Construction WorX - Issue 6 - Spring 2014 by Construction Equipment Association

The Voice of the UK Construction Equipment Industry

ISSUE 06 SPRING 2014

DEMAND FOR QUARRIED AGGREGATE RISES WITH CONSTRUCTION RECOVERY

NEWS

PLANTWORX SCHOOLS AGENDA

6-10

HILLHEAD PREVIEW

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TECHNICAL BRIEF

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CONTENTS 4

F ROM TH E PRE SID E NT

Nick Ground bows out as CEA president

6- 1 0 M E M B E R NE WS The latest news involving CEA members 12 I N TH E L OB B Y Launch of a sector study and changes to NOVA regs 14

I N TE RV I E W – NIGE L B A SE LE Y

The incoming CEA president talks about his ambitions for the Association

16 P L A N TWORX Schools day set to attract youngsters to next year’s show

OV E R TH E HORIZON

Government promises of additional funding for road repair welcomed by industry

H A RD DATA

House building leads the construction recovery, pushing demand for building materials and aggregates

22 - 2 5 H I L L H E AD PRE V IE W We look ahead to this year’s quarry sector exhibition near Buxton

27 - 2 9 C O N E X PO TE C HNOLOGY The latest hybrid and alternative drive systems from this year’s big construction equipment show in the USA

30 - 3 3 TE C H N I C A L BRIE F

2014 18-19 September

10 June Innovation & Engineering Conference and AGM Henry Ford College, Loughborough

24-26 June Hillhead 2014 Buxton, Derbyshire

FEM Congress York, UK

25-28 November Bauma China Shanghai, China

15-18 December bC India Delhi

4 September CEA Autumn Conference One Great George Street, London

Malcolm Kent provides an invaluable update on plans for Stage V emissions regulation implementation

2015

34 - 3 7 I N TE R N ATIONA L & C OMING U P

Intermat Paris, France

Bauma Africa Johannesburg

2-4 June

21-24 October

The CEA’s Conexpo Pavilion was a big success and Joanna Oliver looks forward to a second Mongolian mission

38 YO UR S H OUT JCB Academy chair David Bell tells employers to engage

15-18 September

20-25 April

Plantworx 2015 Bruntingthorpe, Leicestershire

Conexpo Latin America Santiago, Chile

with education to improve school leaver qualifications

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

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

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. Construction WorX is printed by: pb DIGITAL Limited Contact: Paul Bennett Tel: +44 (0)1489 780 781 E-mail: paul.bennett@pbdigital.co.uk www.pbdigital.co.uk

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

FROM THE PRESIDENT C E A M A N AG E M E N T COUNCIL President Nick Ground GKD Technik Ltd

Vice president Nigel Baseley Perkins Engine Co Ltd

Paul Ross Ricardo Plc

Paul Fennessy Volvo Construction Equipment Ltd

James Venerus

Itâ&#x20AC;&#x2122;s been a long time coming, but finally the UK economy merits an honourable mention by the IMF, which has amended its growth forecasts upwards. Now all we have to do is make it happen. Therein lies the challenge. With all industries looking to grow, we will have to compete for skills. The CEA strategy team is well aware of the skills issues facing the construction equipment and general engineering industries and is exploring closer engagement with academia and government to understand how we can encourage young people to join in the excitement of working in our sector. In the last five years it has been generally accepted that the big opportunities for export have been in the BRIC countries. In all of these countries the rate of growth has slowed, so maybe we need to look elsewhere. The CEA is carrying out scoping visits and trade missions to some of the other territories that might be of interest to members. Look out for information in your inbox or elsewhere in the magazine. The value of the pound has increased recently making our exports more expensive. We need to make sure our products are in demand for their quality, innovation, reliability, longevity and return on investment and not just price. Traditionally that is what has differentiated UK construction equipment, but we will need new innovators to work in the sector to maintain that tradition. Which brings me back to where I started. It is now time for me to handover the presidency of the CEA. I have spent three years in the spotlight, my two year term being voluntarily extended when two nominated vice presidents were reshuffled by their employers and were unable to continue with Management Council duties. I must thank the members for their support and engagement, my Management Council colleagues, Rob and Joanna Oliver and the very dedicated secretariat team for their support. At the spring conference and AGM I will be succeeded by Nigel Baseley of Perkins Engines. Nigel, I wish you every success and donâ&#x20AC;&#x2122;t forget to enjoy it.

Komatsu UK Ltd

Rory Keogh Gomaco International Ltd

Mike Hawkins CNH UK Ltd

Keith Dolbear TriMark Europe Ltd

Daniel Thompstone JCB Sales Ltd

Tim Green Caterpillar Inc

Alan Batty Bomag

C O NS TRU C TIO N WO RX IS PRO DU C ED B Y: Editor - Dan Gilkes email: dangilkes1@mac.com CEA/Plantworx correspondent Louise Murphy email: louiseamurphy@AOL.com Design and production Duncan Allen email: duncan.allen@pbdigital.co.uk Advertising - Peter Knott email: peter.knott@admin.co.uk Publishing Co-ordinator Molly Stirling email: molly.stirling@admin.co.uk

Nick Ground CEA President president.cea@admin.co.uk

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MEMBER NEWS Sparks Fly At Great British Weld-Off Sparks were flying and the heat was turned up, as 16 welding students from across the nation battled it out at Morris Site Machinery’s headquarters in Four Ashes, Wolverhampton, to be crowned Great British Weld-Off champion.

As well as the coveted title, the team received a one year dedicated training programme with Morris Site Machinery, a year’s membership of the Welding Institute and an ArcGen Weldmaker 165PS2, worth £3,500.

Four students from Coleg Cambria took home the title. Callum Barnes, Amie Millo, Matthew Green and Adam Griffiths (pictured) competed against three teams at a competitive weld-off, which included a series of challenges to demonstrate creativity, skill and safety awareness, while showcasing their knowledge of the welding industry.

Second place Doncaster College received a Kemppi Inverter Power Source, worth £670, with their Jaguar Land Rover inspired design, whilst third place winners from Neath Port Talbot Group received £250 worth of Speedy engineering products for their patriotic homage to their mining roots.

The competition, which was organised by Morris Site Machinery and supported by hire firm Speedy, attracted some of the UK’s most promising welders, aged 16-25. The winning students were crowned at an official awards presentation, following the creation of their Mk 1 Male Tank to commemorate this year’s centenary of the First World War.

Phil Winnington, managing director at Morris Site Machinery said: “The talent shown by the students makes us proud to be British manufacturers. Morris Site Machinery is passionate about developing and retaining traditional skills within the UK and this competition gives the next generation of welders the opportunity to showcase their talent. All of the entrants should feel very proud of their achievements.”

Full speed ahead for Nylacast Engineering Training Academy Another focus of the facility is the ability to upscale the skills and knowledge of the current workforce, with structured training programs and opportunities to further their knowledge and gain qualifications.

Engineering polymer provider Nylacast is investing in people with the opening of an Engineering Training Academy. With talk of a skills shortage in engineering, the investment in a training academy was the next step for the company, building on the success of an engineering apprenticeship scheme that it runs. The Nylacast Engineering Training Academy will not only be utilised by young students coming into engineering.

“All of us at Nylacast are very excited and enthusiastic about the investment we have put into the Academy, there is a known skills shortage within engineering which needs to be addressed,” said Mussa Mahomed, group ceo. “Not only does the Academy provide us with a competitive edge in industry, but also allows us to focus our continuous investment in our most valued assets, our people and their dedication.” Nylacast recently won the Contribution to the Community Award at the 2014 Leicester Mercury Business Awards.

