AEM Study Focuses on U.S. Ag Equipment Industry's Impact on the Economy

The agricultural equipment industry has grown into a backbone business for the U.S. economy. From the first Farmalls to today’s behemoth six-row cotton pickers, the ag machine business generates $82 billion in economic activity today, responsible for nearly 250,000 jobs in all 50 states. Ag equipment exports also represent a major source of revenue for U.S. manufacturers, all of this according to a study jointly recently released by three major off-road equipment industry associations.

“U.S. Agricultural Equipment: Powering Jobs and Dollars” was undertaken by the Association of Equipment Manufacturers (AEM), the Farm Equipment Manufacturers Association (FEMA) and the North American Equipment Dealers Association (NAEDA). The economic consulting firm Global Insight Inc. conducted it. The study was developed to present to Congress as it prepares to reauthorize the current farm bill, which expires September 30, 2007. Researchers analyzed both the direct and indirect economic activity of the industry, as well as sector employment and agriculture equipment exports.

The study provides an in-depth look at the entire farm equipment sector and clearly shows that its economic impact extends far beyond making the equipment used on farms.

“The study outlines how a healthy farm economy boosts the agriculture equipment industry and generates jobs and dollars for rural America,” said Paul Kindinger, president and CEO of NAEDA. “It concludes sound governmental and trade policies, strong cash receipts and limited price shocks are factors in maintaining a healthy farm bottom line for farmers and ranchers.”

According to the study, the agriculture equipment industry directly generates $63 billion in revenue through the two major segments of manufacturing and dealer and wholesale merchandising. When the materials, services and supplies purchased by these segments are included, the overall industry powers over $82 billion of economic activity.

The ag equipment industry employs a high1y-skilled labor force in both rural and urban communities. Employees working directly and indirectly in the agriculture equipment industry are the recipients of a total payroll of $8.53 billion per year.

“The U.S. agriculture equipment industry not only drives farm productivity, but is an important contributor to the U.S. economy by providing well-paying jobs across the nation,” noted Bob Schnell, FEMA executive vice president.

Exports to other countries are an important contributor to the strength of the U.S. agriculture equipment industry as well, according to the study. For example, 2005 exports of $6.2 billion worth of agriculture equipment represented over 30 percent of the total revenue in ag equipment manufacturing that year.

From 2001 to 2005, exports rose 49 percent, nearly double the increase in total U.S.-manufactured goods. For more information, check out the PDF on the AEM Web site at http://Agstudy.aem.org.

The U.S. Army’s largest weapons systems research and development organization is called TACOM — the Tank-Automotive and Armaments Command. The TACOM Life Cycle Management Command is headquartered in Warren, Mich., and in partnership with the Army’s Program Executive Offices, it provides “mobility, lethality and survivability” for U.S. soldiers and its American allies.

When TACOM isn’t researching top secret weapons systems, it also provides mobile construction solutions to the Army. Case recently announced the award of a contract valued at more than $160 million to build nearly 1,500 compact track loaders and more than 1,900 skid steers during a 10-year period for TACOM.

“Case earned this award based on our response to a request for proposal that included, among its key criteria, the ability to support the vehicles with parts and technical services globally, the technical performance and reliability of our machines and our past performance in supporting other military contracts,” explained Jim Hasler, vice president of Case Construction Equipment. “In all these areas, Case was evaluated as Excellent, and Case skid steers and compact track loaders were deemed to provide the best overall value to the military.”

The Tier 3-compliant machines, called the M400T and M400W for tracked and wheeled units, respectively, will be built at the Case manufacturing plant in Wichita, Kan., to exclusive military specifications. Each machine will be delivered with four attachments — a four-in-one bucket, auger, hydraulic hammer and pallet forks, all housed in a self-contained, transportable module. Case will deliver the first test machines in 2008, with proposed production continuing through 2017.

During the past 36 months, Case has earned military contracts valued at more than $270 million. In 2005, Case was awarded a contract to deliver more than 500 new backhoe loaders to U.S. Army forces around the globe.

“The ability of Case to provide service and support to the military has increased the number of contracts we have been awarded and we look forward to the opportunity to earn additional work from the military in the future,” Hasler said.

Other current Case contracts with the U.S. military include the reset of 240 M4K rough-terrain forklifts, re-manufactured 210 MW24C wheel loaders for the National Guard, the reset of 355 MW24C wheel loaders for the U.S. Army TACOM and the supply of 500 engine re-power kits for the Case M4K rough-terrain forklifts.

Doosan Finalizes Name, Product and Marketing Transition

Equipment manufacturers are in constant metamorphosis. Right now Daewoo is a construction machine maker that’s finally coming out of its corporate cocooning. On Jan. 1, 1998, Daewoo Machinery Corp. merged with Daewoo Equipment Corp. to form a new $350 million dollar organization named Daewoo Heavy Industries America Corp. In April 2005, Doosan Infracore Co. Ltd. became the majority shareholder, and the name was changed to Doosan Infracore America Corp.

Why does any of this matter?

