The Illinois Equipment Distributors recently held its annual meeting and election of officers on Oct. 11, at the Marriott Oak Brook Hotel, Oak Brook, IL.
The new officers elected for 2001 include: Jim Baker, Cummins Northern Illinois, president; Marty Ahrendt, Finkbiner Equipment, vice president; Lamont Cantrell, Roland Machinery, treasurer; Junior Kool, Vermeer Illinois, first-year director; Tom Stern, West Side Tractor, second-year director; and Guy Schaefer, Associates Commercial, associate director.
Jim Jacobs, president of of the Equipment Finance Group of Associates Commercial Corporation, addressed the group with the Economic Outlook for the construction industry in 2001.
In his presentation, Jacobs commented that the 2000 Consumer Price Index continues to rise. Commercial construction spending also is expected to rise before leveling off and then entering a slight downturn.
In the bituminous machinery industry, manufacturers are laying off. According to Jacobs, it was expected that TEA-21 spending would help improve the market but this has not materialized. However, foreign markets are experiencing an explosion in equipment sales.
The major trends in the industry, he added, is toward consolidations. Case New Holland is closing some facilities in Illinois, North Dakota and Wisconsin. Volvo bought Mack; John Deere bought Timber Jack; and Cat bought a paving compactor.
In the rental industry, Jacobs revealed that rental companies are canceling orders at the factory. According to Jacobs, rental rates in general are down. Most contractor believe, however, that rental rates are going up.
He also reported that manufacturers fear more risk in their business with rental operations, and that construction equipment distributors must find a way to compete with the rental companies in order to survive.
Secondary markets, Jacobs added, contribute to the mix. In internet auctions, 80 percent of buyers go to see the equipment and then go home to submit the bid. Ritchie Brothers estimates its internet sales at 2 percent. There appears to be a lot of used equipment available, he said.
