Industry BeatCED Magazine, March 2010
Article Date: 03-01-2010
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JCB and Volvo Construction Equipment to Partner
Framework agreement to impact skid-steer and compact tracked loaders
JCB and Volvo Construction Equipment (Volvo CE) have entered into a framework agreement under which they will cooperate on the engineering and manufacturing of skid-steer loader and compact tracked loader products for distribution under their respective brands and through their respective global dealer networks.
The first Volvo branded machines will be in production at JCB’s Savannah, Ga., facility by year-end 2010. Volvo CE will then transition skid-steer loader models over time from its Pederneiras facility in Brazil.
“This agreement will allow us to combine forces in this key product area enabling both brands to compete more effectively,” said John Patterson, deputy chairman of JCB.
“Volvo customers will benefit from a wider range of models that maintain the high level of product safety and functionality that they expect,” said Olof Persson, president of Volvo Construction Equipment.
U.S.and Canada Reach Agreement on Buy American
Canada and the U.S. have reached an agreement that would allow Canadian companies to participate in U.S. infrastructure projects financed under the American Recovery and Reinvestment Act (Recovery Act).
“Preserving and creating jobs is the Canadian government’s top priority,” said Peter Van Loan, Canada’s Minister of International Trade. “Our government stood up for Canadian businesses and workers in resolving this issue with our U.S. partners.”
Under the agreement, Canadian suppliers will be provided access to state and local public works projects under the Recovery Act in a range of areas, including programs of the U.S. Department of Energy, the U.S. Department of Housing and Urban Development and the Environmental Protection Agency. These are areas of procurement where Canadian companies have traditionally been suppliers or sub-contractors in the U.S.
The U.S. and Canada are the world’s largest trading partners with the equivalent of $1.5 billion in goods traded daily. About 300,000 people cross the shared border every day.
Under the provisions of the World Trade Organization Agreement on Government Procurement (GPA), Canada and the U.S. have agreed to offer each other permanent market access at the sub-federal level. This means that Canadian suppliers will have guaranteed access to U.S. sub-federal procurement and U.S. suppliers will have guaranteed access to provincial procurement in accordance with undertakings under the GPA.
As some of the measures announced are temporary, Canada and the U.S. have agreed to begin discussions within the year to explore the possibility of additional reciprocal access to procurement markets on a permanent basis. In this spirit, both countries have also agreed to establish a fast-track consultation process should similar Buy American provisions be applied to future funding programs.
Both countries must complete their respective approval processes before the agreement can come into force.
Terex Sells Product Lines, Keeps Focus on AWP Core Products
The Aerial Work Platforms (AWP) segment of Terex Corporation has exited both the generator and the power buggy business as part of an overall strategic plan to focus on its core aerial equipment business. The Terex generator product line was sold to Cummins Power Generation. The power buggy product line was sold to Indy Equipment, a premier equipment dealer based in Independence, Ohio. The amounts of the sales were not disclosed.
“At this point in time, it makes sense for Terex AWP to focus on our core products, such as Genie aerial lifts, telehandlers and light towers,” said Brad Allen, global general manager of Scissors, Portables and Light Towers, Terex AWP.
Warranty support for Cummins branded generator units will begin immediately. Warranty support for Terex branded units will continue to the end of 2010. Parts support will be supplied by Terex AWP for 180 days from date of sale, at which point Cummins will assume parts support ownership. Parts and warranty support for all units transitioned to Indy Equipment effective Feb.15, 2010.
Volvo CE and VT LeeBoy Finalize Strategic Alliance
Volvo Construction Equipment (Volvo CE) and VT LeeBoy have finalized a strategic alliance agreement for LeeBoy to supply certain pavers and road wideners to Volvo dealers under the Blaw-Knox brand. LeeBoy will also take full responsibility for product support of these machines, including the existing field population.
The five-year brand licensing agreement with Volvo CE calls for distribution through Volvo road machinery dealers.
According to Göran Lindgren, president of Volvo CE North America, the agreement will enable Volvo to concentrate its road machinery technical and engineering expertise and production operations on high-volume Volvo paving, compaction and motor grader equipment. “This strong relationship fosters other growth opportunities for the Blaw-Knox brand, which will give Volvo Construction Equipment dealers in North America, Australia and New Zealand access to the broadest product offering of any manufacturer in the asphalt paving industry.”
