feb 2015

DEALER Northeast

The Newsletter of NoRThEAsT EquipmENT DEALERs AssociATioN, iNc.FEBRUARY 2015 c Vol. 17, No. 191www.ne-equip.com

NEDA Salutes our Supporting Advertisers. It is our pleasure to list the names of those advertisers who support NE Dealer each month. We trust their advertisement will be remembered when goods and services are required by you, our dealer members. It is good to do business with companies who are interested in doing business with you and your industry association.

Happy New Year...Here are a few reasons for lifestyle equipment dealer optimism in 2015. The U.S. economy is improving and many people have disposable money to spend because of the stronger job market and lower gas prices. Interest rates are expected to remain low and consumer sentiments the highest it has been since January 2007. OPE Manufacturers and most other OPE Industry leaders are saying that they are very optimistic for about a 4% increase in sales growth for 2015. The International October 2014 GIE-EXPO in Louisville, KY for the OPE Industry was a real winner and drew about 11% more OPE dealers than the previous year. Tim Wentz and Ralph Gaiss were there from our association manning a shared booth with our partner the Ohio-Michigan Equipment Dealers Association. Ralph said he and Tim saw and spoke with more member dealers than in previous years.They also spoke with many non-member dealers that stopped at the booth and they did get three new member dealers to join the association during the show and when they returned, they received calls from other dealers that had an interest to join. If you never attended this fantastic show for dealers only, don't miss this opportunity on October 21, 22, 23, & 24, 2015 and mark it on your calendar now...so you don't forget it.

IN THIS ISSUE:3 Observations from the Field4 Annual / Regional Meeting Speakers6, 8, 10, 12 Industry News7 Annual / Regional Meeting Sponsors9 NEDA February Light Specials11 TwoGreySuits – HR Policies14 Accomplishing Results15 Grounds Maintenance Equip. Blue Book16 OSHA Updates to Recordkeeping Rule

18 Risk Management Strategies20, 22 Veterans' Information23 Health Care Information 25 The Family Board in a Family-Owned Business26 NEDA Holiday Schedule27 Equipment Industry News28 Marijuana in the Workplace

ADVERTISER’S:2 Haylor, Freyer & Coon 5 New York Farm Show13 BallastStar13 Charter Software17 Electronic Merchant Systems17 PartnerShip 21 SouthWestern Assoc. – Valuations29 Federated Insurance30 Fastline Publications

opE Dealer council The OPE Voice of NEDA

COUNCIL MEMBERSDale Magie, Chairman, Liberty Twp., OHDale Fronheiser, Bechtelsville, PADan Huff, Pomfret Center, CT

OPERATING STAFFKim Rominger Bill Garling Dennis Alford Dave CloseRalph Gaiss Tim WentzScott Grigor

NEDA ... Northeast Equipment Dealer Association(CT, MA, ME, NH, NJ, NY, PA, RI, VT)

Northeast Dealer | FEBRUARY 2015 … 3

This publication is designed to provide accurate and authoritative information in regard to the subject matter co v ered. It is furnished with the understanding that the Northeast Equipment Dealers Association, Inc., the publisher, is not engaged in rendering legal, accounting or other professional service. Changes in the law duly render the information in this pub-lication invalid. Legal or other expert advice should be obtained from a competent professional. Some of the editorial material is copyrighted and may be reproduced only when permission is obtained from the publisher and the association.

Board of DirectorsOfficers

JOhn e. KOMArisKY, President / Past Pres. 2012Main & Pinckney Equip Inc. / Auburn, NY315-253-6269 - FAX 315-253-5110New Holland, Simplicity, Brillion, Bush Hog [email protected]

JOsh AheArn, First Vice President / Treasurer /NAEDA OPE Dealer CouncilAhearn Equipment, Inc. / Spencer, MA508-885-7085 • Fax: 508-885-7261Kubota, Cub Cadet, Stihl, NAPA [email protected]

rOBerT sPOhn, Second Vice President / Past President - 2005Sharon Springs Garage / Sharon Springs, NY518-284-2346 • Fax: 518-284-2774AGCO, White, Hesston, Gehl, Kubota, Allis, [email protected]

eD hines, Immediate Past President 2014, 2001Hines Equipment / Cresson, PA814-886-4183 • Fax: 814-886-8872Case IH, Gehl, New Idea, Cub [email protected]

BriAn cArPenTer, NAEDA DirectorChamplain Valley Equipment / Middlebury, VT802-388-4967 • Fax: 802-388-9656New Holland, Case IH, Kubota, [email protected]

rALPh GAiss, CEO and Executive Vice Pres.800-932-0607, Ext. [email protected]

DirecTOrsscOTT BAir, Director ElectMountain View Equipment, Inc. / Plattsburgh, NY518-561-3682 • Fax: 518-561-3724John Deere AG/CCE, Claas, Kuhn Knight, Kverneland, Stihl, Husqvarna, Frontier, Servis, [email protected]

GArY hAMMOnD, Past President - 2006Hammond Tractor / Fairfield, ME207-453-7131 • Fax: 207-453-7825 John Deere Ag, CP, Golf, Forestry, Kuhn, Kubota, Woods, Bush Hog, Walker, [email protected]

BrAD hersheYHoober, Inc. / McAlisterville, PA717-463-2191Case IH, JCB, [email protected]

nATe shATTUcK, Past President - 2010Devon Lane Farm Supply, Inc. / Belchertown, MA413-323-6336 • Fax: 413-323-5080Yanmar, Landini, Monosem, Ferris, Simplicity, Stihl, [email protected]

scOT L. sTAnTOn, Past President - 2003Stanton Equipment Inc. / East Windsor, CT860-623-8296 • Fax: 860-627-9832John Deere Ag., Knight, Athens, [email protected]

WenDeLL WALLDrOff, Past President - 2002Walldroff Farm Equip., Inc. / Watertown, NY315-788-1115 • Fax: 315-782-4852New Holland, Hesston, Woods, White-New Idea, AGCO, [email protected]

DAviD WArner, will be completing Jeff Bull's termWarner Tractor & Equipment Inc., Troy, PA570-297-2141Case, Case/IH, Takeuchi, LinkBelt, LandPride, Agr. & Construction [email protected]

NORThEAsT EqUiPmENT DEAlERs AssOciATiON128 Metropolitan Park Drive • Liverpool, NY 13088

800-932-0607 • www.ne-equip.com

Lifestyle and residential custom-ers seem to be responding positively to record stock market values, lower fuel prices, unemployment and the general perception that the US Economy is on the rebound. Robin Schmahl, reported on AgWeb.com, “Analysts continue to make downward revisions to the price aver-age for the year as prices weaken and milk production continues to increase”. Commodity prices seem to have found stable ground, with hints that “select”

commodities may even be poised for growth and higher prices in 2015. How exactly the “markets” work themselves out and what the net effect on the equipment market place will be has yet to be determined. That said recent dealer reports have been upbeat. Most dealers were satisfied with 2014 sales and remain cautiously optimistic about their outlook for 2015. On the legislative front we’ve received positive feedback regard-ing our work to amended Vermont’s sales tax exemptions for Ag and related state enforcement activities. That feedback is a direct result of dealers making the commitment to actively engage and participate in the legislative process and their/our ability to col-laborate with and ultimately gain the support of like-minded asso-ciations and partners within the agricultural community. I’d like to thank Gary and Jason Morse for their work organizing meetings, hosting dealers, legislators, government officials and there help connecting with our partners in the Ag community – their work was invaluable! While the process isn’t fully completed it’s rewarding to see how effective dealers can be if we talk with one voice and carry a strong message! We’ve also received word that Outdoor Power Equipment sup-pliers have hired a lobbyist and are asking that legislation be intro-duced amending the state’s Dealer Bill of Rights to exempt Outdoor Power Equipment and their dealers. We’ve seen similar actions (divide and conquer) by manufacturers in other states, asking and/or demanding that select market segments be exempted, with con-struction being the most popular segment of late, an effective strat-egy. It’s important that we work hard against any attempt to divide and conquer. As has been demonstrated in Maine, Vermont and New Hampshire, “When we work together as an Equipment Dealer Association, we speak in a unified voice. Together we can achieve what individuals could not; the ability to attain our mutual goals.” It goes without saying the more voices we have, the more successful we’ll be!

When you REAP the benefits of membershipyour PROFiTs will follow!

Observationsfrom the FIELD

Tim WentzField Director717.576.6794

4 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”

John Chapin

Anne Salemo

About Our Speakers at the2015 ANNUAl / REgIoNAl MEETINgSAnnE SAlEmoPresidentCharter Software Inc.

WHAT’S KEEpINg YoU Up AT NIgHT?Anne Salemo is president of Charter Software Inc.,

a NEDA-endorsed provider of business management systems specifically designed for the equipment dealer industry. Anne’s strong accounting knowledge, industry experience, and dedication to the success of equipment dealerships are vital contributions to Charter Software's ongoing development efforts.

Anne is well-known and respected by industry peers as a dealership business expert. Building on her experience as a CPA for a large construction equipment company, Anne began her career in dealership man-agement systems in 1988 with her father Gerry Fricke, original founder of Charter Software. She later acquired the company in 1996 and continues to actively lead Charter’s mission to help equipment dealers increase their profitability using intuitive, integrated, and cost-effective business solutions.

Anne holds a degree in Business Administration from Marquette University and has completed numer-ous courses in Dale Carnegie leadership and business training. She is currently an associate member of the Associated Equipment Dealers Association, Indepen-dent Distributors Association, the Material Handling Equipment Dealers Association as well as the Canada East, Deep South, Northeast, Mid-America, Midwest and Montana Equipment Dealers Associations. Anne is also a member of the Colorado Society of CPAs, the American Institute of CPAs, and Vistage, a leading peer advisory and executive leadership organization.

