Michigan CAT

Source: Manufacturing Digital

Date :3/18/2008 5:15:49 AM

A focus on customer satisfaction has seen Michigan CAT enjoy dynamic growth and market leadership

Written by Ian Armitage and Produced by Robert Tuneburg

Michigan CAT is one of 59 Caterpillar dealers in North America. It has been a CAT dealer since 1944 and believes its future is dependent upon the “success and satisfaction” of its customers. Its mission is to serve them with the highest quality products and exceptional service.

“We are an organization that has seen dynamic growth and enjoyed market leadership. Why? Because we’re committed to improving customer service and business processes. And we have excellent staff,” explains Mike Bills, Director of Sales & Rental Operations, Michigan CAT.

But where did it all start? Well, according to Mike, “Michigan CAT was founded as Michigan Tractor and Machinery Co. in 1943 by Jerrold A. Frost Sr.” Jack Frost served as Chief Executive Officer until 1971 when his son-in-law, Mark Jung, was elected President. His son, Jerrold M. Jung, was elected president in 1988, a position he holds to this today.

The company was initially headquartered in Detroit, Michigan until 1965, when it was moved to Novi. Today it also has sales, service, rental and parts stores in Brownstown Township, Grand Rapids, Kalkaska, Lansing, Milford, Saginaw, and Shelby Township. Michigan CAT also maintains dozens of secondary and affiliate locations throughout the state.

Michigan CAT: simply the best

Since its formation, Michigan CAT has been servicing, renting and selling construction equipment such as scrapers, dozers, excavators, backhoes, and paving machinery, as well as engines used to power trucks and generators. It also handles an extensive line of compact construction equipment (CCE), including skid steer loaders, mini excavators, and small wheel loaders, amongst other things.

It today employs over 600 technicians, parts people, sales people, administrators, and managers who are the backbone of the organization that has produced gross corporate sales in excess of $400 million annually since 1997.

Although it continues to be the dominant heavy equipment and engine dealer in its marketplace, it continuously strives for better, more efficient processes and more quality people to achieve success.

So why choose Michigan CAT? First, it’s the best and can cater for almost any need, no matter the size of the job. It offers weekly, monthly and long-term rentals of Caterpillar equipment to supplement any fleet, with service available 24/7.

“Our goal is to offer our customers competitive rates, well maintained machines and the best service in the industry,” explains Mike, who says it is important not to forget that it rents more than just CAT machines.

Customers can also count on the parts they need being available on short notice, and expert service personnel on hand to ensure a rapid response – after all, Michigan CAT recognizes that time is money: “We understand that when your machine is not working, you are not earning,” says Mike.

Unique approach

Differentiating itself from other dealers, Michigan CAT has a unique approach to its customers. “We are very customer focused and have account reps, as opposed to salesmen, who focus on separate product families and separate customers. We have one account rep that is appointed to a geographic territory and handles all of that customer’s needs, whether it is rental, used machines, whatever.” Most Caterpillar dealerships don’t have this type of focus.

“Our account reps are in daily contact with the customer base; only then can we fully understand their needs, because they obviously change and sometimes quite quickly,” adds Mike. “Obviously we look at different equipment trends and try to gauge where the industry is going. Our inventory levels kind of flow depending on what history tells us too. Of course, we also listen to our customers and when there is a need in the market place for a certain type of enhancement or a different type of product, we start to supply it, and as demand grows, our inventory changes.”

Mike believes the sales force does a tremendous job with customer retention and has unrivalled experience in the industry. “They can be very proactive when it comes to industry trends, because they have seen a lot of them come and go. We have a very experienced sales force here,” he says.

Michigan CAT is a great company to work for, which truly rewards good performance, and as a result it is well placed for future success.

Moving into less traditional markets

With thoughts on the future, Mike adds: “We are going to continue to focus on niche markets, like demolition and scrap. I guess they are markets that Caterpillar isn’t necessarily known for, but they have become so critical to our business and comprise a large percentage of our total opportunity. So, we will continue to focus on those non-traditional dirt moving applications – frankly we see a promising future in above ground mining.”

He continues: “We have got a significant amount of competitive pressure also. Most of it comes on the price: we are a premium product and we charge a premium price, so there is a lot of pressure from a cost standpoint. When times are tough, customers take a hard look at their costs. But that is one area where we show our value and we show what we can offer from a parts and service standpoint. We understand that time is money.” Fortunately, the organisation has two Six Sigma black belts, which certainly helps when it comes to streamlining and reducing cost.

“We get quite a bit of competition,” adds Mike. “Regardless of the product improvements we make, relationship building is extremely important. We get close to the customer and treat them like family. Customer retention has been one of the keys to our success. Every company has a mishap from time to time, we work hard to ensure this is a rarity for us. Usually, when we have a customer we develop that loyalty and they are a customer for life.”

Through creating valued partnerships, built on integrity, Michigan CAT can expect to remain the industry leader for years to come. With a variety of options available to meet a variety of customer needs, it stands as a proven local partner who will find the right solution for any customer.

Click here to view the corporate brochure on Michigan CAT