Production of upgraded and redesigned Blaw-Knox road wideners (models RW100 and RW195D) and pavers (models PF150 and PF161) is expected to begin within the next few months at the LeeBoy production facilities in Lincolnton, N.C. Volvo CE acquired the Blaw-Knox product line in its purchase of the Ingersoll Rand road machinery business in 2007.
No Texting while Driving for CMV Drivers
On Jan. 26, U.S Transportation Secretary Ray LaHood announced federal guidance to expressly prohibit texting by drivers of commercial vehicles such as large trucks and buses. The prohibition is effective immediately and is the latest in a series of actions taken by the DOT to combat distracted driving since the Secretary convened a national summit on the issue last September.
“We want the drivers of big rigs and buses and those who share the roads with them to be safe,” said Secretary LaHood. “This is an important safety step and we will be taking more to eliminate the threat of distracted driving.”
The action is the result of the Department’s interpretation of standing rules. Truck and bus drivers who text while driving commercial vehicles may be subject to civil or criminal penalties of up to $2,750.
Federal Motor Carrier Safety Administration (FMCSA) research shows that drivers who send and receive text messages take their eyes off the road for an average of 4.6 seconds out of every 6 seconds while texting. At 55 miles per hour, this means that the driver is traveling the length of a football field, including the end zones, without looking at the road. Drivers who text while driving are more than 20 times more likely to get in an accident than non-distracted drivers. Because of the safety risks associated with the use of electronic devices while driving, FMCSA is also working on additional regulatory measures that will be announced in the coming months.
The Secretary made the announcement during the September 2009 Distracted Driving Summit.
In the News
Coble Trench Safety, Inc, a Greensboro-based company specializing in the rental and sales of trench and traffic safety equipment, as well as OSHA-compliant training classes, has opened its 10th branch location in Atlanta, Ga.
Bigge Equipment Company has opened a new facility in Houston, Texas, and is targeting rental and sales of rough terrain, crawler and tower cranes in the Gulf Coast region.
RDO Equipment Co. recently opened a new store in Williston, N.D. Williston is located in Northwest North Dakota. Previously, customers near Williston, N.D. (including an expansive oil mining facility) were serviced from Minot, N.D., nearly three hours away. The Williston store will feature sales, parts, and service functionality. It will also be a service outlet for Vermeer Sales & Service and RDO Truck Center.
Cervus Equipment Corporation, through a subsidiary, has acquired a 20 percent partnership interest in Maple Farm Equipment Partnership, which offers official John Deere agricultural equipment, parts and service in the provinces of Saskatchewan and Manitoba. The value of the acquisition is approximately $3.3 million. As consideration for the partnership interest, Cervus sold the business and assets of its Moosomin, Saskatchewan and Russell, Manitoba dealerships to Maple.
Doosan Infracore Portable Power has appointed Air Compressor Sales of Macon, Ga., as an authorized dealer of its Ingersoll Rand-branded line of portable air compressors, mobile generators, light compaction equipment and lighting systems for central Georgia.
CEAttachments, Inc., a global supplier of EDGE attachments for any brand or model compact equipment, announces the launch of a new Web site, www.ceattach-ments.com. The new site has more information, and a new search function enables users to locate products by name, part number or key words. A new resource library offers photos, spec sheets, literature and videos of attachments in action.
Gougler Industries, parent company to Kent Demolition Tools and Furukawa Rock Drill, will now be known as Furukawa Rock Drill/USA. The move is designed to increase brand awareness for the company.
Scaniaand construction and industrial equipment manufacturer Terex, based in North America, have signed a long-term agreement for Scania to supply engines for some vehicles and other heavy equipment manufactured and sold by Terex, beginning in 2011.
Terex Aerial Work Platforms (AWP) has added 16 Terex Service Centers and more than 200 field and service technicians throughout the U.S. The facilities and technicians will be equipped to provide maintenance and repair services for all makes and models of aerial, cranes, telehandlers, utility equipment, winches, service bodies and lighting. In addition, by fall 2010, parts for Genie, Terex utilities and cranes will be available through the Terex Distribution Center East. The 500,000 square foot distribution center is located in Southaven, Miss., just outside of Memphis, Tenn. While North Bend, Wash., will remain the main parts hub for Genie parts, the addition of the new location will provide savings on freight and reduce the distances to which parts are shipped around the country.