!it's not too late to register!

mONDAY, FEBRUARY 2, 2015Sheraton Portsmouth Harborside Hotel

Portsmouth, NH

WEDNEsDAY, FEBRUARY 4, 2015Holiday Inn @ Wolf Road – Albany, NY

FRiDAY, FEBRUARY 6, 2015Ramada Inn – Geneva, NY

mONDAY, FEBRUARY 9, 2015Hampton Inn – Grove City (Mercer), PA

WEDNEsDAY, FEBRUARY 11, 2015Bird-In-Hand Restaurant – Bird-In-Hand, PA

John ChApInPresidentComplete Selling, Inc.

SUpERcHARgE YoUR ATTITUDE AND SIgNIfIcANTlY INcREASE SAlES

An award-winning speaker, author, trainer, and coach, John has over 26 years of extensive business, sales, customer service, and management experience. In his 26+ years, John has been a number one sales rep in three industries and has sold in some of the toughest markets and economies. His primary subjects are busi-ness building, sales, customer service, and motivation.

John was voted the second best public speaker in Massachusetts and Rhode Island and is a member of the National Speakers Association. He has delivered hundreds of presentations to Insurance Agents, Real-tors, Financial Planners, Entrepreneurs, Small Business Owners, Bank and Credit Union personnel, Mortgage Brokers, Corporate Salespeople, and Government per-sonnel among others.

John writes a monthly sales article for over 100 publications across the country and is the author of the 2010 sales book of the year: Sales Encyclopedia which is the largest, most comprehensive “how-to” book on sales and selling.

Prior to starting Complete Selling Inc., John sold bank equipment for Diebold, Inc. where he became the top salesperson in New England during his first year. John also spoke about his sales success at both semi-annual and annual sales meetings.

Before Diebold, John worked for Micro Arc Weld-ing Company where he took a three year-old, non-prof-itable branch of the business which was in only two States at the time, and made it profitable within four months. He expanded the business to 48 States and five continents within two years and through expansion of the one branch, more than doubled total company rev-enues.

John started his sales career as a financial advisor at age of 21, and one month later the stock market fell 22% in one day. John thrived in this tough market and went on to become the youngest branch manager for a national brokerage firm. While still managing his own accounts, he brought the branch from a ranking of 46th out of 52 to 11th. He was also among the top 1% of financial advisors nationally.

REGisTERTODAY AT

www.ne-equip.

comquestions,

call

18009320607


John Deere presence restored in Greenfield, MA

padula Brothers Dealership Coming to Greenfield, mA Padula Brothers will open a new store in Greenfield, MA, to sell and service John Deere, Stihl, Honda and Kuhn equipment. The store will bring John Deere back to the area after two years. "It's serving a void that our customers have felt from John Deere not being (in this area)," said manag-er Terry Robison, who was the former general manager of the RN Johnson dealership before they closed March 2013. The owners of Padula Bros. are: Bryan Mansfield, and his wife, Caroline Mansfield.

Snow Blower Rating By Consumer Reports (opE) Snowblowers from Toro, Cub Cadet, Troy-Bilt and Craftsman are among Consumer Reports top picks for single-stage, two-stage and compact two-stage snowblowers this year. Ed Perratore of Consumer Reports cautions that bigger snowblowers aren't always a better choice, as the engine must also be powerful enough for the larger size. While corded-electric snowblowers are quieter than gas-powered models, "the new gas-powered Craftsman 88694, $900, has a muffling design that reduced noise significantly in our tests. We tested three Power Smart models of varying path widths; all came with the same 208-cubic-centimeter engine. That engine in the 22-inch-wide Power Smart DB7659-22, $500, gave it great throwing distance. But the same engine in the 28-inch Power Smart DB7651A-28, $745, threw the wet sawdust we use to simulate heavy snow only a few feet during our plow-pile test. Corded-electric snow blowers are really for only the lightest powdery snow. Their one advantage over gas-powered snow blowers is that they make less noise—though that’s changing. The new gas-powered Craftsman 88694, $900, has a muffling design that reduced noise significantly in our tests. Like the 26-inch Toro Power Max 726 OE37771, $900, the 26-inch Craftsman doesn’t require the operator to wear hearing protection for safety. But the Craftsman is significantly better overall and is the quietest gas model we’ve tested.

TOP-RATED sNOW BlOWERs If you're shopping for a snow blower, here are the top three from Consumer Reports' tests of two-stage and single-stage gasoline models. None of the electric models in our tests made our top-picks list.Two-stage gas • CubCadet31AH57S,$1,500 • Troy-BiltVortex289031AH55Q,$1,300 • CubCadet930SWE31AH95SU,$1,600compact two-stage gas • Troy-BiltVortex249031AH54Q,$1,100 • Craftsman88173,$680 • ToroPowerMax724OE37770,$800single-stage gas • ToroPowerClear721E,$570 • ToroPowerClear62138458,$650 • CubCadet221LHP31AM2T6D,$550


CUMMINGS & BRICKER

NortheastEquipmentDealersAssociationEstablished 1901

Committed to Building The Best BusinessEnvironment for Northeast Equipment Dealers

Thank you SponsorsNEDA would like to thankthe following sponsors fortheir support of the2015 Annual / Regional Meetings.

News Helping Dealers Succeed

INDUSTRY


Caterpillar Dealers Find new Venue To Recruit Technicians Caterpillar and its dealers are work-ing with David Powers Motorsports (DPM) and the National Hot Rod Association (NHRA) to sponsor a drag-ster in the popular motor sport circuit during the racing season. The partnership represents an inno-vative approach to recruiting service technicians for CAT dealers in the U.S. and Canada. The proposed agreement follows a successful technician recruiting pilot program already underway with Caterpillar, some of its dealers, DPM and the NHRA. A shortage of qualified service tech-nicians prompted the pilot. Caterpillar and its dealers found the NHRA drag racing format offers a rich recruiting environment of highly skilled candidates with mechanical backgrounds. Recruiting, especially in this arena, is vital to the future growth of both Caterpillar and our dealers. We are con-stantly looking for creative investments like this to secure talent for Caterpillar. The events have yielded significant leads for dealer service: technician candidates. Equipment dealers should consider this area for possible employees as well.

new Features in ASpEn Customer portal! customers can now order parts through the portal. Incoming orders automatically create an invoice in ASpEN. The ASPEN Customer Portal also provides your customers with read-only access to their information including addresses, phone numbers, and email addresses on file, as well as the ability to see and reprint invoices as needed. Customer Portal provides dealership customers the ability to order parts and access their account information using any Internet-connected device. More and more dealership customers are looking for this type of “self-service” functionality to eliminate time spent waiting in line at the dealership or on the phone. customer Portal is included in AsPEN at no additional charge.

It's charter Software's 30th Anniversary! We've been moving dealers forward for 30 years! Take a look at the story of our company history and some of the dealerships who helped us get to where we are today. See our website. There's still time to register for the ASPEN User Conference. We are reaching record numbers of attendees, but still have room for you! The ASPEN User Conference has moved to a larger facility outside of the downtown area. See Charter’s website for details on the conference, location, session details and reasons to attend.

It's the first time the FAA has given drone permits to companies in these two industries

FAA Grants Drone permits to Agriculture and Real Estate Companies The Federal Aviation Administration (FAA) recently issued its first-ever drone permits for use in the agriculture and real estate sectors.Exemptions to the ban on commercial drones were made for Advanced Aviation Solutions in Spokane, Wash., for “crop scouting,” and to Douglas Trudeau of Tierra Antigua Realty in Tucson, Ariz., for enhanced aerial foot-age of buildings, according to an FAA statement. Advanced Aviation Solutions will use a 1.5-pound eBee drone to take photographs of farm fields for measurement and inspection purposes, while Trudeau will use a Phantom 2 Vision+ quadcopter to “enhance academic community awareness and augment real estate listing videos,” the FAA said. Among other rules, the permits require commercial drones to have an on-the-ground “pilot” and an observer, and that the drone must not leave the operator’s line of sight. Previously, the FAA had granted drone permits to 11 companies in film-making, oil and gas and landfill industries, according to the Associated Press. Congress has pressured the FAA for years to establish guidelines permitting commercial drone use, and has mandated the agency to integrate drones into U.S. airspace by September 2015.

