Tag Archive for 'construction industry'

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Liebherr Construction Equipment Co. Renews Its Long-Term Partnership With American State Equipment And Expands Territory.

UnknownLiebherr Construction Equipment renewed its forty year partnership with American State Equipment as they expand their sales territory.

The longest standing Liebherr Dealer in the United States, American State Equipment, has renewed its dealer agreement for the full line of Liebherr earthmoving and material handling equipment in the states of Wisconsin, Minnesota and the Upper Peninsula of Michigan and expanded territory to include the entire state of Illinois for its wholly owned subsidiary Finkbiner Equipment Company.

“We are very pleased to have reached an agreement renewing our long established partnership with Liebherr Construction Equipment“ said Tim Kraut, President and Chief Operating Officer of American State Equipment Co. “We’re looking forward to our mutual success and the continued growth of the Liebherr brand in both our existing and new territories.”

American State Equipment is a family owned company operated by the third generation of the Kraut family. Established in Milwaukee in 1957, the dealership has served some of the largest cities in the Midwest for more than fifty years and has grown to be one of the most recognized equipment dealers in the region. American State Equipment operates five branches in the Midwest (Milwaukee, Wausau, Little Chute, Minneapolis/St Paul and Duluth) and owns Finkbiner Equipment Company, a subsidiary located in Chicago, IL.

“American State Equipment’s dedication has played an important role on our journey to reach and serve our customers in the Midwest region.” said, Peter Mayr, President of Liebherr Construction Equipment Co. “We look forward to continuing to grow our partnership in the years ahead,” he added.

About Liebherr

Established in 1949, the Liebherr Group is today a leading manufacturer of earthmoving equipment and a supplier of innovative user-oriented products and services in many other fields. The family-owned company employs more than 39,000 people in over 130 companies worldwide.

Liebherr’s product range covers earthmoving and material handling machinery, mining equipment, mobile cranes, construction cranes, mixing technology, domestic appliances, maritime cranes, aerospace and transportation systems, machine tools and automation systems as well as high-performance components for mechanical, hydraulic and electrical drive and control technology. Liebherr also operates hotels in Ireland, Austria and Germany.

The Group’s holding company is Liebherr-International AG in Bulle, Switzerland, which is entirely owned by members of the Liebherr family.

Wells Fargo Reports: Employment: Growth, but No Acceleration

Wells_Fargo_Securities_logoJobs were up 142,000 in August and up 207,000 over the past three months. Trend growth in the second half of this year remains the story. Job gains were broad based and the unemployment rate fell to 6.1 percent. Job Gains Suggest Sustained, Not Accelerating, Growth

Job growth remains broad based but is not picking up steam. Over the past three months, there have been steady gains in trade & transportation, business services, education & health services and leisure & hospitality (top graph). Construction jobs have risen every month this year and are up 20,000 on average over the past three months.

One good cyclical indicator, the manufacturing workweek, indicates that the manufacturing sector is improving, despite flat jobs in August. Over the past three months, job gains in manufacturing have averaged 16,000. The aggregate hours worked index is up 2.4 percent over the past three months. This supports the outlook for trend growth—not an accelerating growth scenario.

Household Picture Continues to Slowly Improve

Data from the household survey also showed modest improvement in the labor market. The unemployment rate fell to 6.1 percent amid modest job gains, although the labor force participation rate ticked down a tenth of a percentage point (middle graph). Since October of last year, the participation rate has been roughly stable, while the unemployment rate has fallen more than one percentage point. The decline in unemployment over the past year has been widespread, with a drop across all four levels of education surveyed.

Meanwhile, average hourly earnings for all private sector employers have edged up 2.1 percent over the past year. The gains have been particularly noticeable in the construction, information and professional services sectors—three areas that already exhibit above-average hourly earnings.

As the unemployment rate has continued to fall and CPI inflation has picked up in recent months, average hourly wages have received increased scrutiny from Fed officials. Our outlook is that by the end of this year, a continued decline in the unemployment rate and pickup in inflation will prompt the market to discount a Fed move in the funds rate by mid-2015.

Income Growth: Continued Gains

Over the past six months, the combination of the broad-based gains in jobs and the improved average hourly earnings indicate continued improvement in our income proxy (bottom graph). Therefore, consumer income growth remains a potential source of an upside surprise to economic growth in the second half of 2015.

We have already seen a pickup in light vehicle sales and housing starts so far this year. Our outlook is for better overall consumer spending in the second half of this year relative to the first half. Real disposable income in 2014, as well as in 2015, should be much stronger than 2013. Our outlook remains that continued job gains and modestly rising inflation will prompt the Fed to move mid-2015.

Employment _09052014_Page_1 2 3Source: U.S. Department of Labor and Wells Fargo Securities, LLC

Wells Fargo Reports: Jobs: The Structural View—Progress But Barriers Remain

Wells_Fargo_Securities_logo Today’s employment report emphasizes the persistence of the structural barriers to adjustment in the labor market. These barriers are not exceptions, but are rooted in classic economic behavior.

