Finke Revision 2

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Robert H. Finke & Sons, Inc.

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By Mary S. Yamin-GaroneCEG CORRESPONDENT

John Finke, president of Robert H.Finke & Sons Inc., is rightfully proudof his company’s new, highly antici-pated 67,000-sq.-ft. facility. The con-trast between old and new couldn’t bemore stunning. The old facility, hav-ing served the Selkirk, N.Y.-basedcompany ably for 30 years was, ifever a cliché was apt, literally burstingfrom the seams. Alternatively, the new facility is an expansive, ambitiousbuilding that offers everything an equipment dealer could ask for: roomto work, room to service customers to the highest degree of profession-alism and efficiency, and room to grow.

Getting to this point, to this crowning achievement exemplified by amassive modern, state-of-the-art facility took old-fashioned, but time-proven business values: hard work, dedication, passion and persever-ance. And it took many good people along the way, too.

Humble BeginningsIt all started in 1977 after John Finke graduated from Cobleskill

College. “My father, Robert Finke, and I started this business in our basement

with $4,000,” he said. “We actually borrowed the money off a cash sur-render value for one of his life insurance policies. After we got themoney, we went to Marsh Hallman Chevrolet and bought a pickup truckfor $4,000 and were immediately broke, but we had a pickup truck. Inthe beginning, my father sold pumps, generators and compactors out ofthe back of the truck and I did small engine repair. In 1979, we boughtthis little piece of land on the east side of Route 9W and built a 1,500-sq.-ft. shop.”

In 1984, Robert H. Finke & Sons Inc., also known as FinkeEquipment, constructed a cement block building again on the west sideof Route 9W at the Bethlehem-Coeymans border. They continued torepair small engines and small pieces of construction equipment andbecame a Homelite dealer. Shortly thereafter, they purchased some well-used heavy machines to rent to contractors. That move launched theminto the construction equipment business.

“We bought a few used machines and started in the equipment rentalbusiness,” John recalled.

Then, in 1987, the company took a pivotal risk that led to even moresubstantial growth.

“We built a larger building on the west side of 9W where our repairshop and offices are today.” That original structure has been expandedtwice. In 2013, we began a project that we hope will take our companyto a whole new level.”

And it has.

The New FacilityGround was broken in February

2013 for what is sure to be the firstfacility of its kind around. With a $9.5million price tag, it may also be oneof the most expensive. The buildingwill boast over 30,000-sq.-ft. of shopspace, including a full fabricationshop, a 20 by 60-ft. indoor paintbooth and an indoor bay wash. Therealso will be:

• Two 10-ton (9.1 t) overhead cranes that run parallel;• A 4-ton (3.6 t) jib crane;• Eight drive-thru bays for service and repair;• Custom manufacturing capabilities;• A welding shop with a 5-ton (4.5 t) bridge crane;• Radiant floor heat;• Skylights;• An array of solar panels; and• A hydraulic hose center.The radiant heat installed in the main shop was quite an investment.

The building is 35 ft. tall with a temperature of 70 degrees on the floorand the ceiling.

“We create a lot of used oil from servicing machines. That oil is whatfuels the radiant heat. We also put in solar panels that generate 200 kilo-watts worth of power. Our return on investment should be about fiveyears. We’ll see. It’s a learning curve. Monolith Solar is another partner-ship. It was their biggest install to date and they’re going to be exhibit-ing in our showroom.

“There are a few panels on our sales cubicles and we have a 42-inchflat screen TV with a real-time bar graph that tells how much energywe're generating,” Finke added. “We are anticipating about a $40,000per year savings on our utility bill by going green.”

The new facility was designed by a team that included C2 DesignArchitecture P.C. and Plank Construction Services, both of Schenectady,N.Y.

“Plank put together an awesome group,” Finke said. “I’m still numbbecause every sub on the job was great to work with. Right from DayOne everything on the project was positive. Our first planning boardmeeting was basically a conceptual one and we walked in with finishedblueprints that were ‘site ready.’ It wasn’t like we went in there with anidea. We wowed them and the timing was right. I think the town want-ed a project like this. Plank put some neat features in the building. Theyused a lot of imagination and I can honestly say that through the entireprocess they never said, ‘We’ll see if we can do it.’

