Terex, famous for their mini diggers for sale, come out of the recession under CFO's auspices

In 2002, Phillip Widman accepted the role of Chief Financial Officer at Terex Corp., the construction equipment manufacturer who are well known for their brand of mini diggers for sale. The company was undergoing a period of rapid expansion, and marshalling this was one of Widman's key responsibilities, and also one his most challenging. Terex, who aside from mini diggers also manufacture a range of heavy equipment and cranes, were, at that time, ploughing through acquisitions, with 11 company purchases taking place between 2002 and 2007. In the same time period, operating profit increased 12-fold and sales increased by 300 percent. However, 2008 saw the global economic recession hit, and Terex, like many companies, suffered greatly, with orders vanishing into thin air, and sales for all product lines dropping by huge margins, sometimes by up to 80 percent. Or, as Widman succinctly put it, during an interview at the firm's Connecticut headquarters, We hit the wall.The recession bit so virulently, that by the beginning of 2009 Terex was haemorrhaging money. Widman was forced, like hundreds of others like him across the world, to confront the fact that they were now operating in an entirely different economic reality. As a result, his job became focussed upon devising cost cutting measures, in order to stabilise the company's finances. As Widman commented, You take all the actions you need to do to stop the bleeding.
This involved making tough decisions, and Terex were forced to close or merge many of their manufacturing plants, cut the hours of work that members of staff undertook at the factories, and freeze much of their spending. Widman said, You’re down to cutting at the bone sometimes. You’ve just got to be very careful about going too far.

Other measures included laying off 30 percent of the work force, and instituting a 10 percent salary cut for all remaining employees, right up to corporate management.

2009 continued to go badly for Terex, with their falling sales putting them at a real risk of violating certain conditions of their bank loans. Widman was forced to agree amendments with their creditors, which bought the company time from having to meet debt payments saying, We needed some escape valves.

In mid-2009, Widman and Ron DeFeo, the chief executive officer of Terex, made the decision to take advantage of the nascent recovery of the stock exchange, and sold stock and bonds worth $600 million, using the money to both pay back debts owed to the banks, and to give themselves the manoeuvrability of cash liquidity. Widman said, You do it when you can, as opposed to when it’s too late and you can’t get the money.

They then sold the arm of the company which makes mining equipment to Bucyrus International Inc. for $1.3 billion, comprised of $0.3 billion Bucyrus shares, and $1 billion in cash. The Bucyrus shares were given on condition that Terex would keep them for at least 12 months, so Widman purchased derivatives which were linked to a variety of shares in companies similar to Bucyrus, in order to ameliorate the risk of a drop in Bucyrus share prices. Widman said:

Their volatility is very high, so we had to look at how we could potentially hedge that risk.

Widman also decided to utilise bundles of derivatives to counter the risk of fluctuating exchange rates affecting foreign-generated revenue. Widman said:

We’re trying to maintain a buffer or a smoothing. I’m not going to take a position that’s really dramatic.

These measures saw Terex enter the middle of 2010 with significantly more cash available than had been the case one year earlier, with $1.5 billion available, and a further $500 million from a credit facility. This money, Widman says, could be used to begin a new campaign of acquisitions, We’re an acquisitive company, and if somebody else can’t survive, we could potentially take advantage of that. We don’t necessarily want to buy very troubled businesses, but good businesses in troubled situations.


As of the interview, no concrete target for an acquisition has been identified, with sellers, who are also still recovering from the debilitating effects of the recession, asking for too much money, with Widman saying, There are a lot of natural combinations that should occur, but the industry hasn’t consolidated very much.

However, Terex's fortunes are recovering, with sales rising once more, and this has allowed the working week at the factories to be re-extended, and salary cuts to be rectified, with Widman saying, We’re producing at a lot higher levels than last year.

The figures from 2009 saw Terex spending $100 million per month on materials, down from $300 million per month in the pre-recession days of 2008. 2010 has seen them rise back to a level of $200 million per month.

Widman predicts that Terex should be able to meet their target of posting a per share profit by the end of 2010, with $4.5 billion worth of sales for the year. He also said that 2013 should see Terex have doubled its revenue, without any new acquisitions. He said:

We think we can taste it, but it’s not going to be as easy as it might have been two or three years ago.

This is partially because Widman is targeting sales growth in new areas. The US and Europe are no longer the be-all and end-all of markets, with countries such as Brazil, China and India increasing in importance month by month. Widman said:

The developed parts of the world are not going to grow as much. In terms of where we see spending, certainly China’s at the top of the list for the next decade or two.

Consequently, Terex is working to significantly expand their operations throughout all three of those countries. Whilst potentially lucrative, there are a labyrinth of new challenges, involving local practices, laws and intellectual property legislation. Widman said:

We’ve made some mistakes.

An example is the sale of an excavator, designed in Germany, to a Chinese firm. In China, the vehicle was utilised virtually non-stop, 7 days a week, whilst it had been designed under the assumption that it would work for 40 hours per week, So you need a different ruggedness, concluded Widman.

Widman was born in Detroit, Michigan, and went on to achieve a Masters degree in Business Administration, awarded by Eastern Michigan University. He worked for Unisys Corp. for more than a decade, before moving to ABB Asea Brown Boveri Ltd, becoming the Chief Financial Officer. He then moved to Philip Services Corp. as Chief Financial Officer, and orchestrated the restructuring of their debt, saying, I liked it from an experience standpoint; it was hell going through. He accepted a position as Chief Financial Officer with Terex in 2002, consolidating the company during a period which, not only did the recession hit, but Terex's make-up was fractured and de-centralised. Widman said:

I had to build the whole finance organization. We didn’t have information technology; it was whatever the guys at the local businesses had.

DAF Trucks

An exciting moment in the world of trucks recently with the unveiling of one of the largest both in size and structure alongside figuratively, the IAA 2010 in Hanover welcomed the arrival of the bran new 12 - tonner LF45 parallel hybrid truk from daf trucks.

The new vehicle which enters production at the end of the year, was a collaborative development between Leyland Trucks Ltd, Eaton and Eindhoven University of Technology after an extensive two year field text that looked at how daily use with consumers both in the UK and on the continent.


Information about the DAF LF45 Hybrid.

It's fitted with a 4.5 litre PACCAR FR diesel engine which acts in complience with ultra low EEV emission requirements without a soot filter.

Producing a max power of 118kW / 160hp and an electric motor installed next to the clutch and gearbox, it is able to provide drive as well as working as a generator. During braking, energy is released and depending on the degree of charge, the lithium-ion batteries determine from the centralised computer, when the diesel engine needs to provide the drive, and when the electric motor should be used.

It is also fitted with a 'start / stop' system.

A transformer comes with the DAF LF Hybrid which is used to change alternating current that has been supplied by the generator to direct current for use with batteries.

To begin with, DAF will supply the vehicle in France, Belgium, Germany, the UK and the Netherlands. If successful, it will then be introduced to other markets.

There are plenty of high spec daf trucks for sale available to purchase for your business from specialist construction trading websites.

JCB 3CX for sale

JCB has decided to join forces with the Michelin Power CL as the original equipment for its latest models of the jcb 2cx, jcb 3cx

JCB has chosen the MICHELIN Power CL as original equipment on its latest 2CX, 3CX and 4CX backhoe loaders. This is in addition to the MICHELIN XMCL which is already the OE radial option.

After extensive development and rigorous testing at JCB's headquarters based in Rocester the parts were put to the test. The tyre was chosen after these tests which were very severe - they needed to make sure that the materials could cope with the rigours of life on and off the road. The power CL is a cross- ply agro - industrial type designed with specifics to enable the use of backhoe loaders, telescopic handlers and compact wheel loaders.

Another added benefit of the tire features is a special damage - resistant tread area something called a closely spaced central lug pattern. This minimises punctures and coupled with a rubber compound, reduces tearing in harsh day to day conditions.

The cross-ply casing of the Power CL further enhances the tire’s resistance to punctures and impact damage due to the type and number of plies.

Because of how the casing plies are positions, they ensure very high levels of sidewall rigidity which thus in turn provides excellent lateral and vertical stability which is absolutely crucial for telescopic handlers to be able to work a their full extension - whilst also providing excellent sidewall protection.

