Caterpillar Incorporated, also known as CAT is a United States based corporation that is based in Peoria, Illinois. The company commonly known as CAT is known around the world as the largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Well known and famous for their products that feature the Caterpillar track and distinctive yellow paint, CAT produces a wide range of heavy equipment for all types of jobs, including the very popular Caterpillar D9 bulldozer.

 The story of CAT dates back to the late 19th century, when Daniel Best and Benjamin Holt were experimenting with different ways to fulfill the promise that steam tractors held for farm work. Prior to 1925, the Holt family had pioneered track tractors and gasoline powered engines. After the companies of Best and Holt were merged, the company went through several changes then at the end of World War 2, they began to grow at a very fast pace, launching the first venture outside of the country in 1950, which marked the beginning of CAT development into a big corporation.

 CAT equipment ranges from track type tractors to hydraulic excavators, backhoes, motor graders, off road trucks, wheel loaders, tractors, diesel and gas engines, and gas turbines. CAT equipment is used in construction, excavation, building roads, mining, energy, forestry, transportation, and material handling companies.

CAT almost went down in the early 1980s due to the massive union strikes and a down turn in product demand. At the time, several news reports indicated that products were piling up so high in facilities that temporary workers hired to work the lines could barely get to their stations to perform their jobs.

In the 1990s, CAT suffered yet another long strike in which the company hired what it deemed to be permanent replacements for union workers that were on strike. During both strikes, jack rocks were placed in the home entrances of many of CATs top executives and employees, puncturing> the tires of their vehicles and making things worse for the company.

Whatever your needs are, you can find a skid steer model to fit the bill. Manufacturers today are offering more and more models and a greater range of features to help operators get the job done and assist you in serving those operators.

The following pages include a listing of what many leading manufacturers have to offer in the way of skid steers. For more information on any of these models, please use the reader service card included in this issue.

New Holland Construction
The LS Series SuperBoom skid steers feature greater visibility, more lift capacity, better stability, added durability and better dump height and reach. Added performance and operator comfort are packed into compact frame sizes to enable efficient operation in tight, narrow and confined spaces. The units are suited for various applications, including landscaping, construction or demolition.

John Deere
The 300 Series skid steers incorporate a unified design, optimal 60/40 weight distribution, a low center of gravity, long wheelbase and large tires for greater stability and productivity. Other features include a patented vertical-lift boom, turbocharged high-torque diesel engines, smooth, responsive servo controls, added pushing power and breakout force and high visibility around the machine.

Gehl Co.
The 40 Series is a mid-size family of skid loaders featuring higher horsepower, higher load capacity, more hydraulic power, spacious cabs, control choices, Deutz 2011 Series engines and an engine auto-shutdown system. The 7810 skid loader provides lift heights of almost 12 ft., operating load ratings up to 3,675 lbs., turbo diesel engines at 115 hp and ground speeds up to 13 mph.

JCB Inc.
The 190 and 1110 Robot skid steers are available with wheels or high-drive rubber track systems. The units feature a single loader arm mounted in a low-level, single tower on the right-hand side of the machine. This design provides greater visibility with an unhindered view to the rear and right-hand side. With no left-hand loader tower, visibility is completely clear to the left side of the loader.

If you’re looking for extreme savings on your heavy-duty gear, but you’re understandably unwilling to sacrifice any quality, you need to check out the selection at Texana Machinery. We maintain a large, rotating inventory of durable, well maintained, top brand used heavy construction equipment. Our easy to navigate website makes it simple to see exactly what’s available at both our San Antonio and Austin dealerships. We’ve worked very hard to offer used heavy equipment for sale at some of the most competitive prices in our industry, so it’s worth your time to explore the site and take a look for yourself. And if you’re searching for brand new supplies, you won’t be disappointed here either. You’ll find great rates on pristine gear - everything from a Case backhoe or crawler dozer to Takeuchi excavators. It’s our aim to exceed your every expectation, so you know you can shop with confidence when you’re dealing with Texana Machinery. While you’re here, please take a moment to bookmark our site. That way, it will be easy for you to return for all the most current information on pricing and availability of reliable pre-owned machines!

