Spokane firm finds market for small graders

Spokane -- RAHCO International Inc. recently introduced its new fine grader, the FG-110C, a small machine that is meant to take the place of the "Athey-style" grader, which was discontinued about 20 years ago.

The company specializes in heavy equipment and conveyors used in the mining and irrigation industries around the world. Usually, each peice is custom made from specificiations supplied by the customer.

Its reputation as a firm that manufactures one of a kind machines is what prompted Inland Asphalt in Spokane, to ask about recreating the small grader. "They had about 20 of the Athey style graders, but they need to be replaced" sid Dennis Medina, Rahco marketing manager. The smaller grader is used to prepare the earth for driveways or small paving projects, Medina said. The FG-110C machinery is being constructed with CAT parts for easy maintenance.

"We were also looking for an opportunity to expand by supplying non-custom machinery. We hope to sell about 10 to 15 of the graders per year," Medina said. The cost is $110,000 each.

Until recently contractors had to resort to equipment that dwarfed small paving projects, but with a wheelbase of 10'5"RAHCO's new grader is the perfect prep tool where the work area is limited in size.

In designing the FG-110C, RAHCO set out to build a machine that would have a long service life, easy-to-find parts, and versatility. The FG-110C uses CAT® OEM parts and components throughout including a CAT® 3054T turbo so service, parts and warranties. The CAT® skid steer "Quick Attach" assembly upfront accommodates a variety of attachments making this a versatile machine.

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RAHCO will manufacture the FG-110C at its manufacturing facility in Spokane, Wash. another in a long line of robust machines developed for the construction, canal, harvesting and bulk materials handling industries.

Equipment sales in the Pacific Northwest are even or slightly ahead of last year's, according to equipment retailers with offices in Montana, Idaho, Oregon, Alaska, Washington and California.

In 2004, sales picked up after a few lackluster years, due to a federal tax break. This year's sales are being spurred by two factors: low interest rates and pent up demand for new machinery and new construction, said Virgil Green sales manager with Roward Machinery in Spokane. There sales were running ahead of last year for the first two quarters of 2005. The company brings in orders from Wenatchee in Eastern Washington across Idaho and Montana.

"In our area spec home building has really picked up," Green said. "There is also a lot of Department of Transportation work." Contractors who put off purchases when there was an economic slump and need to replace equipment are also boosting sales. One favorite is the John Deere J series loader, carried by Rowand Machinery.

"Deere has always been known for its fuel efficiency and this loader has been very popular," Green said.

For Western Power and Equipment vice president, Bob Harbin sales have been about even with last year and up over the two years before that.

"New housing starts are what drives our business and those have been up in Oregon, Alaska, Washington and Northern California," he said. His company is the main Case dealer in those states.

The downturn in the construction industry in 2001 and 2002 forced some contractors to delay purchases, and "the trade ins we are getting are a little bit older than they used to be," Harden said. His big seller has been mowing and trimming equipment used at airports and along highways. The Trackat, is a redesigned mower allows the driver to move at highway speeds when traveling on the road, and appropriate speeds when mowing.

Both Green and Harbin expect sales to remain steady through 2005. "Next year will be will keeping a close eye on housing starts and interest rates," Harbin said.