There are five sizes to be fitted to the new 2CX, 3CX and 4CX and these are:

340/80 – 18 (12.5 – 18) 340/80 – 20 (12.5 – 20) 400/70 – 20 (16.0/70 – 20) 480/80 – 26 (18.4 – 26) 440/80 – 28 (16.9 – 28)

The MICHELIN Power CL is also available in up to 11 sizes from 280/80 – 18 TL to 420/80 – 30 TL. MICHELIN Power CL is one of five tire ranges that make up the Michelin Compact Line offer. The Compact Line tires are designed for use in construction, agriculture, landscaping, public works, and roads.
There are plenty of jcb 3cx for sale.

Scania Used Trucks

So you're looking for a used truck and not sure whether to approach Scania to enjoy one or more Scania used trucks or perhaps global brand Volvo for one of their used Volvo trucks? Or perhaps another brand altogether? Whilst Volvo has an impressive track record and has marketed itself into an instantly recognisable branding powerhouse, Scania used trucks is arguably a better place to begin. You can find a great selection of Scania used trucks through www.trucktradex.co.uk.

Scania, a company regarded as one of the world's leading truck and heavy goods vehicle transportation manufacturers have recently held a European competition to find Scania's Young European Truck Driver 2010 as part of the Young European Truck Driver's Championship. You could grab yourself a used truck from the competition itself thus securing yourself a little piece of competition history. The competition first originated in Europe in 2003 but this year holds a little difference in the calibre of entrants with the emergence of the competitions very first female contestant - Swiss dwelling Sandra Zeller, 24.

Always a winner to incorporate eco friendly issues alongside high performing drivers of either sex in equally impressive machinery. Built for longevity a Scania used truck doesn't have to be a compromise on durability, added comfort or style. Industrial and Marine engine maker Scania employs approximately 32,000 people and currently operates in and around 100 different countries so you could quite easily pick yourself up a Scania used truck with relative ease.

The majority of Scania's operations are conducted in Sweden whilst production takes place throughout Europe and South America.
The event held on October 8th saw eighteen of Europe's best young truck drivers emerge to compete with one another for the acclaimed title of Young European Truck Driver 2010 which is decided via a ream of different battles incorporating skill, dexterity and driving ability to determine who had the necessary skills to trounce the competition. Precision driving events typically attract 5,000 to 10,000 visitors to watch the eighteen contestants compete against each other in various runs which include defensive and fuel economy driving, cargo securing and pre driving check lists. Viewers who prefer to watch from afar can enjoy live updates via www.scania.com alongside continual feed from Twitter and Facebook.


“Everyone is welcome to experience the final and to participate in the many different activities we are organising around the competition area, next to our chassis workshop in Södertälje,” says Mikael Person, who is in charge of the Scania competition.

“This competition puts the spotlight on drivers, celebrates their professional skills and highlights their contributions to society. In this way, we want to raise the status of drivers and attract more young people into the profession,” Mr Person adds.

With an eco friendly message incorporated within the strands of the competition, the driver, according to Scania's values, is the single most important factor in an operating economy for the environment and also, for safety. Drivers who are capable and competent contribute to energy efficient transport, increased road safety and lower fuel emissions. Endorsed by the European Commission and the International Road Transport Union and enjoying sponsorship from major player Michelin, the final held in Sweden will also be backed by commercial giant Volkswagen Group, Sweden. Scania is also running similar competitions in Latin America, Africa and Asia.

Forkliftaction.com celebrates 10th anniversary of reporting on the fork lift trucks industry

The popular materials handling internet resource Forkliftaction.com has reached a milestone; it is a decade since it first launched. In the year 2000, the materials handling world was not necessarily au fait with the relatively newfangled nature of the internet, but Forkliftaction.com took a chance and launched, bringing the world of fork lift trucks into cyberspace. Ten years later , and the site is a global hub for the exchange of information about the materials handling industry, with more than 50,000 subscribers benefiting from the services it offers.

Michael Leu founded Forkliftaction.com, and is now the executive director, and he explained the motive behind its creation:

I wanted to connect people in the industry - from east to west and from factory to farm, to let people know what was happening and where to get the best deal, spread the word about workplace safety and let the people who design and fix the machines share their knowledge with each other through the forums.


After having the idea, the implementation required a leap of faith, as Leu describes:

I remember my colleague and I going to CeMat in early 2000, just before the launch, to gauge industry opinion about the venture. It was a very mixed reaction; many in the industry didn’t trust the new technology and couldn’t see how it could help their business.

Something that helped Leu's vision become realised was the change in attitudes towards the internet, and the rapid acceleration of its use, that occurred between 2000 and 2001. People began to see the internet as an integral part of their day. Leu had been part of the forklift industry for almost 15 years, and was familiar with the various magazine publications that pertained to the sector. What he believed the internet could do was maintain the quality of the news and analysis which the magazines offered, whilst at a stroke solving the problems of speed; the dissemination of news by magazine subscription was slow and clumsy compared to the possibilities of the internet.

I was well aware of the global nature of the materials handling industry, says Leu, and how hungry for industry news its members were. I also believed the site should alert dealers to new possibilities for products and spare parts and to provide manufacturers with information about new and innovative technology, alternative component suppliers and news of organisational and marketing strategies used around the globe.

One of the fundamental precepts of Forkliftaction.com is to provide an up-to-date news service, and one which is independent and objective. The purpose of Forkliftaction.com is to treat material handling stories with an even-handed impartiality, allowing the subscribers to make their own minds up on the issues which affect them. The site launched to a mere 50 subscribers, a number which has grown to 50,000 in the ten years that it has been operational, with 120 new subscribers every week. Initially, subscriptions tended to be from manufacturers and distributors of forklifts, who were able to use the service to keep abreast of what their competitors were up to. However the last few years have seen the actual users of forklifts begin to subscribe, and in fact they now outnumber the producers.

The independent nature of the news service is crucial to Forkliftaction.com, as it prides itself on being able to report on stories with no interference. One example is the site's reporting of the news that NACCO were consolidating sales and dealers within their global network, a story which NACCO denied, before eventually confirming. Other subjects addressed by the news team have been industry litigations and legal issues, sometimes involving the biggest names in the sector, as well as important coverage of workplace accidents and tragic deaths due to lack of proper safety training and supervision. In fact, Richard.E.Higgens, the director of the US Open Forklift Rodeo and Safety Expo, said:

Forkliftaction.com can take great satisfaction in knowing that somewhere, somehow you have undoubtedly saved lives by your consistent support in promoting forklift safety.


Forkliftaction.com also reports on the positive aspects of the industry, particularly the response of the materials handling industry to the various natural disasters which have plagued the first decade of the 21st Century. The site has reported on companies such as JCB, Raymond, Komatsu, Linde and Trelleborg, who have donated equipment, expertise, time and hard currency to the relief efforts in the aftermaths of the Tsunami in Asia, Hurricane Katrina in New Orleans, the raging bushfires in Australia, the earthquake in Haiti and the floods in Pakistan. Forkliftaction.com has also reported on the regular local charity work of firms such as Mitsubishi and Jungheinrich.


Aside from news updates, Forkliftaction.com also produces features, which are able to provide a more in-depth analysis of various salient issues within the materials handling market. The feature topics are chosen by recourse to subscribers opinions, and so are as topical and relevant as possible. The first ever feature was published in 2001, and concerned the nascent market for forklifts in China, and it was relatively small, at 550 words. The features now are nearer to 2000, and such is the reputation that Forkliftaction.com has built up, usually feature interviews with people who are absolutely key to the topic.

Forkliftaction.com works hard to remain at the forefront of the industry, with Howard Quick, the regional product manager for Linde North America, saying, if it is in Forkliftaction.com, the materials handling community is talking about it. Other industry luminaries who are regular readers include Tim Jamal, the vice-president of Jamco, who said that the site has become, the leading global news source for the materials handling industry, and Bernd Dolk, the sales manager for Raeder-Vogel, who said, with its worldwide coverage and readership, Forkliftaction.com is unique in distributing information on all aspects of materials handling to interested parties, manufacturers as well as end-users.

Terry Wickham from Keyroller cites another benefit of being a subscriber to an industry based community, saying, We were able to gain tremendous exposure for our many new products and ideas.

Michale Leu has a very clear philosophy, which he has brought to Forkliftaction.com. Customer loyalty, he says, is based on the quality of the service. We have customers who have advertised with us right from the start. Svetruck is one such company; they stay with us because Forkliftaction.com has formed strong bonds with them over the years and we offer them value and consistent results for their advertising. New customers are attracted to the website by the extensive range of services Forkliftaction.com offers.