Great British Weld-Off champions from Coleg Cambria with Phil Winnington, Morris Site Machinery md and Richard Denholm, category manager at Speedy

Finning Invests In Dublin Branch UK and Ireland Caterpillar dealer Finning has shown its commitment to the Irish market by acquiring a site at the Aerodrome Business Park in Rathcoole. The investment will see Finning relocate its operation from Greenogue to the new facility this spring. The premises were custom built by a previous plant and equipment dealer and present the ideal space for Finning to house and grow its Irish operations. The site features two-storey offices, a showroom, a parts warehouse and two larger workshops, including 16 work bays, which will give customers quicker repair turnaround times. The move will also see Finning Power Systems based onsite, creating further opportunities for customers to benefit from a variety of services offered by Finning. continued on page 9

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MEMBER NEWS MOBA Teams Up With Steelwrist The UK divisions of MOBA and Steelwrist will jointly launch at Scotplant 2014 what they say is a revolutionary excavator system that for the first time displays both the tilting angle of the bucket as well as its rotation angle, to substantially enhance accuracy and precision. Earthworks contractors have been asking for the ability to display the rotation angle of the tiltrotator attachment, to ensure a more accurate end-result. However until now there has been no practical way of achieving this. Thanks to the jointly developed XControl Bridge, the measurements of both the rotation angle and tilting angle are continuously transferred between Steelwrist’s XControl tiltrotator sensor technology in the bucket and MOBA’s ‘Xsite’ machine control system, eliminating the need for additional sensors and cables. “There has been a strong request by our growing customer base for many years to add the rotation angle to our Xsite Machine Control System,” said Ian Lewis, general manager of MOBA UK. “Now, thanks to our collaboration with Steelwrist, we are finally able to fulfill this important customer need and deliver a true revolutionary advancement for the construction industry”. “Our XControl system has always had the ability to measure the tilting and rotation angle of the bucket but we’ve never before been able to transfer this information to the MCS in a simple and effective way,” said Pat Bulcock, Steelwrist UK’s managing director.

WWL ALS new presence in Aberdeen WWL (Wallenius Wilhelmsen Logistics) incorporating Abnormal Load Services (International) (ALS), offers a one-stop-shop for the worldwide movement of abnormal and heavy loads. The group is involved in providing construction equipment companies and OEMs with transport and supply chain solutions for the movement of out of gauge loads by road, air, sea, rail and canal. WWL ALS has taken the opportunity to co-locate a division in Aberdeen, with other parts of the Wallenius and Wilhelmsen group offices. WWL ALS said that this will enable it to have a local presence to support and develop activities and enhance relationships with key companies, in particular those that are active in the oil and gas and other energy sectors. The company is also planning to pursue opportunities in chartering and specialist port services opportunities.

Top speakers at the FEM Congress organised by British Materials Handling Federation FEM is the European manufacturers’ association for materials handling, lifting and storage equipment, representing the technical, economic and political interests of one of the largest industrial sectors of the European mechanical engineering industry. The 35th FEM Congress is to be held on September 18-19, 2014 at the Royal York Hotel in York. The event is organised by FEM’s British National Committee, the British Materials Handling Federation. The FEM Conference programme includes talks by Olivier Janin, FEM secretary general, who will give an update on market surveillance and Cosette Dussaugey, chair FEM TF EU Directives, who will cover updates on EU regulatory developments. Best practice for internal company schemes to ensure regulatory compliance will be presented by sponsor company GE Capital. Megatrends in logistics and distribution will also be included. Paul Brooks, of Unipart Consulting, will address the trends in the automotive sector. Vincent Maurice, vice-president operations at Danone, will discuss the food industry. Other subjects to be covered during the

conference will be e-commerce, followed by a panel discussion moderated by Peter MacLeod, editor of SHD Logistics. Delegates and partners will also be invited to attend a cocktail reception and dinner at the National Railway Museum on the evening of day one of the event and on day two, there will be a cocktail reception and dinner at Castle Howard. With at least 120 delegates expected at the meetings and conference, and up to 160 people at the dinners, the FEM Congress 2014 is an unrivalled networking opportunity to reach European and global manufacturers. Early booking is advised to avoid disappointment. The registration fee for delegates is £590.00. Partners of delegates are also invited and offered a separate programme at a rate of £300.00. For the full programme of events for delegates and to register visit www.femcongress.com/programme/ . For further details or to enquire about sponsorship opportunities please contact Molly Stirling: molly.stirling@admin. co.uk www.bmhf.org.uk continued on page 10

ISSUE 06 - SPRING 2014

10 continued from page 9

MEMBER NEWS Coldest Journey To Star At Awards Coldest Journey team members Spencer Smirl and Richmond Dykes will host the CPA’s Stars of the Future event at Vertikal Days 2014. On May 14, at the Vertikal Days cranes and access equipment exhibition at Haydock Park, the Construction Plant-hire Association will be hosting the second Stars of the Future plant mechanic apprenticeship awards presentation, for young engineers who have taken part in the competition from colleges nationwide. Presenting the awards will be Finning engineers Spencer Smirl and Richmond Dykes, from the famed Coldest Journey Antarctic expedition. Spencer is flying back from his home country of Canada especially for the occasion. After 307 days in the Antarctic guiding Rover and Seeker, the two specially designed Antarctic Cat D6N dozers, the Finning engineers made a safe return to the UK, breaking records for the operation of dozers in the world’s harshest conditions. Spencer and Richmond plan to share their experiences with the Stars of the Future audience.

Social Media – Where are you?

The CEA receives lots of useful information that can help you export, events, webinars, business opportunities, tips, jobs etc. But how best to disseminate it to our members? Finning engineers, Spencer Smirl from Canada (right) and Richmond Dykes from Northern Ireland (left)

“Spencer and Richmond are the perfect candidates to present the Stars of the Future awards,” said Haydn Steele, the CPA’s training manager. “Their experiences in the Antarctic in sub-zero temperatures, keeping the Caterpillar machines working, will be an inspiration to the students embarking on a career in plant mechanics. It’s realising a dream and from little acorns grow mighty oak trees, if you put your mind to it there’s no limit to what you can achieve. We are honoured that Spencer and Richmond accepted our invitation.” Richmond Dykes, is now a senior operator at Finning’s headquarters in Cannock UK. He said: “This industry is nothing without talent and people that are passionate about what they do. I am a great believer in recognising and supporting Stars of the Future and know first-hand that with the right attitude and skills development, you can be well equipped for even the coldest of journeys. “I hope that by being involved in the awards, both Spencer and myself will help to raise their profile and inspire the next generation of engineering talent and who knows, perhaps one day they will be lucky enough to complete the coldest journey.”

In this age of Social Media, information sharing is instant and easily available. If you’re not yet a convert then let us tell you that Facebook and Twitter are not purely ‘social’ sites, inhabited by trolls and bizarre cat photos, while LinkedIn isn’t just for jobs. The CEA uses social networks to tell members what we are doing. But we want more of you to embrace the media and sign up to at least one of them. In addition to learning what the CEA is up to, you can use the networks to let others know about your companies’ activities and share your press releases. Our press officer and social media guru Louise Murphy, louiseamurphy@aol.com, is ready and waiting to hear your news.

To find out more about Stars of the Future visit www.cpa.uk.net/stars.

Connect with the CEA Twitter twitter.com/ConEquipAssocia Facebook Enter Construction Equipment Association in the search box. LinkedIn Enter CEA in the search groups box. Winners of the regional and national awards at last year’s Stars of the Future ceremony

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IN THE LOBBY C E A BI S RE P ORT TO PROV I D E L OB B Y IN G AM M U N I TI O N A UK Construction Equipment Sector Study will be launched on June 10, at the Henry Ford Centre on the campus of Loughborough University. Commissioned by the CEA, in partnership with the Department for Business, Innovation & Skills (BIS), the report will provide new estimates on the size and economic worth of our sector and identify the key drivers for future growth. CEA chief executive, Rob Oliver, believes the report could represent a big step forward in raising the profile of the UK construction equipment sector. “We believe there has been significant growth in our sector since we last commissioned an independent study some years ago and there are now new technology drivers and challenges that we need to address,” he said. “The Report will, I am sure, help to frame not only the CEA’s forward strategy but also inform Government on how it can best address our causes and concerns. I would urge everyone with an interest in the future of our sector to read the report”. To attend the report’s launch, at the CEA’s Innovation & Engineering conference – see www.coneq.org.uk.

