This series of monthly articles presents a dashboard with aggregate measures of subsectors across industries. It is also a review of sector ETFs such as the Industrial Select Sector ETF SPDR (XLI) and the Vanguard Industrials ETF (NYSEARCA:VIS), whose largest holdings are used to calculate these parameters.

Shortcut

The next two paragraphs in italics describe the dashboard methodology. They are necessary for new readers to understand metrics. If you are used to these series or if you are short on time, you can skip them and go to the leaderboards.

Basic Metrics

I calculate the median value of five fundamental ratios for each subsector: Return on Earnings (“EY”), Return on Sales (“SY”), Return on Free Cash Flow (“FY”), Return on Equity (“ROE”), Gross Margin (“GM”). The reference universe includes large companies in the US stock market. The five basic measures are calculated over the last 12 months. For everyone, the higher, the better. EY, SY and FY are the medians of the inverse of Price/Earnings, Price/Sales and Price/Free Cash Flow. They are better for statistical studies than price/something ratios, which are unusable or unavailable when the “something” is close to zero or negative (e.g. companies with negative earnings). I also look at two momentum indicators for each group: median monthly return (RetM) and median annual return (RetY).

I prefer medians to means because a median divides a set into a good half and a bad half. A capital-weighted average is skewed by extreme values ​​and larger companies. My metrics are designed for stock picking rather than index investing.

Value and quality scores

I calculate historical baselines for all metrics. They are denoted respectively EYh, SYh, FYh, ROEh, GMh, and they are calculated as averages over a retrospective period of 11 years. For example, the value of EYh for transport in the table below is the 11-year average of the median earnings yield in transport businesses.The Value Score (“VS”) is defined as the average difference in % between the three valuation ratios (EY, SY, FY) and their baselines (EYh, SYh, FYh). Similarly, the Quality Score (“QS”) is the average difference between the two quality ratios (ROE, GM) and their baselines (ROEh, GMh).

Scores are in percentage points. VS can be interpreted as the percentage of undervaluation or overvaluation relative to the baseline (positive is good, negative is bad). This interpretation should be taken with caution: the baseline is an arbitrary reference and not an assumed fair value. The formula assumes that the three evaluation measures are equally important.

Current data

The following table shows last week’s closing metrics and scores. The columns represent all the data named and defined above.

	VS	QS	EY	SY	AF	DEER	GM	EYh	SYh	FYh	ROeh	GMH	RetM	RetY
Aeronautics+Defense	-24.42	-10.24	0.0476	0.5567	0.0311	6:47 p.m.	19.88	0.0574	0.8261	0.0407	20.55	22.17	8.34%	23.09%
Building+Equipment	-46.04	27:40	0.0287	0.2370	0.0155	11.29	33.96	0.0429	0.8595	0.0230	9.37	25.29	11.71%	13.44%
Machinery+Conglomerates	-23.75	9.07	0.0425	0.3516	0.0256	21.65	39.39	0.0499	0.5620	0.0316	19.10	37.59	-2.20%	-1.09%
Services+Distribution	-31.58	24.14	0.0308	0.2809	0.0229	31.98	49.88	0.0412	0.4961	0.0310	21.88	48.85	4.57%	23.29%
Transport	14.61	-11.80	0.0426	0.8173	0.0295	26.61	15.82	0.0540	0.6959	0.0200	22.62	26.93	-0.49%	4.49%

Value and quality graphic

The following graph plots the value and quality scores by subsector (higher is better).

Evolution since last month

The most notable changes are an improvement in the value of transport and a deterioration in the quality of buildings and equipment.

Momentum

The following chart plots momentum data.

Interpretation

Transportation is undervalued by about 14% compared to 11-year averages, but its quality is slightly below the baseline. The other sub-sectors are overvalued by 24% to 46% compared to historical averages. Building/construction/equipment is the most expensive sub-sector, but an excellent quality score can partly justify it. Machinery/Conglomerates and Services/Distribution are also above the quality baseline.

Focus on VIS

The Vanguard Industrials ETF has tracked the MSCI US IMI Consumer Industrials 25/50 Index since 09/23/2004. It has a total spend rate of 0.10%, which is a bit more expensive than its closest competitor FIDU (0.08%) and a bit cheaper than XLI (0.12%).

