The Market…

What a year we have all gone through in 2009. Most of us follow the “market” or the “economy” and many of us read industry journals…more and more online. Where have we been, what happened and where are we going? We may not have all of these answers for years to come.

I think what’s important is that we get a more focused view of the markets we serve. I just read the other day where many technology and ecommerce stocks had a great 2009. Certainly, the performance of those blue chips affects the perception of what’s happening in the broader market, but is it really a good indicator for the markets we serve? Likely not.

Our view is that the Construction and Agricultural Equipment markets have bottomed with Construction being off nearly 50% since 2006 and some segments off 80 to 90%. The important variable for our business is equipment utilization rates. We estimate that telehandlers for instance peaked at 90% in 2006 and 2007 and fell to 10% in 2009. Optimistically, we are looking for telehandler utilization levels to double in 2010. We think that forestry fared far better in 2009, but only because that segment dropped in prior years before the overall market. Agriculture held up fairly well in North America…people have to eat!

We would like to hear from you…what are you seeing in your markets?