As I look back on 2005 there were some major changes at the end of the year in the generator industry that signal optimism for 2006 by the major generator brands.
In mid October Cummins announced to the press an 18% price increase on its generators from 750 to 2000 kW.
Also in October Caterpillar announced its building a new factory in Newberry, South Carolina to manufacture 10-200 kW generators for the North American market. This new facility will also free up needed capacity in the FG Wilson Larne facility.
FG Wilson made large investments in with the inauguration of its state of the art sound test facility a nearly $2 Million USD investment.
FG Wilson has also made signifciant investments in its Piracicaba, Brazil facility to increase its capacity.
On December 21st Kohler Power Systems of Wisconsin announced their acquisition of SDMO of France. While no price was announced it is likely the largest investment in the generator business since the acquisition of FG Wilson by its parent company Caterpillar in 1998.
Almost on the back of the Kohler/SDMO deal was the announcement of the purchase of MTU/Detroit off highway engines by Swedish buyout firm EQT from Daimler-Chrysler. MTU is the engine supplier to both SDMO and Kohler in the above 500 kW range.
It is no surprise to see increases in prices, investment in capacity and buyouts of competitors as demand worldwide for generators has been at an all time high in 2005.
China and the Middle East have been big factors in the increased demand. Closer to home there is also an increased optimism for 2006 due to the heightened awareness by business and home owners of having back up power due to the images seen in the press of the 2005 hurricane season.
Ruben Byerlee
Sales & Marketing Manager
FGW Latin America & Caribbean
Tel: 954-433-2212 ext 23
Fax: 954-433-4431
Cell: 954-993-7416
[email protected]
www.FGWilsonMiami.com
Skype:rubenfgwilsonmiami