Positive Outlook Increases Meeting Attendance

Implications: At the conclusion of the AED’s 88th Annual Meeting & CONDEX, held in Las Vegas on January 16-18, the enthusiasm and optimism for the year ahead was mentioned by many attendees.  This year’s show was one of the highest attended on record in fact.

Total registrations climbed 17 percent from last year’s convention, bringing the number of attendees up to 3,000.  Distributors, manufacturers and service firm attendees from the United States, Canada, and abroad met to discuss the issues and opportunities facing the equipment industry.

Mr. Les Bebchick, President & CEO, Equipment & Systems for Industry, Inc. of Hopkinton, Mass., was inaugurated as the 2007 AED Chairman. Mr. Bebchick delivered an appreciative message on the strengths of the AED organization and how its network is an important bridge to the success of dealers -- big or small -- across North America.

Outgoing 2006 Chairman, Mr. Dale Leppo, President, Leppo Rents/Bobcat of Akron, of Tallmadge, Ohio, was noted for his successful leadership of AED during 2006 and was recognized for his contribution to a successful annual meeting and CONDEX.

The annual meeting concluded on Thursday with a review of the Outlook for the Construction Equipment Industry and a series Executive Seminars on processes for improving dealership business success.



Analysis: Conversation during the AED meeting and equipment show with attendees indicated that the 2007 construction equipment market strength resides in commercial, industrial, and institutional markets.  These markets have been busy in 2006 and are expected to remain busy throughout the year.

Energy and mining are also strong market sectors for 2007.

Single family residential housing and consumer based sectors are expected to remain soft for the first half of 2007, with possible strengthening in the fourth quarter.

In a survey conducted by the Construction Equipment Distribution Magazine, 61% of the dealers surveyed expect revenues to increase in 2007 following three record-breaking years. In addition, 18% of those same dealers forecast revenue increases of 10-percent or more.

Another sign of market strength is increased optimism for dealer rental fleets.  44% of the dealers surveyed will increase their rental fleet size, 31% will keep fleets the same size, and only 25% expect to decrease fleet size.