Ann Hofmans is the site's general manager, and she agrees with Leu, observing that the site has always tried to grow in line with what its subscribers want:

Forklift businesses these days have to follow the buyer and respect the changing ways they purchase a forklift. They now do an enormous amount of research - online. The buyer wants to learn what’s on the market, what technology is available and where they can get it.

Forkliftaction.com is always evolving, always looking to improve its service, and Hofmans is keen to extol some of the changes which will be happening in the coming year, saying, Forkliftaction.com News will soon be available online with the ability to switch easily from one news story to another, between media releases and product features. There will be a mobile version of the newsletter for those subscribers who choose to receive it on their mobile phones and RSS feeds which can be used to feature Forkliftaction.com News on subscribers’ own websites. The new design of the newsletter, the improved structure and format of Forkliftaction’s news service will bring it in line with the newest internet usage by our members.

Leu's plans for the site's second decade are simple: to increase membership and visitors in all countries, through development of additional tools for users, regional news in all major economies and translation capabilities for non-English speaking countries.

There may also be an upgraded service for those who opt for a paid subscription, but that is still on the drawing board at present. It has been ten years of hard work, but also of success, and when asked if he would make the same choices again, Leu is gleefully unrepentant: Yes, indeed I would, as long as I was able to assemble such a talented and dedicated bunch of people to come with me!.

Meynell introduce Renault trucks to fleet

Meynell Plant Hire, who supply trucks to Leicester construction contractors Jelson Holdings Ltd., their parent company, have broken the mould by acquiring the first Renault trucks to join their fleet of 50 trucks. The Renault Kerax, Midlum and Premium models will become part of the fleet, which also contains Mercedes, Volvo and new and used DAF trucks. The Renault Keraxs are tipper trucks, and will be utilised in the delivery of stone, as well as transporting debris and earth. The Premiums, meanwhile, will be used to transport breeze blocks for Jelson's subsidiary, Interfuse Ltd., a manufacturer of breeze blocks. The Midlums will be used in the transportation of residential items, for example kitchen sets, across the country, particularly to new developments which are under construction.

Meynell Plant Hire's Operations Manager Troy Harrison, said:

The Renault Premium Lander is versatile enough for delivery to our building sites, with the comfort of a high spec cab and automatic gearbox for motorway driving. One of the best advantages of the Lander is its fuel economy.The first Renault Premium Lander has been on the road for a couple of months now and already we are seeing an excellent fuel return of 8.3 miles per gallon - more than any other truck on our fleet which average at approximately 7 miles per gallon. The Kerax is a great looking vehicle and its ground clearance is second to none. The Kerax offers good bhp and a build quality for construction that is simply made for the job.

Meynell Plant Hire have worked with Renault before, as they operate a franchise for Renault automobiles, but the adoption of the trucks indicates a new level of cooperation. The logic, according to Troy Harrison, was thus:

We had never really considered Renault Trucks before but looking at the quality of the trucks you get for your money, we felt that it was a great value and, with the local support of the new RH Commercial Vehicles depot on our doorstep in Leicester, we thought we would give it a go. This decision has already proved a very positive move, both for quality and for fuel efficiency.

Meynell Plant Hire is one of the subsidiaries of Jelson holdings Ltd., one of the largest construction firms in the UK which is still privately owned. It is a family run firm, and was established in 1889, building residential properties across Leicestershire, Derbyshire, Lincolnshire, Nottinghamshire, Northamptonshire and Cambridgeshire, for more than 120 years.

MAN to release product range in China, in collaboration with Sinotruk Hong Kong Ltd.

A complex web of interests between industry giant Volkswagon AG, trucker makers MAN SE and Scania, famous for new vehicles as well as MAN and Scania used trucks, and Chinese firm Sinotruk Hong Kong Ltd. can be carefully unravelled, as MAN SE announce their partnership with Sinotruk.

MAN SE own 25 percent of Sinotruk Hong Kong Ltd., and chief executive officer Georg Pachta-Reyhofen revealed that they may increase that stake, on the back of the products that they plan to introduce into the Chinese market together.

MAN SE, itself part-owned by Volkswagon AG, has seen its figures improve significantly in recent months, as demand in Europe slowly begins to climb following the recession, and, more importantly, demand in Brazil rockets. Profits for the second quarter were almost seven times higher than in the previous year for the German firm. The net income was €153, up from a mere €22 million in the same period of 2009. The Latin American boom drove a 16 percent increase insales, to €3.6 billion. Pacht-Reyhofen stated that emerging markets such as Russia, Africa and Asia can be a huge market for the firm, and the collaboration with Sinotruk is part of the strategy to take advantage of these markets.

MAN SE and Sinotruck Hong Kong Ltd. plan to bring out a range of heavy duty trucks for the Chinese market in 2011, with no further information being released as yet.

The relationship between the companies is byzantine, with MAN SE owning 25 percent of Sinotruk, and Volkswagon AG owning 29.9 percent of MAN SE, which they acquired in order to assist Scania, the Swedish firm, in which they also own a majority stake, in resisting a hostile takeover by MAN SE. MAN now own 17.4 percent of Scania, and are interested in opening talks upon the subject of cooperation; a synergistic proposition which Volkswagon will surely facilitate.

Volvo display new FL Narrow Track

A number of luminaries from the petrochemical industry in the UK were amongst the guests at a seminar at the Volvo Trucks headquarters in Warwick. The seminar involved the launch of the new Volvo FL Narrow Track tanker, with the guests being able to view them alongside an FE 6x2 rear-steer tanker. The seminar, whilst focussing on the Narrow Track's specifications, also demonstrated how Volvo can work with their customers on a number of issues. There are a few variables, such as using Dynafleet telematics and Volvo Service Point Online, which can be customised, allowing the customer to reduce their fuel usage and manage the vehicle effectively.

The FL Narrow Track fuel tanker features a payload of 11,000 litres, and the FL Narrow Track gas tanker can hold 6200 Kg of Liquid Propane Gas (LPG). The size of these payloads, and the subsequently less frequent need to reload, mean that they are able to be effective alternatives to a GVW truck, or a Scania P94 fuel truck.

The FL Narrow Track measures 2.1 metres in width over the doors, and 2.3 metres over the mudwings. In order to ensure that the vehicle can be serviced by Volvo's network of dealerships, without recourse to special parts, there have been two modifications: the mirror arms have been made narrower, and the rear wheels and tyres have been replaced by super singles on 8 stud steel wheels. It can also be equipped with Volvo's I-Sync, the automated transmission.

The Narrow Track FL is suited to applications which aren't reliant upon axle loading tolerance, as it is 5.8 tonnes at front and 10.3 rear. Another vehicle that was displayed was the 6x2, which featured a rear-steer tag-axle that is operated by hydraulics, and was there to draw attention to a new rental offer by Volvo and Haartz Tanker Rentals. The offer is a Volvo FE 340 with a capacity of 20,000 litres, replete with pumping equipment, for £804 per week, with a minimum term of 12 months.

Iveco emphasises alternative fuels.

Iveco, alongside other truck manufacturers such as Scania UK, is following a policy which emphasises natural gas and electric power, as it concentrates upon reducing carbon dioxide emissions.

Iveco already produce engines which run on natural gas, in this case compressed biomethane or compressed natural gas, and many customers already utilise this, including Coca Cola and Tesco, which recently ordered 795 vans, including 25 powered by natural gas. Mainland Europe has embraced Iveco's EcoDaily Electric, an electric powered model available in either a 3.5 tonne or 5.2 tonne version. These vehicles use a three-phase traction motor, which is linked to a DC/AC inverter. The two versions deliver power of 30 kW continuous and and 40 kW continuous respectively. The components and the batteries are located either in the engine space or the side chassis, which means that load space is not affected, with Iveco saying, At the end of the vehicle's life, recycling is not compromised; the Zebra batteries are completely recyclable.

Roadtransport.com's group technical editor Colin Barnett test drove an EcoDaily Electric 3.5 tonne vehicle, and said, Negotiating the streets of London was slightly more challenging thanks to left-hand drive, but in every other respect the Daily Electric was simplicity to drive. The steering is not assisted at standstill to save battery life, but comes to life as soon as you move. In normal mode, progress up to the limited 43mph maximum is brisk, surprisingly so for other road users.

