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Vol. 13, No. 29 Week of July 20, 2008
Providing coverage of Alaska and northern Canada's oil and gas industry

Petroleum Directory: CMI gains customer loyalty with top-quality equipment, systems and tools

Construction Machinery Industrial’s heavy equipment lines — Volvo, Atlas Copco, Hitachi and more — keep Alaska businesses humming the way they should

Construction Machinery Industrial is a full-service dealer and distributor of top-of-the line heavy equipment that saves customers time and money and keeps their Alaska projects moving forward.

Q. When was Construction Machinery founded, who founded it and what was its original name?

A. Our company was founded in 1985 by Kenneth Gerondale Jr., Billy J. Allen and Robert Elliot as Construction Machinery Inc. It was reorganized as Construction Machinery Industrial LLC, in April 2002.

Q. Where is CMI located?

A. We have four branches to serve our customers — Anchorage, Fairbanks, Juneau and Ketchikan. All the necessary contact information is available on line at: www.cmiak.com.

Q. Who heads up Construction Machinery Industrial LLC and who is on its senior management team?

A. Kenneth L. Gerondale Jr. is president. The senior management team consists of: Chee Kong Toh, director of finance and credit; Robert Gerondale, corporate operations manager; Ron Allen, sales manager; Wade Gies, Fairbanks branch manager; and Chris Gerondale, Southeast region manager

Q. What is the company’s primary business sector? What services does the company offer?

A. We don’t have just one. Our primary business sectors are petroleum and mining; private and government civil projects; general construction and logging. We sell and service heavy equipment for the construction, logging, aggregate, mining, oilfield and agricultural industries throughout Alaska. CMI represents more than 40 vendors, including Volvo, Hitachi, Atlas Copco, mentioned above, and Ingersoll-Rand.

Q. Who are the company’s main clients?

A. Companies involved in the oil, gas, mining, construction and timber sectors.

Q. How many employees does Construction Machinery have?

A. We have about 100 employees, with most working out of the Anchorage branch.

Q. Describe your essential equipment in general terms. Purchases planned?

A. CMI is a full-service dealer and distributor of first-choice heavy equipment. We are the full-line representative for Atlas Copco, Volvo, Hitachi, Ingersoll-Rand, Link Belt Cranes, Genie Manlifts, Almand Brothers, Gorman Rupp, and Fleetguard Filters; we also handle a full line of stationary air systems and pneumatic tools.

Q. Is CMI expanding any of its operations and/or locations?

A. In Fairbanks we completed a warehouse expansion and interior renovation and are planning a shop expansion for 2008.

Q. What is CMI’s main strength, i.e., its edge over the competition? Main competitors?

A. As a “people-oriented” business, our biggest asset is our company’s human resources. CMI is committed to continuous training and development of our employees, all through the ranks. We strive to be regarded as the “employer of choice” in the marketplace. A team of employees and manufacturers committed to customers’ needs and satisfaction is a winning team, especially when we have the locations best able to fulfill those needs. With every heavy equipment dealer in Alaska as our competitors, we have to be good to protect and grow our market share.

Q. What new markets, clients and/or projects did Construction Machinery Industrial attract in the last year?

A. That would have to be the crane market, through our Linkbelt Crane line. We have also generated underground mining clients with equipment and drilling accessories manufactured by Atlas Copco.

Q. Has the company invested in any new technology in the last two years?

A. Acquiring, implementing and training our employees in state-of-the-art manufacturers’ software systems that allow us to be more efficient, streamlined, productive and proactive in diagnosing and doing preventive maintenance has been a major investment. This has allowed us to optimize our customers’ productivity and profitability. The latest technology has also helped improve our inventory management system to ensure we maintain and manage our parts inventory to have the right part in the right place at the right time.

Q. What is the biggest challenge the company faces?

A. I’d have to say recruiting and developing our human resources to be able to present the most knowledgeable person for each customer’s needs is a big challenge, one we’re meeting more efficiently every day. We’re always looking to find enough industry-specific, skilled service technicians to facilitate company growth.

Q. What are the biggest obstacles to completing work the company undertakes?

A. The huge, expansive geographical Alaska marketplace that demands intense logistical management and control has to be the biggest obstacle.

Q. What do you see as future trends or opportunities for CMI from events such as long-term weather fluctuations?

A. The focus for the future will be in cutting emissions and greenhouse gases, and that will become a major factor in peoples’ purchase decisions. We’re pleased to represent Volvo, which is the leader in engine technology and fuel efficiency.

Q. Do you have an anniversary or other landmark event coming up?

A. Not this year, but we do celebrate a customer appreciation day every year in June.

Q. What is the average length of time employees work for the company? Are you hiring for any positions?

A. The average length of employment is 4.9 years. We are currently looking for more sales staff in Anchorage, Fairbanks and Juneau as well as additional service techs to better serve our clientele in those branches.

Q. What is Construction Machinery’s safety record?

A. Excellent. I’m happy to say it has been wholly uneventful.

Q. Do you have a Web site?

A. Construction Machinery Industrial’s Web site is: www.cmiak.com.

We also invite readers to visit these websites of manufacturers we represent. They are:

• Allmand Brothers www.allmand.com;

Atlas Copco AC Connect www.atlascopco.com;

• BTI www.rockbreaker.com/;

• ESCO www.escocorp.com;

• Fleetguard Filters www.cumminsfiltration.com;

• Genie Industries www.gogenielift.com/;

• Gorman-Rupp Dealer Net www.gormanrupp.com/;

• Ingersoll-Rand pneumatic Tools www.irtools.com/;

• Ingersoll-Rand www.ingersollrand.com/;

• Ingersoll-Rand Stationary Air http://air.irco.com/;

• Hitachi www.hitachiconstruction.com;

• Link-Belt www.linkbelt.com;

• Metso Minerals www.metsominerals.com;

• Multiquip www.multiquipparts.com;

• PSM www.psmcorp.com/;

• SPX Powerteam www.powerteam.com/;

• Volvo Construction Equipment www.volvoce.com/; and

• Weldco-Beales www.weldco-beales.com/.



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