Contractors World

Contractors World
The free online digital publication for
construction, demolition, mining and quarrying industries.

Contractors World 2010 Volume 1 Issue 10
Forward: Print Page Register (free) Bookmark Page

cw cw cw cw cw Buyers Guide cw cw cw

cwmags blog

Read breaking news

previous page   PAGE 17    next page

back copies

Sponsor a tree
by planting
your logo
in our
virtual forest
to aid the
Lighthouse Club
Benevolent Fund

  20 minutes with:

Jim McCullough, CEO and President of CNH Construction

Roger Lindley interviews

Jim McCullough,
CEO and President of CNH Construction

David Beattenbough, LiuGong - Vice President Research & Development




“Mr McCullough, there’s no denying that these are tough times for everyone involved with the construction and related industries – some say the toughest ever. In order to survive, companies have had to look deep into their structures, markets and the very ethos of their heritage and make some very hard decisions. It could be argued that being part of a large multifaceted organization offers greater protection, but is also harder to implement change as every division, understandably, fights for its corner. CNH has both construction and agricultural divisions and is also part of the Fiat Group.
    How is CNH coping with the current situation? What steps have been taken to reduce costs while enabling progress? And how different will CNH be as the global markets emerge from the recession?

“The recession in the construction equipment industry has been difficult for all manufacturers. Fortunately, CNH is a global manufacturer. As such we have had solid contributions continuing from Latin America and Asia Pacific. The North American market and European markets are just now beginning to improve. During this period, CNH has protected important strategic areas such as research and development investments. We have implemented cost reductions in many areas to control costs and reduce the break-even point.
    Our biggest concern throughout the recession has been the health of the distribution system. While we have had some challenges, overall we have been fortunate, with few losses. At the same time, all of us have felt the pain of markets off 50, 60 and even 70 percent, which seriously impacted revenues and drove losses.
    The good news from this period is that the construction equipment industry has an opportunity to rethink supply models. Inventories are now in relatively good shape, at lower levels and better turns than before the recession. Future distribution with discipline could save a lot of money for manufacturers and dealers, if done correctly. This ultimately benefits the contractors who buy the equipment.
    The agricultural industry held strong during this period and CNH benefited as a result.”

RL: “ I’ve often said that the construction industry is the first to feel the effects of a recession but also the driving force that brings economies out of recession. Governments around the world initially put the brakes on virtually everything but then came up with various initiatives to stimulate growth. In the USA, President Obama has implemented the long awaited highways bill but failed to renew expiring programs such as the federal surface transportation programs.
     The AEM, of which you are the Chair, said "Our members don't just make equipment, they make prosperity." Recently you made representations to the House Transportation and Infrastructure Committee. Specifically in the USA, what does the Government have to do and, looking further afield, what do governments around the world need to do? Are there any examples for others to follow?”

“Global investment in infrastructure is critical to the delivery of goods and services, and while some investment can come from the private sector, infrastructure is a shared resource with the potential to benefit entire populations. Countries that invest in infrastructure development will be more efficient and more competitive than those that don’t. They will be more prosperous for that investment than they would be otherwise.
     The impact of infrastructure investment touches a nation’s entire economy. Research cited by Association of Equipment Manufacturers (AEM) shows that every $1 billion invested in U.S. highways, bridges, water and transit infrastructure yields about 18,000 jobs. The investment in infrastructure yields savings, as well. Traffic congestion costs the United States economy $87 billion in wasted time and fuel.
     Earlier this year, the Chinese government approved a stimulus package in the range of US$550 million, and they have experienced a more rapid recovery than much of the world.
     Our future competitiveness as a nation is at risk without infrastructure investments and vision.”

[cont . . ]




previous page   PAGE 17   next page

red divide
CW Contractors World - the digital publication for construction industry

Contractors World Magazines are published by VVV Limited
©VVV Ltd 2010 All Rights Reserved

Publisher: Roger Lindley
Content compiled and edited by:
Roger Lindley MCIM
Nick Johnson

Page updated: 25-Nov-2010

CP&E Contractors Plant & Equipment
Read our other publication for up-to-date information on new plant and equipment.
Online Buyers Guide of Construction, Quarrying & Mining Suppliers

Contractors World - Eco Friendly publishingBy reading this page on line you are helping to save trees.
Trees saved up to November 15 2010: >160
See our
virtual forest

Support the Lighthoue Club Benevolent Fund by sponsoring virtual trees Support the Lighthouse Club Benevolent Fund by sponsoring virtual trees

CML House
7 Bell Mead
Herts CM21 9ES
Tel: +44 1279 600598

To advertise in Contractors World see details at

Contractors World, CP&E - Contractors Plant & Equipment and the CW Supplements are independent publications published through CWMags.

The mention of companies and/or products within the editorial pages or in advertisements does not infer any endorsement by the publisher or editors. All editorial is freely given, without conditions and at the sole discretion of the editor. Opinions expressed by contributors are not necessarily those of the publishers. Copying, reproduction, decoding or disassembly of content or computer code by any means of any part of the publication is prohibited unless prior approval is provided by VVV Ltd in writing and confirmation received of agreement with any terms and conditions applicable. PDF version may be downloaded for personal use but no content may be used for promotional purposes or copied to web sites.