If everybody were as optimistic about the economy as John Capponi is, the country would be well on the road to complete economic recovery within weeks.
Capponi, president of Mega Construction, a concrete and site work contractor based in Philadelphia, recently purchased 12 New Holland LB90B backhoe loaders from Modern Equipment Sales Rentals’ West Chester, PA, branch. Of the 12 LB90Bs, 10 have extendahoes and two are standard with hydraulic quick disconnects for the use of Rammers. All are 4WD and are equipped with flip over forks.
For Capponi, the decision to purchase so many LB90Bs at one time was based on what he believes will soon be a very busy stretch for the construction industry.
“The engineers and architects that I’m speaking with, along with economists, are all saying that we’re coming out of a recession and the leading economic indicators are pointing to a sustained period of growth,” said Capponi. “And we’re going to be ready for that by investing in new equipment now.”
Capponi also credits the depreciation bonus and low, long-term interest rates as spurring his decision to buy.
The depreciation bonus is part of the Job Creation and Worker Assistance Act of 2002. The bonus, which was originally 30 percent, was increased to 50 percent when President Bush signed the Jobs and Growth Act of 2003. The primary stipulation is that equipment must have been purchased after May 5, 2003 and must be placed in service prior to Jan. 1, 2005.
Already all 12 of his new backhoe loaders are hard at work.
“On the day we purchased the LB90Bs, every one of them was immediately put to work on concrete and site work projects for Home Depot, Target, and Kohls department stores and various other retail projects,” he said.
Capponi also said that Mega intends to lease the LB90Bs.
“Primarily, we use the backhoes for concrete and site work. But secondly, we get phone calls from utility contractors who want to lease our equipment for a day. Along with the equipment, we provide one our experienced operators to run the machines for them,” he said.
This “mega” equipment purchase is not the first time Capponi placed a hefty order with Modern. In early 2001, he bought 12 New Holland 575E backhoes. He traded in 11 of those to purchase the 12 New Holland LB90B backhoe loaders.
To say that Capponi is a loyal Modern customer would be an understatement. But Modern has earned his loyalty, trust and respect.
“I bought from Modern because I believe they have integrity. I’ve known Al Funk [president] and Bob Pelouze [sales representative for South Jersey and Bucks County and Philadelphia, PA] for a long time and I’ve grown to depend on them and Modern over the years. They’ve always kept their word; they provide a very good product at a very competitive price,” he said.
Capponi also holds his new LB90Bs in high regard.
“They’re operator-friendly and they’re equipped with air-conditioning. We want our operators to be comfortable because the more time they’re in the cab, the more productive they are,” he said.
Since 1990, when Mega Construction was founded, the company has become one of the most respected concrete and site work contractors in the Philadelphia area and been a subcontractor for companies such as L.F. Driscoll, Jeffrey Brown and IMC.