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Erb Equipment 70th Anniversary

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Page 1: Erb Equipment 70th Anniversary
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By Giles LambertsonCEG CORRESPONDENT

Celebrating 70 years of success as a family-owned company and apremiere dealer of John Deere construction and industrial equipment,Erb Equipment Company pays due respect to its past. On a rock-solidfoundation of excellent customer service and non-negotiable family val-ues, Erb Equipment has ambitious plans to grow the business for manygenerations to come.Unwavering focus on both employee and customer satisfaction has

been the high-performance fuel that has propelled Erb Equipmentthrough 70 years of accomplishments and milestones. “Fundamentally, our success is the result of serving customers with

employees who are happy,” said Carrie Roider, who became chief exec-utive in 2012. “We invest a lot of time and money, particularly in train-ing, to ensure that our employees are engaged in the company’s workand confident in their positions. If they are satisfied in the employmentsituation, they can produce a satisfying product for our customers. ““Subsequently, we will not be taking the company in a different direc-

tion. We are committed to improving our capability to push our dealer-ship to be the best,” added Gregg Erb, president and director of sales.

An Upstart During the War Years Carrie Roider and Gregg are siblings and the third generation of the

Erb family to head a business that their grandfather, Alvin Erb, foundedin 1943 when the country was caught up in World War II. It was a timeof scarcity for the commercial economy as manufacturing assets were

diverted to produce military equipmentand materials. Due to the void in produc-tion, farm tractors were an example ofequipment that was difficult to obtain dur-ing these years. Raised on a farm in Illinois, Alvin Erb

saw an opportunity to help Missouri andIllinois farmers obtain tractors to sustaintheir livelihoods. Erb had moved acrossthe Mississippi in the late 1930s tobecome a grocer. His entrepreneurialinstincts led him in a new direction whenhe realized the shortage of agriculturalequipment. Proactively seeking usedtractors to buy and recondition, he sold them outside of his grocery storeat 8821 Gravois Road in the St. Louis suburb of Affton. His freshly repainted tractors were of many colors and brands —

green Olivers, gray Fords and orange Allis-Chalmers to name a few.Just one year later, however, in 1944, a representative of the John DeereCompany in Moline, Ill., identified Erb as a promising prospect for aDeere dealership. Forging the relationship between Erb and John DeereInc. changed the color of the Gravois Road inventory to Deere green. Success as a dealer didn’t come immediately. “It took a while for the

prosperity boom after the war to put money into the hands of the con-sumers. It wasn’t until the 1950s that people could afford decent homes,”said Bob Erb, chairman and son of Alvin, who was born in the buildingthat housed the original grocery store opened by his father.

Erb Equipment Celebrates 70 Years of Customer Satisfaction

70 YEARS OF COMMITMENTEQUIPMENT COMPANY

Proactively seeking used tractors to buy and recondition,Alvin Erb sold them outside of his grocery store at 8821Gravois Road in the St. Louis suburb of Affton.

Alvin Erb founded thecompany in 1943 whenthe country was caughtup in World War II.

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Working side by side with Erb for 70 years.Congratulations on 70 years of operation, Erb Equipment. Here’s to many more years doing business in the construction industry.

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Congratulations on Erb Equipment’s 70th Anniversary and wishing them continued success.

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EQUIPMENT COMPANY

Post-war homebuilding inthe 1950s coincided withDeere’s introduction of trackedequipment for industrial andconstruction industries. ErbEquipment evolved in tandemwith the Deere product line asyellow heavy constructionequipment eventually replacedgreen farm tractors in the ErbEquipment yard.

Growth and Expansion

Currently, there are eight Erblocations in Missouri, Illinois,Kentucky, and Indiana. All ofthe locations are full-serviceDeere Construction equipmentcenters offering repair parts,field service, used equipment,rentals, and a full line of newDeere machinery. The Erbheadquarters has remained inthe St. Louis area, moving fromAffton to Sunset Hills in 1959,and to Fenton, its present location, in 1988.

