05-04-04

Following a two-year downturn, makers of back-up power generators are finally seeing opportunity for recovery in the form of Iraq. Companies such as Caterpillar, Cummins and others are hoping that reconstruction efforts in the war-torn country will help them through this period and towards prosperity.
Many of these companies are currently waiting for the promised US government contracts, as they have been for the last six months. Many are blaming the continuing security problems in Iraq for the delay.
"It didn't go as fast as we thought it was going to go, but there's still significant opportunity there," said Jim Parker, vice president for Caterpillar's power systems marketing division.

Caterpillar -- the world's largest maker of back-up generators -- and its rivals also recently enjoyed the benefit of last summer's black-out in the US and the effects of Hurricane Isabel, with both events increasing orders for smaller generators. A recent improvement in the US economy has also led to increased interest in mid-sized generator sets (or “gensets”) in recent months. It's still hoped that the Iraq contracts will be awarded, giving a boost to the entire industry.

"I do believe the orders will come," said Tom Linebarger, president of Cummins' power generation business. "There is a general consensus that electrical power generation is one of the greatest needs in Iraq today."

Cummins, Caterpillar and others have already been busy providing temporary power in the country for everything from US military camps to the Baghdad Airport.

Caterpillar estimated it has already shipped more than 2,000 generators into Iraq, mostly small units averaging about 100 to 120 kW.

Source: PennWell