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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, September 2010

Article Date: 09-01-2010
Copyright(C) 2010 Associated Equipment Distributors. All Rights Reserved.

Drinking Water SRF Reauthorization Bill Unanimously Approved by House

But legislation stalls in the Senate.

Right before adjourning for
August congressional recess, the House by voice vote passed the Assistance, Quality and Affordability (AQUA) Act (HR 5320), which would reauthorize and increase funding for the Drinking Water State Revolving Fund (SRF). The legislation approves $4.8 billion over three years for the drinking water program.
The Drinking Water SRF has not been reauthorized in 14 years. AED estimates that the legislation would translate to more than $576 million in potential market opportunity for equipment distributors. The House already enacted a Clean Water SRF reauthorization bill early last spring.
Meanwhile, bipartisan legislation to reauthorize both the Drinking Water SRF and the Clean Water SRF remains stalled in the Senate. The Water Infrastructure Financing Act (S. 1005) would authorize $14.7 billion for the Drinking Water SRF and $20 billion for the Clean Water SRF over the next five years.
Unfortunately, S. 1005 has been held up on the Senate floor due to the Davis-Bacon provision and issues related to the formula used to determine the allocation of SRF funding between the states. AED encourages members to urge their senators to enact water infrastructure legislation this year.
Caterpillar Goes into Expansion Mode

Caterpillar Inc. recently
announced a number of expansions and acquisitions including the construction of a manufacturing and assembly facility in Winston-Salem, N.C., that will provide increased capacity for the company’s global mining operations. The company plans to construct an 850,000 square foot state-of-the-art manufacturing facility for the machining, assembly, test and painting of axle assemblies for large mining machines.
The Compact Construction Equipment operations located in Sanford, N. C., will also expand with a 270,000-square-foot addition that will provide increased logistics and fabrications capacity. A new engineering design center will open in Rapid City, S.D. and will be known as the Black Hills Engineering Design Center.
Caterpillar Emissions Solutions signed a definitive agreement to purchase CleanAIR Systems, Inc. Upon completion of the transaction, CleanAIR Systems will become a wholly owned subsidiary of Caterpillar Inc. within the Customer Services Support Division.  CleanAIR Systems, Santa Fe, N.M., designs and manufactures customized stationary aftertreatment solutions for internal combustion engines. The broad product line includes California Air Resources Board (CARB) verified particulate filters, oxidation catalysts and silencers as well as an innovative hybrid selective-catalytic-reduction/particulate-filter/silencer system.
Caterpillar Inc. has also acquired all assets of Underground Imaging Technologies, Inc. (UIT), an advanced geophysical services company and technology developer based in Latham, N.Y. The acquisition will give Caterpillar the capability to provide geophysical services, specializing in providing three-dimensional representations of underground utilities and other targets.
“UIT’s geophysical expertise and advanced technologies will add dynamic new subsurface infrastructure capabilities to our Connected Worksite offerings,” said Hans Haefeli, vice president with responsibility for the Caterpillar Advanced Systems Division. “But most important, this service provides detailed information that enables design engineers and contractors to proceed on underground projects with a clearer picture of the subsurface environment, contributing to both project cost savings and increased safety on the worksite.”
Manufacturers See Dramatic Improvements in Results

The second quarter of 2010 brought dramatically improved results for many heavy equipment manufacturers and related suppliers.

