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Fueling Future Alternatives
Construction Forecast Looks Gloomy
Utilities Unite
Trucks that Are Cats
Product Profile: Griffin Electric Submersible Pumps
Fueling Future Alternatives
Equipment Manufacturers Take Environmental Issues Head-On Case Goes Bio
By Michael Moon
Whether you’re running to the supermarket or traveling across the country, the rising cost of fuel is on the tip of everyone’s tongue. While the gas and diesel price point is putting the hurt on everyone’s pocket, it has also raised the call for conservation and alternative fuel efforts. In a continuing effort to make machines more fuel efficient, Case Construction Equipment has approved the use of B20 blends (a mix of 20 percent biodiesel and 80 percent petroleum diesel) for more than 85 percent of its construction equipment.
“Using biodiesel to power Case equipment reduces our dependence on foreign oil and increases our U.S.-based energy production. Plus, biodiesel has the potential to save customers money,” said Jim Hasler, vice president of Case Construction Equipment, North America
Biodiesel, which is produced from vegetable oils or animal fat derived from renewable resources, is used in various processed mixes with standard petroleum diesel. This alternative fuel is credited with having the ability to lower exhaust emissions and help reduce dependence on imported oil.
“Biodiesel adds lubricity to the fuel, which is beneficial in many circumstances, particularly as sulfur and aromatics are removed from the fuel,” said Ray Good, engine application manager, Case Construction Equipment. “Biodiesel has a higher Cetane number and burns cleaner with less particulates and smoke emissions. It is also fully biodegradable and nontoxic.”
Good noted that biodiesel fuels approved for use must comply with the North American Standard ASTM D6751.
In June 2006, Case became one of the first construction equipment manufacturers to approve the use of B5 blends.
Case advises equipment owners to discuss the use of biodiesel, as well as the service requirements associated with its use, with their Case dealer. For a list of Case equipment that is approved for B20, visit www.casece.com
Caterpillar’s Retro (Fitted) Emissions Solutions
Fuel is just one part of the environmental problem. Cleaner emissions are also on the top of every manufacturer’s list. With Tier 4 engine requirements looming on the horizon, Caterpillar is also looking at how to clean the emissions of older machines. Cat has partnered with CleanAIR Systems Inc. of Santa Fe, N.M., for emissions retrofit products. These products are installed into existing machines in order to reduce hydrocarbons, nitrogen oxides and diesel particulates.
This alliance encompasses CleanAIR’s proprietary technology and custom engineering capability, as well as flexible manufacturing of diesel particulate filters, oxidation catalysts, three-way catalysts and selective catalytic reduction catalysts. Caterpillar will provide system integration capability, engineering and marketing support, as well as assistance to enable CleanAIR to meet the growing demand from the broad Caterpillar customer base.
The agreement between Caterpillar and CleanAIR also allows Cat dealers to effectively meet customers’ stringent air quality requirements by offering a responsive and competitive solution. The ability to sell CleanAIR’s retrofit systems permits Cat dealers to offer a product customized for a particular application, the latest in product technology and direct access to dedicated product support.
The relationship between Cat and CleanAIR Systems is part of a long-term strategy that combines the strengths of both companies, creating a formidable team to deliver cost-effective solutions to customers’ increasingly complex emissions challenges.
Established in 1993, CleanAIR Systems is a technology-based corporation manufacturing emissions control systems with worldwide distribution. CleanAIR’s products are designed to control air pollution such as diesel particulate matter and NOx for internal combustion engines and gas turbines. Visit CleanAIR Systems online at www.cleanairsys.com.
John Deere Cleans Up With Climate Leaders
To go beyond machine emissions and engine standards, John Deere & Co. has plans to further reduce its total global greenhouse gas emissions by 25 percent per dollar of revenue from 2005 to 2014. The company has committed to the reduction goal in conjunction with its participation in the U.S. Environmental Protection Agency’s Climate Leaders program, which Deere joined in 2007. John Deere locations worldwide will implement energy-saving projects to meet the target.
“Our commitment to these types of projects and to the goals of the Climate Leaders program demonstrate that we can be both a sustainable and growing company that remains competitive in world markets while also remaining committed to company core values,” said Laurie Zelnio, director of safety, environment and standards at Deere & Co.
Climate Leaders is a voluntary industry-government partnership that works with companies to develop long-term comprehensive climate change strategies. Participants set a corporate-wide greenhouse gas emissions reduction goal and annually report their progress to the EPA. Through program participation, companies create a credible record of their accomplishments, reduce their impact on the global environment and identify themselves as corporate climate leaders.
In addition to its membership in the Climate Leaders initiative, Deere also is a member of the U.S. Climate Action Partnership, another initiative to address greenhouse gas emissions. This alliance of major businesses and leading environmental groups calls for federal legislation requiring significant reductions of greenhouse gas emissions.
Construction Forecast Looks Gloomy
In its Second Quarter 2008 Construction Outlook, a quarterly construction market forecast, FMI’s Research Services Group — management consultants and investment bankers to the building and construction industry — indicates construction for 2008 remains much the same, but the outlook for 2009 has been revised down slightly because a downturn in nonresidential construction usually leads to a slow down in the general economy.
Recently released economic indicators are somewhat mixed. Housing, credit tightening, consumer spending and inflation continue to hinder the economy. While the general economy begins to stabilize somewhat, nonresidential construction is expected to falter late in 2008 and into 2009.
“The Fed continues cutting rates to stimulate the economy, but inflation is becoming a threat and a pause is likely,” said Heather Jones, construction economist for FMI’s Research Services.
The Construction Outlook also reports that water is an important concern in our nation. Aging infrastructure, population growth and net migration are fueling demand for new and replacement construction especially in the Sunbelt and Rustbelt regions. Water supply and sewage and waste disposal construction will increase by 2 and 3 percent in 2008 and by 2 and 4 percent in 2009, despite a decrease in state and federal revenues.