~ Morning Ag. Clips


Northeast Equipment Dealers Association Serving Farm, Industrial & Outdoor Power Equipment Dealers Since 1901

*** February Specials*** LED High Power Strobe Lights

STRL4W STRL4A STRL4R

• Extremely Bright 4 LED’s • Voltage 10 – 30 volt

• Flush Mount • Polished Aluminum Base

• 5”x 2” Rectangle • 3 Year Limited Warranty

STRL4W STRL4A / STRL4R Regular Price: $39.40 Regular Price: $31.25 Special Price: $31.50 Special Price: $24.95 Reg. Sell Price: $54.31 Reg. Sell Price: $41.00 Case: 10 Units Case: 10 Units

Order Form Item # Qty. Cost Ea. Total

Dealership Name: __________________________ STRL4W ____ $_______ $_______ STRL4A ____ $_______ $_______ Shipping Address: __________________________ STRL4R ____ $_______ $_______ City, State, and Zip: ____________________________ SUB TOTAL ________ Terms: NET 30 DAYS TO APPROVED MEMBERS (If not for resale) TAX ________ FREIGHT: PREPAID ON CASE QUANTITIES SHIPPING ________

Payment Method (Prepayment is required) Check Enclosed (Payable to NEDA) __________ Credit Card -VISA or MC- Acct # ____________________________________ Exp. Date: ___________ (Circle One) Cardholder Name: _____________________________ Signature: _______________________________ 128 Metropolitan Park Drive, Liverpool, New York 13088 – PO Box 3470, Syracuse, New York 13220 800-932-0607 / 315-457-0314 Fax: 315-451-3548 Website: www.ne-equip.com

OFFER EXPIRES: February 28, 2015


INDUSTRY


making Diversified Financial part of Your new Years’ Resolution

By Brett Ehlers January is the beginning of new resolutions, whether it’s a fad diet or a yearlong gym membership that you use for a month, we’ve all been guilty! However, here at Diversified Financial, we want to be a part of your withstand-ing 2015 resolution. Diversified is com-mitted to exceeding your expectations, both on the dealer and customer level. So whether you are an end-user or an equipment dealer, WE WANT YOUR BUSINESS. As part of your 2015 New Years’ Resolutions, please consider mak-ing Diversified your lender of choice. On the dealer level, we take pride in bringing value to your dealership. Put the financing in our hands while you go out and sell more equipment. We will work with your customers direct and take all the hassle out of it for you. You are the dealer; we are the finance com-pany, so let’s both do what we do best! On the end-user level, please con-sider us next time you are making an equipment purchase. We understand that financing is part of your decision making process when purchasing equip-ment, so let us talk you through our flex-ible payment options and terms to help you make the buying decision that much easier. Diversified is blessed with a very knowledgeable staff who are here to help, so please visit dfsfin.com for more contact information and give us a call.

Ready or not —Smart Cards are Coming!

There’s no getting around it. EMV – also referred to as “Smart Cards” or “chip and PIN” — is well on its way to the United States. Widely used in other countries, EMV is the global standard for secure transactions, slated to replace the current signature-based credit and debit card system by the end of 2015. The key element of EMV involves using dynamic digital data in every transaction, greatly increasing security and reducing the risk of fraud. If you haven’t given EMV much thought, or if it seems too far in the future to worry about, here’s a word to the wise: The future is here. Now is the time.

Ready or not — EmV is coming. Now, more than ever, customers expect their transactions to be safe, secure, and protected. High profile, highly publicized breach-es, like the ones that occurred Home Depot, Target, and others, have put them on high alert. As customers are on alert, merchants expected to have the technology in place to protect customer data and provide peace of mind. EMV is such technology, making it sig-nificantly harder for hackers to gain mass access to account informa-tion—like they did in the Home Depot and Target breaches. Although EMV will not come into effect until October 2015, delaying migration could be risky business. Many are taking steps to adopt the technology now. Since the U.S. is one of the last countries to make the shift – and as fraud becomes harder to commit incountries where EMV is more advanced – fraudsters will likely focus their efforts on non-EMV targets here. Adoption of EMV technology can help you avoid risk and liability for losses in the event of a breach. In addition to minimizing the very real risk of a security lapse, taking early steps toward EMV also delivers business benefits. If you start preparing now, your transition can be relatively painless and hassle-free. You can budget for the cash outlay necessary for EMV hardware purchases, you can plan for IT infrastructure changes, and you can avoid the chaos and disruption to day-to-day business operations that are inevitable if the EMV deadline sneaks up and catches you unprepared. Having a trusted partner alongside you for your EMV journey is critical to a smooth migration. As you prepare for this shift in pay-ment technology, be sure to ask your payment processing provider if their solution – and their devices – are PCI compliant, EMV-ready and NFC capable.

~ Provided by Charter Software


MESSAGE FROM THE

PRESIDENT

“Hi, I’m John Komarisky, General Manager of Main and Pinckney Equipment Inc. and also new President of the NEDA Board of Directors. I recently had the opportunity to join a presentation on the Human Resources Service that NEDA has arranged for our members. Under license with TwoGreySuits, NEDA is offering their on-line HR service to its members for an annual subscription fee of just $325, a 45% discount from the retail cost. Once I realized how comprehensive the TGS System is and the impact effective people management can have on our dealerships success, I didn’t hesitate to sign up my company. This is a great member benefit that NEDA has arranged for us at an unbelievable low cost and I urge you to take advantage of it. It is simple to sign up, click here https://neda.twogreysuits.com/sign-up and you will be taken to NEDA’s customized sign up page. Fill in the information including the association code which you can get from the NEDA office. Thank you.”

For more information or questions, please call Dave Close or Ralph Gaiss at the

Association at 800-932-0607


INDUSTRY


get a handle on the rental busi-ness.” Subscribers to the ARA Rental Market Monitor™ service already are aware of the equipment rent-al industry’s potential for signifi-cant growth in 2015 and beyond. The subscription-based service for American Rental Association (ARA) members is provided by ARA and Rental Management.

how to know when to expand your rental fleet? Use a dealership management system such as ASPEN from Charter Software, a NEDA-Endorsed sys-tem vendor, which features rent-al utilization reporting. ASPEN’s Financial Utilization Reporting provides detailed insight into the utilization of specific types of equipment, assisting dealers in making important decisions regarding fleet expansion or when to transfer units. Dealers can also track rental revenue streams by a particular market segment, equip-ment type, etc. Rental industry data provided courtesy of the American Rental Association (ARA) via ARA Rental Market Monitor™, a partner-ship with IHS Economics. Charter Software is an ARA member and is not otherwise affiliated with or endorsed by the ARA. For more information on ASPEN's rental capabilities, see chartersoftware.com/aspen-rent-al, or to subscribe to the ARA Rental Market Monitor, contact Tracy Johannsen at the ARA at 800-334-2177, ext. 270, or [email protected].

~ By Charter Software

Industry experts agree- equipment rental is on the rise! Equipment rental industry reve-nues in the US have been growing at a rate of at least three times that of the general economy over the past few years, and industry experts and analysts don’t expect the pace to slow down anytime soon. This is more than just an indus-try trend; experts say it’s a shift in the way business is done. American Rental Association executive vice president and CEO Christine Wehrman views a “secular shift” in the way other businesses think about rental as the catalyst for the increasing number of equip-ment dealerships who are either expanding their existing rental fleets or adding rental to their mix. “The benefits of renting equipment have become abun-dantly clear, such that it’s now understood to be a great way to manage and operate a business,” says Wehrman. “Renting simpli-fies people’s lives, so they can focus on getting their work done in a smart, efficient and more eco-nomical manner,” she says. According to Wehrman, in addition to the benefits of get-ting the right equipment for the job and getting the latest model, with latest technology and envi-ronmental compliance standards, renting makes sense from an economic standpoint as well. No capital outlay allows for better financial management, and long-term costs are also reduced by eliminating costs and personnel need for long-term maintenance and storage. An expected increase in total

construction expenditures each year is cited as one of the main factors that will impact rental rev-enue growth, which has exceeded the overall growth rate of the industries it serves during the last few years. In a forecast for 2015 by IHS Economics, an increase in over-all U.S. equipment rental industry revenues of 7.7 percent is antici-pated in 2016, followed by 8.5percent in 2017 and 9.3 percent in 2018tototal$49.8billion.

The construction and industrial equipment segment, which leads this rental growth, is expected to increase revenueby9.8percentin2015, and anticipated to be followed by a 7.9 percentincreasein2016,8.6percentin2017and9.0percentin2018.

Many dealers are taking note, realizing the potential impact rental can have on their business by just bringing people into the door and also rounding out their “off” season. In a recent ARA survey, (September 2014) 72% of respon-dents indicated plans to expand their rental fleets in 2015. In his September article, “Top Three Ways to Improve Your Business,” Garry Bartecki, financial consul-tant to the equipment industry, says, “Like it or not, you have to

Rental continues to Rise


Your business information— wherever you are!

● Accounting ● Inventory ● Rental ● Sales ● Service ● CRM

● OEM Integration ● Mobile Access● Customer Portal ● Data Mining

Smart Equipment Dealers Guide to Managing Remotely

chartersoftware.com/managing-remotely

NortheastEquipmentDealersAssociation

Established 1901

Endorsed Provider

Complete, NEDA-Endorsed Dealership Management System


This is the second installment of a two-part article that began in the NE Dealer January issue.

In addition to investing the time and energy to explain the whys and the ways of the dealership’s goals to staff and personnel, dealer principals and department managers must be willing to make the communication process a two-way street. Of course, this means that managers must listen to what their personnel are saying. Sometimes what the employees want and what management thinks they want are two very different things, as we have discussed in earlier articles concerning what really motivates personnel. To instill a feeling of cooperation, managers should share some decision making power with employees. Giving employees a say in how things are done is the second most important motivator. While principals and managers should make decisions about dealership and department policies and budgets, employee groups should be able to, at the very least, have some say in what happens in their end of the business. Employee input is critical to the financial strength of the dealership. After all it is through and with the dealership personnel that all tasks will be accomplished. The genuine key motivating factor with employees is recognition. It should be further recognized that this recognition does not necessarily always require financial recognition sometimes a simple “thank you” is quite enough. Share the rewards of mutual efforts with all those involved. Install a formal recognition program. (Employee of the Month type program) Many of the most successful equipment dealers have found that their recognition programs are most effective if they undergo frequent updating and change. As an example, one month the award for the employee of the month might be tickets to a ball game and the next month, it might be dinner for two at the employee’s favorite restaurant, or tickets to a major local event. Praise employees who have completed a difficult task, gone beyond the normal daily routine, provided additional customer satisfaction, have been cooperative and pleasant under pressure, or have been supportive to programs or other departments or employees. Praise is easy to give, doesn’t cost anything and does wonders for morale. Use praise often in your dealership and see what an effective motivator it truly is. Always remember to give credit where credit is due! Successful and effective principals and managers will always know what is going on in the dealership and