LEADER OF CECE OFFICE STEPS DOWN The secretary general of CECE, Ralf Wezel, steps down from his role this Spring. In his time in office he has overseen the expansion and effectiveness of CECE, including the introduction of the CECE Plus initiative to increase the lobbying resource of the organisation, which has improved the profile of the construction equipment sector within the corridors of power in Brussels. At time of going to press, the name of his successor had not yet been confirmed. CEA chief executive Rob Oliver paid tribute to Wezel: “Ralf has shown great commitment in succeeding in what can be a very challenging role. Reconciling and focusing the interests of CECE’s member national associations to put forward a single European voice for our sector to the European Commission, European Parliament and others requires a special set of skills. He will be missed”.

NOVA CHANGES STILL A CONCERN FOR SMALLER IMPORTERS HMRC has amended its regulations covering the compulsory registration of construction and other machinery being imported into the UK. The Notification of Vehicle Arrivals (NOVA) scheme now allows VAT-registered businesses authorised to register vehicles through the DVLA secure registration scheme (SRS) or the web-based equivalent Automatic First Registration and Licensing (AFRL) system, to effectively late register machines where there has been a change of intention concerning their use. For example, an off-road tractor is not required to be registered with DVLA, but if an owner subsequently wants it registered for on-road use the importer can avoid penalties if they act on being advised of the intention of change of use. This new dispensation is unlikely to be of assistance to smaller importers that don’t use so called ‘secure schemes’ and the CEA is still interested to hear of any companies that have fallen foul of the rules, which were not extensively publicised on their introduction last year.

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CECE CALLS FOR INCLUSION OF CONSTRUCTION EQUIPMENT IN TTIP NEGOTIATIONS The Transatlantic Trade and Investment Partnership (TTIP) is the initiative to create a free trade area between the EU and the USA. The Committee for European Construction Equipment (CECE) has produced a policy paper as a contribution to the latest round of discussions. Whilst there are no major tariff barriers between the two parties affecting construction equipment, CECE identifies a number of areas for regulatory harmonisation. These include the alignment of environmental requirements, support for the use of ISO standards and a liberalisation of public procurement rules (citing the ARRA Buy American initiative as a hurdle to freer competition). CECE says that in 2012 it identified €1.52bn of equipment exported to the US from the EU27, representing 20% of all exports for these product lines, hence the importance of reaching a good TTIP settlement.

EEF CONFIRMS MANUFACTURER SUPPORT FOR THE EU According to the EEF’s latest survey (which includes some CEA members) 85% of manufacturers would vote to remain in the EU. However there is widespread support for the EEF’s call for reform of the EU’s institutions and policies. It calls for a cull of the current 28 Commissioners’ posts as too many Directorates General overlap in their areas of responsibility. For example, Climate Action and Energy are at the moment separate directorates, that would benefit from being grouped together. The EEF also advocates the introduction of a new red tape task force, similar to Britain’s Better Regulation Executive.

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I N T E RV I E W - N I G E L B A S E L E Y Nigel Baseley, marketing director at Perkins Engines, is to become president of the CEA at the AGM in June. Keen to build upon the good work that is being carried out by the CEA’s management council, he told Construction Worx that he wants to ensure that the CEA provides a value-added service to its members. CW: What is the purpose of the CEA? NB: “We need to be sure that we’ve got a voice and that our aims and objectives and the contribution that our members make, is recognised. “We have to deliver value to each of our members, from one-man start-up businesses to international giants. “I want to make sure that we deliver on all levels and I would like to understand more from our members about exactly what they need from the CEA. I want to get broader engagement from the membership, to have more of a say and I want to make sure that we add value in what we do. “The CEA is there to support and represent those companies that are designing and building machines in the UK. It is also there for people that are selling and supporting that equipment, plus the secondary market that is supporting them. “With my Perkins hat, I represent a component manufacturer and the UK has such breadth and depth of component suppliers. The CEA has a role to play to support both components and machines, our job is to make sure that we’re supporting and advising these people in the UK market. “Plus it’s also about how we represent the UK industry in CECE and in the worldwide marketplace. Our job is to promote UK industry as both a marketplace and as an exporter. “CEA also has a role to play in providing information to our members. Industry statistics are important to large and small companies.”

CW: How do we raise the profile of CEA members when compared to aerospace and motor industry companies? NB: “The amount of investment in our industry is not recognised at government level. “There is a lot of R&D and investment going on in the UK that needs to be encouraged and supported. I would like to ensure that the breadth and importance of our industry is represented at government level, both in the UK and in Europe. “Thermal management products are now becoming involved in the construction sector, electronics too. We want those companies to become members, but I want them to get value from it.” CW: How do we attract young people into the construction equipment sector? NB: “We have to stay on top of new technologies, but as an industry the thing that could potentially hold us back is access to a trained and skilled workforce. WWW.CONEQ.ORG.UK

“It is really important to us, we need to encourage a focus back into earlier education, encouraging people to take up technical skills. “You get kids interested by showing them how technology applies. If you can kindle that interest at an early stage, that is really important. “In the government environment there should be more emphasis on the technical side, skills and resources.” CW: Do you think that Plantworx works for the members? NB: “I do think that the CEA should be running the show. The thing about Plantworx is that it’s a UK show and it’s there for people who are looking to buy machines. “It doesn’t set out to be a design and development show. It is for talking to customers. Having a UK-based show focussed on buying and selling equipment is very important for our members.”

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PLANTWORX 2015

CONSTRUCTION WORX S T U D E N T DAY AT P L A N T W O R X Plantworx 2015 will hold a Student Afternoon, to address the skills shortage and encourage more youngsters into the Construction Equipment Industry. On the final afternoon of Plantworx 2015 (Thursday June 4, 2015) the organisers of the event, in association with the Construction Plant-hire Association, will invite students and teachers from primary and secondary schools and colleges to visit the show, to get a taste of the construction equipment sector. The Plantworx team took its inspiration from Richard Noble OBE, who hosted the CPA’s Stars of the Future plant mechanic apprenticeship awards presentation at Plantworx 2013. Recognising and promoting engineering excellence in the young is at the heart of many of Mr Noble’s activities. “There is a serious problem finding engineers in the UK,” said Mr Noble. “We are really bad at introducing engineering to children in this country. We need to build and develop these skills on a huge scale, but at present our education system is not producing what manufacturing and engineering need.” Mr Noble’s Bloodhound SSC team is closely involved with 5,442 UK schools, colleges and universities. He believes that involving children at an early age with schemes such as the Bloodhound project will inspire them to think of engineering as a career choice. “We have learnt that you have to start in primary schools, with children as young as five years old,” he said. The Plantworx team is hopeful that by inviting students to attend the exhibition and seeing machinery in real working site conditions, talking to machine specialists and operators, it will encourage their interest in the construction equipment industry. A recent survey published by PwC highlighted just how important it is to encourage young blood into our sector. PwC economists have predicted that there

could be as many as 100,000 new jobs for industry sectors by 2020, including 50,000 new UK manufacturing jobs, 40,000 in transport and 17,400 in construction.

The CPA will also be holding the 2015 Stars of the Future plant mechanic apprentice awards on Thursday June 4, to tie in with the Student Afternoon.

Of particular concern to the construction sector are leavers with professional level grades, for field service to manufacturing employees, as well as machine operators and plant mechanics.

The Stars of the Future awards recognise and reward outstanding apprentices who not only bring ability and commitment to their learning and their work, but who possess additional capabilities that mark them out as being the foundations of the future of our industry, and potential leaders.