Caterpillar expands facility

Caterpillar has announced that an expansion is imminent at the premises in Sandford, North Carolina. A new building measuring 270,000 square feet will be constructed, and is intended to house both logistics and robotic welding fabrication. Caterpillar, famous for their backhoe loaders and mini diggers for sale, stated that the new premises will help them to meet growing demands for equipment. Construction will commence in September, and is projected to be completed in the summer of 2011. The facility will provide employment for a further 325 members of staff over the course of the next 5 years.

Caterpillar also announced the release of seven new versions of the series 3 compact loaders, which encompass multi-terrain loaders and skid steer loaders. The series 3 models have been adapted from the series 2 designs, but with improvement which render them, even more capable, more reliable, safer and easier to operate.

Some of the new elements include a redesigned version of the 'dead-engine lower valve', which allows the arms to be easily lowered if the engine has died, and the electronic control module being moved to a more accessible position in the rear. The engines have also been bettered, with Cat C3.4 DIT engines installed, which delivers a 25 percent increase on the previous model. Hydraulic capabilities have also been increased, by 40 percent, and Caterpillar say that, significantly improve the capability and efficiency of the 242B3 and 257B3 when handling standard-flow work tools, such as brush cutters, power box rakes and trenchers.

Cadzow acquire new Mercedes-Benz Actros Titan

Cadzow Heavy Haulage, an abnormal load specialist, has acquired a new vehicle; a huge Mercedes-Benz Actros Titan. The vehicle was made at the Mercedes-Benz facility in Wörth, and features a customised 6x4 tractor unit, equipped with a V8 engine that delivers 609 hp. It was subsequently converted into an 8x4 version at the Titan Spezialfahrzeugbau GmbH.

In order to prepare the vehicle for the operations that it will be required to undertake, the chassis was significantly reinforced by Titan, and the air tanks, batteries, exhaust stack and transmission coolers were moved in order to maximise space. It also features a 900-litre fuel tank.

Cadzow Heavy Haulage is a Lanarkshire based firm, and this is the fourth Mercedes-Benz Actros Titan that they will have acquired, and they were supplied by Western Commercial, a dealer which also deals with tipper trucks for sale. Managing Director Jim Macauley said, Our Mercedes-Benz Titans have done us proud since we bought our first two from Western Commercial in 2003. They’ve always been man enough for the job and very reliable, our only outlays having been on the kind of wear and tear items you would expect. There’s no doubt that Mercedes-Benz makes a good heavy truck, which explains why most of the guys in this very specialised business choose to run them.

The vehicle features a luxurious long distance sleeper cab, which features uspended seats, air-conditioning, a refrigerator and a blue-tooth compliant CD-radio player. Jim Macauley commented, Unsurprisingly, our driver Campbell Stewart is over the moon with his new truck.

Potain cranes employed in major Italian development

Trento, a city in the North of Italy, is currently witnessing the construction of a new multi-purpose development called La Albere, and it is utilising eleven Potain cranes, with two further cranes scheduled for arrival in August.

La Albere is the largest development in the Trento province, and Sabino Riefoli, the sales and marketing support manager for Manitowoc in Italy, said, The three-year project will completely transform this region, creating a new district of homes and businesses.

The cranes range in capacity from 6 to 12 tonnes, and can operate at heights of up to 61 metres. The collection features two MDT 218 A models, a flat top MDT 98 model, and eight MDT 178 models. They are employed in the transport of various building materials, and will continue working until the completion of the development, scheduled for 2012. Colombo Costruzioni, the primary contractor, is utilising Potain's anti-collision programme, Top Tracing, and so the cranes are set up in overlapping operational areas. A few of the cranes are owned by Colombo Construzioni, whilst the remainder have been hired from GB Manci Noleggi.

The development spans over 11 hectares of a former Michelin factory site, and will provide 30,000 square metres of office and retail space, 300 residential apartments, 2000 parking spaces, a science museum, 5000 hectares of sculpted parkland and numerous piazzas. It was designed by architect Renzo Piano, and he has incorporated into the design a number of environmentally friendly features.

Suped-up John Deere runs on alcohol

Waverly's Bremer County fair saw an interesting sight this year; a suped-up John Deere tractor. John Storjohann's tractor looks like John Deere 4560, a 1980's made diesel model. However, Storjohann has tinkered with his vehicle, creating a tractor that has a 6-cylinder engine that is triple turbo charged and runs on burning alcohol, delivering 2500 hp. ITs power is such that it can tow a sled, weighing 40,000 lbs., over 300 feet per 10 seconds.

John Strojohann is a retired John Deere engineer, and he hasn't been able to leave his love of engineering behind him; in fact, for him, its the ideal hobby, saying, You meet a lot of good folks and I love the technical challenge.

He goes on to say, I made my living working on diesel engines. I had enough grease, dirt and soot thrown on me. I want to play with alcohol.

For more than three decades he headed the Applied Mechanics Department, designing and redesigning, ironing out problems. Discussing his new hobby, he says, It was curiosity more than anything. I designed it. I built it. I paid for it. Now, I'm going to drive it. If your tires get a bite, it will put your fanny in the seat.

Soon Storjohann had earned a reputation within the National Tractor Pullers Association, and began to be wary of his creations, with fellow competitor Gary Wipf saying, I'd say Don has one of the best put together super stocks out there.

Storjohann's vehicle is called Just Off Warranty, and he built it from scratch, using his 32 years of experience working for farm trader John Deere, as well as his Master's degree in Engineering. The fuel system was designed completely by him, and he says, I have a complete mathematical model of my fuel system in my head. You could steal it and I could build another one.

Unfortunately, at the fair, Storjohann could only come fifth in the competition that he won in 2008. My turbos wouldn't come up on me, he said, Now I have data and know what to look for, and we'll try it again.

Gary Wipf pulled 317 feet in 10 seconds to take the first prize. However, the loss has not dented 72 year old Storjohann's enthusiasm for tractor pulling, and is supported by his family and circle of friends. He goes to up to 20 events during the pull season, and he is assisted by Eleanor, his wife, and also his nephews, cousins and sundry other relatives.

This is our together time, says Eleanor, I helped him put it (tractor) together. I know every nut and bolt in that thing.

Often up to 60 memebers of the family will be supporting StorJohann at a given event, with his brother in law Butch Franzen saying, It's wonderful with all the family. It keeps us close.

Storjohann spends a lot on his hobby, with each event costing around $2000, although his vehicle is worth at least $100,000. Storjohann is unrepentant, saying, John Deere gave me the best job in the world, making an excellent living. I worked damn hard for it. I'm going to spend it ... you can't take it with you.

Southwark council goes green in its choice of vehicles

The council for the London borough of Southwark have decided to invest in a fleet of 'green' vehicles. 47 new Mercedes-Benz Sprinters have been chosen by Southwark council, who were looking for the most environmentally friendly vehicles that they could find. The new fleet are all powered by engines which meet both Euro 5 emissions regulations, as well as the criteria for being an Enhanced Environmentally friendly Vehicle (EEV).

The vehicles were sourced through London Hire, a firm which supplies many vehicles, including from Scania UK, to the majority of London borough's, as well as to a variety of other public sector institutions.

They are also equipped with Mercedes's ECO-Start system, which automatically cuts the engine when the vehicle is still, thus reducing fuel consumption, emissions and wastage. An example of how it works would be stopping at red lights; the driver just has to go into neutral and release the clutch. After two seconds, the ECO-start system will turn off the engine. When the lights turn green, simply depress the clutch and the engine will immediately revive.

Mathew Trott, the business unit manager for Southwark council, said, Choosing vehicles that would cause the lowest possible impact on the local and global environment was right at the top of our list of priorities when we made this decision. We looked at several options - not many could offer Euro 5 engines, even fewer could provide vehicles to EEV specification, and only Mercedes-Benz could combine those two features with the ECO-Start system. Of course we also had to be satisfied that the vans would be 'fit for purpose', and would provide a reliable and efficient service to our council tax payers. The Sprinters are extremely well built and very cost-effective, as well as providing a comfortable and safe working environment for our staff.

Whale Tankers hit Truckfest

This year's Truckfest Scotland saw a particularly good impression made by Whale Tankers. It was the first time that Whale Tankers had been present at the Truckfest, and people visiting the Volvo truck stand had the opportunity to explore their rigid vacuum tankers. The VacuumWhale is a 3300 gallon tanker, the only tanker at the exhibit, at was liveried in the colours of Glasgow's Waste Water Services.

