Construction WorX - Issue 1 - January 2013 by Construction Equipment Association

The Voice of the UK Construction Equipment Industry

ISSUE 01 JANUARY 2013

INTERVIEW

8-9

OUT AND ABOUT

10-12

PLANTWORX

14-16

SUPPLIER PROFILE

www.coneq.org.uk

THE PowEr oF AssoCiATion The Construction Equipment Association represents the UK’s construction equipment industry. A powerful industry demands a powerful voice to promote its members’ interests world-wide. For equipment manufacturers, importers and distributors, component and accessory suppliers, and service providers – the CEA is a valuable partner. Call us today for further information on how CEA membership can help your business.

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NETWORKING

CONTENTS 4

F ROM TH E PRE SID E NT

President Nick Ground muses on a busy few months

I N T H E LOB B Y

How the CEA will react to the government’s bid for growth

T E C H N I C A L B RIE F

Our tech team look at quick hitch legislation

8-9

T H E I N T E RV IE W

Why JCB’s Yvette Henshall-Bell loves construction plant

1 0 - 1 2 O UT & ABOUT CECE Congress

2013

M E M B E R S’ NE W S

The latest news from our members

05 - 08 February

05 June

P L A N TWORX 1

bCIndia Mumbai, India

Your show is only four months away

11 - 12 February

General Technical Committee meeting TBC

P L A N TWORX 2

General Technical Committee meeting JCB, Rocester

Making the most of your demo area

ROUN D UP

Export or Bust was the theme at the latest International Business Group meeting and the 100,000th machine is CESAR marked

C OM I N G UP

All the exporting help you could need and a list of overseas events

H ARD DATA

Plant sales look set for another tough year but there are bright spots if you know where to look

2 1 N E W M EM B E RS

The CEA’s latest recruits

OV E R THE HORIZON

Moves to head off regulation limiting CO2 emissions from construction plant

M E M B E R S’ TE STIM ONIA LS

What CEA members get by being part of the organisation

11 - 13 February Trade mission to India India

07 March CEA Management Council meeting Caterpillar, Desford

15 - 21 April Bauma Munich, Germany

14 - 16 May PLANTWORX Stoneleigh Park, Warwickshire

15 May CEA AGM Stoneleigh Park, Warwickshire

16 May

Rob and his team look ahead to what 2013 may bring

Plant Theft Police Aware Conference Stoneleigh Park, Warwickshire

June (TBC)

T H E Y E AR A H E A D S U PPLY SID E

Perkins can reduce the time taken to incorporate a new engine from months to days

YOUR S H OUT

Finning’s Neil Dickinson has a message for plant manufacturers about the increasing importance of distributors and dealers

CEA Trade Mission to Brazil Brazil

20 June CEA Management Council meeting Komatsu, Birtley

August/September (TBC) CEA Trade Mission to Mongolia Mongolia

04 September CEA Annual Conference TBC

18 September General Technical Committee meeting TBC

18 - 21 September Bauma Africa Johannesburg, S Africa

15 - 18 October BICES Beijing, China

4 - 5 December General Technical Committee meeting TBC

13 December CEA Management Council TBC

D AT E S F O R YO U R D I A RY

FROM THE PRESIDENT

I hope you like our magazine cover shot of Crossrail - a timely reminder that there are still some major construction projects under way in our country. Hopefully there will be some more “shovel ready” projects started in 2013.

C E A M A N AG E M E N T COUNCIL

It has been a busy few months since our first issue.

President

The 100,000th CESAR-marked machine demonstrated how a proactive trade association can benefit both members and their customers and, in October, our Management Council held a meeting during the CECE Congress, in Berlin.

Nick Ground

This was first time I’ve attended a Council meeting overseas. At the meeting we approved a plan to improve the scope of market related data we provide to our members and agreed to freeze membership subscription rates for this year, subject to prompt payment. The CECE Congress programme focused on the challenges dear to all members’ hearts: how European manufacturers can remain world class in the face of continued financial uncertainty and challenges from other lower cost economies (see report on page 12). There were also excellent networking opportunities with many European CEOs and representatives from Brazil, South Africa, Japan and Indonesia. Put the next Congress in your diary. I attended a breakout session on skills shortages in our industry - a subject debated at our last CEA annual conference. During the debate, it transpired that a large number of the industry leaders present had started their careers on an apprenticeship - as did I. Many in the meeting felt the wide educational grounding provided by their apprenticeship had been a positive reason for their success, despite the more modern emphasis on specialisation in education. Many also felt that there was still too great a gender divide and that much more should be done to encourage girls and women into an engineering career. So it seems the first steps to remaining world class manufacturers may be closer to home than we think.

president.cea@admin.co.uk WWW.CONEQ.ORG.UK

GKD Technik Ltd

1st vice president Yvette Henshall-Bell JCB Sales Ltd

2nd vice president Nigel Baseley Perkins Engine Co Ltd David Redhead BSP International Foundations Ltd Robert Droogleever Caterpillar (UK) Ltd Faiz Ahmad Terex Construction James Venerus Komatsu UK Ltd Keith Dolbear TriMark Europe Ltd Mike Hawkins CNH Paul Ross Ricardo Plc Rory Keogh Gomaco International Ltd Val Ledden Volvo Construction Equipment Ltd

IN THE LOBBY CEA CHIEF EXECUTIVE ROB OLIVER LAYS OUT ITS STRATEGY FOR 2013 This year the CEA is tasked to renew its efforts to impress upon government that our industry deserves due attention. In 2012 we received some encouragement as several members who showed their continued commitment to UK manufacturing received awards from the Regional Growth Fund.

NO STONE UNTURNED

Now in the tradition of Conservative governments in need of some vision on enterprise and business policy, the current administration has turned to Michael Heseltine - or now The Rt Hon the Lord Heseltine of Thenford CH. Margaret Thatcher gave him the brief to sort out the economic and social problems of Britain’s riot-torn cities, John Major put him in charge of cutting the red tape - and more recently our current PM gave him a blank canvas to put forward his views on restoring economic growth. The result was a report entitled ‘No Stone Unturned in Pursuit of Growth’. Its central recommendations are: • Establish a Prime Minister-led National Growth Council - ensuring all parts of government play their part to support growth. • A very significant devolution of funding from central government to Local Economic Partnerships (LEPs). • A clear statement by government of its priorities to guide Local Economic Partnerships in the preparation of strategic plans for their local economies. • For central government, a clear policy for each sector of the economy conceived in conjunction with industry and academia. The plea for the devolvement of funds to be channelled through LEPs points to the effective reinstatement of the Regional Development Agencies, abolished by the Cameron administration. The last point does, however, reconfirm the need for some official view of economic sectors - even if this does not amount to an all-embracing strategy. For the construction equipment sector this strategic forum is the Automotive Council. Unfortunately, its deliberations have tended to emphasise the role and importance of the motor vehicle industry rather than the construction equipment sector. There is something of a sting in the tail as Lord Heseltine returns to his familiar theme of needing to reduce the number of trade associations interfacing with government. The report calls for lead associations to be nominated in each area of economic activity. The CEA recognises that if there are too many association voices aimed at government, often making conflicting points, then the effect of lobbying can be lost or diluted. Yet, if opinions are aggregated to too great a degree, then the resultant lowest common denominator bland view may hold sway. The CEA strategy remains to work with a number of complementary groupings depending on our concerns - the so called “variable geometry” of lobbying. For example, we work with the Agricultural Engineers Association on common issues such as machine theft. We also support other interest groups, for instance those calling for greater investment in the physical infrastructure, and participate in the EEF fora representing engineering interests. Its latest effort is to re-launch its Manufacturing Alliance initiative which brings together the chief executives and policy experts of a host of trade associations representing manufacturing interests. So work is afoot to sharpen and inform the CEA’s message to government in 2013.

