PMV Qatar Trends, challenges and opportunities in Qatar’s plant, machinery and vehicles market
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A number of PMV dealers are providing training services to equipment operators as part of their sales services in Qatar. (Image FotoArabia)
Qatar’s PMV sector outlook remains bullish amid increased competition With the growth in Qatar’s construction industry, the Plant, Machinery, Vehicles (PMV) sector is bound to find more opportunities. These prospects, however, are not free of challenges. In discussion with some representatives from heavy equipment companies operating in Qatar, we understand some threats and opportunities in the PMV sector here.
While issues of labour shortage and construction inflation continue, Qatar’s PMV sector has so far managed to take up the challenge head-on. There might have been a few instances of delays in procuring some of the critical equipment for construction projects, but in general, Qatar has not lagged behind when it comes to the availability of the latest technology and equipment.
Trends
Explaining the demand side of products in Qatar’s PMV sector, Ayman Ahmed, managing director of Jaidah Heavy Equipment (JHE), explains, “Due to the huge infrastructure projects going on in Qatar now, there is a big demand for heavy equipment and trucks, in addition to all the industrial products required to support the construction companies to execute these projects.” Like anywhere in the world, contractors in Qatar have the option of renting equipment if they wish to avoid investment. However, as Ahmed points out, a major trend in the market here is in favour of buying PMV supplies. However, many international companies working on new projects prefer to rent for two or three
PMV QATAR 2015 | 3
Because of Qatar’s dusty and intense climatic conditions, heavy equipment here require extra maintentance, explain PMV experts.
According to Ayman Ahmed, managing director of Jaidah Heavy Equipment, the rental business in PMV sector will grow to a great deal during the coming years due to the higher demand for machinery.
years, through which they can control their operational costs during the projects. That said, Ahmed expects that “due to the higher demand for machinery, the rental business will grow a great deal during the coming years.”
Challenges
With the winning bid for the 2022 World Cup, and the fast-tracked development entailing it, Qatar has attracted contractors and suppliers from all over the world, and PMV manufacturers are not exception. With increased awareness about the growth prospects of the country’s construction sector, a number of heavy equipment manufacturers have recently entered the market. The influx of more manufacturers and suppliers, however, also work as a major challenge for the existing companies who now are faced with more competition. “The competition in Qatar is very tough. All suppliers want to benefit from the huge development of the country, especially with the high demand now,” says Ahmed. While PMV products are designed and, manufactured keeping in mind the fact that they are used on or between sites for extended periods, the hot and dusty climatic conditions in the Gulf Cooperation Council are more severe, thereby requiring extra maintenance of heavy equipment. Another key challenge is associated with the awareness level of skilled staff operating the heavy equipment. However, a number of manufacturers and dealers in the market are now addressing this issue by training the operators in advanced technologies that are constantly being introduced in the sector. Explaining Konecranes’ training programme, Saku Aspelin, product manager, Consultation Services at Konecranes, says, “Konecranes runs a programme called Crane Operator Training, needed to ensure safe operation and good performance of cranes. This is even more important when operating cranes equipped with smart features, for example, a positioning system. Konecranes also provides vast amount of consultation services for customers with specific technical problems or concerns.”
The number of key construction equipment such as cranes, loaders and diggers are expected to increase considering the growing number and pace of construction and infrastructure projects here. Pictured here is one of Doha Metro’s sites. (Image Avi Viljoen/Flickr)
Opportunities
While competition is an ongoing challenge for companies dealing in Qatar’s PMV sector, it also raises the bar for the market as manufacturers and suppliers continue to introduce innovative solutions in order to gain competitive edge over other players. Volvo, for instance, has brought in its exclusive I-Shift transmission technology, which is very efficient when maneuvering at low speed. I-Shift offers smooth gear changing, always selecting the right gear. This enables the driver to focus on driving and keeping both
While opportunities and challenges for PMV companies are here to stay, increasing competition in the future will continue to open new avenues for Qatar’s construction market.
hands on the steering wheel. Another latest solution that the company has made available to Qatar is a web-based Dynafleet telematic system, which allows customers to track their vehicle’s position at any time throughout the year. Explaining some strategies JHE has adopted to deal with intense competition, Ahmed explains, “To differentiate us in this market, Jaidah offers full solutions to its customers, including a wide range of high-quality brands, and after-sales services.” Ahmed adds that the company offers different in-house financing facilities, 24x7 service calls to assist, stock availability of machines and parts, and a highly-trained sales team and skilled technicians who they heavily invest in, as they are their main assets. “We offer full repair and maintenance contracts to our customers, also preventive maintenance contracts, we have our main workshop and parts outlet in the industrial area, in addition to our branch in Al Khor. We have more than 65,000 line items in our parts centre, offering 90 percent availability of parts to our customers and balance in maximum 72 hours. Our field service team can reach to all our customers’ sites any time they need our support,” adds Ahmed While opportunities and challenges for PMV companies are here to stay, increasing competition in the future will continue to open new avenues for Qatar’s construction market to embrace worldclass technologies and latest equipment introduced worldwide.
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Man Truck and Bus’ bus manufacturing unit in Ankara, Turkey.
