yolks and splicing, and Peace River Upholstery replaced what the rats had eaten,” says Steed. “Mike’s Sandblasting stripped the body, then it was painted with heavy duty enamel.” New conven-tional (not radial) tires were purchased from Kal-Tire, and the windows were easily replaced.

It cost Steed $80,000 for the restoration, $64,000

of which went towards parts, labour, mechanical and machine shop work (the tires alone cost about $6,000). When the revived No.12 was finished in October of last year, Steed lost no time building a pro-tective tent for the machine on his father’s property. However, he also put it to work blading his yard and giving local kids – including his own three daughters and one boy – rides in the cab.

Currently Steed is contemplating showcasing the grader at regional exhibitions, but his main plan for the machine is to simply display it in memory of his grandfather and a living legacy of Caterpillar’s manufacturing excellence. “And as everyone in the neighbourhood knows, the No. 12 is available for planning driveways and other chores,” he says. “I can’t thank Hugh Foster enough for bringing this machine back to life. I was just the parts runner, but he was the one who really did all the work.”



A fresh coat of paint can do wonders for a vehicle’s appearance. But heavy equipment owners throughout the western provinces get much more than a splashy yellow paint job when they send their Caterpillar machine in for a certified rebuild from Finning Canada.

As machines age and near the end of their life cycles, Finning’s certified rebuild of either an entire piece of equipment or a powertrain has become the preferred option that many customers choose when upgrading their fleets.

“A rebuild provides much more value for a customer’s investment in a Caterpillar machine,” says Ehtisham Anwer, Finning’s product development manager, engines. “By the time a rebuild is complete, a customer will have a like-new machine with critical updates and extended warranty options.”

That value is an attractive proposition for customers in Finning’s territory. And the 10-step rebuild is becoming a popular choice; Finning will do between 60 and 70 of them in a calendar year at various locations including Sparwood, Prince George, Calgary, Edmonton, Surrey, Mildred Lake, Fort McKay and the Centre of Excellence in Red Deer.

The certified rebuild and power train program is available for equipment such as: track-type tractors, track-type loaders, wheel loaders, compactors and wheel tractors, motor graders, wheel tractor scrapers, off-highway trucks and tractors, excavators and one pipelayer model, the 589. The length of a rebuild can vary depending on the model of machine and scope of work required but typically, they take between six and 12 weeks.

The critical first step is an inspection/evaluation in which a customized rebuild plan is developed, along with a cost estimate.

More than 350 tests occur in a certified rebuild, while a power train rebuild includes 200.

Next is the disassembly, where all hoses, belts, seals, gaskets, bearings, knobs, wiring, switches and gauges are replaced with new parts, some 7,000 in total for a certified rebuild and 3,000 on a powertrain. The reconditioning phase includes examination of frames, (straightening if necessary), welding and

Get a whole new machine for a fraction of the cost

By DAviD DiCenzo

The 10-Step Rebuild

Spot light

reinforcements. Worn linkage pins and shaft bearings are replaced, while hydraulic systems are returned to original levels.

Engineering updates and power train tests follow, the latter of which includes the disassembly, inspection and reconditioning of new or qualified parts for the engine, fuel system, transmission, torque converter, differential, final drives and radiator.

After each of those components is bench tested, it’s time to put the machine back together with a careful reassembly. Certified rebuilds also include the replacement of all wiring. Once reassembled, there is rigorous performance testing at several stages: turbocharger boosts, throttle response, transmission and steering clutch response, among others. And to assure the unit meets established levels of system cleanliness, contamination control procedures are conducted.

By this time, the machine is humming like a new one right from the dealership. To make it look the part, that trademark coat of yellow Cat paint is applied, along with a new serial number, which not only identifies the machine but also entitles the owner to a like-new standard warranty, dramatically increasing any resale value.

The final step is a customer evaluation to ensure that the operators are satisfied with the performance of the machine or power train, in its own working environment.

But Caterpillar’s Certified Rebuild Program doesn’t end after the operators test their machines out. The value of that piece of heavy equipment is only increased with parts warranties and extended powertrain coverage, supported by the world’s largest dealer and parts distribution network. “When a certified rebuild is complete, you have a machine that performs just like a new one would,” says Anwer. “But at a fraction of the cost.”

