Terex is a monster company assembled from many small parts. Since 1995, Terex has acquired over 20 different companies, making it the world’s third largest construction equipment manufacturer today, behind only Caterpillar and Komatsu. The multi-national construction business offers more than 50 unique brands, selling equipment large and small to construction, utility, quarrying, recycling, mining, shipping, transportation, rental and refining markets.

In mid-January, Terex Corp. announced that it had reached a definitive agreement to acquire another company. This time it was a compact equipment legend — ASV Inc. — one of the pioneers of compact track loaders (a new market for Terex). Headquartered in Grand Rapids, Minn., ASV manufactures compact rubber track loaders and related accessories, undercarriages and traction products. The transaction is valued at approximately $488 million, or $18 per fully diluted share of ASV common stock, and is subject to the valid tender of a majority of ASV’s fully diluted common shares, regulatory approvals and other customary conditions. Terex expects the transaction to close by the end of the first quarter of 2008.

“ASV is a leader in compact track loader technology and with the global reach of Terex, we see tremendous opportunity for expanding ASV product sales,” said Ronald M. DeFeo, Terex chairman and CEO. “The ASV acquisition is an excellent strategic and cultural fit and provides a great addition to our product offerings as Terex continues to grow as a global construction equipment manufacturer. From a financial perspective, we expect that ASV will add approximately $220 to $250 million in sales on a 2008 full-year basis and we are confident that this acquisition will enhance future earnings growth potential for Terex.”

ASV compact track loaders feature a patent-protected undercarriage and exert 1/10 the ground pressure of a skid steer loader, resulting in much less ground or turf damage during work. In addition, compact track loaders offer increased traction and greater stability. ASV compact track loaders will join an existing Terex compact equipment range of backhoe loaders, mini excavators, compact wheel loaders, site dumpers, compaction rollers, light towers, generators and telehandlers.

“This combination with Terex is a perfect fit for ASV,” said Richard A. Benson, chairman and CEO of ASV. “We gain access to the resources and know-how of a much larger company with a very impressive global footprint. ASV will have access to a broader product line and our production facilities could benefit significantly from the incremental volume of Terex machines. The timetable for meeting ASV’s strategic priorities is accelerated considerably by the merger, which is a big plus for employees, dealers and the communities in which we do business. Caterpillar Inc., a large ASV customer and owner of 23.5 percent of ASV shares, has indicated its support for the merger.”

“We are truly excited to welcome ASV, its team members and distributors to the Terex Construction family,” said Robert Isaman, president of Terex Construction. “There is no question that our combination with ASV represents a great step forward for both companies and that our customers in the construction, landscaping and homeowners with acreage segments will be the ultimate beneficiaries of our expanded product offerings.”

Sen. Grassley Visits CNH Plant, Showcases Updates, Jobs and Military

Sen. Chuck Grassley is big potatoes in Iowa. He’s a senior Republican Senator of the U.S. Congress — not to mention a ranking member of the Senate Finance Committee, which concerns itself with our nation’s fiduciary duties, from depositing public moneys and managing tariffs to revenue sharing and social security.

Recently, Sen. Grassley visited the CNH (Case New Holland) manufacturing plant in Burlington where it makes loader backhoes, tractor loaders and rough-terrain forklifts for the Case brand. In addition to participating in an employee assembly and plant tour, Sen. Grassley had the opportunity to operate a Case loader backhoe, the flagship product of the plant.

Sen. Grassley also witnessed the manufacturing processes dedicated to fulfillment of Case Construction Equipment’s five-year contract with the U.S. Army to supply more than 500 backhoe loaders.

“We’re honored to host Senator Grassley’s visit,” said Robert Ciecko, plant manager. Ciecko explained that the plant recently completed the insourcing of Case tractor loader backhoe chassis welding and loader arm welding operations. “The total investment exceeded $8 million and 40 new welding jobs were created. Insourcing was partially possible due to $600,000 in IDED funding and an ample supply of high-quality welders in the Burlington area, which traditionally has a strong manufacturing heritage.”

“Senator Grassley’s visit is the latest in a long line of historical milestones at the Burlington plant,” said Jim McCullough, president and CEO of Case Construction Equipment Inc. “This facility has been a cornerstone of the local economy since its opening in 1937, and it has been the home of the Case loader backhoe, the world’s first factory-integrated machine of its type, for more than 50 years.”