At the time of writing, the fund has 356 holdings. The following table shows the top 10 names with some fundamental ratios. Their overall weight is 30.6%.

Teleprinter	name	Weight	EPS growth %TTM	P/E TTM	P/E front	Yield%
UNP	Union Pacific Corp.	3.98%	26.53	26:45	22.75	1.79
RTX	Raytheon Technologies Corp.	3.87%	207.28	38.16	20.42	2.09
UPS	United Parcel Service Inc.	3.86%	793.96	15.14	5:39 p.m.	2.73
HON	Honeywell International Inc.	3.28%	17.85	24.26	22.19	2.04
BA	Boeing Company	2.88%	65.65	N / A	59.21	0.00
LMT	Lockheed Martin Corporation	2.71%	-6:30 a.m.	18.83	15.98	2.61
OF	DEERE & COMPANY	2.67%	64.95	22.52	17.90	1.03
GE	General electric company	2.64%	-124.73	N / A	28.29	0.34
CAT	Caterpillar Inc.	2.55%	116.76	18.72	18.14	2.00
MMM	3M Co	2.15%	9.37	2:60 p.m.	14.23	4.04

The heaviest industries in the fund are machinery (19.3%) and aerospace/defense (17.5%). VIS has significantly more holdings than XLI (356 large-small caps versus 76 large-mid caps). However, total return and risk metrics since inception are nearly identical for both funds:

	Full return	Annual. To return to	Sample	Sharp	Volatility
SCREW	408.14%	9.76%	-63.51%	0.52	18.90%
XLI	408.67%	9.76%	-62.26%	0.53	18.42%

Data calculated with Portfolio123

In summary, VIS is a good product with cheap management fees for investors looking for capital-weighted exposure in industrials. No holding weighs more than 4%, so the risk associated with individual companies is low. VIS or XLI are equivalents for buy-and-hold investors. However, XLI has much higher liquidity, making it a better choice for swing trading and tactical allocation strategies.

Dashboard list

I use the first table to calculate the value and quality scores. It can also be used in a stock selection process to check the standing of companies against their peers. For example, the EY column tells us that a transportation company with an earnings yield greater than 0.0426 (or price/earnings less than 23.47 is in the better half of the subsector for that measure). A list of scorecards is sent monthly to Quantitative Risk & Value subscribers with the most profitable companies ranking in the top half among their peers on all three valuation metrics at the same time. The list below was sent to subscribers several weeks ago based on the data available at that time.

WIRE	Encore Wire Corp.
MATX	Matson inc.
ARCB	ArcBest Corp.
BLDR	FirstSource Builders Inc.
VNT	Vontier Corp.
LMT	Lockheed Martin Corporation
RS	Crane Co.
CARR	Carrier Global Corp.
UNVR	Univar Solutions Inc.
Bcc	Boise Cascade Co

This is a rolling list with a statistical bias toward long-term excess returns, not the result of an analysis of each stock.

Edison, N.J., March 16, 2022 (GLOBE NEWSWIRE) — TENNEthe construction technology platform that is revolutionizing equipment fleet operations, today announced the release of its construction asset management software, propelling them even further beyond the competition for total asset management. construction equipment.

Tenna is delighted to present Resource management as a new product offering within their total construction equipment management platform. This industry-specific product is a superior solution to others on the market and is specifically designed for the requesting, planning and dispatching of equipment and labor resources in construction. Tenna is excited to enable construction companies to further streamline their project and resource management operations, alongside the strong existing features of the Tenna platform.

This product includes features dedicated to the specific parts of the mobilization process that construction companies perform every day to make the best decisions about moving resources, and ultimately gives clear and visible instructions for drivers, workers and other crews to execute.

With over a year of design and development time and backed by extensive interviews with current customers, this product addresses a key need for contractors in their asset management processes and use cases.

“We have worked closely with many of our current customers to get their feedback and learn their critical needs in a product like this.says Jose Cueva, co-founder and vice president of product at Tenna. “This is a key aspect that makes Tenna and this product unique. As a dedicated partner, we considered our customers’ needs during our design and development to ensure that we built features and functionality that provide a complete solution to real-world power distribution use cases. building and resource sharing. We conducted over 125 hours of interviews with current customers to make this product a reality that would work for them as part of our commitment to their success and satisfaction.”