“They were responsible for the foundation, sitework, steel erection,

Big, Bold MoveRobert H. Finke and Sons Opens Doors to Massive, New Facility

Where it all started. Robert Finke (L) and John Finke work in Robert’sbasement in 1977, before they purchased their first building for FinkeEquipment, which was originally a gas station.

In 1979, Betty Jean Finke and Robert Finke stand in front of the firstbuilding, which is now the truck shop.

Finke Equipment’s new facility is certainly vastly different from its humble beginning in a refurbished gas station.

6

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1569 US Route 9WSelkirk, NY 12158

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and the finished building,” Finke added. “Everything else was subbedout. We had an agreement with them that we would approve all subs. Wewanted to be sure that as many of them that came here were Finke cus-tomers. Certain categories were tricky. There would be 10 or 12 cus-tomers that did paving and then there'd be other areas where there was-n’t any competition. We tried to spread it around, but there were someareas where we had no relationship. Nobody got sore at us but it was abalancing act.”

Finke admitted that all employees in the company are pretty excitedabout this new facility.

“The building gives us a lot of room to do things we couldn't dobefore,” he said. “There will be two conference rooms, a LearningCenter and two lunchrooms. The downstairs lunchroom can hold 35people. That’s all of our employees. We’ll have locker rooms; littlethings. Right now we have a six-foot picnic table that’s in the middle ofthe shop that serves as our lunchroom. Our welding shop was a militaryQuonset hut; one of those half pipe shaped buildings. That was torndown. We might be tearing this building down, too, or keeping it as awarehouse."

The emphasis with the new facility will be on training. “We’ll have the ability to communicate better,” Finke said. “We’re

not bad communicators. We just didn’t have a place to do it before. Nowwe can get all our people together for safety meetings in the LearningCenter. We’ll be able to do a lot of in-house training, regional service andsales schools. We can actually bring a machine inside and with all thesmart room technology we can have projection going on: audio, video,walk-arounds.”

Robert Finke and John Finke with their first truck (a 1968 Autocar) and trailer (1952 Martin).

Shown here is the first building the family purchased for their businessin 1979. When they built the second building across the street, thisturned into the truck shop.

The initial blocks are laid for the shop the company had just movedout of in 1984.

A Finke Equipment Mack truck rests at an open house in Hunter Mountain Ski Area with Heather Finke sitting on the hood.

Here are two of the first Hamm rollers that Finke Equipment stocked inits rental fleet.

10

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Finke Equipment’s trust inMonolith will be paying offsubstantially for the next 25years or more. Over 40% oftheir electrical needs will bedelivered by the solar PV sys-tem recently installed on their roof, providing forsavings estimated to be inexcess of $1,000,000 over the life of the system.

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Robert Finke chains down the first load with theAutocar.

John Finke (R) and Robert Finke dig up the gas tank that was at the first building, which was originally a gas station.

Finke Equipment’s first truck was a 1968 Autocar.

During the scope of this project, 17 acres (6.9 ha) adjacent to thestructure became available. Finke purchased it for a proving ground.

“We were interested in it for future expansion and equipment stor-age,” Finke said. “On this footprint you can go out and dig a hole andtest a machine. Now there’s a nine-acre field so we can pre-qualify someof the sales. There are a lot of situations where a customer wants to tryout a piece of equipment. Instead of trucking it out to them for free,there’s a dirt pile out back where they can run it around for three hoursif they want. It also will allow us to test repair jobs and we hope to hostsome of the sales clinics, like Bobcat.”

Room to GrowThe facility will allow the company to “staff up,” too. “While we want to grow the business, we want to grow the inside of

our business first,” Finke said. “We plan to promote from within so ourcurrent staff will be able to move up and some job responsibilities willchange. There will be a lot of cross training so everyone has backup.”

Despite the company’s growth, many of the equipment lines Finkestarted with remain a core part of its operation.

“We’ve tried to maintain stability with most of our lines,” Finke said“If we’ve changed lines it’s because a manufacturer went out of busi-ness. Contractors like stability. They don’t want to see you changingbrands. They like to go to buy their parts from the guy who sold themthe equipment.”

Today — with more than 600 pieces to its fleet — the company is adealer and authorized service agent for such recognizable constructionequipment brands as Kobelco, Bobcat, Hamm, Wirtgen and Vogele. Inaddition to selling, renting and repairing big-ticket items, like excava-tors, milling machines, dozers, rollers and skid steer loaders, rollers and

Finke Equipment is ready when the power goes down. This Kohlerpower generation plant can power the entire facility.