The Training and Education Zone at Plantworx 2015 will play a vital role in making the Student Afternoon a success. Hosted by the CPA, the zone is dedicated to colleges offering construction courses and other associations offering training in the construction and demolition sectors. The Training and Education Zone will have an interactive area with machine simulators and visiting students will be encouraged to get hands-on and get involved. WWW.CONEQ.ORG.UK

In May of this year, the Plantworx team will be contacting schools and colleges in the area surrounding Bruntingthorpe (Leicestershire) to invite students and teachers to the event. For more information, or if you are an exhibitor who would like to be involved in hosting a special event for students, please contact Louise Murphy at louise.murphy@plantworx.co.uk

innovation & engineering CONFERENCE 10.06.14 Designed by us

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Have you booked your place yet? If not, go to page 36 for more details or visit www.coneq.org.uk

Are you a member? If you are not already a member of the CEA and are interested in finding out more about the benefits of becoming a member, then contact us by email at cea@admin.co.uk or visit www.coneq.org.uk for more information.

FEM CONGRESS 2014 18-19 September, York, UK Manufacturers of materials handling products, including industrial trucks, cranes, cherry pickers, automated systems and loading bay applications, from across Europe will be holding their biennial Congress in York on 18-19th September 2014. each sector, whilst a conference on the second day will focus on regulatory developments, compliance and mega trends in logistics and distribution.

To see the full Congress programme, register and/or sponsor the event, please visit www.femcongress.com or email molly.stirling@admin.co.uk , or phone Molly on 0208 253 4504.

OVER THE HORIZON

R O A D R E PA I R I N V E S T M E N T The government’s recent announcement of an additional £200m to be spent on infrastructure improvement, and pothole repair in particular, is welcome news for all road users. However as the recent Annual Local Authority Road Maintenance (ALARM) survey conducted by the Asphalt Industry Alliance (AIA) concludes, it represents little more than a drop in the ocean when it comes to targeting the crumbling local road network. The ALARM survey states that it would cost around £12bn to get roads in England and Wales back into a reasonable condition. That represents an estimated one-time cost of £90m for every authority in England. For the second year in a row more than 2m potholes were filled in England and Wales during 2013. However the damage caused by this winter’s rainfall is thought to have counteracted much of that good work, with many highways departments predicting worse road conditions. There are some positives in the survey however. There has for instance been a 20% decrease in the shortfall in annual road maintenance budgets reported by local authorities, reducing from £6.2m to £5.1m per authority in England. This is primarily due to local authorities investing more in their road maintenance

Money spent on repairing damage never goes as far as money invested in planned preventative maintenance. Alan Mackenzie, chairman, Asphalt Industry Alliance

programmes during 2013, in an attempt to catch up after the previous winter. “Increasing numbers of local authorities are participating in the Highway Maintenance Efficiency Programme (HMEP), a DfT initiative to encourage the sector to work together and share best practice to achieve better roads,” said Alan Mackenzie, AIA chairman. “There are also a growing number of authorities (60% in England) which now have highway asset management plans (HAMPs). Many respondents to this year’s survey report that there has been a greater concentration of effort to improve road condition over the last year, and using their HAMP to make the case to their elected members has won them additional funding that has reduced their shortfall.” The AIA is urging government to adopt an ‘invest to save’ policy to road repair. “It costs at least 20 times more per m2 to fill a pothole than it does to resurface a road,” said Mr Mackenzie. “Money spent on repairing damage never goes as far as money invested in planned preventative maintenance.”

JCB has developed a Potholemaster version of its popular 3CX backhoe loader. The high-powered machine carries a patch planer at the rear, to grind away the surface surrounding a pothole. Once completed, the machine drives over the planed area with a modified sweeper collector front bucket to remove chippings, prior to the laying of new material. “We’ve had a team of engineers working closely with the highways industry for the past six months to ensure we develop products the sector wants and needs,” said backhoe loader growth managing director Yvette Henshall-Bell. “With the JCB Potholemaster we are offering a cost-effective permanent solution for fixing potholes in an attempt to rid Britain of the pothole menace.”

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In England and Wales, excluding London, the average cost to repair a pothole last year was £52, rising to £70 in the capital. Local authorities in England (excl London) spent £90.9m on pothole repairs in 2013, while London councils spent a further £8.1m. Authorities in Wales spent £7.7m according to the survey. However, an incredible £15.5m was paid out in road user compensation claims in England last year, including £4.4m in London alone, while £1.1m was spent in Wales, demonstrating that it is not only the cost of the actual repair that councils have to consider. That’s without the £15m of staff costs incurred by local authorities in processing the claims. “The sector has invested resources in HMEP principles to improve efficiency and we believe it is in better shape to make best use of the increased funding to come in 2015,” said Mr Mackenzie. “To do so it is critical that highways departments receive every penny earmarked to help them implement good asset management and improve the local road network.”

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HARD DATA CONSTRUCTION INDUSTRY CAUTIOUS ABOUT GROWTH PROSPECTS Construction output in February 2014 fell by 2.8% (£270 million) compared to January 2014, according to a report by the Office for National Statistics. New work orders fell by 2.6%, while repair and maintenance work was down 3.1%. This is a change from ONS data in January that looked considerably more promising, with January 2014 orders up 1.8% compared to December 2013 and a rise in orders throughout the final quarter of last year of 1.5%. Taking a longer-term view, things are still more positive, with the three monthly December to February estimate of

construction output showing a 0.3% increase when compared to the previous three months. However with output in February estimated at £5.8bn, the output of new work is still 12.3% below the monthly peak of £6bn that was recorded in June 2011.

of private and public sectors. Private sector construction output rose by 1% in February, compared with the same month in 2013, while public sector output fell by 6%. Again, private sector housing starts are said to explain this split in activity.

The ONS makes it clear that these figures should be taken in context, as the UK experienced a series of adverse weather conditions in February. Most private indicators of construction activity picked up throughout 2013 and into 2014, though a number were also seen to reverse that trend in February with poor weather conditions the main cause, particularly in the house building sector. The ONS report said that there is a growing divergence in the performance

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Mineral Products Association (MPA) figures show that there was a strong growth in demand for aggregates, asphalt and readymixed concrete in the final quarter of 2013, and throughout the year as a whole. Aggregates volumes were up by 6% in 2013 compared to 2012, with concrete rising 11% and asphalt showing a 4% improvement. Here too housing starts were given as the main reason, with housing related material sales 25% higher in the final nine months of last year than in the same period of 2012. The MPA is also keen to point out however that overall aggregate, concrete and asphalt demand remains some 30% lower than pre-recession levels. The NHBC reported that the number of new homes registered in the UK increased by 14% for the rolling quarter December to February, compared to the same period last year. Almost 30,000 new homes were registered from December 2013 to February 2014, compared to just over 26,000 last year. However the February figure of 9,484 was down on last February (10,538), which can be attributed to the poor weather.

“Although the results for February in isolation are not particularly strong, the rolling quarter shows that the number of new homes being registered continues to increase,” said Richard Tamayo, NHBC’s commercial director. “Our latest statistics show there is still a way to go before the country starts seeing figures on a par with pre-recession statistics, but the new measures revealed in the Budget show that the government remains committed to boosting the house building sector.” The Construction Products Association (CPA) has also welcomed the 2014 Budget, saying that it backs British manufacturers and builders. It applauds the government’s decision to extend the Help To Buy scheme

until 2020, as it has had a real impact in generating new house building starts and is confident that this longer-term clarity will further encourage builders to invest. “We are also encouraged by the recognition that infrastructure is part of a successful economy, with short-term support for projects such as guarantees for the Mersey Gateway Bridge, £140m for damaged flood defences and £200m for pothole repairs,” said Diana Montgomery, chief executive of the CPA. “More importantly however government must focus on delivery of its existing project pipeline and getting spades in the ground, a critical challenge given the recently disappointing ONS figures showing a drop in infrastructure output and new orders.”

