Issue link: https://read.dmtmag.com/i/93576
LEGAL LINE Continued from page 11 For example, while the engine parts that sell today are profitable, the market for them is shrinking…in at least two ways: First, in the engine parts markets, stricter emission controls and restrictions on machine and engine importa- tion make it difficult not only to reverse engineer parts today, but also even more difficult to ensure that the completed engine or machine meets per- formance testing or other cer- tification standards. This will only get harder, as fuel delivery and combustion processes are already under the control of computers that are, in many cases, not only "unfixable" but also unable to be "opened" to complete a rebuild job. This has driven one producer to take the plunge and divert hard-earned profits from the shareholders into a seven-figure engine test system. While helping to develop the actual products, the system has the primary task of satisfying governmental regulations to permit the sale of the com- pany's products in the markets that impose strict emissions standards. Next, in undercarriage and GET, the machines that use "old technology" are not living as long as before, and in some instances, will be legislated out 84 of service by emissions regula- tions. While markets will still exist somewhere for parts that fit machines from the 1980s and earlier, those markets will be in places farther away and will be shrinking. How will this happen? Simply put, evolution continues in the equipment world. Today's highly produc- tive emissions-compliant dozer or excavator will end up in the developing world in a few years and will displace those 1980s and earlier machines, so those partially dependent on selling parts for early machines will have no markets remaining. All of the above is acceler- ated by government mandates for clean air. Even in parts of the world where human health and pollution control take a back seat to national goals for growth and trade, there is a growing outcry for standards of living that go beyond a cheap car, subsidized energy, and a flat screen TV. What this will mean is hard to predict, but the trend is unmistakable. Within a few years, the emissions standards in the developed world will unify, and machines and parts will flow into those markets without governmen- tal interference. A short time thereaſter, the developing world will start to take baby steps to cut both actual emis- sions, as well as greenhouse gas emissions. This will create a global shiſt in priorities and oppor- IDA UNIVERSAL November-December 2012 tunities. No longer will it be either feasible or profitable to mine coal with several dozen small loaders and excavators, loading hundreds of 10-wheel trucks, all belching a cloud of diesel smoke. The model will shiſt to large, clean machines with many less drivers and operators. Labor cost will no longer be the driving force; emissions and fuel usage will be the important factors, and those who are ready to embrace both the demands of the modern countries and prepare for the shiſt in the less modern ones will be at the 2020 convention. I hope to see you ALL there. Robert McIntyre Wegman, Hessler and Vanderburg 6055 Rockside Woods Blvd. Suite 200 Independence, Ohio 44131 Phone 01.216.642.3342 (office) 01.216.403.0516 (Cell) e.mail RWMcintyre@wegmanlaw.com