Let’s say a struggling home builder in Florida puts a bulldozer or forklift on the auction block. The heavy equipment often ends up in Dubai or some other far-flung place where it’s needed.

Often, the buyer and seller connect through the world’s largest auctioneer of industrial equipment, Ritchie Bros. Auctioneers.

Analysts say this type of scenario, played out again and again, allows Ritchie Bros. (RBA) to thrive even when the U.S. economy slows.

Slumps not only increase supply for auctions, but also push many buyers to buy used gear at auctions, rather than pay more for brand-new hardware.

“This company is positioned to grow regardless of the economic conditions,” said analyst Avi Dalfen of Blackmont Capital.

Turbulent Times

Ritchie Bros. executives sound equally bullish, despite facing what an increasing number of experts are calling a U.S. recession.

“We tend to grow faster in times that are more turbulent,” CEO Peter Blake told IBD. “These assets move very readily around the globe, and they go to the countries that have the higher demand.”

The Richmond, British Columbia, company runs 38 auction sites worldwide. Plus the Ritchie Bros. Web site lets customers all over the globe watch auctions and place bids from their homes and offices.

The auctioneer’s global platform is often described as a sort of New York Stock Exchange for heavy equipment. No other auctioneer of industrial gear comes close to doing business on the same scale.

“When you do the math, you end up with our gross auction proceeds being greater than 50 competitors combined,” Blake said. “We’re quite dominant.”

The company’s gross auction proceeds totaled $3.19 billion last year, bringing revenue of $315 million mostly through commissions. But that’s small compared with the roughly $100 billion global market for used heavy equipment. Blake sees that as an opportunity.

“There’s lots of room for us to grow in that $97 billion of transactions that are going through another channel,” the CEO said.

The other channels include regular equipment brokers and dealers, smaller auctioneers IronPlanet and Taylor & Martin, and the many auctioneers working in just one market. Ritchie Bros. also sees potential customers in the legions of equipment owners who rely on newspaper ads or “for sale by owner” signs when they decide to shed some gear.

The company’s global reach probably is its main selling point. Blake says Ritchie Bros. aims to convince customers that it adds value by netting them a global price for their equipment.

“It’s hard to stand up against what we can offer in terms of a global marketplace,” he said.

The Web is helping Ritchie Bros. add to its worldwide reach. About $600 million of the company’s gross auction proceeds came through its Internet bidding service last year, representing a 35% increase from the previous year.

The company’s auctions will always take place in some physical setting, but the Internet audience is a bonus, says analyst Craig Kennison.

“It just means there are more potential bidders, and that drives prices higher,” said Kennison, of Robert W. Baird, which owns Ritchie Bros. stock and expects to seek investment banking work from the firm.

Ritchie Bros. has 38 auction sites located throughout North America and overseas, including in Dubai, the Netherlands and Singapore. It opened new sites last year in Colorado, Connecticut, Ohio and France. Analysts expect the company to open two or three new locations each year for the next three to five years.

Ritchie Bros. uses what it calls a “ramp auction method” at its sales sites. That simply means customers grab seats in a theater-style setting and watch the equipment that’s for sale roll up a large ramp.

The company says its bid callers typically sell each item in 30 to 45 seconds, going through about 1,400 pieces of equipment worth a total of $16 million at an average auction. All auctions are unreserved, meaning there are no minimum bids and everything sells to the highest bidder.

An estimated 80% to 85% of Ritchie Bros. buyers and sellers are end-users of heavy equipment — farmers, miners, road builders. The rest of the auctioneer’s customers are largely equipment brokers or dealers.

Equipment leasing is a good choice for companies that need heavy machinery, mostly because it is a strong financial decision. Construction equipment leasing is better than purchasing because it allows the business owners to put more money back into their business, which is important when a lengthy project requires new staff members. Equipment leasing does not require a hefty down payment, the monthly payments are generally low, and the payment terms are flexible. This allows construction companies, and any other type of company that uses heavy equipment, to invest their capital in more profitable areas.

