Industry BeatCED Magazine, June 2010
Article Date: 06-01-2010
Copyright(C) 2010 Associated Equipment Distributors. All Rights Reserved.
Sumitomo (S.H.I.) Construction Co., Ltd. Acquires 100 Percent Ownership of LBX Company
Case Construction Equipment has sold its interest in the firm
Sumitomo (S.H.I.) Construction Machinery Co., Ltd. (SCM), a leading manufacturer of hydraulic crawler excavators headquartered in Tokyo, Japan, announced on May 10 that effective as of April 30, 2010, it has acquired full ownership of LBX Company (Lexington, Ky.) from Case Construction Equipment. The existing global supply alliance between SCM and CNH Global will remain intact, and the management team of LBX will remain in place.
LBX was originally formed as part of a global alliance between SCM and Case Corporation, and holds the manufacturing rights to SCM’s excavator products in North and Latin America. LBX has been marketing and selling Sumitomo excavators, forestry, material handling and demolition products under the Link-Belt excavator brand name since the company’s formation.
“This acquisition underscores SCM’s dedication to LBX and the Link-Belt excavator brand, and will contribute greatly to our success and expansion throughout North, South and Central America,” stated Robert Harvell, CEO of LBX Company. “Over the years, our long-term relationship with SCM has been built on a solid foundation of providing superior product quality, innovative designs, and dedicated commitment to our dealer network and customers.”
Fiat to Demerge, CNH International Construction Equipment Unveils its New Organization
Fiat recently announced plans to spin off CNH, along with IVECO, Industrial & Marine business of FPT Powertrain Technologies, from the company’s automobile-related activities. The demerged company will be named Fiat Industrial (FI) and will be listed on the Milan stock exchange.
In addition, CNH announced a new organizational structure aimed at strengthening construction equipment operations in Africa, the Middle East and CIS, Asia and Oceania.
The new construction organization, has its head office in Switzerland and maintains two brands and two separate distribution networks: Case Construction Equipment and New Holland Construction.
Fabrizio Cepollina, vice president construction equipment commercial operations, manages the construction brands, developing their commercial presence within CNH International markets.
Local, National Politicians Visit Lowe Plant
More than a dozen Wisconsin state and federal lawmakers and candidates visited Lowe Manufacturing on April 9 for a tour of its Viola, Wis., facility. In the photo, Richard Lowe, the company’s president, addresses (from far right) Dave Westlake, candidate for U.S .Senate, Ed Brooks, member of the State Assembly, Scott Paterick, Candidate for Governor, and Dave Ross, Mayor of the City of Superior and candidate for Lt. Governor, as well as staff from the Richland County Republicans. Also among the group (not pictured) was Dan Kapanke Republican candidate for U.S. House of Representatives.
Lowe notes that effective communication involves personal research and perspective. “Do your own thinking and do not just read scripted talking points,” he said. “The people you are talking to can smell a script immediately and do not pay much attention after that. But if you do your own credible research and develop your own comments you will get a lot more mileage. They appreciate hearing from you in a sincere manner that tells how a certain issue will affect you.”
Lowe, who serves on AEM’s board of directors and is chairman of its Small Enterprise Committee, added: “You can’t depend on other people to control things that affect your life because they aren’t going to do it in your interest,” he contends. “They will do it in their interest.”
CARB Considers Options for Increased Regulatory Flexibility
The California Air Resources Board (CARB) has begun the formal process to revise its strategy for the clean-up of on- and off-road diesel engines by directing staff to return in September with specific proposals to provide additional flexibility.
The board has asked staff to draft changes to the regulations that will mitigate the potential effects of an unfavorable economy on affected businesses, while keeping in mind the need to protect public health, meet federal clean air deadlines, and continue moving forward even through uncertain times. The board also directed staff to consider approaches to give credit to firms that have already complied with the regulations, and to examine the possibility of additional loans and incentive funding for the program.
CARB has already extended deadlines for off-road equipment owners through AB8 2X (signed into law in February 2009), including delayed compliance and credits for those who have reduced their fleet size or operating hours in response to the recession.
In addition, CARB will continue its program of financial support to help owners and operators of these trucks and equipment. Over $100 million in Proposition 1B funds alone have been allocated for cleaning up on-road diesel trucks through retrofits or replacement. Additional funds have been made available through the Carl Moyer Grant Program, along with loans via AB 118 and federal stimulus funds.
