Industry BeatCED Magazine, August 2010
Article Date: 08-01-2010
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AED Chairman Testifies for the Industry at House Committees
Last month Dennis Vander Molen told Congressmen how depreciation bonus and water infrastructure funding are core to CE’s recovery.
AED 2010 National Chairman Dennis Vander Molen, president and general manager of Vermeer MidSouth, testified in July before two U.S. House of Representatives committees on key parts of the equipment industry recovery agenda.
On July 14, Vander Molen testified before the House Small Business Committee about the importance of renewing the depreciation bonus. This capital investment incentive, which expired at the end of 2009, allows businesses to immediately write off 50 percent of the cost of depreciable property. AED is leading a coalition that is urging Congress to reinstate the temporary tax incentive for at least one year to encourage business purchasing.
In his remarks, Vander Molen told committee members that reinstating the depreciation bonus “will encourage companies to invest in newer, more efficient equipment, help the construction equipment industry recover from its current depression, promote broader economic recovery, improve cash flow for large and small companies, and, arguably most important, create well-paying jobs in the near term.”
Vander Molen appeared before the House Transportation & Infrastructure Committee’s Subcommittee on Water Resources & Environment July 15 and spoke about the economic benefits of water infrastructure investment. AED estimates that 12 cents of each dollar spent to build sewers and drinking water systems are used by contractors to buy, rent, and service equipment.
“Our nation faces an unparalleled infrastructure crisis. Immediate and aggressive congressional action is necessary to ensure that our water infrastructure does not deteriorate further and that states and localities have the resources they need to address the crisis. The problem will only be more expensive to solve as time goes on,” Vander Molen told the subcommittee members.
Rush Enterprises, Inc. Sells Its Deere Construction Equipment Business
Doggett Heavy Machinery Services is the buyer in a Texas-territory deal expected to close by third quarter.
Rush Enterprises, Inc. has announced that it signed a definitive asset purchase agreement to sell its John Deere construction equipment business, including its Rush Equipment Centers in Houston and Beaumont, Texas, to Doggett Heavy Machinery Services, LLC. The purchase price for the Rush Equipment Centers is estimated to be approximately $37 million for assets and goodwill. The transaction is expected to close in the third quarter.
“With a tremendous group of employees to whom I am extremely grateful, we successfully operated our John Deere construction equipment dealer in Houston for over 12 years,” said W. M. “Rusty” Rush, president and chief executive officer of Rush Enterprises, Inc. “In the process, I believe that we proved that we can apply our organizational knowledge of serving commercial customers to distribute products other than commercial vehicles. We will continue to evaluate opportunities to re-enter the construction equipment dealership business in areas of the country outside of Houston and adjacent areas of southeast Texas, where we will be precluded from doing so for several years,” Rush concluded.
Rush Enterprises, Inc. owns and operates the largest network of commercial vehicle dealerships in the U.S., representing truck and bus manufacturers. Doggett Heavy Machinery Services, founded in 2005, is the exclusive John Deere Construction Dealership for South Texas. Other lines include Dynapac, Harlo Forklifts, JLG Forklifts, and Johnston Sweepers.
ITT Signs Agreement to Purchase Godwin Pumps
ITT Corp., a global high-technology engineering and manufacturing company, has agreed to purchase privately held Godwin Pumps for $585 million. Godwin (Bridgeport, N.J.) is a supplier of automatic self-priming portable pumps used in the growing markets for drainage pump rental, services and sales serving the global industrial, construction, mining, municipal, oil and gas segments. The transaction is expected to close in the third quarter of 2010, pending customary regulatory approvals.
“This acquisition is another example of ITT’s strategy to expand our core businesses and build on our strong global positions in water, wastewater and industrial process,” said Gretchen McClain, president of ITT’s Fluid and Motion Control group. “Godwin’s business is a great complement to our existing fluid technology portfolio, and is expected to establish ITT among the leaders in the growing and profitable $3 billion global market for dewatering pumps and rental services.”
Wacker Neuson and Cat Form Strategic Alliance for Mini Excavators
Wacker Neuson SE and Caterpillar Inc. have signed an agreement that will enlist Wacker Neuson to design and manufacture Caterpillar’s mini-excavators up to 3 tons. The initial term of the agreement is 20 years.