in the department’s area of responsibility! Many successful equipment dealers use a form of what is called management by walking around, or as they say in Australia “walking about”. This is a process of getting managers out of their offices to look at their operations first hand, either within the dealership or out into the field. It is an essential ingredient to managing people, especially if the managers have never worked “on the line” or “in the field”, or if it has been a long time since they have done either. For a department manager this may be just listening and watching how the phones are being answered, how the customer is treated over the phone or from behind the counter. Is suggestive/related selling taking place? Is the customer being taken care of courteously? For the service manager it means seeing how the job is finished. Cleaning out the cab of a backhoe, washing the windows on the cab before delivery can be an effective factor of customer satisfaction. For the sales manager it may mean calling on accounts with the sales person, listening and watching for customer reaction and “feedback”. For the dealer principal it means watching for clues indicating “strengths and weaknesses” within the dealership. Some of the major benefits of developing the “walk-about” process are: First hand information: In order to get the kind of information that reports can’t measure, managers need to “see for themselves” by going around the layers of management and getting a feel for the factors that can impact the equipment dealers success. By using management by “walk-about”, a dealer principal or department manger becomes visible and immediately accessible to employees. Your personnel appreciate a manager they can relate to, someone who presents themselves as unpretentious and easy to talk to and this all helps to achieve an atmosphere of confidence and trust. “Walk-About” can provide direct feedback by talking directly with employees and this can open up valuable, but previously untapped, resources. This assists the dealer or manager in picking up on ideas and problems that need attention. Once again, these are but suggestions for achieving results through and with your dealership personnel. The key person in this entire scenario is you the dealer principal or you the department manager. Nothing will happen unless you desire to make it happen!

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&oSHA

OSHA’s updated record-keeping rule expands the list of severe injuries that all employers must report to OSHA. Establishments located in states under Federal OSHA jurisdiction must comply with the new require-ments as of January 1, 2015. Establishments located in states that operate their own safety and health programs should check with their state plan for the implementation date of the new requirements.

What am i required to report under the new rule? Previously, employers had to report the following to OSHA:

•Allwork-relatedfatalities•Work-relatedhospitalizationsofthreeormore

employees•Startingin2015,employerswillhavetoreport

the following to OSHA:•Allwork-relatedfatalities•All work-related inpatient hospitalizations of

one or more employees•Allwork-relatedamputations•Allwork-relatedlossesofaneye

Who is covered under the new rule? All employers under OSHA jurisdiction must report all work related fatalities, hospitalizations, amputa-tions and losses of an eye to OSHA, even employers who are exempt from routinely keeping OSHA injury and illness records due to company size or industry. An amputation is defined as the traumatic loss of a limb or other external body part. Amputations in-clude a part, such as a limb or appendage, that has been severed, cut off, amputated (either completely or partially); fingertip amputations with or without bone loss; medical amputations resulting from irrepa-rable damage; and amputations of body parts that have since been reattached.

how soon must i report a fatality or severe injury or illness? Employers must report work-related fatalities within8hoursoffindingoutaboutthem. Employers only have to report fatalities that occurred within 30 days of a work-related incident. For any inpatient hospitalization, amputation, or eye loss employers must report the incident within 24 hours of learning about it. Employers only have to report an inpatient hospitalization, amputation or loss of an eye that occurs within 24 hours of a work-related incident.

how do i report an event to OshA? Employers have three options for reporting the event:

•BytelephonetothenearestOSHAAreaOfficeduring normal business hours.

•Bytelephonetothe24-hourOSHAhotlineat1800-321-OSHA(6742).

•OSHAisdevelopinganewmeansofreportingevents electronically, which will be available soon at www.osha.gov.

What information do i need to report? For any fatality that occurs within 30 days of a work-related incident, employers must report the eventwithin8hoursoffindingoutaboutit. For any inpatient hospitalization, amputation, or eye loss that occurs within 24 hours of a work-related incident, employers must report the event within 24 hours of learning about it. Employers reporting a fatality, inpatient hospital-ization, amputation or loss of an eye to OSHA must report the following information:

•Establishmentname•Locationofthework-relatedincident•Timeofthework-relatedincident•Typeofreportableevent(i.e.,fatality,inpatient

hospitalization, amputation or loss of an eye)•Numberofemployeeswhosufferedtheevent•Namesoftheemployeeswhosufferedtheevent•Contactpersonandhisorherphonenumber•Briefdescriptionofthework-relatedincident•Employersdonothavetoreportaneventifit:• Resulted from a motor vehicle accident on a

public street or highway. Employers must report the event if it happened in a construction work zone.

•Occurredonacommercialorpublictransporta-tion system (airplane, subway, bus, ferry, street-car, light rail, train).

• Occurred more than 30 days after the work- related incident in the case of a fatality or more than 24 hours after the work-related incident in the case of an inpatient hospitalization, ampu-tation, or loss of an eye.

Employers do not have to report an inpatient hospitalization if it was for diagnostic testing or observation only. An inpatient hospitalization is defined as a formal admission to the inpatient service of a hospital or clinic for care or treatment. Employers do have to report an inpatient hospi-talization due to a heart attack, if the heart attack resulted from a work-related incident.

~ Source: U.S. Department of Labor

Updates to OSHA’s Recordkeeping Rule:

Reporting Fatalities Severe Injuries


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Controlling Insurance CostsWHAT CAN BUSINESSES DO? All things being equal, two businesses with virtually the same operation may pay the same premium for property, liability, and workers compensation insurance—until one makes an insurance claim. That claim could result in higher insurance premiums.

sEVEN WAYs TO KEEP iNsURANcE cOsTs UNDER cONTROl These guidelines can help you keep your insurance costs under control:

1. Find a trusted insurance advisor. Select an insurance advisor who really understands your industry and your business and takes the time to properly design an insurance program.

2. Align yourself with an insurance company that specializes in your industry. Insurance carriers may enter into a market for short-term financial gain. What happens if their venture falters and they pull out? Can you easily find another carrier? At what cost? Insurance companies with a history of commitment to your industry and your association typically are in it for the long haul. Loyalty to your industry does matter!

3. Get serious about safety! Implement appropriate risk management policies and practices. Introduce an effective safety program to help prevent losses. Look for an insurance provider that makes safety and loss prevention resources available and is able to help with implementation.

4. Review claims. Review your claims at least annually. Confirm accuracy and discuss any open claims or reserves. Implement practices that help prevent those claims from reoccurring.

5. Be prepared. Review coverages and services with your insurance representative at least two to three

months before renewal to see if they still meet your needs.

6. Don’t buy on price alone! While price is a component, other features—coverages, safety assistance, claims services—can help contribute to significant savings over time. Lower “front-end” premiums may result in more “back-end” costs with claims that are either not covered or have limitations.

7. consider self-insuring or partially self-insuring some risks. There are various options available to save on insurance costs and improve your loss record. Some common examples include: increasing deductibles on your policies, selecting a well-designed self-insurance program, or implementing a Workers Compensation Retrospective plan.

~ Submitted by Federated Insurance Co.

HIpAA certificates No longer Required in 2015 Effective for plan years beginning on or after Jan. 1, 2014, the Affordable Care Act (ACA) prohibits group health plans and issuers from imposing pre-existing condition exclusions (PCEs) on any enrollees. Prior to 2014 plan years, the ACA prohibited PCEs for enrollees under 19 years of age. The ACA’s restrictions on PCEs apply to both grandfathered and non-grandfathered plans. On Feb. 24, 2014, the Departments of Health and Human Services, Labor and the Treasury (Departments) issued a final rule that addresses how the ACA’s prohibi-tion on PCEs affects the requirement to provide HIPAA Certificates of Creditable Coverage (HIPAA Certificates). The final rule eliminates the requirement to provide HIPAA Certificates, beginning Dec. 31, 2014.

~submitted by Haylor, Frey & Coon


TAX TIPS The Tax Increase Prevention Act of 2014 (TIPA), signed by the President on December 19, 2014, retroactively extends through 2014 certain business tax benefits that had expired at the end of 2013. This article describes two of the key provisions that affect equipment dealers and their customers.

section 179 Deduction Section 179 of the Internal Revenue Code per-mits taxpayers to take an immediate deduction for the cost of qualified assets placed in service during the year instead of requiring gradual depreciation deductions. The Section 179 deduction applies to tan-gible, depreciable personal property and off-the-shelf computer software acquired by purchase for use in an active business and, to a lesser extent, leasehold improvement and retail improvement property. For tax years 2009 through 2013, the deduction was avail-ableforthefirst$500,000ofqualifiedassetsplacedin service during the year ($250,000 for leasehold improvements and retail improvement property), and the deduction began to phase out if the taxpayer’s cost of qualified assets placed in service during the year exceeded $2,000,000. TIPA extends these Sec-tion 179 provisions to 2014 as well. If Congress does not take similar action during 2015, the Section 179 deductionfor2015willbelimitedto$25,000andthededuction’sphase-outbeginswith$200,000ofassetsplaced in service during the year. In addition, lease-hold improvements and retail improvement property are excluded under the current law for 2015.

Bonus Depreciation Fortaxyears2008through2013,taxpayerswereallowed to claim an additional first-year deprecia-tion deduction equal to 50% of the cost of certain qualified property placed in service during the year. Bonus depreciation is available for new property with a depreciation period of 20 years or less, off-the-shelf computer software, and certain leasehold improve-ments. Prior to TIPA, bonus depreciation was elimi-nated at the end of 2013. TIPA extends the availabil-ity of bonus depreciation to qualified property placed in service in 2014. Without additional Congressional action during 2015, bonus depreciation will not be available in 2015 or later years.

Business Tax Extenders Enacted for 2014

Equipment Dealer Magazine to Undergo TransformationNew Magazine Will Debut This Spring

Rick Lawhun, PresidentCEO of NAEDA

The “new and improved” magazine is a significant part of the association’s ongoing communications ini-tiative, which addresses our entire messaging platform – magazine, e-newsletter, web site, email and other key components. One of the first steps in reworking NAEDA’s communications is the creation of an editorial board of dealer members and industry partners, in-cluding manufacturers, vendors and academi-cians. This diversity of background and experience will help in identifying timely content, selecting key themes and developing the editorial calendar for the publication. Our initial effort is focused on in-creasing the appeal to members by enhancing current content:

1. National/Affiliate highlights •ManufacturerRelations •LegislativeIssues •RegulatoryRequirements •Education

2. Dealership spotlight stories

3. Observations and Analysis from industry leaders •DealershipManagement •BusinessManagement •Legal •Finance

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.)


VETERANs iNFORmATiON

If the possibility of rising interest rates or higher home prices has you contemplating a new home loan or refinancing an old loan, don't forget about our old friend, the VA home loan. VA's website, www.va.gov. is a comprehensive resource for information on these loans, but here's a quick refresher on some key aspects of the current program:

VA DOEsN'T lOAN OUT ANY mONEY. Contrary to what many believe, VA isn't in the business of making loans. They just guarantee them. You'll go through a normal lender, and you'll still have to prove your creditworthiness and income during the application process.

EliGiBiliTY is WiDE-OPEN. You could be eligible with as few as 90 days of active service during wartime or six months during peacetime. Reservists, Guardsmen and spouses of those who died in service or from a service-connected disability may also be eligible. Not that long ago, you had to work through a relatively burdensome process to get a certificate of eligibility from VA. Today, that process is easy and usually automated through the VA website or most lenders that handle VA loans.

PRimARY REsiDENcE. VA loans can only be used for your primary residence, not for rentals or vacation homes. However, although it's relatively complex, it is possible to have two VA loans at the same time. For example, if you bought with a VA loan and moved because of a job change, you might be able to use your remaining entitlement to get another VA loan and buy your new primary residence.

NO DOWN PAYmENT AND NO Pmi. I think this was the point of greatest envy for my friend. With a conventional loan, you'll typically need to bring a 20 percent down payment to the table or be required to purchase private mortgage insurance. Not so with the VA loan. Unless you're receiving VA disability compensation, VA loans require you to pay a tax-deductible funding fee (typically 2.15 percent of the loan), but not a down payment or PMI.

REFiNANcE OPTiONs. You can also use a VA loan to refinance a conventional loan or another VA loan. If you've already got a VA loan, the Interest Rate Reduction Refinance Loan is a pretty great option. I know; I've used it twice. It has just a 0.5 percent funding fee, and there's no appraisal or financial

underwriting required by VA (lender's requirements may vary).

BUYER TAKEOVER. VA loans allow another VA-eligible loan buyer to step in and assume your loan. If interest rates eventually spike, this could be a nice feature. While the new buyer would have to come up with the cash difference between the loan value and the house's market value, the terms of the loan could be a lot more favorable and the cost of the transaction substantially less.

iT's NOT ONE AND DONE. Contrary to myth, you can use a VA loan more than once. If you've paid it off and no longer own the home, you are eligible again for a new VA loan. The VA loan powered a generation of post-World War II homeowners. Almost 70 years later, it's still a valuable, attractive benefit that's worth investigating - even if it's been decades since you wore the uniform.

~J.J. Montanaro is a certified financial plannerwith USAA

ASK A SERVICE OFFICER

VA Opens Burn pit registry Q: Am I eligible to fill out VA's burn pit questionnaire?

A: VA recently launched the Airborne Hazards and Open Burn Pit Registry for service members and veterans who may have been exposed to airborne hazards such as burn pits, oil well fires, dust storms or pollution. The registry will help VA and doctors better assess veterans' health, and determine to what extent air pollution from burn pits has caused diseases and other conditions in service members. Participation in the registry is voluntary and open to any veteran or service member who deployed as part of: •OperationDesertShield/DesertStorm •OperationEnduringFreedom •OperationIraqiFreedom •OperationNewDawn •AnywhereintheSouthwestAsiatheaterofoperationsafterAug. 2, 1990, including Djibouti, Africa, after Sept. 11, 2001. Veterans and service members can use the registry questionnaire to report exposures to airborne hazards as well as other health concerns. Completethequestionnaireonline:mobilehealth.va.gov/app/burn-pit-registry VA will maintain the security of all information provided in the registry, and will determine eligibility for the registry based on deployment information from DoD.

VA GUARANTEED lOANsAN ENVIABLE DEAL


When to call a CVA

Here are some of the events that trigger the need for a business valuation:

• Buy/Sell Agreements

• Succession Planning

• Mergers and Acquisitions

• Liquidation or Reorganization

• Estate and Gift Tax Planning

• Divorce Proceedings

To be sure you know the actual value of

your most important financial asset, contact

Southwestern Association, your equipment

and hardware specialist.

buying • selling • merging

reorganizing

CERTIFIED BUSINESS VALUATIONSPhone 816.561.5323 Fax 816.561.1249

Toll Free 800-762-5616

For Residential Equipment, Commercial Equipmentand their Engines

OUTDOORPOWER

equipmentFLAT RATE

GUIDE

INCLUDES FIGURES FOR:• Lawn Tractors, Garden Tractors, Compact Tractors, Riding Mowers, Commercial Walk-Behinds & Riders• 7 Engine Manufacturers• 34 Equipment Manufacturers• 8 Compact Tractor Manufacturers

LISTS SUGGESTED REPAIR TIMES FOR:• Internal engine components • Drive train components • Mower Deck components• Steering components• PTO components

NORTHEAST EQUIPMENT DEALERS ASSOCIATION128 Metropolitan Park Dr., Liverpool, NY 13088

Mailing address:P.O. Box 3470, Syracuse, NY 13220

Phone: 800-932-0607 • Fax: 315-451-3548

Please send me:_____ copy(ies) in book format at the member price of $336_____ copy(ies) in CD-ROM format at the member price of $336_____ copy(ies) in both book & CD-Rom format at member price of $376

First Name_____________________________________________

Address _______________________________________________

City / State / Zip ________________________________________

Phone_______________________ Fax ______________________

Signed________________________________________________

Credit Card #__________________________Type _____________

Expiration Date_________________________________________


VETERANs – EDUcATiON

Q: I am a veteran using my GI Bill benefits at the University . This semester has been difficult, so I had to drop classes. I recently received a debt letter from VA for over $4,000. I did not realizethat if I dropped my classes I would owe VA money. What are the steps for me to get this debt paid or forgiven?

A: Since you received an initial debt notification letter from VA, which included your rights and obligations regarding the debt, you have 30 days to contact the Debt Management Center (DMC) to repay the entire debt, establish a repayment plan or request a waiver of debt.

I recommend you request the waiver within that 30 days. VA has been granting most waivers. If you haven't contacted DMC within 30 days, VA will begin to offset the debt amounts from future GI Bill payments. If you do not contact DMC within 30 days of receiving the initial letter, additional notification letters will be sent explaining collection efforts and what will be expected.

~ Valerie Heffner is a Marine Corps veteran and member of

American Legion Post 27 in Arizona.

WHAT TO KNOW ABOUT VA DEBT REPAYmENT

ATTENTION ALL DEALERScall Dave close at 800-932-0607 and

order the sensGard hearing Protection devices for retail to your customers.

ATTENTION ALL DEALERScall Dave close at 800-932-0607 and

order the sensGard hearing Protection devices for retail to your customers.

Tom Duerst, a 55-year-old Wisconsin dairy farmer with partial hear-ing loss, now wears ear protection when working on the farm.

far from the clatter of cities, the nation's farmers are assaulted every day by the earsplitting squeals of hundreds of hogs, the roar of tractors and the incessant whine of grain dryers during the fall harvest. An estimated one-third of the nation's three million farmers have some level of hearing loss caused by their inner ears' daily bombardment from sounds that can rival a rock concert's sonic impact. Even farmers still in their 20s can end up with the muffled hearing of someone in middle age if they fail to protect their hearing. Tractors, forage harvesters, silage blowers, chain saws, skid-steer loaders, grain dryers and squealing pigs can make farm life quite noisy. Adding to the risk is the fact that many farmers have been exposed to these sounds since childhood. Sound-reducing cabs can help, as can keeping machine parts lubricated and in good shape in order to reduce friction and decibel levels. The Sensgard hearing devices are a must have” add-on for just about every sale made in the dealers’ store, and for safety sake, it is a necessary part in selling loud equipment. This is a natural “easy

to sell add-on product” and can provide dealers with an excellent gross margin of 45% to 52%! The only thing you need to do is place this product in a prominent place in your dealership or consider adding it on to each wholegoods sale. order your Sensgard line of Hearing protectors today by contacting the NEDA at (800)-932-0607 or check out the details by going to the following links. product Information Video: Sensgard Dealer Video product order form: http://ne-equip.com/email_uploads/NEDA_Sensgard_offerorderform.


hEAlTh / mEDicAl

Under the Family and Medical Leave Act (FMLA), covered employees are entitled to 12 weeks of unpaid, job-protected leave for specified family and medical reasons. After FMLA is exhausted, or if the employee is not eligible for FMLA, you may face uncertainty about whether you must continue to offer leave or if you may terminate the employee. There are several considerations you should make when FMLA is exhausted but an employee is not ready to return to work. You should consider if any of the following apply to the situation: •Yourownleavepolicies •TheAmericanswithDisabilitiesAct(ADA) •ThePregnancyDiscriminationAct(PDA) •Stateleaveandworkers’compensationlaws Especially if the employee condition is covered by the ADA or PDA, you should enter an interactive process with the employee to determine if reasonable, temporary accommodations can be made. When FMLA leave is exhausted, don’t assume that you can automatically terminate the employee.