The Wacker Neuson Group
managed to increase Q2 revenue and post positive earnings once again. In addition, the Group reports a healthy revival of order intake. Order backlog for compact equipment at the end of June 2010 was 350 percent higher than the corresponding figure for the same period last year. The company cited strong demand for light equipment in the U.S., Europe and Asia.
Manitou posted a 40 percent increase in revenue over Q1 and also year-over year, but cautioned it still did not see order volume pick-up signals, either for construction rental, agriculture expansion or dealers re-stocking.
Caterpillar Inc. reported a second-quarter profit of $1.09 per share, an increase of $0.49 per share. Profit of $707 million was 91 percent higher than second-quarter 2009. Sales and revenues of $10.409 billion were up 31 percent from $7.975 billion in the second quarter of 2009. The company also raised its sales and profit expectations for 2010. “We are very positive about the longer term prospects for many of the industries we serve, like mining, energy, infrastructure, electric power and rail,” said Caterpillar CEO Doug Oberhelman.
Oshkosh Corp. reported fiscal 2010 third quarter net sales of $2.44 billion and net income of $211.2 million, or $2.31 per share. This compares with net sales of $1.22 billion and a loss from continuing operations of $21.2 million, in the prior year third quarter. The access equipment segment experienced increases in sales in all major markets, with the largest dollar increases in North America and Latin America. While North American sales remain significantly lower than historical levels due to weak construction markets and tight credit, sales have begun to recover from historic lows.
Cummins Inc. reported its highest quarterly earnings as a percentage of sales in more than 25 years and the company increased its profit projections for the year. Continued productivity improvements in the company’s manufacturing operations, as well as strong performance in international markets, drove significant year-over-year gains across all the company’s business segments. The company’s non- U.S. market sales rose 51 percent in the second quarter compared to a year ago. Sales outside the U.S. accounted for 64 percent of the company’s revenue in the quarter.
Gorman-Rupp increased sales 5 percent in the second quarter. Sales were positively impacted by the early stages of economic recovery and due primarily to increases in sales to the international fire protection market, custom pump applications and the construction and rental market; they were partially offset by decreases in sales to the OEM and the domestic fire protection markets.
CNH net sales increased 10.7 percent in the quarter, while operating profit improved 105 percent to $330 million. The construction equipment segment posted its first profit since 2008. Global industry unit volume of construction equipment rose 60 percent in the second quarter compared to the prior year, with light equipment up 38 percent and heavy equipment up 82 percent. North American demand was up 13 percent, with heavy equipment volumes up 8 percent and light equipment rising 15 percent. The CNH outlook for the global construction equipment markets is for an increase of 25 to 30 percent in 2010.
For Komatsu, demand for construction and mining equipment advanced substantially in China, Asia and Latin America, while demand bottomed out in Japan, North America and Europe. Demand increased in all regions from the corresponding period a year ago. While the Japanese yen appreciated sharply against the U.S. dollar, Euro and Renminbi, sales advanced by 42.1 percent and segment profit by 7.3 times from the previous first quarter (April-June).
Terex Corporation was the only manufacturer in this group to post a loss for the quarter – $13.1 million, compared to a net loss from continuing operations of $99.6 million, for the second quarter of 2009. “We have just completed a challenging first half of 2010, but many of our businesses have seen their recent results show improvement off of trough levels experienced during 2009,” commented Ron DeFeo, Terex chairman and chief executive officer. “We are cautious, but positive, about our prospects for continued improvement. Backlog in three of our four segments indicates slightly improved near-term prospects.”

In the News

headquarters has been relocated to 600 Hunter Dr., Ste. 220, Oak Brook, IL 60523, due to recent flooding. Phone and numbers and e-mail addresses have not changed.
Mark Harbaugh has been elected president of DitchWitch Midwest by its Board of Directors, succeeding Earl K. Harbaugh, founder, who becomes CEO.  Mark, an AED director, has been with the firm for 18 years, serving in multiple company positions and the most recent as Vice President & General Manager since the year 2000.
The family-owned dealership based in Carol Stream, Ill. has five locations, including two in Indiana and two in Wisconsin.
Dennis Romanson has been named president of Central Power Systems and Sevices (CPS&S), the authorized distributor for Allison Transmissions, Detroit Diesel, MTU and Mercedes engines in Kansas, western Missouri and northern Oklahoma. With a long career in the construction equipment industry that began in the engine business, Romanson, a former AED officer, was most recently president of Road Machinery based in Phoenix. Romanson can be reached at

Groff Tractor has moved into a new 15,500 square foot facility in Cranberry Township, Pa. The Western, Pa. Case dealership now has more than four times the space of their previous location in Valencia.

J.F. Sahlberg & Co. Inc. has been appointed the authorized dealer of Champion motor graders in western Washington state.

