CNH Parts & Service 2011 Trade Fair: Building On A Strong Foundation

CNH Parts & Service, the product support arm of agricultural and construction equipment maker CNH Global N.V., recently concluded its 2011 Trade Fair at the Gaylord Opryland Resort & Convention Center in Nashville, Tenn. The event brought together nearly 2,500 agricultural and construction equipment dealers from across the U.S. and Canada.

The 2011 Trade Fair gave dealers and their employees a chance to see the latest products from CNH Parts & Service, and to meet with the sales, marketing, training, engineering and supplier teams who support the dealerships that represent the CNH family of brands: New Holland Agriculture, New Holland Construction, Kobelco, Case IH and Case Construction.

"This trade fair has been extremely beneficial," said Eric Bippus, Vice President of Sales and Marketing for CNH Parts & Service and host of the event. "By bringing everyone together in Nashville, we were able to provide our dealers with a wealth of new information and knowledge that can help them grow their parts and service business."

From business growth opportunities to the latest high-tech products like precision farming and the new Tier 4 engines, the trade fair floor featured more than 140,000 sq ft of product exhibits, staffed by supplier representatives and CNH parts and service experts who offered one-on-one product training and answered questions. Dealers also had a chance to hear and learn from the company's brand leaders, as well as CNH CEO Harold Boyanovsky.

Showcased throughout the exhibit hall was the latest farm and construction equipment from New Holland, New Holland Construction, Kobelco, Case IH and Case Construction. Exhibits also highlighted the wide range of programs and services designed to boost in-store sales: a state-of-the-art service center, seasonal displays and promotions, highly effective parts and service merchandising concepts, and more.

The event also provided dealers with ample opportunities to learn about the company's product support and business development programs, with in-depth breakout sessions, on-floor learning workshops and one-on-one product demonstrations. Several representatives from CNH Capital, the captive-financing arm that supports CNH and its brands, also offered a series of informative seminars designed to help dealers understand how CNH Capital's financing and insurance programs are working to improve the dealer's overall business.

The 2011 CNH Parts & Service Trade Fair took place Jan. 26 - Jan. 30, 2011 and was divided into two sessions.  New Holland Agriculture, New Holland Construction and Kobelco dealers attended the first session from Jan. 26 ‑ 28. The second session took place from Jan. 28 - Jan. 30 and included Case IH and Case Construction equipment dealers.

“Each session was specifically designed to meet the needs of the dealers who represent the CNH family of brands,” said Bippus. “They met with CNH leaders, support teams, as well as representatives from more than 120 suppliers and vendors. In fact, more than 300 resource people were on hand at any given time to help dealers explore the many new ways we can help them grow their parts and service business.”

The event concluded with a riveting presentation by Commander Kirk S. Lippold USN (Ret.), who was Commanding Officer of the USS Cole when the ship was attacked and bombed on Oct. 12, 2000 during a refueling stop in the Yemeni port of Aden, killing 17 U.S. sailors. Lippold drove home the importance of training and preparedness, and the need for all team members, regardless of rank, to step up as leaders, by acting quickly and decisively, while keeping an eye on what lies ahead.

"At the end of the Trade Fair, the dealers returned to their markets with a clear understanding of how CNH Parts & Service is working with our suppliers and commercial brands to support their growth," concluded Bippus.

Highway Funding, A Statement from AEM

News that the House Appropriations Committee intends to cut the federal transportation budget by 17 percent is discouraging and raises questions about what is – and isn’t – actual deficit spending. The Highway Transportation Fund is not deficit spending, it’s the people’s money.

"America’s commuters have paid their fair share into the Highway Trust Fund for the 2010-11 fiscal year through a dedicated 18.4 cent federal fuel and 24.4 diesel tax, and they deserve to see a full return on their investment," said Association of Equiment Manufacturers (AEM) President Dennis Slater. "The nation’s highways, roads and bridges do not require 17 percent less repair today than yesterday. The average commute time is not 17 percent shorter nor are America’s manufacturers and farmers able to transport goods 17 percent more efficiently.

"Americans were promised that their hard-earned contributions to the Highway Trust Fund would be dedicated to the maintenance and improvement of our nation’s transportation infrastructure, and not to deficit reduction or any other purpose, and they should not be short-changed.  That promise should be kept."

Loading Up on the Web -- 2011 Edition

Happy New Year!...Er, wait. It's February. We've been so busy in the Compact Equipment offices that we can't believe the first month of 2011 is in the books. After putting together a most excellent, and extensive, 2010 Ultimate Equipment showcase -- a web exclusive -- in December, we delivered an awesome and informative January issue that investigated engines and just put the finishing touches on our February issue.