Finke Equipment’s new facility boasts a 16-bay shop.

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16 17

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Congratulations

on the opening of your new Selkirk facility

arrowboards, Finke also sells, rents and services chainsaws, generators,plate compactors, jack hammers and pumps by industry leaders Stihl,Honda and Wacker.

Finke Equipment was one of the first area dealers who rented equip-ment.

“There was a fair amount of business out there and just enough roomfor one more little guy who wanted to pick up the crumbs,” Finke said.“Well, you can get a big pile of crumbs if you pay attention. That’s real-ly how we broke into the market. For the first 15 years, 90 percent of ourrevenue was from rental. We didn’t have any OEM lines we could sellso we’d buy John Deeres and Caterpillars and put them in our rentalfleet.”

John Finke showed his business acumen again when he started doingbusiness with New York State’s Tier 1 major heavy highway contractors.

“Generally, the big, solid heavy road guys were diehard Caterpillar,John Deere and Komatsu. We fit into that arena. Most of our manufac-turers’ lines weren’t competing. The secret was they all were good qual-ity, so we were able to break into the market without having any John

Finke Equipment’s new parts counter.

One of the shop’s two 10-ton (9.1 t) overhead cranes helps servicea Hamm asphalt roller.

Deere dealership, which wasn’t available, or a Caterpillar dealership,which we could never afford.

“We borrowed money everywhere we could to come up with enoughrevenue to get into the heavy equipment business,” he added.“Everything I tried to do, my father tried to make happen. He tried to getthe funds. Some of those loans were expensive, especially the interestrates. If a good, solid guy was paying nine percent we were paying 12because we were new.”

That bold move made Finke Equipment a force to be reckoned with. “Our competition in the marketplace didn’t like us,” Finke said.

“They were a little threatened and it took them awhile to respond. I thinkthey thought we would fail, mostly because of the cost. ‘OK. He’s gottwo of them. He’s no threat.’ Next thing you know we have eight andthen 10 and it just kept growing. We were under the radar for a while,which was a beautiful thing. About 20 years into it everybody startedpaying attention. We were taking enough of the market share that wewere more than a little nuisance. We didn’t really have any battles, butour competitors were aware that we’re here now and they try and beat

Robert H. Finke and Son is now completely equipped to han-dle repair or custom fabrication of any type of hydraulic hose

and/or coupling.

us whenever they can. That’s just business.”

A Dream Come TrueJohn Finke’s staff also is looking forward to moving

into their new digs. “The employees are excited, too, and rightfully so,”

Finke said. “The group of people we have here hasworked with very little for very long and done well.”

General Manager Don Fiacco has been overseeing thecompany’s day-to-day operations for seven years. Healso played an integral role in bringing the new facility tofruition and is looking forward to the challenge of takingFinke Equipment to the next level.

“It will be a much better place for the employees towork,” he said. “I think everyone’s attitudes and outlookswill improve. No matter where you look it’s so differentfrom what we were in before. It’s like a dream cometrue.”

Fiacco also has nothing but praise for his boss. “What I like best about working for John [Finke] is the

trust he puts in everyone; their ability to make a decisionand be forward thinkers. He wants us to do whatever’s

Finke Equipment has no need to rely on service stationsto provide gas and diesel. The company now is wellequipped to refuel independently, regardless of thetime, day or night.

R.H. Finke & Son has one of the most advanced heavy equipment painting facili-ties in the Capital District. This mixing room meets all environmental and safetystandards.

necessary to make the customer happy. No matter how bigthe company gets we must remember the customer is real-ly why we’re here.”

Bob Rowe joined Finke Equipment as parts manager in2010. In parts for 25 years, Bob's in charge of the compa-ny's inventory, including the trucking department, pumpsand generators and the showroom floor. He finds workingfor John [Finke] “refreshing.”

“We do business differently than most dealers.,” hesaid. “We don't say ‘no.’ If it’s not a line we carry, we’llfind it for you. I worked for dealers whose line was set instone and that’s what they wanted to concentrate on. Finkeis geared more to what the customer wants.”

Bob is eager to move into the new office space “so Ican concentrate more on my job description,” he said.“I’m looking forward to a bigger space; a more efficientwork environment; being able to stock more parts; andhaving better pricing and availability. It’ll be a showplace,but customers still can come in with their muddy boots, sitdown and have a cup of coffee and feel comfortable.”

