Cat reports decline in US dealer investment

Premium Content
Murray Pollok

17 March 2008

Capital investment by US rental companies is showing signs of flattening or declining in 2008, according to two of the biggest suppliers to the rental market, Caterpillar and JLG Industries.

Caterpillar reported that sales of machines in North America had fallen by 12% in the three months to 30 September and said that as a result of the “weak economic environment, dealers added fewer units to their rental fleets and let existing fleets age.” Cat dealers are among the largest rental operators in the US.

Cat said that while non-residential construction remained “strong”, contracting activity for new projects fell almost 8% compared to the same quarter in 2006.

Oshkosh Truck Corporation, which owns aerial platform and telehandler manufacturer JLG Industries, said it expected North American rental fleet investment in 2008 to be “flat to slightly down, but the overall tone is strong.” Oshkosh is forecasting JLG's sales in North America in fiscal 2008 to decline by a double digit rate.

Southwest Industrial Rigging gets new owner and leadership team
Entering a new era but aspiring to continue Harry Baker’s legacy
Trail King debuts automatic kingpin steering trailers
New trio hailed as a fundamental shift in heavy-haul equipment design
How a modular test system overcame a genset bottleneck
When rising demand threatened to outpace a genset manufacturer’s testing capacity, a modular test cell bridged the gap – and laid the groundwork for future growth.