Tag Archives: heavy equipment

Komatsu has a lot of expectation from the year 2015

The slowdown of the global economy has put many big as well as small companies in the worry zone and many say it will perhaps take a couple of more years for them to see the glory days. So till then they have to do is to conduct business in the normal fashion without taking more risks. Taking risk at this juncture is only going to tarnish the reputation of the company because it is highly unlikely that you may get any high returns by taking unnecessary risks. Therefore, it is prudent that one carry on their businesses with caution as that will help them to conduct their business with impunity. Many big companies have seen a decline in their sales volume and they feel that the global slowdown is the major reason why they have such a low sales figure. Other than this, businesses in some countries have taken the major hit which has impacted the overall sales figure. Many are even pondering if it will be wise enough to wrap up their businesses in countries where they have suffered maximum losses. That will in a way help them cut off some of their losses in the future. They may also consider to lay off few employees for the time being as that will be a way in which they can save some money for taking major financial decisions.

China which has lately emerged as the world leader as far as its economy is concerned has also seen a fall in the construction and mining sector. Komatsu which is one of the largest producers of heavy equipment feels that China is no longer the market leader. Their sales of equipment in China have fallen drastically than they could have ever thought of giving them a shock of their lifetime. Companies like CAT have similar views. Tetsuji Ohashi, the chief Executive Officer of Komatsu, has said in an interview that China is losing its sheen as far as the construction and mining sector is concerned. He even went on to say that China is losing its hold from the economic growth and it is finally scaling down. The sale of Komatsu equipment has dropped noticeably between April and May and there has high chances that it will miss the annual sales target. He also felt that China is experiencing huge delays in the commencement of some construction projects. Alternatively, he also feels that the demand for mining machinery is also declining. This all attributes to the total mess that is happening in that country affecting the business of the company.

He feels that the impact of the situation in China is big and they have to closely monitor the situation before coming down to a conclusion. They just can’t take a decision without forecasting few very important aspects and are optimistic that things will get back to normal in that country. Komatsu sales have declined to almost 20 percent but they have high hopes for 2015. They feel that the year 2015 will at least heal some of their wounds if not turn the table for them.

John Deere business plans for the Year 2015

The year 2014 may have a wonderful year for many and not so wonderful year for some. But it was definitely not a very happening year for the heavy equipment manufacturing industry. They had to struggle a lot of factors for the entire year; out of which competition was the biggest factor. Other than this, there were factors like global economic slowdown, unrest in the Middle East nations, the overall business slowdown that has largely affected the mining, oil and gas and construction sector and many more reasons that has slow paced the overall industry. Overall, it has not been a great year for the overall industry and the forecast is also not so pleasant. Big and small equipment manufacturing companies are affected alike by the slowdown in the global economy. The sales of the equipment have gone for a toss and there are not much takers available in the market. This is perhaps the reason why many companies have suffered losses and their sales graph shows a massive decline which they have not seen for years.

Talking especially about John Deere, it has not remained unaffected by the impact of the slow paced market conditions. John Deere is known for producing agricultural and heavy equipment machines had to take the beating of the market. Deer’s outlook gave the news that for the new fiscal year the situation will be grimmer and they do not see any major improvement in the market situation. The outlook suggests that the sales of the equipment is estimated to take a dip of more than 15 percent for the current year and may further scale down to 21 percent during the first fiscal quarter. They also estimated that the net income of the company will be around $2 billion compared to $3.16 billion in the year 2014. Things were much better in the year 2013 with earnings of $3.54 billion. The fall in the number of earnings only suggest the performance of the company. It will not be superficial to express that the company needs to take some time out to think and revamp its strategies. May be they need to make some changes here and there and need to focus on few very important issues that may kick off the sales number from where it is now.

The news of poor sales has already affected the price of their shares in the stock market making it more difficult for the company. The company’s earnings were totaled at around $35 billion in the year 2013 which has now come down to $32.9 billion. This dismal performance has not brought down the morale of the employees of the company. The CEO of the company is positive that the company will bounce back and this time with a bang. Though there has been a global pullback in the agricultural sector, still the company will show profits in the year 2015. They have intended to prepare a more resilient model of growth that will help John Deere to turn the table to their favor.

