Construction Machinery ME September 2015 by Construction Machinery ME

ISSUE 47 R 2015 SEPTEMBE

RAW POWER iS NEWS & ANAWlyOSRd T hE l A S T iNg k iT SPOT T E A Nd MUCh MOR ER UNdER ThHE EhAUMSMED

GT EXPLORINERY M A RKET M ACHIN IDDLE E AST IN T HE M

Ng i R U T C A F U N A M gERM A N TA NCE

R THE IMPORRENCY, OF CU TATION U P E R & BR A ND ics telemat

R E T BE T d E T C E N N CO

G, N I D N E S S US C S I D A S T R A E D R G U I T B C M A N UFA I V ING & STORING R E CE

CONTENTS

SEPTEMBER 2015 08_NEWS The latest news from across the region and further afield.

16_NEWS ANALySiS The construction sector’s response to fuel deregulation in the UAE.

18_hEAvy hiTTERS: TOP OF ThEiR gAmE BOMAG’s expanding presence in the light equipment sector.

24_BETTER CONNECTEd

iN SP O T T E d BANgKOK

Manufacturers discuss sending, receiving and storing big data, and explore the benefits of adopting telematics.

32_hAuL ThiS! A visit to the Volvo CE production line helps explain the strength that lies beneath the yellow paint.

38_gERmAN mANuFACTuRiNg

nish e from Spa Tower cran Comansa rer Linden tu c fa u n a m ction the constru n o d e tt o is sp wer aNakhon to of the Mah . in Thailand

With the fall in value of the euro against the USD,

CMME explores the knock-on effects for the Middle East construction sector.

r e w o raw p EL 44_ NEW R The latest

E A SE S

d of m the worl releases fro

r Ten tips fo

inspec

ry.

n machine

constructio

EN 49_TOP T

achinery ting used m

before you

buy.

mER ThE hA m nd why brand awareness R E d N u _ et a 52 inery mark

h t used mac The curren quality. p product m u tr to s continue

ES to Ng BRidg i ne is used d L i u B crawler cra _ m o 56 o b e ic 00 latt

8 Superlift 3 ailles. The Terex dge in Vers estrian bri d e p a t c constru

FASTER, FUEL EFFICIENT

F SERIES

10% FUEL ECONOMY

Models 721F, 821F and 921F deliver 10% fuel saving,with reduced exhaust emissions

PERFORMANCE AND RELIABILITY

Four mode power control and new generation five-speed transmission result in faster cycle times and increased productivity

CASE LOADERS DRIVE PRODUCTIVITY

New generation of axles, new chassis, new Hydraulic hoses lay out, Larger buckets and special tires, designed for hostile environments, Waste & Scrap handling BioGas, Compost and Agricultural applications

Country Bahrain UAE Kuwait Qatar KSA Lebanon Jordan Egypt

Dealer

Abdulla Ahmed Nass & Sons Al Shirawi Enterprises Instant Access Co Nasser Bin Khaled & Sons Co Roots Group Arabia Someco The Commercial & Industrial Co (C.I.C) Unimar Egypt

Contact Number

+973 1 770 31 23 +971 4 371 85 85 +965 2 225 99 72 +974 4 458 01 38 +966 2 699 66 28 +96 1 125 36 00 +96 2 550 62 60 +202 3 346 51 80

Web Page

www.nassgroup.com www.alshirawienterprises.com www.instantaccess-co.com www.nbks.com www.arabian-roots.com www.somecointernational.com www.cic.com.jo www.unimaregypt.com

www.casece.com

ONLINE SEP TEMBER 201 5

L AU N C H PA RT N ER

CONSTRUCTION MACHINERY ME’s home on the web MOST POPULAR

EDITOR'S CHOICE

READERS' COMMENTS

Abu Dhabi approves 26 major projects in second quarter Total floor area of developments given green light triples to 2.3 million square metres, Abu Dhabi Urban Planning Council says.

Jobs advice: What Gulf construction firms look for when hiring Top trends driving recruitment in the sector.

PHOTO GALLERIES

DreDging the new Suez Canal in egypt The new waterway marks a significant achievement by men and machines. See photo galleries at: meconstructionnews.com/photos

Dubai set to break new records with world’s tallest residential tower Planned 711m-tall tower to be part of Meydan One development, which will also include world’s longest indoor ski slope.

Name withheld; response to story ‘Modi visit: UAE, India aim to raise $75bn infrastructure fund’

READER POLL

FIFA turmoil unlikely to impact Qatar project pipeline – experts Gulf state’s ambitious construction plans will flourish with or without 2022 World Cup, industry executives say.

Dubai Parks and Resorts’ expenditure tops $1bn Second-quarter costs came to $218m as theme-park developer looks to meet October 2016 project deadline.

“There were some impressive numbers being thrown around after [Indian Prime Minister] Narendra Modi’s visit to the UAE – not least the billions being put into a fund for much-needed infrastructure. But to achieve such ambitious plans India will have to make doing business much easier for foreign firms. Buying land there is a nightmare and there’s a whole host of bureaucratic complications and legal oddities that firms need to grapple with.”

What is your view of the UAE property market?

40% 26% VIDEO

MeyDan One, Dubai’S lateSt MegaprOjeCt Development is set to include the world’s tallest residential tower, longest indoor ski slope and largest dancing fountain. See videos at: meconstructionnews.com/videos

Another ‘bubble’ is about to burst

The boom is over, prices will fall further

21% 11% The ‘stabilisation’ is a positive sign

Prices will start rising again soon

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com

AFGHANISTAN FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 (UAE) famco@alfuttaim.ae AZERBAIJAN Aztexnika Ltd + 994 502 452 555 A.Aslanbayov@aztexnika.az GEORGIA Elite Motors Ltd + 995 577 769 615 zantelidze@elitemotors.ge IRAQ Sardar Automobile and Machinery Trading Co. + 964 750 344 4701 ihsan@sardarmachinery.com KUWAIT Al-Zabin International Group Co. For Heavy Equipment + 965 2433 4721 alzabin@alzabinkuwait.com LEBANON AMTRAC (Abdelmassih Trading Company) + 961 3 425625 michel@amtrac-lb.com OMAN GENSERV (General Engineering Services Est) + 968 244 90755 sales@genserv-oman.com

THE POWER YOU NEED Productivity

Serviceability

Reliability

Maximize your productivity and access more applications when you combine the L150G with durable Volvo attachments

Taking care of your wheel loader shouldn’t be complicated. That’s why the L150G is loaded with time saving features

Featuring a premium Volvo engine and perfectly matched drivetrain and hydraulics, the L150G wheel loader delivers power, productivity and reliability

PAKISTAN VPL Limited + 92 42 111 875 875 uzair.shahid @panasiangroup.com QATAR Arabian Agencies Company WLL + 974 44 50 0925 araco@araco.com.qa SAUDI ARABIA FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 966 12 680 4444 famco@alfuttaim.sa SYRIA Nassib Saad Est. Trading & Import + 963 11 222 5432 i.saad@saad-syria.com TURKEY Ascendum Makina + 90 216 581 80 00 info@ascturk.com TURKMENISTAN Ez Aziya-Hyzmatdash + 993 124 37278 h.hangeldyev @aziya-hyzmatdash.com UAE FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 famco@alfuttaim.ae UZBEKISTAN C&H International + 998 711 475 003 hojinhan88@gmail.com YEMEN Elaghil Trading Co + 967 1 207 470 elaghil@y.net.ye

Since Volvo Construction Equipment began designing wheel loaders in 1954, machine owners and operators have got to know the legendary reputation of these productive, fuel efficient machines. The L150G wheel loader features state-of-the-art technology such as OptiShift – a unique technical advancement which reduces fuel consumption by up to 18% and increases machine performance. The standard Boom Suspension System on the L150G boosts productivity by up to 20% and enables faster and more comfortable work cycles and increases machine life. Building Tomorrow. volvoce.com

EDITORIAL SEP TEMBER 201 5

GROUP GROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD

PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713 EDITORIAL

Terex and Konecranes Tie-up looKs liKe a smarT move

ACTING EDITOR

While the number of strategic tie-ups and divestments in the construction machinery industry can at times seem epidemic, at first blush the announcement by Terex and Konecranes of a planned “merger of equals” looks to have promise. In recent years, Terex has focused on its presence in the lifting segments, including aerial work platforms and construction cranes, as well as materials processing. Meanwhile, Konecranes has a strong presence in the Middle East, especially in the ports sector and in industrial overhead cranes. Combining complementary businesses will give the merged firm a broader offering. Customers will be able to select from a wider range of machines, while the sales team will have more opportunities to convert existing customers over to new segments. If the merger goes ahead – regulatory approval is expected next year – the larger firm will have a bolstered and responsive service organisation, says the outgoing CEO of Konecranes, Pekka Lundmark. This isn’t just about boosting existing service levels, it’s also about winning new service contracts globally, which is picked to be a growth area, as more and more customers look to have their servicing outsourced. That will be significant in the port industry, a sector of growing importance in the region. All in all, it looks like there are plenty of savings and synergies for the new company, including supply chain efficiencies and lower costs. But real savings can emerge in the longer term, with the combined research and development of the two companies.