MAN awarded for sustainability Significantly improved results and again listed in Dow Jones Sustainability World and Europe Indices
Manufacturing unit of Man Truck and Bus in Munich, Germany. In this year’s Dow Jones Sustainability Indices (DJSI), the sustainability rating agency RobecoSAM again ranked Man Truck and Bus in the Dow Jones Sustainability World and Europe Indices. Man improved in all three main categories: economic (+4 points), environmental (+5 points) and social matters (+8 points). Compared with the previous year, the company scored five more points, achieving an overall result of 85 out of 100. This means that Man still is the only German company to be represented in the Indices in the “Machinery and Electrical Equipment” industry. The Group showed the most noticeable improvements in “Talent Attraction” (+20), “Human Resources Development” (+17), “Customer Relationship Management” (+16), and “Supply Chain Management” (+12). More than 100 mechanical engineering companies were judged on their performance in economic, ecological, and social sustainability. From an operational standpoint, Man has also been deeply involved in improving safety standards in the region as part of its commitment to sustainability. Based on Man’s global experience and research, Man is raising awareness on the positive impact of both behavioural and technological measures to significantly enhance safety on public roads in the region. Some of the leading technologies that Man vehicles have in terms of improving safety include Electronic Stability Program (ESP, Adaptive Cruise Control, Lane Guard System as well as ProfiDrive training seminars where drivers learn predictive driving techniques such as how to recognise dangerous situations, calculate the optimum stopping distance and evade obstacles that suddenly emerge.
New heavy-duty overhead crane introduced in the Middle East The latest built-up trolley crane, known as Uniton, is a robust overhead crane. An outcome of Konecranes’ research, it is a rugged construction concept suitable for process duty applications in a variety of industries, such as steel, mining, automotive, or in shipyards.
The new crane, which has been developed in close cooperation between Konecranes customers and Konecranes industry experts and engineers, is available in a wide range of load options, hoisting speeds, lifting heights, trolley gauges, frame sizes, and capacities from 6.3 to 160 tonnes. The machine is easy to use for crane operators, due to the availability of variable frequency drives on all motions (bridge, trolley, and hoist). This provides a smoother lifting experience and helps the operator to keep the lifted load steady, while a reduction in wear on mechanical components can be seen compared to contractor-controlled cranes. Its ease of use is further supported by a large variety of pendants and radio control devices as well as with a new patented hook safety latch, which holds the latch open to avoid pinching of fingers.
6 | PMV QATAR 2015
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Contractors by value of work underway in Qatar (USD million) 6,000 5,000 4,000 3,000 2,000
Source: MEED
Number of cranes in Doha compared to Dubai and Abu Dhabi Dec 2014 475 353 279
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26.5%
Growth rate of the number of cranes in Doha in May 2015 compared with December 2014. Doha saw the highest growth in the number of cranes on various construction sites. While Dubai saw a growth of
587
May 2015
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As co Ha n Le bt ig oo ht r on Al Gr ou Ja be p rE ng in ee rin Ke g & nt Co z E ns ng tru in ct eer io in ns g
1,000
251
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, the number of cranes in Abu Dhabi declined by
1.67%
.
Doha Source: Rider Levett Bucknall Crane Index
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Dubai
Abu Dhabi
Heavy equipment
manufacturer Everdigm enters Qatar’s construction market
Through this partnership, Jaidah Heavy Equipment will supply Everdigm’s high quality concrete pumps in Qatar. Jaidah Heavy Equipment division – a subsidiary of the long-established conglomerate Jaidah Group – has announced a dealership agreement with Korean construction equipment manufacturer Everdigm. Under the agreement, Jaidah Group is the sole dealer of Everdigm machines in Qatar, reinforcing Jaidah Group’s position as one of the most trusted providers of construction equipment and industrial products in Qatar. A launch event at Regency Halls announcing the new dealership was attended by Ayman Ahmed, managing director of Jaidah Equipment; Patrick Cheong, managing director for overseas business division of Everdigm, and Paul Go, general manager, Overseas Business Concrete Pumps. Speaking at the launch event, Ahmed said, “Jaidah Group has a history of long-standing relationships with major international manufacturers, making us perfectly suited for to satisfying the high demand for equipment related to Qatar’s construction boom driven by Qatar National Vision 2030. Our dealership agreement with Everdigm will reap rich returns for both parties and enhance our efforts to facilitate further growth in Qatar’s construction industry.” During the past 21 years, Everdigm has been a name synonymous with urban development, a goal that Jaidah Group also shares through a combination of providing high quality products with excellent customer service. Addressing the guests at the occasion, Cheong, commented, “Jaidah has emerged as Qatar’s leading provider of construction equipment and industrial products, making the group a perfect fit for us. We are delighted with this new dealership, and we are looking forward to having a positive impact on the Qatar’s growth by delivering our high quality products.” The dealership agreement, which both companies dub a “long-term strategic partnership”, leverages the complementary strengths of both companies to provide high quality concrete pumps in Qatar. “At Jaidah Heavy Equipment, we see hard work and determination as key factors for achieving excellence. Our division offers complete post sales solutions for our customers’ convenience, including field service, aftersales maintenance contracts and an excellent availability of parts,” added Ahmed.
Representatives of Jaidah Heavy Equipment and Everdigm at the Everdigm launch event.
Concrete pumps display at Everdigm launch event in Doha.
PMV QATAR 2015 | 9
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