Business technology company XAPT has forged a strategic partnership with Accruit, a provider of 1031 like-kind exchange (LKE) solutions, on a comprehensive integration of the companies’ respective LKE and ERP solutions. Customer benefits will include streamlined data transfer to Accruit, integrated depreciation tracking per asset, minimization of LKE program implementation, and profitability tracking on an asset-by-asset basis.
Sennebogen LLC has opened a new 54,000 square foot American headquarters in Stanley, N.C., on a 32- acre site close to Charlotte Douglas International Airport. The headquarters, parts and training facility has been designed to accommodate continued growth as the company expands sales into new sectors.
Caterpillar will join the FutureGen Alliance, a public-private partnership established to build a first-of-its-kind coal-fired, near-zero emissions power plant in Mattoon, Ill. The FutureGen facility is designed to be the cleanest coal burning plant in the world and will integrate advanced technologies for coal gasification, electricity production, emissions control, carbon dioxide (CO(2)) capture and permanent storage and hydrogen production on a commercial scale.
Caterpillar also announced that its Administration Building has been awarded LEED-EB O+M (Leadership in Energy and Environmental Design for Existing Buildings: Operations and Maintenance) Gold certification from the U.S. Green Building Council (USGBC). The Cat Financial Center in Nashville, Tenn., received LEED-EB certification in April of 2009.
Cummins Inc. announced on Jan. 21 the initial results of a Tier 4 Interim/Stage IIIB field test program after reaching a cumulative 20,000 hours of testing with equipment operators. The testing confirmed up to 5 percent higher fuel efficiency and improved productivity, with equipment operating on commercial service repowered with Cummins’ integrated air-intake-to-exhaust aftertreatment system.
Although power ratings were identical to those of the Tier 3 installations they replaced, the Tier 4 Interim engines benefit from the faster power-and-torque response provided by the Cummins VGT(TM) Turbocharger and enhanced fuel systems. The Tier 4 Interim repowered equipment on the field tests typically achieved 98 or 99 percent uptime, equivalent to Tier 3 levels of in-service reliability. For more information, visit www.cummins.com.
Masahiro Sakane, chairman of Komatsu Ltd., the parent company of Komatsu America Corp., was named one of the best-performing CEOs in the world, according to a recent Harvard Business Review article. Sakane served as president and CEO of Komatsu Ltd. from June 2001 to June 2007. CEOs on the list were selected from nearly 2,000 CEOs of large public companies worldwide. Three metrics were used in determining the success of the CEOs: country-adjusted total shareholder return, industry-adjusted shareholder return, and the change in equity market capitalization for the CEOs entire tenure. Sakane ranked 17th among his worldwide peers.
Will Buddin has joined Godwin Pumps as branch manager for the company-owned Raleigh, N.C.-based rental branch.
Rotobrush International LLC, a provider of indoor air quality and energy efficiency solutions has appointed Lane Jeffryes, a 15-year Lennox veteran, as its new CEO and president.
Patrick Buckley, engineering services manager of the Power Systems division at Foley, Incorporated announced that Hans J. Egger has joined the company as a project manager for the Power Systems Engineering Team.
Robert F. DeFreitas, former publisher of Construction Equipment magazine, died Friday, Jan. 29, 2010, at his home in Barrington, Ill. He was 85. Bob served on the Board of Directors of AEM-predecessor group CIMA and as CIMA Treasurer, as well as promotion committee chairman for the 1987 and 1993 CONEXPO international expositions.
Wynne Systems, Inc., an international provider of enterprise software for the equipment and rental industries, today announced that Carole Cossu has joined the company’s Antwerp, Belgium, operations as business development manager. Cossu will use her extensive experience with rental operations and technology management to introduce rental companies to the benefits of integrated software solutions. She will be responsible for expanding the client base of Wynne’s RentalMan and InfoManager software suites in Europe, the Middle East and Africa (EMEA). Wynne Systems, Inc. is an international software company with locations in Irvine, Calif., Indianapolis, Ind., and Antwerp, Belgium. The company has been continuously selected as an IBM Premier Business Partner for more than 10 years.
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