Outside of Borders
Although last year’s shipments of high and heavy equipment were considerably lower than that of recent years due to the global economic downturn, the coming year shows promise for increased flows of construction equipment, agricultural machinery and other oversized commercial equipment. The burgeoning economic development that had been characteristic of many emerging markets now indicates that the greatest demand growth is occurring in countries such as China and India rather than in developed markets.
In North America, as demand in the United States and Canada remains flat, high and heavy equipment manufacturers are looking south toward markets in Mexico and other Latin American countries. In order to meet demand, the distribution of high and heavy equipment throughout North America poses a number of logistics challenges -- from the need for transport equipment and oversize permits to move products legally across borders to the need for protection from vandalism and theft. In order to optimise their logistics efficiency, some manufacturers are assuming greater control over their transportation processes.
Case New Holland (CNH), a worldwide manufacturer and distributor of construction equipment and agricultural equipment, is driving bottom line improvements through its support unit, CNH Distribution Logistics. CNH operates twelve plants in North America, including one in Canada, eleven in the US and a joint venture in Queretaro, Mexico which ships throughout North America and worldwide. From the US, most of CNH’s exports are overseas. CNH transports its finished products by rail from three of its plants in the Midwest to the Port of Baltimore for export. It ships four-wheel drive tractors, combines and large two-wheel drives to Europe, the CIS countries and Australia. Within North America, approximately 30% of exports go to Canada and less than 10% go to Mexico.