~ Provided by Darwin AllenHaylor, Freyer & Coon, Inc.

800-289-1503

You know the importance of having health care coverage and a 401(k), but are you taking advantage of all the benefits Northeast Equipment Dealers Association offers? Voluntary benefits are additional benefit options offered through the company. Unlike traditional benefits like health coverage, employees are responsible for paying most or all of the cost of these voluntary options.

WhAT’s ThE ADVANTAGE? You may wonder - if you’re responsible to pay, then why elect any voluntary benefits? There are several advantages.

lOWER PRicE If the benefit in question is something you are planning to purchase for yourself regardless, then it is probably more cost-effective to purchase through Northeast Equipment Dealers Association. The group rate we can secure is generally lower than what you’d pay buying individually from an insurance company.

cONVENiENcE When you elect a voluntary benefit option through our open enrollment, your premium is paid through convenient payroll deductions just like your other benefits (and you receive the same benefit of pre-tax payroll deductions). Plus, you can skip the hassle of shopping around to find and purchase a plan – simply elect what you need during enrollment time.

PROTEcT YOURsElF AND YOUR FAmilY Many of these types of insurance may seem unnecessary, but they are designed to protect you in the event of an unexpected illness, accident, death or other event. For instance, you may be skeptical about needing disability insurance, but consider if you could afford to be disabled and without a paycheck for weeks or months, plus having medical bills to pay? Paying a small premium now can help protect you financially.

cOmmON TYPEs There are a variety of voluntary benefit options; some of the common ones include:

• Life Insurance – employees can typically elect up to a certainamount without needing to go through medical underwriting

• VisionInsurance–typicallyincludesfreeannualeyeexamanddiscounts on glasses and contacts

• Dental Insurance – generally covers preventive services andoffers a discount on other treatments

• Long-TermCareInsurance–coversthecarepeopleneedwhenthey have lost the ability to perform certain daily activities (care that may not be covered under Medicare or Medicaid)

• Short-TermDisability–coversapercentageof lostpaydue totime away from work because of a disability, generally up to three or six months

• Long-TermDisability–coverscareneededoveralongerperiodof time, for injuries that could affect someone for years

Accidental Death & Dismemberment – coverage in case an employee dies in an accident or loses a limb, vision or hearing.

~ Provided by Darwin AllenHaylor, Freyer & Coon, Inc.

800-289-1503

Health Savings Accounts (HSAs) are a tax-favored way to provide health care benefits for business owners and self-employed individuals. Contributions to your HSA are tax deductible, and the accumulated funds may be invested in a variety of investment choices, including mutual funds or CD’s. The earnings of the investments inside the HSA are not subject to taxation as long as the funds are used to pay health care expenses. The current deductible individual amount is $3,100 and $6,250for family coverage. A high deductible health plan (at least a $1,200 individual deductible and $2,400family deductible) must be paired with the HSA. Unlike a Flexible Spending Account (FSA), the unused funds can be carried forward to future years, and unlike the corporate-owned Health Reimbursement Accounts (HRA), HSAs are owned by you. There is a 20% penalty for any withdrawals taken before age65fornon-medicalexpensesaswellasordinaryincome taxation. The 20% penalty is waived after age65, so these accounts can become another sourceof retirement income if you are already maximizing your 401(k)/IRA contributions.

~ Submitted by PSGPhone: 301-543-6000

www.psgplanning.com

When FmlA is Exhausted UnderstandingVoluntary Benefits

health savings Accounts (hsAs)


Northeast Equipment Dealers Association Inc. (HF&C) chooses Haylor, Freyer & Coon to also partner for Health Insurance coverage to NEDA Dealer Members in the Northeast.

HF&C is leading consultant in the design and implementation of Employee Benefit Programs for companies in the Northeast and is licensed to do business in all fifty states. For over a decade, HF&C has been a proven NEDA business partner. They currently provide our membership with Workers Compensation Insurance; Physical Damage Insurance for Rental & Leased Equipment and Risk Management Consulting Services. They continue to support NEDA’s core value of helping our members to be compliant with government regulations and information. We are excited by the opportunity to take our relationship with HF&C to the next level and provide further value to our members with Employee Benefit Solutions including Group Health Insurance, Dental & Vision Plans, Group Life Insurance, Accident & Critical Illness policies and more. This new partnership will allow HF&C to support NEDA Equipment Dealer Members and help them to stay on top of required health regulations. Additionally, they will be able to demonstrate some unique ways dealers can more effectively design and manage their total employee benefit package and its associated cost. The HF&C Benefit Group is skilled at understanding, recommending and implementing health plan options, including Affordable Care Act (ACA)-compliant health plans. HF&C also partners with all the major insurance companies and group service vendors throughout the U.S. to provide medical and specialty employee benefit plans and services for Equipment Dealers. Together we will continue to focus on keeping our membership compliant not just on other government mandates but on the Affordable Care Act (ACA) which affects all companies today. Please call us today to set up a consulting and fact finding meeting at your convenience. Call Mike Herrera, Benefit Consultant directly at 800-289-1501ext.2216orJimMcGarveyat315-703-3239orRalphGaissorDaveCloseat800-932-0607.

The USDA crop report that came out recently suggests that the temperature is not the only thing that is tanking short term. A quick check of the current cash grain bid sheet at the local grain elevator near our farm in Southeast Nebraska confirmed this.On a positive note, this market seems to have generated a lot of continued interest in grain handling and storage. More than a few dealers I have visited with in the last month have taken on a grain bin line, or are placing a priority on increasing their grain handling equipment/storage sales. Diversified Financial is pleased to offer financing for grain bins, grain trailers and other equipment used for grain handling purposes. Whether you are a dealer or producer, give us a call today at 800.648.8026. Ask to speak with a RelationshipManager. Lower prices mean that cash will be king. Hold onto your cash, and finance your next equipment purchase with Diversified.

~Submitted by Steve NorrisRegional Sales Manager

Diversified Financial

Recently, a Russian hacker posted online live links to more than 10,000 private cameras. They were accessible because the owners of the internet-connected devices (e.g., baby monitors, home security systems, etc.) used the default password during installation instead of creating a new password. NBC's The Today Show explored this unnerving event. Watch the clip here: http://www.today.com/money/russian-webcam-hackers-spy-bedrooms-offices-1D80308040.

WhAT shOUlD i DO? change the password if you have a device with a camera and used the default password when connecting to the internet. Do not use the default password assigned by the manufacturer if you will soon be setting up a new internet-connected device.

NEDA and haylor, Freyer & coon, health insurance Partners

Got Grain storage?

AlERT: Internet-connected Devices can be Hacked


One of the greatest benefits of a family-owned business is the ability to create a legacy that can pass from one generation to the next. A business-owning family can create many opportunities for their children and grandchildren that are not available with many other careers. However, a real challenge is created in structuring control as the dealer passes the torch to the next generation, especially when multiple children and/or other family members try to lead the business into the next generation. The matter is even further complicated by the manufacturers. All dealers are familiar with the manufacturer requirement of a single person being in charge. The Dealer Principal has ultimate control and responsibility for the success of the dealership. Additionally, the manufacturer wants a General Manager on site with complete control of day-to-day operations. So how do you decide among children, cousins, and “outlaws” in the business who should be in charge? Of course, if you own multiple dealerships you can solve this problem by assigning each individual to a different location. In many cases, however, this creates more problems than it solves. When sales results impact the child’s pay-plan, they become reluctant to share resources and allocation of expenses among dealerships. The result is not a “one-for-all and always put the business first” attitude. Instead, it creates turf wars among the heirs. So how do you resolve the problem? How can you foster an environment where everyone is on the same team pulling for a common goal? The solution is creating a Family Board. With a Family Board, no one family member has to have majority control. But wait a minute; no manufacturer will go along with this idea, right? Wrong. Even Toyota, a manufacturer known for its stringent requirements, is on board with the concept as long as you follow certain guidelines. The Family Board offers many advantages to the family business. First, it provides a forum where all family members, both active and non-active in the business, have a “voice” in the company’s future. When all family members are allowed to contribute to the company vision, it fosters harmony within the family. Many spouses complain about the discord that the business brings to the family and recognize the need for a forum in which to address issues of concern. The Board provides the dealer with a setting where family issues and business issues can be discussed in a professional business environment instead of over “Thanksgiving Dinner.” If structured and managed properly, a Board will

significantly improve communications between all family members. It provides a specific setting where everyone is assembled on a regular basis with a formal agenda to discuss key business and family issues. Another major advantage is that a Board provides the proper business setting for the dealer to train the successor(s). The dealer should use the Board to teach and share their knowledge and experience regarding issues such as:

• Acquiringnewdealershipsandfranchises• Handling manufacturers’ requests for facility

renovations• Negotiatingwithlendersforfloorplanandrenovation

financing• Utilizingreinsurancecompanies• Acquiringnewrealestate• Increasingprofitsinsalesandfixedoperations

Finally, the Board is designed to address both management and compensation issues for all family members. Dealers need to acknowledge that in some family situations, the best person to run the company may not be a family member. Every dealer knows it takes a special set of skills to successfully run a dealership. In a matter of months, the wrong individual can destroy profits, blue sky, and morale in the business. An individual needs to have both skill and desire, what I call, “fire in the belly,” to be successful. Sometimes children have neither the skill nor the desire. Although it is a tough decision, the best decision for the business and the family may be outside leadership. What’s wrong with allowing family members to manage the Board and a qualified outsider to successfully run the business? It may be better for the business, the family, and the profits! Children can still hold key positions of authority on the Board and will own the company stock. The Family Board allows the benefits of ownership to remain in the family. In summary, creating a Family Board improves the survival rate for a business passing to the next generation. It allows multiple heirs to work in a professional business environment, foster better communications, share ideas, and resolve family and business issues. The manufacturers will accept the Board because it helps minimize family conflict and promotes strong leadership. Family members can still serve in significant leadership roles with responsibility and accountability shared by all. Consequently, a Family Board helps provide good solutions for the family, the business, and the manufacturers.