Tenna’s asset management product has a big impact for contractors because it simplifies a key operational need – providing jobsites with out-of-the-box equipment and operators – making it easier to manage equipment through Tenna as a supplier. unique. It addresses the need to request, approve, plan, schedule and dispatch assets and labor resources while leveraging real-time location, telematics alerts, maintenance needs and other information about Tenna’s operating assets. This allows them to make the best decisions regarding equipment planning in addition to approving and efficiently meeting project resource requirements.

Resource management allows contractors to effectively manage the sharing of equipment and labor resources between project sites, departments, and other locations like the maintenance shop, and allows the ‘project team, by distributing personnel and manpower resources to effectively communicate with each other around the equipment moves without picking up the phone. “This product is suitable for construction, like the rest of our offerssays Austin Conti, CEO and co-founder of Tenna. “From requesting equipment and associated crews for a project operation, to dispatching tandems delivering materials, to coordinating equipment moving the lowboy and driver from site to site, you can do it all with Resource Management in Tenna. Resource management is dynamically integrated into our product suite. It allows to accomplish both complex planning of people and equipment.”

While some vendors offer dispatch functionality as a standalone, separate product, Tenna’s resource management functionality is integrated into the larger Tenna platform, seamlessly integrated, and allows users to leverage the rest Tenna’s equipment management information into their scheduling and dispatch workflows in a single system. .

For Tenna, the release of its construction resource management software and construction equipment dispatch functionality further strengthens its already robust platform, providing a complete solution for contractors and their critical and routine operational needs. Tenna is committed to staying ahead of contractor demands to remain the best construction-focused integrated asset management solution for the industry.

Contact Tenna to learn more about resource management for your construction business.

About Tenna

Tenna goes beyond tracking. tena, www.tenna.com, is the construction technology platform that is revolutionizing equipment fleet operations. We are the reference in the field of construction.

We let you know more. You get comprehensive and reliable tracking on a unified platform designed for mixed fleets. We have built our solution on over 100 years of construction experience.

With more insight, you can control more. From status to assignee and maintenance, get comprehensive data on your mixed fleet. On your projects, gain more control over the use of equipment, control the cost of work and supervise your needs in terms of safety and compliance. In the office, get full visibility and better communications with the field, store and between departments, providing full transparency from any location and better data for making purchasing decisions.

And finally, with more control, you can do more. With knowledge comes the power to make informed decisions about leasing/owning/moving mixed assets. See improved usage. Have more predictable days.

Join the discussion on the Tenna blog and connect with Tenna on LinkedIn, Facebook, Instagram and YouTube.
  

• Dispatch Events

• Allocation tables

Enar Group manufacture a range of internal concrete vibrators, as well as vibratory plates, rammers and walk-behind rollers.

Enar Group

The Wacker Neuson Group, a leading manufacturer of light and compact equipment, has reached an agreement with Spanish majority owners Enarco SA to acquire up to 100% of the Enar Group. Enar is a manufacturer of lightweight construction equipment specializing in concrete consolidation. Besides a wide range of internal concrete vibrators, the company‘s product portfolio includes vibratory plates, rammers and walk-behind rollers for soil and asphalt compaction.

The aim of the new alliance is to further strengthen the market position of the Wacker Neuson Group and expand its international reach, particularly in the field of concrete technology.

“With the acquisition of the Enar Group, we have found the perfect way to expand our offering in the rapidly growing concrete technology market. Enar’s products are well positioned and the company has established strong market access, creating very promising opportunities for our group,” said Alexander Greschner, Group Sales Director Wacker Neuson.

Enar is a leading company in its sector with a particularly strong presence in the European and Latin American markets. The company operates globally, generating sales of around €22 million in 2021. Enar manufactures its products in the Spanish city of Zaragoza and employs around 130 people.