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Case sees the year 2015 as the year of development

The year 2014 has not been a great year for many heavy equipment manufacturer and many have struggled hard to keep their business at bay. It is not that they see a possibility of shutting their business altogether, but they definitely see a hard time ahead. Few equipment manufacturing companies feel that the forthcoming year will bring joy and prosperity to their business. However, others do not support this view point. Some are also of the opinion to wrap up their businesses from the country they do not see much happening in the future and may focus in only those countries where they anticipate good business. This is the case with almost all the big companies. However, there are also some companies who keep a different perspective. They believe that it will make more sense to simply wait and watch how the overall market performs. Especially, for companies who are located in developing countries are more willing to sit tight and monitor the happenings. It is only after intensely pondering the situation that they might come to some conclusion. They just simply do not want to pull the trigger and later remorse on what they did.

Companies like Case sees this moment as a great opportunity. They feel that the year 2015 is the year of development for them and they have chalked out plans which suggest that they are determined to achieve growth consistently for the entire year. Having said that, they also assume that the forthcoming year will also be a year of immense challenges and it will not be easy for anyone to do business. They feel the reason for poor sales is because of falling demand. It does not have to do much with producing innovative machineries but has to do more with the fall of demand in the overall market.

Case has come with a not so unique way but definitely effective. They do not want any of their employees to do overtime and they feel that working for extra hours is not required in a market condition where the demand is low. For the time being, they do not intend to lay off any of their employees but are giving strong indication that they are certainly not hiring any additional labor force.  They are also working on the plan to reduce higher weekend salaries for its workers and will also significantly reduce their dependence on outsourced sections that will help them a long way to keep the cost in tack.

In order to protect the segment margins, the company has already started to act on its cost structure by bringing it in line with its inventory positions. As far as the agricultural equipment are concerned, it is estimated that they will see a fall in its sale volume for the entire year. Farmers who require machine with higher horsepower will shy away from buying due to weak crop prices. Nevertheless, they also feel that the situation may turn good at the end of 2015 and they will pick it from there.

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JCB sees 2015 as the year of improvement and possibilities

With the overall economic slowdown, not many heavy equipment manufacturing companies are optimistic about any positive opportunities in the year 2015. They feel that the economic slowdown has to do more with the unrest in the middle east, rise in oil price, government norms which are not so business friendly etc. that has led to a decline in the demand of heavy equipment. Even the equipment that is required for agriculture is also seeing a downward trend as far as its sales is concerned. Therefore, this suggests that the entire market is suffering because of the economic downturn.

If we see how it is going to be in US, the picture is not so pleasant. US economy is not in good order and it requires lot of work to put it back on track. Other than that, many government policies are not so business friendly. So there is a need for the government to ponder on such matters. Overall, not many believe that the year 2015 will bring any significant change in the current situation and things will more or less remain the way it is. However, there are few companies that shares slightly different opinion. Out of these companies, JCB is one. JCB being an UK company sees 2015 as the year of improvement and opportunities. They see hopes of possibilities that will flow in somewhere from the mid of this year. They feel that their company will welcome the New Year with a bang by launching the entry-level backhoe loader. According to JCB sources, they are launching the 3CXG backhoe loader in the Middle East and they also believe that this machine will save a lot on operational costs for its customers. The letter “G” in 3CXG means global which means that the company is looking to cater international markets and especially markets that have huge potential. Though there are problems in the Middle East but that does not stop them for entering the market with the entry-level loader. This clearly suggests that JCB is pretty determined to make it big in the year 2015.

If we talk about JCB 3CX, we get to know that the machine has a very good reputation providing great quality service to customers all over the globe. The chief innovation officer of JCB, Mr. Tim Burnhope says that the company is determined to offer solutions to different customer requirements and JCB works very hard to attain that reputation. According to him, the backhoe loader has been specifically designed to cater to emerging economies. It is a tough machine and can work under tremendous arduous conditions.

Most of the Middle East region is hard to dig area and it requires something stronger to penetrate the ground. Therefore, a machine like JCB 3CXG will be fairly compatible and can get the desired work done. The phenomenal part is that they have stuck to the basics and this is why they feel that they can sustain the horrendous tide that has made living difficult for other companies.