Now, Doosan Infracore America Corp. is responsible for North American sales, service and technical support of all Daewoo machine tools, construction equipment, lift trucks, skid steer loaders and mini excavators. Doosan Infracore America recently announced plans to continue to improve its products and services and has finalized the two-year change to Doosan-only branded heavy construction and compact equipment.

“Doosan Corp. has globally invested more than $50 million over the past five years to improve reliability and technology,” said John Vandy, president and COO of Doosan Infracore America, Construction Equipment Division. “We continue to strive to become one of the world’s five largest infrastructure support businesses. These additional enhancements to our products and services will help us achieve our goal.”

Doosan Infracore America said it has committed itself to providing efficient, durable products to the North American market. It introduced 10 Tier 3 DX excavators and five Tier 3 DL wheel loaders and expanded its dealer network to better service the North American market.

Ranked fourth in the global medium and large crawler excavator market, Doosan Corp. experienced revenue of $14 billion in 2006. In North America, there are more than 70 Doosan dealers with more than 130 locations and a North American Parts Distribution Center located in Atlanta, Ga.

According to Vandy, some of the developments dealers and customers can expect from the company this year: 17 new models, providing the most up-to-date products in the industry; 500 percent growth in sales and service training support so Doosan personnel; 100 percent growth in field and internal technical support to ensure machine uptime; a North American Parts Guarantee Program to maximize machine uptime; and new dealer-tested initiatives to ensure success when programs are rolled out to end-users.

Iconic brands almost always have enduring mascots — just ask Ronald McDonald or the Jolly Green Giant. One of the oldest trademarks in the world is that white inflated tire giant known as the Michelin Man. His real name is actually Bibendum and he’s an emblem that’s evolved with the rubber company for over a 100 years.

The Michelin Tyre Co. was founded in 1888 in the French city of Clermont-Ferrand by Edouard and André Michelin. In 1894, at the Universal and Colonial Exhibition in Lyons, France, the Michelin brothers stopped in front of a tall pile of tires and Edouard said to André, “Give it some arms, and it would look like a man.”

In 1898, the imagination of the Michelin brothers came to life thanks to the inventive paintbrush of the talented poster artist O’Galop (alias Marius Rossillon), who gave the tire-man character his first appearance in a now famous poster. In it, the Michelin Man quotes a Latin verse from the poet Horace, saying “Nunc est Bibendum” (“Now is the time to drink”) and the tagline “The Michelin tire drinks up obstacles.” Bibendum was born.

No sooner was Bib created than he began to play a major role for the company. He presented products and advised and assisted motorists, becoming the brand’s worldwide ambassador. From the end of the 1920s, Michelin used fewer independent artists. Accordingly, Bibendum illustrations became standard, giving way to photomontages of tires and vehicles. Bib also entered the world of cinema in cartoons and movies.

In the 1980s, Bibendum was again widely used in advertisements. For his centenary in 1998, the man of tires slimmed down, sporting a new, more dynamic look. In the 21st century, designers and illustrators are still inspired by the Michelin Man as shown by the large production of greeting cards, as well as the success of art competitions around him.

Today, Bibendum is recognized around the globe. He is a brand icon that is represented in 170 countries. Clear evidence of this was Bib’s election as the “Best Logo of the Century” in 2000 by an international panel of advertising experts in a competition organized by the international business publication, the Financial Times. Dynamic and visionary, Bibendum connects with the public and shows how a company can put a face and a name to a great product.

Wacker Corp. Celebrates 50 years in the United States

Bust out the party favors and the champagne, in 2007 Wacker Corp. celebrates its 50th anniversary in the United States. While the company’s roots date back to 1848 Germany, the opening of the U.S. operation for the family-owned manufacturer was a milestone for us Yankees.

In 1957, brothers Peter and Hermann Wacker had the foresight to bring a growing German construction equipment manufacturing business to the community of Hartford, Wis. This grassroots operation was first run by only three employees and offered one product, Hermann Wacker’s innovative soil compaction invention — the Rammer.

The brothers’ hard work and dedication did not go unnoticed by contractors and equipment distributors. The rammer’s reputation quickly skyrocketed in the United States and in 1958, land was acquired for a new 21,600 sq-ft office, warehouse and production facility. Today, Hartford still has a Wacker Drive named after the company.

Wacker Corp.’s impact on the construction equipment market over the last 50 years has been significant.

The company has continued to revolutionize the rammer from the introduction in 1966 of the first oil-lubricated model to its current line. In 1986, Wacker Corp. moved to a new facility in Menomonee Falls, Wis.

All areas of Wacker Corp. have seen extensive growth over the years. Besides the company’s signature vibratory rammer, the U.S. operation is responsible for the manufacturing of all vibratory walk-behind and ride-on rollers, trash pumps, portable and mobile generators and walk-behind and ride-on trowels. Wacker Corp. currently markets more than 150 models of machines in five strategic business fields. Those original three employees have increased to over 650 nationwide. In 2006, Wacker Corp. made its first acquisition with the purchase of Ground Heaters Inc.