Regular readers of the Machine Works Blog will know that we've also been lean, mean posting machines -- putting news online before it's even marked as read in our inboxes. In case you've been hard at work or trapped in an ice storm, we've compiled the hottest topics from the last month.

As always, follow us on Twitter @Compactequip and feel free to leave a comment below any story.

Toro Selects Winner of 2011 Super Bowl Sports Turf Training Program -- One student will help prepare the field at Cowboys Stadium in Arlington, Texas, February 6 for Super Bowl XLV. The Toro Co. is pleased to recognize Casey Dallas as the recipient of its annual Toro Super Bowl Sports Turf Training Program.

Daimler Trucks North America Celebrates Production of 1,000th Hybrid Electric Vehicle -- The green vehicle movement is trucking along at Daimler Trucks North America (DTNA). A few days ago, the company marked the production of its 1,000th hybrid electric vehicle with a celebration at its Mt. Holly, N.C., plant. The 1,000th vehicle -- a Freightliner Business Class M2 106 Hybrid truck -- is manufactured at the Mt. Holly location

Rental Rebounds in 2011, Say Industry Experts -- A large majority of rental store owners and managers — more than 80 percent — expect 2011 to be a much better year than 2010 according to the latest quarterly American Rental Association (ARA) Economic Survey of members.

More Construction Companies Plan to Hire, Instead of Cut Workers in 2011 -- More construction firms are planning to hire workers this year than are planning to make layoffs, according to the results of an industry-wide survey released earlier this week by the Associated General Contractors of America and Navigant. The survey, conducted as part of the Construction Industry Hiring and Business Outlook, shows the industry may finally be emerging from a severe downturn that has left millions of skilled workers unemployed.

ABC Challenges the President to Fix Regulations Impacting the Construction Industry -- “Mr. President, the nation’s construction industry is prepared to hold you to your word,” said 2011 ABC national chairman Michael J. Uremovich, president of Great Lakes Energy Consultants, LLC, Manhattan, Ill. “The construction industry has been hard hit by the economic downturn with an unemployment rate of 20.7 percent – more than twice the national average,” said Uremovich. “Unnecessary and burdensome regulations have stifled the industry’s recovery and its ability to grow. The president must now make the necessary changes to federal regulations and the rulemaking process to get construction workers back to work.

Win a Hunting Trip with Ted Nugent at CONEXPO -- It's a hunter's dream come true: a three-day hunting trip for you and a buddy at the famed Y.O. Ranch in Mountain Home, Texas, with Ted Nugent as your hunting host.

Caterpillar Announces Sweepstakes to See New Cat Vocational Truck at CONEXPO -- Want to win a trip to Sin City? Before you pack your bags, head on over to www.DriveCat.com for your chance to win a trip courtesy of Caterpillar. The company is set to unveil the first model in its full line of Cat Vocational Trucks, the Cat CT660, in Las Vegas at CONEXPO-CON/AG in March. As part of the celebration, Caterpillar is holding an online sweepstakes featuring a trip to Vegas.

Pain at the Pump -- Gas prices are once again in the headlines. And it looks like the diesel prices are also on their way up for 2011. Projected retail diesel fuel prices average $3.14 per gallon for this winter, an increase of 35 cents per gallon over last winter, according to the U.S. Energy Information Administration. In 2011, higher crude oil prices combined with higher refiner margins push annual average prices for motor gasoline and diesel fuel to $3.00 and $3.23 per gallon, respectively.

FMI’s 2011 U.S. Markets Construction Overview

FMI, one of the largest provider of management consulting and investment banking to the engineering and construction industry, released its 2011 U.S. Markets Construction Overview, offering insight into some of the engineering and construction industry’s most complex business challenges.

This year’s Overview consists of three major pieces: a compilation of trends in the current environment, important issues facing nine client groups served by FMI and the fourth quarter 2010 economic forecast.

A few of the more interesting tidbits included a section on Social Marketing. Facebook, Twitter, YouTube, etc. have all been name dropped in the past year in the construction business -- and with good reason. FMI's report states that, "Companies from all industries with high social media activity averaged an 18 percent increase in revenue last year, according to the American Marketing Association. The construction industry as a whole has been slow to use social media. However, plenty of firms have started to embrace it and gain success from its use. Architects and engineers have been quicker to adapt and utilize social media than contractors. However, a large number of project owners are already utilizing social media, making it imperative that contractors stay ahead of the curve by also adapting to some forms of social media in their strategic marketing plans."

In the "Construction Outlook" section, FMI states that, "The construction industry should prepare for another year of decline in nonresidential construction." Similarly, the nonresidential sector is projected to decline only 2 percent in 2011, following its 15 percent drop in 2010. Transportation construction (up 4 percent) and amusement and recreation (up 5 percent) were the only segments to experience growth, according to the report.

