Equipment Suppliers Outlook Mixed
Most Expecting Strong Year with Fewer Shortages in Supply

Intermountain Contractor turned to the professionals in the construction equipment sales and rental market for an annual check-up on recent history and expectations for the coming year. Equipment supplier responded to a number of questions and their edited responses are presented here.

Intermountain Contractor wishes to thank all those who took time to respond.

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Cate Equipment Company in Salt Lake City
Responses from Rental Manager Myke Thurman

Question: What are your major product lines?

Answer: Ingersoll-Rand, Blaw-Knox, Rosco, LeeBoy, Gorman Rupp, Gomaco, CEC, Ground Heaters, Topcon, Crafco, Broce

Q: Have you added any new products or services for this year? If so, why?

A: Yes, we added CEC (Construction Equipment Company). CEC offers a full line of crushers and s & screens. We added the product to enter a new market and to diversify our offerings.

Q: During the past year, did you have any difficulty securing inventory?

A: Yes, lead-times on new equipment were terrible. Most manufacturers we caught by surprise with the booming demand and had to play catch-up all year. Used equipment was also hard to come by.

Q: Do you anticipate shortages in the coming year for any of your products?

A: Yes, but not as bad as 2004.

Q: What about price increases this year? (Will they be similar to or more dramatic than past years?

A: We expect them to be similar to last year except with the addition of steel and fuel surcharges, which it seems most manufactures will have a hard time relinquishing - even after the steel and fuel shortages subside.

Q: Is there a new product you are particularly excited about or feel has made dramatic improvements over previous models?

A: Yes. Ingersoll-Rand has come out with a new line of large asphalt rollers and pavers. These machines use cutting edge technologies that dramatically increase end-user productivity and they are extremely versatile at the same time.

Q: What trends in the industry are you seeing? (More buying? More leasing or renting?

A: Mainly an increase in renting.

Q: What are your expectations for the coming year?

A: Overall business activities should be equal to 2004 without much of an. We anticipate another stellar year.

Cummins Rocky Mountain Responses from Tyler Sonnenfeld,
marketing manager for Cummins Rocky Mountain

Question: What are your major product lines?

Answer: Cummins Rocky Mountain is the exclusive distributor for the rocky mountain region for Cummins Diesel Engines, Cummins Genuine Parts, Onan Power Generation, and Fleetguard Nelson Filtration and Emission Solutions.

Q: Have you added any new products or services for this year? If so, why?

A: We currently offer rentals of power generation equipment in most markets. For 2005 Cummins has purchased additional units to build a wide variety equipment for prime and stand-by power.
We are is expanding service centers to in Denver, Colo.; Billings, Mont. and El Paso, Tex. to offer engine, and chassis repair, service and maintenance for all Cummins powered RV's through the Coach Care brand. With more and more travelers utilizing Cummins Power and Onan Generators this is a natural market for Cummins Rocky Mountain to develop. Look for additional Coach Care locations in Phoenix, and Las Vegas for 2006.

Q: During the past year, did you have any difficulty securing inventory?

A: Cummins is constantly upgrading and improving its product line and with this come delays. For 2005, Cummins has developed additional resources to cut down wait time of new Engines and Power Generation.

Q: Do you anticipate shortages in the coming year for any of your products?

A: We do not anticipate any shortages for the coming year.

Q: What about price increases this year? (Will they be similar to or more dramatic than past years?

A: No large price increases for 2005. Most increases will be due to inflation.

Q: Is there a new product you are particularly excited about or feel has made dramatic improvements over previous models?

A: Cummins is gearing up for the 2007 and 2010 emission standards. All new engines are EPA certified. Cummins Rocky Mountain works very closely with Cummins to develop new products or upgrade existing products to fit the users needs.

Q: What trends in the industry are you seeing?

A: The industry is strong, construction, trucking and mining are doing very well.

Q: What are your expectations for the coming year?

A: Cummins Rocky Mountain is looking forward to building an even stronger team to satisfy the needs of the customer.

Anything you'd like to add?

After reaching and agreement with Cummins, Inc. and Cummins Intermountain, Inc., Cummins Rocky Mountain purchased the assets of Cummins Intermountain, Inc. on Oct. 1, 2004.

The combination of the two companies forms the second largest Cummins distributor in North America. The company will operate under the name of Cummins Rocky Mountain, LLC. The new company continues to serve customers in the mining, construction, electrical power generation, oil and gas, automotive, agriculture and transit markets.

"We are very excited about the combination of the two companies, " said Bill Wolpert, President of Cummins Rocky Mountain LLC. "The larger scale of the combined entity results in a more capable business which will allow us to deliver more specialized support to our customers."

Bill Wolpert, a 25-year Cummins veteran, presides over the new organization as President. Bill's tenure with Cummins includes a broad range of experience including: general management, marketing, logistics and OEM sales management, Prior to joining Cummins Rocky Mountain in 2001, Bill directed the design, manufacture and aftermarket support for Cummins Worldwide Marine Business based in Charleston, South Carolina.