The long-term strategic alliance includes the development and manufacture of up to seven mini-excavator models with an operating weight up to 3 tons. Caterpillar currently offers three models in this size range. The units will be designed to Caterpillar’s specifications and brand requirements at Wacker Neuson’s production plant in Linz, Austria. The mini-excavators will be distributed and supported via Caterpillar’s worldwide global dealer network, with the exception of Japan. All Caterpillar models will be clearly differentiated from comparable Wacker Neuson models in the same product range. The partnership will enable both parties to spread the cost of developing and manufacturing across higher volumes and Caterpillar to increase the number of models offered to its distribution.
By concentrating production of selected products at Wacker Neuson’s mini-excavator production in Linz, Austria, the two companies will leverage joint economies of scale in the manufacturing and development process, while supplying their respective, complementary sales channels with differentiated, competitive machines.
In the News
Bobby Morrishas joined Scott Powerline and Utility Equipment as a sales account manager at its McDonough, Ga., operation. He will concentrate on the Elliott HiReach line of aerials in Arkansas, Louisiana, Mississippi and Georgia. Terry Scardasis has been promoted to parts manager of the facility.
RDO Equipment Co. has hired Daryl Shelton as general manager of the Fort Worth and Irving, Texas, locations. He has over 15 years experience in the equipment industry, including 10 years with John Deere Company (Dallas branch), where he served in roles as product marketing manager, territory manager, dealer development manager, and wholesale finance manager.
Herk & Associates, nationwide recruiters for equipment dealerships, manufacturers and rental companies, has opened a new west coast office at One Beach Street, Suite 301, San Francisco, Calif. Ben Carapetyan, vice president of operations and lead staffing specialist, will oversee and manage California operations.
Strategic Feedback has named Dexter Implement Co., located in Dexter, Mo., the No. 1 Service Dealer and Looney Implement Co., based in Hughes, Ark., the No. 1 Parts Dealer of the Year for 2009. The two companies’ parts and service departments achieved the highest overall ratings among nearly 1,000 construction and agricultural dealerships, based on their customers’ willingness to recommend their dealership to others. Results are gathered through Strategic Feedback’s SatisfYd program and survey process.
Kristin Rockwood, director of sales for Strategic Feedback, presented crystal awards to Dexter Implement Co. and Looney Implement Co. and also recognized the next top 10 performing dealers in 2009 with Plaques of Excellence. Service department winners included Arends Brothers LLC, Melvin, Ill.; RDO Equipment Co., Poway, Calif; General Equipment, McMinnville, Tenn.; Nortrax, Inc., Vandalia, Ohio; and Flint Equipment, Albany, Ga.
Parts department winners included Bentz Equipment, Belle Fourche, S.D.; Nortrax, Inc., West Melbourne, Fla.; Flint Equipment, Tallahassee, Fla.; Cross Brothers Implement, New Holland, Ill. and Nortrax Inc., Orlando, Fla.
Volvo Financial Services has appointed Leo Hawkes president of its Region the Americas operations, with responsibility for the North America, Latin America and South Africa markets. Hawkes replaces Martin Weissburg, who has been appointed president of Volvo Financial Services global operations.
JLG Industries, Inc., an Oshkosh Corporation company, has promoted Scott Milligan to the position of vice president, customer support and aftermarket development for the Americas region.
The Manitowoc Company, Inc. has appointed Roy V. Armes and Donald M. Condon, Jr. to its board of directors. Armes currently serves as chairman, president and CEO of Cooper Tire & Rubber Company. Since 2006, Condon has served as senior vice president, Olefins and corporate business development for Westlake Chemical Corporation.
The SMS Rents equipment and tools rental store in Guelph, Ontario, has relocated to new, larger facilities at 45 Lewis Road, near the Hanlon Parkway off Speedvale. The staff at the Guelph location includes (from left to right) Kevin Roberts, Jeff Minten, Brian Roche, Jason Harding, Dave Peach, Matt Yake, Anthony Rowe. SMS Rents in Canada has more than 14 locations in Ontario and Quebec.
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