MARKETING & ADVERTISING

Efficiencies on the production side, such as greater commonality of components and spare parts, may take longer, but will also produce benefits for the company and its customers. Going with the theme of change, you’ve probably noticed that CMME has received a design overhaul. When the magazine launched back in late 2011 the intent was to produce a publication geared up to give the region’s machinery industry the respect it deserves. That means not only in-depth and accurate reporting, but a large-size magazine with great images and graphics. On top of refreshing the magazine’s feel, the bold new design give more prominence to photos of the construction equipment and hopefully adds to the feeling of reading a magazine that is passionate about the industry and its readers. One other note: this will be my last issue as Acting Editor of CMME. David Thompson has joined the team as the new Deputy Editor and will be the point of contact for all things editorial. Please be in touch with David if you’d like to share your opinion or invite him to your job-site to see some of your machines in operation. I will remain on board as editorial advisor. We hope you enjoy reading.

STIAN OVERDAHL stian.overdahl@cpimediagroup.com +49 176 271 203 87 DEPUTy EDITOR DAVID THOMpSON david.thompson@cpimediagroup.com +971 4 375 5715 SUB EDITOR AELRED DOYLE

COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGN ART DIRECTOR SIMON COBON CIRCULATION & PRODUCTION DISTRIBUTION MANAGER SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGITAL WEB DEvELOPER MOHAMMAD AwAIS WEB DEvELOPER UMAIR SHAMIM PUbLIShED by

Registered at IMpZ pO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com PRINTED by printwell printing press LLC

Stian Overdahl Acting Editor, CMME

© Copyright 2015 CpI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

S W NE

ONLINE FRAUD

hackiNg scam alert as fraudsters target dubai coNstructioN firm

fices, f o w e N , hiN e s t i v es – a i t i New m ac N i w cts , N e e j o r p gioN at w e r Ne e h t arouNd k o o l e w oNth m s i h t ew what ’s N

Excavation completed in Qatar on 10km drainage project Tunnel boring machines (TBMs) have completed excavation work on the 10km main tunnel of the Mesaimeer Surface and Ground Water Drainage Project in Doha, according to press reports. The Public Works Authority (Ashghal) said the new project will discharge groundwater and storm water into the sea, helping reduce both pumping costs and disposal of groundwater in construction projects around the country, as well as preserving the foundations of buildings and reducing land subsidence due to rain. According to the Peninsula, excavation work on the main tunnel required two TBMs specially designed and

developed for this project by the German manufacturing company Herrenknecht AG. The ‘moles’ excavated a tunnel 30 metres beneath the ground. The tunnel is connected to the drainage network and will hold surface water from sub-networks over an area of about 170 sq km. Remaining construction work on the project includes the further excavation and construction of sub-tunnels, inspection manholes and 21 access shafts along the main tunnel to enable maintenance. Completion of Ashghal’s Surface and Ground Water Drainage Project is expected in the first quarter of 2017.

A Dubai-based

hacked and they were

machinery company

able to read all the

has warned of a

correspondence,”

rise in hackers and

Lahoud said, noting

LEIGHToN

online fraudsters

that CMC’s own

CoNTrACTING

targeting the region’s

computer networks

QATAr sIGNs

construction sector,

were not breached.

$604M DEAL

after the email

WITH DoHA BANk

systems of one of

Lahoud did not name,

Leighton

its customers was

had already received

Contracting, a

allegedly infiltrated.

a genuine bill for

construction

The Construction

a five-digit euro

division of UAE-

Machinery Centre

sum from CMC. Not

based Habtoor

(CMC) said it

realising they had been

Leighton Group,

became the victim

contacted by a bogus

has signed a new

of attempted fraud

CMC representative,

project finance

after criminals falsely

the customer initiated

deal with Doha

impersonated one of

the transfer to the

Bank, to support

its representatives in

fraudster’s bank

the construction

an attempt to extract

account. “They

of Qatar General

money from a client.

hacked [into] our

Joe Lahoud, GM

customer’s email

Electricity

The client, which

& Water

of CMC Group, told

system and created

Corporation’s

MEConstructionNews.

a fraud act through

Water Security

com that there was

impersonating our

Mega Reservoirs

an “increasing trend”

identity and requesting

Project at Rawdat

of fraudsters creating

the transfer to another

Rashed, valued at

email addresses and

account than ours,”

QR 2.2bn.

website domains

said Lahoud.

Each mega

similar to those

In this instance,

reservoir will

used by genuine

the attempted fraud

have a capacity

suppliers, and then

was identified, police

of 100m gallons,

communicating with

were notified and

and they will

customers, posing as

the transfer was

be the largest

official employees.

successfully blocked.

reinforced

He referenced one

“I strongly advise you

concrete

case in which a hacker

to review your security

reservoirs in the

broke into a client’s

measures and money

world, according

private email account

transfer procedures.

to a statement

and developed an

We need better data

by Leighton

online correspondence

protection, both at the

Contracting.

impersonating a CMC

individual corporate

representative. The

level as well as societal

customer believed

government level,

the hacker’s messages

but we also need

to be legitimate.

better detection and

“The customer’s

response,” he said in

email system was

an online statement.

CMY

MANAGE IT WELL M A K E I T L A S T.

NEWS ROUND-UP SEP TEMBER 201 5

BILAtERAL tRADE

case construction Equipment to showcase at south africa show

$75bN iNfrastructure fuNd agreed betweeN uae aNd iNdia WorLDWIDE CEMENT DEMAND To GroW By 4.5% Global demand for cement is expected to grow by more than one

Case Construction Equipment has announced it will display a full line of equipment at next month’s Bauma Conexpo Africa show in Johannesburg. The line will include a range of machines the company offers in the Middle East and feature its recently launched offering for roadbuilding operations, including the Case

CoNsTrUCTIoN CosTs fALL IN THE Us US construction costs fell in August, according to IHS and the Procurement Executives Group (PEG). The US construction sector registered 45.7 for the month, down from 48.8 in July 2015.

1107 DX vibratory soil compactor, the new 570T backhoe loader, the 821F wheel loader and the Case B series crawler excavators and graders. The Johannesburg show, which runs September 15-18, will feature construction machinery, building material machines, mining machines and construction vehicles. Case participated in the

previous event in 2013, which saw 20,000 visitors attend, the majority from South Africa and other sub-Saharan African countries. Speaking about the planned event, Andy Blandford, vice president CNH Industrial Construction Equipment for Europe, Africa and the Middle East, said: “The African continent offers great opportunities of growth… The Maghreb region and Sub-Saharan Africa – and in particular South Africa – are key markets for us.” Bauma Conexpo Africa provides exhibitors with a platform to meet customers and demonstrate how they can help them achieve their targets and run their business effectively.

billion tonnes per year between

The agreement will include a

2014 and 2019,

dedicated infrastructure fund, and the

reaching a

two nations will also raise bilateral

total of 5.2

trade by 60% in the next five years,

billion tonnes,

according to news agency PTI.

according to a

“The economic cooperation will

recent study by

be enhanced with the target of

Freedonia Group.

increasing trade by 60% in the next

A key driving

five years. This will support investment

force behind

in India’s plans for rapid expansion

the expected

of next-generation infrastructure,

growth is the

especially in railways, ports, roads,

rise of projects

airports and industrial corridors

in developing

and parks,” a joint statement said.

markets;

In the 1970s, trade between India

however, North

and the UAE was valued at $180 million

America will also

per annum; today it is approximately

see a substantial

$60 billion. This made the UAE the

increase in

third largest trading partner of India

demand.

for 2014-15, after China and the Us. PM Narendra Modi made a twoday visit to the UAE in August to address business leaders from the region. He noted that India has huge investment opportunities for investors from the UAE.

E rE Joh n DE vo lu m E s D ow n o n rE nc y anD cur n onstructio

eere’s C for John D % in Revenues ere down 13 division w ry st $1.53 re to Fo and scal year ter of the fi ar ent. u q em d ir at the th mpany st ing to a co % rd 34 co ll ac , fe n billio division fits for the e ro p er g w r in te at Oper r the quar t n. “Sales fo o en li il m m ip 9 sh 2 to $1 lt of lower su re a as ly ts of lower main rable effec d unfavou an es t by m se lu ff vo partly o anslation, tr cy en y rr an cu mp ation,” a co price realis . id sa t statemen

use of fleet management software in saudia arabia increasing The construction rental market in KSA is forecast to grow by over 12% between 2014 and 2020, fuelling demand for construction equipment fitted with telematics technology, according to the latest research report published by Markets and Research,

entitled â&#x20AC;&#x153;Saudi Arabia Construction Equipment Rental Market Forecast & Opportunities, 2020.â&#x20AC;? The report also predicts key market trends and developments in the growing construction equipment rental market in Saudi Arabia,

with implementation of fleet management software (FMS). FMS is computer technology that enables users to accomplish a series of specific management tasks relating to a fleet of vehicles, including gathering,

storing, processing, monitoring, reporting and exporting information, allowing users to monitor and gather a wide variety of management data, ranging from the notification of routine maintenance and fuel monitoring for increased efficiency to speed and braking monitoring for driver safety, for a variety of strategic purposes. Over the next five years, approximately 300 major infrastructure projects will be in planning or execution stages in the Kingdom, with growth in the sector underpinned by private and public participants.

TErEx TrUCks INCrEAsEs INvEsTMENT IN AfTErMArkET sUPPorT Terex Trucks puts the customer first, with three new appointments in after-market and customer support management. An ongoing commitment to supporting dealers and customers has led to the appointment of three new regional managers at Terex Trucks: Manuel Nemer, Paul Culliford and Joe Sottosanti. The trio will be responsible for improving customer satisfaction, vehicle offroad awareness and parts marketing and engagement.