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HILLHEAD PREVIEW

The UK’s leading quarry show, Hillhead 2014, will take place at the Hillhead Quarry near Buxton on June 24-26. The popular event is once again sold out and the CEA’s Plantworx exhibition will this year occupy stand PB33. Companies and visitors interested in finding out more about next year’s Plantworx exhibition are welcome to call by and chat with the team throughout the three day show.

Hillhead covers an area of 140,000m2 and includes covered pavilions, outdoor displays and working demonstration areas, along the quarry face that surrounds the show area. There will be a blast within the quarry shortly before the show starts, to produce around 10,000 tonnes of stone for demonstration purposes.

Manufacturers demonstrating in the main quarry face area will include Doosan, Bell, Finning Cat, Case, Hyundai, JCB, Liebherr, Marubeni-Komatsu, Worsley Plant, Volvo and Terex Finlay. Exhibitors confirmed for the processing area include McCloskey, Sandvik, Terex Finlay, Terex Powerscreen and Tesab Engineering.

As well as excavation, loading and hauling equipment, there are demonstration areas for processing machinery, including screens and crushers. There is also a recycling demonstration area that will show a range of processing equipment.

The recycling demonstration area will have machinery from Ace Plant, Baughan’s Barrel Screens, Engcon, Herbst/MOBA, JCB, Maximus Crushing and Screening and from Terex Finlay among the many stands.

BOMAG Compaction specialist Bomag will once again show a range of its latest machinery at Hillhead. Among the exhibits will be milling and paving equipment, as well as the company’s well known compaction ranges.

“We have now got a sensible exhibition schedule in the UK with Plantworx and Hillhead alternating,” said Bomag (GB) managing director Alan Batty.

Centre stage will no doubt be taken by the BF 600P-2 wheeled paver, that has just arrived in the UK. The 19 tonne class machine has a maximum output of 600 tonnes/hour and a maximum paving width of 8m with the S500 screed. It is powered by a Tier 4 Final MTU engine and features Ecomode, an integrated engine management system that matches power to demand to reduce fuel consumption.

“Our involvement at the inaugural Plantworx last year was a huge success and we have a long history of participation at Hillhead. While the exact profile of visitors may vary, both exhibitions give us an opportunity to meet customers face to

face and to present our latest milling, paving and compaction products and our aftermarket and financial services.” continued on page 25

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25 continued from page 22

HILLHEAD PREVIEW DOOSAN

SANDVIK

Doosan Construction Equipment will have a range of equipment on show, from its heavy range of excavators, dump trucks and loaders, its Bobcat compact division, Doosan Portable Power, plus bucket and attachments companies Montabert and Geith.

Sandvik Construction is expanding its mobile crusher range with the launch of the QS441 and QS331 tracked cone crushers. The S-type gyratory cone crusher has proven itself in stationary applications for many years and has now been incorporated into a self-contained, diesel-powered crawler machine.

Among the heavy quarry products will be the DL420-3 wheeled loader, wearing a 4.0m3 bucket and powered by a Stage IIIB engine, driving through a ZF transmission. The latest DX530LC-3 crawler excavator will also be on display, with a Stage IIIB Isuzu engine delivering 389hp. Often overlooked among the big earthmovers on show, Doosanâ&#x20AC;&#x2122;s compressor and generator ranges get a boost this year, with the 12/250 compressor and the G100-111A generator making exhibition debuts. The 12/250 is

RDS TECHNOLOGY

one of a family of five large compressors sharing a common design, delivering 21.5-30m3/min. Powered by a Stage IIIB Cummins engine, the compressors have a range of after-treatment technologies including EGR, a DOC and a DPF. The G100-111A generator has a standard fuel capacity allowing a minimum of 12 hours of operation. A 24-hour onboard fuel tank can also be supplied as an option.

The S-type gyratory cone machines can cope with feed sizes up to 90% larger than standard cone crushers, boosting productivity as a primary machine. The 56 tonne QS441 uses the firmâ&#x20AC;&#x2122;s CS440 cone, while the smaller 36 tonne QS331 has a CS430 cone crusher. Both machines come with a choice of three concaves and four bush settings to control the closed side setting for material gradation. This offers customers plenty of flexibility, with the crushers capable of producing large reduction ratios with minimal fines.

TEREX

CEA member RDS Technology will launch a retrofittable onboard scale for wheeled loaders and excavators at the show. The Loadex 100 is designed for both wheeled and crawler excavators using a minimum of two pressure sensors in the hydraulic lift circuit. Pressure signals are captured, filtered and corrected with an inclinometer, while slope corrections are made from another inclination sensor on the chassis. Dipper arm position is established through a mechanical angle sensor, while oil temperature compensation can be provided by a clamp-on temperature sensor. Load and store information is sent to the monitor in the cab and can be stored in the terminal, for distribution to an in-cab printer, a modem or an internal SD flash card.

Terex Washing Systems will introduce two washing solutions at the show for sand, gravel and aggregates production. The Aggresand 206 washing plant has a capacity of up to 400 tonnes/hour, using a 20x6 screen with two or three deck options.

For wheeled loaders, RDS has developed the Loadmaster a100. The CAN-based system uses the latest sensor technology to provide precise bucket weight information. It has been built to operate within fast loading operations, reducing cycle times and maximising tonnes/hour performance.

The machine is completely contained for easier transportation and rapid setup, coming pre-wired and pre-plumbed for a plug and play solution. The plant incorporates sensors throughout to provide the operator with water pressure, cyclone feed pressure and electrical power consumption data to improve efficiency. ISSUE 06 - SPRING 2014

Terex will also take the wraps off the Aggrescrub 150, which is designed primarily for the construction and demolition markets. Capable of handling up to 150 tonnes/hour the plant has the ability to effectively scrub the aggregates and float out clays, silts, wood and plastics. There are a number of paddle options, including traditional Hardox blades in 15mm and 30mm increments and a new high manganese steel option.The Aggrescrub unit shares a similar set-up approach to the Aggresand plants, with pre-wired and plumbed pipework and electrics.

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CONEXPO TECHNOLOGY H Y B R I D A N D A LT E R N AT I V E D R I V E D E V E L O P M E N T S THE RECENT CONEXPO SHOW PROVIDED AN OPPORTUNITY FOR MANUFACTURERS TO SHOW JUST HOW FAR DRIVELINE TECHNOLOGY AND HYBRID DEVELOPMENTS HAVE MOVED ON, SAYS GEOFF ASHCROFT Hybrid technology remains an area where knowledge and expertise continue to evolve. While key developments appear to come from equipment manufacturers, component suppliers are also taking big strides. Ricardo for example, continues to test and improve its flywheel energy recovery system, first seen on the High Efficiency Excavator (HFX) project. Called TorqStor, (below) this innovative high-speed flywheel energy storage system brings KERS-type technology to plant and equipment.

The system combines a modular highefficiency carbon fibre flywheel with a magnetic coupling and gearing system, to provide a range of energy storage capacities for different machine applications. The flywheel spins at speeds of up to 30,000rpm using the magnetic coupling, which is driven from a hydraulic motor. Energy is returned to the hydraulic system simply by using the flywheel inertia to assist in driving the hydraulic motor. Peak power from the flywheel system can be as high as 175hp, but the progressive release of flywheel energy allows a controlled amount of power to be put back into the system for short bursts. Ricardo said the system is one that offers low cost compared to super-capacitors and battery packs. Furthermore, the system suffers no performance degradation over its lifetime, and perhaps most importantly, it can be retro-fitted to almost any recent excavator. Fuel savings from a 24 tonne excavator, operating 1,500 hours/year, can offset the cost of the flywheel energy recovery system within a year, said the firm. Such is the rate of progress made by Ricardo, that it is now delivering TorqStor units to a number of OEMs for evaluation, which it hopes will lead to machine production with the hybrid TorqStor system.

workload for this 21 tonner’s four-cylinder engine (Komatsu’s standard PC210 uses a larger six-cylinder engine for similar digging performance). Now badged HB215LC-2, the excavator is entering its third generation as a hybrid, though the hybrid components remain unchanged from the second-generation machine. Komatsu’s latest changes focus on the engine, as it becomes EU Stage IIIB emissions compliant through the addition of a Komatsu Diesel Oxidation Catalyst (KDOC). The company says the KDOC integration allows soot removal with passive regeneration and without the need for a diesel particulate filter (DPF).