Rob Oliver Chief Executive Construction Equipment Association ISSUE 01 JANUARY 2013 - VOLUME 22

“Work is afoot to sharpen and inform the CEA’s message to government in 2013.” Rob Oliver

TECHNIC AL BRIEF QUICK COUPLER STANDARDS

The CEA has been following the developments in quick couplers closely since the issue of the safety of semi-automatic couplers was first raised in 2007.Yes, it really was five years ago! Since then a great deal has been done to increase the safety of couplers and to replace the legacy products in service. Many major contractors took action to ensure that only newer ‘double locking’ couplers were used on their projects. One of the outcomes of the safety problems was that a project was started in ISO to develop an International Standard for the safety requirements for quick couplers. Currently there is no such standard, only a rather light-weight mention of them in the European standard, EN 474-1. The ISO project has been running for four years now and has had active membership from manufacturers and safety authorities from Europe, the USA and New Zealand. Malcolm Kent, the CEA’s senior technical consultant, has been at every meeting of the working group to ensure that the requirements in the new standard are reasonable, but at the most recent meeting there were some troubling proposals on the table. One of the proposals would, in effect, have made it obligatory to install sensors in quick couplers in order to enable an automatic system to detect if the bucket was in the correct place on the coupler and that the engagement mechanism was fully actuated. This proposal caused

strong arguments among many in the meeting on the grounds that it did not reflect the state of the art and that there were no such couplers on the market at present. The other proposal was that for manual couplers the operator should be expected to do one action only, just in case he/she omitted to do the others. The argument around this was about the importance of operators taking responsibility for correct use, and that there are many machine operations which require more than one action in order to be safe. After a robust discussion it was clear that these two proposals did not have support in the working group and the final text will not include them. The standard is now pretty much finalised, and after voting and editing should be published later this year. While all this has been going on, quick couplers manufacturers have quietly gone about developing ever-safer couplers, most of which already comply with the expected requirements of the standard. ISSUE 01 JANUARY 2013 - VOLUME 22

Manufacturers have been developing ever-safer couplers most of which comply with the expected requirements

The standard is now pretty much finalised... and should be published later this year. All of this demonstrates the importance of being involved in the standardising process, either with manufacturers taking part themselves or with CEA officers getting involved. The CEA benefits from a very active membership in the standards field and this is going to be particularly crucial in the coming few years as the European standards for earth-moving machinery are being updated.

I N T E RV I E W - Y V E T T E H E N S H A L L - B E L L CEA PRESIDENT DESIGNATE YVETTE HENSHALL-BELL WON’T NOW BE TAKING OVER THE HOT SEAT, SO WHAT WOULD SHE HAVE DONE IF SHE HAD?

Were it not for an 11th hour promotion, JCB’s UK and Ireland sales director Yvette Henshall-Bell would have become the CEA’s first female president in 70 years. Her promotion, which takes effect in January, sees Yvette become JCB’s managing director for international sales which includes Europe, the Middle East, Africa and Russia. Rather than miss the opportunity completely, Construction WorX caught up with Yvette to ask what she would have done if she had become CEA president.

She says: “The CEA does a lot of good work and I would have loved to have become president and would have put my all into it, but with my new position that wasn’t going to be possible. However, with my new focus the international business group meetings will be particularly interesting so I will attend them when I can - you don’t get rid of me that easily.”

creates employment, it creates wealth; it is not just about building machines because those machines make things happen,” Yvette says. “Construction is at the very core of shaping our society and our machines help build the schools and hospitals, the roads and railways, the houses and factories that make us what we are.

Before moving to JCB 12 years ago Yvette trained and worked as a chemical engineer but got irritated at being repeatedly singled out to visitors as ‘a woman chemical engineer’: “I didn’t want to be introduced as one of two women engineers, I wanted to be introduced as one of their best engineers.”

“If I had become president I would have wanted to promote that message to the widest audience. It’s a great story and one that manufacturers, dealers, users and the CEA should shout about and get across to society in general as well as to both national and European politicians.”

So what is there in the construction equipment industry that fascinates a person with so much drive? “Our industry WWW.CONEQ.ORG.UK

Having been a member of the CEA’s management committee for four years, Yvette has already had considerable influence in shaping the work of the

association but, as always, there is more to be done. “We must always think about what can help our members and our industry grow and thrive. When I think about how the CEA could help me to do my job, I think I would like to be able to drill down into the figures CECE and the CEA produce. These show machine sales by country and type and I would like to look at specific sectors such as the waste industry, the utilities and the like. If we can analyse the figures to determine trend information and the dynamics of these industries, what’s growing and what’s shrinking, it would help us as manufacturers and suppliers to decide how to best use our resources. I’m sure it would be useful to other members too and while it would be good to have this information on an international level, let’s at least get it for the UK.” Two of the CEA’s recent moves which come in for particular praise are its involvement in the CESAR scheme and the setting up of the forthcoming PLANTWORX exhibition. “I’m passionate about machine security and the work the CEA has done on CESAR has been fantastic - there were so many hoops to jump through. Security features such as CESAR really have made a difference and in a few years’ time we will look back and think ‘why did we ever use common keys?’”

“By increasing contact with other associations and end users we can collectively ensure we are doing the right things.” Yvette Henshall-Bell

She is also looking ahead to PLANTWORX in May. “It’s great to have a show that goes back to its roots and provides an opportunity for manufacturers to show their machines digging and in action. It is also a superb opportunity to

It is the service and support customers receive that sell the second, third and fourth machines.

meet customers and could also be useful if the CEA could pull together a users’ forum or something similar.” One area in which she would like to see more activity is active collaboration with other associations such as those representing the rental sector, the mining and quarrying industry, OPERC (the Offhighway Plant and Equipment Research Centre) and others as well as with end users. “Let’s work with them on areas such as safety - ‘boxing rings’ on excavators and walkways on dozers - or consult on minimum stability requirements on minis or even security equipment to prevent plant being stolen. We need to get together to come up with a common solution otherwise if we all work in isolation we will each end up with a different standard. By increasing contact with other associations and end users we can collectively ensure we are doing the right things and I think the CEA can help drive that. Hopefully we can define common requirements which will help members devise their basic machine specifications and help customers by minimising the amount of work they had to do to fulfil any individual requirements.” For these reasons Yvette is very excited about the association opening its membership up to machine distributors and dealers (see Your Shout page 26). “As a salesperson that’s right where I’m at: they are talking to customers directly at ‘the coal face’. While the dealers’ agendas are slightly different to those of the manufacturers, there are a lot of areas we can work together to help them deliver.” And she is in no doubt about just how important dealers are to the manufacturers and that their influence will ISSUE 01 JANUARY 2013 - VOLUME 22

Yvette and Commander Steve Rodhouse from New Scotland Yard’s Serious Crime and Operations Directorate at the celebration of the 100,000th CESAR marked machine

grow as machines become increasingly sophisticated to comply with tighter emissions, safety and noise legislation in Europe and other developed countries: “A manufacturer can develop a fantastic new machine and the sales people can convince the customer to buy one - but it is the service and support they receive that will sell the second, third, fourth and so on. That’s why I believe opening CEA membership to distributors is so important and I’m sorry I won’t be so closely involved to see how it all works out.”