Don Bauer has been working as Finke’s sales managersince 1990.

A salient feature of Finke Equipment’s new facility is itsspacious new 16-bay shop.

These two inverters are a part of the solar generation system installed by MonolithSolar.

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CongratulationsRobert H. Finke & Sons

For over two decades, Plank Construction Services has been developing projects as prestigious as the New Robert H. Finke & Sons Facility.

This facility was created through the power of design build and teamwork. If you are planning a project and would like to become part of a winning successful team,

Plank Construction Services should be your first call

376 Broadway - Schenectady, NY - 12305(518) 344-5400

Contact: Dick Schlansker, V.P.

www.plankllc.com

23

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nM

“When I first started working for John [Finke] 25 years ago, we werejust moving into the building we’re in now,” Bauer said. “I graduated upthrough the ranks with him.”

What’s he looking forward to the most about the new facility? “My new office,” he said. “I've been in a job trailer for eight years. I

also think the Learning Center will allow us to do our job better. We sella lot of pavers and rollers and the new training facility will be great. It’salready spreading like wildfire. We’ve taken some of our longtime cus-tomers on a tour and they’re excited.”

Gina Bullock joined Finke Equipment in 1993, fresh out of highschool.

“I started out answering phones, handling all the payables and receiv-ables, every little job there was on the way up and ended up as officemanager,” Bullock said. “When our controller left a few years ago, Imoved into the position. I enjoy the camaraderie here. They’re like myfamily. We all get along great. It’s a good place to come to every day.”

Gina is eagerly anticipating the room the new building will afford herand her girls. “It’s so beautiful. We’re busting at the seams here. Nowwe’ll have room to grow a little bit. It’s been a long time coming.”

For Tim Brandt, the new facility means being able to streamline oper-ations.

“It will be a lot easier to manage,” Brandt said. “The way I’mcramped now it’s hard to tell what I have and where.”

A Finke employee for 20 years, Brandt worked his way up frommechanic to service manager.

“I enjoy the diversity of what we do; solving problems; and helping

John Finke (R), president, stands with his very first customer, Gary Slutzky, owner of I & O.A. Slutzky Construction.

Heather Gardner, administrative assistant.

Don Bauer, sales manager.

John Finke, president, with his daughter and administrative assistant, Heather Gardner, and his newest employee, son, Jarrid Finke.

Christine Calordino, administrative assistant.

Until recently, this building served as Finke Equipment’s sales, service andrepair center.

Bob Roe, parts manager. Don Fiacco, general manager.

the customers get back up and running. I enjoy that sense of accomplish-ment,” he said.

As for John Finke’s father, “He’s pretty impressed,” John said. “Hegot a little misty when he came up from Florida. There’s an office forhim and he wasn’t expecting it. He and I had to partner up to do this andat 87, he probably needs a mortgage and more liabilities like a hole inthe head. We’ve always been partners and done everything together atthis facility so he didn’t bat an eye when I reached out to him.”

When asked about his success, John Finke admitted, “Some of it wasluck, but most of it was hard work and sacrifice. We didn’t always havegood times but we always paid our bills. I remember the early ’80s and’90s. [That time] kind of made a man out of me. You’re calling aroundon Wednesday to get money to make payroll on Thursday. I know dur-ing the ’80s we couldn’t take paychecks. I tended bar at the Knights ofColumbus. My brother worked nights at the Grand Union because wecouldn't get paid … but it makes you who you are. I wouldn’t do any-thing differently. The tough times make you appreciate the good ones.”

Looking back, what does he consider to be his greatest accomplish-ment?

“Surviving when everyone said we couldn’t do it,” Finke said. “It’s agood motivator and a feeling of self-accomplishment. It gets to a pointwhen you get past 12 employees and you can’t do it alone anymore. Youneed people who believe in it the same way you do. I got lucky. I’ve beenfortunate that I crossed paths with the right people. At this level, youdon’t have a company this successful without having about eight peopleyou can really count on. It’s huge.”

(This story also can be found on Construction Equipment Guide’s Website at www.constructionequipmentguide.com.)

John Finke, president, stands on an excavator from a company thathas been and remains a key foundation in the growth of the company,Kobelco.

Tim Brandt, service manager

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EB 5000

Congratulations Robert H. Finke & Sons, Inc. on your new facility!