Besides the accommodating payment options and low cost of construction equipment leasing, the tax benefits are also an attractive aspect of this financial option. While regular loans are only partially tax deductible, equipment leasing payments are completely deductible. It is important to consult a tax professional, however, before taking advantage of any of these benefits.

Another great thing about equipment leasing is that you will always have the most state of the art equipment to use, which is important since heavy equipment is very expensive and you don’t want to be stuck with an obsolete piece of machinery. With construction equipment leasing, though, you can still purchase the machine at the end of the lease term in most cases. The construction equipment leasing   company will usually provide a discounted rate, too; since the equipment has already been used.

Equipment leasing also offers the benefit of simplicity, which might not save money, but it saves time that can be used to make more money. When you sign up for a construction equipment leasing program, you just need to fill out one simple a simple application for any amount up to $250,000. Heavy equipment leasing allows you to hang on to more of your business’ money, has excellent tax benefits, eliminates the threat of obsolescence, and can be very easy to obtain. This makes it the best choice for companies that need heavy machinery.

Steep hourly cost makes operating efficiently more important to crawler dozers than most other construction equipment. The cost is largely associated with undercarriage wear, so the best dozer operators make every move count whether they’re doing production earthmoving, finishing or clearing land.Some of the best ideas for improving dozer productivity defy operators’ assumptions.

“A lot of operators who are doing production dozing think they should make long cuts. They want to see dirt boil or roll in front of the blade,” says Brad Van De Veer, senior product consultant at Caterpillar’s Edwards Demonstration/Application Center. “In reality, the blade will only hold so much dirt. Once it’s full, you start losing dirt off both sides of the blade, leaving windrows that will have to be moved again. It wastes horsepower and fuel, and it can cause track slip and undercarriage wear.

“You should be able to get a full load on the blade in two lengths of the tractor at the most — and that applies to any size tractor. Once the blade is full, you stop cutting and slide the dirt in front of the blade.”

Short, aggressive cuts set up what is perhaps the most energy-saving way to doze dirt — what Caterpillar calls “front-to-back or slot dozing.”

“You start one to two tractor lengths back from where you’re going to move the dirt, instead of on the opposite side of the field,” says Van De Veer. “Fill the blade and start a pile or fill the area.”

The next step is to back up one to two tractor lengths behind the start of the first cut, fill the blade, and slide the load, or carry it, through the slot created by the first pass and deposit it on the spoil pile. Use first gear to aggressively fill the blade. In small and medium sized tractors, shift up to second when sliding the load. Repeat the process, sliding a full blade load through the slot further with each pass.

Working in the slot increases blade load by as much as 30 percent and prevents material from falling from the blade.

Front-to-back dozing cuts undercarriage costs. Instead of backing the entire length of the cut after each push, you only reverse the tractor the distance of the previous push plus one or two tractor lengths.

“Running in reverse causes the most undercarriage wear, and it’s the most unproductive time in the work cycle,” says Van De Veer. “Working front to back, you reduce the amount of reverse operation, which decreases operating costs and increases productivity.”

Van De Veer says slots can be dug as deep as the blade is high.

After the first slot is completed, back up to about two tractor lengths from the spoil and move over, leaving about one-third of a blade width between the edge of the blade and the first slot. This berm will hold material in front of the blade on the second slot.

After the slots are cut to the desired grade, the work pattern reverses for clearing the berms.

“You want to work from the rear of the cut, or the opposite end from the spoil, rather than front to back,” says Van De Veer. “Load up the blade quickly, and use blade tilt to steer into one of the slots to carry the load to the pile or fill.”

The leasing company contracts the construction company  to lease the equipment and pay for it monthly over a fixed time frame of typically two to five years. The lessee will sign the contract for the type of lease that caters to their financial capabilities. The lease can also depend on whether the lessee wants to own the equipment at the end of the lease term or “return” the equipment to obtain a more up-to-date replacement.Despite an ever-changing economy, equipment leasing might provide a simple solution to grow your business. Think: Fair Market Value Lease, Dollar Buy Out Lease and Commercial Leasing.

