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This Months Cover Story

January 2011

Cat Auction Services’ Twin Cities Success

Diesel Tech Forum Applauds Diesel Emissions Reduction Act

Paladin CustomWorks Demo at CONEXPO-CON/AGG

Freightliner Delivers Sustainable Solutions

Case Construction’s New Angle Brooms for Wheel Loaders

New Holland Construction Launches Facebook Fan Page

FMI’s Fourth Quarter Construction Index



Cat Auction Services’ Twin Cities Success

Cat Auction Services sold more than $3.4 million of heavy equipment during an unreserved public auction held at the Ziegler Cat dealership in Columbus, Minn. Despite a cold wintry day, more than 165 bidders registered onsite and 340 bidders registered online for the auction.

These bidders were from 36 states and eight countries and competed for 133 lots. The successful Columbus-Twin Cities auction concluded an impressive auction season for 2010.

“We were very pleased with the results of the Twin Cities Auction,” said Cat Auction Services President Rick Albin. “The Ziegler Cat site was the perfect venue to showcase customer inventory and the indoor facility was perfect for a large crowd. The technology worked perfectly and although this auction wasn’t our biggest in terms of number of lots or dollar amount sold, we continued our trend of attracting active, serious buyers. As with our other auctions, buyer confidence was extremely high, which led to exceptionally solid prices.”

Albin attributes this high level of buyer confidence to the TA1-level inspection reports on the equipment, as well as the exclusive Caterpillar products and services available to buyers.

“The fact of the matter is that our buyers have access to an impressive number of tools — from the most detailed inspection reports in the industry, to extended equipment protection plans, part options, financing and insurance — the combination of which make them very comfortable with the value they’re receiving,” Albin said. “Quite simply, we’ve given them the tools to make highly informed decisions.”

Once again, the unique auction theater setup and innovative leaderboard display drew rave reviews from onsite participants, while nearly two-thirds of the total bidders participated remotely via the company’s improved online bidding tool. Albin noted the importance of continuing to achieve this balance of onsite and online participation as the company prepares for upcoming 2011 auctions. Nearly 50 percent of the winning bids came from online bidders. For the year, 31.5 percent of business revenue is generated online.

“We’ve built strong momentum and are committed to continuing that growth with high-caliber auctions that provide great value to our buyers and sellers, giving them an auction experience unlike any other,” Albin continued.

Cat Auction Services entered the heavy equipment auction arena in late 2008 and has been active across the country. Reaction from all corners has been positive, and the auctions have drawn buyers from 49 states and nearly 40 countries. By conducting auctions that provide value to both the buyers and sellers, Cat Auction Services complements and enhances the relationship between Cat dealers and their customers.

Auction results are available to all registered bidders on www.catauctions.com. Cat Auctions will begin the 2011 year in Los Angeles on Feb. 8 at the Pomona Fairplex and Las Vegas on Feb. 11. Thirteen auctions are tentatively scheduled in 2011 with more to follow as dealer partners, consignors, brokers and customers expand nationwide and globally.

Cat Auction Services was formed through a unique partnership of five Cat dealers with the endorsement of Caterpillar Inc. In 2009, the dealer partners grew to nine and at the end of 2010, Cat Auction Services had 17.


Diesel Tech Forum Applauds Diesel Emissions Reduction Act

The battle over emissions regulations in the Senate continues, but this time, the Diesel Technology Forum (DTF) applauds the efforts of the Diesel Emissions Reduction Act (DERA). The recent passage of the DERA by the U.S. Senate Environment and Public Works Committee (EPW) is being hailed as a major step in continuing “a vital clean air program that has benefited communities in every single state in the nation,” according to Allen Schaeffer, the Executive Director of the DTF.

DERA (S. 3973) is a five-year reauthorization of the highly-successful program created in 2005 to establish voluntary national and state-level grant and loan programs to reduce diesel emissions by upgrading and modernizing older diesel engines and equipment. The bipartisan legislation was introduced on Nov. 18, 2010, by U.S. Senators George Voinovich (R-OH) and Tom Carper (D-DE) and cosponsored by several of their colleagues including EPW Chair Barbara Boxer (D-CA) and Ranking Member James Inhofe (R-OK).

“Chairwoman Boxer and Ranking Member Inhofe are to be commended for their bipartisan work on DERA to help modernize older diesel engines and improve America’s air quality,” Schaeffer said. “DERA has helped clean up tens of thousands of diesel engines. It’s been incredibly cost-effective — EPA estimates that every federal dollar invested in DERA translates into at least $13 dollars in health benefits. This cost effectiveness is actually higher thanks to state and local matches that stretch the federal DERA dollars. DERA funds also support new and existing jobs in clean diesel manufacturing, as well as local jobs in installing and maintaining the new diesel technologies.”

While it’s been difficult lately to find environmental issues that have near-universal bipartisan support among Democrats and Republicans, DERA has proven to be one program does, according to Schaeffer. In addition, a unique and diverse coalition of more than 500 environmental, health, industry, labor and government organizations is actively working for DERA’s reauthorization.

Paladin CustomWorks Demo at CONEXPO-CON/AGG

Sometimes you need a custom solution to a tough problem. Enter Paladin’s CustomWorks capabilities. CustomWorks can modify newly purchased or current equipment at its custom facility or ship the necessary parts and kits directly to the dealership so customers cost-effectively get machines that meet performance requirements for extreme applications.

Paladin’s CustomWorks display at CONEXPO-CON/AGG will show how the company provides specialized solutions to enhance bulldozers, dump trucks, excavators, skid steers and wheel loaders with less hassle. Attendees will also see existing and new equipment from all other Paladin brand companies, one of the largest independent manufacturers of coupler systems and attachment tools for all makes and models — Bradco, CP, FFC, Harley, JRB, McMillen and Sweepster.

