Reporter

|  February 01, 2010 |

By Equipment World Staff
 
 
Wells Fargo forecast: improving, but still pessimistic

In an email survey conducted during the first two weeks of January, Wells Fargo questioned both contractors and equipment dealers about their outlook for 2010. The result is a combined Optimism Quotient of 66, much higher than last year’s 42, but still decidedly cool.

Most respondents – more than 76 percent – say they expect their local non-residential construction activity to remain the same or decrease compared with 2009. Of the 24 percent of respondents who said they expected an increase, 55 percent are pinning their hopes on the second quarter of 2011 or later.

But there are some good survey results for manufacturers and dealers. Around 62 percent of contractors said they intended to buy new equipment this year, with another 61 percent saying they would buy used equipment. Dealer respondents reflect this, with more than 36 percent saying they expect to increase new equipment sales this year compared with 2009. Another 52 percent of dealers say their used equipment sales will increase.

Wells Fargo also announced it will conduct its forecasts quarterly in 2010, instead of annually.

– Marcia Gruver

 

Industry briefs

Cat: 2010 sales up 10 to 25 percent

Cat says it expects 2010 sales and revenues to increase 10 to 25 percent, compared with 2009. While most of this improvement is expect to be in China and developing countries, the company also mentioned North America market improvements for the first time since 2008’s rapid third quarter descent. Cat, however, expects the North American, European and Japanese economies to remain weak.

Specific areas showing improvement include a “marked increase” in mining equipment demand and aftermarket service parts, which Cat cites as an early indicator of improved market conditions.

Cummins names new presidents

In March 2010, Rich Freeland will succeed Jim Kelly as president of the Cummins engine business. Anant Talaulicar will assume Freeland’s current role as president of the components business while maintaining his current role as managing director of Cummins India.

Kelly assumed the role of engine business president in May 2005 and leaves his role this year to lead several cross-business strategic projects. Freeland has served in his current role since February 2008. Talaulicar joined Cummins in 1986 and been with Cummins India since September 2004.

 

Correction:

In the January Owning and Operating costs article on single drum rollers we mistakenly put the fuel usage at 0.5 gallons per hour. That figure should be 0.05 x engine horsepower x $2.75 per gallon. The hourly cost totals were not affected. We regret any confusion the error may have caused. EW

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