Published Nationally
$3.00
®
Western Edition
February 12 2011 Vol. VII • No. 4
“The Nation’s Best Read Construction Newspaper… Founded 1957.” 470 Maryland Drive • Ft. Washington, PA 19034 • 215/885-2900 • Toll Free 800-523-2200 • Fax 215/885-2910 • www.constructionequipmentguide.com
Inside
Rental Industry Expects Rebound in Coming Months
Scrapers and wheel dozers work to rebuild the cavern carved under a portion of SR-330.
In late December, a severe storm caused roadway washouts and slides along State Route 330 — the primary route to and from Southern California’s two most frequented ski/snowboarding mountains and Big Bear Lake. The damage has resulted in a full closure of SR-330 for a year. The major damage took place at one location, where a complete roadway washout and road undermining occurred. According to Caltrans District 8, an 8 ft. (2.4 cm) deep hole — directly beneath the pavement — was created when the upbound lane of SR-330 washed down into City
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.
see REPAIRS page 42
see REBOUND page 12
AED Holds Annual Convention...30
Kroeker Looks t o the Future...24
Repairs Set to Begin on SR 330 in California By Erik Pisor CEG CORRESPONDENT
Auction Action Heat s Up in Florida...52
Table of Contents ........4 Excavators & Attachments Section ................13-23 California Section 24-27 Paving Section......35-40 Auction Section .. 46-55 Business Calendar ....48 Advertisers Index ......54
Caterpillar’s Strong Quarter Profit Hints at Growth By Josh Funk AP BUSINESS WRITER
Heavy equipment maker Caterpillar’s soaring profit reflects strong demand in developing nations and offers reasons for optimism about the global economy and the prospects for other American manufacturers. “They are a pretty good barometer,” analyst Jeff Windau with Edward Jones said of Caterpillar Inc.
That’s because Caterpillar sells its yellowand-black mining and construction equipment around the world and can benefit from growth wherever it’s occurring, while its reach also means the company’s business reflects global economic trends. Caterpillar predicts the world’s economy as a whole will grow at a lukewarm rate of 3.5 percent in 2011, but developing regions will grow at nearly double that pace and continue buying equipment for mining and for upgrad-
ing their infrastructure. Caterpillar, based in Peoria, Ill., said Jan. 27 that its fourth-quarter net income more than quadrupled to $968 million, or $1.47 per share, on $12.8 billion revenue. Those results beat analysts’ expectations and easily topped the $232 million in net income, or 36 cents per share, that it earned a year earlier on $7.9 billion in revenue. see GROWTH page 32