The CEA’s Management Council congratulates Yvette on her promotion and wish her the best on her new position.

OUT AND ABOUT - AT THE CECE CONGRESS CONSTRUCTION EQUIPMENT COMES UNDER SCRUTINY OVER LOCAL AIR QUALITY

Hinrich Helms from IFEU outlines the case against construction equipment Breakout sessions at the CECE Congress in Berlin provided some interesting insights into the thinking of various local authorities on air quality in big cities and also on the shortage of engineers. At the session on the impact of construction machinery on air quality, there were speakers from different cities as well as from industry. Hinrich Helms from the German research institute IFEU said that while transport is currently the major contributor to diesel particulate emissions its emissions are expected to reduce faster than those from the mobile machinery sector. Furthermore, computer modelling indicates that as the new emission stages come into effect, the dominant machine size in terms of emissions will be the smallest - machines less than 36kW. Machines less than 19kW are currently unregulated for emissions in Europe. Martin Gassner of Zurich Department of Health explained that all machinery over 18kW must have a particulate filter fitted for working in the city in order to reduce the emissions of fine particles. The point was made that retrofitting diesel particulate filters can bring about a faster reduction in particulate emissions than waiting for fleet renewals. Some might argue that requiring investment in the legacy fleet deters investment in new machines which have benefits beyond lower emissions. Martin Lutz explained that in Berlin action was taken because of a problem

Emissions from transport are expected to reduce faster than those from the mobile machinery sector. with dangerous pollutants and a technical solution was available: filters. This was done first for buses, then a low-emission zone for vehicles was introduced. Following that cruise boats were retrofitted and now the focus is to extend to construction machinery. The problem of variable quality retrofit installations was raised from the floor with examples that obstructed the operator’s vision or left dangerously hot surfaces exposed. Also from the floor came the question as to why Berlin, Zurich, London and other cities have the resources to develop independent schemes when the European Commission does not have the staff to progress the next round of engine emission legislation to benefit the whole of the EU. A question that appeared far harder to answer. Another session looked at the ‘Brain Drain’ from engineering. A panel of speakers, all enthusiastic engineers, reported problems in finding enough young people to take on skilled engineering roles and urged WWW.CONEQ.ORG.UK

Martin Gassner: All machinery over 18kW working in Zurich must have a particulate filter companies to do more to encourage young people to become engineers. The session quickly became an open floor discussion, and equally as fast there was recognition of the need for companies and industries to develop their own workforces. One particularly encouraging example was provided by managing director of the construction division of the VDMA, Joachim Schmidt, who said Bauma has donated the entire floor space of hall B0 to the VDMA’s THINK BIG! programme. The purpose is to get young people interested in the construction and building materials machinery industries and VDMA is arranging to bring bus loads of school students to see what goes on in industry. There will be live demonstrations of machinery and machine maintenance for them to observe. Visiting Bauma? See how attractive our industry can be for youngsters in hall B0.

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OUT AND ABOUT - AT THE CECE CONGRESS CAN EUROPE STILL COMPETE IN THE MANUFACTURE OF CONSTRUCTION EQUIPMENT

L to R: Moderator and former CECE president Michel van der Linden, Peter Howe, Oliver Kleine and Amaia Susperregui

At the CECE Congress a panel debated whether there are advantages to manufacturing construction equipment in Europe or if high wages and a plethora of regulations are pricing us out of the market. While accepting it is better to produce where the cost is the lowest, Komatsu Europe chairman Peter Howe said: “European buyers want a lot of customisation for regulation and customer preference. To do that you need local experts and you can’t have that without local production and some level of local R&D.” He added, however, that the situation is different when considering building new factories. “If only cost mattered then we in Europe don’t have too bright a future,” said academic Oliver Kleine who has been studying Germany’s manufacturing sector. “But what we see is mass customisation so it is about resource and material efficiency, delivering product on-time and in a flexible manner. In Germany our companies are

not price leaders but they are performance and service leaders. “To improve and stay competitive requires competencies beyond product design and technologies such as strategic excellence - the ability to manage organisational change such as in a downturn. We have these competencies and must protect and develop them further and if we do, then I’m quite optimistic that we will remain competitive,” he said. From the floor a delegate said labour accounts for six or seven percent of the machine production cost. Moving production to China might shave 2% off the labour cost but it would add 30% to quality control costs. Peter agreed, saying: “The cost of production in China is not that much cheaper, the big savings are the fixed costs such as building a factory.” According to Oliver, around 10% of German manufacturers have relocated part WWW.CONEQ.ORG.UK

of their production abroad. “If this is done for cost reasons, then almost one third has been unsuccessful and has been brought back to Germany.

“What is needed is ‘breathing factories’ where capacity can go up and down by 50%.” Wacker Neuson “Where relocation is done for customer vicinity or market reasons then these don’t come back,” he added. Delegate David Phillips from Off-Highway Research said: “It’s not just about the initial purchase price - it is about trusting the brand, the product quality and the service and parts back-up. Chinese exports are strongest where the customer expectations are lowest. In Europe it’s about the total cost of the machine over the seven or eight years and customers want the peace of mind.

MEMBERS’ NEWS RDS Technology acquired by US company Digi-Star LLC RDS Technology has been acquired by US company Digi-Star LLC, a manufacturer of electronic weighing systems, providing measuring solutions to optimise agricultural performance. Grant Ihrke, Digi-Star’s president and CEO says: “RDS and Digi-Star have numerous synergies with electronics and sensors for the agricultural and industrial markets that will complement each other’s customers. Both companies will benefit from the expanded product lines and solutions for their international customers.”

“(We will) now be able to offer fully integrated solutions.”

“It is about trusting the brand, the products quality and the service and parts back-up.”