PIPE DREAM? MEET REALITY

PIPELAYERS ENGINEERED FOR YOUR BUSINESS

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NEWS ROUND-UP SEP TEMBER 201 5

MERgERS

terex, koNecraNes merger to create $10bN craNe giaNt

manitowoc to build product verification centre in Germany Uk fIrM MAkEs BIoDEGrADABLE CoNsTrUCTIoN GLovE UK-headquartered Globus has launched the world’s first fully biodegradable, synthetic

Crane provider Manitowoc has announced plans to build a product verification centre (PVC) close to its Wilhelmshaven factory in northern Germany. The company also says it will update and modernise its Wilhelmshaven factory, in order to optimise production and increase manufacturing capacity by as much as 40%. Plans are in place to build the Wilhelmshaven PVC on a 9 hectare site in the Bauens/ Memershausen Industrial Park. The facility will employ a team of 30 engineering personnel.

Speaking of the latest announcement, Jens Ennen, Manitowoc’s senior VP of allterrain and truck cranes and the company’s CTO of Global Technology, said the opening of the PVC is the next step in the improvement of the operations at Wilhelmshaven. “By adding a PVC, we can now take our design and production to the next level and ensure we maintain our position as one of the world’s leading producers of mobile cranes.” Both the PVC and the facility renovation are expected to be completed before the end of 2016.

valuE of G c c s to p ro J E c t EwEr DEspitE f incrEasE ts c o n t r ac

in ill increase the GCC w in n n io io ct ct u ru Const inor red despite a m g ar in ye rd is co th value ded, ac tracts awar n co e ll h T ra . E ve M in the o dmg events hite, VP of t awards ac tr n to Andy W co n nstructio co f o e pated lu total va ion is antici e GCC reg th t u ing o d h il g throu . The bu bn in 2015 4 9 $1 h ac e to re ctors ar tructure se and infras 1bn in 4 $1 top expected to 2015.

work glove,

Us crane maker

global industry”. stig

featuring the

Terex and finland’s

Gustavson added:

manufacturer’s

konecranes have

“konecranes Terex

Eco Best

agreed an all-share

will be in an excellent

Technology

merger, as they look

position to deliver

(EBT). The glove

for cost savings in a

enhanced growth

is designed to

“highly competitive”

in revenues and

protect workers

global market. The

margins through

from hand

“merger of equals”

several strategic

injuries, and

is set to create

advantages, including

has applications

konecranes Terex,

significant cross-

within a range of

with $10 billion

selling opportunities.”

sectors, including

in revenues and

construction,

earnings of around

Terex is set to

highways,

$845 million.

maintain “significant

logistics and landscaping.

Current Terex

konecranes

headquarters” at

shareholders will own

both companies’

approximately 60%

present head offices

of the new company,

in Connecticut

with konecranes

and Hyvinkää,

investors set to

finland. shares are

receive 40% under the

to be listed on the

new agreement. The

NAsDAQ exchanges

board will consist of

in both Helsinki

nine directors – five

and New york.

from Terex and four

The merger is

from konecranes

subject to regulatory

– with Terex boss

and shareholder

ron Defeo as CEo

approval and is

and stig Gustavson,

expected to close in

current chairman of

the first half of 2016.

konecranes, as chair.

The combined group

ron Defeo told

will have some 32,000

Bloomberg Business

employees worldwide,

that the combination

generating annual

creates a “more

net income benefits

diverse company that

of $119 million

will be in an excellent

within three years,

position to succeed

according to a joint

in a dynamic and

statement issued by

highly competitive

the two companies.

KIT SPOTTING SEP TEMBER 201 5

Linden Comansa 21LC290 fLat top dominates the sky in Bangkok The tower crane from Spanish manufacturer Linden Comansa is spotted on the construction of Thailand’s tallest skyscraper, in Bangkok. The MahaNakhon tower is a 340m structure with 77 floors, and from 2016 it will house a hotel, a shopping area and luxury apartments. On top of the MahaNakhon tower stands the 21LC290 flat-top crane. Featuring an 18t maximum load capacity and 40m jib, the crane was initially erected on fixing angles with a freestanding height of 60.7m. As the tower gained height, the 21LC290 18t did too, thanks to Linden Comansa’s internal climbing system, which is tied to the structure of the building. This internal climbing system climbs the crane quickly and safely while maintaining two ties to the structure, and saves costs as it only needs 11 mast sections. An external crane would need more than 60 mast sections to reach the height of 340m. In order to operate with the greatest possible efficiency, the 21LC290 18t is equipped with a 110kW rated hoist motor, which reaches speeds of up to 228m per minute. This allows high productivity and efficiency, as loads are moved very quickly. In addition, this engine has a high-capacity cable drum (1,280m of rope) manufactured by Lebus, so that the crane can permanently work with double trolley and full capacity of 18t. The 21LC290 started with the construction of the core structure of the MahaNakhon tower in September 2013 and completed it only 20 months later, in April 2015. Delivered with Bouygues-Thai’s corporate orange colour, it is still working tirelessly 16 hours per day, from 6am to 10pm, to meet the demanding schedule of the project.

NEWS ANALYSIS SEP TEMBER 201 5

Counting the Cost of fuel

The UAe hAs deregUlATed The PrICe of dIesel And PeTrol – whAT effeCT wIll ThIs hAve on The ConsTrUCTIon seCTor? DaviD Thompson InvesTIgATes

he hot news topic of the month has been the fuel deregulation in the United Arab Emirates. The Ministry of Energy announced it was removing fuel subsidies from August 1, 2015, sparking debate and speculation throughout the construction industry. While petrol prices are set to rise slightly because of the deregulation, the cost of diesel is expected to fall, ministry officials have said. According to Matar Al Nyadi, undersecretary of the Ministry of Energy and chairman of the Gasoline and Diesel Prices Committee, on the 28th of each month the committee will announce the fuel prices for the following month. Commenting on the news, an International Monetary Fund official told Reuters that the UAE will only save a modest amount of money from reforms to its fuel price system in 2015. However, the savings are anticipated to rise sharply in coming years. Zeine Zeidane, adviser in the IMF’s Middle East and Central Asia department, spoke to reporters on a conference call and estimated that the UAE’s reform would save approximately $500 million by the end of 2015, or a little over 0.1% of gross domestic product − but annual savings are expected to rise sharply over the medium-term to around 0.6% of GDP. Behind the UAE’s new pricing formula is the government’s strategy to eliminate the need to spend growing amounts of money to keep domestic fuel prices low while global oil prices climb. The IMF now claims that low global oil prices will push the UAE’s consolidated state budget into a deficit of about 2.9% of GDP this year, its first deficit since 2009. While deregulation is also aimed at encouraging individuals to adopt fuel-efficient vehicles, including electric and hybrid cars, and to use public transport, the heavy fuel demands of the construction sector were considered too. “This will ensure that people across the country benefit from lower diesel prices, which would mean lower operating costs for a wide number of vital sectors such as industry, shipping and cargo,” said Al Nyadi, in an interview with The National. CMME caught up with industry professionals to gauge their opinions on the matter. Saif Khan, sales manager in the Equipment Business Unit at GENAVCO Dubai, says fuel deregulation will help the construction sector and is a positive move for the construction machinery industry. “Primarily all the equipment runs on diesel, and when the diesel price goes down, it will benefit the contractors, so in a way I would say the benefit is passed on to the contractors.” Khan acknowledges that there will be a price impact for consumers using petrol vehicles, but speculates that if the suppliers and trucks carrying consumer goods are

17 diesel. Costs of consumer goods could come down because transportation costs will fall, so there are potential gains for the public there. Keith Lupton, vice president of regional sales at World Wide Auctioneers (WWA) in Dubai, echoes these thoughts, suggesting that while the new fuel prices will not adversely impact the construction industry or WWA directly, they will negatively affect the pockets of normal drivers on the road. The UAE’s Ministry of Economy reiterated in a statement that the new hike in petrol prices will not have an adverse impact or lead to any increase in the price of consumer goods. Additionally, Al Nyadi, said in a statement that he hoped the reduction of diesel prices would serve as a catalyst for the economy. “This will enhance the competitiveness of the national economy, reduce the prices of commodities and eventually reflect positively on the economy,” Asif Khan, GM at GENAVCO, shares similar sentiments. He suggests that due to the government abolishing the subsidy and generating greater revenue from fuel, they may be able to spend some of that money elsewhere in the economy, perhaps where it is needed more. Speaking directly of the impact on the construction machinery sector, he says, “In the construction sector, all [vehicles] consume diesel. In the logistics industry too, they are all diesel. Very rarely will you find a petrol engine.” Therefore, as Khan indicates, there is likely to be a positive impact for many in the industry. Other companies operating in the construction sector in the UAE will remain completely unaffected by the new prices, as Mark Oberholzer, PMV manager at ALEC, explains. “I’m sure it does [impact], but I don’t get involved with the fuel. We rent those [machines] out on a dry rate, so we don’t give them any fuel − the sites will predominantly pay for the fuel.” Credit ratings agency Moody’s made a statement regarding the new fuel price measures, saying that they are credit-positive for the UAE, as they will bolster government finances dented by the downturn in global oil prices. In the meantime, other Gulf countries battling a fiscal deficit due to the plunge in oil prices are likely to follow the UAE in cutting fuel subsidies and reducing the impact on their economies.

