Month: May 2022

Dismissal of Fabick Cat’s CEO and Chairman

The removal of Fabick Cat’s CEO and chairman was approved by Caterpillar resulting in a legal battle.

As per the St. Louis Business Journal’s report, Mr. Doug Fabick was dismissed as the Chairman and CEO of the company in early March. Fabick Cat is a family-owned Caterpillar dealership in Fenton, Missouri and Doug had been the company’s CEO since the year 2000.

Doug’s cousin, Jeré Fabick, has now been promoted to chairman, CEO, and dealer principal after serving as president and co-dealer principal from 2015. Jeré has been in the industry for forty years and is the third generation of the Fabick household to oversee the company.

Background of Fabick Cat

Doug’s great-grandfather, John Fabick Sr., established Fabick Cat in the year 1917 and it was declared the sole Caterpillar dealership for the St. Louis district by 1927.

Fabick Cat decided to merge with Fabco Equipment, based in Milwaukee, Wisconsin, in the year 2015. Doug Fabick was the president and COO of Fabick Cat at the time, whereas Jeré Fabick was the president and CEO of Fabco.

In Missouri, Illinois, Kansas, Oklahoma, Michigan, and Wisconsin, Fabick has over 1,200 employees across 37 different sites. In 2020, the organization generated over 1 billion dollars in revenue.

Caterpillar gets the last word on dealer succession plans, and according to court records they authorized Fabick Cat’s motion to remove Doug Fabick as the dealer principle on March 2.

The dismissal of the former CEO has since sparked a legal dispute. If Doug Fabick is ousted as the dealer principle, he must sell his 63 percent majority ownership in the company, as per a 2004 contract amongst Doug Fabick and Fabick Cat. According to the source, Doug Fabick has declined to yield his shares, claiming that he was not “fully ousted” as dealer principal.

Doug was served with a temporary restraining order in St. Louis County Circuit Court on March 14 on behalf of Fabick Cat. The ruling may oblige him to “sign the stock power, and to enjoin him from asserting any voting share of the business,” as per the source.

The communications manager of Fabick Cat shared her opinion on the matter, Kaitlin was quoted saying that “leadership transitions are part of business” and they are convinced that Fabick Cat will continue to thrive as it has for more than a century, despite executive changes.

Other management changes also include appointment of John Fabick to chairman and the return of John Kramer and Barry Klinckhardt as CFO and general counsel, respectively. Being a fourth-generation member of the business, John formerly served as senior vice president and has approximately 40 years of experience.

Kelli Fabick is John’s daughter and a fifth-generation family member, she has worked in the company for more than a decade now. Kelli’s involvement in the business will be expanded, with the eventual aim of enabling dealer transition through succession to another generation.

 

Benefits of Buying a Used Wheel Loader

When attempting to expand their fleet, many companies consider buying used equipment. With a bigger fleet, these companies will be able to take on more jobs, but the investment it requires is huge. Therefore, they often opt for used equipment as they find that there are many benefits that they can enjoy from buying used equipment. If you are considering whether you should purchase used machinery like a wheel loader, you do not have to wonder anymore. Here, we have assembled a few advantages of finding a used wheel loader for sale for your fleet.

Cost Effective

If your company has a low price point, buying used equipment would be a great option for you. Used equipment requires a lower initial investment which a lot of small businesses benefit from. Although the equipment may have been used before, it can still be quite profitable. If you purchase from a reputable dealer who ensures you that the equipment was maintained properly, you will be able to get several years out of it.

Resale Value

If you opt for used equipment, you will be able to avoid the high initial depreciation costs. If a machine has been on the market for a while, its price tends to settle. Since used equipment depreciates more slowly, once its cost settles, you will be able to get a better resale price. With new equipment, the initial depreciation alone would have cost you quite a bit.

Operator Friendly

If you are trying to find a used wheel loader, you should opt for something that has been on the market for some time and is a standard across the industry. This will ensure that your staff is already familiar with the loader. The more widespread it is in the market, the more likely it is that your staff will have experience in operating the loader. This will save you time on training, and you will be able to put your loader to work immediately.

Low Insurance

With a used loader, the insurance costs would be a lot lower because insurance companies base their pricing on how much it would cost them to replace it. Since buying used means that the loader’s replacement costs are going to be lower, you will be able to get lower insurance premiums and pricing. For your company, this means that you will be paying less in the long term and your monthly costs will be lower as well.

Warranties

When you are searching for a used wheel loader, you will come across many dealerships that offer warranties. Buyers have a guarantee through these warranties that they are getting high quality used equipment. You can find a lot of different warranty packages and options available, and you can decide on which one is ideal for your business.

These are a few advantages that purchasing a used loader will offer you. However, since buying a used loader is a big decision, you do not want to mess it up by investing in a machine that does not suit your needs or is not reliable. Make sure to properly inspect the loader that you are buying to avoid having any regrets later. Remember to check the loader’s performance before you make the purchase.