CED

January 2014

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2014 Business Outlook Survey Predicted 2014 Gross Revenues by Department vs. 2013 6.7% 1%-10% higher More than 10% higher The same 1%-10% lower New Equipment Sales 60.53% 9.21% 17.11% 13.16% Used Equipment Sales 55.26% 9.21% 26.32% 9.21% Rental 47.37% 22.37% 26.32% 3.95% Parts Sales 63.16% 11.84% 25% 0% Service Sales 65.79% 7.89% 26.32% 0% 2014 New Rental Fleet Inventory Investment Plans vs. 2013 Biggest 2014 Challenges 1%-10% increase Tier-4 Final supporting customers, machine issues More than a 10% increase No change We don't distinguish between for-sale vs. rental fleet Your tax exposure due to expiration of Bonus Depreciation, Sec. 179 changes, possible LIFO repeal, etc. 1%-10% less Reduction of more than 11% Obamacare implementation (employer mandate) RTR vs. RPO No rental at all End of Map-21 highway funding, Congress' ability to pass new legislation Most rental is RPO; little RTR Equal RPO and RTR Labor or HR issues/regulation More RTR vs. RPO Majority RTR January 2014 | Construction Equipment Distribution | www.cedmag.com | 45

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