“We are delighted to have gained a strong partner in Wacker Neuson, opening up excellent long-term prospects for our company and the Enar brand. I am convinced that the merger will offer our employees the best possible development opportunities and that we – together with Wacker Neuson – will be even better placed to meet the needs of our customers as we move forward,” said Jose Luis del Prim Imaz, Chief Executive Officer of Enarco SA

Given Enar’s healthy position in the market and the high level of customer acceptance of its products, Wacker Neuson will operate Enar as an independent brand. “Concrete technology has always been one of the core competences of the Wacker Neuson Group. This acquisition will strengthen this line of business and give us access to new customer segments. Enar distributes its products through sales channels that are not core to our Wacker Neuson brand, so it’s a win-win for both parties,” said Greschner.

The transaction is expected to close in the first half of 2022, subject to regulatory approvals and the completion of the acquisition of all individual shareholder shares up to a certain threshold by the Wacker Neuson Group. It is expected that the purchase price will be paid in cash and in own shares.

DALLAS, March 11, 2022 /PRNewswire/ — SMT, a leading distributor and service partner for the equipment and transportation industry based in Brussels, Belgium extends its network to United States with the acquisition of ROMCO Equipment Co. and its operations across Texas. The closing of the sale was March 9, 2022 and represents the transfer of ownership of the twelve ROMCO offices to Austin, Carmine, fort worth, Long-term vision, San Antonio, Buffalo, corpus Christi, dallas, Houston, MidlandRio Grande Valley, and Stephenville. This family business operating under the Mullins family since 1961 is the exclusive Volvo Construction Equipment distributor in most Texas.

Like ROMCO, SMT is also a family business representing over 75 years of experience in the construction equipment industry and currently operates in thirty countries in Europe, Africa, and now the United States. The company, considered a successful dealer by Volvo, provides advanced solutions to the industry. “We are excited to expand our network in the United States by acquiring ROMCO’s successful operations in Texas” said Jérôme Barioz, CEO of the SMT Group. “We believe that ROMCO will benefit from SMT’s know-how and global investments in systems and solutions in order to be number one in terms of availability, productivity and satisfaction. customer base in this growing market,” he added.

Likewise, SMT is delighted to benefit from ROMCO’s more than sixty years of experience in the Texas market and plans to invest more in rental activities, technical upgrades and employee development programs.

“The end has come for the Mullins family’s involvement in ROMCO, but it’s a brilliant new beginning under SMT ownership.” share Robert Mullinsowner and CEO of ROMCO, Inc. “The construction and mining industries have been part of my life since I was a young boy following my father, the founder of ROMCO Robert O. Mullins” he added. Mullins also said, “SMT will provide the leadership and resources needed to meet the future of the industry. I will truly miss all of the great employees and customers I have had the privilege of being associated with over these 50 plus years.”

Charlie ClarksonPresident of ROMCO added, “We look forward to writing the next chapter with SMT. With their global reach, we will be able to elevate the level of customer offerings and support.

“We welcome SMT as a seasoned partner who brings a wealth of global experience with the Volvo CE brand. I am confident that their innovative mindset and advanced approach to customer service will benefit both ROMCO and Volvo customers in the territory. the legacy of customer support by the Mullins family and I wish Robert the best in his future endeavours,” said Stephane Roypresident of Volvo Construction Equipment Region Americas.

About ROMCO: ROMCO, Inc. is a family business based in Dallas, TX since 1961 with 290 employees. It is the parent company of ROMCO Equipment Co., ROMCO Paving Equipment, ROMCO Power Systems and Material Processing Systems. Each division serves Texas construction and mining markets with quality products and customer service. ROMCO’s wholly-owned subsidiary, Material Producers Construction Services, provides installation and maintenance services in support of the products ROMCO sells to the building materials industry. In addition to Volvo Construction Equipment, ROMCO also offers the following product lines: GOMACO; CemenTech; Sandvik; Hitachi; ASV; Atlas Copco; Yanmar; Finnish; Kafka; McLanahan; Superior; telestack; K-Tec; Terramac; Atlas; Mantsinen; Lee Boy; Bearcat; Phoenix; Kent FRD and Genesis. For more information, visit www.romco.com.

About SMT: SMT is one of the Volvo Group’s most important partners with a presence in 30 countries across Europe, Africa and now in United States. SMT implements its high standards and creates value for its customers and suppliers through its more than 1700 employees. For more information, visit www.smt.network.