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Strategies of Caterpillar for the year 2015

Whether big or small all companies have to draw a strategy to increase their sales volume for the upcoming year. Some companies go for acquisitions and some have other plans that they adopt to give a new dimension to this business. In some way or the other, every company usually set up some kind of strategy for their business and adheres to that plan. It is quite imperative to establish strategies for the upcoming year and also declare them to the investors, stake holders or else they may leave people in a very ambiguous state which will deter them to invest in that particular company. This will be very harmful for the financial health of the company.

Normally, big companies tend to spend good deal of money on advertising their strategy to others. This also gives a clear set of message to their competitors that they are entering the New Year with a bang. Some companies play quiet till the last moment and when the New Year is about to begin, they start speaking about their plans to the media and general public. They also write about them on their web sites. These kinds of advertisements become very helpful to the company and also attract the attention of domestic as well as global customers.

Caterpillar one of the leading brands in the field of manufacturing mining and construction equipment does not leave any chance to promote their achievements and inform others about the sort of strategies they have set-up for the forthcoming year. Caterpillar being a very old company and a huge brand always comes out with something new that makes other patiently wait for. They basically concentrate on market acquisitions and try to increase their sales by bringing in innovative products in the market. They use this strategy as their Unique Selling Point (USP). They believe that innovation is key to any business and they apply this of thought of theirs entirely to flourish their business. Doug Oberhelman, the chairman and chief executive officer of Caterpillar says that they have good sum of money lying with them and he would like to utilize that money by pumping it in the business.

Many business heads have the same opinion. They struggle hard for the entire year to increase their sales and make good chunk of money. The money is then reinvested in the business and various financial problems are sorted with this investment. Doug Oberhelman sees the opportunity is not huge. They need to lay their focus on small growth opportunities as he see very less chance in doing something big. They are primarily focusing on mining, oil and gas an electric power. They see good business opportunity particularly in these sectors.

Caterpillar was shy of entering into the oil and gas sector as it felt the prices of oil were high. However, things have changed now and they see this moment as the right junction to enter the market. They feel the prices of oil have dropped and it makes more sense to get in the market at this juncture.

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Learning The Tricks Of The Trade Will Help You To Make Money In The Construction Industry

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You are in whatever business or industry, the first thing that you need to do is learn the work well. You can’t expect yourself to perform or to outperform before having learned the tricks of the trade. For instance, we take up the profession of a doctor. A guy has to study for years in medicine and then invest another good number of years in practicing. Only after that, he can claim himself to be a good doctor. Or let’s put it in this way that after investing so much of time learning his profession, he can become good in his work and that good work of his will be seen by others which will then make him a good doctor. This was just an example of a noble profession, now if we consider a business; it is no different from the first example.

Construction business is a huge business and it may take one his entire lifetime to know about everything, however not completely. It is important to know how to work things out and also how things work in this industry. If you start from the basics of it and then develop your knowledge, you will not miss anything but if you skip the basics and feel that they are not important, you might not understand things as they are all so interconnected with the basics.

We would be discussing few things that are instrumental to grow as a person in this industry.

Develop the curiosity to learn:-  Let’s start this by saying “Keep your eyes and ears open all the time”. You get to learn a lot of things if you simply keep your basic senses to see and to hear wide open. You will come across people who talk about how to complete a particular project or what kind of heavy equipment is needed to get the work done. They may talk about ideas which you have never heard of or felt that can even work in such a situation. You may even want to discuss things with them and show that you are curious enough to know things which will allow them to let you accompany them in critical assignments. Once you become a part of any critical assignment, you will come across multiple chances of developing your knowledge and also learning to deal with different kind of situations.

Take initiatives at different levels:-  This is perhaps the most important characteristic one must possess. Many people simply do their work and leave. They are never in hunt of any opportunities which sort of rusts their capabilities. Therefore, it is important that you take up initiatives to do things which others may find to be difficult or time consuming. Taking initiatives not only prove that you are not afraid of taking additional responsibilities but also display your ability to learn new things pertaining to your domain.

Learning these little things with time will eventually help you to know much of the things which are absent in others and will make you a better employee or a businessman than the rest.

