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Construction Equipment Distribution magazine is published by the Associated Equipment Distributors, a nonprofit trade association founded in 1919, whose membership is primarily comprised of the leading equipment dealerships and rental companies in the U.S. and Canada. AED membership also includes equipment manufacturers and industry-service firms. CED magazine has been published continuously since 1920. Associated Equipment Distributors
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Industry Beat

CED Magazine, December 2009

Article Date: 12-01-2009
Copyright(C) 2009 Associated Equipment Distributors. All Rights Reserved.

Foley Equipment Acquires Martin Tractor Co.
Martin was the oldest Caterpillar dealership in the country.

Foley Equipment Co. acquired Martin Tractor Co., effective Nov. 2, 2009. With this acquisition, Foley has added 50 counties and 17 locations and is now the Caterpillar and Challenger dealership for all of Kansas except Doniphan, Atchison, Leavenworth, Wyandotte, Johnson, and Cherokee counties. Foley is also a dealer for AGCO, AgChem and Trimble as well as a number of other manufacturers. Terms of the transaction were not disclosed. Together the two dealers have a combined total of 165 years of equipment experience.

“We are excited to have closed the acquisition in order to begin collaborating resources to deliver even better and more comprehensive customer service throughout Kansas,” said Ann Konecny, president and CEO of Foley Equipment Company.

Martin Tractor originated in 1911 when brothers Fred P. Martin and Charles H. Martin purchased a foundry and machine shop in Ottawa. The business became a dealer for Holt Manufacturing in 1920. Martin Tractor sold the first track-type tractor in Kansas.

When Holt merged with Best Co. to form Caterpillar Inc. in 1925, Martin Tractor carried the new company’s products, making it the second-oldest Caterpillar dealership in the world. Martin Tractor opened a Topeka location in 1928, which became the home office in 1935.

Study Details Employment Losses in the Distribution Channel

A study conducted
by IHS Global Insights for AED and the Associated Equipment Manufacturers (AEM) details job losses not only among manufacturers, but also within the distribution channel and in the maintenance/repair sector. Within distribution, an estimated 142,500 jobs are expected to be lost over the peak-to-trough basis, or roughly 50 percent of employees. Within the maintenance/repair sector, 30 percent of jobs will be lost. Equipment manufacturers will lose 56 percent of their workforce, peak to trough.

On a state-by-state basis, California and Texas lead the way in job losses, each having lost more than 53,000 jobs. However, when job losses as a percentage of total employment are considered, smaller states are hurting as well. In Wyoming and West Virginia, for example, the job losses in manufacturing, distribution and repair represent more than 1 percent of these states’ total employment loss.

Peak-to-Trough Employment Loss
Top Five State for Total Employment Loss
California 53,368
Texas  53,020
Florida 33,063
Illinois 32,974
Pennsylvania 25,816

Top Five States for Employment Loss
As a % of 2006 Total Employment
Wyoming 1.17%
West Virginia 1.01%
North Dakota .86%
Iowa .69%
Kentucky .64%

State-by-state analysis and information available online from can help dealers show their elected representatives the importance of getting the construction industry back to work.

DOTs Report Insufficient Funding to Fix Deficient, Obsolete Bridges

Although a shockingly high number of bridges in the U.S. remain sub-standard, highway and bridge engineers are optimistic about reducing the number of structurally deficient (SD) and functionally obsolete (FO) bridges. The information comes from an annual survey of highway professionals in 50 state Departments of Transportation and the District of Columbia conducted by Better Roads magazine.

Fourteen percent of all interstate and state bridges are considered functionally obsolete, and 6.8 percent are rated as structurally deficient, with a combined SD/FO total of 20.7 percent, the Better Roads study finds. Of all the nation’s city/county/township bridges, 10.7 percent are functionally obsolete, and 14.5 percent are structurally deficient, with a combined SD/FO total of 25.2 percent.

Funding availability is one of the biggest challenges in lowering the number of states’ deficient bridges and the American Reinvestment and Recovery Act (ARRA) has provided some relief and has increased the level of funding for bridges. However, Department of Transportation personnel surveyed also report that the actual results range from having no effect or a minimal effect to a modest or significant impact.

The complete bridge inventory appears in the November 2009 issue of Better Roads and at

Paladin Construction Group Formed, Announces Program to Help Dealers, Contractors Find Stimulus Jobs

Paladin Brands,
Dexter, Mich., has announced the joining of its Paladin Light Construction and Paladin Heavy Construction companies to form Paladin Construction Group. The new company says it can better address the attachment trends today that are being driven by contractors and farmers serving a wide variety of construction, agriculture and related market segments in North America and globally. Paladin Construction Group provides customers with eight leading brands of couplers and attachments – many with histories dating back 30 to 50 years. These brands are: Bradco, JRB, Sweepster, C&P, CustomWorks, FFC, Harley and McMillen. Paladin Brands also includes Genesis, Jewell and Pengo.