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HEAVY HITTERS SEP TEMBER 201 5

Top of Their game Well-knoWn in the Middle east for its coMpaction equipMent for soil and asphalt, BoMaG is noW focused on expandinG its presence in the liGht equipMent sector, explain Michael GrüneWald, vice president of sales, and dieter pfaff, sales director for Middle east & africa

OMAG is one of the best-known names in road construction equipment. Its soil compaction range includes the BW 332 Deep Impact, a 32t roller which is the most powerful single drum in the world, with a maximum 3m compaction lift thickness for rock fill, gravel and sand. Beyond compactors for soil and asphalt, the range includes pavers and machines for cold milling, recycling and stabilisation. But with the focus in the Middle East being on adding to the region’s infrastructure rather than maintaining it, the demand is squarely on the side of machines used for new road projects. BOMAG is part of the French-owned Fayat Group, which has various business units such as Marini that cater to the full lifecycle of a road and offers the widest range of machines in the industry, says Michael Grünewald, BOMAG’s vice president of sales. The total range extends from soil compaction machines to asphalt production, paving, compacting asphalt with rollers and road maintenance, including spreaders and sealers. ”The philosophy of the Fayat Group is certainly to offer to our customers the widest range of construction equipment with regards to road construction.”

The total BOMAG range extends from soil compaction machines to asphalt production, paving, compacting asphalt with rollers and road maintenance, including spreaders and sealers.

HEAVY HITTERS SEP TEMBER 201 5

Developments in recent years include additional investment in the asphalt area, with many improvements in the asphalt compaction range. “We see ourselves as having technological leadership in our business,” he says. In the compaction business, accuracy is the key to productivity and quality. BOMAG offers various compaction measurement systems, such as Variocontrol for soil compactors and Asphalt Manager for asphalt work. The firm has developed these technologies in-house, says Grünewald, contributing to its know-how. A differentiator on the product technology side is the development of technology which can adjust rollers’ compaction performance based on output from the measurement system. Competitors offer measurement systems, Grünewald says, but BOMAG’s integrated system adjusts the action of the compactor in real time based on the measured values. “That is unique, and no

one else can offer that.” That technology has been used on key projects in the Gulf, including the new Muscat Airport, says Dieter Pfaff, BOMAG’s sales director for the Middle East and Africa. There, the compactors were linked to GPS in order to document the compaction values for the entire site. “That is an enormous advantage, not only for the contractor but also for the consultants who are responsible for securing the quality of work.” From a contractor perspective, using a compaction measurement system allows them to prove the quality level achieved across a project, and indemnifies them against any future warranty claim or concern about quality. It is currently common in Europe, says Grünewald. “All major European contractors are using this technology, and now it’s moving towards the emerging markets, which are using it as well.” This takes on extra significance on a public-private partnership (PPP) project, where it is important for the

BOMAG has unrivalled application support and inhouse expertise for complicated and large-scale projects, says Dieter Pfaff, sales director for Middle East and Africa.

“We are the leading company because we have really developed these measuring devices by ourselves, so we have this know-how in-house”

company operating the asset to have an assurance of quality, since otherwise they have to pay the maintenance cost. Use of on-board compaction measurement systems is growing across the industry, driven in part by consultants’ requirements, says Pfaff. “In the Gulf region, many of the big projects are controlled by international consultants, and they are often bringing this to the market. They are one of the keys to push this forward.” Another of BOMAG’s key differentiators is the high level of application support they offer in the Middle East. Coupled with the performance characteristics of machines such as the Deep Impact, they can offer unmatched capabilities on major jobs, such as the planned Arabian Canal project in Dubai. “They needed contractors able to compact 220,000 cubic metres of soil, and nobody else was able to do that, because nobody else has the technology and the machines. There are unique things we can offer where we differentiate 100 percent from our competitors,” says Pfaff. The Deep Impact was eventually used on the Qatar Pearl, and will be used on the Istanbul Airport project. Comparing themselves with other companies in the road construction business, Pfaff says their focus on developing technologies makes them a leader, and this approach filters down to their standard machines. One example is the lack of grease nipples on their machines, which helps counteract the unreliability of operators when it comes to servicing. “Many of our customers says that this is one of the key arguments for them to go for the BOMAG machine, because this little thing is causing so many problems if not done properly.” Their top-selling single drum rollers in the Middle East are their 10t class machines, the BW 212 and 211. They are a non-CE conformed design, developed to reduce costs but without losing performance or functionality. This modification has been done for the 10t class single drum rollers and tandem rollers, says Pfaff. On the sales side, he says they have a good presence with the heavier machines. “It is never enough, but we are quite happy with what we have achieved with the heavy equipment. But we still have a way to go with the light.” The manufacturer is looking to expand its presence in the light equipment market in the Gulf, where

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HEAVY HITTERS SEP TEMBER 201 5

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its product range includes tampers, single direction vibratory plates and reversible plates, walk-behind single and double drum vibratory rollers, and multi-purpose compactors. In the UAE, they have two dealers, one for heavy and one for light. It’s a model that works well, says Pfaff, because dealerships focused on selling larger heavy equipment place less emphasis on selling light equipment. Dealers that focus on light equipment are more used to pushing smaller machines, and have the right customer contact lists. “We found that this is a much smarter way of marketing.” On the characteristics of the light equipment, Pfaff is unequivocal: “It is basically a quality product, even with features that are not available with competitors – some features are unique.” Most significant of these are the small compaction control instruments on

the machines, which are simple to use, incorporating a light system to allow the operator to see the progress of the compaction. This on-board tech adds only marginally to cost, but quickly brings money back to the contractor because the driver can finish operating once compaction has been achieved, rather than continuing on, which wastes machine and labour productivity and diesel by over-compacting the surface, says Pfaff. “That happens very often without this technology.” It also puts extra hours on the machine, hastening the need for repairs. “This is something which you can avoid with these instruments.” At the INTERMAT show earlier this year in Paris, BOMAG displayed a number of its light compaction machines with supersized display interfaces of its compaction measurer, to demonstrate the simplicity of the light notification system. Called

BOMAG has machines that are carefully matched to the requirements of the Middle East, including nonCE conformed designs to lower costs on some of its range.

Economizer, it uses lights to indicate the degree of compaction, from 1 to 10, with a red light indicating over-compaction. The system is very robust, says Pfaff, able to cope with the heat and even the fine dust found in the Middle East, which is a problem for some competitors. The lights are embedded into the machine, meaning they can’t be damaged. Despite the simple notification interface, the technology is sophisticated, and the company has used its measurement technology developed in-house for the larger machines and transferred it to the smaller equipment. This gives them an advantage over light equipment manufacturers that have only bought in the instrumentation technology from third-party providers, says Pfaff. BOMAG has been offering this technology on its larger machines since 1997, so has long experience with it, he notes. While large contractors purchase light equipment, the predominant users are smaller contractors, for use on trenching, landscaping and other works associated with smaller residential projects. Also different from the larger machinery is the number of players in the field, especially in newer markets such as China. “I doubt that anyone knows how big the market for light compaction is,” says Grünewald.

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Fleet management and telematics SEP TEMBER 201 5

As technology continues to infiltrAte construction mAchinery, top mAnufActurers speAk with DaviD Thompson to debAte the growing trend of sending, receiving And storing big dAtA

Better ConneCted

n our modern world, the idea of transferring information via telecommunication devices may not seem so groundbreaking. However, the application of such technology to the construction sector is having a transformative impact both in the Middle East and worldwide. The application of telematics on construction machines is growing exponentially. The technology of gathering information relating to remote objects – such as a fleet of vehicles – via telecommunication devices is allowing contractors to monitor a significant number of specific and targeted aspects of their work. Volvo Construction Equipment has decided to implement telematics as standard on all their general-purpose equipment, including excavators, wheel loaders and articulated haulers, in all the major markets in the Middle East. This means their machines are installed with the hardware direct from the factory. The only thing the customer needs to do is switch it on, says Marnix Reedijk, product manager for telematics at Volvo CE – sales region EMEA. The decision to make a proactive adoption of telematic technology was easy, he says, and the advantages in terms of increased efficiency were clear from day one. “While all the machines are working somewhere in a quarry or a pit, you are in your office. As a decision-maker, you can easily follow all the machines. So if you can see the productivity – work hours, idle times, etc – you don’t have to be out there, you can follow everything and identify key points in your fleet directly from the office and make decisions based on actual data.” Reedijk highlights a specific example in this region, whereby telematic

OEM-supplied telematics systems can result in a quick diagnosis of any problems with a machine, as well as needed preventative maintenance.

