Friday, February 26, 2010
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.
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.
Saudis are building roads and railroads. Strong infrastrure growth.
Heading there on Sunday for two weeks.
Monday, April 13, 2009
Companies! Command employees R & I
What is R& I?
R&I is a favorite catch phrase invented by the Business Guru Dr. Steven Covey. It stands for "resourcefulness and initiative." He commands his staff to focus on their R&I when the situation begins to unravel, or when a problem appears larger than life.
What is FUD?
One of my favorite acronyms for business leaders who are floundering is: FUD. It stands for "fear, uncertainty, and doubt." FUD immobilizes leaders. How can it be diagnosed? If a leader calls for a "prevent defense" it is a sure sign, in the best case,the leader is trying to buy time while a strategy is being devised. In the worst case, the leader is in a panic, trying to prevent chaos while wringing the hands.
Thursday, April 9, 2009
It really is ugly out there
Being in the international area provides one with additional perspective on the current economic crunch. Major construction equipment producers have seen increases in inventory, reduced cash positions, lower orders.
This situation will last at least untill the Fall of 09.
Why?
All these "shovel-ready projects" , many of which must be rebid, are not so ready. Prior to the owner rebidding the project, many of the owners will redesign and re-spec the project. Old bids will be invalid. New bidders will need to be found in many cases. That process will take 6-9 months depending on the project.
And if they projects are ready then to start in the Fall of 09, then the Fall rains and snows will begin to slow up projects beginning in the north and northeast.
Not until Spring of 2010 could we see a response to the stimulus.
So what are the targets of construction equipment makers? The Middle East; China; and Indonesia.
What products will succeed? Not small rental items. Large equipment which are very efficient will be in strong demand. Large equipment with technological innovations will lead out.
The lesson? Go big or go home.
This situation will last at least untill the Fall of 09.
Why?
All these "shovel-ready projects" , many of which must be rebid, are not so ready. Prior to the owner rebidding the project, many of the owners will redesign and re-spec the project. Old bids will be invalid. New bidders will need to be found in many cases. That process will take 6-9 months depending on the project.
And if they projects are ready then to start in the Fall of 09, then the Fall rains and snows will begin to slow up projects beginning in the north and northeast.
Not until Spring of 2010 could we see a response to the stimulus.
So what are the targets of construction equipment makers? The Middle East; China; and Indonesia.
What products will succeed? Not small rental items. Large equipment which are very efficient will be in strong demand. Large equipment with technological innovations will lead out.
The lesson? Go big or go home.
Wednesday, February 11, 2009
Thursday, January 1, 2009
Helping Elephants Dance Part 2
Helping large organizations advance change requires a clear process strategy. In Part 1 I discussed the importance of understanding expectations for the change outcome.
One must realize expectations come in two forms: explicit and hidden. At the beginning of the change process many expectations are trumpeted loudly and broadly up and down the cubicle filled office spaces.
Trumpeted expectations must be taken into account. In some cases they must be edited to become: time oriented, desireable, and achieveable.
Equally important are the deeply held yet unmentioned expections of key players. If they aren't mentioned must they be taken into account? Yes, because these unmentioned expectations can prove to be the undoing by key players of any organization change project. Two examples:
1. Carl was a construction manager overseeing from Houston a major Bechtel/Proctor and Gamble project in Canada. Earl the Bechtel site manager reported directly to Carl, received his performance appraisal and bonus recommendation from Carl. During initial discussions of expectations I found time to discuss with Carl his expectations for the project and uncovered a gem: he expected this project, in order to be a success, to lead to additional work. At first this seemed reasonable. Upon further discussion with the project team this expectation held by Carl had to be rejected. He so agreed. Rejection was necessary because the team could not do anything about future Bechtel business opportunities.
Only expectations which are under the control of the team can be allowed to be recognized. Unearthing unreasonable expectations held by important senior players is critical to success.
2. Phillip was the vice president from Proctor and Gamble for the same project as in #1 above. During the change project phase were expectations were being uncovered he dropped a technical bombshell: he wanted no cracks in the concrete slab floor. His reason was to maintain a clean manufacturing environment. This expectation had never before been disclosed. Had it been so the engineering spec for the concrete would have been written differently. Since he was a major player in calling the project a success his heretofore undisclosed expectation required rewriting the concrete spec; which was done.
In conclusion it is vital to have all expectations disclosed. Some can be accommodated, and some must be declared out of bounds and be so agreed by the holder of the expectation.
Come to think of it, this is also important in making a marriage work! Zounds!!!!
Part 3 to follow.
For more information contact the author directly at stoddardconsult@yahoo.com
Happy New Year!!!!
One must realize expectations come in two forms: explicit and hidden. At the beginning of the change process many expectations are trumpeted loudly and broadly up and down the cubicle filled office spaces.
Trumpeted expectations must be taken into account. In some cases they must be edited to become: time oriented, desireable, and achieveable.
Equally important are the deeply held yet unmentioned expections of key players. If they aren't mentioned must they be taken into account? Yes, because these unmentioned expectations can prove to be the undoing by key players of any organization change project. Two examples:
1. Carl was a construction manager overseeing from Houston a major Bechtel/Proctor and Gamble project in Canada. Earl the Bechtel site manager reported directly to Carl, received his performance appraisal and bonus recommendation from Carl. During initial discussions of expectations I found time to discuss with Carl his expectations for the project and uncovered a gem: he expected this project, in order to be a success, to lead to additional work. At first this seemed reasonable. Upon further discussion with the project team this expectation held by Carl had to be rejected. He so agreed. Rejection was necessary because the team could not do anything about future Bechtel business opportunities.
Only expectations which are under the control of the team can be allowed to be recognized. Unearthing unreasonable expectations held by important senior players is critical to success.
2. Phillip was the vice president from Proctor and Gamble for the same project as in #1 above. During the change project phase were expectations were being uncovered he dropped a technical bombshell: he wanted no cracks in the concrete slab floor. His reason was to maintain a clean manufacturing environment. This expectation had never before been disclosed. Had it been so the engineering spec for the concrete would have been written differently. Since he was a major player in calling the project a success his heretofore undisclosed expectation required rewriting the concrete spec; which was done.
In conclusion it is vital to have all expectations disclosed. Some can be accommodated, and some must be declared out of bounds and be so agreed by the holder of the expectation.
Come to think of it, this is also important in making a marriage work! Zounds!!!!
Part 3 to follow.
For more information contact the author directly at stoddardconsult@yahoo.com
Happy New Year!!!!
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