Rhona Paterson, the total solutions executive for Volvo truck trader UK in the North, said, To many in the industry, Volvo Truck & Bus included, Whale represents the very best when it comes to product quality for specialist vehicles of this type. We were delighted to be able to feature the only tanker of its kind on one of our chassis at this year's Truckfest - the popular FE 6 x 4 26-tonne GVW chassis with day cab - and we received many favourable comments about the unit and its prominent appearance. It certainly helped Volvo's truck display stand out from the crowd.

Gordon McShannock, the Managing Director of Waste Water Services, who continues to utilise Whale Tankers, said, Not only is the best that money can buy, so too is Whale's service and support back-up. They do all of our servicing, maintenance and tank testing, and we know that there are two highly-qualified and dedicated service engineers just a phone call away should we need them. We are now looking forward to the new vehicle helping us promote our own quality service to both current and future customers.

Whale Tankers' Area Sales manager for Scotland, Alan Steel, said, As Gordon's comments clearly demonstrate, Whale prides itself on the outstanding levels of service support and back-up it has the capability of offering, not just north of the border but UK wide.

Transport company criticises banks during the recession

A transport company from Billingham has criticised the banking sector for their dearth of support during the recession, despite riding the downturn and emerging as an even more robust business. Nicholson's Transport was moved to sell assets in order to survive and grow, as the banks offered no support, but the gutsy move paid dividends as they reversed the trend in the rest of the logistics industry by enticing new clients as well as garnering some substantial contracts. They took the decision to sell company owned property and then lease it back, in order to fund the difficult times. Dave Nicholson, the owner and founder of the company, was dismayed by the attitude of the banks during the darkest time for British businesses for more than a generation. He agrees with Chancellor George Osborne, who declared that banks had an obligation to lend to small businesses. Nicholson said:

This business has been through three recessions, but this one was so different in that the banks just shut up shop – despite what their PR teams were saying. We had been planning to restructure since 2007 and needed funding to achieve that, but the banks were extremely reluctant to lend against property and certainly didn’t want to hear from logistics firms. We have delivered the restructure despite the banks saying we wouldn’t survive past last December. They didn’t want to understand our strategy for moving forward, but we have achieved that regardless and paid back all bank borrowings. The recession has had a devastating impact on the logistics sector, with many firms going under, but there was no way we were going to roll over. We have actually come out far stronger, with each of our companies independent and more client focused.

As a result of their restructuring, the Nicholson Group now has transport and logistics enterprises in Doncaster and on Teesside, specialising in storage and Hiab cranes respectively. Nicholson feels he has taken many lesson from the recession, saying, The main lesson we have learned is to not have too many financial eggs in one basket. In future, we won’t have a situation where we rely too much on one funder, or indeed rely on banks at all. Instead, we are spreading our risks and improving our relationships with different banks, and looking at alternative funding methods.

Crossroads complete acquisition of Hartshorne Group

The has been an acquisition in West Yorkshire, as Crossroads Truck & Bus completed the takeover of Hartshorne Group, a Midlands-based company which, like Crossroads, are a truck trader, specifically for Volvo.

The two businesses will continue operate with their own identities, running as individual companies, but within the same group. Martin Cronin, the Managing Director of Crossroads, said:

The addition of Hartshorne to the Group will give us greater opportunity to add value to customer's operations by providing consistency and continuity across the key distribution centres of the Midlands and Yorkshire. We believe, that by working together, we can create even more opportunities for our employees, provide even greater customer service locally and build for the long-term future of both businesses.

Between the two companies, they employ nearly 1000 members of staff across 20 separate Volvo dealerships, and produce a turnover of £200 million per year. Their pedigree is shown in Crossroads' status as former holder of the Motor transport Dealer of the Year award.

JCB hits 100,000 excavators in India

JCB is one of largest construction equipment manufacturers in the world, producing backhoe loaders, excavators, compactors, skid steer loaders and mini diggers for sale across the world. In fact JCB India has reached landmark by recently producing the 100,000 excavator that they have manufactured in India.

The milestone vehicle was unveiled by visiting dignitaries, including: Kamal Nath, the Minister for Road Transport and Highways; Vince Cable, the British Secretary of State for Business and Vipin Sondhi, the chief executive officer of JCB India Ltd. Kamal Nath stressed that India's vast infrastructural road-building project required them to maximise their use of the latest technological innovations, and that JCB were an important part of that, bringing cutting edge construction technology into the country.

Vince Cable stated that JCB had built a worldwide network from their original location in the UK, and was committed to creating jobs in many countries. He also said that considering India's modernising projects, there was plenty of scope for further collaboration.

Vipin Sondhi expressed his delight that JCB's factory in Ballabhgarh was now the largest backhoe loader manufacturing facility in the world, and commented that JCB had a market share of more than 50 percent in India. JCB is looking to meet demand by eventually manufacturing a full range of equipment in India, including wheel loaders and compactors. The company is constantly investing in its Indian facility, especially the plants in Ballabhgarh and Pune, in order to be able to meet the constantly growing need for equipment.

AUSA and new importer VERHOEVEN feature at the TKD.

VERHOEVEN are the new importers of AUSA telehandlers and mini diggers into Holland, and through them, AUSA were in attendance at the TKD show in Barneveld. The TKD is aimed at the rental arena, and featured more than two hundred exhibitors from the construction and earthmoving machinery sectors. The exhibitors, focussed as they are on both the rental market and the end-user, allow their machines to be tested on-site.

The AUSA dumper D 150 AHG, a competitor of Thwaites dumpers, was the display model at the AUSA/VERHOEVEN stall, and features a loading capability of 1500 Kg. VERHOEVEN is a well established import company in the Netherlands, with a firm network of dealers, and satisfied customers, which is why AUSA have chosen to team up with them.

The Chinese crane market

One of China's largest B2B platforms, FRbiz.com, has issued a report on the state of the market for crawler cranes, mobile cranes, and the general market for cranes for sale. They predict the crawler crane market in particular will continue to grow.

The crawler crane sector was rather staid in China pre-2004, and was largely based on imports. However the breakneck rise of the Chinese economy, particularly infrastructural projects as well as power, steel and chemical industries, has fuelled a exponential increase in demand for crawler cranes. Between 2006 and 2007 the rate remained stable, but 2008 saw an increase of 69 percent, with 1648 units sold. The global economic downturn affected the market in 2009, and the sales of crawler cranes in China dipped by 31 percent, to 1131 units sold. The crawler crane market in China is still relatively young, and imports still account for 15 percent of sales. However, the broad range of incentives and road building and industrial projects instituted by the Chinese government means that projected sales for crawler cranes indicate a coming rise. Future infrastructural projects include a variety of wind power and nuclear power stations, which will further increase demand for crawler cranes. The next ten years will see an investment by the Chinese government of more than RMB 3 trillion, and with the need for wind stations and power plants, will come the need for all manner of cranes

Buying at the right time could help avoid Euro-6 price rise

The added cost of purchasing first generation Euro-6 vehicles can be avoided, claim DAF trucks, by upgrading your fleet now, with Euro-5 vehicles. The new emissions control legislation becomes effective in September 2013, and a cunningly timed purchase will help operators to avoid the initial phase of introduction, and its associated costs.

Tony Pain, Marketing Director for renowned truck trader DAF, explained:

Historically there's been an upswing in sales in the run-up to a new Euro-standard, but the difference with the changeover from Euro-5 to Euro-6 will be the significant price increase on the trucks. This is due to the additional exhaust after-treatment systems needed to meet the strict legislation. So if operators renew their fleet now on a three-year lease and then upgrade again on a five-year lease just before September 2013, they will have missed the initial take-up, and added cost, of Euro-6.


The size of the investment that truck manufacturers have made in terms of the development of Euro-6 vehicles means that a price rise is inevitable. Renault UK's commercial director Nigel Butler said, For Euro-6 we are anticipating a pre-buy as operators look to capitalise on the run-out of Euro-5 vehicles in 2013. This surge in sales could mean longer lead times because manufacturers have to gear-up production cycles to meet the peak in demand.

New mobile crane for Spencer Crane Hire

Devon-based crane hire firm Spence Crane Hire, has received a new model, which they ordered form Liebherr's selection of cranes for sale. Their new acquisition is a Liebherr LTM 1040-2.1, a 40 ton capacity model from Liebherr's range of mobile cranes. The crane is equipped with high-tech specifications, which include BlueTooth technology and remote control options. It is a two-axle model, with a 4x4x4 drive option, and superlative lifting capabilities. The main boom is 35 metres in length and is comprised of four sections, with a capacity of 7.4 tons, or 1.1 tons at a working radius of 31 metres.