McCullough further noted: “Oversight of Defense Department projects has been one of the Senator’s main areas of interest, so we’re very pleased with this opportunity to give him a direct report on Case’s success in fulfilling our Army contract.”

The 1 million-sq ft plant employs more than 430 full-time employees and approximately 100 contract employees and is a leading manufacturing operation in the area. Sen. Grassley has visited every one of Iowa’s 99 counties at least one time every year since his election to the Senate in 1980. In addition to the Finance Committee, he serves on the Agriculture, Judiciary and Budget committees.

Yanmar and Briggs & Stratton Form Alliance

Briggs & Stratton Corp. is one of the largest manufacturers of small, air-cooled engines for lawn, garden and other outdoor power equipment. Yanmar Co. is the pioneer of the world’s first compact diesel engine. Now these two trendsetters of advanced engine technology are joining forces.

Yanmar Co. Ltd. recently entered into a long-term alliance with Briggs & Stratton Corp. to (amongst other things) develop a highly efficient and cost competitive new gas engine product line for Yanmar, as well as setup global procurement parts and material systems, refine world-class manufacturing processes, as well as further expand a strong sales network. This partnership marks both companies mutual aim to achieve growth through complementing each other’s strengths, said Yanmar officials.

Currently, Yanmar produces 70,000 gasoline engines for Yanmar group companies and OEMs in Japan. Yanmar will discontinue the development and production of its own gasoline engines due to the constraints associated with the ever more stringent engine exhaust regulations arising in the future. Instead, Yanmar will receive gasoline engines from Briggs & Stratton (B&S) from the end of 2011 and focus mainly on development and production of diesel engines.

In addition, Yanmar plans to procure parts for Yanmar air-cooled diesel engines through B&S, which owns an engine manufacturing plant in Chongqing, China, from the end of 2007. B&S will collaborate with Yanmar in the development of new engines that will meet Yanmar’s strict standards, as well as the quality and cost requirements of the market. Collaborative development and rigorous tests will be conducted between Yanmar and B&S engineers to ensure these goals are met. B&S will partner with Yanmar’s sales and service network in order to strengthen its sales in Japan and other Asian countries.

Bobcat Contest Unleashed The Compact Equipment Trailblazer Launches 50th Anniversary Competition

Bobcat Co. specializes in tool-carrier concepts. From the original skid steer loader in 1962 to its new CT Series compact tractors, Bobcat creates multifaceted machines that take umpteen types of attachments and subsequently end up in a multitude of unique markets.

In 2008, Bobcat marks 50 years of equipment versatility and is looking to its end-users for unique stories about their creative applications using Bobcat machines. In the How Bobcat Unleashed Me Contest, the company asks users to share how Bobcat equipment has helped them in performing work better, smarter and faster. To enter, equipment users need to write a brief essay about their experiences with Bobcat equipment and fill out an entry form at the Bobcat 50 Years Unleashed Web site, www.bobcat.com/50. The grand prize winner will receive a $75,000 Bobcat gift certificate, good for products or attachments of the winner’s choice at a designated Bobcat dealership in North America.
Selected winning entries will be posted on the Bobcat 50 Years Unleashed Web site. Entries will be judged on creativity, quality, completeness and originality of answers, as well as any supporting documents. The How Bobcat Unleashed Me Contest concludes on May 30.

Other prize details: Five second prize winners will receive $1,000 gift certificates, good for products or attachments of the winners’ choice at designated Bobcat dealerships in North America. Ten third prize winners will receive a Bobcat jacket and 50 monthly winners will receive the Limited Tailgate Edition of the book Bobcat: 50 Years of Opportunity, 1958 — 2008. Weekly winners will receive a Bobcat 50th Anniversary hat. The grand prize winner will be selected from the weekly winners.

Constructing Economic Incentives
The Government's 2008 Stimulus Package Offers Contractors New Equipment
By Eben Wyman

When the second session of the 110th Congress opened in January, lawmakers returned to the nation’s capital to find a new hot topic front and center on the national agenda — namely, a sputtering economy and new talk about the dreaded “R” word, recession. Almost immediately, everybody — meaning the Bush Administration, Congress, advocacy groups, think tanks and others — began coming forward with their plans and/or policies aimed at providing an effective economic kick-start. Ideas that crossed the finish line would be included in a new economic stimulus package.

Of course, while all agreed that stimulus legislation was needed, there were immediate disagreements about what actually attracts and enhances economic activity. What, if anything, can Congress do to encourage people to get out there and spend money? What encourages businesses to buy equipment and materials and hire more workers? One thing was clear upfront: Only stimulus policies that were “timely, targeted and temporary” would be considered.

The National Utility Contractors Association (NUCA) worked the Economic Stimulus Act of 2008 from start to finish, as the whole process flew through Congress like a rocket and within weeks, was signed into law by the president.

Media coverage on the stimulus package has focused on the tax “rebates” to some 130 million individuals, expected to be delivered later this spring and into the summer. However, will these checks actually be used on new purchases or will they be used to pay off credit cards, cover mortgages or simply put in a savings account? Recent surveys have reported that only 19 percent of the individuals who responded plan to use their rebate checks on new purchases.

The true stimulus provisions in the Act are tax incentives intended to spur economic activity by American businesses. Such business tax incentives are a wise approach to encouraging economic activity because the only companies that benefit are those that purchase new equipment and materials.

“This is a good package,” said Sen. Charles Grassley (R-Iowa), Ranking Member of the Senate Finance Committee. “It will get money to consumers and incentives to businesses so they can buy equipment or add employees.”

Here’s how it works. The bill allows businesses to write off (over 20 years or less) an additional 50 percent of the value of new investment expenditures in 2008 for items subject to current depreciation law. The remaining value of these investments would be depreciated over the life of the item. Additionally, small businesses would be allowed to write off the entire cost of new investment expenditures up to $250,000. This would just about double the current expensing limit and would apply to businesses with overall investment limits of less than $800,000 in 2008.

In the past, NUCA has worked with the Associated Equipment Distributors (AED) on lobbying efforts to include similar incentives in past stimulus measures, as well as to alert NUCA and AED members around the nation to these opportunities. AED encourages those who want to take advantage of the depreciation and expensing provisions to act early.

“If you’re thinking about taking advantage of the depreciation bonus, you should probably start looking around for equipment now,” said Christian Klein, vice president of Government Affairs and Washington Counsel for AED. “The depreciation bonus law requires that the equipment be purchased and placed in service in 2008. Given the lead times that are necessary for certain types of equipment, I wouldn’t recommend waiting until just before Christmas to place your order.”

For more information about the depreciation bonus provisions in the stimulus package, visit www.depreciationbonus.org.

Eben Wyman is NUCA Vice President of Government Relations.

NUCA is the largest trade association working solely for the underground utility construction industry. The association represents contractors, suppliers and manufacturers involved in water, sewer, gas, electric, telecommunications, site work and other segments of the industry across the country.

Genie Industries Acquires Phoenix Equipment Company

At Genie Industries, the concept of lifting people and materials higher extends to most of its product line. Since 1966, with the introduction of the Genie Hoist, the company has been evolving its machine models with aerial work platforms, articulating booms, telehandlers, material lifts, scissor lifts and ever upward.

To further its reach, Genie Industries Inc. recently announced it has acquired the assets of Phoenix Equipment Co., a Waco, Texas, company specializing in the refurbishment of aerial work platform equipment. This acquisition is key to Genie’s strategy of continuing growth and delivering value-added services for customers. If you didn’t know, Genie is a subsidiary of the equipment giant Terex (check out the lead news piece on page 8).

“As the market has grown, so has the need for refurbishment. With this acquisition, Genie Industries will now have a dedicated facility to refurbish and remanufacture products to customer specifications,” said Tim Ford, president of Terex Aerial Work Platforms (AWP), which includes Genie Industries. “In addition to standard refurbishment and remanufacturing services, Phoenix Equipment Company has the ability to complete warranty repairs and customer unit repairs, which will be an added benefit for our customers.”

Phoenix Equipment Co. began operation in 1996 as a small aerial lift rebuilding and repair facility. Currently, Phoenix employs more than 140 people in Waco. Since 1999, Phoenix Equipment Co. has been a factory-authorized Genie Industries refurbishment and repair center. John Carhart, founder of Phoenix Equipment Co., will continue with the company as it joins Terex AWP.

Canadian Couple Completes Cross-Continent Quadtrek on Polaris ATVs

Marc Joinville and France Labonté have spent the last six months traveling cross-continent on their Polaris Sportsman 800 X2s. At the beginning of January, they reached Cabo San Lucas, Mexico, and completed the cross-continent part of their trek. Joinville and Labonté still plan to ride to Kingman, Arizona, as their final destination.

“It has been an incredible journey,” said Joinville. “Considering the harsh conditions the Sportsman 800 X2s were used in, how incredibly rough some trail sections were and how much extra electrical gear they had to power, they performed beautifully.”

During a camping trip in Utah in 2000, Marc Joinville and France Labonté discovered an ATV trail that ran lengthwise through the State of Utah. Their finding sparked the dream to ride their ATVs from Canada to Mexico, through the United States. They contacted Polaris about their dream and the maker of “The World’s Toughest ATVs” provided them with two new Sportsman X2 800 ATVs, parts and clothing for the cross-continent trek.

“When Joinville contacted us about their idea to travel across the continent, there was no doubt they would be riding Polaris ATVs,” said Jeff LeFever, marketing manager for Polaris’ ATV division. “Their successful trek on the Sportsman 800 X2s proves Polaris builds ‘The World’s Toughest ATVs.’”

Joinville and Labonté departed from British Columbia, Canada, on July 7, 2007 with their ATVs and a trailer that carried all the basics they needed to survive the journey. Their “Quadtrek” took them through Montana, Idaho, Wyoming, Utah, Arizona and down the Baja peninsula, to Cabo San Lucas, Mexico. Along the way, they stopped at various ATV jamborees and fairs, met fans and shared stories of their journey.

“We have met so many new friends and seen so many incredible places,” said Joinville. “We thank Polaris for helping us fulfill our dream and providing us with the experience of a lifetime.”

Winner of Toro Super Bowl Sports Turf Training Program

Jared Knoodle is well on his way to the big leagues of the turf business. The Toro Co. announced that Knoodle, a turf student at Michigan State University in East Lansing, was the winner of the sixth annual Toro Super Bowl Sports Turf Training Program. In January

“I am very fortunate that I am doing what I dreamed of since I was young,” said Knoodle. “I have learned that three things are critical to be successful in the sports turf profession: pay attention to detail, be organized and prepared, manage people with respect and treat them well.”

Knoodle plans to continue his education, working towards a master’s degree in Athletic Administration at MSU. The Toro Co. and the NFL’s Super Bowl grounds team collaborated to offer a program aimed at enhancing the skills of emerging sports turf professionals. The Toro Super Bowl Sports Turf Training Program provides hands-on experience in establishing and maintaining safe playing fields for the highest level of football competition, which in the United States means Super Bowl Sunday.

Toro equipment and representatives have been involved in preparing the stadium and practice fields for each Super Bowl event since the inaugural game in 1967. Toro has forged strong partnerships with many sports venues and events including various Major League Baseball and National Football League stadiums, university and college stadiums, Talladega Superspeedway, the Rose Bowl and Disney’s Wide World of Sports. Communities around the world also trust Toro to help produce superior athletic fields for colleges, K-12 schools, and park and recreation organizations.

What Our Readers Are Saying:

Sound Off Answer These Questions, Get It Printed and Win a Free Pair of CE Gloves and an Outerwears Pre-Filter
Spring is looming on the horizon, which means a bit of spring cleaning and seasonal maintenance for your compact machinery. What insights can you and your crews share when it comes to tuning up, cleaning out and preparing small machines like skid steers, mini excavators and tractors for the new season of work? What preseason preventative maintenance techniques keep your equipment rolling long into the working months? We here at Compact Equipment are always trying to get our readers more involved with the magazine. We’re interested in communicating your opinions and interests, so we can make a better publication. In hopes of creating a direct dialogue with our readership, we’ll be asking a question each month in our Letters to the Editor department. If you send a response to the questions above and it gets printed, we will send you a pair of Compact Equipment leather work gloves and a nice equipment pre-filter (courtesy of the fine folks at Outerwears) — along with an autographed copy of the magazine with your letter (signed by editors Keith Gribbins, Jason Morgan and Pam Stask). Send your responses directly to kgribbins@benjaminmedia.com.
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