Volvo CE President and chief executive Pat Olney has used a press conference in Miami to confirm his belief that the recovery in the North American construction equipment market is gathering momentum. His comments were to a group of leading American business journalists attending an event on sustainability during the Miami stopover of the Volvo Ocean Race – Compact Equipment’s own Kelly Pickerel was in attendance. Olney noted shortly after that the company posted a spectacular 111 percent uptick in North American revenues in the first quarter of 2012.

“Demand for construction equipment in North America jumped 35 percent during the first three months of the year,” Mr. Olney stated. “This shows us that the recovery that began last year is gathering pace and that our earlier forecast of a 15 to 25 percent year-on-year improvement for 2012 is attainable.”

Volvo CE’s North American performance during the quarter helped the company to a 17 percent increase in global net sales and to post record levels of profitability for a first quarter.
 
Mr. Olney (pictured) used the press event, held today, May 17th, to emphasize the company’s commitment to the environment and sustainability. He drew journalists’ attention to Volvo CE’s Stage IIIB/Tier 4i emissions compliant range of engine systems -- and highlighted the more than 60 new fuel-efficient products that are being introduced to the global range in 2012. These products form part of the most fundamental overhaul ever of the company’s product portfolio -- and will go some way to helping Volvo CE achieve its WWF Climate Savers commitment of reducing CO2 emissions from its machines sold between 2009 and 2014 by 15 million tons.

“Volvo Construction Equipment is in a good position to capitalize on improving market conditions in North America,” said Mr. Olney. “We are outperforming the market conditions by offering a young fleet of innovative products tailored to meet the needs of specific customer groups, combined with a strong and loyal distribution network and a substantial investment program.

As previously announced Volvo CE is spending $100 million in a product and manufacturing expansion program at its North American facilities. The latter investment will see its facility in Shippensburg expanded to accommodate production of Volvo wheel loaders, excavators and articulated haulers -- adding 16 new machines to the 50 road machinery products already produced at the plant. A world-class customer and demonstration center will also be built in Shippensburg.

“After a protracted downturn we have every confidence that the North American market is well on the road to recovery,” Mr. Olney stated. “We are continuing to invest throughout the business cycle in our people, our production facilities and distribution networks. With a technologically advanced fleet of innovative -- and award winning -- products, we have made a strong commitment to the Americas and regard it as a home market for the company.”

The KWIK-WAY rotary rock picker is the world’s first rotary rock picker for skid loader use. Now farmers and landscapers can pick up rocks with ease. This means picking rocks two to three times faster than the rock bucket. The KWIK-WAY rotary rock picker will fit on any skid loader with a quick-attach plate. This design is modeled after the rotary combine, which we all know revolutionized the farming and construction industry.

Made of heavy duty steel and engineered with patent pending technology, the KWIK-WAY rock picker will last the average farmer or construction company a lifetime. Farmers and construction workers can now pick rocks with ease. Simply scoop, spin and the rock is picked and cleaned. Tough rocks barely visible in the ground can be scooped up along with pieces of wood, tin cans, hub caps and any other debris, cleaned and moved to the designated worksite.

For more information, go to www.kwmanufacturing.com or watch the video below.

Nationwide housing production gained 2.6 percent from an upwardly revised pace in March to hit a seasonally adjusted annual rate of 717,000 units in April, according to newly released figures from the U.S. Census Bureau and HUD. This modest gain was seen in both the single- and multifamily sectors, which registered growth of 2.3 percent and 3.2 percent, respectively.

“April’s increase in housing production comes on top of strong upward revisions to the previous month’s data, and is an encouraging sign that we are returning to a gradual, upward trend that should continue in the year ahead as builders respond to improving demand for new homes in certain markets,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a homebuilder from Gainesville, Fla. “Unfortunately, overly restrictive lending conditions for builders and buyers are slowing the pace of this trend considerably.”

“While still less than half the pace of what we would expect in a fully healthy market, the rate of housing production in April was very solid for this point of the recovery and in keeping with the findings of our latest builder surveys that have registered modest improvements in buyer traffic and near-term sales expectations for single-family homes,” said NAHB chief economist David Crowe.

The 2.6 percent gain in housing production this April was due to a 2.3 percent increase on the single-family side to a seasonally adjusted, annual rate of 492,000 units and a 3.2 percent increase on the multifamily side to a 225,000-unit rate. Regionally, starts were mixed in April, with the Midwest and South posting gains of 6.7 percent and 11.6 percent, respectively, and the Northeast and West posting respective declines of 20.7 percent and 8.1 percent.