“When a certified rebuild is complete, you have a machine that performs just like a new one would. But at a fraction of the cost.”


service


By Cory Haller / ILLUSTRATION By HeFF o'reIlly

Work in any trade can have hazards. The upside? Most of the time, an employee has someone else watching his or her back. But not every job calls for a team; and when you’re working alone, even the most unassuming hazards can become serious – or even life threatening – situations.

A bee sting could trigger an allergic reaction; any number of minor injuries (such as a twisted ankle) could leave one helpless. The list could go on: mal-functioning equipment causing injury. Car accidents. Gas leaks. Predatory wildlife. A heart attack. Serious injuries could go unnoticed for hours and help may not readily available.

Preparing for the worst-case scenario could ul-timately save lives. According to Noel Hill, general manager for health and safety for Finning Canada, preparing for the worst is the key to working alone safely.

And Finning is prepared for the worst-case scenario. Finning has the resources to provide in-house com-munication support systems such as its SPOT locators with GPS tracking and a Person Check Program, which requires all employees to call and check in with the 24-hour Customer Support Centre before they leave for a remote site. The employee will leave all pertinent information as to their schedule (where they are going, how long they will be there, what they are doing and whether they will be making any stops along the way) and check in periodically until they arrive back home safely. It’s a program that can be easily adopted by any company, large or small. And there are third-party companies who can be contracted to monitor lone workers. But that’s not what Hill considers the most important part of risk prevention.

“The most important thing is to conduct a job hazard assessment,” says Hill. “That’s a pre-work risk assess-ment to determine what the hazards are associated with the activities you’re about to undertake and what risks are posed to you. And in that case, what are the controls that I have to put into place to make sure that you are going to be safe?”

Hill says any time there is a doubt about whether or not a lone worker should proceed, he or she needs to take the time to speak to management to ensure doing so can be done safely. “It’s important that people truly

Preparing for the worst-case can ensure the best-case scenario when working solo

Lone Ranger

assess the risk and make sure they have a means of communication in case some-thing goes wrong.”

Communication is the lone worker’s guardian angel. All provinces in Western Canada have legislation that requires employers to have a support system to ensure safety of lone workers. And more often than not, that system relies heavily on com-munication before, during and after the worker starts the job.

Hill’s call for communication is not only sound advice, but policy as well. “The whole purpose of [Finning’s working alone policy] is to make sure that employees and supervisors are well in tune to what controls need to be put in place when we have workers outside of a supervised environment,” says Hill.

Ian Simpson, a safety professional for 14 years and current corporate safety manag-er for Scott Builders, believes that while the legislation in Alberta is a step in the right direction, its wording can be left open to interpretation. “They talk about reasonable. But one person’s definition of reasonable [risk] is different from another person’s definition of reasonable,” says Simpson. “And it’s only when something goes horribly wrong that people step back and start looking at what the definition of reasonable is.”

For Simpson, the answer is simple, despite how the legislation can be interpreted; he believes that companies should do more than just the bare minimum. He advises always considering the worst case and putting a plan together based on that. “It’s no different with smaller companies than with big companies,” says Simpson. “It’s not a very complicated topic. It’s just a matter of having the appropriate plan in place and knowing what the response is going to be ahead of time if the plan doesn’t go the way you expected.”

PLAN AHEAD: HOW TO STAY SAFE WHEN WORKING ALONE 1. Conduct a hazard assessment for the environment and work you will be doing and plan accordingly.2. Inform your superiors where and when you will be working, or travelling, alone.3. Provide your contact information and that of your destination, if possible.4. State your intended destination and your estimated time of arrival.5. Indicate the licence plate number of the vehicle you are driving. 6. Use a GPS device.7. Check in at pre-determined times with your supervisor or lone work program provider.



