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150-Year Milestone in 2009
Navistar and Ford Reach New Business Agreement
Calling for Competitors — 2009 AEM Construction Challenge
The Bio-Fuel Biography
150-Year Milestone in 2009
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| While the Gehl founders of old posed with their hot rods, the Gehl Co. leaders of today would have a host of machines to stand beside — telescopic handlers, skid loaders, track loaders, compact excavators, all-wheel-steer loaders, articulated loaders and asphalt pavers. |
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The life expectancy of the average human being is around 66 years. But the life expectancy of our work is limitless. To thrive in business for 150 years (which happens to be the life expectancy of the bowhead whale, the longest living mammal) takes product innovation, sound business decisions, strong leadership and first-class customer service; most of all, it takes dedicated employees and dealers.
The Gehl Co. history began in 1859 in a blacksmith shop in a small Wisconsin community located at the westerly bend of the Milwaukee River. Since then, Gehl Co. has been led by three generations of Gehl family members and still operates in the same Midwestern town where it began 150 years ago.
Beginning with the development of agricultural implements for small farms, a bestseller was created in 1880 and called the Hexelbank Ensilage Cutter — a predecessor to the modern forage harvester. John W. Gehl acquired the business in 1902, becoming the first Gehl family member to lead the implement company. A second generation of Gehl brothers took control of the business in the 1930s. In the 1940s, the Gehl brothers developed innovative new agricultural products, including field forage harvesters, self-propelled forage harvesters, multiple-row crop attachments and portable feedmakers.
In 1973, Gehl began manufacturing skid loaders for agricultural customers, necessitating a second manufacturing plant, in Madison, S.D. The popularity of these machines grew quickly into the expanding construction markets, as well as the European market. Today Gehl Co. has established a reputation for having one of the highest quality skid loaders in the market.
A third-generation Gehl, William D. Gehl, began managing the company in 1992. Under his leadership the company diversified into multiple markets world-wide, including the acquisition of Mustang Mfg. in 1997. Gehl began manufacturing more compact equipment than ever before, advancing technology throughout all their product lines. Gehl Co.’s success after the early 1990s and into the first decade of the twenty-first century was attributed to the vision of William Gehl, the hard work of Gehl employees and the dedicated world-wide dealer network. “Despite changes in technology and an ever-expanding product line, Gehl has remained true to its reputation for ingenuity, innovation and reliability,” said William Gehl, CEO and Board Chairman.
Navistar and Ford Reach New Business Agreement
For almost three decades, Navistar has been a long time supplier for Ford’s marquee brand of trucks, a relationship that has benefited both companies in big ways. But that business arrangement has definitely had its highs and lows over the years. It’s been particularly rocky of late.
Navistar International Corp. has been locked in a legal feud with Ford Motor Co. over its longstanding diesel-engine supply contract — a dispute that looked to have no end in sight — until now. In 2001, Navistar formed a joint venture with Ford to manufacture medium-duty trucks and parts including diesel engines for both parent companies. The new company is called Blue Diamond Truck Co. and it operates in the Navistar plant in Escobedo, Mexico.
In 2007, Navistar International Corp. filed a lawsuit against Ford Motor Co. for breach of contract relating to a diesel engine contract involving its Ford F-150 pickup truck. The suit contended that Ford was developing a 4.4-liter diesel engine for production in North America by late 2009 or 2010 — or possibly earlier — intending to produce the engine itself for use in the F-150 and possibly other vehicles. The suit said Ford could not do that without violating its contract with Navistar. The company has been the exclusive diesel engine supplier for Ford’s heavy-duty pickup trucks since 1979.
But in January, the two companies decided to settle their differences.
“Navistar and Ford benefitted from a successful partnership that provided value to both companies for nearly three decades. However, it’s in our best interests to resolve our conflict and continue our relationship with each other in other areas,” said Dan Ustian, Navistar Chairman, President and CEO.
Ford Motor Co. and Navistar International Corp. reached an agreement to restructure their ongoing business relationship and settle all existing litigation between the companies. As a result of the agreement, the companies will end their current diesel engine supply agreement effective Dec. 31, 2009. Navistar’s contract to supply diesel engines for Ford’s heavy-duty pickups had been slated to expire at the end of 2012.
However, the companies will continue to collaborate on a range of initiatives, including their existing Blue Diamond Truck. Navistar will acquire additional equity in the Blue Diamond joint ventures, which will continue to offer dealers and customers F-650 and F-750 medium duty trucks, as well as parts support for a variety of Ford products, including Ford’s PowerStroke Diesel-equipped trucks. Ford and Navistar also will continue their diesel engine supply relationship in South America. As a result of the agreement, Ford will make a payment to Navistar.
Calling for Competitors — 2009 AEM Construction Challenge
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| Last year, The Construction Challenge brought together more than 50 student teams to compete at the event held during CONEXPO last March at the Las Vegas Convention Center. |
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Unemployment is worse than it’s been in years, but in the not-too-distant future, construction companies could be seeking well-trained and motivated workers to fill the millions of jobs related to the manufacture and use of construction and other off-road equipment. High school students across the country now have an opportunity to learn about these careers through the Association of Equipment Manufacturers’ (AEM) Construction Challenge teen competition.
The AEM Construction Challenge, a creative problem solving program in its second year, is introducing students across the country to the skills they could be using on the jobsite in the coming years as federal and state governments seek to fund badly needed infrastructure projects through an economic stimulus package and other funding mechanisms.
