Ken Bianco
VP Commercial Operations - JCB
Company History




                                             65 Years in the making…




Mr. JCB builds his first     ...
JCB Worldwide – 18 Manufacturing Facilities
JCB’s Product Range




            Over 300 Products



                Products Range from 500kg to 46 tons!
The Best Selling Backhoe and Telescopic Handler in the World
Fully Integrated JCB Drive-Train




                                   WE BUILD OUR OWN:
                                ...
JCB in Savannah, GA – 10 Years as a Local Manufacturer
The JCB HMEE
2010 North American Dealer Network




                                     JCB NORTH AMERICA
                            ...
Export History From Savannah (Through 2008)




           YEAR          2005        2006      2007       2008

          ...
The Next Generation Skid Steer – Made in Savannah




NEW GENERATION JCB SKID STEER
Savannah designed, engineered, built a...
Why Savannah, GA.
Location, Location, Location…




                                PORTS
                                • Savannah
       ...
JCB Logistics & Supply Chain
Why Georgia?




               BENEFITS
               • Airport / Ports
               • I 95
               • Rail (CSX...
Why Georgia? - Construction Equipment Growth Potential (2000-2005)




                                                   ...
GLOBAL LOGISTICS
Current Inbound / Outbound Flow




    INBOUND                                   OUTBOUND
    INCOTERMS – LANDED CIF     ...
Future Inbound / Outbound Flow




    INBOUND                                                             OUTBOUND
      ...
NORTH AMERICA LOGISTICS
North American Challenges




                            • Fluctuating Diesel Prices
                            • Changi...
North American Challenges – Load Optimization Matters




HEAVYLINE                      COMPACT                     COMPA...
North American Challenges - Transport




                                        • New EPA Requirements
                 ...
North American Challenges – Customs Compliance / Anti-Terrorism Compliance




C-TPAT (Customs Trade Partnership Against T...
North American Initiatives – Supply Base Localization




                                                                ...
North American Initiatives - Freight Consolidation




                                                 NORTH CAROLINA SAM...
North American Initiatives - Freight Consolidation




                                                 NORTH CAROLINA SAM...
High Georgia Port Utilization




  Tacoma
                                                     Halifax



               ...
The Future – Local Manufacturer to Global Exporter
Backhoe Across America
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Bill Stankiewicz Copy 2010 Georgia Logistics Summit Ken Bianco Jcb

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Bill Stankiewicz Copy 2010 Georgia Logistics Summit Ken Bianco Jcb

  1. 1. Ken Bianco VP Commercial Operations - JCB
  2. 2. Company History 65 Years in the making… Mr. JCB builds his first In 1953 JCB invents the backhoe JCB begins to export its JCB further expands JCB invents the JCB begins production product (a tipping trailer) loader, a staple in the modern machines as demand its range to include Monoboom skid steer on its new engine and out of a small garage in workplace, and continues to grows. JCB also introduces the Fastrac, the with a side entry for Savannah, GA is the the United Kingdom. expand production through the 60’s the telescopic handler. world’s fastest tractor. unmatched safety. new home for JCB USA.
  3. 3. JCB Worldwide – 18 Manufacturing Facilities
  4. 4. JCB’s Product Range Over 300 Products Products Range from 500kg to 46 tons!
  5. 5. The Best Selling Backhoe and Telescopic Handler in the World
  6. 6. Fully Integrated JCB Drive-Train WE BUILD OUR OWN: • Axels • Engines • Transmissions • Rams • Chassis • Cabs • Arms About 95% of the BHL is Built By JCB
  7. 7. JCB in Savannah, GA – 10 Years as a Local Manufacturer
  8. 8. The JCB HMEE
  9. 9. 2010 North American Dealer Network JCB NORTH AMERICA 84 Dealer 219 Locations 87% Market Coverage
  10. 10. Export History From Savannah (Through 2008) YEAR 2005 2006 2007 2008 UNITS 590 849 1611 1352 COUNTRIES: Panama, Mexico, Chile, United Kingdom, Guatemala, Venezuela, Colombia, Jamaica, Malaysia, Ecuador, Australia, South Africa, Thailand, Indonesia.
  11. 11. The Next Generation Skid Steer – Made in Savannah NEW GENERATION JCB SKID STEER Savannah designed, engineered, built and shipped globally
  12. 12. Why Savannah, GA.
  13. 13. Location, Location, Location… PORTS • Savannah • Brunswick
  14. 14. JCB Logistics & Supply Chain
  15. 15. Why Georgia? BENEFITS • Airport / Ports • I 95 • Rail (CSX, Norfolk Southern) • Services to all Major Foreign Ports • Diverse Economy • Excellent Climate • State Encouragement • Right Demographics
  16. 16. Why Georgia? - Construction Equipment Growth Potential (2000-2005) 150% - 200% 100% - 150% 75% - 100% 50% - 75% 25% - 50%
  17. 17. GLOBAL LOGISTICS
  18. 18. Current Inbound / Outbound Flow INBOUND OUTBOUND INCOTERMS – LANDED CIF INCOTERMS - EXWORKS SUPPLIER CUSTOMER (Dealer)
  19. 19. Future Inbound / Outbound Flow INBOUND OUTBOUND INCOTERMS - EXWORKS INCOTERMS – LANDED CIF SUPPLIER LLP CUSTOMER (Dealer) Supply Chain Control | Visibility | Reduce Congestion | Standardize Packaging
  20. 20. NORTH AMERICA LOGISTICS
  21. 21. North American Challenges • Fluctuating Diesel Prices • Changing Government Regulations • Rising Port Fees (i.e. 4% per year) • Rising Warehouse Fees • Road Congestion and Safety
  22. 22. North American Challenges – Load Optimization Matters HEAVYLINE COMPACT COMPACT High Margin Lower Margin Lower Margin Ex. $2000 Truckload Ex. $2000 Truckload Ex. $2000 Truckload P/Unit Cost = $2000 P/Unit Cost = $500 P/Unit Cost = $2000
  23. 23. North American Challenges - Transport • New EPA Requirements • New Engines Reduce Soot / NOx • New Engines Heavier / Costly (+14k) • $6k More per 100k Miles to Operate
  24. 24. North American Challenges – Customs Compliance / Anti-Terrorism Compliance C-TPAT (Customs Trade Partnership Against Terrorism) • Facilities Security / Pre-Employment Verification / Inbound Cargo Screening • Compliance Beneficial – Upfront Setup Burden – Backend Benefits ISF (Importer Security Filing) • Importer Electronically Submit Advanced Cargo Info to US Customs • Significant Change in Supply Chain Security • JCB Experience has Been Positive but Still a Significant Investment in Training / Education / Systems
  25. 25. North American Initiatives – Supply Base Localization 10 Hour Spin 4 Hour Spin 60% of Localized Content Within 10 Hour Spin
  26. 26. North American Initiatives - Freight Consolidation NORTH CAROLINA SAMPLE • Current Transport: 3276m p/ week • 5% of the Purchase Price
  27. 27. North American Initiatives - Freight Consolidation NORTH CAROLINA SAMPLE • Future Transport: 900m p/ week • 2.7% of the Purchase Price • $600k Savings per Year • 114k Less Miles per Year • Transition to Returnable Packaging
  28. 28. High Georgia Port Utilization Tacoma Halifax Baltimore Hueneme Georgia Ports - 63% Galveston
  29. 29. The Future – Local Manufacturer to Global Exporter
  30. 30. Backhoe Across America
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