Midwest #4, 2011

Page 1

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Published Nationally

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Midwest Edition

February 19 2011 Vol. XVIII • No. 4

“The Nation’s Best Read Construction Newspaper… Founded 1957.” 470 Maryland Drive • Ft. Washington, PA 19034 • 215/885-2900 • Toll Free 800-523-2200 • Fax 215/885-2910 • www.constructionequipmentguide.com

Inside

Chris MacAllister (L), president of MacAllister Machinery Co. Inc., and Jerry Jung, dealer principal of Michigan CAT shake hands on the purchase of Michigan CAT.

companies. “Michigan CAT has a strong reputation for excellent customer service, a very good organization and a market twice the size of MacAllister. There are significant opportunities to grow and improve each company by sharing information, best practices, resources and common functions,” said MacAllister. Michigan Tractor, more commonly known as Michigan CAT, was founded in 1944 by Jerrold A. Frost Sr. who served as chief executive officer until 1971 when his son-in-law, Mark Jung, was elected

A large majority of rental store owners and managers — more than 80 percent — expect 2011 to be a much better year than 2010 according to the latest quarterly American Rental Association (ARA) Economic Survey of members. More than 34 percent of ARA general members responding to the survey expect rental revenues to show doubledigit increases in 2011 versus 2010 and another 46 percent expect at least singledigit increases this year. The results show a growing optimism for a significant rebound in 2011 as only about half of the respondents said revenues increased in 2010 compared to 2009. Nearly 30 percent of the respondents had revenue declines in 2010, but only 4 percent expect a drop in revenue in 2011. Nearly 70 percent of the respondents also expect to spend more on new rental equipment purchases in 2011 compared to 2010, a significant increase over last year. The spending expectations of general members also match up with the sales forecasts of ARA associate member equipment suppliers as more than 83 percent of the associate member survey respondents expect increased sales into the rental channel, including 52 percent

see PURCHASE page 26

see REBOUND page 44

CAM Holds 125th Annual Meeting...14

Southeast ern Equipment Hosts Open House...28

Alex Lyon Sales Heat Up in Florida Auct ions...80

Table of Contents ........ 4 Paving Section .... 29-37 Business Calendar ......48 Excavators & Attachment Section ..............................55-70 Auction Section ....75-83 Advertisers Index ......82

MacAllister Machinery Co. Purchases Michigan CAT The MacAllister family, sole owners of MacAllister Machinery Co. Inc., the Caterpillar dealer for Indiana, acquired on Jan. 31, 2011 Michigan Tractor and Machinery, the Michigan based CAT dealer. MacAllister Machinery was established in 1945 and is headquartered in Indianapolis with 16 locations throughout Indiana housing 750 employees and serving customers in the heavy construction, coal, quarry/aggregate, scrap/waste, commercial/residential construction, agriculture and power systems industries. Chris MacAllister, now president of both firms sees great potential for synergy between the sister

Rental Industry Expects Rebound in Coming Months

Truck Maker Volvo Posts Fourth Quarter Profit By Louise Nordstrom ASSOCIATED PRESS

STOCKHOLM (AP) Swedish truck maker AB Volvo on Feb 4 posted a profit for the fourth quarter, bouncing back due to a jump in sales on all its markets as well as success in

keeping costs down. Still, the earnings missed analyst expectations somewhat, mainly on the back of higher raw material prices and unfavorable exchange rates. CEO Leif Johansson, who is leaving his post in the second half of the year, said his

company had ended 2010 strongly, attributing the success to increased sales and “a conscious effort to maintain our costs on a low level.” Johansson said Volvo is seeing a continued gradual improvement in Europe as well as a healthy recovery in North America. He also see VOLVO page 44


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