Perhaps the most familiar of hybrid excavators is the HB215LC from Komatsu (above right) and since its introduction in 2008, the company has sold over 2,500 hybrid excavators worldwide.

The firm also used Conexpo to show the adoption of intelligent machine control technology on its D51, D39 and D37 dozers. First shown on the D61PXi, intelligent machine control uses innovative stroke-sensing hydraulic cylinders that monitor the position of the cylinder rod for blade height, angle and tilt.

Komatsu uses an electric slew motor system along with ultra capacitors, an inverter and an engine-mounted motor/generator. Components work together to create and store electrical energy, which contribute to easing the

Each sensor works with a factoryinstalled roof-top mounted GNSS (global navigation satellite system) antenna and a chassis mounted enhanced inertia measuring unit (IMU+) - the IMU+ always knows machine orientation and direction. continued on page 29

ISSUE 06 - SPRING 2014

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29 continued from page 27

The system provides positional updates at a rate of up to 100 times per second, affording high-speed automatic operation that is equally adept at automatic rough dozing as it is at fine grade control.Though not reducing fuel consumption through the driveline, more efficient use of the machine, with less passes to achieve a finished grade, can save just as much as a highly tuned engine or a hybrid system that is being used inefficiently. Hyundai and Caterpillar are both making progress with hybrid developments, that include Hyundai’s prototype Hi-Poss system and Caterpillar’s 336F Hybrid (right).The 34 tonne Cat 336F excavator uses an adaptive control system (ACS) with 16 individual metering valves, that intelligently supervise restrictions and oil flows around the machine. Unlike traditional main valve blocks, ACS has been engineered to operate on any of the excavator’s oil circuits and can share oil between any two or more combinations of circuit. It is no longer a flow/return device for one spool, it provides the intelligence of the entire hydraulic hybrid system and reduces losses by taking or sending oil to and from any other circuit that needs it, instead of dumping oil back to the tank. ACS combines with a hydraulic hybrid slew system, which allows energy to be stored and re-used with the help of large nitrogen accumulators, that harvest and then feed high pressure oil back into the slew motor as required. Hybrid systems are not the exclusive domain of excavators though, wheeled loaders will soon be in on the fuel saving act too. Dana is currently developing a hydraulic hybrid system for wheeled loaders called PowerBoost. By capturing waste energy from driveline and hydraulic systems, Dana says it can re-use the wasted energy to help power the machine and reduce fuel consumption by 20-40%. Energy is stored in high-pressure accumulators and then delivered to the drivetrain when required to assist the engine in powering hydraulic pumps and motors. Dana has so far conducted more than 1,000 hours of testing using a 16 tonne wheeled loader and is also testing the system for suitability with telescopic handlers. Innovation is also coming from Oerlikon (above left), which is developing a hybrid electric drivetrain for wheeled loaders that is predicted to reduce fuel consumption by

up to 30%. It starts with engine partner Cummins supplying a 12 litre QSG engine, that carries a reluctance-type motor/ generator to produce electrical power. This electrical power drives all four wheels through the use of individual high-power electric wheel motors. Each wheel motor contains service brakes and allows regenerative energy recovery under braking – ideal, says Oerlikon, for repetitive duties performed by wheeled loaders. A bank of ultra-capacitors is used to store and release electrical energy on-demand. Although still in the very early stages of development, Cummins engineers expect the QSG engine to operate like a genset, working at a constant speed of around 1,200rpm while delivering 400hp for electrical energy generation. The hybrid electric drive system is currently being integrated into an XCMG 30 tonne wheeled loader, to create a working prototype by late 2014. As a side benefit, it is thought that the individual electric wheel motor system could eventually lead to the development of independent suspension for wheeled loaders. So far, most construction equipment manufacturers seem content to base ISSUE 06 - SPRING 2014

expensive hybrid technology on a single machine in their range. Given the fuel saving and efficiency benefits, it would be logical to extend the offering across several models to spread the investment. John Deere Construction (above right) is one of the few manufacturers that has chosen to develop hybrid systems on more than one model. The arrival of the 6.5m3 944K Hybrid wheeled loader is based on the last two years’ success with the smaller 3.2m3 644K Hybrid. The larger machine uses two motorgenerators to convert engine power to electrical power, which is fed to four individual, electric wheel motors via solidstate water-cooled electronics. It is a more complex machine than the smaller 644K, which uses its engine to drive a generator that powers a single electric motor. This is installed as a torque converter replacement, driving a threespeed powershift transmission, which uses traditional mechanical drives to get power to the wheels. There are many different ways of capturing and reusing what has until now been seen as waste energy in a machine driveline. It will be interesting to see how these many developments fare, in the arduous test ground of construction industry use.

TECHNIC AL BRIEF STAGE V EMISSIONS NEGOTIATIONS ARE AT A CRITICAL STAGE. CEA TECHNICAL CONSULTANT MALCOLM KENT OUTLINES THE LATEST PLANS

Previous articles in Construction Worx have covered the development of the next stage of engine emission reductions, but matters have moved on. The European Commission is sticking to its timetable to have the proposal published any day now and in preparation for that, has let everyone know what is to include. Most of what is in there is stuff we have expected for some time, but there are some surprises. Firstly, let’s look at the technical matters, the proposed emission limits and what they will mean. The first thing to say is that, as expected, the new controls will cover all engine powers. The current stages only regulate diesel emissions from engines in the range

of 19-560kW, so diesels outside that range had no emissions limits at all for the European market. This hole is being plugged and the new limits will apply to engines from 1kW up, although the technical requirements will be different depending on the engine output. One key thing that we had not known until recently, was where the Commission would pitch things in relation to the emission limits. There have been extensive discussions about the options, making the limits the same as in the USA (what the Americans call Tier 4 Final), or basing the limits on the on-highway Euro 6 levels (what the Commission called ‘road ambition’). The Commission has now shown its hand and what’s in there is USA-Plus. The plus part is particle number counting, which we’ll come to shortly. There has been increasing evidence in recent decades that the particles in the

air which are most dangerous to health are the very, very small ones – ultra-fine particles – and that really does mean small. We are talking about specks of dirt down to 0.0001mm across and smaller. There has been pressure to limit the emission of these into the atmosphere and that is where particle number counting comes in. In all the previous stages, including Stage IV, all the limitations on particulate emissions have been on the basis of the weight of particles emitted in relation to engine power, with no discrimination as to the sizes of those particles. This meant that an engine could meet the requirements either by emitting a small number of larger particles or a large number of ultra-fine particles. That will change with the Commission proposal in that as well as limits on the total mass of particles emitted, there will also be limits on the numbers of the fine continued on page 33

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particles. This will apply to the full range of engines covered by the stages up to Stage IV, those from 19-560kW, but not to those engines being regulated for the first time, i.e. below 19kW or above 560kW. So what does this mean for engines? It means particulate filters. Engine makers have found different ways of meeting the requirements of each previous and current stage, using different technologies to get the emissions of particulates and NOx (the other key pollutant being regulated) down to the required levels. However Stage V, assuming it ends up looking something like the current proposal, will probably force engine makers to adopt particulate filters if they don’t use them already. Diesel particulate filters (DPF) do trap a large proportion of the ultra-fine particles and are the only currently widely available technology that allows engines to meet the proposed limits. However, we should never underestimate the ingenuity of engineers, someone might yet come up with an alternative way to meet the new requirements!

scrapping that altogether. The only provision is that engines built in the final six months of the old stage can still be used in building machines in the first year of the new stage. That would put tremendous pressure on companies in terms of readiness for the new stage and in inventory management. However, possibly the scariest part of the Commission’s thinking on such matters is in relation to replacement engines. The current laws allow that if an engine is

engine maker, along with every machine manufacturer, would need to estimate how many replacement engines they will need for all the previous stage engines they have ever built. If they get it wrong, then either they will have lots of useless engines on their hands or customers will have to scrap machines because they can’t get a replacement engine. And if they do get it right, there is still the question of storing all those engines, and paying for the cost of that

What about petrol engines? The Commission is wise to the possibility that there might be a temptation for manufacturers to get round the limitations on diesel engines by re-powering machines with petrol engines. The argument could go that diesel engines are getting considerably more expensive due to emission control technologies, so why not replace them with a simpler, cheaper petrol engine? Petrol engines for off-highway use are not currently regulated to the same degree as on-highway, so relatively old technology could be used for some power categories. To head off the possibility of a wholesale switch to petrol power, the Commission is including limits for petrol engines in the new regulations, to make sure that if companies do decide to go down that route the result will be just as clean as if they had stuck with diesel.