The Family Board FAmilY-OWNED BUsiNEss

FAmilY-OWNED BUsiNEss

BY RoY DIxonPSG Planning

T:(301)543-6000•www.psgplanning.com

in a


cREDIT cARD pRogRAMEMS (ElEcTRoNIc MERcHANT SYSTEMS)Steven Miller866-367-1818, Direct 585-285-9954Fax [email protected]

DIVERSIfIED fINANcIAlYour financing choiceTerry Boer at 800-648-8026 [email protected]

fEDERATED INSURANcE coMpANYProperty & Casualty Insurance (8 states except VT), Health Insurance (PA only)Workers' Comp (All states except NY)John Ballard at 800-241-4945, Cell 859-312-9896Fax [email protected]•www.federatedinsurance.com

HAYloR, fREYER & cooN, INc.Health Insurance Program Mike Herrera Benefit Consultant315-703-3216•[email protected] Jim Mcgarvey Supervisor Benefit Consulting 315 703 3239•[email protected]

Physical Damage Insurance,Rental/LeasingEquipmentDarwin Allen at 800-289-1503 (HF&C, Inc.)[email protected]•www.haylor.com

Workers' Comp (Return Dividend Program for NY Dealers only)Property & Casualty Insurance for VT Darwin Allen at [email protected]•www.haylor.com

lEgAl ASSISTANcE – fREE lIMITED Dave Shay at 816-421-4460Fax:816-474-3447•[email protected]

NEDA oN-lINE cAMpUSDave close at 800-932-0607 x [email protected]

pARTNERSHIp freight programYellow Freight, UPS Freight, FedEx GroundKeith Korhely at 800-599-2902 x [email protected]

poWER pRo AccREDITED DEAlERJoe Dykes at [email protected]

REgUlAToRY coNSUlTANTS, INc.cERTIfIED Spcc plANDave close at 800-932-0607 x 235Robb Roesch at 800-888-9596 x 222www.rci-safety.com

SUccESSIoN plANNINg - Buy / SellPlanning Solutions GroupDon HannahsPhone: 301-543-6000888-740-3501 – Fax: 301-543-6030Dhannahs@PSG planning.com

TElEpHoNE DIScoUNT pRogRAMWorldNet Solutions, Inc.866-532-7653 Mention NAEDA

Ralph gaiss,ExecutiveVP/CEO800-932-0607 x [email protected]

Dave close, Operations Manager800-932-0607 x [email protected]

Kelli Neider, Administrative Assistant800-932-0607 x [email protected] (Business Forms)

Tim Wentz, Field Services DirectorCell: 717-576-6794, Phone: 717-258-1450Fax: [email protected]

Scott grigor, NY Farm Show Manager800-932-0607, Ext. [email protected]

Art Smith,Consultant/Editor,NE Dealer717-258-8476, Fax: [email protected]

cHARTER SofTWARE BUSINESS SYSTEMSMelissa Amen303-932-6875 - Ext. 219www.chartersoftware.com

cERTIfIED BUSINESS VAlUATIoNSSWA Financial Consulting, P.C.curtis A. Kleoppel / Bob charbonneau816-561-5323 x 116 & 117Fax: 816-561-1249 or 800-762-5616

For Service / SPoNSoreD ProGrAMS,cAll Your ASSociAtioN

800-932-0607 • 315-457-0314 • Fax: 315-451-3548 • www.ne-equip.com

nEDA 2015 holiday ScheduleDay Date holiday

Monday February16 PresidentsDay

Friday April 3 Good Friday

Monday May 25 Memorial Day

Friday July 3 Independence Day

Monday September 7 Labor Day

Monday October 12 Columbus Day

Thursday November26 Thanksgiving

Friday November 27 Thanksgiving

Thursday December 24 Christmas Eve

Friday December 25 Christmas Day

Thursday December 31 New Year’s Eve

oSHA 300 log Reporting and Requirements Rule is Active! On January 1, 2015, a new OSHA rule went into effect that requires all dealers to maintain an OSHA 300 Log and changes the re-porting requirements for serious injuries at all workplaces. In the past, new and used car dealerships had been exempt from complet-ing and posting the OSHA 300 Log based on their Standard Industry Code (SIC) code. However, under the new regu-latory change, dealerships have lost this exemption and must keep this accident and injury form up to date. For more information, see OSHA Injury Reporting Regula-tions on their website.


survey shows corn Acres slipping by 2% Farm Futures most recent survey of farmers indicates that growers are ready to put in even more soybeans, according to Bryce Knorr, Farm Futures senior market analyst. That’s88.3millionacresinall,almost5%morethanUSDAcurrentlyforecasts for 2014 and nearly 2% more than the August survey found. Some of the additional ground would come from corn, where plantings couldfallto88.5million, down 2.2% from Farm Futures August estimate and 2.6% less thanUSDA’s curent estimate for 2014. USDA reports its first estimate of winter wheat seedings Jan. 12, with significant changes likely forthatcrop.Themagazineputstotalwinterwheatseedingsat42.6million,down2.3%fromAugustbutup0.6%from2014.

~ A.E.I.

Nearly half of Rural Lifestyle Dealers Forecast Revenue Gains in 2015 After a solid pick up in revenues in 2014, 47% of North American dealers see sales revenues from their rural lifestyle and large property owner segments increasing again in the year ahead. Another 37% of dealers believe that their revenues from equipment sales will be at least as good in 2015 as they experienced in the past year. Alltold,84%oftheequipmentretailerspolledbyRural Lifestyle Dealer magazine anticipate business levels to be as good or better thisyearas theywere lastyear.Only16%areprojectingadrop-offin sales for 2015, according to the magazine’s 2015 Dealer Business Trends & Outlook survey.

Dealer concerns. At the top of the dealers’ list of biggest concerns is finding good employees this year, as 56% of dealersranked it as the issue they’re “most concerned” about. This was also near the top of dealers’ list last year, when it came inat thenumber two spotwith58%ofdealersranking it a major concern. This year, low sales margins, healthcare programs and costs, equipment shortages from mainline suppliers and customer access to credit were dealers’ biggest concerns for 2015. The full outlook report appears in the Winter 2015 issue of Rural Lifestyle Dealer.

~ A.E.I.

EqUiPmENT iNDUsTRY NEWs

Deutz to supply Engines for Zetor Diesel engine maker Deutz has secured another engine supply contract in the agricultural sector by reaching agreement to deliver power units to Zetor. The Czech tractor manufacturer, which supplies the North American market through a wholly-owned distribution subsidiary in Jacksonville, Fla., will use Deutz 2.9-liter 4-cylinder and 6.1-liter 6-cylinder engines in new models scheduled to launch this year and in 2016. The high-tech engines will use electronic common rail fuel injection connected to a CAN-BUS network on the tractor encompassing the transmission, hydraulics and instruments display. Different emissions technology solutions are available as appropriate to the size of tractor and OEM preferences.

~ A.E.I.

Equipment sales Decline continues North American large ag equipment sales declines continued in December, a seasonally important month, according to the latest data released by the Assn. of Equipment Manufacturers, with 4WD tractor sales down 46.5% year-over-year, combine sales down 39.5% and row-crop tractors down 23.8%. However, mid-range tractors continue to show relative strength, increasing 8.9% vs. the same period last year, according to Mircea (Mig) Dobre, analyst with RW Baird.

~ A.E.I.

4 Ag Equipment Intelligence/January/2015

Survey Shows Corn Acres Slipping by 2%Farm Futures most recent survey of farm-ers indicates that growers are ready to put in even more soybeans, according to Bryce Knorr, Farm Futures senior market analyst.

That’s 88.3 million acres in all, almost 5% more than USDA currently forecasts for 2014 and nearly 2% more than the August survey found. Some of the additional ground would come from corn, where plantings could fall to 88.5 million, down 2.2% from Farm Futures August estimate and 2.6% less than USDA’s cur-rent estimate for 2014. USDA reports its first estimate of winter wheat seedings Jan. 12, with significant changes likely for that crop. The magazine puts total winter wheat seedings at 42.6 million, down 2.3% from August but up 0.6% from 2014.

2015 Farm Futures Crop Planting Intentions Projected Acres Survey Results by Crop

Crop Acreage

Change vs. August Survey

Change vs. USDA 2014

Corn 88.51 million -2.2% -2.6%

Soybeans 88.3 million 1.9% 4.9%

Soft Red Winter Wheat 7.8 million -8.9% -7.8%

Hard Red Winter Wheat 31.1 million -0.5% 1.9%

White Winter Wheat 3.7 million -4.5% 9.2%

All Winter Wheat 42.6 million -2.3% 0.6%

Spring Wheat 13.3 million 14.9% 2.3%

Durum 1.7 million 4.4% 19.5%

All Wheat 57.6 million 1.4% 1.4%

Maschio Gaspardo Expands China PresenceAt a newly opened factory in China, Italy’s Maschio Gaspardo plans to double production of mulchers, rota-ry tillers and precision planters as the group pursues a multi-million dol-lar investment plan (Ag Equipment Intelligence, September 2014).

