WORLD MARKETS
ales at John Deere’s construction and forestry division rose 50% year-on-year for the nine months to 30 June to $3.8 billion, and the company expects this momentum to continue for the full year. John Deere said it expected its worldwide sales of construction and forestry equipment to increase by 45% for full-year 2011. “The increase reflects market conditions that
are somewhat improved in relation to last year’s low level and increased activity outside of the US and Canada,” the company said, adding that construction equipment sales to independent rental companies were also seeing “significant growth”. Chief Executive Samuel Allen also highlighted concerns over the health of the global economy and recent turmoil in world financial markets, warning that these factors had introduced an additional element of uncertainty into the company’s near-term outlook.
Meanwhile, the major manufacturer stated
Deere sales up by 50% S
that an initiative aimed at enhancing US manufacturing competitiveness has taken another step forward. At a recent meeting hosted by Deere & Company at its World Headquarters, members of the US Council on Competitiveness reviewed recommendations and discussed priorities for the Council's National Manufacturing Strategy that will later be presented to the US Administration and Congress. Allen is also the current chairman of the Council, which includes leaders from business, education and labour. “Competitiveness is an important priority,” he said. "At John Deere, competitiveness of US manufacturing is important to our employees who know that we compete for customers every day against companies from around the world.” The Council on Competitiveness is a non-
partisan and non-government organisation that convenes top private and public sector leaders to address America's long-term competitiveness challenges.
Deere is
keenly interested in competitiveness as the company aspires to global growth of its two main equipment
Chief Executive Samuel Allen
businesses – agriculture and construction. Products for export to countries outside the US can total 20-30% or more of the output at some John Deere factories in the US. Sam allen“To best serve customers, John
Deere is investing in manufacturing facilities in markets around the world, including the US,” Allen said. “We are building factories in key emerging markets and have invested millions of dollars to improve US factories. The focus of our employees and our company is to remain a leader through global competitiveness.”
A word from the President
The recent Council of Forest Industries (COFI) Convention in Prince George, Canada served as an interesting indicator of a forest industry that is aggressively transforming itself. Five years ago the Convention themes centred on high level discussions related to the Mountain Pine Beetle, sustainability and the Canada/US Softwood Lumber Agreement. Of course, at that time no one was forecasting the length and depth of the decline in the US housing market and in associated lumber prices. A sense of urgency about financial issues was growing but was far from its peak. Over the next few years the
industry hunkered down and went in a ‘cash conservation’ mode. More recently, markets in China have expanded providing much needed economic relief. But other new innovative business opportunities are also gaining momentum. These were highlighted at the convention in the panels on Bio-economy and Green Buildings. Those panels were extremely informative, focussed and
12 International Forest Industries | OCTOBER/NOVEMBER 2011
challenging. We are essentially breaking new ground in these sectors with almost limitless possibilities. We also heard from Premier Clark
who gave the opening address. This event was well attended and the Premier's remarks, including an announcement about the Wood Innovation Centre, were well received. So where to from here? In simple terms I have to fall back on my old mantra: we have to be competitive. In this regard, especially in the context of the Jobs Plan, governments’ focus should be on providing a legislative, regulatory, tax and policy framework to support economic growth. An immediate task at hand is replacement of the Harmonised Sales Tax. This should not occur in isolation but rather within the context of an overall tax system/structure that will support small and large business competitiveness and job creation. – John Allan, President of COFI *Sourced from the COFI monthly newsletter
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