View Full May PDF Issue - Utility Contractor Online

Mapping the Market
Finding the Light in Economic Gloom
By Mitch Blake
The North American wheel loader market consisting of
new units sold in Canada and the United States was
approximately 14,600 units in 2008. By comparison,
roughly 20,000 units were sold in 2006. The primary
markets that 75 percent of all wheel loaders are sold are road
and bridge construction, rental, residential construction, commercial
construction and agriculture.
All of the primary markets have been affected by the recent
economic downturn, except for the agriculture market,
which has seen a 14 percent increase in wheel loader sales
since 2006. While many wheel loader markets are experiencing
a decline in sales, not all markets are being dramatically
affected by the current economic conditions. In addition to
the agriculture market, the scrap/recycling market has been
steadily growing since 2006.
Within most of the markets, there exists a variety of purchasers.
To generalize these purchasers, they are typically
either a commercial contractor or a government end-user
(states, municipalities, airports, etc.). For the most part, government
purchasing has remained steady in the market segments.
Considering most market segments are in a decline,
the commercial purchasers have contributed the most to the
wheel loader industry sales decline. This is not surprising in
that construction as a whole has experienced a major downturn
and appropriation of funds for government purchases
primarily come from taxes received from prior years.
Even within a particular market, the purchasing actions of
the specific segments to that market can vary dramatically. One
example is the rental market. The rental market is made up of
two segments: independent rental companies and OEM dealer
rental fleets. It is interesting to observe that since 2006, the
independent rental companies have reduced their wheel loader
purchases in North America by 73 percent while OEM dealers
have reduced their rental fleet purchases by only 30 percent.
The wheel loader is a versatile and widely used piece of heavy
equipment within North America. It is a mature product with
contractors and government users who are comfortable with its
uses in their specific applications. Generally, there haven’t been
many new applications for wheel loaders in recent years, but
the wheel loader can be tasked in varying applications by region.
For example, where many regions may use an excavator to
dig a basement, some areas of North America regularly see this
task being undertaken by a wheel loader. While recent economic
downturns have noticeably affected the construction industry,
one can be rest assured that the wheel loader will be seen in the
building sites, streets, highways and landscape of North America
well into the future.
Mitch Blake is the Brand Marketing Manager for Case Construction
Equipment, Racine, Wisc.
Riddle 1:
Large as a mammoth, small for close quarters,
predestined cycles are the usual orders.
Digging makes the day move slow,
so you’ll burden me with loads on the go.
I eat with my teeth or sometimes a fork,
but my meal is finished when you’re done with work.
May 2009 | Utility Contractor 19