With the passing of Alvin Erb in 1973, Bob Erb headed a group offamily members including his brother, Ken, sister, Marilyn (Asinger),and Alvin’s brother, Willard Erb until his death in 1978, as managers ofthe business. The company expanded outside of the St. Louis area,opening a branch store in Cape Girardeau, Mo., approximately 100 mi.south of its headquarters. To spearhead the new store, the Erb familychose Dave Heisel, an experienced equipment salesman, with whomthey were familiar.

Heisel came aboard as a stockholder in the company and managingpartner of the Cape Girardeau facility. It was the beginning of a work-ing relationship that spanned more than 30 years — 13 years managingthe Cape Girardeau location with the remainder of his career spent asthe general sales manager based at the St. Louis headquarters.

(L-R): Ken Erb, Marilyn Asinger, Bob Erb, Gregg Erb (on tractor), Gary Erb, Jim Asinger, Carrie Roider and KarenMatzenbacher.

(L-R): David L. Heisel, vice president; Robert S. Erb, president; andKenneth C. Erb, vice president of Erb Equipment Companies in 1987.

“I never felt like an outsider at Erb because Ifully shared the family’s desire to see the

company grow. It was a good fit for my skillsand talents, and spending the majority of my

career with Erb was a great experience.”

David L. HeiselRetired, Former Director

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70 YEARS OF COMMITMENT

The Paducah, Ky., facility.

Now retired, Heisel said, “I never felt likean outsider at Erb because I fully shared thefamily’s desire to see the company grow. Itwas a good fit for my skills and talents, andspending the majority of my career with Erb

was a great experience.”In the early 1980s, Erb Equipment

opened locations in Foristell, Mo., and Mt.Vernon, Ill. Stores in Paducah, Ky., andCuba, Missouri joined the roster in the

1990s. In 2009, the acquisition and rebrand-ing of KW Equipment Company, with loca-tions in Evansville, Ind., and Owensboro,Ky., paved the road for Erb’s expansion intothese markets.

The employees of the Paducah location.

Erb Equipment’s Wentzville, Mo., facility.

The employees of the Wentzville, Mo., location.

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70 YEARS OF COMMITMENTEQUIPMENT COMPANY

In the early 1980s, Erb Equipment opened locations in Foristell, Mo., and Mt. Vernon, Ill. Stores in Paducah, Ky., and Cuba, Mo., joined the ros-ter in the 1990s.

The company’s appetite for growth remainsa driving force. The Evansville store was relo-cated and expanded in 2012. Now, a larger,more prominent parcel of land has been pur-chased for relocation and the construction of anew facility twice the size of the outgrownstore in Owenboro, Kentucky.

“We do $13 million a year in sales at ourOwensboro location, but we have the potentialfor so much more,” Roider told the DaviessCounty, Kentucky fiscal court at a recent hear-ing to uphold a rezoning decision that enabledthe purchase of the property for light industrialuse.

Recession StrategyErb Equipment learned many lessons in sur-

vival during the late 1970s, the worst of eco-nomic times in the industry. Heisel remembersthose years, which were marked by 21 percentinterest rates and soaring inflation. “There wasgrowth to be had even in those tough times.

The employees of the Mt. Vernon location. The employees of the Cuba, Mo., location.

Erb’s Cuba, Mo., facility.

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Erb Equipment Company

n mp ny

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S L I D I N G A X L E

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TAG

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Thank you for your continued support and commitment to provide the best equipment and customer service.

CongratulationsTo Erb Equipment Company on 70 years!

E N G I N E E R

R E D W I T H H I G

G H P E R F O R M A

A N C E S T A N D A

A R D S

ou for yThank y

ued supporour continou for ythe best equipment and customer ser

t and commitment to proued supporthe best equipment and customer ser

videt and commitment to pro.vicethe best equipment and customer ser

vide

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1400 East Ave N • Hollandale, MS 38748 • 1-800-748-9476

www.wickermachinecompany.com

Wicker Machine Company

Congratulations on your impressive milestone!

We wish you the best for many years to come!

It is a pleasure to work with you

and we look forward to many more years

of a successful relationship.