As part of the effort to announce the new Paladin Construction Group, the company has implemented a long-term, contractor-focused support program named Back 2 Work With Paladin. The program helps contractors and dealer/rental companies identify and locate current and soon-to-be-released projects related to where ARRA funds are most targeted – at the county level and specific market segments such as roads and bridges, aviation, national parks, energy, water and others. In addition, Paladin Construction Group is offering contractors a break on new attachment costs with a Contractor Rebate worth up to $500 when they purchase one or more Paladin brand attachments. For details, visit  

In the News

Marty Rodrigues has joined the Closner Equipment Co. as territory manager. Closner has locations in Schertz and Manor, Texas.

San Diego-based Hawthorne Cat has promoted Brian Verhoeven to the position of chief financial officer.

Bill Connolly
has been named product support sales manager for Foley Inc.’s On Highway Division and Jason Frommer has been named product support sales representative. Duarte “Dewey” Cardoso has been promoted to rental account manager. Connolly will lead Foley’s On Highway parts and service business. Frommer will serve the counties of Mercer, Monmouth, Passaic, Somerset, Union and Warren. Foley Inc. is transitioning from an engine product support company to a full vehicle sales and service company, with the introduction of the new Caterpillar Vocational Truck.

Based in Piscataway, N.J., Foley is the Caterpillar dealer in north and central Jersey.

has recently announced the appointment of Tony Brown as their new national sales manager.

Alan Blake
has been appointed chief executive officer of JCB effective Jan. 1, 2010 – he will report to JCB Chairman, Sir Anthony Bamford. Replacing Matthew Taylor, Blake is currently chief operating officer and has been a senior director at JCB for 20 years. A new structure has been put in place to promote the next generation of executive management, with Tim Burnhope becoming group managing director for product development and commercial operations and Graeme Macdonald becoming group managing director, business operations.

David Bell
, who is currently managing director of JCB sales, has been named chief development officer with particular responsibility for JCB’s future development in China and Brazil, where the company has plants.

Erb Equipment Companies,
a John Deere Construction and Forestry dealer, has acquired K & W Equipment Co. locations in Evansville, Ind., and Owensboro, Ky., K & W Equipment will now go under the banner of Erb Equipment Co. and most of K & W’s employees including Store Manager Dick Christ, have joined the Erb team.

Rocky Mountain Dealerships Inc.
completed the acquisition of Enns Agri and Mayor Equipment, the 11th and 12th locations added to Rocky Mountain since the initial public offering in December 2007. Rocky Mountain represents one of Canada’s largest agriculture and construction equipment dealerships and with these acquisitions will operate a total of 24 dealership branches throughout Alberta, Saskatchewan and Manitoba.

New Jersey-based Kiely Equipment Co. will now represent Underground Tools Inc. in New Jersey, New York, Eastern Pennsylvania, Maryland, and Delaware. Underground Tools Inc. manufactures a wide range of wear parts, specializing in trencher and horizontal directional drilling ground engaging parts.

Central Equipment Co.
will now distribute a full line of Terex articulated and rigid trucks to its customers in Pocatello, Jerome and Heyburn, Idaho.

Terex Corp.
has appointmented Jacob Thomas as senior vice president with responsibility for product development, marketing and the Terex business system.

has added three Caterpillar dealers to its network: Ohio CAT, based in Cleveland, Ohio; Mustang CAT, in Houston, Texas; and Holt Cat, San Antonio, Texas.

Equipment Web Services
has been named the exclusive Internet marketing services provider for the Sellick Equipment Limited dealer network.

Randall (“Randy”) Amerine
has joined SmartEquip’s executive management team as senior vice president of sales and marketing.

Sennebogen LLC
has launched Sennebogen Capital, the market brand for its equipment financing program, provided in alliance with De Lage Landen Financial Services.

Doosan Infracore Portable Power
has named Ally Equipment of Denver, Colo., an authorized dealer of its Ingersoll Rand-branded line of mobile generators and lighting systems.

Highway Equipment & Supply Co.
of Harrisburg, Pa., has been named an authorized dealer of its Ingersoll Rand-branded line of air compressors, generators, light compaction equipment and lighting systems.

a software developer of equipment distributor business systems, recently honored Jay Spencer, vice president of development and Thom Sheldon, development testing specialist for 30 years of dedicated service.

Wynne Systems, Inc.
has announced that Toby Bigney has joined the company as senior technical writer. She holds senior responsibility for all user assistance for the company’s RentalMan and InfoManager suites, and is based in Irvine, Calif.
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