Equipment World Digital Magazine
Issue link: https://read.dmtmag.com/i/473140
EquipmentWorld.com | March 2015 35 contractor of the year | by Marcia Gruver Doyle | MGruver@randallreilly.com EquipmentWorld.com | March 2015 35 by Marcia Gruver Doyle | MGruver@randallreilly.com The financed equipment buying habits of roadbuilding contractors F or this study, we looked at financed equipment tracked by Equipment Data Associates from 2010 to 2014. We further sorted this data by the most active financed buying segment of roadbuilding contractors – those who have financed more than 40 machines in the past five years. Although financed machines do not rep- resent the totality of the market, since contractors can also pur- chase equipment with cash or a letter of credit, financed machines can represent 40 to 75 percent of the purchased market depending on the type of machine. The 124 contractors we includ- ed in this segment were defined by industry codes SIC 1611 High- way and Street Construction and/ or NAICS 237310 Highway, Street and Bridge Construction, and/ or were determined by editorial judgment to be primarily engaged in roadbuilding activities. We di- vided them into three size groups, determined by annual revenues reported by Dun & Bradstreet and other industry sources: s 3MALL UNDER MILLION 44 contractors s -EDIUM TO MILLION 44 contractors s ,ARGE MORE THAN MILLION 38 contractors Together, this segment fi- nanced 5,898 new machines and 4,995 used machines between 2010 and 2014. FLEET FLEET PROFILE What have contractors who are engaged primarily in roadbuilding been add- ing to their equipment fleets in the past five years? To get a better picture of this, we zeroed in on a segment of contractors defined both by their market and their buying activity, and took a deeper dive into what they have financed. One of the top machines that con- tractors in our roadbuilding segment bought: the Cat CB 54.