story By Rick OveRwateR

thirty branches strong, the cat Rental Store helps you expand your fleet

hen caterpillar started producing smaller machinery like skid steers in the late 1990s, it quickly

realized the largest market for this product was the rental industry. Unfortunately, selling primarily to rental

companies wasn’t ideal because these outfits often wouldn’t live up to the top-notch maintenance and service standards that Cat dealers are known for, leaving rental customers with products that didn’t cor-rectly represent the world-class ingenuity and integrity of Caterpillar machinery. At first it seemed like there were just two options: sell to

By JORdan wilkinS

W

Rental Redone Right

unaffiliated rental companies or refuse these sales and lose a large portion of its market share. Fortunately, a third option emerged: to develop a rental business within the dealership. For Finning (Canada) that solution was The Cat Rental Store (TCRS), which has become a win-win for both the company and for Cat customers.

The Cat Rental Store was formed in 2001 and, although the smaller Cat equipment that has played an important role since the company’s inception is still very popular, the store has grown to include much of Cat’s catalogue as well as thousands of other

www.finning.ca24 spring 2014tracks & treads


rental products ranging from aerial lift platforms and trench shoring to portable lights and generators. But, while TCRS offers thousands of products that aren’t made by Caterpillar, Gord McDougall, the company’s general manager, is quick to point out that many are still powered by Cat engines. “We have hundreds of different items across a very wide range of product lines,” he explains. “People are often very surprised to learn about the breadth of products and services that we can provide.”

A quick look at the company’s website, catrents.ca, gives a good idea of what McDougall is talking about. In addition to Caterpillar loaders, excavators, rollers and tractors, TCRS provides power solutions, weld-ing, instrumentation and industrial tooling, pumps and temperature control systems, just to name a few. “When the business plan was put together for TCRS in 2001, the decision was made to compete in the general rental space,” explains McDougall. “In order to do that, you need a lot of different products like we have. We’ve actually become probably the largest provider of trench shoring in Western Canada.”

Each TCRS branch varies in size depending on its location; some have a staff of six or seven while others are as large as 45. A typical branch consists of rental counter specialists, external salespeople, technicians as well as yard and warehouse workers. In total, TCRS has approximately 475 employees across 30 branches.

The Cat Rental Store offers extensive safety and training services for every piece of equipment in its catalogue through its commercial safety training group. Customers are also given the option to rent equipment with maintenance packages, meaning that TCRS will continue to service the equipment while it’s out on the jobsite, allowing customers to focus on what they do best. But TCRS’s service isn’t limited to equipment. The company also offers business services to ensure the rental process goes seamlessly

for customers. Industry experts at TCRS also offer consultation services for any upcoming project a client might have. McDougall says one of TCRS’s most popular services is for industrial shutdown and turnaround initiatives right from the plan-ning stage through implementation and follow-up evaluations. “We often assist companies like TransAlta, Agrium, Spectra Energy and others with their plant shutdowns,” says McDougall. “These services have evolved as we found that this market was underrepresented. It’s a perfect fit for us, though, as the markets are complimentary to one another. Most plant shutdowns require a lot of the equip-ment and other services we and Finning already provide. There’s usually quite a lot going on during these kinds of projects and we like to think that The Cat Rental Store has the angles covered for our customers.”

Renting equipment as opposed to purchasing is a popular choice for short-term projects like plant shutdowns, McDougall says, but there are a number of other situations where renting may be best-suited for clients. Often, TCRS clients will own an entire fleet of Cat equipment, but the latest project demands a few extra pieces to complete the job efficiently. Other times, customers will have secured a job in a remote location and, rather than risking wear and tear by hauling their own equip-ment, they will rent from a TCRS location in Western Canada, closer to the jobsite.

Customers can tailor their fleet to the task at hand with all the newest mod-els and latest technology. For the duration of the job, maintenance costs on the equipment will be lower, too, because of TCRS’s custom service packages that can cover internal service, service tooling and spare parts for rental equipment. Storage costs are completely eliminated, as customers can call the store or drop off the equipment at the nearest branch when they’ve finished using it and TCRS will take it from there. Another rental situation that McDougall says is popular is when customers wish to field test a piece of equipment they are considering purchasing. This hands-on experience allows customers to get the best feel for how the equip-ment works and how it would complement their current inventory. If it’s a non-Cat

related product, TCRS can then sell the equipment to the customer – new or used. If it is Cat equipment, TCRS will direct the customer to the appropriate Finning contact for the purchase.