It is driven by single engine, and is equipped with a ZF automatic transmission, which has 8 gears; two for reverse and six forward. The smoothness of the mobile crane when it travels is ensured by the hydropneumatic suspension. The steering capabilities include the ability to operate from the crane cab. The control systems are of the LICCON 2 genus, which is an on-board computer system that optimises the performance of the vehicle. It features a touch screen display system and a BlueTooth terminal. Julian Spence, of Spence Crane Hire, commented on the the company's new Liebherr, This is our tenth Liebherr and is equipped with the latest technology from Liebherr. We believe that it is the first mobile crane based in the West Country to have the optional BTT-Bluetooth remote control unit, which allows us wireless control of all crane superstructure functions. We are confident that this will make the set-up procedure safer and quicker and, if required, the operator can be close to the load to be lifted or placed.

South American markets are the future for US firms

As companies reveal their second quarter figures, it has become more apparent than ever that South America and its markets have been a huge part of the rising numbers. The economies of the US and Europe have begun to recover, but are doing so slowly, in minute increments. However, many European and US companies have been saved by large demand from South America, particularly Argentina and Brazil.

There are two saline treasons behind this: firstly, exports, particularly of agricultural and mineral products, have precipitated a growth in gross domestic product, and secondly, the factors which used to be prohibitive for American companies, such as hyperinflation and political volatility, are noticeably less pronounced.

Nicholas Heymann, an analyst for Sterne Agee and Leach, a brokerage firm, said, There's nowhere else in the world that's had the dramatic change in the middle class like Brazil, not even China. You've got an unfathomable amount of money there.

A variety of companies are either indebted to the Brazilian market, or are scrambling to become a part of it. PACCAR, makers of DAF trucks, has announced that it plans to construct an assembly facility in Brazil, in order to launch new and used DAF trucks across the continent of South America. They have decided that South America is actually a sounder investment than the vast emerging market of China, as the Chinese government often demands that Western companies enter into joint ventures with indigenous firms. Chairman and chief executive officer of PACCAR, Mark Pigott, said:

There's still been no Western truck manufacturer that's ever made any money in China in a partnership. Any of our competitors that are in South America seem to gain an inordinate amount of their net income from those markets. We're looking forward to growing in South America.

One company which demonstrates the potential of the Brazilian market is Whirlpool Corp., which manufactures appliances under the Brastemp and Consul brands, and have a huge market share in Brazil, with half of all Brazilian households, according to Whirlpool, owning a Consul appliance. Their rate of profit increase in South America was four times that of North America. Whirlpool chairman and chief executive officer Jeff Fettig said, In Latin America, the underlying economic fundamentals remain strong and we continue to see full-year growth [in appliance shipments] in the range of 10%.

Depreciation of dollar can be good for tractor makers

The chairman and chief executive of Titan International, the tyre manufacturing firm, has observed that the depreciation of the US dollar, in relation to other farming countries, is actually proving beneficial for the America's market for farm machinery.

Maurice Taylor said that although Brazil had become a major competitor to America, when concerning output of cotton, soybeans and corn, the farmers in Brazil are 'fighting' a currency that is appreciating. Mr Taylor said, Remember, a few years ago the Brazilian real conversion rate to US dollars was 4:1. Today it is 1.8:1. Therefore, it's a great time for the American farmer. Therefore, the fact that American farmers are in a very profitable state, will 'support farm equipment purchases'. He says that John Deere and Fendt tractors could become the 'big' winners. Large farm is running good and we believe it will go on for a few more years because corn, soybeans, cotton and wheat all use big equipment, said Taylor.

Titan International itself, which provides tyres for John Deere and Fendt, revealed a rise of 11 percent between April and June. The operating profits rose by 35 percent, although this was helped by cuts to the research and development department. The total earnings came in at $0.12 per share, which was fractionally ahead of the projections, which was $0.11.

Mr Taylor also said that the Titan International was set to stay on track to meet its financial targets for the year, on the mid-to-high side if business keeps going as it is today.

Construction underway on world's largest semiconductor plant

Saratoga County, New York has become the site of the largest computer chip production facility in the world. The construction of Module 1, the first of three semiconductor production plants to be built on the site, is under construction presently at the Luther Forest Technology campus.
The 1st module is to comprise four structures, which will span over 1.45 million square feet. The structures will include a support building, an administrative building, and a central utility building.

The construction is under the auspices of M and W US, which was awarded design and build contract worth $650 million, and is a three year project, having begun in 2009, with production of the semiconductors set to begin in 2012. A variety of Liebherr cranes are being utilised, and they have been supplied by Bay Crane. Bay Crane is the largest supplier of mobile cranes in New York City, and has been expanding its reach across the Northeastern regions of the country; the cranes for module 1 were supplied form their new Connecticut facility.

Joe Zils, Bay Crane's regional manager, said:

On such a high profile and fast tracked project, it was important for us to use the best machinery on the market. We operate one of the largest fleet of Liebherr crawler cranes in the Northeast, and they never let us down. The lifting capacity, maneuverability and reliability of the LR 1100 and LR 1300 made them the perfect cranes for this job.

Confidence beginning to grow in travel sectors

Travel, transportation and haulage firms, such as an airline or a truck trader, are a good indicator of the state of the economy as a whole. Air travel is rapidly affected by economic declines, and this was the case in the recession of the last two years, as airlines lost billions of Euros, as both individuals and businesses tightened their belts and refrained from flying. Likewise, when the numbers of these transportation industries begin to pick up, it tends to indicate that the economic climate is improving. The airlines have reported that it has almost returned to the pre-recession numbers, with Asia in particular driving the growth. China, the primary growth economy of Asia, and indeed the world, is vitally important, and although the government has begun to shrink some of the incentives and stimulus offers that were introduced in the face of the global recession, it still continues to grow in terms of its demand for equipment and products. Europe presents a less rosy picture, where the levels of growth are sluggish, and many governments have introduced so called 'austerity' policies in order to cut public deficits.

The industry continues to recover faster-than-expected but with sharp regional differences, said Giovanni Bisignani, Director General of IATA, Business confidence remains high and there is no indication that the recovery will stall any time soon. But, with government stimulus packages tailing off and restocking largely completed, we do expect some slowing over the months ahead.

The IATA said that air freight had grown by 26.5 percent, which points to a general increase in business. The world's largest steel-maker, ArcelorMittal, posted quarterly profits of €1.31 billion, which was a surprising level of growth, considering the figures for the commensurate period last year recorded a loss of more than €600 million. The reason for their 43 percent increase this quarter from the first can be accounted for by the return to profit of automobile groups. PSA Peugeot Citroen reported earnings of €680 million in the first half of the year, compared to a loss of €962 million in the first half of last year. Truck manufacturers are also superb indicators of the economic state of nearly every sector, and both Scania trucks for sale and Volvo trucks have been reported as being surprisingly robust. In Germany, the largest market in the EU, confidence in business rose remarkably, with the IFO Institute, a Munich based organisation, said, Firms are reporting significantly more favourable business conditions. The German economy is in party mood again.

Komatsu invest in Chinese market

The surge in demand for construction equipment in Indonesia and China has led Komatsu, one of the giants of the industry, to announce plans to double their production.

Despite projections being released in April, Executive Officer Masahiro Uegaki said in a Tokyo interview that the actual figures will exceed those projections by 60 percent. Last year saw 44,000 machines for the construction and mining industries produced by Komatsu; the end of this year will see approximately 85,000.

Komatsu's rivalry with Caterpillar means that they are counting on the US and Asian markets to grow this year. Despite China's demand for equipment, it saw a rapid decline in growth in 2008, and Yasuhiro Matsumoto, an analyst at Shinsei Securities Co. in Tokyo warns that, Komatsu faces the risk of a further slowdown in the Chinese economy, which would lead to a drop in its stock price. However, long term growth in the Chinese market, which is expected, will benefit Komatsu.

Both Komatsu and Caterpillar, great rivals and manufacturers of excavators, saw their share prices dip this, with Komatsu's falling 2 percent, and Caterpillar's falling by 0.3 percent. Komatsu have clearly targeted China as the market with the most potential, setting up a specific buying department for China, and sending a more than 20-strong delegation of executives to the country, as they vied with Hitachi, the Japanese construction equipment firm, and Sany Heavy Industry, an indigenous company, for business. At present, Komatsu is the leading supplier of excavators and other construction equipment to China, and it means to retain that share.

