ConstructionWorX - Summer 2018

THE VOICE OF THE UK CONSTRUCTION EQUIPMENT INDUSTRY

THE OFFICIAL MAGAZINE OF THE CEA

SUMMER 2018

WHAT’S NEW UNDER THE SUMMER SUN? - company news, products and profiles

BREXIT WARMING UP

– EXPERT BRIEFINGS ON PREPARING FOR POST-EU BUSINESS

DIGITAL – A HOT TOPIC IN EUROPE – NEW CECE MANIFESTO FOR DIGITALISATION ADOPTION

ENERGY FOR THE FUTURE – A STRATEGY BASED ON BEST FACTS AND DATA

www.constructionworx.co.uk

YOUR MOST TRUSTWORTHY CO-WORKER HL980 WHEEL LOADER

AAVM FOR ADDED SAFETY

You have a lot to think about, so it helps to have a reliable workmate who is equipped to get the job done in any conditions. The HL980 Wheel Loader features the latest technologies for sustainable performance and smart, effortless operation. The soundproofed cabin includes an advanced infotainment system that makes your working day more enjoyable and productive. The new exterior design guarantees more robustness and safety in the toughest working environments. Hyundai’s All-Around View Monitoring (AAVM) system acts as an extra pair of eyes, warning you when anything comes within five metres of your machine.

ALL-AROUND VIEW MONITORING

Thinking about adding the HL980 to your team?

Go to www.hyundai.eu/dealers and contact your dealer for more details.

The air conditioning system on this machine contains the fluorinated greenhouse gas refrigerant HFC-134a (Global Warming Potential = 1430). The system contains 0.75 kg of refrigerant which has a CO2 equivalent of 1.0725 metric tonne.

ConstructionWorX Contents

THE OFFICIAL MAGAZINE OF THE CEA

SUMMER 2018 Features 16

Regulars 05 06 39 49 54 57

From the Chief Executive Member News

HILLHEAD 2018

In the Lobby

New products and technology shine through at Hillhead.

International News Hard Data Your Shout

24

32

42

BREXIT UPDATE Grasping the Brexit nettle.

PLANTWORX The future looks bright for show collaboration.

FUTURE FUELS Energy for the future (Part 2)

www.constructionworx.co.uk The Construction Equipment Association (also trading as CEA) Unit 19 Omega Business Village, Thurston Road, Northallerton, North Yorkshire, DL6 2NJ United Kingdom T: +44 (0)20 8253 4502 F: +44 (0)20 8253 4510 E: cea@admin.co.uk W: www.thecea.org.uk

Contents From the Chief Executive...............................................................................................05 Member News......................................................................................................................06 New Members......................................................................................................................09 Member Profile – Hyundai Construction Equipment Europe................12 Hillhead 2018 – New products and technology shine through...........16 Brexit Update – Grasping the Brexit nettle.........................................................24 CECE – European Construction Industry joins forces..................................28 Plantworx – The future looks bright for show collaboration...................32 In the Lobby...........................................................................................................................39 Future Fuels – Energy for the future (Part 2)......................................................42 Skills & Training – Action on Skills............................................................................44 International – Indonesian market offers considerable potential.......46 International – Exhibition News................................................................................49 Technical – Red diesel use for NRMM under threat......................................51 Hard Data – A stable outlook for 2018..................................................................54 Your Shout – David Waine, Product Sales Manager, British Steel.........57 CESAR hits 275,000th Registration at Hillhead.................................................58

MANAGING EDITOR Rob Oliver E: constructionworx@admin.co.uk PRODUCTION Joanna Oliver MBE E: joanna.oliver@admin.co.uk

PUBLISHER Enigma Creative Unit 19 Omega Business Village, Thurston Road, Northallerton, North Yorkshire, DL6 2NJ T: 01609 617117 E: info@enigmacreative.co.uk W: www.enigmacreative.co.uk

ADVERTISING SALES Peter Knott E: peter.knott@admin.co.uk

PRINT & MAILING PlatinumHPL Park House, Hookstone Park, Harrogate, HG2 7DB

CEA/SPECIAL CORRESPONDENT Louise Murphy E: louiseamurphy@aol.com

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: Unit 19 Omega Business Village, Thurston Road, Northallerton, England, DL6 2NJ. © 2018 The Construction Equipment Association. Although care has been taken in preparing the information supplied in this publication, the CEA does not and cannot be held responsible for any errors or omissions and accepts no liability whatsoever for any loss or damage howsoever arising. Any views expressed do not necessarily represent those of the CEA.