Show original content to download multimedia:https://www.prnewswire.com/news-releases/smt-enters-us-market-for-construction-equipment-with-acquisition-of-texas-based-romco-equipment-co-301500741.html

ROMCO EQUIPMENT CO.

Process machinery‘s Gary Honchell (right) received the Association of Aggregates and Industrial Minerals of OhioBrad Belden’s (OAIMA) Hall of Fame Award Belden Brick Co. at the annual meeting of the OAIMA. According to Pat Jacomet, Executive Director of OAIMA, “Gary has long been a supporter and advocate of OAIMA and its mission. His service to the industry, including his time on the Board of Directors, has contributed greatly to the advancement of our members and the association.

In addition to offering the opportunity to see the latest equipment, concrete world hosted many expert-led training sessions that participants could attend. This year’s selection included a balance of technical and forward-looking topics ranging from 3D printing in concrete construction, women in construction, waterproofing solutions and many more. More than 37,000 “registered professionals” – as well as more than 1,100 exhibitors – took part in the annual event at the Las Vegas Convention Center.

the Kentucky Crushed Stone Association (KCSA) held its safety and education seminar in Louisville, Kentucky, where CRH Americas‘ Tim Osborne gave a presentation titled ‘Human Performance: Are We Setting Up Our People for Success?’ The two-day event explored a variety of safety and health topics, and it even offered attendees the chance to get a COVID-19 vaccine onsite through a joint effort between KCSA and the Mine Safety and Health Administration.

Mellott Society named a building after Ram Patel, a longtime employee who retired late last year. Patel (pictured holding the sign on the right), began his career at Mellott as a senior vice president in 2000. The Ramesh Patel Learning Center, located in Warfordsburg, Pennsylvania, will provide on-site training for employees of Mellott.

Hyundai Construction Equipment Americas in partnership with Prime Farm and Lawn, a Hyundai dealership headquartered in Union City, Tennessee, to help clean up efforts following tornado damage in nearby Samburg, Tennessee. Pictured is Ed Harseim, Hyundai’s North Central Sales Manager (center), with First Choice co-owners Don Parks (left) and Ron Parks (right).

The company’s total tractor sales fell 45.6 percent year-on-year to 6,114 units in February 2022 from 11,230 units sold in February 2021.

National tractor sales in February 2022 amounted to 5,686 tractors in February 2022 compared to 10,690 tractors sold in February 2021, registering a decrease of 46.8% year on year. Escorts said tractor industry wholesale sales continued to remain subdued in February 2022, due to last year’s high base, strong price increases due to higher tractor price inflation. raw materials impacting retail sales and higher than normal inventory levels with the channel

At the same time, tractor export sales in February 2022 stood at 428 tractors in February 2022 against 540 tractors sold in February 2021, registering a decrease of 20.7% year on year.

Going forward, Escorts said it expects higher rabi plantings overall this year, good level of water reservoirs, increased Union budget allocations to the rural sector agriculture and early indicators of normal monsoon next year will give positive momentum to the tractor industry in the coming year.

The company‘s construction equipment (ECE) segment in February 2022 sold 386 machines compared to 449 machines sold in February 2021, a 14% year-on-year decline. Escorts said the construction equipment industry is facing near-term challenges due to sharp price increases driven by unprecedented inflationary pressures and changes in emission standards coupled with low rental rates. equipment that impacts retail sales. However, the company expects demand to start improving for construction equipment in the coming year due to the government’s push on infrastructure projects and the stabilization of the economy. increase in market prices.

The Escorts Group is an Indian engineering company that operates in the agricultural machinery, construction and material handling equipment and railway equipment sectors.

Escorts’ consolidated net profit fell by 32.36% to Rs 193.71 crore on a 2.83% drop in operating income to Rs 1,984.28 crore in Q3 FY22 compared to Q3 FY21.

Escort shares closed up 0.96% at Rs 1,852.10 on Monday. The national stock market will remain closed today, March 1, 2022, due to Mahashivratri.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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STATEN ISLAND, NY – Not all jobs are treated equally – and not all require a college degree to have a successful career.

Data journalism website Stacker sought to find the highest paying jobs that don’t require a college degree in New York City. He consulted the U.S. Bureau of Labor Statistics Occupational Outlook Handbook compile a list of all jobs that do not require a college education.

