Clay Eubanks, President of Takeuchi-US
Takeuchi-US is in the midst of a three-year roll, accomplishing one record year after another. We have achieved increases in all areas of our business during this time, including market share, parts, sales, machine sales, and dealer and national account customer bases. While we are tremendously happy about this, we also know—like any manufacturer—our company goes as the economy goes.
The economy is a strong indicator of where our brand will move in any given year. It’s why we forecast to ensure our company keeps pace with what our expectations should be now and in the upcoming years.
Despite heading into an election year, which always brings uncertainty in the marketplace, we believe 2020 will continue to be fruitful. We have averaged 10 to 12 percent growth since 2017, and the economic indicators point in a positive direction for our market segments.
These indicators include low interest rates (take a look at our financial programs), low unemployment at 3.6 percent as of October, decent housing markets, and more. We have little doubt our customers will be busy again in 2020.
According to the National Association of Home Builders, builder confidence remains steady in November with a NAHB/Wells Fargo Housing Market index of 70. The survey gauges builders’ perceptions for the next six months and asks builders to rate traffic of prospective buyers. Scores are then calculated and anything over 50 indicates more builders view conditions as good than bad.
Currently, the U.S. is the second-largest construction sector in the world behind China. The Association of Equipment Manufacturers says North America is poised for a 3.3 percent growth this year, 1.7 percent in 2020, and between 1.5 and 2 percent for the next five years. Residential construction leads the way and represents about 40 percent of the total market.
For us, it’s business as usual as we forge ahead into the new year. In fact, 2020 is looking to be an exciting one as our new training facility is set to open in the spring. The new center will encompass over 9 acres and allows our team to offer year-round service training to our dealer network. It signifies the growth of our company and all we have accomplished thus far with our training efforts.
We fully anticipate 2020 to be right in line with this year. And, after the political direction is clear, we expect good growth again in 2021 and beyond. There may be some economic uncertainty coming, but one thing is evident: there are plenty of opportunities ahead.
From all of us at Takeuchi, we wish you a Merry Christmas and Happy New Year.