To McDougall, this harmony with Finning is key to the company’s success and is part of the reason that TCRS has grown into such a vital component of the Caterpillar and Finning network over the past 13 years.

In fact, Finning is actually one of The Cat Rental Store's largest customers, as the company will often use products from The Cat Rental Store when assembling mining equipment on a job site. The Cat Rental Store has all the equipment neces-sary to make these projects run smoothly for everyone involved. “What the TCRS does is further expand the product-and-service basket that Finning already offers. Ultimately, what we do is give Finning yet another opportunity to support its cus-tomers,” McDougall says.

Working in harmony with Finning is key to the The Cat Rental Store's success and is part of the reason it

has grown into a vital component of the Caterpillar and Finning network.

Community ChampionsIn its 13-year history, The Cat Rental Store (TCRS) has become an important member of each community in which it does business. Whether through its employee volunteer program or its continual community investments, TCRS has a reputation of giving back. In 2013 alone, TCRS employees clocked in an amazing 5,500 volunteer hours, stepping up everything from victim services units to the Special Olympics and cleanup during last summer’s flood. The company itself also shows its support for an extensive number of programs and initiatives. Last year’s contribution to United Way was just under $200,000. TCRS also supported the Tour of Alberta cycling race and was a significant contributor of Valour Place in Edmonton. In 2015, TCRS will join Finning to support the Canada Winter Games in Prince George.



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Contact your local Finning sales rep today for details.


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In attendance for the roundtable were: Juan Carlos Villegas, president, Finning Canada; Andy Fraser, executive vice-president, Finning International; Gerald Bourret, communications director, West Edmonton Business Association (Safeguard Print Innovations Inc.); Sean Ivens, president, Advanced Medical Solutions; Stephen Kushner, president, Merit Construction; Larry Pals, president, Pals Geomatics; Jason Vance, president, Bubbleup Marketing; and Catherine Vu, vice-president, West Edmonton Business Association (Pro-Active IT Management).

Ambrose said many of the ideas discussed in pre-budget meetings would be included in the actual 2014 budget. “Consulting directly with Canadians is an integral part of the budget process,” she said.

inning Canada played host to Minister of Health, Regional Minister for Northern Alberta and MP Rona Ambrose for a pre-budget meeting on January 17.

Ambrose contacted Finning to host the meeting of Edmonton business leaders, to give them an opportunity to address their concerns about economic recovery, creating jobs and financial security for families in a roundtable setting prior to the federal budget being tabled on February 11.

Minister Ambrose said that the roundtable was part of the fed-eral government’s efforts to consult with Canadians to find ways to strengthen the economy.

“The number one priority for Canadians remains the economy. The Economic Action Plan is keeping Canada on the right track, with over one million net new jobs since the end of the global recession – the best growth record among all G-7 countries,” said Ambrose in a release.

By Martin dover

F

Financing Leaders Weigh in on Federal Budget

GRADE FASTERWITH INDUSTRY

FIRST STABLEBLADE CONTROL

LARGE DOOR WINDOWS PROVIDE

OUTSTANDING VISIBILITY TO BLADE EDGES

TRACTIONCONTROL

SPACIOUS, COMFORTABLE, PRESSURIZED

CAB

EASY TO READDISPLAY KEEPSYOU INFORMED

OF SYSTEMCONDITIONS

FUEL EFFICIENTCAT C6.6 ACERT™

ENGINE

Redesigned to help you meet your goals, the New D6K2 improves your fuel efficiency and productivity. It is an excellent platform for the integrated AccuGrade grade control system, which will help you get to target grade faster with fewer passes and less manpower. Stable Blade Control senses ground conditions and allows better finish grading results at higher speed, with less effort. With the D6K2 you’ll enjoy the lowest owning and operating costs in this size class.

INTRODUCINGTHE NEWCAT© D6K

OPERATOR FOCUSED,PRODUCTIVITY DRIVEN.