Richard Danby, Managing Director, RDS Technology

David Phillips, Managing Director, Off-Highway Research

“It will take the Chinese a generation to catch up because of the perception of their quality and probably the only way they will do it is to purchase Western manufacturers.” There was unanimity in the view that the EU was doing little if anything to encourage manufacturing and Peter believes it places barriers to new investment - the biggest of which is labour flexibility. Amaia Susperregui, CEO of Spanish crane manufacturer JASO said the current Spanish government had changed employment laws so now if a company can show why it needs reduce the headcount, it’s much easier to do so. A delegate from Wacker Neuson said: “What is needed is ‘breathing factories’ where capacity can go up and down by 50% and an educated and flexible workforce.” On which everybody agreed.

Like Digi-Star, RDS provides customised solutions to the agriculture machinery industry, as well as for the construction sector. Digi-Star and RDS engineers will work closely with manufacturing customers and distributors to provide economic solutions that meet their technical requirements and improve the profitability and machinery utilisation for the end user. Richard Danby, RDS Technology’s managing director said: “This combination of two leading companies in the precision measurement industry will now be able to offer fully integrated solutions for those progressive companies looking to bring the type of equipment interfaces that will optimise productivity.” “We are confident in the continued growth of the agricultural products and process control industries. This combination of experienced management teams and strong position in the markets they serve should position both Digi-Star and RDS as a leading global precision measurement company,” said Malcolm (Mac) Moore, Digi-Star chairman. RDS management and operations will continue to be based at Stroud, UK. www.rdstec.com ISSUE 01 JANUARY 2013 - VOLUME 22

Yanmar signs Man United global partnership deal Yanmar has announced a three-year global partnership with Manchester United Football Club. As a global partner, Yanmar hopes to extend its long-standing association with Japanese football to the UK and other global markets. The company has long-established links with the world’s most popular sport, even going as far as establishing its own club in Japan, and has been active in supporting talented young footballers in Asia. Takehito Yamaoka, chairman and president of Yanmar, said: “Since establishing its own team in Japan back in 1957, Yanmar has been championing the sporting ethos football creates, such as hard work, determination and excitement. Many of these traits are still the core values of Yanmar today. “With Manchester United’s popularity and presence in Asia and the world, Yanmar is confident that this partnership will promote the company’s global presence and activities. Yanmar would like to extend its gratitude to Manchester United for the opportunity to be one of its official global partners and to align ourselves with the biggest club in the world.” United’s commercial director Richard Arnold said: “Like Manchester United, Yanmar is steeped in history, this year celebrating a centenary of creating ground-breaking state-ofthe-art technology in its field. With 659 million followers, United has a huge global audience and through our alliance we hope to introduce Yanmar and its expertise to some of our key markets. In return, Yanmar will help us in our desire to engage with our nearly four million Japanese followers.” www.yanmar.com

PLANTWORX PLANTWORX, the newest construction equipment exhibition in the calendar, is now just four-months away (14 - 16 May). The idea came from a group of manufacturers, including CEA member companies, Amman, Bomag, JCB, Manitou, Merlo, Thwaites and Volvo, who approached the CEA with an idea for a new ‘back to basics’ exhibition, which alternates each year with the Hillhead Quarry show. After much hard work and determination the new biennial PLANTWORX exhibition became a reality - a show ‘for the industry by the industry’. Alan Batty, managing director Bomag (GB) says: “Bomag has supported the idea of PLANTWORX from the beginning. Leading manufacturers need good, well attended and innovative exhibitions to promote new products, services and processes to the market. There is a lot of talk about the need to stimulate the economy at the moment and I encourage everyone involved in the construction market to visit the show with an open mind to see what is on offer.” PLANTWORX will span more than 100,000m2 at Stoneleigh Park in Warwickshire, host more live demo arenas than at any other UK show and has an exhibitor list that reads like a who’s who in the construction equipment industry. As this issue of Construction WorX closed for press the show was 77% sold with 157 confirmed exhibitors and only 2% of the Dig Zone remains available. The visitor campaign is now in full swing, editorials and PLANTWORX advertisements are appearing across the trade press both in printed issues and online. The show is also active on social networking sites including Twitter, Facebook and LinkedIn, where excitement is building amongst members and followers. Preregistration for the event has started and

now is the time for exhibitors to start encouraging their customers to visit the show. Exhibitors can also help drive visitor traffic by putting a PLANTWORX link on their company’s website and ordering personal invite ‘tickets’ for their customers - details are in the Exhibitor Manual. The exhibitor ‘Tool Box’ on the show website allows exhibitors to upload press releases, product news and images. This area will be searchable by potential visitors looking for new products and services in order to decide if they should take time out to make the journey to Stoneleigh. PLANTWORX’s marketing team undertook some research to determine what attracts visitors to a construction equipment show: 87% said a wide choice of equipment suppliers was important, 74% wanted to speak to suppliers about key issues and 62% wanted to buy equipment. Other key reasons for visiting included seeing something new (83%) and 70% wanted to see machine demonstrations. With a diverse list of exhibitors already committed to the show, the vast amount

PLANTWORX 14 – 16 May 2013, Stoneleigh Park, Warwickshire, UK. Visit www.plantworx.co.uk for all the latest news, including exhibitor list, stand space booking forms, accommodation and much more.

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of demonstration space available and the hundreds of new products to be displayed, PLANTWORX has everything to offer visitors. It’s our job as organisers and exhibitors to get them there!

AWA R D S The PLANTWORX Innovation Awards recognise innovative products making an impact in the construction equipment industry. Sponsorship is invited from CEA member companies and associates of PLANTWORX. A big thank you to our award sponsors to date: • Best Operator - Earthmovers Magazine • Best Live Demonstration Machinery Movers Magazine • Security Innovation - Datatag • Safety Innovation - CPA (Construction Plant-hire Association) Categories available for sponsorship: • Green Innovation • Engineering Solution • Efficiency Innovation For details contact Angela Spink on 07807 623640

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SHOW DEMONSTRATIONS

PLANTWORX 2013 is a working exhibition and presenting meaningful demonstrations of the latest machines and attachments provides visitors with the most profitable day away from the site or office. The Dig Zone at PLANTWORX will provide plenty of opportunity to evaluate the newest earthmoving and site equipment in action. Exhibitors with demonstration plots are being actively encouraged to stage realistic displays to show how their products can boost productivity and make sites safer. There will be a particular focus on how the correct selection and use of attachment and instrumentation can improve efficiency. Having visited dozens (if not hundreds) of construction equipment shows, industry journalist Nick Johnson has strong views on what constitutes a worthwhile demonstration: “The key to a successful PLANTWORX will be staging meaningful machine demonstrations. Emphasis needs to be placed on showing new and interesting products working productively in realistic ‘site settings’. “A clear distinction needs to be made between demonstration and visitor evaluation machines in the working areas. Demonstration units should be placed next to the walkways and be in continual operation to gain, and sustain, visitor attention. “By professionally showing how the latest plant and attachments can be used to do more jobs more efficiently, PLANTWORX can better establish itself as an essential, must visit event for a very

wide spectrum of construction industry people,” he says. Retired demonstration operator Tom Aspin says: “It is very important to demonstrate new machines in realistic site conditions that show what the machines can achieve and highlight the changes in the specifications. It’s also important to let visiting operators get ‘hands on’ - you will get a lot of valuable feedback that way.” Ammann Equipment will be demonstrating in the Dig Zone and managing director, Robert Brown, says: “We are in the Dig Zone because we supply excavators and we know that our customers and prospective customers want to see these machines working at something they were designed to do. Everything can look good in a brochure, or sitting polished on the grass, but these machines are designed to work and that is what we want to do with them at PLANTWORX.” To maximise its potential, PLANTWORX needs to attract not only plant owners and operators but also end users such as site managers and supervisors. So the CEA is organising extensive advance publicity about the show and the way it will realistically present many different ways of using machines. However, exhibitors are in the ideal position to promote the show to its core audience - your customers. So help us help you. WWW.CONEQ.ORG.UK

