Don't dig your grave with your own knife and fork -- Deere-Hitachi Construction Machinery (DHCM) builds and sells the machines that can do the job. Its lineup includes an array of both new and used hydraulic excavators and track log loaders used in construction and forestry. DHCM, formed in 1988, is a 50/50 manufacturing and sales JV between Deere & Company and Hitachi Construction Machinery. The JV leverages production of the two brand's equipment in the US and Canada. Through DHCM, Deere also distributes Hitachi equipment in North, Central, and South America, and Hitachi distributes Deere's offerings in Asian markets. DHCM is one of a series of deals between OEM giants fueling global equipment expansion.
Despite a sputter of economic activity, the surrounding cloud of residential, commercial, and public construction work remains weak. DHCM sales decreased in 2010 by roughly 50% from the prior year. Shoring up operating income, the company has reduced inventory and production levels and cut costs, including employee hours. Concurrently, it implemented AccelOps' software-as-a-service (SaaS)-based tool to monitor IT infrastructure operations. The investment ramps up DHMC's data management capabilities for tracking engineering, manufacturing, and product support departments across three sites in the US and Canada.
The company is also dealing with the impact of the 2011 earthquake and tsunami that hit Japan. Japanese suppliers provide many of the components for Deere and Hitachi-branded excavators. As a result of the disaster, DHCM's supply chain as well as its North Carolina-based assembly facility was disrupted, delaying delivery of excavators. – less