EQUIPMENT COMPANY

Available at 8 Locations:St. Louis, MO

(636) 349-0200

Paducah, KY(270) 554-1131

Foristell, MO(636) 463-2500

Cuba, MO(573) 885-0500

Mt. Vernon, IL(618) 244-6800

Owensboro, KY(270) 684-2339

Cape Girardeau, MO(573) 334-0563

Evansville, IN(812) 473-0484

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EQUIPMENT COMPANY

In 2009, the acquisition and rebranding of KW Equipment Company,with locations in Evansville, Ind., and Owensboro, Ky., paved the roadfor Erb’s expansion into these markets.

The employees of the Owensboro location.

The employees of the Evansville, Ind., location.

You just worked harder to get market share. Erb has always been a cost-efficient, well-managed company focused on planned growth. For thesereasons, it will continue to grow.”

When the construction economy collapsed in 2008-11, ErbEquipment felt the pain of reduced new business along with the rest ofthe industry. One tactic of the company’s survival strategy was toemphasize used equipment sales. “We remained profitable,” said Gregg,“because we diversified our ‘bucket,’ especially concentrating on usedequipment sales. Whenever we lost a dollar in new equipment sales, wepicked one up in used sales. So, while these were not our most success-ful years, we did continue to grow during the recession.”

Erb carries up to 400 pieces of used machinery in inventory and alllocations offer it. Overseeing that segment of the business is MattHeisel, nephew of Dave Heisel, who has been with Erb for 14 years.“Generating $35 million in annual sales, we excel at selling used equip-ment and it is a part of our culture. Our product support allows us tofocus on it,” Heisel said.

The pre-owned machines are traded in or bought from other dealers,never from auctions, and are mostly Deere, though not exclusively. Theused equipment ranges from skid steers to large crawlers, with staplessuch as Deere 200D excavators always on hand. The equipment is thor-oughly inspected by certified mechanics, ensuring that each machine isfree of repairable defects, has clean filters and fresh oil, and a soundpower train.

“Everything we do as a dealer we are going to do right. The compa-ny has spent a long time building a very good reputation in new andused equipment and we will not compromise our integrity by knowing-ly selling a machine that has a problem,” Heisel added.

Erb also rents equipment, a practice that began in the 1960s. As rent-ing continues to be a popular option for contractors, equipment rentalsaccount for nearly 10 percent of total business volume, and is expectedto grow this year to nearly $14 million in volume, up from $10 millionin 2013. While this is a significant revenue stream, “Erb Equipment’sgoal in renting equipment is ultimately to sell it,” said Bob Erb. “Mostof the time when we have a machine in the yard, we rent it out in thehope that a customer will purchase it. We would rather sell it than con-tinuously rent it.”

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70 YEARS OF COMMITMENT

The Evansville, Ind., facility.

“The company has spent a long time building a verygood reputation in new and used equipment and we willnot compromise our integrity by knowingly selling amachine that has a problem.”

Matt HeiselSales Manager

The Owensboro, Ky., facility.

Another aspect of the business is thelawn and garden sales and service con-ducted at the Fenton headquarters.Approximately 15 percent of the Fentonstore’s floor and yard space is devoted tostocking and servicing a variety of out-door power equipment, accessories andparts used by professional landscapers andhomeowners. Brand names includeSTIHL, Exmark, Honda, Frontier, BillGoat, Kohler, Gravely and, of course,John Deere.

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Congratulates

Erb Equipment Company

and their employees

on 70 years of Service, Excellence and Success!

12813 Flushing Meadows Drive, Suite 280 St. Louis, MO 63131

314.726.5150

www.fiduciaryadv.com

Our Company is Committed to Providing

Better Retirements for Employees

Fee-only: 401(k) Plan Services Investment Services

Personal Financial Planning

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PARTNERINGfor the community.At U.S. Bank, our success is directly related to the success and vitality of the

communities we serve. And we believe strong communities help make for a

stronger economy. U.S. Bank is committed to the construction equipment

industry and companies that work to enrich the quality of life for everyone.

Because when our community succeeds, everyone wins!

