John Deere scrapers sitting idle

Last week I visited a John Deere dealership and a construction equipment rental company. The Yuma dealership had 9 1810E scrapers sitting idle, the Yuma rental company had 4 1810E scrapers sitting idle. The Cat dealer had aboiut 10 acres of idle equipment sitting in their yard in Phoenix. 13 scrapers sitting idle in the middle of construction season tells the real story behind Obama's stimulus program.

Europe is dead

European construction activity is as cold as the weather. No money=no projects. Major project to build new airport in Spain near Valencia was cancelled a year ago, and there is no hope of reviving it. Companies such as Caterpillar, Bell Equipment, K-Tec Earthmovers have scaled back their plans for business development.

Czech Republic, Slovakia, Hungary are stuck in neutral.

European Bank for Reconstruction and Development is going slow on everything, just like your local banker.

Manufactures are being forced to consider extended terms, rental, export development financing in order to obtain orders.

Outlook is grim, and that is being positive.

Big Projects in Saudi Arabia

American construction equipment market is stuck in neutral untill real projects start up again. Meantime working is going strong in Saudi Arabia. Dubai is slow but Abu Dhabi is strong. Nothing happening in Yemen...no money.

Saudis are building roads and railroads. Strong infrastrure growth.

Heading there on Sunday for two weeks.