All occupations that listed high school graduation, some college education (no degree conferred), post-secondary education with no degree, or no formal education requirement for entry-level positions were considered in this list. The jobs have been ranked according to their average annual salary in 2020.

Here are the 50 highest paying jobs that don’t require a college degree, in addition to their annual salary.

Note: Jobs include positions available in the New York metropolitan area, which includes New York, Newark, and Jersey City.

50. Costume Attendants – $78,390

49. Railcar Repairers — $78,660

48. Aircraft mechanics and maintenance technicians — $78,740

47. Cones – $79,550

46. ​​Installers and Repairers of Controls and Valves — $80,950

45. Food Service Managers — $81,330

44. Telecommunications line installers and repairers — $81,590

43. Repair of switches and switches — $81,670

42. Millwrights — $81,770

41. Fabric and Apparel Pattern Makers — $82,710

40. Petroleum pump system operators, refinery operators and gauges — $83,660

39. Sales Representatives, Wholesale and Manufacturing — $83,980

38. Electricians — $84,190

37. Postmasters and Mail Superintendents — $84,280

36. Adjusters, examiners and investigators — $84,380

35. Iron and structural steel workers — $84,880

34. Firefighters — $85,040

33. Boat captains, mates and pilots — $85,940

32. Front line supervisors of mechanics, installers and repairers — $86,060

31. Installers and repairers of elevators and escalators — $87,300

30. Service Sales Representatives — $87,700

29. Electrical and electronic repairers, power station, substation and relay – $87,820

28. Terrazzo workers and finishers — $89,220

27. Stationary Engineers and Boiler Operators — $90,880

26. Simultaneous court reporters and captioners — $91,560

25. Gas Plant Operators — $92,160

24. Advertising Agents — $92,370

23. Insurance sales agents — $92,650

22. Power Line Installers and Repairers — $94,950

21. Power plant operators — $94,960

20. Ship’s Engineers — $95,380

19. Operations engineers and other construction equipment operators — $96,440

18. Accommodation Managers — $97,680

17. Realtors — $98,580

16. Front-Line Supervisors of Construction Trades and Extractive Workers — $99,410

15. Boilermakers — $103,050

14. Detectives and Criminal Investigators — $104,230

13. Farmers, ranchers and other farm managers — $105,370

12. Pile driving operations — $106,160

11. Insulation workers, mechanical — $106,690

10. Electricity distributors and dispatchers — $107,600

9. Front Line Supervisors of Correctional Officers — $113,070

8. Property, Real Estate and Community Association Managers – $113,800

7. Front-line supervisors of retail workers — $115,000

6. Makeup artists, theater and performance – $121,600

5. Front Line Supervisor of Fire Fighters and Prevention Workers — $128,210

4. Transportation, warehousing and distribution managers — $131,860

3. Front Line Police and Detective Supervisors — $133,880

2. Real Estate Brokers — $134,770

1. Athletes and Sports Competitors — $197,690

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As the global economy remains firmly on track to grow in 2022, a number of challenges are poised to pose obstacles for the Agriculture and construction equipment industries in the weeks and months to come.

According to the last business intelligence According to WEA data, the global economy grew robustly by 5.1% in 2021. And although projected growth of around 3.9% is expected for 2022, a slowdown in growth seems be a fatality. Short-term factors like the ongoing COVID-19 pandemic, ongoing supply chain issues, and persistent labor shortages, as well as long-term factors like deglobalization and inflation, are emerged to dampen some of the enthusiasm in the wake of what has been a strong global economic resurgence.

“The last recession we experienced ended the longest period of economic expansion in the United States, and this recession lasted from February 2020 to April 2020,” said Benjamin Duyck, director of AEM Market Intelligence. “Two months, in traditional economic terms, cannot even be accurately described as a recession. However, this economic disruption hit us all hard, and we are still dealing with the aftermath today – labor shortages, supply chain issues and higher interest rates.

AEM offers a variety of business intelligence products designed to deliver key industry insights, macro trends, and industry data for distinct competitive advantage. Learn more.

Continued growth on the horizon

The question of when the next economic recession will hit is an easy question to ask, but not so easy to answer. Recent Stock Market Volatility did little to allay concerns. However, the stock market is still up 20% from a year ago and 30% from two years ago (just before the COVID-19 pandemic started).