Contact your local Finning sales rep today for details.


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DIGGING IN: MP Rona Ambrose (third from right) stopped by Finning Canada for a pre-budget roundtable in January. Among Finning representatives participating were Finning International executive vice-president, Customer and External Relations, Andy Fraser (fourth from right), and Finning Canada president and Finning International COO, Juan Carlos Villegas (fifth from right).



Portrait: Dayna Egyed

For Dayna Egyed, a parts apprentice at Finning Power Systems in Richmond, it’s im-portant to stay active. This is exactly the right attitude for the hands-on work she loves at Finning. “I’ve always been interested in finding out how things work,” she explains. “When the opportunity came to join Finning; I took it on and I love it.”

Egyed joined Finning seven years ago, and the relationships she’s built play an important role in supporting a fund-raising initiative she recently started with two friends. Run Like A Girl was originally created to inspire a healthy and active life-style, and the initiative evolved into a fundrais-er for various organi-zations. Each race is built around a theme for a specific cause and raises donations from entry fees and T-shirts sales. It has supported everything from the Canadian Breast Cancer Foundation to the One Fund Boston, benefit-ting people impacted by the 2013 Boston Marathon attacks.Egyed’s co-workers have been supportive of Run Like A Girl, and the group is preparing for a race on March 30, benefitting children with brain cancer. Visit runlikeagirl.ca.


photography by STUART McCALL


Hi Bill, what can I do you for?

For starters you can refill

my diesel here.

No problem...

Anything else?

Um...

I'm looking to beef up my landscaping

profile.

My skid steer spends too much time on the back

of my flatbed moving from job to job.

Plus, I’ve lined up some of the residential

developments east of town. They need a finer touch.

I can set you up with a couple of rental minis so your guys can be working on more

than one place at a time.

MINIs, eh?Yup. The Cat D5K2 is a small track-type tractor with a low profile and

zero tail swing.

Very manoeuvrable.

Howzit do on a slope?

The track pretty much clings to a hillside.

What else do you have?

A full range of stuff perfect for landscaping. For example, there’s the 309E CR SB mini hydraulic excavator.

Mm-hm.Attachments?

The best Cat offers...

...including buckets and a huge range of hydraulic powered tools for fine-touch

landscaping operations.

Anything else?

Easy rental terms, great insurance and...

...a bottomless cup of coffee!Little machine, with a

big net power of 48.5 kilowatts and an operating weight of 8,333

kilograms.

ILLU

ST

RA

TIO

N: N

ATA

LIE

AS

PE

RLU

ND



Count on Us

000TT-SpringIntoSavings-FP.indd 1 2/25/14 4:15:43 PM


BACKED BY SCIENCEPreventive maintenance has always been an important part of Finning business, but it wasn’t until 1970 that Finning introduced the first fluid analysis laboratory in Vancouver’s service department. No other dealership or equipment distributors offered the scientific wear analysis service in-house. Today, an average month sees about 21,000 customer oil samples go through the oil labs in Surrey and Edmonton.


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THINKING ABOUT ADDINGAN EXCAVATOR TO YOUR FLEET?


PUT US TO THE TESTOnly Finning has the machines, service and technology to empower your success. Now we’re laying it on the line for every customer with:

THE FINNING FUEL COMMITMENT

MACHINE DELIVERY DATE COMMITMENT

“TRY BEFORE YOU BUY” DEMO PROGRAM

GREAT PRICES AND COMPETITIVE FINANCING

Call your local Finning representative today and PUT US TO THE TEST.

Program applies to select Cat Excavators (312E, 314E, 316E, 318E, 320D, 320E, 321D, 324E, 326F, 328D, 329E, 329F, 335F, 336E, 336F, 349E). See your Finning Sales Representative or visit finning.ca for “Finning Fuel Commitment”, “Machine Delivery Date Commitment” and “Great Prices and Competitive Financing” details. Finance programs may vary over the promotion period. Demo program available at select Finning branches. Promotion runs from January 1, 2014 to December 31, 2014.

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Documents

Tracks & Treads Spring 2014