Capital is key in order to operate a successful business, especially when the economy is as fickle as it is today. The heavier your cash flow, the greater amount of growth your company will experience. This is especially relevant in the construction industry. For all types of construction, the goal is to complete projects in accordance with plans and specifications, on time, within budget, and at the lowest possible cost. A construction company’s success and failure could very well depend on adding a fourth crane to your garage.

Equipment is the single largest investment for a contractor, with costs running from $15,000 to more than $100,000 depending on the model and quantity. There is a solution to cut equipment costs and reduce overhead by way of equipment leasing.

According to the recently released Equipment Leasing and Finance Association’s 2007 Annual Equipment Finance Report, construction companies and trucks/trailers were deemed the biggest winners as far as benefits reaped from leasing equipment. In one year, construction leasing grew almost 2 percent, maintaining its No. 3 placement in the $6-billion equipment leasing industry.

Through certain equipment leasing plans, a contractor is able to select from leasing options that allow the company to trade in equipment for the latest upgrades. This is ideal in the construction business, where there are frequent advancements made to equipment requiring contractors to constantly update in order to stay competitive.

As the owner of a new roller compactor and lowboy tractor, John Souza, owner of Souza Custom Homes in Sacramento, understands the benefits of leasing new equipment. “Once you understand how leasing works, the pros are obvious. The tax benefits are great because the depreciation allows for a write-off.”

Souza’s company specializes in custom homes and excavating in the Bay area. After doing some research, Souza leased new equipment from a San Diego-based equipment leasing firm. “I was pre-approved, and the process was swift and easy. It was extremely important to me to be able to hang on to my capital

How It WorksAll business owners, small and large, can be lessees. Leasing companies secure the funds from the bank. More often than not, lessees are already pre-approved.

The leasing company, if it’s a good one, will handle all the paperwork, make sure everything is completed and coordinate with the equipment vendor. It is also the leasing company’s responsibility to ensure that payment and delivery are in sync with the schedule of the construction company, and to conduct any customer service needs.

Companies can lease everything from a single bulldozer to 10 concrete mixers. The business owner has a non-cancelable obligation to pay the lease fees and maintenance costs relating to the equipment during the lease term. The lessee also bears the costs of equipment damages and insurance.

Most leasing companies allow a business owner to choose any equipment from any vendor they desire and directly negotiate the purchase price. By closing the deal and assigning the purchase order to the lessor, the new owner has nothing to worry about. The lessor then signs the lease and pays the vendor directly.

Equipment leasing companies are able to help a construction company access financing quickly by using non-collateralized debt. Leasing firms have a unique relationship with financial institutions. This allows for a painless process that quickly establishes the credit ability of the construction business owner with no financials required in leases under $100,000. Equipment leasing has benefited thousands of businesses and helped many construction business owners like Souza run a successful and profitable business with no headaches.

The construction and mining machinery/equipment market is in the midst of a consolidation phase, as acquisitions and strategic partnerships are still continuing after a spurt in the consolidation wave of the nineties. The highly competitive industry has maintained price levels in the moderate range with slight fluctuations, over the last few years.

Nearly 4.8% growth is likely to be registered in the global construction investments by the year 2012. India and China are expected to grow at a healthy rate that is way above the average global growth rate. In terms of volume sales, United States is the largest regional market with an estimated share of 26.56% of the global unit sales in 2007. The new trend in US and Europe to combine a mini-excavator with a skid steer loader for optimum performance is one of the reasons behind the demand for mini-excavators. In terms of volume sales, skid-steer loaders represent the largest product segment in the United States with sales projected to exceed 71 thousand units for 2009. Sales of construction and mining machinery/equipment in Europe are projected to exceed 195 thousand units by the end of the year 2008.

Supply-demand dynamics for different types of construction & mining equipment is primarily determined by the nature of construction-related projects and level of mining activity in a country. Considering the diversity of projects in developed and developing nations, demand for construction equipment varies across regions. The developed world has well-established residential, commercial and industrial sectors, as well as advanced infrastructure.

Key competitive factors that affect construction & mining equipment manufacturers include service, distribution networks, quality, features and price. In addition, unprecedented growth in the rental industry transformed the landscape for customers, manufacturers and distributors of construction equipment. Further, key end markets for construction equipment such as mining and forestry exert a significant impact on the industry.