For more information about FMI's report, contact Kelley Chisholm at (919) 785-9215 or kchisholm@fminet.com.

Manufacturing Outlook for 2011, Promising Though Slight

For many manufacturers, the past few years have been about restructuring operations and maximizing procedures to create manufacturing efficiencies that keeps up with demand without more units than needed. Seeking Alpha predicts that 2011 will bode well for manufacturers, even if the uptick is small.

The story indicated that "The U.S. Investment Index, which measures domestic spending expectations among manufacturing executives, found 80 percent expecting more capital investment by their companies in 2011 than in 2010. That was up from the most recent cyclical low of 47 percent in the September 2009 survey."

There was a rise in research and development (R&D), according to 70 percent of those polled in the survey -- a drastic improvement from the 49 percent executives anticipating R&D investments in Sept. 2009.

The Institute for Supply Management (ISM), a major industrial trade group, also stated that " Manufacturing sales should rise by 5.6 percent in 2011, with sales growth in the services sector hitting 3.4 percent compared to just 0.2 percent  in 2010. On the negative side, ISM's survey director, Norbert Ore, warned that a large portion of the growth in sales revenue would likely be the result of price increases, not gains in volume."

Click here to read the full story.

The CONEXPO-CON/AGG App

Anyone who has attended CONEXPO-CON/AGG knows how hard it can be to navigate your way through the monstrous booths and sea of attendees. This year, you'll have a guiding light to make your way through the largest tradeshow in North America thanks to a new smart phone app powered by Cummins for iPhones and Android-based phones.

The features of the app include:

Interactive show floor maps
Listings of all exhibitors, events and speakers
A daily schedule planner
Up-to-the-minute Twitter feed for the show

Through the app's exhibitor listings you can add exhibitors to your must see list for quick and easy reference. In addition, you'll see the locations of exhibitors you have marked through the app's interactive maps feature.

The scheduling feature of the app allows you to quickly view your day's schedule, whether it's an official CONEXPO-CON/AGG education session, or just lunch with an old friend. In addition, you can view descriptions of events as well as speakers' bios.

The smart phone app is available for immediate download and is continually updated with new exhibitor and event information. For smart phones other than iPhone and Android, browse to www.conexpoconagg.com/m for an online version of the app.

Rental Rebounds in 2011, Say Industry Experts

A large majority of rental store owners and managers — more than 80 percent — expect 2011 to be a much better year than 2010 according to the latest quarterly American Rental Association (ARA) Economic Survey of members.

More than 34 percent of ARA general members responding to the survey expect rental revenues to show double-digit increases in 2011 versus 2010 and another 46 percent expect at least single-digit increases this year.

The results show a growing optimism for a significant rebound in 2011 as only about half of the respondents said revenues increased in 2010 compared to 2009. Nearly 30 percent of the respondents had revenue declines in 2010, but only 4 percent expect a drop in revenue in 2011.

Nearly 70 percent of the respondents also expect to spend more on new rental equipment purchases in 2011 compared to 2010, a significant increase over last year.

The spending expectations of general members also match up with the sales forecasts of ARA associate member equipment suppliers as more than 83 percent of the associate member survey respondents expect increased sales into the rental channel, including 52 percent that expect double-digit sales increases.

Less than 20 percent of the associate member respondents said sales into the rental channel decreased in 2010 while only 1 percent of the respondents expect a decrease in 2011.

“Clearly ARA members are more optimistic about 2011 and have a positive mindset,” says Christine Wehrman, ARA’s executive vice president and CEO. “This underscores the importance of The Rental Show in Las Vegas. The timing is right for solidifying the buyer and seller connections, learning how to further promote the rental concept and taking advantage of tax benefits.”

The Rental Show is scheduled for Feb. 27-March 2, 2011, at the Mandalay Bay Convention Center in Las Vegas.

“Rental companies can benchmark their businesses against these survey results and The Rental Show also provides a great opportunity for attendees to validate the survey results by visiting with other rental operators and exhibitors,” Wehrman says.

The survey results reflect a snapshot in time of those who responded and may not be representative of the industry as a whole.

Kenworth and Sprint Partnership Targets Mobile Connectivity

Kenworth Truck Co. and Sprint are involved in a partnership to provide mobile connectivity for the Kenworth NavPlus, a PACCAR proprietary navigation and business technology system for Kenworth Class 5 to 8 trucks.

"As the core development partner, Sprint is proud to integrate our advanced network connectivity into Kenworth NavPlus, which will also offer telematics, navigation, diagnostics and business system features,” said Sprint CEO Dan Hesse, who addressed the Detroit Economic Club today. “Our machine-to-machine (M2M) wireless technology helps companies reduce emissions, cut costs and raise performance.”