What about transitional arrangements for the new stage? We have looked at the arguments about transitional arrangements in previous articles, such as the flexibility allowance. The recent bombshell from the Commission was that it is thinking of

needed as a spare part for an old machine, it can be built exactly as the original engine was, meaning that it would need to conform to the emissions limits in place at the time the original engine was built even if the limits have reduced in the meantime. This allowed a straight like-for-like replacement. The Commission is concerned that this might be allowing a lot of engines on to the market which are old spec and high emitters of pollution. It is proposing to ban the production of replacement engines once a new stage has come into force. As we all know, newer engines are seldom a straight replacement for old ones as there are many changes that are made for a new installation, such as the electronics, the cooling system, the exhaust system and the physical space taken up, so we can’t think in terms of just supplying a Stage V engine to replace a Stage II engine, for instance. A ban on building a Stage II engine for a spare part would mean that before the end of Stage IV every ISSUE 06 - SPRING 2014

stockpile. As you can imagine, strenuous efforts will continue to be made to get the Commission to change their minds on this one.

When will all this happen? The schedule is firming up. Because of some dates already in related legislation, there is one fixed stake in the ground for some aspects of Stage V, and that is January 1, 2019. Current expectations are that the full effects of the new stage will be phased in around 2019 to 2020, depending on how the legislation progresses through the stages in the European Parliament and the Council of Ministers. The Commission will publish its formal proposal soon in order to allow it to get on the work programme for the Parliament when it convenes after the European Elections in May this year. Then we will see whether manufacturers can live with the proposal or whether the battle ground moves on to Parliament.

I N T E R N AT I O N A L N E W S A N D C O M I N G U P UKTI MINING HVOs UK Trade & Investment (UKTI) is increasingly focusing its exporting resources on high value opportunities (HVOs). UKTI has produced an HVO for the mining supply chain. To tap into funding for construction equipment export events, we must increasingly turn to opportunities around the development of new mines and the expansion and operation of existing mine infrastructure. More and more CEA member seem to have crossover sales into the mining sector, through OEMs, materials handling and processing, attachments, components and spare parts. As the HVO approach opens up significant new horizons for our sector, the CEA will be working closely with UKTI to run missions, seminars and scoping visits to help companies access exciting opportunities. Most of the mining HVOs are located in remote areas with no existing infrastructure. The need for new roads, mine infrastructure development and maintenance, railways, bridges, tunnels, pipelines, ports, airports, housing will be huge. • The Simandou iron ore project, situated in a remote area of Guinea, requires infrastructure to develop the mine and transport the ore by rail to a new port in Liberia. Construction work will include a 650km rail line, including over 35 tunnels and bridges. • In 2012 mineral sales in Saskatchewan, Canada, were valued at C$8.2bn. Over the next 20 years there will be a further C$50bn investment in capital mining projects in Saskatchewan, including two major potash mines developed by BHP Billiton and K+S potash. • In Chile, planned investment in the mining sector is valued at US $112.5bn between 2013 and 2021. Codelco,

Chile’s state copper company, has planned investment of US$27bn in eight projects. Seventeen private sector mine projects in Chile, worth at least US $1bn each are planned. A desalination plant is being developed by BHP Billiton at the Coloso port worth US$3.4bn.

CEA MISSIONS AND SEMINARS 2014-15 CEA Missions and Seminars 2014-15 Guinea scoping visit with an option of adding one or more countries (Liberia, Ghana or Sierra Leone). Timing dependant on current WHO advice due to Ebola virus outbreak. Mongolia seminar and trade mission, September 2014. Chile trade mission with a Peru and/or Colombia extension November 2014 (tbc). Canada, Saskatchewan, trade mission October 2014. Canada, Toronto PDAC exhibition and conference trade mission March 2015.

The CEA will be working with UKTI to deliver trade missions to these projects, to discover how UK construction, materials handling and mining equipment manufacturers, attachment, component suppliers and service providers can benefit. More information will be available soon, but the first event is planned for September 2014 with a return visit to Mongolia to follow up on opportunities around Mongolia’s massive copper and coal reserves. The 2013 trade mission and seminar run by the CEA, UKTI, and the British Embassy in Ulaanbaatar saw a return on investment of £10m of sales by the UK missioners.

BRITISH AIRWAYS OFFERS 20% DISCOUNT British Airways is offering a 20% discount on long-haul flights costing over £600 to all UK companies participating in exhibitions, trade missions and other international events that are part of the official UKTI Programme. Ask Gill Stirk for more details if you are interested in taking advantage of this offer. Routes must be flown by BA and not by one of its partner airlines. UK companies exhibiting at Bauma China (Shanghai), bCIndia (New Delhi) can take advantage.

UK PAVILIONS WITH UP TO £3,000 OF UKTI TAP GRANT FUNDING IN INDIA AND CHINA Bauma China, Shanghai (November 25-28, 2014) and bCIndia, New Delhi (December 15-18, 2014) The CEA is holding space for UK Pavilions at these events. Details of stand packages are now available and bookings for stand space have already been received. UKTI grants of £2,500 are available to eligible companies (£3,000 for new to event).

EXPORT PODs If you don’t want the expense of an individual full shell scheme stand, or want time to walk the show and meet other exhibitors, why not take a POD co-located on the UK Pavilion. A Pod gives you a base and two graphics plus UKTI Grants of up to £2,500 are available to eligible companies. Only a limited number of Pods are available, so early booking is strongly recommended. continued on page 37

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An exciting new initiative from the CEA – our first conference at the HENRY FORD COLLEGE, Loughborough University. The CEA’s forward strategy places an emphasis on INNOVATION & ENGINEERING as we launch the first official UK CONSTRUCTION EQUIPMENT SECTOR REPORT for a decade. A conference for CEA members and invited guests. *Henry Ford College, University Way, Loughborough, Leicestershire LE11 3TL (Sat Nav: LE11 3GR)*

PROGRAMME 09.00 Registration, refreshments and Innovation in Action exhibits 09.30 – 10.00 CEA 2014 Annual General Meeting – Members Only 10.00 – 13.00 ”INNOVATION & ENGINEERING” The UK Construction Equipment Sector Report Commissioned by the CEA with the support of the Department for Business, Innovation & Skills (BIS) – the results of a National Survey for the evaluation of the scale, scope and future of Britain’s Construction Equipment and Off Highway Sector. Presented by: Alex Woodrow, Director and Head of Research, Knibb Gormezano and Partners. With supporting speakers from: Technology Strategy Board – Funding and Support for Innovation www.innovateuk.org ETI – Energies Technology Institute - a public-private partnership between global energy and engineering companies and the UK Government. www.eti.co.uk CEA Skills Advisory Panel – a new initiative to address skills issues in the construction equipment sector. Plus – CEA project updates 13.00 – 14.00 Networking Lunch and Media Briefing 14.00 – 16.30 CEA International Business Group (see International pages for details)

INNOVATION IN ACTION A display of cutting edge technology equipment from CEA members including Bomag, JCB, Komatsu, Volvo et al.