technology on board Volvo machinery played a vital role in preventing largescale complications for a customer. In this case, the user had connected one of his wheel loaders to his mobile phone in order to receive live telematic updates. “An error code came to his phone and it was one of his loaders equipped with CareTrack. The indicators said that fuel was contaminated, so he went to the job-site where the machine was working to investigate the problem and he found out that in his fuel tank on the site – and it was a big site with a number of machines working, both Volvo and others – there was water mixed into the fuel.” If you have a little knowledge of machinery, you’ll know that when water contaminates the fuel system, it can cause havoc for a lot of internal machinery components. Reedijk continues: “It is thanks to this alarm – just one single alarm – he managed to stop all the vehicles and change his fuel tank to remove the water.” Because of this signal transmitted from a telematics system on a Volvo machine, the fuel system from that machine was spared damage, as were other vehicles working on that site. “One can only imagine the kind of downtime, production loss and repair costs that were avoided just from that one single alarm. I think it’s an example of where we are today with

telematics, and how much value it has for a customer.” The overarching benefit to the industry of telematic technology is the capability it provides to be proactive, says Isidro Arosemena, manager of Equipment Management Solutions for the Middle East, Africa and Europe at Caterpillar. “Telematics can finally make that jump from being reactive to proactive. That is really why it helps – it is the key aspect of telematics. It really allows you to move from the reactive approach that we have seen in the past in the industry.” Becoming proactive is not only limited to isolated incidents. Telematic technology also has the capability to reinforce total fleet management strategies by providing aggregated data across a full fleet of vehicles. The resulting information provides owners with up-to-the-minute knowledge of entire fleet activities in one centralised interface. This accumulated information can be used to help senior management develop fleet strategy in numerous ways, including increasing productivity, reducing labour costs, controlling fuel costs, improving customer service and increasing fleet safety and security, and all the while reducing operating expenses. Speaking of fleet management, Per Andersson, aftermarket director at Volvo Construction Equipment AB, comments: “When it comes to product

HigHeR edUcatiOn Fleet management and telematics SEP TEMBER 201 5

telemAtics prompts uni courses The popularity of

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planning, customers with a big number of machines can remotely monitor every machine on-site and see if there is a lack of production in a certain area. If he needs to reinforce more machines going there to increase the loading speed, he can. He can monitor how many machines are idling, what kind of times they have, and he can move machines around, and if you look at the cost efficiency for that, you can optimise it. This is hugely appreciated by some of the big customers here.” The growth of telematics is not without its challenges. Encouraging customers to adopt it is a test, according to Arosemena. “Telematics is still a bit strange to them, like what exactly does it mean and what it can do for them.” Fortunately, Caterpillar offers telematics as standard on all global construction and infrastructure machines, which puts the technology in front of customers so they can

Effective use of telematics can also improve the total fleet management strategy by providing aggregate data for the entire vehicle fleet.

experiment and start using the information to really help them in their business operations. As well as original equipment m a n u fa c t u re r (OEM)-supplied telematics systems, there are also third-party suppliers offering competing products. While these are technically competitors, they are viewed as having an important role to play in the market. “There are still a lot of machines out there in the field that are not connected − perhaps at the time they were purchased, it was not standard. In those cases, yes, there are third-party suppliers competing with all of us, with all the OEMs,” comments Arosemena. This third-party competition is currently fragmented, with no single supplier yet standing out as a clear market leader. Arosemena predicts that this will change in time, but not yet. Frequently, customers opt to purchase from a third-party supplier because they

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Fleet management and telematics SEP TEMBER 201 5

have a large mixed fleet. The issue with this, Reedijk explains, is that there is a risk of losing the partnership with the OEM dealer and all the benefits that come with that. This relates to the expert knowledge OEMs have of their machines, in addition to trained technicians who are skilled in handling those machines, both mechanically and out in the field. Samir I. Abdul Hadi, CEO of Sam Tech Middle East, a provider of third-party GPS vehicle tracking solutions, points to growing demand in the region for third-party telematics devices. Demand in the construction sector began with fleet management, as customers needed to know their fuel usage, vehicle temperature, door control and speed control across entire fleets, and from there it grew to different applications. Samir is optimistic about future demand too. “I would say for the UAE and Dubai, in particular, it’s going to be booming. I believe that [third-party] telematics and technology will play a big role in the coming 12 months and for many years to come.” To bridge the gap between OEM telematics and those provided by thirdparty manufacturers, there are two main options available for contractors operating a mixed fleet. The first is to visit multiple websites to manually retrieve data from each manufacturer’s telematics interface before manually entering it into their fleet management programme’s database. This is labourintensive and time-consuming, as it lacks automation. The more efficient but more expensive option entails using an API (Application Programming Interface) to automatically integrate the data from each telematics provider into one centralised database. Ultimately, with more and more customers asking for total fleet solutions, the industry is going to have to respond to demand. Customers want peace of mind – they want a one-stop-shop – and telematics will have to evolve to meet that need, explains Arosemena. OEM and third-party, telematics in fleet management are certainly bringing noticeable benefits to the construction sector. With greater adoption levels and advances in research and development, specific telematics applications will infiltrate more areas of fleet management, offering solutions to a

Telematic technology allows for detailed monitoring of machinery, even on projects in distant or remote locations.

“one can only imagine the kind of downtime, production loss and repair costs that were avoided just from that one single alarm. i think it’s an example of where we are today with telematics, and how much value it has for a customer”

greater number of challenges. From a manufacturer and dealer standpoint, managing all the aggregated data in a more sophisticated way and allowing increased analysis will make the technology more userfriendly. The amount of information that telematics is currently producing is astronomical. Identifying ways to process this information and translate it into practical outcomes is, therefore, essential if telematics is to continue helping customers take their businesses to higher levels.

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SITE VISIT SEP TEMBER 201 5

BM-Volvo produced its first hauler with all-wheel drive in 1966 and has consistently rolled out new generations of models.

Haul tHis!

VolVo CE artiCulatEd haulErs arE known for thEir tough and unCompromising pErformanCE. a Visit to thEir produCtion linE hElps Explain thE strEngth that liEs bEnEath thE yEllow paint

re Volvo Construction Equipment articulated haulers the best in the world? The company itself certainly thinks so. “We are the number one brand in the world,” says Jörgen Sjöstrand, manager of the factory in Braås, Sweden, where the company’s full range of artic haulers are manufactured, including those shipped to the Middle East. History is on Volvo’s side. The forebear to the modern ADT was invented in Braås by LIVAB, who used an agricultural Volvo tractor towing an articulated single-axle body, with the tractor’s power take-off (PTO) used to drive the tipper. Developments which quickly followed included an adapted model which dropped off the tractor’s front axle, giving the distinctive ‘nose’ of the ADT which remains today. BM-Volvo produced its first hauler with all-wheel drive in 1966 (see side box) and has consistently rolled out new generations of models, including in 2007 celebrating

SITE VISIT SEP TEMBER 201 5

GoInG GrEEn

Carbon-nEutral The hauler factory in Braås has the distinction of being the first factory in the construction machinery industry which can claim to be carbonneutral. In large part, this has been achieved through certification via its local utilities company that all its electricity is obtained from renewable sources – including wind, biomass and hydropower – that neither produce harmful emissions nor contribute to the greenhouse effect. Braås’ first step towards carbon neutrality began in 1999, when it commissioned local energy supplier Växjö Energi AB to install a district heating plant, fuelled by wood chips, to provide central heating for its employees and the town’s residents. Braås then joined a Volvo Group initiative in 2007 that saw it switch to green electricity (i.e. generated from renewable sources). These first two initiatives brought the site’s level of CO2 neutrality to 87% in 2008, with the final push to reach 100% beginning in 2012. Staff identified the greatest source of energy consumption as the liquefied petroleum gas (LPG) burners used to heat the rust protection treatment ovens to 60°C. These were systematically replaced with district heating from September 2013. The burners in the component paint shop, which reach temperatures of 120°C, were also altered to electrical heating. In addition, the site’s diesel forklifts were substituted with electric battery models.

40 years and 50,000 models. Today, its range consists of three models: the 30t payload A30, the 35t payload A35 and the largest of the three, the A40, which can carry 40t. In the Middle East and other non-regulated markets, these are F-series, while in the US and Europe and other stringent emission markets it sells the G-series. The only difference between the two series is engine after-treatment to comply with regulations. A tour of the Braås factory gives an insight into why Volvo is so bullish about the quality of its dump trucks. The 45,000sqm factory is notable in that the full production process takes place within its confines, though of course, with major components such as engines and transmissions sourced from nearby Volvo factories. Steel plates arrive at the beginning of the process, and are cut by lasers according to the design plans. Use of laser cutting achieves a number of objectives, including high-accuracy and fewer off-cuts, and also creates notches and grooves, which ensure the plates fit together snugly when welded, and pre-cutting of holes for components to slot into, avoiding the need for drilling and other work further down the production line. The haulers use high-strength 400 Hardox steel for the bodies of the hauler, supplied by local steel major SSAB. 450 Hardox wear plates are also available as an option, for applications such as hauling Norwegian granite, which is highly abrasive. The frame uses ordinary

Jörgen Sjöstrand, manager of Volvo’s factory in Braås, Sweden, where the company’s full range of articulated haulers is manufactured.

steel, since flexibility rather than rigid strength is needed. Perhaps the most important piece of steel on the machine is the hitch, which is supplied fully cast direct from foundries in the UK and France, a solution that ensures maximum robustness, with only minor machining in the factory. Once cut, human workers carry out tack wielding on the steel plates to hold them in position. The plates are then moved into bays, where the remainder – and majority – of welding is carried out by robots. Inspecting the weld seams makes clear the advantage of using robotic welding over manual work, with the long seams along the payload body – which is formed by four major pieces of the Hardox steel – virtually flawless. Human welders can’t consistently manage this level of quality. Follow-up welds in the corners and other hard-to-reach places where the robots can’t work are done by hand. Once assembled, shot-blasting is next. The Braås factory uses stainless steel shot rather than sand, since it is more effective in preparing the surface in order to make the paint adhere and can also be removed using a magnet, unlike sand. Painting takes place in the huge chambers, with the parts emerging covered in an epoxy paint that is almost always Volvo’s distinctive yellow, barring occasional special requests. Once painted, the frames move over to the assembly line where the drive line is installed, from

Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers

SITE VISIT SEP TEMBER 201 5

the Volvo transmission and engines (the engine is based on a Volvo Trucks engine rather than a construction machine) to the cabin and guard-rails, before finally the tyres. Afterwards, each truck is taken on a test run on the adjacent proving ground for more than an hour, with full testing of all quality aspects. Any defects from the production process detected, or any scratches in the paint, can be rectified in the so-called ‘emergency ward’. The whole process takes nine days for a single machine, but eight machines can be produced per day, or forty per week while the factory is running at single shift. Sjöstrand wouldn’t disclose annual production volumes, citing commercial sensitivity, but operating at single shift the factory can produce around 2,000 machines per year. During the boom of 2007-2008 it was operating at double shift and producing a much higher volume, but the appetite for ADTs is quite volatile and sensitive to any downturn in the economy, explains Sjöstrand, since larger projects are typical buyers of the product. It’s also seasonal, with greater demand in the European spring, when

major projects commence earthworks. Volvo’s ADT has proved its worth in the Middle East on a number of projects, notably the Empty Quarter road project carried out by Al Rosan in Saudi Arabia, where 68 were used to haul sand. The machine is ready to work in the region without any special modifications, though it is often equipped with air filters – either cyclonic or an oil bath – to remove dust and sand from the air intake. Cabins can also be fitted with asbestos filters. Tyres are a major cost component across a truck’s life, and Volvo CE haulers can be optioned with a number of tyre brands. For driving on sand, flotation is most important, says Sjöstrand, rather than traction, which causes tyres to dig in. Haulers can’t avail themselves of the tyre pressure control systems found on military-style vehicles, which can lower the pressure automatically while driving on sand, since their payload is constantly varying. With the haulers having a long reputation for toughness, it’s no surprise that they’re a popular choice for contractors and quarries alike.

ArTIculATEd HAulEr

graVEl CharliE The roots of the articulated

included articulated steering,

hauler go back to

large wheels, all-wheel

agricultural trailers, with

drive and differential locks.

the addition of a trailer

year, the BM-Volvo DR 860

patented in 1946 by Swedish

was a revolutionary hauler

firm LIVAB in Braås. The

that laid the foundations

company also cooperated

for many of the features

with Bolinder-Munktell

taken for granted on the

in Eskilstuna, then a

modern machines. This

subsidiary of AB Volvo.

included an oscillating

Once the patent expired

and steered articulated

in 1963, competition

hitch, a bogie design to

intensified. One of the

even out irregularities in

key innovations was to

rough terrain, low ground

remove the front axle of

pressure due to large tyres

the agricultural tractor,

with low inflation, and two-

giving artic haulers the

or four-wheel drive. Used

distinctive pinched nose

predominantly for road

which still exists today.

construction and gravel

Introduced in 1966, the

The 45,000sqm factory is notable in that the full production process takes place within its confines, with major components such as engines and transmissions sourced from nearby Volvo factories.

Launched only the next

with its own drive wheels

and earth haulage, the DR

BM-Volvo DR 631, better

860 and its subsequent

known as Gravel Charlie,

iterations (the 860 series)

was the world’s first series-

were manufactured from

manufactured articulated

1968-86, with a total of

hauler, and a new technical

17,160 units produced.

concept for its time. Features

Source: The Munktell Museum

German manufacturinG SEP TEMBER 201 5

The ImporTance of currency, Brand & repuTaTIon

With the fall in value of the euRo against the usD, CMME exploRes the knock-on effects foR the MiDDle east constRuction sectoR, anD asks inDustRy pRofessionals hoW the cuRRency situation is affecting sales

According to the German Federal Statistics Bureau, exports of German construction equipment and building material machinery grew 45% from 2005 to 2014.

ompetitiveness in the construction machinery sector is certainly a talking point in the region, thanks to the euro falling against the dollar. However, CMME discovers that while the industry’s sales figures are affected by currency fluctuations, this is not the decisive factor. The impact of a weaker euro is certainly being felt in the MENA region, explains Saif Khan, sales manager, GENAVCO, but as he and others describe, the situation is more complex. “Our customers are very educated, they know the euro is weak, so we pass on the benefit to them. Dubai is not like other cities, you will see in most cities they will not reduce the price of equipment – it’s a totally different field here, customers expect that with a weaker currency, benefits will be passed on to them.” Saif Khan is quick to point out another curious factor in the construction sector in this region: “When the currency goes back up, buyers don’t expect you to also increase the price, so it’s a very tricky situation. You have advantages as well as disadvantages, but in general, you know customers are wanting benefits.” The key to managing this situation, he points out, is to find the middle ground. There is going to be a period where suppliers in this region have to reduce margins based on the euro, in order to satisfy the customer. After some time, when the currency is stable and the competition have also adjusted their prices, there is a level playing ground. Margins can then be adjusted to their original position, though typically only on new stock. “We [GENAVCO] have to keep a balance, keep a track on the market and how the competition is behaving, and accordingly we adjust our prices.” Asif Khan, general manager, GENAVCO, takes the opportunity to share his thoughts on the reputation of German manufacturers in the Middle East and the impact of brand reputation on current demand. “Their perception [GENAVCO customers] is that German machines are the best in terms of quality and product support. People believe that Germans will not compromise – Germans by nature are tough. For this reason, I would say by and large, German brands are enjoying the number one position, in terms of the quality and reliability of their product.” Customers tend to appreciate German construction equipment and machinery because they value the product, but also due to the support associated with German manufacturers, claims Asif Khan. Primarily, all of them take their business very seriously and are customer-focused, and as a result customers prefer German-made products. These thoughts are echoed by Kai Friedrich, managing director, Marketing and sales department, Liebherr-Export AG, who points to the fact that Liebherr products have key advantages in the current market, notably technical reliability and durability – especially in the challenging heat, humidity and dust levels of the Middle East. “Our machines have been proven to be very reliable, they are certified, and as a result they are accepted by large global companies, all of which have strict safety requirements.” One of the major competitive advantages of the construction

machinery industry is that German technology is a step ahead of the competition when it comes to safety issues and questions, according to a VDMA statement by Johann Sailer, chairman of the Association and managing partner at Geda-Dechentreiter. This includes the safety of both machines and operators. Furthermore, safety is becoming a decisive purchasing argument among customers all over the world, claims Sailer. This may be why, according to the German Federal Statistics Bureau, exports of German construction equipment and building material machinery grew 45% from 2005 to 2014. However, their statistics also show that in the same period, the German share of world exports in construction equipment and building material machinery fell from 15% to 12%. Despite the present euro situation and the reputation of German machines and equipment in this region, another key factor is affecting sales. Manufacturers are increasingly moving their manufacturing operations to China and India, where labour costs are lower. This is having an additional impact in the region, says Asif Khan. “It’s a small market, and all the major players from the world over are here. Our competitors are from Europe, and some of them are bringing their products here from China and India, locations where currency is also down.” From a buyer’s perspective, with both European and American brands manufacturing their machines and equipment in India and China, buyers in this region are at an advantage, he says, but the profit margins for suppliers are being affected. Asif Khan is keen to point out that the location in which the machinery is manufactured does not have an impact on quality, despite a persistent perception in the market. European and American brands that build in China or India maintain the exact same standards of quality as for products made in their home countries, he says. There are many examples of a European company moving their complete plant operation to China, but keeping everything else the same. “Design, structure, quality control, everything is the same over there,” says Asif Khan. “So the customer doesn’t see or feel any difference in the product;

German manufacturinG SEP TEMBER 201 5

KSA

250,000

200,000

150,000

UAE

100,000

QATAR 50,000 OMAN KUWAIT BAHRAIN 2005

2006

2007

2008

2009

2010

2011

2012

2013

GERMAN MACHINERY EXPORTS (IN EuRO 1,000s)

enVirOnmentaL aWareneSS

coMpaRative aDvantages of geRMan equipMent Environmental awareness is

pursuit include innovative

a rising topic of interest in

construction methods and

the region, with numerous

new drive systems – in

private and government

addition to providing safety

schemes, initiatives and

at work and combining

campaigns aiming to

function and design, cost-

encourage sustainability.

efficiency and new service

Since many German

concepts, all of which are

construction machinery

at the core of their efforts.

companies offer highly

Furthermore, with

efficient equipment,

a growing tendency

they hope to participate

to localise labour

in the growing energy

markets, especially in

cost and environmental

GCC countries, there

awareness drive in Middle

is increasing pressure

East markets. Companies

on employers to

are concentrating on

employ local staff.

developing ways of

With more limitations

using raw materials and

on working permissions

resources more efficiently,

for expats, companies that

in addition to enhancing

can supply automated

quality and automation

and efficient systems to

and facilitating integration

replace manpower will take

in product processes.

advantage of new market

Comparative advantages of

opportunities opening

German equipment in this

up in the near future.