China is the world's most rapidly expanding economy, and also one of the largest, with Uegaki saying, China’s strength is outstanding. Indonesia is also strong, the markets for the country’s mining, agriculture, forestry and construction sectors are all good.

Komatsu combines Japanese and local produce in their excavators, with Japanese steel used to make the high-pressure tubes, and local steel for the booms and exterior shells. They have exceeded their projections, with an net income of 52 billion yen in the last two quarters, after a prediction 37 billion yen. The huge infrastructural projects in China, such as railways, roads and mining, mean that it now accounts for 19 percent of Komatsu' sales.

Recovery begins in the truck industry

The gradual worldwide recovery of the trucking sector is finally beginning to be felt further down the line, with automotive parts dealers in London seeing a small upsurge in business.

London, Ontario based wheel manufacturers Accuride have been forced into staff cuts in recent years, but recently was able to recall 40 workers who had been let go, making the staff numbers up to 130. Four years ago, the Accuride facility had 500 employees, and so the levels are still much lower than the pre-recession years. However, the beginnings of a recovery are an encouraging sign, with Tim Carrie, president of Canadian Auto Workers Local 27, saying, It is a good sign. It is good news when a company that supplies the trucking industry recalls workers — that is positive.

The fortunes of a company which is a truck trader is generally a good arbiter of wider economic situation, as a successful trucking industry indicates that goods are being purchased which require transportation. Someone buying used DAF trucks represents a pyramid of spending. The recovery is slow; as Carrie puts it, It is coming back in dribs and drabs.

Ceva logistics, which transports items for General Dynamics Land Systems Canada, is another firm which has recently been able to resume hiring new staff. They are recruiting 30 new employees, in various capacities; warehouse, shipping, forklift drivers and administration. To this end they are hosting a job fair on the 5th of August.

The Cami car facility, located in Ingersoll, is working to keep up with a large demand for two utility vehicles, the Terrain and the Equinox.
As a result it is looking employ a further 200 staff by the end of the year. As the recovery trickles down, Cami' supplier Rieter Automotive is also able to add staff, with 40 more jobs created. Carrie is cautiously optimistic, saying, I don’t think we will ever rebound to the level we were at, but this is a good sign. I measure a rebound in workers getting their jobs back, and that is happening now.

Manitowoc release second quarter figures

Manitowoc Co. Inc., manufacturers of tower cranes and mobile cranes, have announced their most recent sales figures, which are an increase on the last quarter, but still below last year's levels.

Manitowoc is based in Wisconsin, and is a major employer in Franklin County, where its plant is located in Shady Grove.

The sales figures that Manitowoc released are a 23 percent increase on the previous quarter, which is still 31 percent less than the second quarter of last year. During 2008, in the second quarter, Manitowoc sold cranes worth $1.1 billion; this second quarter saw sales of $425 million. Glen E.Tellock, Chairman and CEO of Manitowoc, said, The second-quarter crane segment results illustrate the continuing challenges of the current economic environment in which we operate.

The first part of 2009 saw Manitowoc cut the workforce at Shady Grove by 750 members of staff, whilst the share prices fell to a low of less than $5 per share, compared with the $40 per share which was quoted in 2008; at present, the shares are on the rise, with the current price being $10 per share. Like many other construction equipment manufacturers, Manitowoc is focusing on the developing markets, where the economic recovery has been much swifter than the US or Europe, with Trellock commenting, Similar to prior quarters, emerging markets such as Asia, Latin America, and the Middle East demonstrated positive signs of improvement, while demand in the developed economies of North America and Europe continues to be weak.

Eric Etchart, president of the Manitowoc Crane Group, says that the emrging and developing markets account for 40 percent of the crane orders that they are receiving currently, with the demand for tower cranes even on the rise in Europe. We're seeing better and better times, Etchart says, whilst still remaining cautious.

One problem is that companies and individuals wishing to order cranes are struggling to obtain the necessary credit. A sizeable order had to be removed recently because of what Tellock describes as, persistent financing challenges in the current credit markets.

The firms which supply equipment are also now likely to hold less stock, and are declining to purchase small cranes. While some recent positive indicators suggest a stabilization in certain mature markets, said Trellock, we remain guarded as we move into the second half of 2010. At the same time, we continue to drive the operational efficiencies, process improvements and cost reduction initiatives we implemented last year, which should provide enhanced profitability as demand strengthens across our business.

Ryder acquires new vehicles for rental fleet

Ryder have acquired 100 new trucks, after investing £4 million in expanding their stock available for rental. These include a number of vehicles from renowned truck trader DAF.

The new acquisitions include 7.5 ton boxvans, 18 ton boxvans, 44-ton tractor unit lorries and curtainsiders. Ryder's commercial vehicles sales director, Nigel Martin, indicated that many firms are opting for renting vehicles as opposed to purchasing one of the DAF trucks for sale, primarily due to the impact of the economic climate upon the haulage industry, saying, The trend for operators renting vehicles for six to 12 months is growing at a phenomenal rate, with many extending contracts for much longer.

Ryder's fleet now stands at 2200 vehicles, following this purchase and the £18 million replacement programme that they undertook in the spring. The importance of these refresher programmes was underlined by David Hunt, the vice-president and MD of fleet management solutions for Ryder Europe, who said, We are seeing a significant uptake in demand for premium quality Euro-5 vehicles, and this additional investment will ensure that Ryder is in a position to fulfil this increased demand.

DAF CF85 wins Fleet Truck of the Year for the third time

The Motor Transport Awards have awarded the Fleet Truck of the Year to one of the DAF trucks for sale, the DAF CF85, for the third year in a row, and it is the tenth time overall that one of the CF series has won the award. It is the first time in the quarter of century that the awards have been running that a hat-trick of consecutive wins has been achieved.

The trophy was presented to Ray Ashworth, the managing director of DAF Trucks UK, at a dinner and reception for 1400 luminaries of the industry.
Ashworth was delighted, saying, We are proud that the DAF CF85 has earned this important industry award. Everyone in our industry and throughout the DAF team recognizes the significance of this award since it is an accolade from the fleet operators themselves. To win in 2008, 2009 and 2010 – three of the most challenging years the UK transport industry has ever experienced – underlines the value of this award. It highlights the exceptional fuel economy and overall efficiency of the CF85, together with the outstanding in-service support provided by our nationwide network of dedicated dealers.

Greeneville plant wins safety awards for sixth year running

The North Carolina Department of Labour has lavished two safety awards upon NACCO Materials Handling Group's manufacturing plant in Greeneville. The plant makes Yale and Hyster lift trucks, and they pipped the Linde forklift to both the Gold Safety Award and the Million Award; the sixth year in a row that they have taken home the trophies. Colin Wilson, the chief operating officer and president for NACCO Materials Handling Group Americas, said, Our employees are our greatest asset, and their safety is our top priority. These awards demonstrate that commitment and also speak to the dedication of our employees, who partner with us to promote a safe work environment.

The success of the Greeneville plant's devotion to safety means that it is now eligible to apply for the Carolina Star program. The program is designed to eliminate accidents, and honour effective safety protocol and management, and is a collaboration between the North Carolina Occupational Safety and Health Division, and the upper echelons of company management. The requirements for receiving the Gold Safety Award are stringent; there must be a clean record of no fatalities in the last twelve months, and the rate of minor accidents must be no less than 50 percent below the industry average. The Greeneville facility's rate was more than 70 percent below the average. The Million Hour award has a more straightforward criterion; the facility must clock up 1 million work hours without illness or injury requiring a day off.

PACCAR show increase in second quarter revenue

The renowned truck trader and manufacturer PACCAR has revealed a upsurge in total revenue in the second quarter in comparison to the second quarter of 2009. The 2010 figures saw a total company revenue of $2464.1 million, a 33.3% increase on the $1848.9 million reported this time last year. The truck sector of PACCAR, primarily new and used DAF trucks, showed a healthy increase, with a total pre-tax income in the second quarter of $110.3 million, compared to only $7.4 million in 2009's second quarter.

The net income of PACCAR in the second quarter was $99.6 million, a sturdy increase compared to $26.5 million in the previous year. The end of quarter two saw them report total marketable securities and cash liquidity of $2.12 billion.