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Downtown Manhattan has been abuzz with massive constructionprojects for more than 10 years following 911. While the constructionand reconstruction continues, the new normal in terms of pedestrian traf-fic in the area is starting to present itself. The Vesey Street, West SideHighway intersection is one area that represents this shift.

The first Vesey Street Bridge originally provided access from theWorld Trade Center to the World Financial Center. This original bridgewas destroyed in the collapse of 1 World Trade Center during the Sept.11 attacks, closing the intersection of Vesey Street and the West SideHighway.

Ground was broken for a temporary Vesey Street Bridge in August of2003, opening in November 2003, when PATH train service to a tempo-rary terminal by the WTC site resumed, connecting the southwest cor-ner of Vesey Street and the West Side Highway, next to 3 World TradeCenter, to the northeast corner, next to 140 West Side Highway (VerizonBuilding). This temporary bridge allowed for the safe movement ofpedestrian traffic over the busy West Side Highway as a new, under-ground tunnel was being built.

The temporary bridge at Vesey Street was officially closed on Oct. 7,2013, with demolition starting just before Thanksgiving and wrapped upin early January 2014.

The demolition project of the temporary bridge was handled througha joint venture between Tully Construction Co. and EE Cruz andCompany, both of whom have been actively working to restore down-town Manhattan since shortly after the 9-11 attacks.

A Kobelco SK350, 81,800 lb. (37,104 kg), 270 hp (201 kW) excava-tor equipped with a shear was brought in from heavy equipment dealerRobert H. Finke & Sons of Selkirk, N.Y., to handle the demolition of thebridge spans. With one of the spans placed in the closed off center cor-ridor of the West Side Highway, rubber necking delays were definitely areality during demolition. Motorists not only got a clear view of the dem-olition work, but also of the Kobelco excavator wrapped in Americanflag graphics.

“This Kobelco 350 is part of our rental fleet,” said Don Fiacco, gen-eral manager of Finke Equipment. “When we received the call for anexcavator with a shear, it was apparent which excavator we’d be send-ing down. The patriotic sentiment tied to this Kobelco machine, original-ly displayed at ConExpo 2011, and its specifications of course, made ita perfect fit, so we installed the shear on it and brought it down to thecity to complete the work.”

The Kobelco excavator/shear product combination, with its 10.0 rpmswing speed, quickly cut through all 167,000 lbs. (75,750 kg) of the six,10 ft. (3 m) sections of the bridge. With the demolition completed, thenext portion of the project is the reconstruction of the center lanes of theWest Side Highway, where barrier walls and plantings will be installed.

Finke Equipment Delivers Patriotism to Ground Zero

A Kobelco SK350, 81,800 lb. (37,104 kg), 270 hp (201 kW) excavatorequipped with a shear was brought in from heavy equipment dealerRobert H. Finke & Sons of Selkirk, N.Y.

Learning in Style

The Learning Center is a key aspect of the new FinkeEquipment complex. This theater-style room has seating for up to50 individuals and is equipped with the latest audio and videoequipment, WiFi; it even has a large overhead door that allowsequipment to be brought into the room for training purposes. Thisfacility will be available to Finke Equipment’s suppliers to con-duct classes as was just recently done by Wirtgen for its 8 ft. and10 ft. pavers. The facility also will be made available for localorganizations that have an appropriate need.

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People's United Equipment Finance Corp. is a premier commercial finance company specializing in financing and leasing of CONSTRUCTION,

TRANSPORTATION, INDUSTRIAL and REFUSE equipment.

Equipment Sales Finance and Leasing Program:

People's United Equipment Finance Corp. offers manufacturers and equipment distribu-tors a wide range of retail financing and leasing programs designed and tailored to meetthe special needs of their customers. These programs include retail installment salesfinancing, leasing and rental pool financing.

Direct Financing:

The Company provides installment sales, equipment leasing, capital loans, and salelease-backs secured by equipment and other assets for end users of equipment, therebyproviding capital for equipment purchases, acquisitions, business growth, and recon-struction.

James D. EspositoRegional Vice President

300 Frank W. Burr Blvd, Suite 50Teaneck, NJ 07666

Phone: 201-801-0300 Fax: [email protected]

Purchase, Leasing, Refinances, Debt Consolidation and Working Capital Programs available

Finke Revision 2

Documents

Transcript of Finke Revision 2