the only difference is the ‘Made in China’ label.” So while the weak euro has had a temporary impact on the price of machinery in the region, there are many instances of popular European models in fact being manufactured in the Far East at a lower cost, says Saif Khan. Customers in the Middle East are savvy though, and still expect the benefits to be passed on to them. Further affecting sales of European machinery is the impression of genuine Chinese brands in the region. While popularity and product quality are improving, some Chinese manufacturers continue to face problems regarding lack of support, lack of understanding of customer needs, and important documentation re q u i re m e n t s , believes Saif Khan. He also makes sure to note that this refers to Chinese products only: “European or American suppliers who are just manufacturing there in China give equally good support,” he emphasises. Looking to the future, Kai Friedrich speaks of the new challenges facing German manufacturers in their objective to convey advantages in terms of equipment design, electronics and maintenance solutions – all the advantages are related to cost, in light of the weaker euro at present and the rise of Chinese and Indian manufacturers. Liebherr has experienced “positive development, especially in the first half of 2015”, according to Friedrich, who explains that market figures indicate substantial growth in equipment sales, and dealers and subsidiaries are also

2014

SOURCE: VDMA

seeing progress in sales and expansion. In fact, market figures since the 2009 recession show that in the Middle East, the number of Liebherr machines exported to the region has continuously increased. Friedrich adds that in the first six months of this year, 200 machines were brought into the region. This indicates that despite ongoing geopolitical turbulence here, there remains a very positive attitude and expectation for German models. Upcoming projects in the region such as Expo 2020 in Dubai and the 2022 World Cup in Qatar are seen as key events in the construction calendar for German equipment to be further used. Sailer noted in a recent statement that some construction equipment suppliers have already begun participating in these projects, especially those that supply road, tunnel or building construction machinery. With German engineering, durability and safety in high demand, coupled with high service standards from suppliers and manufacturers and quick access to spare parts, there is an optimistic outlook for German construction products in this region, regardless of their manufacturing location. While the fall in value of the euro against the dollar may have an impact on sales, progress remains strong. Suppliers may adjust their prices where necessary to meet the needs of the customer, and competition from the Far East will persist, but industry professionals are confident in the strength of German quality and reputation – a position strengthened by the region’s big projects on the horizon.

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MAN Truck & Bus looks back to 100 years of construction truck manufacturing. From the 1922 traction vehicle belonging to the Guttehoffnungshütte to the latest MAN TGS tipper truck we have evolved from 45hp to 540hp and from 4.5tonnes payload to 35tonnes. Driven to make efficiency ever more efficient and clients ever more satisfied, we’ve been thinking ahead of the curve for 100 years. It’s what we’ve always done, and what we’ll always do. www.man-middleeast.com

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se d TOP 10: U RY M ACHINe ON TIPs I Ns P e C T I

44_NeW ReLeAses The latest releases from the world of construction machinery.

ow need to kn What you buy. before you

52_UNdeR THe HAMMeR Exploring the used machinery and equipment market in the region.

56_BUILdINg BRIdges Terex Superlift 3800 lattice boom crawler crane at work in Versailles, France.

NEW RELEASES SEP TEMBER 201 5

A new 250-tonne mobile crAne Why get it? The mosT powerful 5-axle mobile crane in The world Liebherr has unveiled a new 250t mobile crane which it says is the most powerful mobile crane on five axles on the market. In addition to a multifunctional folding jib, a 50m fixed jib is also available; and the Liebherr innovations VarioBase and ECOmode mean that crane operators can use the new LTM 1250-5.1 with even more safety and efficiency. The LTM 1250-5.1 is the successor to the LTM 1220-5.2, and boasts an increased load capacity compared to its predecessor by around 15-20%, while the telescopic boom has remained at the same length of 60m. With

lattice extensions the maximum hook height has been increased by a massive 9m to 110m. Liebherr has a particularly wide and variable range of lattice jibs for the new LTM 1250-5.1. The 12.2-22m folding jib can be extended up to 36m with 7m sections. The folding jib is attached with a 0°, 22.5° or 45° inclination. As an option the folding jib can be supplied with a hydraulic adjustment system, which allows it to luff with a full load between 0° and 45°. The adapter section for the folding jib is used as a 5.4m erection jib. The pivot point for the folding jib can be raised using up to two straight 7m lattice sections acting as telescopic boom extensions. These sections and the folding jib extensions can also be used on the Liebherr LTM 12005.1 and LTM 1220-5.2 mobile cranes. This is a major benefit for crane operators that use these crane models in their fleet. Liebherr’s time-tested chassis technology has led to a six-cylinder Liebherr diesel

engine in the undercarriage which develops 400kW /544 bhp and torque of 2,516Nm, and the power is transferred to the crane’s axles by the 12-speed ZF-AS-Tronic gearbox. An innovative single-engine concept is used on the LTM 1250-5.1, with the superstructure being powered by a mechanical shaft; while ECOmode minimises both fuel consumption and noise emissions when operating the crane superstructure.

SPECIFICATIONS

lTm 1250-5.1 Telescopic boom length: 60m Maximum hook height: 110m Jib extended up to: 36m Engine: Six-cylinder diesel 400 kW /544 bhp Torque: 2,516Nm Gearbox: 12-speed ZF-AS-Tronic

new KAlmAr reAchstAcKers Why get it? a 45T uniT whose special driveline can save as much as 40% on fuel consumpTion

PotAin luffer sAves sPAce And cost Why get it? The mcr 160 offers a 2.4T jib-end capaciTy Manitowoc Cranes has introduced the new MCR 160 luffing jib crane which can be equipped with up to 50m of boom. One of its biggest strengths is that it can be assembled on both 1.6m-wide and 2m-wide mast sections, making it suitable for a wider range of projects. The end result is a crane with excellent lift capacity as well as great flexibility. Manitowoc have engineered the crane to offer maximum versatility in both internal and external climbing configurations. Adding to the crane’s flexibility is the choice of winches: the standard 60 LVF 25 winch; a 45kW rated hoist that can lift a 2.5t load at speeds of up to 88m/min; or the more powerful 75 LVF 25 Optima, a 55kW rated hoist that can lift the same 2.5t load at speeds of up to 95m/min. SPECIFICATIONS

mcr 160 Choice of winches: 60 LVF – 45kW – 75 LVF 25 Optima Rope capacity: 895m Lift speed: up to 128m/min with 75kW hoist Maximum rope capacity: 1,270m Maximum lift: 10t

Kalmar and Volvo Penta, working with Dana Rexroth Transmission Systems, have developed the ultra-efficient new driveline for the latest 45t Gloria Reachstacker. The announcement came following two years on the project, using a combination of hydrostatic and mechanical drives, both proven technologies. The Kalmar K-Motion drivetrain is an efficient new transmission that can reduce fuel consumption by 40% and, with lower rpm and maximum revs, lower noise by up to six decibels. A reduction in engine size has led to a more efficient transmission, and smarter software means that instead of using an 11L Volvo Penta engine, Kalmar was able to use a D8. The lowerdisplacement engine further contributes to decreased fuel consumption, and by working closely with Kalmar, Volvo Penta was able to configure an engine specially to match the Gloria’s needs.

“Today, the focus is on building a complete system with components that work in harmony for maximum efficiency, rather than just throwing disparate parts together. Volvo Penta is a big name in engines and one of our valued and trusted partners, and we’re very pleased with the joint solution we’ve created, together with Dana Rexroth.” said Stefan Johansson, sales and marketing director of Kalmar Reachstackers. The team has fine-tuned the application to optimise fuel consumption and drivability, with the application of new technology, such as the Dana Rexroth hydro-mechanical variable transmission, requiring harmonisation between subsystems to achieve performance and fuel-saving targets at the vehicle level. Kalmar displayed the new K-Motion or the first time at TOC Europe, in Rotterdam in June. SPECIFICATIONS

45T Gloria reachsTacker Engine: Volvo Penta D8 Capacity: 45t Reduced fuel consumption: 40% Lowers noise by up to six decibels A more efficient transmission Smarter software

NEW RELEASES SEP TEMBER 201 5

hAulAge roAd cAt grAder Why get it? boosTed fuel economy and increase sTrucTural durabiliTy The CAT 16M3 motor grader is designed for building and maintaining mine haulage roads, essential to keeping trucks running efficiently and at the lowest cost per tonne of material moved. Furthermore, the 16M3 features greater power and is available in configurations to meet engine emissions standards worldwide. A new ECO mode is designed to improve fuel economy by optimising engine speed to 1,900rpm in working gears when possible, with no compromise in performance. A new engine control system feature provides consistent power to the ground by continually altering the engine to compensate for power losses to the cooling fan. The new 16M3 sports the OK-to-Start system, which automatically checks the engine coolant, engine oil and hydraulic oil levels when the key is turned to the on position. The operator is alerted if these levels and the trans-axle oil level during operation drop too low.