“Sprint is a technology leader and we look forward to offering its outstanding mobile connectivity service as a benefit to customers in Kenworth trucks factory-equipped with Kenworth NavPlus,” said Bill Kozek, Kenworth general manager and PACCAR vice president.

The in-dash, NavPlus technology system utilizes a high-resolution, 7-inch color screen and 8 gigabytes of memory. Together, navigation and business systems will be provided with vehicle connectivity services for drivers to easily and safely use while traveling. When a truck is not in motion, the driver will be able to access the Internet and send and receive e-mails to enhance communications with dispatchers, logistics providers and shippers. The Sprint connectivity service is available as an option.

NavPlus also includes hands-free phoning with Bluetooth, back-up camera options, vehicle data, and audio controls, including satellite radio, AM/FM, CD, MP3 and USB. When launched in 2011, Kenworth NavPlus will become standard on Kenworth trucks with all premium interior trim offerings and on diesel-electric hybrid vehicles. The system also will be available as an upgrade on any Kenworth standard trim package. NavPlus was developed on the award-winning Microsoft Windows Embedded Automotive 7 software platform.

Construction Materials Prices Higher in December 2010

The cost of construction materials continued to rise in 2010, closing up 0.9 percent in December, according to the January 13 producer price index (PPI) report by the U.S. Labor Department. Overall, producer prices last month were 5.4 percent above December 2009 levels.

“Over the past three months, the monthly increases have been 0.6 percent, 0.5 percent, and 0.9 percent. These increases appear to be in conjunction with broader increases in import prices, which have also risen substantially over the past three months, largely due to rising energy prices,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. " For contractors in the U.S., this cannot be viewed positively. Rising materials prices put even more downward pressure on already slender profit margins.

"Moreover, the increase in project costs associated with rising materials prices makes it more likely that certain projects will remain on hold. However, given recent stability in the U.S. dollar, it may be that materials prices will not increase as forcefully as in the past months," he said.

Leading the increase, softwood lumber prices jumped 3.4 percent in December and are up 6.3 percent over the previous twelve months. Iron and steel prices rose 2.3 percent last month and were 16.9 percent higher than prices in December 2009. Nonferrous wire and cable prices increased by 2.2 percent from last month, 11.1 percent over the last three months, and 12.2 percent over the last twelve months. Prices for fabricated structural metal products rose 0.9 percent in December and are up 3 percent from December 2009. Steel mill product prices increased by 0.5 percent in December and are up 12.5 percent compared to levels one year ago. Prices for plumbing fixtures and fitting inched up 0.3 percent and are 1.3 percent higher from December 2009. Prices for concrete products are also up 0.3 percent for the month but are down 0.3 percent on a year-over-year basis.

In contrast, prices for prepared asphalt, tar roofing, and siding fell 1.0 percent in December but were up slightly, 0.9 percent, over the last twelve months.

Crude petroleum prices rose 7.7 percent in December, as natural gas prices soared 23.4 percent, accounting for 90 percent of crude energy price gains. Year-over-year, crude energy prices are up 6.2 percent.

Meanwhile, the nation’s wholesale prices increased for the sixth straight month, up 1.1 percent in December, and are up 4.1 percent from December 2009. Producer prices in 2010, on average, were 4.3 percent higher than in 2009, but 2.6 percent lower than 2008 levels.

Alternative Illuminating Power

With the boom of new fuel technologies, Multiquip has produced the first hydrogen fuel cell-powered light tower, part of a planned series of hydrogen fuel cell powered products. Innovative by design, the light tower is environmentally friendly, fuel efficient, virtually pollution-free, allowing it to be operated indoors and can be operated for up to 50 hours at a noise level of 43 decibels at 23 ft. 

The light tower uses innovative plasma light technology, which is filament-free, producing a clean, natural light. The plasma light bulb produces 22,000 lumens with extremely high efficiency, consuming only 255 watts with a life expectancy of up to 50,000 hours.

“We are very excited to be introducing the hydrogen powered light tower,” said Torsten Erbel, Vice President Product Management, Engineering and Customer support for Multiquip. “The implications of the product’s technology beyond lighting are tremendous. It’s reliable due to the lack of moving parts; durable; does not contaminate due to fuel spills; there is very low maintenance; and it is user-friendly, using an automotive-style fuel nozzle.”

Using a process discovered more than 150 years ago, fuel cells began supplying electric power for spacecrafts in the 1960s and were pursued for commercial use in the 1970s. Fuel cells are an alternative to the internal combustion engine with an energy efficiency of 50-plus percent, while on average, internal combustion engines convert only 20 percent.

The tower will be available in the second quarter. Pricing is by quote only, due to the availability of energy and tax credits, which vary from state-to-state as well as multiple configuration options.

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