“Can we accurately predict the next recession? asked Duyck. “No, and it’s a running joke that economists have correctly predicted 15 of the last 10 recessions. In other words, they are often wrong and pessimistic. However, it will be interesting to see what happens, especially with high inflation. »

AEM has surveyed its members quarterly for nearly two years on how quickly they expect to return to pre-COVID-19 levels. For some time, the responses were generally quite positive, according to Duyck.

“But this past quarter’s data is moving the other way again, largely due to the headwinds we’re facing with inflation, labor issues and supply chain disruptions. supply,” he said.

Mitigating factors

When it comes to farm equipment, the impact of inflation cannot be underestimated. There was an 11.7% year-over-year increase in farm machinery prices. On the construction side, inflation is a little lower, but it is gradually picking up, with an increase of 9.7% in the last quarter.

Talent acquisition is also an important – and troublesome – factor for manufacturers of agricultural and construction equipment. According to the results of the latest quarterly survey of AEM members, hiring in the manufacturing sector remains a major problem: 84% of all respondents encountered problems in this particular area, while 90% of all agricultural members interviewed addressed this particular issue.

Respondents offered a wide range of potential strategies and tactics to address hiring challenges – internships, educational partnerships, higher wages, bonuses, marketing and recruiting efforts, flexible hoursand outsourcing, are some of the most common – but it’s clear that labor will remain a prevalent issue for equipment manufacturers for the foreseeable future.

What’s equally clear are the factors that led to the supply chain issues currently plaguing agricultural and construction equipment manufacturers, according to Duyck.

“Ultimately, the supply-demand imbalance and COVID-19 restrictions have wiped out all the inventory and fat that keeps the global supply clock ticking. Another striking metaphor perhaps closer to our industries is this: we are running a machine that consumes little oil, and is almost out of it. The machine will continue to run, and maybe even run for some time. , until it no longer works. — Benjamin DuyckDirector of Market Intelligence AEM

“COVID-19, followed by an increasing number of employees leaving the workforce, has resulted in both closures and product shortages,” he added.

As a result, and in response, the supply chain planned to initially adjust production downwards, expecting lower demand. In addition, shipping companies have reduced their schedules, expecting a drop in demand for shipments. And while demand in some aspects of the economy has fallen, the decline has not been evenly distributed across industries and workers.

As people continued to spend money on homes and consumer purchases, interest rates remained low and the United States experienced an expansion in the money supply. In addition, workers and businesses have been supported by the government. All of this, combined with product scarcity and increased demand, leads to inflation, which negatively impacts supply chains.

Eventually, product scarcity and increased demand led to inflation in the supply chain – and factories could not expand easily due to bottlenecks in the chain caused by both by low production and the global nature of production. Now, due to over-demand, it is very difficult for suppliers to understand the true demand for their products.

“We can see it in our industries, not just OEMs and component manufacturers, but also OEM end users,” Duyck said. “That, in short, is why we have supply chain issues. Labor, supply chain and all of this is intertwined and the results of policies and actions from decades in the works triggered by COVID-19.

WEA Member Perspectives

According to AEM’s latest quarterly member survey, more than 95% of agricultural and construction equipment manufacturers who responded said they had supply chain issues. However, it appears that either demand is starting to normalize or supply chain signaling is improving, as 44% of respondents noted that issues are starting to pick up.

“For the vast majority of these people, the issues are both national and global,” Duyck said. “Problems are also widespread, but the consensus opinion among members is that the problems lie particularly in the prices, shipping and quantities of raw materials and, subsequently, inputs and components. Moreover, the problems are not necessarily at the end point or receipt of the shipment, but rather at the source of the supplier – and in particular with international shipping.

Many AEM member respondents indicated that supply chain issues caused them to fall behind, despite continued growth, which could eventually lead to changes in inventory management. According to Duyck, the third quarter of 2021 saw inventory levels rise between 15 and 20% in the agriculture and construction segments, with agriculture seeing a further jump of 15% in the fourth quarter of the year. last.

“It’s not yet clear if any changes in inventory management will actually take place, but it’s entirely possible that higher inventory levels will become more frequent for some time,” Duyck said.