Permit issuance -- which can be an indicator of future building activity -- fell 7.0 percent to a seasonally adjusted annual rate of 715,000 units in April following an unsustainably large gain in the previous month. The decline was entirely on the more volatile multifamily side, where permits fell 20.8 percent to a 240,000-unit rate that is essentially back to trend. Single-family permits gained 1.9 percent to 475,000 units. Regionally in April, permit activity held unchanged in the Northeast while declining 12.3 percent in the Midwest, 3.2 percent in the South and 13.9 percent in the West, respectively.

Associated Builders and Contractors (ABC) recently released its Construction Backlog Indicator (CBI) for the first quarter of 2012. CBI declined 5.4 percent from the previous quarter, dipping from 7.8 months to 7.4 months, but is slightly higher compared to the first quarter of 2011. CBI is a forward-looking economic indicator that measures the amount of construction work under contract to be completed in the future.

“On the heels of a mixed bag of national economic news, CBI declined for the second quarter in a row,” said ABC chief economist Anirban Basu. “The lull in nonresidential construction momentum is not poised to end in the immediate term. The nation’s nonresidential construction activity will remain soft during the summer months, with flat to declining nonresidential construction spending.

“The ongoing instability in the nation’s nonresidential construction industry appears to be related to the period of economic weakness that developed in the broader economy last year, as well as concerns regarding export growth due to recessionary forces in Europe,” Basu said. “The result is that many prospective construction projects were cancelled or postponed.”

Regional Highlights

• Compared to the first quarter of 2011, construction backlog is slightly higher in every region with the exception of the Northeast.

• In the West, construction backlog expanded by 0.46 months from the fourth quarter of 2011 to the first quarter of this year.

• The Middle States have the shortest backlog at 6.34 months and the South continues to register the lengthiest backlog at 8.88 months.

For regional trend data, go here.

Industry Highlights

• During the first quarter of 2012, average construction backlog for commercial and institutional, and heavy industrial declined by less than half a month. Infrastructure fell by .52 months.

• The commercial/institutional segment of construction backlog expanded from 7.26 months in the first quarter of 2011 to 7.65 months in the first quarter of this year.

• Average construction backlog in the heavy industrial category slipped to 5.24 months this quarter — the worst performance in the history of this segment.

For industry trend data, go here.

Highlights by Company Size

• Construction backlog for mid-sized firms with annual revenue between $30 and $50 million expanded substantially, rising nearly two months during the first quarter.

• Construction backlog declined for firms with less than $30 million in annual revenue to an average of 6.72 months.

• Firms with annual revenues in excess of $50 million have not experienced backlog expansion during the past year.

Representatives from Terex Woodsman  recently attended a Terex Aerial Work Platforms' hosted event to present and demonstrate its product offering and equipment to rental houses.

Both Barry DeLau, global sales and marketing director, and Danny Thiros, regional sales manager, were invited to give an overview of the Terex Woodsman product portfolio and demonstrate at the “Partners in Performance” 2012 Meeting at the LaCosta Resort in Carlsbad, Calif., from May 7-10.

This is an annual two-day event hosted by Terex AWP. One of its major rental store equipment providers was invited to attend a two-day meeting. This event showcased the many new products available to them via Allied Vendors or other Terex owned companies such as Terex Woodsman.

Thiros said, “This was a great opportunity for us to interact with rental houses, discuss the Terex Woodsman product offering and show the capabilities of  the brush chipper product range available to the rental market.”

On day one, Terex Woodsman had the opportunity to present to a global audience of 32 rental managers, giving a company overview and show the breadth of the product portfolio. On day two, the Woodsman 710 brush chipper was displayed and gave the rental houses the ability to ask questions and see the full capabilities of the product.

DeLau said, “This was a very positive event for us, we have had great exposure to global rental houses and  have already been asked for several extended demonstrations of our brush chipper product line.”

An excellent Death Cab for Cutie song sets the perfect mood for this JCB video, focused on showing off its skid steer/track loader manufacturer facilities in North America. In 1993, JCB entered the skid steer market with the first mono-boom, side-entry skid steer, a design based on the company’s telescopic handlers. Over the years, JCB’s skid steer line has evolved, going from the Series I and Series II machines to today’s New Generation models.