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Plans of Hyundai for the year 2015

The year 2014 has been a big pain for all the heavy equipment manufacturing companies. They were all left complaining about slow growth rate and decline in the sales volume. Due to unrest in the Middle East and other parts of the globe, customers were reluctant to make further purchases. Another reason that adds to the misery is delay in starting a project. Due to many reasons, projects are unable to take off and that results in decline in the demand for heavy equipment. Therefore, it also does not make any sense to produce innovative machine as it makes no difference in a stagnant market. Like all other companies, Hyundai is also going through the same rough phase and is struggling hard to come out of it. The think tankers are working hard to find a solution to this issue and are also waiting for the market to correct. If the issues in the Middle East are put to rest, then things might start catching speed from there. However, that is just a matter of some time and needs patience. It is therefore important for companies to find an alternative and check other potential markets rather than simply sticking to countries that are of not much importance for the time being.

Having said that, it does not imply that construction equipment manufacturing companies should simply wind up their businesses from such countries. They can reduce their labor force and ensure that they do not end up spending their capital in units that may not yield much to them. If we check the last few years’ performance of Hyundai, we find that there has been a consistent fall in their sales volume. It is simply not picking up. In this way, they are only lowering their performance bar and are expecting that it will get to see some green pasture sooner.

Hyundai is in no mood to continue with its sick units or the units that are not performing. The year 2015 will be the year of corrections for them. They have to identify the units that is not performing and then also need to check the possibility of it remaining in that condition for the next few months. If they are convinced that there are no signs of revival, then it will be prudent to close such units and save the company from incurring further financial loses. The next thing that they can do is lay off few employees from units that are performing but not as per the company’s projections. It makes no sense to have a workforce that is not delivering. Other than this, they can also move their back office staff to sales department or can cross train them to perform duties at various levels.

Cross training people will keep the resources intact and will also enable them to perform various duties at different situations. By following few simple things can bring them back in business. However, for the time being the ground situation is grim and it will bounce back only if corrective actions are taken.

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Economic scenario affecting heavy equipment and construction industry

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Every big and small industry is co-related to the economic situation in a country. If the economic situation in a country is favorable for the businesses to flourish, it gives a good time for the people of that country to earn good money. However, if the economic condition is in turmoil then every industry takes a beating. Moreover, if it is the construction industry, it perhaps takes the maximum beating and also industries associated with it. The current scenario is such that market pundits see a modest growth rate in the construction segment. Nothing major can be predicted for the time being. It is better than being slow. However, few heavy equipment manufacturing companies have a different perspective about the current economic scenario. They do not see the market to be modest and feel that it will take more time for the market to improve in order to become modest. This means that the situation is far from being called modest. This shows that there are mixed signals coming from all areas of the heavy equipment manufacturing segment. They are also worried about the overall global situation if not much worried about what is happening inside the country. They ideally look to export their products outside the country and if the overall economy is at its worse, then it becomes very difficult for them to sell their machines worldwide.

Caterpillar being one of the strongest companies in the US has estimated that its total sale in 2014 will be around 55 billion dollars which is somewhat similar to the sales in the previous year. This shows that the heavy equipment market worldwide is indeed appalling and will take time to recover. Industry experts believe that the situation in the year 2015 will be somewhat better but will not show any dramatic upward trend. This means that the industry has to struggle hard for few more years after which it can expect to see a rosy outlook. They see immense opportunities for investment in infrastructure sector in countries like United States, Turkey and India. In addition to this, they also want the government to implement growth oriented policies that could be beneficial to all.

One of the major reasons of slow economic recovery in the global arena is the political conflict and instability. Due to this instability, no proper decisions are getting implemented and investors cannot set up the trust that it has to in order to invest their money. Countries in Africa and in the Middle East are the worst affected countries and they have to do a lot to improve things. Europe may have a different story to tell but it may not be far different. They do not see things to be so negative. However, they also do not see any signs of rapid industrial growth happening anytime soon. A report from CECE reveals that heavy machinery sales in the first half of 2014 increased by 10.24% compared to the first half of 2013. However, the second half was disappointing.