Mark C Pigott, the chairman and chief executive officer of PACCAR, said:

Paccar reported improved revenues and net income for the second quarter of 2010. Against a backdrop of global truck markets that are only gradually emerging from historically low levels, Paccar’s results reflect the benefits of higher truck and parts sales and improving financial services profits worldwide. Our customers are benefiting from increased freight tonnage, which has resulted in higher fleet utilisation rates, resulting in positive gains for our aftermarket parts sales. The US and Canadian truck market is gradually adjusting to higher priced vehicles resulting from the EPA 2010 emissions change. The European truck market is still lagging behind last year’s volumes, but DAF achieved a significant increase in market share, which has delivered improved financial results.

New excavator factory in Brazil for JCB

JCB's commitment to the global manufacture of excavators has been further underwritten by the opening of a new factory in Brazil, which has just produced its inaugural vehicle; a 20-ton tracked excavator. The JS200LC is now in the possession of Sao Paulo construction firm Jorcal Engenharia E Construções S/A, with the owner Renato Rédis stating that he is extremely pleased with his acquisition. The new factory is adjacent to JCB's backhoe loader factory in Sorocaba, and produced the first Brazilian-made tracked excavator; a model twice the size of a mini digger. JCB have also recently opened a new factory in the UK, in Uttoxeter. The opening of the Sorocaba excavator plant was marked by a ceremony attended by JCB's chief corporate development officer, David Bell, the regional director, Carlos Hernandez, and Vitor Lippi, Sorocaba's mayor. Hernandez said, The Latin American region is undergoing strong growth this year and our decision to constantly invest in the expansion of production capability will help us achieve our objective of maintaining business growth and increasing our market share in the region.

The factory was built in a mere seven months, and is replete with a training centre, in order to maximise the after-sales service for customers in Brazil.

New forklift fleet for Oakland 3PL

Oakland International is a 3PL (third party logistics)solutions firm based in Redditch, Worcestershire, and its speciality is the storage and distribution of food products, with storage temperatures ranging from ambient to chilled and frozen. The demand for such a solutions provider has been growing to the extent that the firm has refurbished its storage facility, which stands at 135,000 square feet, in order to maximise the narrow aisle storage space. Oakland's general manager Ed Ross said, Because of the premium costs involved in providing chilled storage, it is important that we make maximum use of the space we have available so it made sense to expand our narrow aisle store.

The facility is now a combination of both narrow and wide aisle storage space, but with an emphasis on the narrow aisle. This allows the pallet capacity to be increased by a fifth, bringing the capacity up to 8000 racked pallets. The increase in narrow aisle storage required an another increase; more narrow aisle forklifts. Furthermore, the new vehicles needed to be able to operate effectively in both narrow and wide aisle contexts. Oakland embarked upon a sequence of research, evaluation and analysis, and eventually decided upon a fleet of Flexi EURO articulated forklifts, supplied by Narrow Aisle Ltd. The Flexi EURO is compact and manoeuvrable, and is capable of lifting 1600 Kg to a height of more than 8 metres.

The combination of increased narrow aisle storage, with the manoeuvrability of the trucks has allowed Oakland to optimise the efficiency of their storage as well as the accessibility of their stored pallets. The efficiency of the Flexi trucks has increased the throughput of the site to more than 10 pallets per truck per hour, which has led to a major improvement in cost efficiency. The stainless steel and zinc-coated Flexi trucks are able to work in freezer conditions and are electric powered. Ed Ross detailed how pleased Oakland are with the results, saying:
Our investment reflects the company's overall approach to safe productive working, reducing costs and delivering improved value that will directly benefit Oakland customers. It also takes into account our desire to support Oakland employees, by providing state of the art equipment to help them undertake a range of materials handling operations, with the end result being improved operational functionality, flexibility and efficiency. Once we had decided that articulated forklift truck technology represented the best materials handling solution for us we reviewed and tested the various brands of articulated truck on the market. The case for the Flexi was, in our opinion particularly strong. One of the most impressive aspects of the truck's design was the ease with which batteries are changed which minimizes truck downtime between charges.

The Sales and Marketing Director of Narrow Aisle Flexi, John Maguire, said, We are delighted to be working with Oakland to provide a solution for the company's materials handling needs. The Flexi truck is popular among 3PLs who need to maximise storage density and require safe and efficient throughput and Oakland were quick to realise the benefits that articulated truck technology could bring to their operation.

Tough task ahead for new Caterpillar Inc. CEO

The earnings per share targets inherited by Caterpillar Inc.'s new CEO Doug Oberhelman are unlikely to met, according to analysts of the financial markets. The 2012 target, which Oberhelman was bequeathed by his predecessor Jim Owens, is for earnings to be between $8 and $10 per share. Analysts who have been studying Caterpillar's figures have predicted an average earning of $6.08 per share, which is 32 percent less than the target.

The demand within the construction equipment market is once again growing, after the recession, and Caterpillar, as the largest manufacturer of such equipment in the world, as demonstrated by the ubiquity of the Caterpillar excavator, has announced a $1.5 billion investment in order to raise the level of output and meet the demands. Investors in the company are worried that there may be a repeat of the previous period of sales growth, when Caterpillar, famous for its diggers for sale, managed to fail to show a significant profit.

Of all the industrial companies in the USA, Caterpillar Inc. is the second largest debtor, after General Electric Co., and as such is watched carefully by Joel Levington, one of the Managing Directors of Corporate Credit at New York's Brookfield Investment Management Co. Levington says, Show me that you can improve your inventory management, manage your raw-material inflation and show me you can expand operating margins. You need more than just revenue growth.

The second quarter results are due to be announced by Caterpillar, and as yet, Caterpillar have refused to comment on speculation regarding their earnings per share.

Andrew Casey, an analyst for Boston's Wells Fargo, observed, If the company produces higher-than-anticipated earnings in the short term as we expect, investors may begin to place a higher probability on Caterpillar’s ability to achieve its longer-term revenue and earnings targets.

Whilst sales have have grown steadily, with data compiled by Jefferies and Co. showing that a 24 percent increase between 2006 and 2008, Caterpillar's profit margins plateaued, as they paid more to suppliers in order to speed up their acquisition of parts, and the price of raw materials rose. Demand for Caterpillar products rose throughout 2007/2008, but as they increased production to meet those demands, so did their expenditure. Mark Demos, a portfolio manager for Fifth Third Asset Management Inc., which, as part of the $17.8 billion under their management, holds an interest in Caterpillar to the tune of 125,379 shares, said, They tried to produce too much in too little time.

In terms of their competitors, Komatsu Ltd., the Japanese firm, increased both earnings and revenue between 2006-2008, by 83 percent and 39 percent respectively. Deere and Co., makers of John Deere tractors, also saw a 2006-2008 increase in profit, by 21 percent, and sales, by 30 percent. However, Caterpillar have climbed this year on the Dow Jones, after gaining 17 percent; Deere and Co. also climbed, by 12 percent, whilst Komatsu dropped by 11 percent. Caterpillar's nascent resurgence can be attributed to measures taken in the last two years, particularly improving production capacity, and streamlining both its supplier base, and its methods of purchasing raw materials. Robert Wertheimer, an analyst with Morgan Stanley, commented, A lot of ground work has been laid. What the company needs to do is execute.

However therre are risks inherent within the recovery. Almoost two thirds of Caterpillar's revenue in the first quarter of the year came form outside the US and Canada. The International Monetary Fund has forecast that global growth will be in excess of earlier projections, but also issued warnings that the economic problems of Europe could still affect the capital which is being pumped into the emerging markets, particularly of Asia. Jeff Windau, an analyst for Edward Jones and Co., said, We need to a have a really strong economic recovery” for Caterpillar to hit its 2012 earnings target. It’s an aggressive goal.

However, Ann Duignan, an analyst at JPMorgan Chase and Co. in New York, thinks otherwise, commenting that earnings of $8 per share, may not be as big a stretch as some believe, before predicting earnings of $8.69 per share. We believe the market is overlooking what could turn out to be the beginning of the next multi-year construction cycle in the U.S, she commented.

Doug Oberhelman earned a degree in finance from the Millikin University in Illinois in 1975, and began working for Caterpillar in the same year. From 1998 until 2001 he was the vice president of the engine unit, and under his stewardship, the engine unit increased its profitability. He now has a big job on his hands, after taking over form Jim Owens as CEO. Eli Lustgarten, an analyst for Longbow Research, offers this comparison, Owens tends to be more cerebral. Oberhelman will be more focused on operations and improving profit.