The New Generation line, initially introduced in November 2010, includes both large and small platform models offering vertical or radial lift. Today, JCB’s skid steer and track loaders provide 270 degrees of visibility giving a 60 percent better advantage than the competition, says the company. JCB also says its skid steer has a cab up to 46 percent larger, SAE service ratings up to 24 percent better and 16 percent better fuel economy for the lowest operating costs in the industry. JCB’s skid steers are designed to compete within the active North American marketplace, as well as worldwide.

They’re also designed down in Savannah, Ga. Watch the video below to learn more.

It seems almost every week here at The Machine Works blog we run a story about Case IH giving away some cool piece of machinery. This week is no different. As part of its ongoing commitment to help agriculture producers be ready to address the challenges and opportunities confronting the industry, Case IH awarded nine new Farmall tractors to the runners-up of the 2012 American Farm Bureau Federation (AFBF) Young Farmers & Ranchers (YF&R) awards. One of those tractors, a Farmall 65A, was recently delivered to Kirk and Stephanie Liefer of Red Bud, Ill., for being a national finalist for the YF&R Achievement Award.

The winners, announced at the AFBF’s 93rd Annual Meeting on Jan. 9 in Honolulu, Hawaii, were selected based on the success of their operation combined with the strength of their leadership skills. 

“These finalists truly represent the kind of leadership abilities farmers will need to keep up with the evolving agriculture industry,” says Scott Raber, Case IH regional sales director. “We are proud to sponsor them as they continue growing in this rewarding business.”

The Liefers, along with their five children and Kirk’s parents, grow corn, beans, wheat, seed beans and seed wheat.

“Applying for the Achievement Award gave us a good opportunity to look back on where we started and where we are now,” says Kirk Liefer. “And we wouldn’t be where we are now if it wasn’t for Farm Bureau fighting for us.”

Case IH dealer Mascoutah Equipment in Mascoutah, Ill., delivered the new Case IH Farmall 65A to the Liefers on April 18. This is the Liefer’s first Case IH tractor, and they plan to use it for moving augers, unloading grain and mowing.

“We can’t say enough about Case IH for supporting Farm Bureau,” Kirk Liefer says. “We have to train the next group of leaders to handle the upcoming challenges, and I think it’s great that they sponsor this development.”

Starting with Farm Bureau’s Agricultural Leaders of Tomorrow program, Kirk Liefer has become a county board member and state committee member. Currently, he serves as president of the Randolph County Farm Bureau and participates in state and national meetings. While the Liefers enjoy the networking within Farm Bureau, they also participate in their church and children’s schools. Stephanie sits on the St. Clement Community Health Foundation board that provides scholarships and grants to people in the healthcare field. They also speak to students of all ages through the Agriculture in the Classroom program.

Chevron Products Company, maker of the Delo brand of technologically advanced engine oils, lubricants and coolants, has announced its second Delo Big Bass Boat sweepstakes. Beginning May 1 through September 30, participants can register at ChevronDelo.com for the chance to win a fully equipped 2012 ZX190 Skeeter bass boat and other prizes.

“Fishing is an American past time that’s near and dear to many people who use our Delo products,” said Jim Gambill, Delo brand manager, Americas, Chevron Products Company. “That was clear when last year’s event generated a level of participation and excitement that was beyond our expectations. Bringing back this sweepstakes is a great way for us to show our appreciation to the hard working people in the markets we serve.”

The Delo Big Bass Boat Sweepstakes prizes include:

• Grand Prize: Fully outfitted 2011 ZX190 Skeeter bass boat (approximate retail value $32,000)
• 1st Prize: An all-expense paid trip to appear on the “Honey Hole All Outdoors TV Show” – with host and bass professional, Bill Wilcox (approximate retail value $15,000)
• 2nd Prize: Four winners will receive a $500 Visa gift card each (approximate retail value $500 each)

The Delo Big Bass Boat sweepstakes in open to legal residents of the United States and Canada who are considered legal adults in their state or province at the time of the commencement of the sweepstakes. No purchase required to participate in sweepstakes.

Wacker Neuson is traveling all over the country to meet its customers. The company announced at World of Concrete that it would be deploying a customized 53-ft trailer complete with over 70 machines and displays that will cross the country in 2012. Working with local dealers, this traveling trade show will bring Wacker Neuson equipment and jobsite solutions to contractors allowing them to get to know their dealer and Wacker Neuson equipment in a no-pressure environment.

