 Editor Allan Leibowitz comments on the news of the week |
There's no doubt that the looming deadline for Tier 4 environmental compliance is a double-edged sword. On the one hand, it is creating new demand for low-emissions equipment which will soon be mandatory. This provides a stimulus for manufacturers by boosting demand. But, on the other hand, it has meant price increases for equipment, and that is discouraging purchases and encouraging users to hold on to existing machinery.
It's also causing them to hold off fleet upgrades. But even that trend can be positive for suppliers, as we see in this week's special report on rough-terrain equipment. Older equipment means more demand for servicing and parts.
Again, we see the interconnectedness of everything in the industry and how one change starts a chain reaction that can be felt across the whole sector.