Featuring the CAT direct-drive, powershift transmission, with eight forward and six reverse gears, and incorporating the Cat Advanced Productivity Electronic Control Strategy (APECS) system, the 16M3 is designed for smooth gear changes and increased productivity. The 16M3 also boasts close to 15% greater dynamic braking torque at the rear tandems, achieved by enlarging both the brake disc diameter and the piston area. In the cab, there is a new full-color touch-screen display with an intuitive menu structure, allowing the operator to monitor machine performance, set new parameters to suit operating situations and access service information for initial troubleshooting. Advanced Control joysticks (a retrofit option) enhance control of the Cat Grade Control Cross Slope or AccuGrade systems. SPECIFICATIONS

16m3 moTor Grader Fast-fill fuel systems: up to 567.8L/min Moldboard width: 4.9m Average operating weight: 32,411kg Engine: Cat C13 ACERT Net power range: 290-348hp (216-259kW) Transmission: Direct drive, power shift Operating weight: 32,411kg

linK-belt widens telecrAwler offering Why get it? Tcc-1400 boasTs The lonGesT boom lenGTh in This TonnaGe class

Link-Belt has released the TCC-1400, widening their telescopic crawler offering. Link-Belt remains focused on its original telescopic crawler crane design criteria of building a robust, simple and reliable telescopic crawler crane for a wide range of users. A sixsection power, pin and latch boom measures 59.5m and incorporates Teflon wear pucks to eliminate the need for boom grease. Additionally, the boom is fabricated from ultra-high-strength steel and an on-board three-piece bi-fold lattice fly will give the crane a maximum tip height of 78.9m. New features include an electronic inclinometer, and an auto idle feature with selectable ranges for improved fuel economy, as well as automatically reducing engine RPMs to idle speeds if no function is used for ten seconds. SPECIFICATIONS

Tcc-1400 Main boom: 59.5m Tilting cab Camera system: Rear view and winches Telematics: Real time Upper counterweight: 22,679.6kg

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Determine your neeDs First of all, be very clear about what machine or equipment you are going to need. What is the correct size and weight? Do you know what features are essential for your project?

meet the seller First things first: meet the seller and ask for all equipment details. Remember to ask for necessary repairs and when the last service was done. If a machine is offered 20% below the normal market price or even cheaper, there must be something wrong â&#x20AC;&#x201C; ask for a full history.

: n e T Top y r e n i h c a m Used s p i T n o i T c e insp structural checks Look for cracks, welds or plates. Examine the underside of the machine too, looking for puncture holes or any other damage caused by debris.

check e the engin and ine starting Check eng oke sm e it ality. Wh exhaust qu that en ft o d ing oil, an rn u b ck s n ea m n. Deep bla ntaminatio co er and at w rn s o mean gs are w n piston rin ea d m an n ss ca smoke ify power lo ced to rect on la si p is re e sm b must k the tran tage. Chec oil as n w o el si is fu t preven the transm bly ensure f si o vi ts d ar an p e if any engages Chances ar . p r u o d at lle ic fi d in level is , this is an e are seized roperly p â&#x20AC;&#x2122;t n the machin id d ous owner vi re p e th that ine, and it f the mach take care o her sign of furt could be a . misuse

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06 obtain an inspection report The best way to verify the quality of machinery, and to gain information about the reliability and reputation of a supplier, is to use a service provider that specialises in used machinery inspections. There are companies around the world that provide this service, and with an inspection report in your hand you could be able to discuss a price discount.

service support One of your most important points to consider is where the next available store for parts and servicing is. You can buy many non-OEM parts easily, but for specific spare parts you will need an OEM supplier.

cab conDition If the cab interior is neat, clean and tidy, it is highly likely the unit has also been well looked-after. You want to verify that all lights – including blinkers, safety lights and flashers – are intact and in full working order. Check the windows and mirrors, and make sure there’s no cracks or missing panes. Sit in the seat and work all the adjustments. Finally, turn on the machine and check all the gauges to determine if everything is functioning correctly.

examine D t yres an wheels s to watch veral thing se e ar f e er Th heels, all o tyres and w h it w ur r yo fo e t ou ards. Tak safety haz e b n ghly. u ca ro h whic them tho and check t ec aring te sp e in time to ld indicat dewall cou si look e s, th re n u o A ripple tyre press k ec h C . er ine rior lin r bolts, exam of the inte l lug nuts o ee ’t h n w o d g n d si n for mis l tyres. A tread on al d ’s an re es ty h scratc res – one spect all ty er forget to in ean the oth does not m n io it r d o n co ape, the same sh tyres are in ze. si e m e sa are even th

if you can’t test it – stay away If you can’t test your new machine before you purchase it, side with caution and stay away, even if the price is very low. When you do test machines that you aren’t overly familiar with, or when you test a different model of machine, take your time, have the seller explain all the controls and make sure you try every speed and movement.

leaks Be sure to check thoroughly for any leaks, especially from the engine compartment and the axles. Leaks need to be repaired promptly to ensure the safe and continued operation of the machine.

Used Machinery SEP TEMBER 201 5

Under the hammer Used machinery and eqUipment is increasingly popUlar on constrUction projects in the middle east, bUt contractors are caUtioUs to invest in the cUrrent market, opting instead for rentals. CMME explores the impact on the Used market and discUsses why brand awareness continUes to trUmp prodUct qUality

luctuations in both price and demand are part of everyday life for used construction machinery dealers in the Middle East. While mega-projects throughout the region instil a sense of unbounded optimism in the broader construction sector, the used market remains at the mercy of uncertainty and caution on the part of the contractor. “The demand for used equipment is not like last year,” says Amjad Atieh, Equipment Rental and Used manager at Mohamed Abdulrahman Al-Bahar LLC, speaking of the UAE. “Prices for used equipment are going down, almost by 10% compared to the same period of last year.” Fortunately, dealers are well versed in planning and preparing for the ups and downs of life as a used construction machinery and equipment supplier, especially as the cycle can be very short. Indeed, most take it in their stride as a simple fact of life in this business, as highlighted by Keith Lupton, vice president – Regional Sales at World Wide Auctioneers Ltd.

“Depression can come in very quickly, but so can boom; certainly, within three months you can go from doom and gloom to everybody smiling.” The ever-changing rise and fall of demand and price is the consequence of myriad unavoidable factors. Try as they might to predict future market trends, veterans of the sector concede this is often a secret known only to the hand of the market. However, while predicting the future of the market may be out of reach, dealers take great care to understand and analyse the variables that have an impact on their trade. Regionally, the used construction

machinery market is also affected by oil prices, says Atieh. Buyer confidence is a fragile thing, and when the price of oil falls, buyers become cautious and very conservative when it comes to investing in machines. Market instability also plays a key role in confidence; while current project demand may exist, the confidence to purchase may be over-ruled by the desire to protect liquid assets from an uncertain future market. This particular fear results in a loss of sales, usually to the benefit of the rental market. “To a certain extent, both ourselves, the traders and our rival auctioneers, we’re

Used equipment can offer functionality and fast acquisition for a lower price, but prices can fluctuate according to the demands of the market.

always to a certain extent optimistic – one has to be, especially in the UAE, because you can have a disastrous July and a fantastic September. I’ve been through that type of thing, and luckily it is a quick turnaround of fortunes,” says Lupton. Looking specifically at the broad range of sectors within the construction industry, there is also a continuously shifting trend that dictates sales success in the used market. For example, at present most projects are focused on infrastructure and road construction in the UAE, and because of this trend the machines in greater demand are

those needed to complete jobs in those specific sectors. As Lupton points out, the mining sector in UAE has come to a virtual standstill, rendering sales of specific mining machinery and equipment almost non-existent. Of course, as the market changes, the demand for machines will surely change too. “When we talk about the machines currently in demand, the main focus is on large excavators and mediumsize wheel loaders, mainly the 966 or equivalent, while there is demand for Track-Type Tractors and (bulldozers), specifically the CAT D9R and D8R

Used Machinery SEP TEMBER 201 5

models,” says Atieh. One aspect of the used machinery and equipment market that rarely changes is brand recognition. Once the decision to make a purchase has been made, auctioneers and dealers alike see a positive trend in favour of trusted and reputable product brands. This has led to a curious market situation where prospective buyers favour a well-known brand with greater wear and tear over a lesser-known brand in better condition. One explanation for this behaviour is very closely linked to what Atieh claims are the three main advantages to buying used rather than new: budget, price and availability. “A lower budget requires cheaper machinery,” Lupton points out. “Investing in used machines means the big initial depreciation is already

inTernaTiOnaL reach

aUctions and bUyers Used machinery auctions have a surprisingly international reach. Many buyers travel across national

absorbed by the original owner, so when the new owner doesn’t have any more jobs or just needs to get rid of the fleet, it is much easier for them to minimise losses when selling used machines. “Ultimately, better brands do hold their prices, and the perception that a solid brand is easier to sell upon completion of the project at hand, regardless of condition, further contributes to the favourable brand behaviour demonstrated throughout the region,” continues Lupton. The benefits of used equipment, once the customer decides to buy, are numerous. As Atieh points out, if you need a machine just for a few hours a day, you know a used machine can do the job, so for customers who only need 500 to 1,000 hours annually, used machines can accomplish their goals more than satisfactorily. Depending on circumstances, there really may be no need to invest in new machines at all. Lupton further develops this argument: “Certainly, with a competent workshop, a serious contractor can consider buying second-hand and leave it to his workshop to keep it going.”

Brand is one of the most important determiners of price; buyers are more likely to trust wellknown brands.

He does not hold with the idea that performance and reliability deteriorate, saying this is not a justifiable reason to avoid used equipment. “If your need is greater than six months, you should go and buy, rather than rent; but equally, if it’s only for nine months, it seems a bit pointless buying a brand-new machine when you can get one at auction at 25-30% cheaper.” Availability is also a key issue ¬– customers are buying used machines because they are ready, whereas new machines can take two to three months just to become available, he notes. While fluctuations in both price and demand are part of everyday life for used construction machinery dealers in the Middle East, their passion and optimism for their trade is evident in every word spoken on the topic. With the right resources in place and strategies on the table, there is little doubt that the men and women who flourish in this sector will achieve their goals and continue to supply the Middle East market with the used machines and equipment it needs to keep the wheels turning and the projects growing.

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because prices fluctuate significantly from country to country.

“Depression can come in very quickly, but so can boom; certainly, within three months you can go from doom and gloom to everybody smiling”

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THE LAST WORD SEP TEMBER 201 5

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