Two Equipment Industry CFOs discuss how their roles have changed over the last five years.

When markets change we sometimes need to take on new responsibilities and employ different strategies. Such has been the case in the heavy equipment industry for Gayle Humphries and David Leavitt.

“2013 was our recovery year from the recession. It was about building cash reserves back up. We proceeded slowly and cautiously,” says Gayle Humphries, chief financial officer for Low Country Machinery, with locations in Statesboro and Pooler, GA. Today the situation is dramatically different for the dealership.  Sales volumes have tripled since 2013 and Low Country also formed a completely new dealership. Low unemployment has made finding good people the dealership’s biggest challenge.

Most construction equipment and rental dealers will admit that there is less differentiation between products today, resulting in increasing pressure on prices and lower margins.  Parts are available from a proliferation of sellers and it’s easier than ever for customers to shop for the lowest price.  Customers want to own less and rent more.  We have technology with the potential to improve productivity and profitability for dealers and their customers, yet adoption lags. Why? In a Fast Company article , authors John Elkington and Richard Johnson argue that we need more breakthrough business models, not breakthrough technology.

“Business models are what connects a technology’s potential with real market needs and consumer demand,” says the authors. 

Strategy consultant and author Kay Plantes, believes that business models have become a key way to differentiate from the competition, replacing product features and benefits. A business model defines how will you create, deliver and capture value for your customers.  

Consider how these innovative business models enabled these companies to differentiate themselves in their markets: