Manitou telehandlers like the MLT523 are specially designed to meet the requirements of agriculture (a newer market for the United States). With this new acquisition, can Gehl’s Ag background and expertise help Manitou break into the American agriculture market?

Compiled by CE Staff

Gehl Co. is an Ag trailblazer turned compact equipment pioneer, engineering machine solutions for North America since 1859. Skid steers, mini excavators, telehandlers, track loaders, wheel loaders, asphalt pavers — Gehl today not only makes a myriad of unique, small machinery, but also owns two other compact equipment staples (Mustang and CEAttachments).

In mid-September, Gehl Co. announced big changes for its future — that it had signed a definitive agreement to be acquired for $30 per share by its largest shareholder, Manitou BF S.A., a manufacturer and distributor of material handling equipment headquartered in France. The transaction, with an aggregate enterprise value of approximately $450 million, will be effected through a tender offer for all outstanding shares of Gehl by a Manitou subsidiary, Tenedor Corp., followed by a second step, cash-out merger.

“We are pleased to announce the next step in the evolution of Gehl Co. toward becoming a more significant player in the global compact equipment marketplace,” said chairman and CEO William D. Gehl, according to the company’s press release. “The combination of Gehl Co. and Manitou offers a substantial value to our shareholders today while affording our dealers and employees with future opportunities for continued success.”

Gehl produced agriculture implements for nearly 150 years before it moved into making only construction and landscape equipment. In 1986, Gehl aggressively moved into the light construction equipment market as it established a separate construction sales division and its bread and butter.

Manitou is headquartered in France and engages in the design, manufacture and distribution of material handling equipment serving the construction, agriculture and industrial sectors. With its 23 manufacturing and distribution subsidiaries, the Manitou Group is a global leader in rough terrain equipment (all-wheel-steer loaders and telescopic handlers). Such foreign investment is an increasingly popular trend in today’s U.S. economy, which is hindered by a weak U.S. dollar. Foreign investors are buying aggressively, taking advantage of what many see as bargain prices, while making inroads into the world’s largest market. Gehl has refused comments at press time.

Gehl Co. (NASDAQ GSM: GEHL) is a manufacturer of compact equipment used worldwide in construction and agricultural markets. The company is headquartered in West Bend, Wis., and markets its products under the Gehl and Mustang brand names. It is expected that the current management team will be retained following the transaction.

The definitive agreement contains customary terms and conditions, including the company’s right to terminate the agreement to accept a superior offer. In the event of a termination to allow the company to accept a superior offer, and subject to the company’s payment of a termination fee of $14 million, Manitou would be obligated to tender its shares into the superior offer. Manitou currently owns approximately 14.40 percent of the company’s outstanding stock. Manitou’s CEO, Marcel-Claude Braud, is a director of the company but did not participate in deliberations of the company’s board of directors concerning the tender offer.

Vermeer Enters Distribution Agreement with Gyro-Trac

The green machines at Gyro-Trac provide the brute force needed to blast the roots of trees. Now Vermeer dealers and customers will have easy access to these master mulchers, expanding their reach into the environmental markets.

Opportunities in environmental equipment have the big brains at Vermeer thinking. As one of the inventors of innovative Ag machines like the hay bailer and being a leader in the world of machines like wood chippers, the company sees the future of biomass, alternative energies and recycling as one of its biggest market focuses.

To further its commitment, Vermeer Corp. is set to expand its wood-waste processing and composting equipment line, entering into a distribution agreement with Gyro-Trac Mfg. located in Summerville, S.C., to distribute the flagship models of their line of mulching machines.

Gyro-Trac, founded in 1995, is a leading manufacturer of purpose-built, tracked mulching machines that are used in all types of land-clearing, vegetation and forestry management applications. This all-in-one technology allows customers to take one low ground-pressure machine into the jobsite providing enhanced productivity and less environmental impact.

“We are thrilled to be associated with Vermeer Corp. and its world-class global dealer network,” said Bruce Coy, president of Gyro-Trac. “This agreement will offer customers enhanced access to our technology, backed by the industry-leading Vermeer service support.”

The Vermeer network of independent dealers will have the option of adding the Gyro-Trac product line to their overall mix of products.

“Both companies recognized the mulching technology developed by Gyro-Trac aligns well with the environmental and recycling initiatives of Vermeer,” said Mike Byram, senior director of environmental solutions with Vermeer.

Case Sponsors 2008 Build Your Future Campaign

Building the future takes creative thinking, whether it’s investing in wind farms off the Atlantic coast or a powerful particle accelerator deep underground in Europe. For companies like Case, their machines are dedicated to building the future. When a Case skid steer or compact excavator rolls onto a jobsite, its aim is to construct better projects for a more prosperous tomorrow.

This here is a fiery diesel power plant, which feeds this gnarly piece of construction equipment, which you could be driving. Learn how construction jobs of tomorrow can fulfill your career requirements of today at the Build Your Future campaign.

Now the company is implementing that sentiment as one of the sponsors of the 2008 “Build Your Future” campaign. This national education and recruitment program increases awareness of the rewarding careers available in the construction industry.
“Through our sponsorship of the Build Your Future campaign and our involvement in similar causes, Case supports the next generation of construction industry professionals who will build America’s roads, bridges, schools, homes and infrastructure,” said Jim Hasler, vice president, Case Construction Equipment. Case also supports the Chicago Children’s Museum’s “Skyline Exhibit,” which illustrates the use of technology in the construction industry and engages future engineers, architects and equipment operators in hands-on construction project work.

The Build Your Future campaign includes “Careers in Construction Week,” which takes place Oct. 13-17. “Careers in Construction Week” is designed to increase public awareness of the contributions of America’s construction professionals and increase student interest in pursuing careers in construction. Schools, contractors and local organizations partner to host construction career events and programs during the week. These events allow students and contractors to speak directly to each other about employment opportunities.

The Build Your Future campaign also includes a comprehensive career Web site (www.careers.nccer.org) where students can post résumés and search online for jobs in the construction industry. This site receives approximately three million hits each year. For Case Construction Equipment career information, please visit www.cnh.com and click on “Careers,” then click on “North America.”

RSC Equipment Rental Helps Greensburg, Kan., Rebuild

The mission of The New York Says Thank You Foundation is to send volunteers from New York City each year on the 9/11 anniversary to help rebuild communities around the country affected by disasters.

The measure of a company’s character is its ability to provide a good product, take care of its customers and give back to its community. With the town of Greensburg, Kan., destroyed by a tornado on May 4, 2007, RSC Equipment Rental decided to lend its support to The New York Says Thank You Foundation volunteer initiative to help rebuild RSC stores in Kansas including locations in Dodge City and Liberal. RSC will also be providing more than 12 pieces of aerial and earth moving equipment for use in the reconstruction of Greensburg’s 14,000-sq ft main pavilion of the 4-H county fairground.

The New York Says Thank You Foundation commenced building the pavilion on Sept. 5.
“RSC is a proud member of the Kansas community and we are thrilled to lend our support to The New York Says Thank You Foundation in this worthy cause,” said Doug Call, senior branch manager.

“Our local stores and customers share a deep commitment to helping our neighbors and we are pleased to provide equipment and services for this effort.”

That generosity is catching. RSC customers from the local Kansas community are also participating. Brackney Construction of Hays will oversee the project and Lester Buildings of Wichita will supply in-kind materials. The New York Says Thank You Foundation effort will be led by 250-plus volunteers, including New York City Firefighters, 9/11 family members and Ground Zero Construction workers.

In an annual tradition to commemorate the kindness extended to New Yorkers in the days following Sept. 11, The New York Says Thank You Foundation sends individuals affected by the attacks to help rebuild communities around the U.S. dealing with the aftermath of a disaster.

Higher Fuel Costs Drive Greater Efficiency, Says Komatsu Survey

Fuel efficiency means regular equipment servicing, as poor fuel economy can be caused by dirty air filters, old spark plugs or low fluid levels. Check tire pressures regularly and keep them inflated at the level recommended by your vehicle manufacturer. And make sure track systems are in top shape.

Oil prices continue to rise, markets remain volatile, demand is higher than ever and like everyone else in North America, construction equipment owners and operators are feeling the pinch at the pump. According to a new Pulse Survey by Komatsu America Corp., more than three-quarters (76.9 percent) of construction equipment owners surveyed said that fuel efficiency has become a greater priority at their firms during the past 12 months. As a result, many respondents now employ a variety of fuel conservation methods including:

1. 53 percent have reduced idle time
2. 43.9 percent are considering purchasing more fuel efficient machines
3. 42.4 percent are running machines in “fuel efficient” mode
4. 24.2 percent are utilizing their fleet management systems to better track fuel consumption
5. 19.7 percent are using biodiesel
6. 9.1 percent are integrating automatic shutdown technology

“In this climate of high fuel costs and growing concern about environmental impact, Komatsu remains committed to providing compelling value to our customers through innovative technology and customer support,” said Erik Wilde, vice president, product marketing, Komatsu America Corp. “Through our fleet management system, KOMTRAX, all machine owners can more accurately monitor idle time — a key to greater fuel efficiency — helping Komatsu customers match the correct machine to idle time. Additionally, our products are equipped with fuel efficient modes which help customers operate efficiently, while reducing their carbon footprint.”

Higher fuel costs mean fuel expenses have become a larger portion of construction firms’ operating budgets in the past year. According to the Pulse Survey, 43.9 percent of the respondents said that between 30 to 50 percent of their operational budgets would be allocated to fuel costs this year, compared to just 13.6 percent of respondents who indicated that fuel costs were such a large portion of their operating budget in 2007. Additionally, 12.1 percent of survey respondents said fuel expenses would be more than half of their operating budget this year, compared to 9.1 percent for 2007.

Komatsu America Corp’s Pulse Surveys are designed to “take the pulse” of construction professionals on topics of significant interest to the construction industry. The Pulse Surveys are conducted approximately 4 to 6 times a year. This online survey about fuel efficiency was conducted from June 4 to July 11, 2008.

Loader Longevity Bobcat’s M600 Model Skid Steer Loaders Is Still Going Strong after 50 Years By Eric Morse It’s been a half century since a small manufacturer in southeastern North Dakota and two blacksmith-inventor brothers from west central Minnesota joined forces to build a machine that would change the world. Some of those products, like Billy Barwald’s Bobcat M600 skid steer, are still working nearly four decades later. This year is the 50th anniversary of a revolution. For the past half-century, workers in industries such as agriculture, construction and landscaping have been set free from the drudgery of hand labor. The skid steer loader, and other types of compact equipment that followed, have freed workers to be more productive on the job by mechanizing tasks once done with shovels, pitchforks and wheelbarrows. Melroe Mfg. Co. introduced the M60 Melroe self-propelled loader in 1958 and an improved model, the M200, the following year. The M60 and the M200 loaders both had a rear caster wheel. The M400 was the first four-wheel drive skid steer loader. In 1962, the “Bobcat” brand name and logo first appeared on the model M440, a completely new loader design sporting the distinctive coat of white paint with orange trim that remains to this day. Throughout the 1960s, the use of Bobcat skid steer loaders continued to expand throughout the United States and the world. In 1966, skid steer loaders came to Florida. Billy Barwald, a landscaper in Jacksonville, Fla., became the first skid steer owner in the state when he purchased a M600. Barwald continues to use the machine today at his citrus tree nursery. Barwald rented the M600 for $600 a month. “After about a week, I got the feel of it. After the second week, I really began to like it. By the end of the month, I was in love with it,” said Barwald. Barwald eventually purchased the M600, backhoe attachment, bucket and pallet fork for less than $10,000 and paid for it in less than a year. With the help of the M600, Barwald mechanized more and more of his landscaping projects and reduced his labor staff from eight to three men. Today, Barwald is 90 years old and the M600 has assisted him for 42 years. Barwald operates his own business, Flying Dragon Citrus Nursery, where the M600 continues to work on a daily basis. The 8-acre property contains 2 acres with a thousand citrus trees that are sold to homeowners and landscape contractors. The M600 unloads citrus trees from trucks when they arrive at the nursery, moves mulch and dirt with a bucket and picks up trash with a grapple. “The M600 has made it possible for me to continue working at 90 years old,” says Barwald. “Nobody has to pick up or handle anything heavy. It’s an enormous benefit, particularly in a small operation like this where we don’t have a lot of help.” Eric Morse is a public relations manager and technical writer for Two Rivers Marketing, based in Des Moines, Iowa.

Technology’s Tuition

Already comprised of 18 colleges and offering more than 150 courses of study, the University of Illinois will expand once again with the John Deere Technology Innovation Center.

Emissions standards, increased productivity, fuel economy, safety, maintenance — the future of construction equipment rests in the hands of forward-thinking engineers who can deliver cutting-edge technology. To stay at the front of the pack, Deere & Co. invested $1 million to create a John Deere Technology Innovation Center with the University of Illinois to leverage the skills and knowledge of faculty and students in the areas of agriculture, business, engineering and information technology.

“This investment dovetails perfectly at the University of Illinois with our 140-year history of addressing the most critical needs of society,” said Chancellor Richard Herman of the University of Illinois. “Furthermore, it will enhance the knowledge and skills of faculty and students as we continue to prepare our graduates to compete and succeed in the global marketplace.”

The new facility is located in the University Research Park in Champaign, Ill., and will create an accelerated innovation environment to assist Deere in utilizing advanced electronics, mechatronics, advanced sensors and control systems technology.

“This important effort will extend our industry leading investment in research and development on behalf of our customers,” said Robert W. Lane, chairman and CEO of Deere & Co. “Our efforts to apply innovation in our products and services result in increased productivity for those who use John Deere equipment.”

Deere said the new technology innovation center in Champaign will expand its capabilities to respond to the rapidly changing environment for John Deere’s customers and businesses through leveraging the capabilities of the University.

The center in Champaign will remain a satellite organization to John Deere’s Moline Technology Innovation Center, which is located on the campus of the company’s World Headquarters in Moline, Ill. The new Champaign location will intensify Deere’s efforts to track key technology developments impacting the company.

Aerial Work Platform Training Tops APEX Conference Skyjack group president Ken McDougall has a license of safety and skill: “I received my PAL Card in 2006 and I am proud to say that Skyjack supports the IPAF training program worldwide” “Operator training is paramount to ensuring the access industry is made safer,” said Skyjack group president Ken McDougall in his keynote speech at the 6th annual APEX aerial platform exhibition conference on Sept. 17 in Maastricht, the Netherlands. “The more educated and trained operators of access equipment we can have, who have been globally trained to a documented standard, the better off the access industry is.” McDougall urged manufacturers to actively promote the safe use and operation of aerial platforms, as understanding the proper operations and limitations of equipment is paramount to safety. “The best way to ensure we have this training implemented on a consistent basis is by having a standardized and accredited training program globally,” said McDougall. “We will not ensure uniformity and consistency in training by conducting ‘back of the truck’ sessions that may vary depending on the allotted time and skill of the person conducting the training.” He commended and fully endorsed the International Powered Access Federation’s (IPAF) operator training program as the driving force behind global operator training. In North America, Aerial Work Platform Training (AWPT), a subsidiary of IPAF, provides a training program that meets American National Standards Institute (ANSI), CSA and OSHA standards and is based on the ISO-certified IPAF training program. “The IPAF program gives the industry an example to follow on how to standardize and implement operator training. It is not manufacturer-specific but gives the fundamentals required to operate different types of equipment. I received my PAL Card [Powered Access Licensed-Registration] in 2006 and I am proud to say that Skyjack supports the IPAF training program worldwide.” “Ken has hit the nail on the head,” commented Tim Whiteman, managing director of IPAF. “Standardized, generic operator training is the way to prevent unnecessary loss of life in what should be one of the safest industries in the world. Our audited program is a pragmatic solution developed by manufacturers and rental companies. It is available to anybody willing to become an approved training center. By auditing our training centers, we ensure that the PAL Card means the same no matter where your operator was trained. I invite any manufacturer, rental company or training institute to contact us and support the cause of standardizing operator training.”