Where is today's gold mine for construction equipment?

I can tell you the obvious: not North America.

And I can tell you there are three areas you must develop to move construction equipment today.
They are Russia, Poland, and the Kingdom of Saudi Arabia. I've visited projects in all three countries in the past six months.
Here's why.

1. Russia. Major motorways underway between Moscow and Saint Petersburg.

2. Poland. Major motorways underway financed by the European Bank for Reconstruction and Development

3. Kingdom of Saudi Arabia.  Just in the past 5 months contracts have been let to move more than 300 million cubic meters of sand; that is the equivalent to three times the amount of material moved to build the Panama Canal. Plus there is a Women's University City underway a few miles from Riyadh. This city is complete with the university, dorms, shopping center, parks, recreation areas, and a monorail system winding through the city to transport the students....only women.  In a few months a Sports City will be announced.  These "city" projects are the hub to the King's develoment of the country.  The first city to be built was completed several years ago called Al-Jubail. The program manager was Bechtel.  And there are more cities in design.

Previous kings built airports. The current king is commited to roads and railroads and they are being built in record numbers of kilometers.

Here are some facts and elements you must consider about some of the newly announced Saudi projects [these are based upon my personal observations]:

1. Some projects are as much as 1,000 kilometers from the nearest supply point [of any kind of supply]

2. You will be working in blowing beach sand.

3. Heat to 130 degrees F.

4. 1,000 kilometer long logistic chain

5. A single two lane road

6. NO airport

7. Build your own man camp

8. Find workers from the region and supervisors to run them

9. Some used equipment, but mostly new

10.And much, much more. We can discuss when you call me.

What are contractors buying:

1. Fleets of on road dumpers

2. Fleets of ADT dumpers

3. Fleets of pull scrapers and tractors

4. Fleets of water wagons

5. Fleets of fuel tankers and lub trucks

6. Plus all support equipment to operate and maintain

And Stoddard Consulting can connect you with the top 10 Class A contractors in Saudi Arabia.

Call me at 530.383.9079 or email me at stoddardconsult@yahoo.com

Why do I use Yahoo Email? I can access it anywhere I can connect to the web. Can't do that with others.

What's New

Solar isn't new. It's been around for centuries. In fact, my grandfather created a solar hotwater heater from an old car windshield installed in the roof of his California home to focus the sun's rays on a coil of copper pipes wrapped in black tape. That invention provided extra hot water for my grandmother and their seven active children.

Last Wednesday the USTDA hosted a conference in San Francisco of renewable and clean energy governmental and private parties interested in participating in the development of new plants in Morroco, Egypt, and Lebanon. 

Amazing working going forward on in these middle east countries where the hydrocarbon is in short supply. Imagine: 97% of Morroco's energy relies on imported hydrocarbons.

Both Morroco and Egypt have governmental agencies with land, permitting, garunteed feed, and rates based and paid in US cents per kilowatt hour. 

American companies are not in the lead. The Germans, French, Spanish, and even Italiens are all active in the area, yet there is plenty of room for all.

Each of these countries has in excess of 230 days of sunshine, and millions of acres of desert just waiting for solar panels and wires to create clean energy and improve the lives of millions of people while providing power developers handsome rewards for their efforts.

Do you wish to participate?

Stoddard Consulting offers unusal expertise and levels of contacts in each of these three countries as well as the Kingdom of Saudi Arabia.

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.

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.

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.