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Bobcat?EUR??,,????'?????<???EUR?s recent sale to a Korean firm was related to the current downturn in the U.S. housing market. The good news is that prices aren?EUR??,,????'?????<???EUR?t expected to dramatically jump, and accessory options have never been greater.
The news hit North Dakota like a storm cloud, but it wasn?EUR??,,????'?????<???EUR?t totally unexpected. A South Korean firm purchased U.S. loader maker Bobcat this summer. But back in January, the Fargo, N.D.-based company had laid off close to 100 workers, citing a slow market for construction equipment that was caused by the continuing downturn in the U.S. housing industry.
The sale was a blow for a proud American company. Caterpillar remains the biggest construction equipment maker in the world, with No. 2 Komatsu in Japan. But those companies concentrate on heavy equipment.
Bobcat competitor Case New Holland is based in the Netherlands. Other loader and compact-equipment makers like Gehl-Mustang, Deere & Company and A.S.V., Inc. remain rooted in the Midwestern U.S.
As of October, however, Bobcat prices have nudged up from 1 to 5 percent?EUR??,,????'?????<???(R)depending on the model.
?EUR??,,????'?????<?The sale of the company may be one reason,?EUR??,,????'?????<? said Art Mata of Cook Equipment Co. of Los Angeles, one of 900 Bobcat dealers around the world. ?EUR??,,????'?????<?Another reason may be the new motors that meet Tier IV (Calif. emissions standards) rules. The report that sales are down is news to me though. Our sales have gone steadily up over the past several years.?EUR??,,????'?????<?
A survey of the construction equipment market shows that compact models are growing in popularity. Bobcat, Mustang, New Holland, Toro and others are all producing compact track loaders that are increasingly used by landscape contractors to do more work with less personnel in enclosed areas like backyards. Like standard-size skid-steer loaders, the compact models come with a big stable of attachments. Augers, trenchers, buckets and loaders are just a few of the options available.
Passed earlier this year, a new California law will require construction companies and contractors to phase out older diesel-burning equipment starting in 2010. The rule requires companies to operate new models that conform with stricter emissions standards in an effort to make the state?EUR??,,????'?????<???EUR?s air cleaner.
The law is specific to California, but may inspire similar measures on the federal level or in other states. In any event, the rule will prompt changes that will likely be applied to equipment sold in other states.
One estimate suggests that at least 180,000 pieces of equipment in California alone will need to be replaced over the next decade and a half, so equipment manufacturers stand to see a significant boon in the sales department. One drawback for contractors is that replacement costs will fall especially hard on equipment rental businesses?EUR??,,????'?????<??oeso don?EUR??,,????'?????<???EUR?t be surprised if rental rates creep upwards over the coming years.
Equipment costs vary from dealer to dealer, and from region to region across the country. Prices are generally not published on manufacturer web sites. The best place to learn about details is at your local rental agency or dealer. A number of web sites also specialize in the resale of used equipment, as do some rental businesses.
Visit LandscapeOnline.com for basic product information. Click on ?EUR??,,????'?????<?product search?EUR??,,????'?????<? and then ?EUR??,,????'?????<?tools & equipment?EUR??,,????'?????<? to learn more.
Raleigh, North Carolina
Francisco Uviña, University of New Mexico
Hardscape Oasis in Litchfield Park
Ash Nochian, Ph.D. Landscape Architect
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