“That [conversation] has been typically countered by concerns about long lead times across the entire heavy equipment industry, inflation, the cost and availability of diesel fuel, and an unpredictable economy and political climate,” Stewart says. “We and [our dealers] have collectively described it as ‘cautious optimism.’ The fact that 2023 is a ConExpo-Con/Agg year and we expect to see funds from the [IIJA] finally reach the community level are added reasons for optimism. But, again, there are contrasting concerns.”
Kanaris agrees that moving targets could make 2023 a challenging year to predict.
“Considering the level of inflation and the high cost of energy, gas and food, it is reasonable to conclude that if these don’t get under control, there will likely be a recession [in 2023],” he says. “The recent elections have not been favorable to attaining some measure of checks and balances and, unavoidably, there are going to be some cutbacks that will have a negative effect on some companies.”
Looking ahead
As taxing as 2022 was with its persistent challenges, companies were forced to adapt and find new ways to meet goals.
Russ Burns, sales director at Terex MPS, says this is exactly what his company did. He expects Terex MPS to apply that mindset once again this year.
“It’s likely in 2023 we will continue to experience situations that require our new and experienced team members to help provide viable solutions,” Burns says. “Many of those team members contributed fresh ideas [this year] that made an immediate impact on our business. Overall, we’ve seen an improvement in hiring qualified personnel in all areas of our business.”
Should supply chain and pricing issues continue into this year, Burns says Terex MPS has a plan in place to keep operations moving.
“Supply chain disruptions, inflation and logistics are ongoing challenges and will likely continue,” he says. “We’ve targeted higher inventory levels and sourcing initiatives to help combat many of these issues. We are analyzing feedback from our customers and distributors to improve our forecasting and drive greater availability for parts and machines.”
VDG has also increased parts and equipment availability. Kanaris says this measure already paid off, as the company grew sales in 2022.
“Our advanced planning to significantly increase the necessary stock of raw materials has reduced the effect of these challenges on our manufacturing,” he says. “These proactive steps have paid off in ensuring our short delivery and keeping the cost of our products stable.”
Garrison, meanwhile, says Superior is experiencing fewer issues of late.
“Currently, we’re experiencing weekly relief in the cost of shipping and receiving our goods,” Garrison says. “Plus, lead times from many of our vendors have started to soften. These were very significant challenges in 2022, especially during the first half of the year.
““I expect building out our manufacturing teams will continue to be a strong focus for us in 2023,” he adds.
