Issue link: http://read.dmtmag.com/i/96778
Industry Beat ROMCO Acquires Conley Lott Nichols New paving and ag divisions created. Dallas-based ROMCO Equipment Company has acquired Conley Lott Nichols (CLN), purchasing all assets of CLN and retaining almost the entire operations staff. To integrate this acquisition, ROMCO announced the creation of new paving and aggregate divisions. The paving division is headed by Guy Brown, formerly general manager of CLN's Road Building Division. The MPS Aggregate Division is led by Donna Bossert (also formerly with CLN). ROMCO carries the full line of Volvo Construction Equipment, Hitachi Construction and Mining Equipment, Blaw-Knox Road Equipment, Eagle Iron Works Aggregate Equipment and GOMACO Concrete Pavers. Pictured from left to right: Charlie Clarkson, president of ROMCO Equipment Co.; Bob Mullins, founder and chairman of ROMCO Equipment Co.; Robert Nichols, CEO of Conley Lott Nichols; Robert Mullins, CEO of ROMCO Equipment Co. MacAllister Announces $8.9 Million Expansion Caterpillar distributor MacAllister Machinery Company, Indianapolis, Ind., announced plans to invest $8.9 million to equip and expand its existing 38,740 square-foot Washington facility by more than 50,000 additional square feet. The expansion, which is expected to be completed in fall of 2013, will house sales, parts and services for MacAllister's inventory of Caterpillar heavy and compact equipment as well as MacAllister Power Systems including Caterpillar generators. "MacAllister was founded in 1945 in Indiana and has deep roots in the Hoosier state, with 20 locations," said President Chris MacAllister. "We continue to grow, and our presence in Washington for 28 years is based on the excellent local workforce that serves our mining customers 24/7. Centralizing component rebuild work from around the state in Washington leverages that excellent workforce and creates economies of scale." MacAllister, which currently employs nearly 100 associates in Daviess County, plans to begin hiring additional management, service and customer service personnel to coincide with the completion of the expansion, and plans to add up to 61 new jobs by 2016. The Indiana Economic Development Corporation offered MacAllister Machinery Company, Inc. up to $700,000 in conditional tax credits and up to $100,000 in training grants based on the company's job creation plans. Daviess County will consider additional property tax abatement at the request of the Daviess County Economic Development Corporation. Study Highlights Enormous Economic Impact of Unconventional Oil and Gas A new study by IHS Global Insight, a leading research company, finds that unconventional oil and natural gas activity (horizontal drilling and hydraulic fracturing) in the United States will spur more than $5.1 trillion in capital expenditures between 2012 and 2035. Over the next 23 years, these activities are expected to contribute enormously toward the U.S. economy – and the equipment industry. The extraction methods analyzed are capital intensive. The survey finds that equipment accounts for 24 percent of well site infrastructure capital expenditures and nearly 50 percent of revenues generated from the oil production are spent on construction, fabricated materials, and heavy equipment. The report notes that, as the amount of oil produced through conventional and deep-water methods of extracting oil decreases over the next 23 years, unconventionally extracted oil production will continue to grow, becoming the most productive method by 2015. Year 2012 Capital expenditures (billions) $87.3 Employment Impact (direct, indirect, and induced) (millions of jobs) 1.7 Total economic contribution (billions) $237.7 Tax revenues generated (state & federal) (billions) $61.8 2020 $172.5 3 $416.5 $111.2 2035 $353 3.5 $475 $124.4 14 | www.cedmag.com | Construction Equipment Distribution | December 2012