Owners are eyeing the Western Slope for another branch soon, along with possible expansion through consolidation with dealers in other states.(ProSource Machinery photo)
It was Alexander Graham Bell who once said, "when one door closes, another one opens."
Derek Dicks and his company, ProSource Machinery, had enjoyed success renting heavy equipment to the North Dakota oilfield from their Billings, Mont., location since 2014. The door to the oilfield closed abruptly in 2020 when crude prices plunged and exploration all but stopped. ProSource Machinery's rental fleet went from 100 percent utilization to zero in a matter of weeks, according to Dicks, and the company's very existence was threatened.
Another door opened — this one in Colorado — due to SANY America, a line Dicks had taken on in 2019 to supplement the rental business. SANY offered Dicks the dealership in northern Colorado and the option to expand into Denver, but it would mean the Montana native would need to relocate.
It would be a huge step from Billings — population just over 115,000 — to Denver, a top 20 market in the United States.
"What I saw in SANY," Dicks said, "was a quality product with one of the best warranties in the industry. And with a very competitive price point in a great market like Colorado, I felt like it was worth the risk. SANY was expanding their product line rapidly and I felt like we could build a dealership around their equipment."
ProSource Machinery's first Colorado branch was in Platteville, approximately 45 mi. north of Denver and convenient to the growing Fort Collins area. One year, the company opened in Denver and followed that up with a store in Colorado Springs. The Billings location continues to offer the SANY line.
Positioned for Success
"I was introduced to SANY by the dealer in Idaho, who is also a friend," Dicks said. "He suggested I take a look at it, so I went to Peachtree City [SANY America headquarters] and investigated. I soon realized this was a high-quality machine. All componentry is quality stuff and they are using quality power from the likes of Cummins, Yanmar and Isuzu.
"I learned about their five year, 5,000-hour warranty, and with less exclusions than most of the others," he added. "The warranty itself speaks to the quality of the machine and the confidence the manufacturer has in it."
The marriage of SANY and ProSource Machinery has been successful.
"We literally went from just four employees to more than 30 in a year and a half," Dicks said. "And from one branch to four in about the same period of time."
Austin Dicks, Derek's son, was recently named COO and operates the Billings branch.
Derek (L) and Austin Dicks
Dicks said he is eyeing the Western Slope for another branch soon, along with possible expansion through consolidation with dealers in other states. The northern Colorado location will be relocated from Platteville to be closer to southern Wyoming.
"My personal goal is to be one of the largest SANY dealers in the U.S," Dicks said. "ProSource Machinery currently ranks in the top five selling SANY dealers in the country," he said.
According to Dicks, the Denver market is quite similar to Billings, except of course for the size.
"We seem to do well with small to mid-size contractors in the dirt moving and infrastructure markets, along with a little mining," Dicks said. "Excavators have been our mainstay, but we are seeing growth in telehandlers, wheel loaders, motor graders and rollers, all of which SANY now offers. We're very excited about the new backhoe loader that became available this year.
"SANY's ever-expanding line makes it possible for us to compete with the more well-known manufacturers," he added. "It seems like with our support capabilities combined with our pricing, we are at an advantage against the other guys."
ProSource Machinery recently added the Rokbak articulated truck line to its offerings along with Hydrema dump trucks and K-Tec scrapers.
‘Quite a Ride'
Both Derek and son Austin cut their teeth in the industry as mechanics with a Caterpillar dealer. That might explain the focus on support that trickles down to the entire staff.
Derek's career was on an upward path at the dealership, working his way up to service manager, then used parts manager and, ultimately, used equipment manager and heavy rents manager.
"The scariest day of my life was when I walked out the door of the dealership I'd worked at for 24 years to start my own business," Dicks recalled. "The second scariest day was moving to Colorado. At the time, it was move to Colorado with the SANY opportunity or starve. But in the end, it has been a tremendous opportunity for us. It has been quite a ride."
The "ride" is beginning to smooth out and Colorado is becoming home.
"We weren't prepared for the volume of business at the beginning, but we're putting the processes in place to deal with our growth and lay the foundation for even more growth in the future," Dicks said.
"If you would have asked me 14 years ago if I'd ever be a four-store dealership, I would have said ‘no way,'" Dicks said. "Now we're very confident in our chosen market and our chosen partner, SANY."
About ProSource Machinery
ProSource Machinery is a trusted source for new and used heavy machinery with locations in Denver, Colo., northern Colorado, Colorado Springs and Billings, Mont. It offers SANY, Rokbak, Hydrema and K-Tec equipment for sale or rent. It offers service and support for all those lines and more.
With more than 50 years of combined experience in the machinery industry, it offers one-stop shopping for equipment sales, service and rentals. It is proudly accredited as a member of the Association of Equipment Distributors (AED), Independent Equipment Dealers Association (IEDA) and the American Rental Association (ARA). CEG
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