Total construction in 2008 and 2009 will be down 4 and 1 percent, respectively, based upon large decreases in residential construction that will not be offset by gains in nonresidential and non-building construction. The decline in 2009 will be driven by a decrease in nonresidential construction for the first time since 2003.
Historical information in FMI’s Construction Outlook is based on building permits and construction put in place data as provided by the U.S. Commerce Department. Forecasts are based on econometric and demographic relationships developed by FMI, on information from specific projects gathered from trade resources and on FMI’s analysis and interpretation of current and expected social and economic conditions.
Utilities Unite
When economic times are tough, it’s good to stick together. So United States Infrastructure Corp. (USI), a holding company formed by leading private equity firm Kohlberg & Co., completed the acquisitions of SM&P Utility Resources (SM&P) and Central Locating Services (CLS) — forming a major provider of underground utility locating and marking services in the United States.
“The acquisitions of CLS and SM&P combine the best management teams and the best systems in the industry, which will lead to providing the best quality service to over 400 utility customers in 21 states,” said Mike Stayton, president and CEO of USI.
“We look forward to a stronger and more efficient company with this merger and bringing best-in-class service to our customers,” said Christopher Asplundh, president and CEO of Asplundh Tree Expert Co. Asplundh will retain an ownership interest in and serve on the board of USI.
SM&P was acquired from St. Louis-based gas utility company Laclede Group, and CLS was acquired from Willow Grove, Penn.-based Asplundh. CCG Securities is an investment and merchant banking firm, specializing in mergers and acquisitions advisory and capital raising services to small and mid-size companies in the infrastructure services industries.
Gordon Woodward of Kohlberg & Co. remarked: “We are excited about the prospect of combining these two industry leaders. Under Mike Stayton’s leadership, we believe the new company is uniquely positioned to provide enhanced resources, quality service and geographic scope to its valued customer base.”
Kohlberg & Co. is a leading U.S. private equity firm specializing in middle-market investing. Since its inception in 1987, Kohlberg has organized six private equity funds, raising $3.7 billion of committed equity capital and completed more than 100 buyout transactions and add-on acquisitions, collectively valued at nearly $7 billion. Partnerships with leading management teams have been critical to the firm’s successful 20-year investment track record.
SM&P is a leading provider of utility locating and marking services primarily in the Midwestern and Southern United States and, prior to the acquisition by USI, was a subsidiary of publicly-held gas utility Laclede Group Inc.
CLS is a leading provider of utility locating and marking services in the Eastern and Southeastern U.S. and, prior to the acquisition by USI, was a subsidiary of privately-owned Asplundh.
For additional information, please visit www.ccgbank.com.
Trucks that Are Cats
There will soon be a new truck prowling the highways. No, it’s not a robotic animal transforming into a truck disguise. It’s the combination of Navistar International Corp. and Caterpillar Inc. pursuing global, on-highway truck business opportunities and cooperating on a variety of engine platforms.
The two companies intend to focus on global truck opportunities, including North American severe service construction trucks, as well as technology development for engines worldwide.
“We are pleased to be matching the formidable talents and technology leadership of two industry leaders to serve an expanding base of engine, truck and equipment customers worldwide,” said Jim Owens, Caterpillar chairman and CEO.
Caterpillar and Navistar intend to develop, manufacture and distribute commercial trucks in select regions outside of North America as well. The product offering would include a full line of medium- and heavy-duty trucks in both conventional and cab over designs.
“The combination of Navistar’s truck design, development and manufacturing expertise and Caterpillar’s worldwide distribution creates a significant advantage for global customers through the ability to offer the right vehicle for the right application through more than 4,700 points of distribution around the world,” said Dee Kapur, President, Navistar Truck Group. “The North American Caterpillar distribution system provides expanded reach for severe service trucks with big bore power, a segment where Navistar has traditionally not been as focused.”
Additionally, the companies plan to develop mid-range engines for diesel applications such as school buses and utility trucks. This engine development would support each company’s stated path not to utilize urea-based selective catalytic reduction (SCR) technology.
Concurrent with this new strategic direction, Caterpillar has independently determined that it will not supply EPA 2010 compliant engines to truck and other on-highway OEMs. Caterpillar will, however, continue to provide support and service for all Caterpillar on-highway engines regardless of truck brand.
Through the alliance, the companies also intend to expand their existing remanufacturing relationship to include Navistar’s recently introduced MaxxForce on-highway engines. The companies expect to pursue additional remanufacturing opportunities as new vehicles and engines are developed.
Caterpillar targets a 2010 introduction of a North American Cat-branded, heavy-duty truck for severe service applications such as road construction, large infrastructure projects and oil and petroleum development.
Product Profile: Griffin Electric Submersible Pumps
There are times when water on the jobsite is not good and you need to move that water. To pump out your jobsite, consider an Griffin electric submersible pump. Whether it is clean water, gray water or trash laden effluent, electric submersible pumps are available for flows as low as a few gallons per minute to several hundred gallons per minute, with head conditions to several hundred feet.
Electric submersible pumps are available with several options and configurations. These fully self-priming pumps are available in 120-volt single phase or 460-volt three phase configurations with a run dry capability on some models. Additionally, control panels with float switch capabilities allow for automatic start and stop conditions.
The compact designs of the pumps make for easy handling and working on close-quarters jobsites.
The electronic submersible pumps can also be used in deep well applications. Deep well systems consist of one or more individual wells, each of which has its own electric submersible pump at the bottom of the well. Deep well systems are suitable in deep aquifers and will lower the water table 100 ft or more in a single lift without staging. For more information, visit www.griffinpump.com.
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