35
SEPTEMBER 2013
ACT
SOUTH
REGIONAL REPORT
Hal Lundgren
reports
that the energy sector
leads the way for a
southern economic revival.
S
keeter Collins’ outlook for the
crane business in the southern
United States is promising.
As Link-Belt’s North America sales
manager, he observed more than four
years of soaring unemployment and
trifling GDP growth. Still, throughout the
Southern U.S., Collins sees the signs of
prosperity and stronger growth in 2014.
“The bridge industry is still figuring
out how to get funding, but that industry
is picking up,” Collins says. “When we
look at Florida, we see housing starting
to come back. Steel erection is increasing.
Rig count is down from a year ago, but
there’s still plenty of work in energy.
Commercial demand is picking up in the
South, too.”
Collins has some good news about the
crane rental business.
“We also see signs that some crane
houses that were not doing well are now
beginning to grow their fleets again,” he
Prosperous
times ahead
them. That’s good for customers because
it makes their rentals cheaper.”
The result, Gunn maintains, is that
“small crane companies have been going
away little by little. I know. I used to own
one. “
Kelley Equipment, a 25-year-old
company, operates a fleet of more than
40 rental cranes, most of them crawlers.
Kelley rents them with or without an
operator.
“Either way,” Gunn says. “Except for our
Grove 5240s. The technical requirements
of the 5240 mean that the operator has
to be very knowledgeable, so we have to
provide the operator.”
Kelley, is a resourceful company, Gunn
says. With profit more elusive during the
last five years, Kelley has adapted well.
“We stay very competitive with our
pricing,” he ensures. “We’ve also done
a good job maintaining and repairing
cranes when the economy won’t let you
replace them.”
Like Collins, Gunn does see growing
sunlight.
Florida rebound
“Florida’s economy is picking up,” he says.
“It has come back from 2012. I see more
dirt being turned, and more homes and
condos being built. That means we will be
putting more trusses in place.
“I’m really optimistic about 2014. But it’s
cautious optimism.”
Thanks in no small part to prospering
energy-industry customers, Houston’s
Palletized Trucking places few conditions
to its optimism.
Kelley Equipment, a
25-year-old company,
operates a fleet of more
than 40 rental cranes,
most of them crawlers.
‘‘
”
We also see signs that some crane houses that
were not doing well are now beginning to grow their
fleets again. Some of the South’s
industrial base is starting to spend
more money.
Skeeter Collins, North American Sales Manager
Link-Belt Construction Equipment
says. “Some of the South’s industrial base
is starting to spend more money. That’s a
trend that will increase crane demand.”
Confidence increasing
No wonder Collins sees 2014 as a time of
broad growth for the crane business. In
ramping up to an improved 2014, Collins
concludes that signs of growth “will make
customers more confident about moving
forward with their projects.”
Collins speculates that where federal
dollars are unavailable for infrastructure
challenges, Southern states will find ways
to overcome the challenges.
In Clearwater, FL, Ben Gunn, Kelley
Equipment’s vice president of operations,
says his company continues to deal with
softness rooted in Florida’s housing
market.
“We do hourly crane rentals, and price
structure is still flat,” Gunn says. “There
are more cranes than there is demand for