Photographs courtesy of Nick Johnson

“It’s also important to let visiting operators get ‘hands on’- you will get a lot of valuable feedback that way.” Tom Aspin

Working through the PLANTWORX organisers, Nick Johnson will be available to help exhibitors stage demonstrations that best highlight to the visitors the product’s operational and economic benefits. On the final day of the show he will be judging and presenting the ‘Best Live Demonstration’ award to the company that stages the most ‘effective and useful demonstration showing the machinery to its full potential’. Companies running operator challenges or interactive visitor displays will also be considered in this category.

ROUND UP A ROUND UP OF THE CEA’S INTERNATIONAL ACTIVITIES CEA INTERNATIONAL BUSINESS GROUP More than 40 people attended the CEA’s International Business Group (IBG) ‘Export or Bust’ meeting at Perkins Engines in Peterborough. A round table discussion concluded that China and India were slowing (although still buoyant compared with Europe) while Africa, Chile and Colombia are becoming the next ‘best places to be’. Markets varied by product although safety equipment manufacturers reported that developing countries are now starting to embrace the health and safety ethos. Patrick Crawford, chief executive, UK Export Finance (formerly ECGD) explained how exporters can insure risks on business in markets not covered by commercial finance houses. He highlighted changes in UK Export Finance which now covers all types of goods or services, and a new form of short-term credit insurance (EXIP). There are also new support products (contract bonds, export working capital and foreign exchange credit as well as Letters of Credit Guarantee) being delivered through banks. In ‘Opening Doors for Your Company’ Perkins’ marketing director Nigel Baseley presented his view on the benefits of

CEA trade missions. He noted that even for organisations like Perkins, the CEA can facilitate access to companies it could not contact alone. Trevor Barton of the Russo-British Chamber of Commerce and Rory Keogh, MD at Gomaco International, outlined a compelling case for exporting to Russia. While not an easy market to penetrate and service, when done successfully and with the right in-market support it can lead to excellent sales opportunities. Edward Barker, the head of the Commercial and Economic Development Department at the Foreign Office, highlighted the range of government schemes on offer to UK businesses to encourage manufacturers to export (see box). Note: IBG’s quarterly meetings are open to all members with discussions conducted in accordance with the CEA Corporate Compliance Policy and relevant competition and antitrust laws. Presentations are in the member’s section of the CEA web site.

HOW UK TRADE & INVESTMENT CAN HELP YOU • Passport to Export - matched funding export training • Export Marketing Research Scheme (EMRS) • Overseas Market Introduction Service (OMIS) • Export Communications Review (ECR) • Tradeshow Access Programme (TAP) grants for exhibitions • Business opportunities via the UKTI web portal • High Value Opportunities (HVOs) • Aid-funded business information • Gateway to Global Growth (for experienced exporters) • Open to Export • Venture Capital Unit • Commercial Diplomacy Fund (via the CEA) Visit www.ukti.gov.uk or ask the CEA for details

100,000TH CESAR MARKED MACHINE At a ceremony hosted at JCB to celebrate the 100,000th CESAR registered machine, the Plant and Agricultural National Intelligence Unit (PANIU) announced that plant theft has halved since 2008. The CESAR scheme, which the CEA promotes, has had a dramatic effect on reducing plant theft according to detective constable Ian Elliott. He said: “Of 100,000 CESAR registered machines, only 607 have been stolen and 167 of those have been recovered.” This compares with a recovery rate of around 8% for non-marked machines. Kevin Howells, managing director of Datatag ID which provides the technology behind CESAR, indicated that Italy, Holland, Sweden, Poland, Germany and North America are considering introducing similar schemes. DC Elliott, who has just retired from the Met Police, had some harsh criticism for plant manufacturers and importers that don’t CESAR register machines: “To me it demonstrated they don’t really care about their customers.” ISSUE 01 JANUARY 2013 - VOLUME 22

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COMING UP EXPORTING - WHAT’S STOPPING YOU?

CEA DISPLAY PODS AND PACKAGES The CEA offers two display options at many international exhibitions where exhibition space is sold or there isn’t the budget for a stand: Display PODS - your own mini-stand with table, chairs, graphics panel and brochure distribution Or Display Package - use of communal facilities, a graphics panel and brochure distribution.

The British Government aims to get another 100,000 British manufacturers exporting and to double UK exports to £1 trillion a year by 2020. It is looking to trade associations such as the CEA to help it achieve this target.

accommodation and visas as well as running networking receptions to introduce you to buyers and contacts. On our trade missions you will meet real buyers - from senior people in major manufacturing companies to end users.

While around 75% of UK construction equipment is exported, much of this is OEMs exporting high value finished equipment. So what’s stopping the SMEs from exporting?

As part of a government supported mission, the CEA’s global network can open doors that remain shut to solo visitors. Perkins marking director Nigel Baseley says participating in CEA trade missions to Brazil and China gave them direct access to people in companies they had previously failed to reach despite years of trying.

SMEs relying on the UK and near European markets risk facing declining business. They can’t afford to ignore the massive overseas manufacturing sector and increasing demand for construction equipment in developing markets. At the CEA we have been taking UK manufacturers to exhibitions and on trade missions for more than 30 years. We must be doing something right as well established exporters return again and again. Our international programme has around six events a year in markets as diverse as the USA, Europe, China, India, Brazil and even Mongolia and Turkmenistan. Having previously visited these markets we know the opportunities and pitfalls and have local contacts on the ground. We provide a fully fitted turn-key stand for exhibitions and assist with freight,

By joining CEA at an exhibition or trade mission you get prior access to a wealth of market knowledge as we scope out new markets to produce reports on opportunities and key players. The market reports on Brazil, India, Algeria, Mongolia and Turkmenistan together with a ‘Channels to Market’ report for the USA are on the CEA web site as is the ‘CEA Exporters’ Handbook’ - invaluable information for even the most experienced exporter. So this is an invitation to join us at an upcoming CEA event listed right - pick your market, book your ticket and prepare to boost your sales!

ISSUE 01 JANUARY 2013 - VOLUME 22

Packages start from £299 (ex-VAT) for CEA members and include use of the CEA hospitality and meeting area, entry into the UK Group brochure and an invitation to networking events. Contact Joanna.oliver@admin.co.uk for details.