On February 7 more than 230 student teams participated in 15 regional qualifying rallies — including one in Toronto — designed to engage teens through a hands-on, educational experience and to introduce them to careers as engineers, equipment technicians and manufacturing professionals.
AEM sponsors the Construction Challenge in partnership with the Destination ImagiNation nonprofit organization. The Challenge offers an opportunity for students, teachers, parents and community leaders to learn more about available industry careers and how critical off-road equipment is to creating and maintaining the high quality of life enjoyed in Europe and North America as well as by increasing numbers in the developing world.
The February 7 regional rallies were scheduled for Atlanta, Boston, Chicago, Cincinnati, Dallas, Denver, Kansas City, Mo., Milwaukee, Minneapolis, Enid, Okla., Philadelphia, Phoenix, Sacramento, Calif., Seattle and Toronto, Ontario.
Even before the renewed focus on rebuilding infrastructure, the construction industry was concerned about meeting the demand for trained workers as a large portion of its current workforce enters retirement. With the federal stimulus plan designed to add even more jobs, the industry hopes to encourage young people to pursue jobs in construction.
“The Construction Challenge was created as a platform to educate students and the public about rewarding, interesting and lucrative career opportunities. We want to attract even more young people to help solve our problems with innovative and creative ideas,” said Dennis Slater, President of AEM. “While our nation’s leaders are planning for the creation of millions of jobs, we are focused on what we can do to help develop this growing skilled workforce.”
Students who participated in the Construction Challenge rallies learned about careers related to the equipment manufacturing industry, which includes more than 2,000 companies manufacturing, selling or operating equipment.
“The success of the stimulus package, the rebuilding of our infrastructure and the training of millions of workers will be directly related to the success of future generations of Americans,” said Slater. “The Construction Challenge is one way our industry is helping prepare and invest in that future. We also hope everyone has a little fun and gets inspired along the way.”
The Bio-Fuel Biography
Bio-fuel is a big buzz word, with engines, from truck and machine manufacturers alike, taking anywhere from a B5 to B100. But what exactly is Bio-fuel? How is it made? What’s all the buzz about? Iowa Biodiesel producer Riksch BioFuels has created a new Web site — blogging all about biofuels.
The site, rikschbiofuels.com, which includes basic definitions and advice for equipment owners and operators interested in alternative fuels, was developed by Des Moines-based Web consulting firm Purple Wren.
In addition to information on where to find and how to use biodiesel, the site hosts the RB Blog, which allows users to subscribe for e-mail delivery of national trend analysis and tips on putting biodiesel to work.
“Our goal is to make learning about alternative fuels as simple as possible for our customers and the general public,” said Don Miksch, Riksch BioFuels Vice President and CFO. “We look forward to interacting with people on the blog and to sharing what we have learned so that this community of people passionate about the potential of biofuels can grow.”
The founders of Riksch BioFuels have a deep agricultural background and a history of producing biodiesel. Recognizing the need for a biodiesel production facility in southeast Iowa, colleagues Neil Rich and Don Miksch formed Riksch BioFuels on April 4, 2005. The company produces and distributes several products, including RB100, RB99 and RB8000.
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Auction Innovation
The inaugural auction from Cat Auction Services held Nov. 12 in Des Moines, Iowa, was met with great enthusiasm from both buyers and sellers. Buyers got a unique video look at each machine as it was sold — a high-tech approach to a classic format.
Dan Ames, Owner of Minnesota Dirt Works Inc., of Lonsdale, Minn., made his first-ever auction purchase, though he typically buys all his equipment from local dealers. Ames went to the auction intending only to be a spectator.
“It was a first-class event, and all of the equipment seemed high quality. The pre-sale inspection report on the equipment was a big benefit to me,” Ames said. “I went to the auction with no intention of buying and came home with a small compactor. Seeing the machines on the JumboTron moving and going through all their functions gave me even more confidence in the purchase.”
A total of 275 pieces of equipment were sold garnering $8.85 million as 499 on-site and 327 online bidders from 14 states and nine countries, including Mexico, Canada and Egypt, vied for the top-of-the line equipment that featured complete pre-sale inspection reports based on Cat Used standards.
Chinese Fortune
JLG Industries Inc., along with its parent company, Oshkosh Corp., broke ground for a new manufacturing facility in Tianjin, China. Yet another step in Oshkosh Corp.’s strategic business initiatives to meet the demands of a global economy and the growing demand for aerial work platforms in the Chinese and Asian markets.
JLG Industries has been selling and servicing products in the Asian market for decades. The company opened an office in Beijing in 2002 to enhance responsiveness to its Chinese customers in the shipyard, construction, airport, hotel, industrial and maintenance industries.
“We have chosen to expand in China because we believe the Asian market holds tremendous long-term potential for our access equipment. In many respects, our Asian customers are just beginning to see the tremendous value that access equipment can provide in construction, manufacturing, maintenance, industrial and shipyard applications,” said Craig E. Paylor, Oshkosh Corp. Executive Vice President and President of JLG Industries.
The new facility will produce JLG access equipment specifically for the Asian market. JLG currently has manufacturing operations in Pennsylvania, Ohio and North Dakota and in Maasmechelen, Belgium, Tonneins, France, and Medias, Romania. |
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