Monday 9 June – CEA PRESIDENT’S DINNER “Join me, CEA President, Nick Ground, and members of the CEA’s Management Council for dinner at Burleigh Court Hotel – a stone’s throw from our conference venue the next day. It is an opportunity for me to thank Members for their support over the last three years and for you to network with your fellow Members. The dinner will be informal and a great chance to learn about and contribute to our forward strategy”. • Networking Drinks Reception and Dinner: CEA Member Rate £45 (ex VAT). • Discounted hotel rooms: Burleigh Court: CEA conference rate £92 (single room B&B inc. VAT). • The Link Hotel: CEA conference rate £74 (single room B&B inc. VAT).

Visit www.coneq.org.uk for booking details • Or email cea@admin.co.uk for further information

37 continued from page 34

CONEXPO-CON/ MONGOLIA MISSION AND SEMINAR FOR CONSTRUCTION AND MINING EQUIPMENT, AGG 2014 The CEA returned to Las Vegas with a SEPTEMBER 2014 In addition to opportunities in the mining sector, planned infrastructure investment in Mongolia to 2016 and beyond includes: • Over 5,500km of new and improved roads (including 212km and seven bridges in Ulaanbaatar) • An international airport in Ulaanbaatar with improvements and extensions to regional airports

The CEA has been appointed by UKTI to run its third five-day seminar mission to Ulaanbaatar, showcasing the best of UK manufacturing and expertise in the construction and mining equipment sectors. The seminar gives UK companies a platform to present their products to an audience of 75–100 targeted Mongolian delegates, drawn from equipment end users, government representatives, mine owners and operators, contractors, funding bodies and distributors. Each UK company has a 30 minute presentation slot, followed by a networking lunch and one to one meetings with delegates. The 2013 seminar was featured live on Mongolia TV news bulletins. The rest of the week is taken up with group visits and individual meetings and rounded off with an evening at the (in)famous British pub, the Steppe Inne.

• 100,000 apartments for nomads moving into Ulaanbaatar • New CHP Power station in Ulaanbaatar • US$5.2bn investment in 5,600km of new and upgraded railway The Mongolian economy grew at an enviable 11.7% in 2013 and is expected to remain stable over the next two years. With the election of a new government, it is hoped that the underground Phase II of the copper mine at Oyu Tolgoi will be resumed by the end of 2014. Travel grants of £620 per eligible company are offered under the UKTI MAP scheme. Exact dates for the September mission will be finalised very shortly and places are limited, so register your interest now. See the report on the 2013 mission on the CEA web site www.coneq.org.uk/ Mongolia and the interview with Joanna Oliver in the recent edition of the UKTI magazine, Springboard.

CEA INTERNATIONAL GROUP MEETING The next meeting of the CEA’s International Business Group (IBG) will be on Tuesday June 10, at the Henry Ford Centre, Loughborough following the CEA AGM and half day technology and skills conference. The theme of the IBG meeting will be Export Finance and Assistance together with roundtable market discussions and CEA future international plans.

well-supported UK pavilion. Twenty companies participated in the pavilion, which had a superb location right by one of the main entrances from the Silver lot to the Central Halls. The open design of the UK pavilion added high visibility for the exhibitors’ products. All the companies on the UK pavilion reported a high level of interest, better than at Conexpo 2011, and felt they had taken some genuine leads. In addition to the many visitors from North America, there was a good number from Latin America. On the Thursday evening the CEA, generously supported by UKTI, ran a well attended networking evening in the form of a malt whisky tasting. Around 130 guests were able to sample six different malts, mostly Scotland’s finest but for comparison, one from Japan and a Kentucky Bourbon. Whether it was the fascinating company, the thirst for knowledge for British construction equipment, the superb quality of the whiskies, or a combination of all three, it was one of the CEA’s best attended and most successful networking events. One that we may well repeat at Intermat 2015. The CEA was supported on the UK pavilion by Alan Woods from BIS, Richard Colley and Josh Williams from UKTI at the British Consulate General in Chicago. The HMG representatives where able to walk the show floor and speak to UK companies, to find out how they could further assist them in exporting to the US. Conexpo was bigger, better and brasher than in the recession hit days of 2011. With almost 130,000 visitors (31,000 from overseas presenting 170 countries) meaning the 2,000 plus exhibitors had plenty of people to talk to.

• Confirmed speakers/topics include: • UK Export Finance, John Snowdon, head of project marketing. • 2014 Budget changes - additional help for exporters. • Institute of Export – Getting you out of a tight spot

Picture courtesy of Chris Sleight, KHL ISSUE 06 - SPRING 2014

YOUR SHOUT a real life challenge. Employers oversee the challenge, but it is delivered by teachers and subject experts (not all qualified teachers). Wherever possible the core subjects are integrated into the curriculum, so they are taught in context. Students work with the latest technology including 3D printers and lasers and typically spend 40% more time at school than a standard state school, it is an 8.30am-5pm working day. A full programme of extracurricular activities including clay pigeon shooting, gravity racing, sports and music is also compulsory.

EMPLOYER INVOLVEMENT IN EDUCATION, BY DAVID BELL, CHAIR OF GOVERNORS AT THE JCB ACADEMY All too often I hear employers complaining about the fact that school leavers and often University graduates are not work ready. They often lack the basic skills that employers are looking for and many have to carry out pre-employment training before letting the new recruits into the workplace. Clearly there are differing views on the purpose of education and whether it has any direct relevance to employment. One would have to wonder whether the system is working efficiently and effectively, when we have close to one million young people unemployed, with many lacking basic numeracy and literacy skills. Couple that fact with the latest statistics, which indicate that 45% of University leavers will not be in a position to earn enough to pay back their loans, there does appear to be an issue. The JCB Academy is different to most schools. Firstly our vision is to develop engineers and business leaders for the future, so we do believe that for many youngsters there is a direct link between their education and future career.

Lord Bamford is passionate about the importance of manufacturing to Britainâ&#x20AC;&#x2122;s economy, and rather than complaining about the education system he decided to get directly involved and was the inspiration behind the JCB Academy. Our curriculum starts with a desire to embed employability skills within our students. We want them to be able to articulate their solutions to problems to business leaders, to be determined, to persevere when things go wrong, to work in teams and take responsibility for outcomes. We believe if we focus on these things good academic results will follow. Most schools focus on getting their academic results first and try to tag on some people skills if they have time. Donâ&#x20AC;&#x2122;t get me wrong, we realise that ultimately the league tables matter, but what matters to most youngsters and their parents is that they have a job, or are moving on to further or higher education. Thus far every student leaving the Academy has done just that. The Academy curriculum was designed in consultation with employers in the form of

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Many of our youngsters take up apprenticeships at 16. They choose the earn while you learn route. For the school, this is currently a disincentive, because if they leave us, the revenue from a place in the sixth form is lost. But if our goal is employment we cannot be disappointed. Indeed we have started to deliver apprenticeships for JCB and from next September we will be delivering apprenticeships for other local employers. Most schools know little about the various options available for apprentices. At JCB (and the likes of Rolls-Royce) entry into an advanced apprenticeship is not easy. You need the same qualifications that are required to stay on in the sixth form, because the outcome is the same. An advanced apprenticeship will in many cases lead on to a degree qualification. At 18, a higher apprenticeship will lead directly onto a degree-based course and many of the JCB Academy students with a good set of A-levels are now building careers with the likes of Bentley, RollsRoyce and JCB. They are earning while they learn and the foundation they have received at the JCB Academy means that they are effective as soon as they join. Others will go down the traditional University route. So I would encourage all employers to stop moaning about the fact that many youngsters lack the skills they need. Get involved, you will find it extremely rewarding!

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