CEA INTERNATIONAL PROGRAMME 2013 UK Pavilions bCIndia, Mumbai 5-8 February 2013

Bauma, Munich 15-21 April 2013

BAUMA Africa, Johannesburg 18-21 September 2013

BICES, Beijing October 2013

Conexpo, Las Vegas 4-8 March 2014

Trade Missions India - February 2013 Brazil - June 2013 Mongolia - August/September 2013 China - October 2013

H A R D DATA

CECE Business Barometer

CECE President Johann Sailer is not optimistic about the prospects for 2013

Plant sales depend on construction which in turn relies on people and companies having the confidence to build homes, offices and factories - but the OECD’s latest figures show falling employment levels in many of its 33 member states. Since the financial crises hit, the overall employment level within the OECD countries has fallen by 1.5% to 65.0% - but the picture is mixed with employment levels in North America stable or increasing while in the Euro area it is falling. Employment in the Euro area has now been deteriorating for a year and stands at 63.8%. In Greece employment has plummeted in the last 12 months - down by 4.7% to 51.4%. Spain and Portugal have suffered declines of around 2.5% (to 55.6% and 62.3% respectively) while in Estonia and Luxembourg employment has risen strongly. In the UK, Germany and France employment levels have risen slightly to 69.9%, 72.7% and 63.9% respectively. This relative stability in some economies has contributed towards a 6% increase in output of European construction equipment in 2012, according to CECE. However it warns of a North South divide in the Euro area and highlights weaknesses in markets like China which is expected to record a 25% drop in 2012. Such concerns have seen CECE’s survey of expected order levels for the next six months showing a steep decline (see graph) and prompted it to give a

“Well-performing markets will not grow as fast this year and badly hit economies will recover only very modestly.” Johann Sailer, CECE President pessimistic outlook for the year. With austerity programmes and a general lack of new road projects in most countries, CECE is expecting the only growth areas in machinery sales to come from replacement investments - which is unlikely in Central and Eastern European countries where equipment fleets are young. CECE President Johann Sailer says wellperforming markets will not grow as fast this year and badly hit economies will recover only very modestly. Within Europe demand for earthmoving and road

equipment in the first six months is not expected to match the 28,000 units sold in the first half of 2012. Compaction equipment has been in slightly better shape than earthmoving but growth slowed to a stop at the end of 2012. Sales of light compaction equipment declined in 2012, although there has been growth in the sales of self-propelled rollers while asphalt pavers remain almost unchanged. Even in Europe there are bright spots, such as tower crane sales which increased by between five and 10% last year and demand is still accelerating. Although according to Johann, Southern Europe remains devastated. Demand for concrete equipment is also increasing with CECE recording a 20% growth in the sales of truck mixers, batching plants and mixer systems last year. Here, at least, the prospects for 2013 remain positive.

Off-Highway Research (OHR) suggests plant sales in China may not regain their 2011 level within the next four years which will leave Chinese manufacturers with a 50% over capacity. While looking at fewer machine types than CECE, OHR believes European equipment sales will finish between 7% and 8% lower in 2012 and decline further this year - although worldwide sales are predicted to increase.

WWW.CONEQ.ORG.UK

NEW MEMBERS CABCARE PRODUCTS

ARCGEN HILTA

One of the latest sign ups for the CEA is CabCare Products which provides tailored vandal and demolition guards for all types of construction machinery as well as stone guards and handrails. The company’s plant protection products not only offer peace of mind but lower insurance premiums and there’s less expensive ‘down-time’. “All our products are recommended and fitted by leading machinery manufacturers,” said technical sales director Adrian Grew. “These include other CEA member companies, Caterpillar, Case, Doosan, JCB, Hitachi, Hyundai, Komatsu, New Holland, Takeuchi and Volvo.” www.cabcare.com

ArcGen Hilta is the newest CEA member. The company is best known for supplying on-site power equipment. ArcGen Hilta’s generators, welder generators and lighting towers are a familiar sight on construction sites nationwide. The company also supplies variable message boards, water pumps and pressure washers to a wide range of industries including, construction, rail, petrochemical, traffic management, mining and quarrying, emergency response and event management. ArcGen Hilta is also a seasoned exhibitor and will be exhibiting at the Executive Hire Show in February and PLANTWORX in May. Commercial director Phil Winnington said: “As one of the UK’s leading onsite power equipment manufacturers and suppliers we are proud to join the CEA. As a member of the association we can now showcase our products and latest innovations both in the UK and overseas, which as our export sales grow is increasingly important to us.” www.arcgenhilta.com

SCREEN SERVICES (N.E)

MACHINERY MOVERS

Screen Services manufacture and supply vehicle livery and safety decals into the automotive and construction equipment markets.

Machinery Movers magazine has entered the fold of the CEA. The publication has been established in Ireland for more than seven years covering construction machinery and equipment, quarry plant and services. The magazine has recently been relaunched and is now distributed to mainland Britain, together with Northern and Southern Ireland and covers a wide range of industries.

Managing director Jason Charlton said, “What sets us apart is our ability to provide validation of raw material, production process and finished product. Our chosen markets are compliance driven, so we have invested heavily in the latest analytical test equipment to ensure that we can provide testing internally”. “Until now, Screen Services have been the industry’s best kept secret, so we are excited about the prospect of working with the CEA and drawing on their support to change that.” www.screenservices.co.uk

Editor Matt Bailey said, “Although we have increased the coverage to both the UK and Ireland a clear editorial focus will be maintained for each of the specific individual territories. We are looking forward to working with other CEA member companies and PLANTWORX exhibitors. Exciting times lay ahead and Machinery Movers is pleased to be part of it.” www.machinerymovers.ie

EARTHMOVERS MAGAZINE The CEA has another new member from the media world - Earthmovers Magazine - a monthly publication for owners and operators of plant and construction machinery. The clue is in the title - if you manufacture construction, mining and monster machinery, then this mag has it covered. Earthmovers keeps its readers bang up-to-date with the latest developments in machinery with exclusive first drives, buyers’ guides, site visits and fleet profiles, written by team of professional photo-journalists - quality and satisfaction are always guaranteed! www.earthmoversmagazine.co.uk

ISSUE 01 JANUARY 2013 - VOLUME 22

OV E R T H E H O R I Z O N WHAT THE LEGISLATORS HAVE IN MIND AND HOW IT MIGHT AFFECT OUR INDUSTRY In a move designed to get ahead of any legislative proposals instead of reacting to them, a ‘four pillar’ approach to reducing CO2 emissions from construction plant has been put forward. David Bell, chief corporate development officer with JCB, says: “It’s very important that we as an industry don’t appear to be negative and defensive all the time. We are genuinely interested in reducing CO2 emissions but one of our worries is that regulations will do exactly the opposite.” This point is echoed by Wirtgen’s Günter Hähn who highlights the example of recycling asphalt where the recycling plant emits CO2 but reduces or even removes the greenhouse gas emissions associated with producing and transporting virgin material. Caterpillar’s Jack Gehring says that in America the EPA has indicated that it does not intend to regulate greenhouse gas emissions from the marine and nonroad mobile machinery (NRMM) sectors in the short to medium term. Part of its reasoning was that the NRMM accounted for only 4% the USA’s total greenhouse gas emissions and that reducing CO2 emissions would require a much broader approach than just looking at the engine. David says reducing fuel usage is in the machine owner’s interest and therefore in machine manufacturers’ interests, adding: “It should be left to innovation and competition to make these improvements and that means looking at everything and not just the machine.” However, Dr Wolfgang Burget, who is managing director of Liebherr-EMtec, indicated that this may not be the case: “EU legislation sets binding emissions targets for new cars and recently on light duty trucks; there is a high risk that construction equipment will be among the next candidates to get similar legislation.”