The report titled “Construction and Mining Machinery/Equipment: A Global Strategic Business Report” published by Global Industry Analysts, Inc., provides a comprehensive review of market trends, competitive scenario, mining equipment industry, product overview, product introductions/innovations, and recent industry activity. The study also analyzes market data and analytics in terms of sales volume for regions such as United States, Canada, Japan, China, Europe and Rest of World. Analytics are presented in terms of units over the years 2000 through 2010. Long-term projections are provided for the period 2011-2015. Select product segments independently analyzed include Mini Excavators, Hydraulic Excavators, Pavers, Compactors, Cranes, Crawler Loaders, Crawler Tractors, Backhoe Loaders, Graders, Haulers/Dump Trucks, Rough Terrain Forklifts, Scrapers, Wheeled Loaders, and Skid Steer Loaders.

Locate a professionally accredited appraiser before disclosing any confidential or sensitive information. Ask other types of appraisers for references if necessary. Verify that the professional designation is the result of testing and other significant criteria, and requires continuing education. The designation is evidence that the appraiser is a professional and serious about his profession. Some non-professional appraisers provide this service only as a sideline or part time, and are limited in scope regarding valuation theory and methodology. Avoid an appraiser who implies advocacy, or who bases his fee on contingencies such as percent of value or outcome of transaction, as these are normally considered unethical within the profession.

Define the appraisal question, property to be appraised, premise of value, how the appraisal will be used, possible implications to third parties, etc. A competent and accredited appraiser will maintain a professionally confidential relationship, so do not withhold information. If the appraiser is well informed, he should be able to provide a firm quotation and proposal prior to engagement.

Ask for a copy of his/her qualifications, looking for evidence of professionalism and experience in valuation. It is not always important that the appraiser have a track record with the specific industry or type of equipment, since his expertise is in valuation of machinery and equipment in general, not within a narrow specialization. It is not necessary to know how to repair or operate the equipment to estimate its value. It is possible that an estimate of value will be more objectively obtained if the appraiser must investigate the current market, versus using only his limited personal and possibly out-dated experience. However, an appraiser holding a professional designation within an area of specialty is advantageous, since the academic as well as technical aspects will be united. This would apply to such areas as aircraft, maritime, classic autos, etc.

Watch for and avoid the possibility of a conflict of interest. As an example, a used equipment dealer who might have a subject property owner as a present or potential customer may not be the best choice for an impartial opinion of value. A liquidator serving as an appraiser “guaranteeing” his appraisal could tend to be overly conservative due to anticipation of profiting from a future sale.

Until relatively recently, the public had to rely on tradespeople for appraisals of machinery and equipment on smaller scales (smaller businesses), since the professional machinery and equipment appraisers were mostly employed by large appraisal firms dealing with large projects. But there is presently a growing trend toward adding education to the experience, resulting in the availability of professionalism within this area of lesser “exotic” property appraisal. The leader of this emphasis has been the American Society of Appraisers, offering college courses and degrees, on-going educational seminars and programs, providing professional accreditation and designations to those qualified.

Reports indicate that Sumitomo (S.H.I.) Construction Machinery Co. is expanding its exports of hydraulic excavators. The expansion is intended to keep pace with sales in Europe, the U.S. and China. In Europe, CNH Global NV is expanding its distributor network and has increased the number of units imported finm Sumitomo by 40 percent to 1400 last year, and expects the same growth rate this fiscal year.

Sumitomo Heavy Industries Ltd.’s U.S. sales subsidiary, Link-Belt Construction Equipment Co., is also expanding its distributor network and in spite of the 35 percent decline to 700 units due to inventory reduction, shipments have exceeded expectations. Exports to China are expected to double to 500 units this fiscal year. Since April, hydraulic excavator exports have been growing at a 40 percent annual rate. In 2002, Sumitomo Construction Machinery expects to export at least 3000 units, 20 percent more than the previous year. The company makes all of the exported equipment at its Chiba, Japan, factory.