U.S. Bank is proud to continue its partnership with Erb

Equipment Company and is pleased to celebrate its 70th

Anniversary, wishing them continued success in their...

Commitment to Service, Commitment to Excellence and

Commitment to the Future.

usbank.comMember FDIC. ©2014 U.S. Bank. 7273

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Parts and ServiceThe complexity of machinery today is far beyond that of the

farm tractors that Alvin Erb reconditioned in the 1940s. Tomaintain and repair high-performance, extremely technicalequipment, nearly 50 percent of Erb’s workforce of 215employees is directly dedicated to parts and service. Stockingapproximately 80,000 line items in its parts department andreceiving training on technological advances, Erb’s certifiedparts advisers have the resources to assist a wide range of equip-ment owners, including those who own competitive brands.

Erb’s staff of thoroughly trained, experienced and certifiedtechnicians is similarly available for fast and efficient servicefor maintenance and repair jobs on most brands of heavymachinery.

A fleet of 25 field service trucks spread throughout the loca-tions facilitate service calls within 24 hours for emergencies, ifpossible. To ensure that service trucks and crews are not held upat construction sites due to major repair work, disabledmachines are trucked to the shop for repairs, plus a loanermachine or a discounted rental machine is made available to thecustomer.

“Service is the backbone of any dealership. It has alwaysbeen that way,” said Terry Wichern, product support manager,who is a 16-year Erb employee with a family heritage of work-ing with John Deere. “Sales sell the first machine to a customer,service sells the rest. That’s even more true now because of thecomplexity of today’s equipment. You can’t really see thingsany more on a piece of equipment, as they are not connectedlike they used to be. There are more electrical monitors and sen-sors. Thus, a laptop is our main diagnostic tool.”

Erb’s executive management team is scouting other locations for expansionand a noncompeting supplier is being evaluated to augment Erb’s lineup ofauxiliary equipment, which includes Bomag rollers and NPK breaker and exca-vator attachments.

EQUIPMENT COMPANY

The employees of the Fenton, Mo., location.

Gregg Erb and Carrie Roider are siblings and the third generation of the Erbfamily to head the business.

“Service is the backbone of any dealership.”

Terry Wichem Product Support Manager

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70 YEARS OF COMMITMENT

The latest technology innovation is telematics — the long-distancemonitoring and control of equipment by owners and dealers. Softwareupdates are electronically transmitted to equipment in the field.Malfunctioning machines are diagnosed on site by technicians back inthe shop. Service managers at each of the Erb locations can performthe long-distance servicing.

As is the case across the industry, Erb Equipment is selling telem-atics to its customers who may be unfamiliar with the value of thistechnology. New Deere equipment from backhoes on up have facto-ry-installed telematics and come with free three-year subscriptions.Persuading buyers of new equipment to pay for the service after theinitial subscription expires is a service mission. “It’s our goal to provethe value of telematics so a customer will want to renew it,” Wichernsaid.

To meet that challenge, the telematics sales effort is coordinated in-house. Three staff members are dedicated to the task of helping cus-tomers understand the new technology. “It is a matter of getting outthere and educating the customer. Everyone has a hot button — fuel,maybe, or how much idle time their machines are experiencing — andwe can help the customer latch on to how telematics can address hishot button issue,” said Gregg.

“Overall, we are pushing the company to get more current withtechnology,” Roider said. “We are in the midst of an upgrade to a com-puter system that more fully integrates our multi-state operation. Thenew system will track the turnover of equipment and coincide withGPS processes in a way that better serves customers.”

Looking AheadRoider is comfortable revamping the dealership’s organization.

From growing up around the activities of the Erb headquarters, shelearned to operate the machinery and became involved in the admin-istrative side of the business. After graduating from St. LouisUniversity with a degree in accounting, earning the distinction of CPA,and working for a brief period with a CPA firm, she “came home” tothe dealership.

With Roider’s appointment to CEO, Erb Equipment became awoman-owned, operated and controlled company as certified by theWomen’s Business Enterprise National Council. In a male-dominatedindustry, Erb Equipment is the only John Deere dealership thus certi-fied and one of only two woman-owned equipment dealerships of anykind in the country.