The view is emerging that any programme for CO2 reduction has to include all the elements of construction operation: the machine and type of equipment selected, the operation of that equipment and its efficiency. Alternative fuel sources also have an impact on the overall release of CO2 emissions. “What’s the point of having a low emitting machine if the operator sits with the engine running for long periods just to listen to the radio,” questions Wolfgang. The important factor must be the overall emissions produced in completing the job and that is something that has to be worked on with end users and not through looking at the machine in isolation. One solution to reducing CO2 emissions on the jobsite is referred to as the ‘four pillar’ approach (see below). •M achine efficiency - optimisation of the engine, transmission, hydraulics, tyres etc. •P rocess efficiency - selecting the best machine(s) and attachments for the job and the use of the latest worksite technology such as GPS and operator guidance systems.

JCB’s David Bell fears regulations to reduce CO2 will do exactly the opposite. •O perator efficiency - training machine operators and providing enhanced information regarding completing the task with minimum fuel usage. • Alternative fuels - the use of electric and hybrid drives, solar panels and bio fuels. While differences of opinion on how to reduce CO2 emissions still remain, Wolfgang has a message for the European institutions: “Don’t regulate us on something where market forces will already drive us in the right direction.”

MARKET PRESSURE

MACHINE EFFICIENCY

PROCESS EFFICIENCY

OPERATION EFFICIENCY

Optimisation of engine, transmission, hydraulics, tyres etc.

Selecting the best machine or combination of machines for the application. The use of latest technology e.g. GPS.

Training of machine operators and providing enhanced information to minimise fuel used to complete the work.

ALTERNATIVE ENERGY SOURCES Use of biofuels, electric drives, solar panels, hybrid drives etc.

INNOVATION BY ALL MANUFACTURERS RESULTING IN CO2 REDUCTION

WWW.CONEQ.ORG.UK

MEMBERS’ TESTIMONIALS DAN WILSON, NYLACAST’S CONSTRUCTION SECTION LEADER TALKS ABOUT HIS EXPERIENCES WITH THE CEA AND THE COMPANY’S SUCCESS Nylacast operates from its Leicester headquarters where it employs nearly 400 staff. The company specialises in the engineering plastics sector, offering complete engineering polymer solutions to a customer base that stretches from Asia-Pacific through to the North Sea. It supplies bespoke machinery wear parts manufactured from a strong self-lubricating nylon, to a range of industries including construction and the automotive sector. Nylacast is a pioneer in the field of plastics and back in the 70s was the first manufacturer to put lubricant into a polymer. The company says it has maintained that leadership and its R&D department continue to ‘invent’ new products, keeping it one step ahead of its competitors. Engineer Dan Wilson is Nylacast’s construction section leader. As the title suggests, Dan is responsible for the company’s construction, quarrying and mining customers which include Caterpillar, JCB, JLG, Manitou and Terex to name but a few.

“We have been CEA members for some years now.” Dan says. “Our main reason for joining was that the majority of our customers were members - and indeed still are. We discovered that the CEA’s overseas exhibition services were incredibly useful too. As a small independent exhibitor you can become lost and detached at some overseas shows, which makes it a fruitless experience. When exhibiting within the CEA’s UK Pavilion at overseas events you’re looked after every step of the way - being part of the fold certainly works for us as we export over 75% of our products to 35 different countries. “Networking opportunities at the overseas events are also excellent and I can say that we have definitely gained new customers by being members of the CEA,” Dan adds. As well as attending many overseas exhibitions such as Bauma and Intermat, Nylacast will also be exhibiting at the new PLANTWORX exhibition this May.

CONSTRUCTION WORX TALKS TO DAVID WILSON, SENIOR DESIGN ENGINEER AT NC ENGINEERING NC Engineering operates from a 9,500m2 factory in County Armargh, Northern Ireland. The company manufactures a considerable number of products for the agricultural and construction industries, ranging from site dumpers and dump trailers to low loaders, grain trailers and slurry tankers. NC’s business is done through its nationwide dealer network and it exports worldwide to Australia, Belgium, Denmark, USA, Japan, Iceland, Oman, Saudi Arabia, Norway and North America. “Since the market collapse in 2008 we have relentlessly continued with our development programme,” David said. “We joined the CEA in 2008 mainly because of the technical services the association offers relating to implementation of the Machinery Directive. Since then it has been an invaluable source of information. Being part of this organisation helps us get involved in what’s happening with technical legislation allowing NC time to react to any changes.” He adds: “We are currently working with leading engine manufacturers JCB and Kubota and planning for the implementation of the latest stages of emissions legislation, in fact we already have solutions with Diesel Particulate Filters for our dumpers above 3000kg. “Our newest 4.5 tonne payload dumper was launched in July and we expect to launch two further models in 2013. Year on year we have had continued growth and expanded our activities to several EU and other countries around the world.”

Nylacast exhibited at Intermat as part of the CEA’s UK Pavilion ISSUE 01 JANUARY 2013 - VOLUME 22

THE YEAR AHEAD We asked figures in and around the CEA to tell us their predictions for 2013. “It’s difficult to predict anything about 2013 other than it will be a tough year in construction equipment markets. CEA members have shown great tenacity in weathering the economic storms and in seeking new markets and new ways of doing things. However, too much uncertainty remains to predict an upturn in business confidence without which we won’t see significant investment in infrastructure and housing projects. Overseas, we are hoping North America will continue its progress and I expect China to steam ahead with construction projects as the new politburo makes its mark. As to the ultimate fate of the Euro zone - if I knew that I would be playing the money markets!” Rob Oliver, CEA chief executive

DO YOU WANT TO ADVERTISE IN CONSTRUCTION WORX? IF SO, PLEASE CONTACT PETER ON 07595 845972 TO ADVERTISE OR FOR EDITORIAL CONTACT COLIN AT COLIN.SOWMAN@WRITEABOUTIT.CO.UK

“This year we will be looking at some of the less obvious geographic markets to help our members’ export activities. I’m anticipating a first scoping visit to Saudi Arabia and assembling a British Group for a trade show in South Africa. Meanwhile, it’s not difficult to predict that Bauma will again be a sell out and the year’s leading international showcase for companies and new products.” Joanna Oliver MBE, CEA director of global programmes “My crystal ball tells me that by the end of May PLANTWORX will have established itself as a valuable new trade show for the UK plant sector. Since starting the project, I have been impressed by the support and input of the major OEMs and the Construction Plant-hire Association whose members represent a significant part of the UK market.” Simon Frere-Cook MBE, Director - PLANTWORX 2013

