First Name | Dan |
---|---|
Last Name | Fauchier |
Email Address | fauchier@msn.com |
Affiliation | EGCA Magazine |
Subject | Negative impact to bonding limits & equipment financing capacity |
Comment | This regulation could have a significant impact on all contractors that own a fleet of equipment. Margins could decline due to early retirement of productive equipment. This is compounded by the need to spend considerable money to modernize, or rather, modify the fleet structure. Construction is on a competitive bid basis and only a portion of cost can be passed through. The full impact of this cost cannot be pushed through until many years down the road as the field gradually levels out. Hidden equity will decline by an unknown amount as values decline for all Tier 0 equipment. This decline could accelerate as other states clone the California model with the potential for a cascade effect on Tier 0 equipment values. In my opinion, says, CIT's Ralph Potter, this will likely wipe out somewhere between 25-50% of hidden equity over time. |
Attachment | www.arb.ca.gov/lists/ordiesl07/1-_eg_advo_apr_07.pdf |
Original File Name | EG Advo APR 07.pdf |
Date and Time Comment Was Submitted | 2007-04-09 20:45:45 |
If you have any questions or comments please contact Clerk of the Board at (916) 322-5594.