Lorin Pugh, Distributor Principal of Cummins Intermountain, has retired from the Cummins family after 36 years of business. The business had been in the Pugh family since 1942, when Lorin's father, Warren Pugh, owned and operated it. "Lorin and his team have made a significant contribution in positioning Cummins as a leader in their territory.

"While retiring from the Cummins family after 36 years in the business is going to be a major change for my family, we are pleased Bill and his team at Cummins Rocky Mountain share a similar philosophy about employee respect and customer service - and that our focus on developing long-term customer relationships will carry on, " commented Lorin Pugh, former President, Cummins Intermountain, Inc.

Bill is committed to continuing a strong relationship with our delivery partners and customers. We feel confident out customers will benefit from the combinations of these two strong companies.

Cummins Rocky Mountain maintains the following locations.

Cummins Rocky Mountain LLC includes the following locations.

Salt Lake City, UT
1030 South 200 West
Salt Lake City, UT 84101
Phone: (801) 355-6500
1-800-851-4317
Fax: (801) 524-1351

Boise, ID
8949 South Federal Way
Boise, ID 83716
Phone: (208) 336-5000
Fax: (208) 338-5436

Billings, MT
5151 Midland Road
Billings, MT 59101
Phone: (406) 245-4194
1-800-332-7788
Fax: (406) 245-9716

Rock Springs, WY
2000 Foothill Blvd.
Rock Springs, WY 82901
Phone: (307) 362-5168
Fax: (307) 382-7900

Gillette, WY
2700 HWY 14-16 North
Gillette, WY 82716
Phone: (307) 682-9611
1-800-773-9611
Fax: (307) 682-8242

Denver, CO
8211 East 96th Avenue
Henderson, CO 80640
Phone: (303) 287-0201
1-800-927-7201
Fax: (303) 288-7080

Grand Junction, CO
2380 US HWY 6 & 50
Grand Junction, CO 81501
Phone: (970) 242-5776
1-800-564-6401
Fax: (970) 243-5494

Phoenix, AZ
2239 North Black Canyon HWY
Phoenix, AZ 85009
Phone: (602) 252-8021
1-800-800-2345
Fax: (602) 253-6725

Albuquerque, NM
1921 Broadway Northeast
Albuquerque, NM 87102
Phone: (505) 247-2441
1-800-800-3888
Fax: (505) 243-6689

Farmington, NM
1101 Troy King Road
Farmington, NM 87401
Phone: (505) 327-7331
1-800-800-4250
Fax: (505) 326-2938

Elko, NV
5370 East Idaho Street
Elko, NV 89801
Phone: (775) 738-6405
Fax: (775) 738-1719

North Las Vegas, NV
2750 Losee Road
North Las Vegas, NV 89030
Phone: (702) 399-2339
Fax: (702) 399-2614

Reno, NV
150 Glendale Avenue
Sparks, NV 89431
Phone: (775) 331-4983
Fax: (775) 331-7429

El Paso, TX
14333 Gateway West
El Paso, TX 79928
Phone: (915) 791-6600
1-800-800-4240
Fax: (915) 852-3295

EVCO House of Hose
Responses from Mark Jolley, director of marketing
David Adkins, general manager.

Question: What are your major product lines?

Answer: Hydraulic and Industrial Hose & Tubing, fittings, adapters and accessories--

(Hose & Tubing lines: Hydraulic, Fuel, Oil, Air, A/C, Acid & Chemical, Air drill, Air Brake, Automotive heater & gas, Automotive Brake & Clutch, Chemical, Food grade, Ducting, Fire hose, garden, hot air, hot tar & asphalt, Irrigation, Jackhammer, Paint Spray, Petro, Plaster, Power steering, Pressure washer, LP, Sewer, Sand blast, Steam, Teflon, Steel Braided, Vacuum, Water discharge & Suction, Copper tubing, Latex, Polyurethane, Polyethylene, Vinyl.

Fittings & Adapters: Steel, brass, black pipe, quick disconnects, compression, Chicago style, Fire hose thread, swivels, metric & foreign threads.

Accessories: Ball & Gate Valves, Blow guns, clamps, cleaners and lubricants, Filters, regulators, lubricators, fuel nozzles, hose cutters, pressure gauges, air & water pressure guns, wands, and tips, sealants, work gloves)

Hydraulic Assembly Equipment including portable and fixed hose crimpers, hand tools and banding machines, Parts bins and cabinets; Hose reels, Major brands are Gates, Goodyear, & Dixon.

Q: Have you added any new products or services for this year? If so, why?

A: As the Intermountain Region's largest Distributor/Retailer of hose and fittings, we are constantly exploring new and innovative products & services, technology, and skilled personnel to meet the ever-evolving needs of our customers. We are also proactive in seeking out new markets and opportunities for growth. The new products and services we bring on typically reflect the needs of new or evolving markets. Some of the products and services most recently added include Bradford sanitary fittings (food industry), and the ability to assemble DOT-approved brake and clutch hoses. Our most significant addition recently did not come in the form of a product or service, but as new ownership. In 2002, EVCO came under new ownership in Dean Jolley. Since taking the helm, Dean has worked with management and employees to motivate and instill this simple, proven formula for success - A happy, fulfilled customer is EVCO's chief product and primary focus.