The Associated General Contractors of America reported that California officials have vastly overestimated emissions from the state’s off-road diesel fleet. “There is no scientific reason for the board to pursue its punishing off-road rule,” said Mike Kennedy, the association’s general counsel. Kennedy stated that without any rule, future emissions of nitrogen oxides will be 64 to 74 percent below the state’s emissions goals through 2025. Future emissions of particulate matter will be more than 30 percent below the state’s emissions goals through 2019.
Cat Streamlines Corporate Structure, Adjusts Responsibilities
Caterpillar Inc. has announced a number of executive changes and a streamlined corporate structure. Vice Chairman and CEO-Elect Doug Oberhelman is leading a team that is updating the company’s strategy, which was first introduced by Chairman and CEO Jim Owens in 2005.
Once he becomes CEO, effective July 1, 2010, Oberhelman will not be replaced as a group president, and thus the number of Caterpillar group presidents will be reduced from six to five. In addition, each of the remaining five group presidents will have divisions reporting to them that will provide greater clarity and structure so the group. As part of the new structure, the chief financial officer and chief legal officer will report directly to the chairman and CEO. Group President Ed Rapp will become CFO and will lead many of the company’s corporate services divisions. Jim Buda, vice president, general counsel and secretary, will also report directly to the chairman and CEO.
The new structure will consolidate the number of traditional corporate divisions, reducing the number from 32 to 29. These changes will also result in a number of new responsibilities for some vice presidents.
Group Presidents Rich Lavin and Steve Wunning will be responsible for leading Caterpillar’s machine businesses. They will lead divisions supporting machine product design and development, focused industry sales execution and a greater emphasis on quality and manufacturing excellence. Lavin will relocate to Asia later this year to provide senior executive leadership in this critical region of the world.
Group President Stu Levenick will be responsible for leading an enhanced focus on aggressively growing Caterpillar’s aftermarket parts and product support capabilities, its logistics business, remanufacturing and components, as well as its global marketing and distribution organizations, which directly support Caterpillar’s global dealer organization.
Group President Gerard Vittecoq will be responsible for Caterpillar’s growing energy and power systems business. This includes Caterpillar’s engine, turbines, gas and marine, electric power systems businesses and its wholly owned subsidiary, Progress Rail.
Group President and CFO Ed Rapp will be responsible for leading many of Caterpillar’s services divisions, which provide support and services across the entire Caterpillar enterprise.
News regarding more changes, including the retirements and shifting responsibilities among several vice presidents, is available at www.cat.com.
In the News
Thomas Skodack, regional sales manager for Sennebogen LLC lost his courageous battle with cancer on April 13, 2010. Skodack was a 30-year veteran of the material handling industry. “We mourn the passing of Tom Skodack who during his time with Sennebogen contributed greatly to our ongoing success and was instrumental in bringing us to where we are today,” said Constantino Lannes, president.
CNH has appointed Henrik Starup as vice president, Construction Equipment Europe. Reporting to James E. McCullough, president and CEO of CNH Construction Equipment Business, Starup is responsible for further developing and strengthening the Case Construction Equipment and the New Holland Construction brands positioning in the marketplace.
Terex has announced that Lowell Stout, senior product manager with the Terex Construction Americas business, will be retiring after a 45-year career in the construction industry. Stout was instrumental in the development of the Terex “B” series tractor loader backhoes and is a former president of Massey Ferguson Industrial Machinery Ltd, located in Atlanta, Ga.
Matt Norton, has a been appointed territory sales professional for the HiReach Group, based in King of Prussia, Pa. Norton will serve the Mid-Atlantic region.
Robert Burkhead was appointed general manager of the Lift Trucks division of Ring Power Corporation. Most recently Burkhead, a 17-year veteran of Ring Power and Six Sigma black belt, was the assistant governmental sales manager facilitating bids, contracts and sales to all government agencies in the state of Florida.
Byron Roberts has been appointed parts manager at RDO Equipment Co.in Tucson, Ariz.
GE Capital has grouped together its wholesale and retail construction equipment offerings under Kristi Webb, who has been named commercial leader of the equipment finance business. GE Capital is also making a significant investment into technology that will provide speedy decisions on credit applications, easy document preparation and same-day funding decisions for retail lease and loan transactions.
Martin Weissburg, has been appointed president of the Volvo Group’scustomer finance company, Volvo Financial Services (VFS). Weissburg, who is currently head of VFS’ Americas operations replaces Salvatore L Mauro, who has been appointed new head of the Volvo Group’s representation office in New York. Volvo Financial Services’ headquarters will be relocated from Montvale, N.J., to Greensboro, N.C., which is the center of the Volvo Group’s North American truck and financial services operations.