JESCO has expanded its territory coverage by acquiring Standard Equipment of Frederick, Md. This acquisition consists of five new locations and expands the company’s reach across Delaware, Maryland and the Washington, D.C., metro area. JESCO will offer John Deere heavy construction equipment as well as John Deere’s CWP line as well as emissions solution products. A number of key Standard Equipment employees were retained to provide services to their respective territories.

Dynapac Holding GmbH, part of Atlas Copco Group, has approved a plan to consolidate the production of planers and small pavers in order to increase efficiency and customer service. The plan includes expansion of the manufacturing units in Wardenburg, Germany and Karlskrona, Sweden, while the factory in Lingen, Germany would be closed down. Sales, service and marketing of Atlas Copco’s range of road construction equipment is not affected by the plan.

Atlas Copco also recently opened a new 131,000-square-foot national distribution center in Charlotte, N.C., for the distribution of products under the Atlas Copco, BeaconMedæs, Desoutter and ChicagoPneumatic brands.

Atlas Copco Compressors LLC, has purchased certain assets of American Air Products, Inc, USA. The acquired business has been a long-serving, Atlas Copco compressor distributor for many years in the states of Minnesota, North Dakota, South Dakota as well as areas of Wisconsin.

Ahearn Equipment, Inc.,
Spencer, Mass., has been appointed a distributor of the full line of Terex compact construction equipment. Founded in 1977 as a local agricultural equipment dealership, Ahearn has since focused on landscaping and consumer markets with compact construction equipment. Ahearn offers new and used equipment, parts and service, and houses a NAPA Auto Parts store.

Equipment Depot, a subsidiary of PON North America, has been named a distributor for Teupen USA. Equipment Depot will represent the Teupen Leo series of track-mounted, outrigger-supported aerial work platforms ranging in height from 42 to 162 feet. Equipment Depot is a full service material handling and aerial lift platform company with operations in 11 states including Pennsylvania, West Virginia, New Jersey, Ohio, Illinois, Indiana, Wisconsin, Kentucky, Tennessee, Texas and Oklahoma.

Altec, Inc., based in Birmingham, Ala., recently named Richfield, Ohio-based ALT Sales Corp. as its second distributor of Altec cranes in the U.S. The other distributor is Custom Truck & Equipment, Kansas City, Mo. ALT sales will target Altec crane distribution within all crane markets except electric utility, as Altec will continue selling cranes direct to these customers.

Thompson Pump & Manufacturing Co., Inc., a full-service manufacturer and provider of pumps, pumping equipment and engineering expertise, has achieved ISO 9001:2008 quality recertification for their Port Orange manufacturing facility – the highest standard attainable for quality management systems and manufacturing capabilities.

Bramco Inc. has announced its merger with JFT Precision Fabrication, Inc. Headquartered in Shepherdsville, Ky., JFT offers a complete source of aggregate processing and material handling equipment and related parts and service. JFT offers turnkey systems, including plat flow design, structural design, fabrication, equipment selection and installation as well as mobile crushing, screening and conveying equipment to its customers. JFT joins with Bramco’s other subsidiaries, Brandeis Machinery & Supply Company and Power Equipment Company, to sell and service the processing machinery throughout Kentucky, Indiana and Tennessee and adjoining states.

Pierce Distribution Services Company announced plans to move its Humboldt, Tenn., preparation center to Komatsu America Corporation’s central parts operation in Ripley, Tenn. Komatsu America Corporation will construct an addition to its current central parts operation to house the Pierce preparation center. Although housed together in one complex, Komatsu America Corporation and Pierce Distribution Services Company will continue to operate as two separate companies.

K-Tec Earthmovers Inc, a construction scraper manufacturer located in Rosenort, Manitoba, Canada, has introduced a rental program for end users. Until now, K-Tec Scrapers have been available for rent only through dealers. The new rental program allows end users to rent factory direct if there is no K-Tec dealer in their area.

Dale Wilson of Alpharetta, Ga., has been appointed national accounts manager for Stone Construction Equipment. Rob Newell, domestic sales manager for Stone Construction Equipment, Inc. also announced the appointment of MJ Miller Companies to the Stone sales team to cover dealers, distributors and rental yards in the Great Lakes Region which includes the states of Illinois, Indiana, Kentucky, Ohio, Michigan, Wisconsin and West Virginia
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