Hire Skid-steer Loader for Appending Labor-saving Gears

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Trade owners, general outworkers and project executives in the construction industry are well aware of the pricey heavy equipment. Therefore they always prefer to employ the heavy equipment on rental basis. Heavy equipment rental companies show all the important documents related to lease to the business possessors so that the deal should be agreed in proper legal manner. Skid-steer loader is engine-powered heavy equipment that is available with elevate arms. This apparatus is used to fasten the labour-saving tools. Some of the renowned manufacturers of this machine are Bobcat, Terex, and Caterpillar etc. It is sensible for the contractors to hire skid steer equipment of these branded companies.
Pertinence of Skid-steer Loader
Skid-steer loader is also recognised as skid loader or skid steer that is generally attainable in four-wheel vehicle. The wheels are automatically locked and have no independent routing device. The loader can move in different motions like slewing, dragging with the help of the paired wheels. Sometimes the loaders are equipped with tracks instead of wheels and at that time the vehicles are known as compact track loader. This loader has the capacity of performing like a backhoe, pallet fork, hydraulic breakers, and auger and so on. Some of its applications are as ensues:
• The skid-steer loaders can dig the hole from the inside the earth just like an excavator.
• It initially burrows the ramp leading to the circumference of the required quarry.
• Then the loader utilises the ramp to take out the material out from the crater.
• It also assists in remodelling the ramp to keep it powerful and longer as the mining process gets deeper.
• Skid loader is used for setting up the parks.
• It is also employed in cleaning stalls in a store.
Benefits of Renting Skid-steer Loader
• Heavy equipment rental firms proffer low-hour and trustworthy skid loaders to the construction companies that are sustained in authoritarian yardsticks. It’s a fact that the rental companies are providing the second-hand heavy equipment to the business owners but these are obtainable in good conditions.
• The heavy apparatus leasing firms cater to the modern technology equipment to the business owners. The construction contractors want to hire the upgraded version of skid-steer loader therefore these rental companies are successful in satisfying them.
• For renting the skid-steer loader, the business owners should go through the standards of Emissions Compliance (EPA). EPA granted machines can be used without any stress.
• Construction equipment rental companies help the contractors to accomplish their project proficiently. Upgraded skid loaders provided by the reputed rental companies assist the contractors to attach the toil-cutback tools flawlessly.
• The construction companies are not required to take the headache of maintenance cost when they hire skid-steer loader from the leasing firms. It is the duty of the hiring service providers to examine the condition of the machine periodically.
Some of the renowned rental companies that offer skid-steer loader are Caterpillar, Ahern Rentals, Power Equipment Company. Several types of skid steers are propounded with additional facilities to grab the attention of a large number of construction industry owners.

Prepare proper UCC Filings for Heavy Equipment and handle transactions smoothly

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When you are going to run your own business then it is very important to arrange every essential thing that helps you to maintain your business properly. UCC filing is very important to for construction or heavy equipment business as it helps to maintain the commercial transaction properly.

UCC is the short form of Uniform Commercial Code. It represents the law of the state related to commercial transactions through general revision. Through this facility you can get to know the uniform and important rules of commercial transactions for modern business conditions and requirement. Actually the main purpose of this system is to clarify the law or the rules that are controlling the commercial transactions.  Therefore, you should always maintain UCC filling for your heavy equipment.

As you are going to run your own business thereby, it is very important to take care of your trade account and all other financial background. Business credit examines the companies properly and orders them to pay trade accounts within time. Along with this they also check the public records like liens, suits and other things to take care of the company’s credit rating. You also have to show the UCC filings of the company. There are many potential lenders who deal with equipment. They always research huge on the borrowing history of the company so it is very essential to make the proper UCC filing. It helps to decide the credit status of the company. Whether you are a startup company or an experienced platform you should always prepare the UCC filing for your company.

Well, UCC filing can help you to enjoy a smooth transaction. So you can make it at the starting of your business without waiting for the last minutes. Generally, people file a UCC when they involve in some commercial transaction that include a secured party and a debtor. It is a very essential part of a business. Therefore, people who are going to launch their new business or already invest huge amount of money in business should always file an UCC and enjoy the facilities. It is a very common interest especially for the secured party who can file a UCC financing statement in order to save their interest.

In case of construction business you need to purchase much heavy equipment because those are the most important part of the business. They help to run a construction business successfully. So, in such cases, you have to manage many commercial transactions. So, if you can manage to make the proper UCC filing then you can definitely able to handle such transactions very smoothly and easily. as you know that the heavy equipment are expensive so, it is not good to take any risk when you are dealing with such machines.