Together Paladin’s eight brand companies offer hundreds of tough quick coupler and attachment options available through more than 2,000 dealers and rental locations and backed by 20-plus field territory managers. Paladin can be found at booth 1849 in the North Hall when CONEXPO-CON/AGG rolls into Las Vegas in March.


Freightliner Delivers Sustainable Solutions

Freightliner Trucks recently announced that it delivered the first turnkey natural gas truck upfitted with a vacuum body. Developed in collaboration with VAC-CON, the Freightliner Business Class M2 112V Compressed Natural Gas (CNG) truck will also be equipped with a CNG-powered auxiliary-mounted engine that powers the truck’s water system.

Jacksonville, Fla.-based VAC-CON provides combination sewer cleaners to municipal and private markets throughout the world. Its combination cleaners combine high-pressure water and vacuum systems to effectively clean both sanitary and storm drainage infrastructure. VAC-CON tapped Freightliner Trucks to develop the CNG truck based on its ability to fulfill VAC-CON’s unique specs and need for a turnkey chassis solution.

“There’s a tremendous green movement happening now, and our customers are looking to us to provide efficient products with alternative fuel options,” said Tom Jody, Marketing Manager for VAC-CON. “From the beginning, the team at Freightliner Trucks had a genuine interest in this concept, and in its success.”

The truck will include an Allison 3000RDS transmission for optimum performance and efficiency. The ideal transmission for alternative fuel vehicles, Allison transmissions include patented torque converter technology that results in improved startability at the launch of the vehicle, full power shifts and a better performing engine.

The Freightliner M2 112V also features a 2,500-sq. in. windshield for enhanced visibility, outstanding maneuverability and a roomy interior for exceptional driver comfort.

“VAC-CON strives to provide our customers with the best blend of cleaning equipment and chassis, and because our focus is on the cleaning equipment, it makes our relationship with Freightliner Trucks extremely important,” said Jody. “The CNG project was truly a partnership and we look forward to continuing our work with Freightliner to further refine this and other natural gas products.”

Freightliner Trucks is a division of Daimler Trucks North America LLC, headquartered in Portland, Ore., and is the leading heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 4 to 8 trucks and is a Daimler company, the world’s leading commercial vehicle manufacturer.


Case Construction’s New Angle Brooms for Wheel Loaders

Case Construction Equipment introduced a family of hydraulic angle broom attachments designed to increase the utility of Case wheel loaders.

Ranging in width from 96 to 120 in., the new angle brooms enable Case wheel loaders to sweep streets and parking lots, clean up jobsites and remove snow from jobsites. Angle broom models are available for Case 521D and E, 621D and E, 721D and E and 821E wheel loaders.

“The new angle brooms add value and versatility to Case wheel loaders,” said Tim O’Brien, Case marketing manager. “Equipping a wheel loader with an angle broom for jobsite cleanup can reduce the need for additional support equipment. It’s a smart solution for contractors looking to shave operating costs and increase productivity.”

The brooms feature durable poly-wire brushes, broom heads that adjust 30 degrees left or right and an integrated nozzle for applications requiring water for dust control. The Case angle brooms attach to the CNH quick coupler (JRB-compatible) for wheel loaders. Quick-change hydraulic fittings enable the operator to attach and detach the broom without disrupting hydraulic lines. Dual hydraulic motors power the broom attachment, driven by the loader’s optional third-function auxiliary hydraulic control. A rugged steel frame houses the broom. Broom models are available with either solid or pneumatic tires.

New Holland Construction Launches Facebook Fan Page

Get ready to get connected. New Holland Construction announced the launch of the company’s official Facebook fan page. Customers, dealers and enthusiasts around the world can experience the New Holland brand and interact with each other.

Users of the social media network can join the New Holland Construction Facebook fan page for the latest updates about their favorite construction equipment, including special offers, events and news. Fans can also add their own reviews and comments.

“There are currently more than 500 million Facebook users worldwide — that’s more than the U.S. population,” said Dave December, New Holland Marketing Manager. “Our Facebook fan page connects people around the world who operate our equipment and care about the industry they work in.”

To view and become a fan of the New Holland Construction Facebook fan page, visit www.facebook.com/newhollandconstruction.

FMI’s Fourth Quarter Construction Index

FMI, a provider of management consulting, investment banking and research to the engineering and construction industry, reported that as of the fourth quarter, the nonresidential construction index (NRCI) has been in positive territory for three quarters in a row, but only slightly. Most of the major components are down, but expectations for markets are improving slightly.

As the New Year begins, nonresidential contractors will focus less on chasing stimulus projects and more on finding private work to fill their backlogs. When asked if the American Recovery and Reinvestment Act (ARRA) stimulus helped the construction industry, 44 percent of panelist said it had not. Panelists do not expect there to be another stimulus bill when the new Congress is seated. For 2011, FMI expects a continued period of slow growth before any signs that the private sector is significantly growing again.

The long recession brought about many changes to the industry, and FMI asked about one trend that could help make the construction business leaner and more efficient — the growth of prefabrication and modular construction. Panelists expect this area to grow faster than the market in general due to a number of drivers, including the growing use of Building Information Modeling (BIM), owners wanting projects faster and for lower cost, safety, quality and the shortage of skilled labor once markets return to more normal growth.

With any long recession, businesses make changes, first in order to survive, then to make companies more competitive and ready for the eventual upturn. For most panelists, the recession has brought about many good changes in their businesses. Some clearly could not see anything good about it, but most described their efforts to become leaner, more productive and efficient. They have been working on systems and processes, improving the quality of their people and reviewing their culture, markets and goals. They are anticipating the end of the slow down for construction, but not sure when that will happen, yet.