Tel 01728 684 800 Fax 01728 684 808 e-mail sales@hydrokit.com web www.hydrokit.com

ction sites ru st n o c ll a ss e Acc fety valves sa f o e g n ra r u o with Safety valve for boom cylinder

Safety valve for dipper cylinder

Safety valve for blade cylinder

A CALL FOR

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SUPPLY SIDE - PERKINS ENGINES

Above: At any one time four Perkins engineers work side-by-side with those from the plant manufacturer to integrate the new engine Left: The purpose-built facility at Perkins’ factory in Peterborough

The need to meet ever-tighter engine emissions limits has been absorbing the biggest proportion of plant manufacturers’ R&D for several years as they redesign machines to accept cleaner engines with ever-bigger exhaust systems and cooling requirements. To help OEMs minimise the development time and costs associated with fitting a new engine, Perkins has introduced a collaboration programme called Technology Integration Workshop (TIW). A team of more than 50 dedicated application engineers from Perkins work in the purpose-built facility and at any one time four will work side-by-side with those from the plant manufacturer to overcome the challenges created during the integration of a new engine. TIW was set up in 2008 to help OEMs tackle the technology and engineering issues caused by the introduction of Stage IIIB / Tier 4 Interim emission standards. Since that time more than 500 engine/ machine installations have been completed with 150 customers. On average the TIW process has seen development times cut by up to six months and costs have been also been reduced. The Collaboration Centre at Peterborough is equipped with the latest computer aided design (CAD) software to allow 3D computer modelling of installations, meaning that packaging challenges can be met without any metal being cut. And once the installation solution has been arrived at, application specific work can be carried out to tailor the engine performance to the machine’s duty cycle. This collaborative approach has received a very positive response from OEM as

“In typically two to three days we can achieve together what used to take weeks if not months.” Nick Stephenson, TIW leader, Perkins TIW leader, Nick Stephenson, explains: “For many OEMs, packaging new emissions technologies involves high levels of engineering resource, significant amounts of development time and increased risk. TIW allows them to share our resource, mitigate the risks associated with engine/ machine integration and reduce the time needed to work up final designs.” A typical agenda for a programme would include legislation, a product overview, emissions technology, aftertreatment, engine architecture and performance, and a virtual installation. Before the TIW starts ISSUE 01 JANUARY 2013 - VOLUME 22

a virtual model of the application is created along with an engine design specification. During the meetings the engineers can reposition elements within the engine bay and see how the exhaust aftertreatment, cooling package and any other equipment can be best integrated into the design in a virtual installation. “In typically two to three days we can achieve together what used to take weeks if not months. We do not rely on file exchanges, telephone discussions or websites. We work with the OEM, side by side, to ensure optimal integration between engine and machine,” says Nick. Where appropriate, a prototype engine can be built for installation in the customer’s machine and the applications team can make a site visit to resolve any issues arising from that initial installation. So the OEM has a proven, optimum engine solution before any production parts have been assembled. “With OEMs facing huge competition in the marketplace, any advantage in terms of reducing time to market, optimising engine installations and lessening development costs, can only be beneficial. By getting a better machine as a result of the TIW process, it has to be a win-win situation for the OEM,” adds Nick.

YOUR SHOUT DISTRIBUTORS WILL MOVE CENTRE STAGE “Distributors are at the sharp end of the challenges facing the plant industry. If anybody thinks it’s tough now, I can tell you that it’s going to get tougher over the next 10 years as distributors will have to become much more sophisticated and capable. “As machines become increasingly complex, more and more customers will decide not to invest in buying or maintaining their own equipment and will look to the distributor to provide complete solutions rather than just equipment. This could polarise the market with some customers opting to buy the cheapest machines and keep them for a short period, while others seek to work with the dealer to get the lowest overall whole-life costs. And as dealers we will have to rise to this challenge or risk losing that business. “Increasingly our staff will need to fully understand the customers’ market sectors and be required to provide turnkey solutions involving contractual obligations and complex financial arrangements. These industry experts will need to be able to understand and interpret the data coming from the machines to help customers refine and optimise their businesses. Part of this will see an increase in ongoing operator training because poor operators can waste more fuel and produce more emissions than the manufacturer can save

The Construction Equipment Association (also trading as CEA) is a company registered in England and Wales with company number 04930967. VAT number 243 3858 54.

In the future Neil Dickinson believes distributors will become more important to a manufacturer’s success. with new designs. Again this is likely to fall to the distributors. “So I would urge plant manufacturers not to think of their distributors as just sales conduits and parts suppliers. Start viewing them as the sophisticated operations they need to be: organisations that need to make a sustainable return in order to invest in equipment, staff and training. As manufacturers you can also help to make the sector more interesting so that collectively we can recruit the high quality young people who are needed to look after the new generation of machines now being produced. “My message to manufacturers is simple: You should help distributors make their

Registered Office: 1 Bickenhall Mansions, Bickenhall Street, London, W1U 6BP, UK

Although care has been taken in preparing the information supplied in this publication, the CEA does not and cannot guarantee the accuracy of it. The CEA cannot be held responsible for any errors or omissions and accepts no liability whatsoever for any loss or damage howsoever arising. The views do not necessarily represent those of the CEA.

The secretariat of the CEA, Administration Services Ltd (www.admin.co.uk), has been awarded accreditation by the AMC Institute (www.amcinstitute.org), the global trade association representing the association management industry.

Construction WorX is printed by: pb DIGITAL Limited Contact: Paul Bennett Tel: +44 (0)1489 588292 E-mail: paul.bennett@pbdigital.co.uk www.pbdigital.co.uk

More and more customers will decide not to invest in buying or maintaining their own equipment and will look to the distributor to provide complete solutions. businesses successful because only then can they look after your interests.” Neil Dickinson is managing director of Caterpillar distributor Finning UK and Ireland, part of the Finning Group which has 13,500 employees and also distributes Cat products in Western Canada and parts of South America.

The Construction Equipment Association Airport House, Purley Way Croydon CR0 0XZ United Kingdom Tel: +44 (0)20 8253 4502 Fax: +44 (0)20 8253 4510 E-mail: cea@admin.co.uk www.coneq.org.uk

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The official CESAR construction and agriculture equipment security and registration scheme

Essential for safety! The next time you hire or buy a machine, look out for the distinctive CESAR triangular registration p plate. If thereâ&#x20AC;&#x2122;s no plate, insist on CESAR, the most successful scheme of its type in the world. 10 With over 100,000 pieces of equipment now registered and protected CESAR is a dete ete proven deterrent against theft and an invaluable aid in recovery. CESAR registered mach chines are 4 times less likely to be stolen and 6 time more likely to be machines recover than unregistered machines. CESAR is fitted as standard by many recovered leaddi manufacturers and it can be fitted to any existing piece of equipment, leading la or small, for a one-off cost. large You insist on safety, insist on CESAR for security!

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