In 1957, Wacker Neuson (then Wacker), started its first On the Road campaign. It was one guy -- Hermann Wacker -- with one product -- the industry’s first rammer -- and one family station wagon -- traveling across the country introducing a new way to improve productivity, one jobsite at a time. In 2012, Wacker Neuson will be On the Road again, but the station wagon is now a 53-ft trailer, decked out with all the latest Wacker Neuson products and jobsite solutions.

Join the fun. Attending a Wacker Neuson road show could mean winning a door prize, having a great lunch, networking with other contractors and finding great deals on construction equipment all in a no-pressure environment. To find out when the Wacker Neuson On the Road truck will be a dealership near you, visit www.WN-OntheRoad.com. To see what it’s like, enjoy the video below.

Constrained public budgets and a growing recognition at the local level of the importance of infrastructure -- combined with lack of action at the federal level -- are causing states, regions and cities across the United States to seek innovative infrastructure approaches and solutions. Local governments are utilizing a range of strategies, including ballot measures taken directly to the public, increased utilization of technology and pricing and public-private partnerships, according to Infrastructure 2012: Spotlight on Leadership, recently released by the Urban Land Institute (ULI) and Ernst & Young LLP.

This year’s report looks at an overall decline in infrastructure funding globally, and it focuses on funding solutions underway in the United States. Even as efforts to increase infrastructure revenues at the federal level remain stalled, states and localities are looking at other ways of overcoming fiscal woes in an effort to move forward with projects that can lay the foundation for economic growth. State and local governments are funding critical infrastructure building or refurbishment needs with increased sales or gas taxes, bond issues and user fees, including tolls. Public-private partnerships are a growing part of the equation.

Infrastructure 2012 notes that in many localities, people are voting to raise taxes for infrastructure investment -- from 2008 through 2011, ballots allocating funds to transit capital or operations had a 73 percent success rate. More than a dozen states have raised fuel taxes over the past year, and drivers nationwide are accepting higher tolls for roads and bridges. Local governments are taking advantage of tax increment financing and special assessment districts as well as public-private partnerships, while exploring alternative sources of private investment such as sovereign wealth funds and pension plans.

The study highlights six case studies showing how local and regional governments are moving forward with much-needed infrastructure investments such as transit, ports, bridges, roads, parks and water supply. “Global economic competitiveness demands new kinds of regional entrepreneurship,” the report states, noting that each of the case studies can provide insight and inspiration for other localities seeking infrastructure solutions.

Examples Cited Include:

• North Carolina’s Research Triangle is raising local funds for a planned regional transit system spanning three counties. In late 2011, one of the three counties (Durham) passed a ballot referendum to fund its portion of the system; now the other two must follow suit.
• Ballot measures also are being used in Oklahoma City, which has achieved success with bundling proposed civic projects into short-term, focused packages and subjecting them to a vote. The city’s third Metropolitan Area Projects initiative passed in late 2009 and is generating $777 million for downtown parks and other civic infrastructure.
• In Los Angeles, strong leadership from public officials and grass-roots campaigning supported a $40 billion ballot initiative, Measure R, to fund critical transportation investments.
• In northeastern Illinois, a broad regional effort has produced a new plan to ensure future water supply.

The report calls out New York City as a national infrastructure innovator, citing its investments in the World Trade Center transit hub, the long-awaited Second Avenue subway, the Long Island Railroad tunnel under the East River into Grand Central Station, and planned replacement of the Goethals and Tappan Zee Bridges. Chicago is also taking a new infrastructure investment tack, with its aggressive $7.2 billion Building a New Chicago plan and the Chicago Infrastructure Trust.

“Progress often precipitates from failures – tough times have a way of helping reshape priorities,” said ULI Senior Resident Fellow Maureen McAvey. “Local governments are stepping up to the plate, assuming more responsibilities and leveraging many sources of funding to build the infrastructure to bolster flagging economies and position for the future.” Still, she noted, without a clear federal policy, these localized, ground-up approaches are limited in their effectiveness. “Lack of a clear federal direction for policy and funding can create uncertainty and inertia that undermines progress,” McAvey said.

As in previous years, the 2012 report stresses that the U.S. continues to lag behind its global competitors in infrastructure funding. However, this year’s report points to a marked spending decline in Europe, which has been reeling from the debt crisis, and is adopting austerity measures as a result of the crisis.