Disconnect Between the Unemployment Rate and Job Openings

Contrary to the claims of some policy makers in prior years, the shift in the Beveridge curve (top graph) was not temporary but has persisted nearly five years into the labor market’s recovery, and for good reasons. The shift indicates that the efficiency of the labor market has deteriorated. Our view is that labor is less mobile, and employers are looking for skills that are increasingly job specific. Thereby, there remains a degree of skill mismatch as well as education shortfall in the labor market today. Especially in manufacturing, more jobs require advanced education and computer literacy. Manufacturing jobs are far less blue-collar today and more business casual. Construction jobs are far more multi-family and industrial and less single-family housing starts.

Part-Time for Economic Reasons: Improving But a Headwind

Workers employed part-time for economic reasons remains high relative to the past, but the gap is diminishing (middle graph). This pattern reflects the partial adjustment process to imperfect information that we have emphasized in many of our essays. From the employers’ point of view, the subpar economic recovery for the past five years has meant caution in hiring—especially for full-time workers. Slack work and business conditions remain the primary economic reason. Imperfect information on where the jobs are located and where qualified employees are located reflect the imperfect information factor on the part of both employer and unemployed. There is a definitive search process that has significant costs that produce the slow pattern of adjustment we see in the graph.

Expansion’s Shorter Workweek Hampers Weekly Earnings

The slow adjustment process that has kept the share of workers employed part time elevated presents another challenge to workers via weekly earnings. While much attention has been paid to the unimpressive gains in average hourly earnings in the current expansion, another key component of workers’ take-home pay—hours worked—has yet to recover. Average hours worked for all private sector employees looks to have topped out at 34.5 hours, slightly below its prerecession peak (bottom graph). The lack of recovery in average hours worked reflects the economy’s shift toward services, which employ a higher share of part time workers, and the shift away from goods production—particularly manufacturing—where workers are actually clocking in more hours per week than at any time in the post- WWII era.

A shorter workweek represents an additional challenge to household income and, in turn, consumer spending. Structural barriers are not a black box, but instead reflect fundamental economic forces that are rational but distinct from prior behavior.

Source: U.S. Department of Labor and Wells Fargo S1 2 3Source: U.S. Department of Labor and Wells Fargo Securities, LLC

ARTBA Says New Federal Banking Rules Will Exacerbate Problems Caused by Highway Trust Fund Uncertainty

image003The American Road & Transportation Builders Association (ARTBA) says new federal banking rules announced August 3 “will further impede state transportation planning and investments across the nation.”

Rules just approved  by the U.S. Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation will preclude banks from using municipal bonds to comply with new liquidity standards.

“This decision will increase the financing cost of infrastructure projects for state and local governments by imposing a constraint on the market for municipal bonds,” ARTBA President & CEO Pete Ruane says.  “That could also adversely impact development of public-private partnerships for transportation projects.”

In a letter to the Congressional leadership, Ruane urged they use the new banking rules “as another motivator to do what the vast majority of your colleagues have acknowledged needs to be done—develop a long-term, sustainable revenue solution to permanently stabilize the Highway Trust Fund (HTF) and support future state investments in transportation improvements.”

Ruane noted the temporary revenue patch for HTF-funded programs approved by Congress in July means the fund now faces another revenue shortfall “at the beginning of the 2015 construction season.”

Action on a long-term HTF revenue solution, Ruane wrote, “does not need to wait until May 2015.”



AEM Reports: Midyear 2014 U.S. construction machinery exports decline 17.3 percent

AEM LogoU.S. construction machinery exports dropped 17.3 percent during the first half of 2014 compared with midyear 2013: $8.93 billion in exports were shipped to global markets compared to $10.8 billion for first-half 2013, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data.

The AEM off-road equipment manufacturing trade group produces global trends reports using U.S. Commerce Dept. information to assist members’ business planning.

Africa was the only world area in the plus column, with a 4.3 percent increase. Australia /Oceania recorded the steepest decline, at 38.6 percent, followed by South America with a 33.1-percent drop.

At midyear 2014, exports of construction machinery to Europe declined 25.4 percent compared to first-half 2013, for a total $1.02 billion, and exports to Canada dropped 4.6 percent to total $3.51 billion.

Exports to Asia declined 13.9 percent to $1.04 billion for the first half of 2014. Mid-year exports to Central America decreased 23.7 percent to $949.3 million, and exports to South America declined 33.1 percent to $1.28 billion.

Australia/Oceania’s construction equipment export purchases decreased 38.6 percent for a total $460.7 million, while Africa took delivery of $682.1 million worth of construction equipment, a gain of 4.3 percent.

The top countries buying the most U.S.-made construction machinery during the first half of 2014 were: (1) Canada – $3.51 billion, down 4.6 percent; (2) Mexico – $770.4 million, down 24.6 percent; (3) Australia – $424.7 million, down 40.6 percent; (4) South Africa – $400.5 million, down 26.7 percent; (5) Brazil – $358.3 million, down 30.1 percent; (6) Chile – $299.8 million, down 37 percent; (7) Peru – $279.4 million, down 15.1 percent; (8) Belgium – $210.4 million, down 36.3 percent; (9) Saudi Arabia – $206.2 million, down 43.1 percent; (10) China – $189.8 million, down 21.8 percent; (11) Russia – $172.1 million, down 36 percent.