Q: During the past year, did you have any difficulty securing inventory?

A: Not really. A few suppliers experienced shortages or stock-outs, but this inventory crunch was felt industry-wide at the consumer level. The hose industry in 2004 was affected by price increases consistent with oil and metals price increases. Some suppliers realized multiple price increases throughout the year. Despite these significant increases, demand for hose did not slow in 2004.

One of EVCO's advantages in servicing our customers is our large inventory and multiple stores in the region. With seven stores from Idaho Falls to St. George, it is easy for one store to support another in the event of inventory shortages. When we do run into inventory shortages, we seldom have a problem securing the customer's needs. EVCO employs nearly 50 of the most experienced hose professionals in the Western US. With that kind of experience, it is rare that we cannot find what the customer needs.

Q: Do you anticipate shortages in the coming year for any of your products?

A: No. We are hopeful that just the opposite will occur as manufacturers steady the price bull, recover earnings, and again produce volume to meet demand. We are also optimistic that the oil and metals markets will stabilize and prevent further increases.

Q: What about price increases this year?

A: As mentioned earlier, price increases were more common than usual in 2004 due to the surge of materials costs. We do not see this trend continuing as dramatically in 2005, and are optimistic that 2004 increases will allow suppliers to sustain growth.

Q: Is there a new product you are particularly excited about or feel has made dramatic improvements over previous models?

A: Yes. In 2003, we began assembling OEM-quality, Department of Transportation-certified automotive brake hose. Because of the liability issues, we were not able to provide brake hose assemblies before. After extensive research, we were fortunate to discover a company with the proven technology to build and test brake hoses quickly and accurately. EVCO's brake hoses typically save customers significant time and money. One customer who had just replaced a blown brake hose on his foreign-made vehicle responded excitedly, "They (the Dealer) wanted to charge me $139 for this hose…and EVCO did it for just $35 in less than 10 minutes!"

Q: What trends in the industry are you seeing?

A: The Intermountain region is an expanding area with a fairly good economic forecast for future growth. People all over the country are discovering the abundance that the Intermountain region has to offer and are attracted to our area. EVCO continues to grow with the region and is committed to providing unparalleled value to our customers no matter what industry they are in.

We believe that single family house construction in the region will remain strong as long as the interest rates remain conducive to growth. We also expect multi-family dwelling construction to remain strong. We are optimistic about the future of road and highway construction, as well as continued public works and manufacturing projects. With the recent increase in the prices of metal and energy, we expect that mining will gain momentum in the region.

Q: What are your expectations for the coming year?

A: Optimistic. We realized a year of growth in 2004 and are confident that 2005 will not shift gears. EVCO has a very strong based of loyal and dedicated customers who we really treat as business partners. Their problem is our problem and we do everything we can to help our customers solve their problems. Our customers recognize our commitment to help them grow with unbeatable service and value. If our customers grow, they bring us along for the ride. Also, the election of a new Governor, who is construction- and business-friendly should contribute to and increase in state projects and economic growth opportunities.

EVCO of Salt Lake
2375 South 300 West
Salt Lake City
801-487-5721.

Rasmussen Equipment of Salt Lake City
Responses provided by Randy Gallagos, sales manager
and Dave Cook, rental manager
and Jody McClain, office manager.

Question: What are your major product lines?

Answer: Randy: Kawasaki, Link-Belt, Atlas, Kobelco, New Holland, BoMag and Efficiency

Q: Have you added any new products or services for this year?

A: Randy: Yes, the Screen Machine portable screen plant and impact crushers.

Q: During the past year, did you have any difficulty securing inventory?

A: Randy: Yes

Q: Do you anticipate shortages in the coming year for any of your products?

A: Dave: Yes. We have some delayed shipments

Q: What about price increases this year? (Will they be similar to or more dramatic than past years? Only major price increases in certain product lines?)

A: Jody: We expect price increases similar to last year. Steel prices will have a big impact.

A: Randy: There will be small price increases - about five percent.

Q: Is there a new product you are particularly excited about or feel has made dramatic improvements over previous models?

A: Randy: I'm excited about the New Holland Truck skid steer loader.

A: Dave: The new Atlas Copco Breakers are improved this year over past models.

Q: What trends in the industry are you seeing?

A: Dave: There seems to be a surge in buying heavy equipment.

Q: What are your expectations for the coming year?

A: Dave: We are expecting a good year.

A: Jody: It seems very dependent on the passage of the Transportation Bill in Congress. It seems Utah's economy is still stagnant.

Rasmussen Equipment is located at 3333 West 2100 South in Salt Lake City and at 62 West Washington City Industrial Drive, Washington, Utah. www.rasmussenequipment.com