Paul Farrell has been appointed chief operating officer of the Bristol, Pa.-based Modern Group. Prior to his promotion, Farrell was president of Modern Power Systems. In August of 2009, Modern Group restructured its operations into a single integrated full-line distributor. The employee-owned company has 15 locations in Pennsylvania, New Jersey, Delaware and Maryland.
Andrew Satterley has been named JLG’s vice president -sales, marketing and customer support for the Asia Pacific region. Satterley will be based at the JLG office in Singapore, where he will oversee the company’s operations across Japan, China, India, Vietnam and Korea, as well as New Zealand, Malaysia, the Philippines and Australia. JLG Industries has appointed Bob Mules to the role of general manager Australia and New Zealand.
Doosan Portable Power has named Liftech Equipment Companies of Syracuse, N.Y., an authorized dealer of its entire line of mobile construction equipment. Liftech will offer Ingersoll Rand-branded line of air compressors, generators, light compaction equipment and lighting systems from its Buffalo and Rochester locations in western New York. Liftech Equipment Companies is a privately held company employing more than 170 people in seven locations.
Hugg and Hall Equipment Company, Little Rock, Ark., now represents the complete line of Volvo CE’s construction equipment at its branches in Little Rock, Camden, Fort Smith and Springdale.
Construction equipment dealership Jesco will now sell and service LeeBoy and Rosco’s full equipment line throughout central and northern New Jersey.
Fecon has appointed Vermeer Midwest as their dealer and service provider in Illinois, Indiana, eastern Missouri and the Detroit area of Michigan. Vermeer Midwest will offer Fecon’s proven line of Bull Hog mulchers, FTX track carriers and various other forestry attachments.
Separately, Fecon recently launched its new Web site, www.fecon.com. The site offers improvements in navigation, uniformity and appearance. It features a new translations option, as well as new sections on applications, news and events.
Boyd Company, LLC has completed the acquisition of the Cecil I. Walker Machinery Co., the Caterpillar equipment dealer in West Virginia and southeastern Ohio. Terms and details regarding the sale were not disclosed.
Ritchie Bros. Auctioneers recently opened its new Salt Lake City, Utah, auction site. This was the company’s first auction site in the state of Utah, the 22nd auction site in the U.S., and its 41st auction site globally.
UpRight Powered Access announced the UpRight name will be merged into the Snorkel brand, creating one single global manufacturer of aerial work platforms. Going forward, the company will market all products under the Snorkel banner only. Snorkel and UpRight Powered Access are both owned by The Tanfield Group Plc in the UK.
The Charles Machine Works, Inc.(CMW), manufacturer of Ditch Witch underground construction equipment, has acquired 100 percent ownership of HammerHead Trenchless Equipment, manufactured by Earth Tool Company, LLC of Oconomowoc, Wis. Hammerhead designs and manufactures piercing tools, bursting systems, pneumatic hammers and horizontal directional drill tooling.
H&E Equipment Services announced the launch of their new Web site found at www.HE-equipment.com. The new site makes it easier for users to view and compare new and used equipment, along with the other online services H&E now offers. An upgraded used equipment section provides quick access to detailed information, multiple photos and warranty information on every featured unit.
WesternOne Equity Income Fund announced the completion by one of its indirect subsidiaries of the purchase of the assets of On Site Equipment. On Site Equipmentis an aerial and material-handling equipment rentals, sales, service and transport business with its head office in Calgary and branches in Lethbridge, Red Deer and Edmonton.
Sunbelt Rentals opened a Scaffold Services location in Pearl, Miss. The new location expands the company’s service area in the southeastern U.S., extending delivery options to northern Louisiana and southern Arkansas. Sunbelt Rentals’ Scaffold Services Specialty Division provides rental solutions for applications requiring access to new or existing structures and offers design, erection and dismantling services upon request.
Volvo Rents’ franchise owners named Genie Industries their Vendor of the Year during the eighth annual Volvo Rents’ Franchise Convention.
JCB named Yale Lift Trucks of Florida and Georgia as a new full-line dealer. Yale will add the full range of JCB construction equipment to its line-up. The new division will be named JCB of Florida and South Georgia and will remain under the same ownership and management as Yale Lift Trucks of Florida and Georgia. The company will service JCB customers from their four existing locations in Tampa, Orlando, Jacksonville, Fla., and Tifton, Ga.
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