The new 33,000 square-meter pro-duction facility in Qingdao will have 5 assembly lines and employ 130 peo-ple initially, with plans to increase that to 200 by the end of this year.

“Maschio Gaspardo Group has been

present in China since 2005,” notes Egidio Maschio, group president.

“The new plant in Qingdao, larger and more innovative than the old one, was realized to double the produc-tion output to 33,000 machines a year, principally for the Asian market,” he said.

At about €23 million ($28 million), the Chinese market accounted for 8% of Maschio Gaspardo’s 2013 global turnover of €282 million ($343 mil-lion) at current exchange rates.

AEI Copyright Notice

Ag Equipment Intelligence is a copyrighted publication of Lessiter Publications. Copying an entire issue to share with others, by any means, is illegal. Duplicating of individual items for internal use is permitted only with permission of the pub-lisher. Licensing agreements that allow distribution of Ag Equipment Intelligence to a specified number of readers are available by contact-ing Lessiter Publications at 262-782-4480, ext. 408.

Deere & Co. caused a bit of a stir when it used the term “trough” to describe its forecasted sales volumes for 2015. During its analysts’ breakfast last week, Deere management said that it did itself a disservice by not explain-ing the context of the term “trough.” The company also reinforced its pre-viously announced goal to become a $50 billion company by 2018, at the meeting.

During the company’s fourth-quar-ter conference call with analysts in late November, Susan Karlix, Deere’s man-ager of investor communications said, “Ag and turf sales were down 9% in 2014 and are anticipated to be down another 20% in 2015. In relation to our structure line, that would bring sales down to what we consider trough lev-els with the division operating at less

than 80% of normal volume.”In a Jan. 6 note to investors, Michael

Shlisky, analyst for Global Hunter Securities, said, “For Deere, ‘trough’ lev-els indicate production at about 80% of capacity, but production levels can go below trough; for example, large ag is well below this level at the current time. Indeed, the company would have taken different actions than it has, including more temporary initiatives such as shutdown weeks in 2015, if the company thought demand would snap back in 2016.

“We got the sense that Deere is leav-ing the door open for a flat-to-down year for 2016, a cautious view that we agree with given the uncertainties that face the row-crop market.”

In the longer term, Deere reiterated that it still has its eyes set on becoming

a $50 billion company by 2018 that it announced in 2011 (“How Will Deere Double Sales by 2018?” March 2011, Ag Equipment Intelligence). With the recent slowdown in the farm equip-ment business, the company has its work cut out for it. It reported total revenues for fiscal year 2014 at $36.1 billion, down from $37.8 billion the year before. According to Shlisky, Deere “continues to pursue several initiatives, regardless of global ag fundamentals.”

Among these are increased share in Brazil, Europe and Russia/CIS. Deere’s FarmSight precision farming system is also expected to add to growth, says Shlisky. “While Deere has largely met its margin plans (12% by 2014; the company reached 13%), management noted that the challenge ahead will be staying at these elevated levels.”

Deere Clarifies ‘Trough’ Comment; Reiterates Long-Term Goals

Ag Equipment Intelligence/January/2015 7

North American large ag equipment sales declines continued in December, a seasonally important month, accord-ing to the latest data released by the Assn. of Equipment Manufacturers, with 4WD tractor sales down 46.5% year-over-year, combine sales down 39.5% and row-crop tractors down 23.8%. However, mid-range tractors continue to show relative strength, increasing 8.9% vs. the same period last year, according to Mircea (Mig) Dobre, analyst with RW Baird.

U.S. and Canadian large tractor and combine sales decreased 30% year-over-year in December, show-ing an improvement from the 36% decrease in November. Dobre notes that bonus depreciation incentives were reinstated retroactively for 2014 toward the end of the month. U.S. sales were down 29% vs. last year and Canadian sales decreased 33%.

Combine sales fell, posting a 39.5% year-over-year decrease in December after seeing a 49.8% decrease in November. U.S. combine inventories were 13% lower year-over-year in November vs. down 5% last month. December is typically an above-average month for combine sales, accounting for 9.9% of annual sales over the last 5 years.

Row-crop tractor sales posted a 23.8% year-over-year decline, improv-ing from the 28.5% drop observed in November. U.S. row-crop tractor inventories increased 2% year-over-year in November compared to a 7% increase in October. December is typically an important month for row-crop tractor sales, accounting for 11.3% of sales over the last 5 years.

4WD tractor sales declined 46.5% year-over-year in December vs. a 44.9% decrease in November. U.S. dealer inventories of 4WD tractors decreased 31% compared to the same period the previous year.

Mid-range tractor sales rose in December, up 8.9% year-over-year after a 7.9% increase last month. Compact tractor sales increased 6.8% year-over-year, which is up from the 3.7% increase seen in November.

Equipment Sales Decline Continues

DECEMBER U.S. UNIT RETAIL SALES

Equipment December 2014

December 2013

Percent Change

YTD 20 14

YTD 2013

Percent Change

November 2014 Field Inventory

Farm Wheel Tractors-2WD

Under 40 HP 7,097 6,666 6.5 109,424 100,630 8.7 60,574

40-100 HP 6,825 6,160 10.8 61,123 57,005 7.2 33,310

100 HP Plus 3,355 4,325 -22.4 32,178 37,232 -13.6 12,498

Total-2WD 17,277 17,151 0.7 202,725 194,867 4.0 106,382

Total-4WD 425 834 -49.0 5,108 6,903 -26.0 1,273

Total Tractors 17,702 17,985 -1.6 207,833 201,770 3.0 107,655

SP Combines 760 1,275 -40.4 7,993 10,753 -25.7 1,494

DECEMBER CANADIAN UNIT RETAIL SALES

Equipment December 2014

December 2013

Percent Change

YTD 2014

YTD 2013

Percent Change

November 2014 Field Inventory

Farm Wheel Tractors-2WD

Under 40 HP 1,045 957 9.2 13,948 13,588 2.6 7,117

40-100 HP 695 743 -6.5 7,142 6,697 6.6 3,800

100 HP Plus 394 594 -33.7 5,721 5,696 0.4 2,342

Total-2WD 2,134 2,294 -7.0 26,811 25,981 3.2 13,259

Total-4WD 89 126 -29.4 1,227 1,567 -21.7 379

Total Tractors 2,223 2,420 -8.1 28,038 27,548 1.8 13,638

SP Combines 171 263 -35.0 2,251 2,940 -23.4 552

— Assn. of Equipment Manufacturers

U.S. UNIT RETAIL SALES OF2-4 WHEEL DRIVE TRACTORS & COMBINES

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

30,000

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

2014 5 year average


In November 2014, Alaska, Oregon and the Districtof Columbia joined Colorado and Wash- ington state in legalizing the use of recreational marijuana. Twenty-one other states have also legalized the use of medical marijuana. The changing legal and social acceptance of marijuana use can create uncertainty for companies when creating and enforcing workplace drug policies. Understanding the legal status of marijuana use, as well as being aware of pending court cases regarding marijuana in the workplace, can reduce the uncertainty. The use of marijuana, which is classified as a Schedule I substance under the Controlled Substances Act, is prohibited by federal law. However, many states have legalized medical and/or recreational marijuana. In general, workplace drug policies can still maintain a zero-tolerance stance for marijuana use and impairment in the workplace. However, you should consult legal counsel before terminating an employee based on marijuana use, especially if medical marijuana is legal in your state and/or the employee tested positive for the drug but did not show signs of impairment. Depending on the laws in your state, you may have to consider the following:

•Antidiscriminationlaws– Ifyourstateallowsmedical marijuana, you may also have to navigate medical marijuana antidiscrimination regulations.

•Whatconstitutesimpairment–Ifanemployeetests positive for delta-9-tetrahydrocannabinol (THC), the primary active chemical in marijuana, but is not actually impaired in the workplace, you may or may not have justification for termination, depending on your state’s laws.

Thus far, courts have generally upheld employers’ rights to zero-tolerance drug policies. However, pending cases and new laws could change that, so proceed with caution when determining your policy for dealing with positive drug tests and marijuana use, especially when dealing with medical marijuana use in states that have legalized medical marijuana.

~Submitted by Darwin Allen Haylor, Freyer & Coon, Inc.

800-289-1503

Some executives and managers blanch at the though of soliciting employee input on how the company's or department's leadership is doing. Yet management assessment programs, even informal ones, can be enormously beneficial. Ask your staff to respond candidly and anonymously, of course to questions such as these:

l. Are my directions clear, or do you depend on your co-workers to help you figure out what your tasks are?

2. Do I often change my mind and alter your assignments after you've already begun them?

3. Am I basically open to new ideas and innovative suggestions?

4. Do you think I basically approve or disapprove of your work?

5. Do I offer criticism you find constructive?6. Do I help you develop your skills and offer

opportunities for advancement?7. Am I available to you when you need

assistance?8. Do I create or operate in a crisis mode too

often?9. Do you feel comfortable bringing complaints

about the workplace to me? Clearly these are yes or no questions. But ask your staff to briefly explain answers to each one. Look especially for areas of wide agreement in the answers and take steps to correct deficiencies identified by a majority of your people.

You get to decide where your time goes. You can either spend it moving forward, or you can spend it putting out fires. You decide. And if you don't decide, others will decide for you.

~ Tony Morgan

marijuana in the Workplace

Ask Your Employees To Rate Yourmanagement skills



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