However, despite all the challenges affecting the agriculture and construction equipment industries, growth is still expected (albeit at a slower pace than in recent months).

Agricultural and Construction Equipment Market Outlook

For the construction machinery market:

• The value of the construction industry is expected to grow by 4.5% this year, largely driven by residential.
• WEA member perceptions show strong demand (83% see year-over-year growth ahead), and it’s reasonable to expect 6-10% growth over the next 12 coming months, after growth of 6 to 10% stronger than expected in 2021 .
• Infrastructure spending is set to grow in the coming years.
• Uncertainty related to the COVID-19 pandemic, high material costs and monetary policy remain concerns.

For the agricultural equipment market:

• Farm income has increased despite declining government support and rising production costs.
• Member expectations remain high (81% expect year-over-year growth and 91% expect growth to continue).
• Stocks are too long after running out in 2021.

“Ultimately, the supply-demand imbalance and COVID-19 restrictions have wiped out all the inventory and fat that keeps the global supply clock running,” Duyck said. “Another metaphor that perhaps relates more to our industries is the following: we operate a machine that consumes little oil, and that has almost nothing left. The machine will continue to work, and maybe even work for a while, until it stops working.

AEM Business Intelligence

AEM is committed to helping its members stay competitive in today’s ever-changing global marketplace. By providing member insights, macroeconomic econometric data and much more, the association strives to provide information that helps equipment manufacturers facilitate decision-making, understand competitors – and most importantly – develop their ability to better serve their customers. To learn more, visit https://www.aem.org/business-intelligence.

Subscribe to AEM Industry Advisor for more news and information relevant to equipment manufacturers.

The answer is Nicole Novick, Product Manager, radianMemphis, TN.

Recently, I had the privilege of attending a meeting dedicated to women in construction. As the meeting progressed, it became very apparent that two of the biggest challenges facing the industry today are attracting and retaining employees.

Even though women make up about half of the overall workforce in the United States, the construction workforce can only claim 10% of female employees. This means that women are still an untapped labor market, especially in construction and trades. Ideas on how to attract women into these fields were discussed at the meeting before someone said, “Hey, once we have them, how do we keep them?”

The answer that topped the list was “inclusiveness.” Women need to feel part of the team. They are strong team members, eager to learn and bring a diverse set of skills. Their development and inclusion as team members and professionals is key to retention.

Part of inclusion is providing workers with properly fitting PPE, including high-visibility clothing. For years, tradeswomen didn’t have much choice in their work clothes. They often wore the same clothes their male counterparts wore. In some cases, it worked. But, overall, these oversized protective garments did not fit well. Loose clothing can lead to snagging hazards on construction equipment, often resulting in trips and falls, one of the leading causes of jobsite injuries. Tight-fitting clothing leads to discomfort and inappropriate wear, such as wearing clothes open, tucked in, or not at all.

Other times, women wore completely different clothes than men, which set them apart from their male peers. This often left the women feeling left out of the team.

In recent years, clothing designed for women has become more common. These garments resemble men’s clothing, but are designed with specific details that take into account the female shape and figure. Some of the design details include:

• Narrower at the shoulders
• Slightly tapered at the waist
• Wider sweep (hips) or side slits
• Zippers/higher zippers for more coverage and security

These better-fitting garments improve compliance and help reduce trips and falls from snagging hazards. Female construction workers are already required to manage a myriad of workplace hazards due to the nature of their work, so why add ill-fitting clothing to the mix?

High visibility vests, t-shirts, winter jackets and raincoats designed specifically for women are now available to help equip workers in a variety of applications and seasons. ANSI/ISEA 107 Type O Class 1, Type R Class 2, and Type R Class 3 garments are also offered, covering various compliance and application needs.

Plus, if your construction site needs specialized or custom apparel for women or men, many leading PPE manufacturers are now better equipped to create custom apparel “Made in the USA” based on your needs. specific to the site.

The variety of high visibility apparel available today allows women in construction and trades to blend in with their male peers. Team inclusivity and well-fitting clothing and PPE will help women feel more comfortable and safe on the job. Feeling safe, secure and comfortable at work will not only help attract female workers, but also retain them.

Editor’s note: This article represents the independent opinions of the author and should not be construed as an endorsement by the National Security Council.