CNH Stays Innovative While Putting Customers First
Cover Story
By Fernie Grace Tiflis   
Sunday, 14 May 2006
smc CNH says controlling its internal processes is important to its success.
CNH says controlling its internal processes is important to its success.
Case New Holland (CNH) anticipates a 5 to 10 percent increase in its 2006 net sales of equipment: it reported net sales of $11.8 billion in 2005. CNH says its first quarter 2006 net income reached $43 million, compared to $15 million in the first quarter of 2005.

A full-line company in both the agricultural and construction equipment industries, CNH says its products meet customers' needs. “We're a company with innovative new products,” it explains. “We possess an ability to effectively focus on the customer, helping them overcome virtually any challenge.”

With CNH's global influence – 39 manufacturing locations, 26 R&D centers and 17 joint ventures – customers remain its No. 1 priority. “[The company's] global reach and deep local roots give us the unique ability to listen, understand and respond to customer needs,” it states.

“We always have to become more effective and to be reliable and show our customers their business is our priority,” says Luciano Paiola, executive vice president of construction equipment worldwide manufacturing.

To help provide customers with effective service, CNH organized its operations into three segments: construction equipment, agricultural equipment and financial services. The construction equipment division alone contributed $4 billion to CNH's 2005 revenues, and expects to do even better in 2006.

“Pricing [during] the quarter was higher than all economics and currency related cost increases, resulting in positive net recovery,” CNH states. “Pricing was strongest in North America, and raw material cost increases are moderating.

“CNH has a leading position in backhoe loaders and a strong position in skid steer loaders in North America and crawler excavators in Western Europe. We believe that we are the most geographically diversified manufacturer and distributor of construction equipment in the industry.”

“Being a global company, we have to be diverse,” Paiola adds. “I believe [companies] should be guided with general rules, but each plant should branch out and see what works for them [before] applying them to other [divisions].”

Lean Lines
According to Paiola, the construction division benefits from lean manufacturing. “The world is getting more complicated, so we have to adjust quickly,” he notes. “It is a reality to reduce waste, and we do it through manpower, materials and time. Controlling internal processes is paramount to the company.”

Paiola says the construction division has two kinds of product lines: light equipment and heavy equipment. Its light equipment consists of:
• Backhoe loaders
• Compact track loaders
• Forklifts
• Mini-excavators
• Mini-wheel loaders
• Skid steer loaders
• Telehandlers
Its heavy equipment includes:
• Articulated trucks
• Compaction equipment
• Crawler excavators
• Dozers
• Graders
• Wheel loaders
• Wheeled excavators

“Worldwide industry unit retail sales of heavy construction equipment are expected to increase by 5 to 10 percent in 2006, led by increases of 10 to 15 percent in the North American [markets] and the rest of the world,” the division explains. “Sales of light construction equipment also could be up to 10 percent.”

New Products
The division recently introduced a new line of five backhoe loaders and launched two new models of compact wheel loaders. CNH says its 14-foot B95 and B95 tool carrier (TC) and its 15-foot B95LR, B110 and B115 have the power and torque needed to get a job done fast.

“The inline loader linkage, high-capacity hydraulics and traditional geometry give these machines exceptional lift capacity,” the company explains. “Because fast cycle time is essential to productivity, the new loader backhoes feature high-capacity, fast, responsive hyrdraulics.”

Eric Winkler, brand marketing manager, notes that these new models keep up with industry trends. “We've seen a lot of changes and improvement to the tractor loader backhoe,” he said in a statement. “These new loader backhoes lead the industry in loader breakout force to excel in the toughest conditions. They offer an unmatched package of loader and backhoe performance, precise control, operator visibility, comfort and maintenance ease.

“They provide excellent reach at maximum dump height to make grapple and bucket work easier. The operator can place loads exactly where he wants them.” Compact wheel loaders, Winkler states, are ideal for backfilling, digging, grading, hauling, scraping or stacking applications in small work spaces. The new W50TC and W80TC are versatile and are powered by Deutz engines that produce 55 and 75 gross horsepower. “The W50TC and W80TC may be compact in size, but their high-performance design and rugged construction allows them to get their fair share of work done on the job site,” Winkler says. “These maneuverable machines are loaded with innovative features that make them ideal for a wide variety of landscaping, industrial material handling and residential construction applications.”

Flexible Firm
“Whether our customers grow crops or livestock, whether their operation is large or small, [we] provide customers with a variety of solutions,” CNH says.
The division's agricultural products include:
• Tractors
• Balers
• Coffee harvesters
• Combines
• Cotton pickers
• Forage harvesters
• Grape harvesters
• Hay tools
• Material handlers
• Planters
• Seeders
• Sprayers
• Sugar cane harvesters
• Tillage equipment

The company's financial division, CNH Capital, supports customers and dealers with a full range of wholesale and retail financing, leases, revolving credit and insurance products. “[We] are one of the largest captive equipment finance organizations in the industry,” CNH Capital stresses. “[We] strengthen the bond between factory, dealer, customer and the brands to make it easier than ever to buy, sell and own top-quality equipment.”

Safety as Top Priority
Paiola says CNH wants to improve the training of its employees. “We are rethinking the way we train our staff,” he states. “Today, there's more education in the industry. “For example, manufacturing engineers before were not college graduates, but today, they are. So we use professional expertise and do on-the-job training.” Paiola adds that safety is important to the company.

“Safety and quality are just not negotiable,” he explains. “We are OSHA certified in the U.S., but we tend to do more than what they require. And we do it not because we want to be recognized for it, but it is more to contribute for the betterment of the community. Safety training is on the top of our list, and employee safety awareness is one of the key contributors to their annual bonus.”

Proud Company
CNH was honored in December 2005 by Construction Equipment for its LS185.B steer loader and LT185.B/LT190.B compact track loaders.

The award, CNH explains, recognizes manufacturers for their innovation and research and development to provide equipment that allows for greater productivity, efficiency and safety.

“Construction Equipment screened [more than] 1,000 products before [making] their selections, drawing upon input from readers and their own experience with equipment technology and the equipment marketplace,” CNH says. “We're very proud to be recognized by one of the top magazines in our industry.”
 
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