CED

November 2013

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Litigation to virtually every type of diesel engine typically found in the equipment fleets of distributors, rental operators, contractors and other owners throughout the U.S. and Europe. European and American standards have largely been conformed, but the rest of the world remains well behind in terms of pollution regulations and the technologies necessary to achieve compliance with mandated thresholds. However, China, India, Japan and South Korea, have adopted similar standards in some (more limited) cases. Obviously, this creates some competitive issues for owners and operators in developed countries. Market participants in the more heavily regulated U.S. and EU continue to argue (with considerable merit) that, among other things, the increased cost of the newer, cleaner machines places them at a disadvantage when competing with businesses in lightly regulated or unregulated countries. Clean diesel technologies are, however, improving quickly, and some of the benefits have reportedly begun to manifest themselves (e.g., increased productivity, decreased fuel consumption, reduced employee health issues and reduced absenteeism; though the evidence is thus far mostly anecdotal, and remains the subject of considerable debate). In addition, some of the heaviest polluters, including China (which has now surpassed the U.S. in total CO2 emissions and emits almost 30 percent of the world's greenhouse gases) are starting to catch up. According to The Economist (Aug. 10, 2013), China has issued 20 significant antipollution laws in the past several years, has created a Ministry for Environmental Protection, and is moving toward broader adoption of Tier-4/Stage IV-type emission standards. But progress is still slow, and enforcement remains spotty, meaning OEMs and their customers in developed countries will continue to suffer at least some degree of competitive disadvantage in the near term. (continued on page 55) Help Your Customers Understand Tier 4/Stage IV technologies fall into two broad categories: (1.) advanced engine design (using new combustion technologies, intake filtration systems, variable geometry turbochargers, crankcase filters, and exhaust gas recirculation systems, for example), and (2.) exhaust gas after-treatment systems (for example, particulate matter filters and selective catalytic reduction systems). OEMs are generally free to use any combination of technologies they deem appropriate, as long as they meet the applicable emissions standards. Among the chief concerns for most distributors and their customers is, of course, the cost of these new technologies. Manufacturers are A RETURN ON INVESTMENT SHOULDN'T INCLUDE your kid moving back in with you after college. Are you looking for a sweet ride that just screams OCD? Get a load of this. From sidewalks to stadiums, the Sweepmaster 400 is one mean cleaning machine that never backs downfrom a good mess. Visit www.laymor.com or call 800.323.0135. November 2013 | Construction Equipment Distribution | www.cedmag.com | 39

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