Mark S. Kuhar

These days, buying equipment is one part art, one part science. You have to know what you're doing, and have the information to back it up. Do you buy new or used? Do you go with a major manufacturer or with a secondary brand? Do you buy U.S. made, or from an overseas competitor?

All of these considerations are important, given that the current equipment market poses some serious challenges. Where do you jump in in light of changing economic conditions? Well, there are several economic indicators that are worth watching right now. The Association of Equipment Manufacturers' "Construction Equipment Index" has actually risen four of the last five months (current through May). That is very promising.

According to Alison Premo Black, economist for the American Road & Transportation Builders Association, the economy continued to expand in the second quarter of this year, despite higher prices, a softer labor market and volatile financial markets. Although this is positive news, she noted, most consumers and businesses are continuing to feel the effects of the economic slowdown and deteriorating housing market.

But there's a bit of good news for the housing market right now. The value of new construction starts advanced 6 percent in July according to a just-released report from McGraw-Hill Construction, a division of The McGraw-Hill Companies. Residential building edged upward, reflecting some strengthening for multifamily projects that offset further weakness for single-family housing. The nonbuilding construction sector climbed sharply.

Portable producers should keep a keen eye on economic indicators, and use whatever tools they have at their disposal to help make an informed buying decision. We hope this issue, our annual Buyer & Supplier Guide, helps you out.

Mark S. Kuhar
EDITOR-IN-CHIEF

Winner:
1998 Robert F. Boger Award for Editorials
Construction Writers Association

Member:
Construction Writers Association
American Society of Business Press Editors
Society of Professional Journalists