Gregg, likewise, grew up in the family business, working his wayup from servicing tractors and restocking parts. Gravitating towardsales as a career, he became the sales manager for all Erb locations in1994. In 2012, he was appointed president and director of sales, driv-ing the business development efforts of two dozen new and usedequipment salesmen, plus continuing his role as an integral member ofthe executive management team.

He sees fresh opportunity in a line of portable crushing and screen-ing machinery manufactured by Construction Equipment Company inOregon. Adding this brand opens an avenue for the company to moreaggressively tap the aggregate and quarry industry, just as recentlyadding the Genesis line of shearing and crushing attachments has ledto scrap and recycling business. “I’m really excited about it,” he said.“By branching into these industries, we are also challenged to ramp upour service because downtime is extremely costly to these businesses.”

The employees of the Cape location.

(L-R): Bob Erb, Carrie Roider and Gregg Erb.

When the construction economy collapsed in 2008-11, Erb Equipmentfelt the pain of reduced new business along with the rest of the industry.One tactic of the company’s survival strategy was to emphasize usedequipment sales.

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OVERSIZE LOAD

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Congratulations to

Erb Equipment Co.On Your 70th Anniversary

and Wishing You Continued

Success in the Future!

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In St. Louis:

In Kansas City:

Saluting our friends at

Celebrating seventy years of success!

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Genesis is proud of its partnership with Erb Equipment. Together, we look forward to many more years of delivering superior attachments, equipment and service to the scrap, demolition and material handling industries.

genesisattachments.com

CONGRATULATESERB

EQUIPMENTON 70 YEARS

OF EXCELLENCE

©2014 Genesis Attachments, LLC

70www.medartengine.com

CONGRATUL ATIONS ON YOUR

YEAR ANNIVERSARY

EQUIPMENT COMPANY

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Connect with Paladin: www.paladinattachments.com

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70 YEARS OF COMMITMENT

EQUIPMENT COMPANY

In addition, an expanded relationship with Deere Construction is inthe works. Deere approached Erb Equipment about becoming theauthorized national repair and reconditioning center for all John Deereequipment that was previously leased. The program will build on Erb’sexisting reconditioning and paint facility, plus it will provide Erb witha fresh source of used equipment to market.

Erb’s executive management team is scouting other locations forexpansion and a noncompeting supplier is being evaluated to augmentErb’s line-up of auxiliary equipment, which includes Bomag rollers andNPK breaker and excavator attachments. Everything considered, busi-ness volume of $200 million is projected by 2019.

The prospects are brightened by the knowledge that Erb employeesare quite satisfied in their work. In an independent survey, nearly 85percent of employees responded that Erb Equipment is the best compa-ny they have worked for, and almost 90 percent believe the companycares for them as individuals.

“We have a great team devoted to serving our customers,” saidGregg. “Our customers and our people make our business what it istoday—and what it will be tomorrow. As we are proactively looking forways to serve our current customers better and to earn the business ofnew customers, we are very optimistically looking ahead to the next 70years of progress and success at Erb Equipment.” CEG

As renting continues to be a popular option for contractors, equip-ment rentals account for nearly 10 percent of total business volume,and is expected to grow in 2014 to nearly $14 million in volume, upfrom $10 million in 2013.

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Reader Service No. 6115

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70 Years and Counting!

Congratulations on your anniversary!

Ryterski Trucking Inc.21108 State Route 127Nashville, Illinois 62263

Phone: 618-336-5371AL - PAUL - BOB - ROSS

CONGRATULATIONS

7045 College Blvd., 4th floor | Overland Park, KS 66211

888-240-8803, x2808

On Celebrating70 years in Business!

ERB EQUIPMENTCOMPANY

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Erb Equipment Co. on your 70th Anniversary!

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CONGRATULATIONS

STIONSIONTATATATAA

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STIONSIONTATATAA

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Congratulations

on 70 years in businessErb Equipment Company

Thank you for the continued partnership

CongratulationsCongratulations

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