Issue link: https://read.dmtmag.com/i/490948
Sharing Industry Reports I DA U N I V E R S A L M a rc h -A p r i l 2 0 1 5 7 PRESIDENT'S POST Pete Smith IDA President 2013-15 Valley Blades 514 Ajax 619 FMC 113 212 312 512 513 612 SLP 111 210 211 310 510 511 610 Minnpar 617 DPA 108 Charter Soft.109 208 209 308 Ellegi 408 508 509 608 Kumru 107 206 207 Hoe Leong 306 AltoUSA 406 MIBA 407 507 606 K & M 609 H-E Parts 105 204 Machinery Trader 205 CNC 304 ERMA 305 H & R 404 Rotomas- ter 405 Conic Auto. 505 604 Sejin 103 Parts C. 202 Geomar 203 Esco 302 Tribco 303 FP Smith 402 Varvit 403 Mahle 502 503 DSG 602 WTC 603 BLS 601 Northwest Casting 311 & 313 Loader Parts 307 & 309 ValuePart 501 & 600 IPD 515 & 614 Show Entrance ITR 301 & 400 Interstate McBee 315 & 414 Black Cat Blades 401 & 500 Costex 415 & 413 Blumaq 410 & 412 Memo Corp. 409 & 411 KMP USA 506 & 504 Coffee & Bar Area KTSU 100 & 102 ReliableAftermarket Pts 115 & 214 Hercules 101 & 200 USCO 201 & 300 N. American Comp. 215 & 314 IDA 2015 Trade Show Floor Plan Yours truly. Pete Smith Ninety-two percent of contrac- tors surveyed said they purchased new and/or used equipment in 2014. Ninety-two percent said they plan to purchase in 2015. e future is somewhat encouraging domesti- cally; the international construction marketplace is somewhat more precarious. Price Waterhouse Coopers estimates global infrastructure spending to increase to $9 trillion by 2025, up from $4 trillion in 2012, with 2015 growth projected to be 6.5 percent internationally. However, the eroding cost of crude oil will slow down expected infrastructure spending in the international market manufacturing sector, which includes drilling and extraction, petroleum refi ning and transportation of crude and refi ned fuels. is was previously anticipated to grow by more than eight percent in 2015. e European construction equipment manufac- turer's association, CECE, has released its strongly positive Economic Report for 2014. According to this report, equipment sales in the European market grew by nine percent in 2014. CECE found that exports (machines manufactured in Europe but sold outside) showed less growth. For CECE, "Europe" means the geographic entity of Europe, including Russia and Turkey, not just the political entity of the European Union. e industry is changing so fast no one can keep up, particularly when variables in one section of the globe have a domino eff ect on the rest of the world. IDA continues to move forward with plans for the 2015 Miami Convention. Remember, this is your association. Would you like to serve as a Director on the IDA Board? is is a great time to pass on your ideas for a better association, a better convention or any sugges- tions. Your thoughts will be greatly appreciated. W ells Fargo released the fi ndings of its 2015 Construction Industry Forecast today. e survey's primary bench- mark for measuring construction industry contractor and equipment distributor senti- ment in North America is the Optimism Quotient (OQ). e OQ reached a historic high of 130, up six points from 124 in 2014 and up considerably from the survey low of 42 in 2009. is reading is a strong indication that construction contractors and equip- ment distributors are optimistic that local nonresi- dential construction activity will improve in 2015, compared with 2014. "Contractors and equipment distributors indicated that the trajectory of the broader construc- tion industry is still going in the right direction: up," said John Crum, senior vice president and national sales manager of the Construction Group at Wells Fargo Equipment Finance. is year's increase in the OQ marks the third time in four years that it has reached a new high, which signals confi dence that growth has been accel- erating over that time. Coinciding with the higher optimism reading is anticipated growth in rentals and increase in new and used equipment acquisition. e multiyear trend in equipment rental growth is set to continue in 2015. Contractors who said they rented heavy construction equipment in 2014 said they will increase rental activity in 2015. irty- seven percent said they would rent more than last year, compared with 17 percent who said they would rent less. Contractors cited the need for project- specifi c equipment most frequently (70 percent) as the reason why they chose to rent rather than buy.