Longer Christmas shut-down for Skyjack scissors, but market share holds up

Skyjack has confirmed that this year's scheduled Christmas shut down at its scissor producing Guelph plant will be extended to four weeks due to reduced demand. However, market share across all product ranges holds up.

Skyjack's president, Ken McDougall Told AI, "In a ‘normal' year, Skyjack idles the factory for an approximate two week period in December to allow for the Christmas holiday, inventory, annual maintenance activities etc...This year due to lighter market demand we had extended this period to 3 weeks and with a look into 2009 we do not see a level of demand that would warrant another weeks worth of inventory being manufactured this year. Thus we came to a decision to extend this shut down period in the Scissor plant."

Similar announcements are being made across the industry as companies decide against making more inventory than required.

Mr McDougall was able to report that Skyjack was "Maintaining or growing market share across all product lines." He said, "With the addition of our VR Telehandler Line and the re-institution of the dealer network we are seeing relatively strong demand for the product as well as the Zoom Boom Line of Telehandlers specifically in the specialty ranges of equipment that we offer. These lines are not having an extended shut down."

Skyjack intends to continue monitoring market conditions and adjusting its position accordingly but like many businesses in North American and across the world its future actions may be influenced by a number of variables. For example the nature of any economic stimulus packages introduced by the new US administration or whether the lending markets open up and provide favourable rates to companies requiring access to capital expenditure.

"I think we are in store for an interesting next 12 to 18 months," said Mr McDougall, I hope at some point in 2009 we will see the light at the end of the tunnel.........I think the industry is strong, we are going through a correction cycle that has been heightened by the global economic conditions, I know the world leaders are working to have some type of plan pulled together, but until after Senator Obama is sworn in I am not sure that the US will step to the plate."