SUMMER 2018 3

THE Global Sourcing Specialists!

ATG works and partners with many manufacturers of commodities in China, India and South East Asia to source parts for OEMs around the world in the quarrying, mining, construction and material processing industries.

We manufacture: • Castings & Forgings • Fabrications • Precision Components • Crawler Undercarriage • Conveyor Products All parts are qualified before they leave our factories by our engineering teams on the ground to guarantee their quality and integrity, ensuring your components are right time after time.

ATG Forges Partnerships, Manages All Risk, Guarantees Satisfaction.

Please get in touch – we’ll give you the competitive edge.

Delivering Quality Worldwide ATG Ltd. Global House, Unit 11, Nottingham South & Wilford Industrial Estate, Nottingham, NG11 7EP, United Kingdom t: +44 (0) 330 041 7076 e: enquiries@atg-global.com www.atg-global.com

Global Sourcing Specialists

ConstructionWorX From the Chief Executive

From the Chief Executive Overheard in the elevator... let’s Tweet it!

Rob Oliver

Chief Executive Construction Equipment Association

CEA Management Council Rory Keogh Gomaco International Ltd Alan Batty Bomag (GB) Ltd Sam Mottram Caterpillar (UK) Ltd Nick Ground GKD Technik Ltd Charles Stevenson JCB Sales Ltd Stuart Blackham Komatsu UK Ltd Paul Ross Ricardo Plc Andy Bragg Darchem Engineering Ltd Keith Dolbear TriMark Europe Ltd Mussa Mahomed Nylacast Ltd

The Construction Equipment Association has been around for 70 years plus – but that doesn’t mean that everyone knows what we do. That is the simple fact behind an initiative we will be rolling out over the next few months to better communicate with our members and our wider audiences in the construction sector and beyond.

Back in the day we used to talk about the 30-second “elevator speech” - the time allowed to get your point across. Now our maximum window is the 280 characters allowed in a Tweet. Watch out for some Tweet-sized messages in this issue of Construction Worx.

The switch of the CEA’s PLANTWORX to The East of England Arena & Events Centre, Peterborough, has gained a terrific welcome. In this issue we report on the latest plans for your industry showcase of the best in the world of construction equipment in the UK in 2019. The partnership with the rail sector (the RAILWORX show) offers some real opportunities for our members in helping navigate the route to supplying to the country’s biggest infrastructure projects.

At this year’s major UK show, Hillhead, near Buxton, I was delighted to celebrate the 275,000th machine to be registered and marked under the

CEA’s CESAR anti-plant theft scheme. Fitting that the landmark “CESAR-ed” machine was one of JCB’s latest earthmover models – as we record the success of “yellow goods” in the UK and worldwide markets.

We continue our narrative on the “diesel debate” with the second instalment of Duncan Riding’s exposition of some of the issues around the future propulsion of our machines. What is clear is that our industry has made unprecedented progress in reducing noise, gas and particulate emissions from our engines over the last 15 years – a record that most industries should envy.

It is great to be involved with another programme with the team at Primary Engineer.

Their introduction of fun projects to primary (and above) school-age students has been inspirational.

Judging some of the engineering-related inventions submitted by Midlands’ schools has been a real privilege. It gives me great confidence in the potential of our industry as we welcome our new recruits in the coming years! ■

Kate Wickham MBE Gate 7 Gregg Horne Mecalac CE UK Ltd David Waine British Steel Nick Allen SMT

Honorary President David Bell

Patrons Dr Susan Scurlock Malcolm Harbour CBE

Index of Advertisers Amber Valley............................................. 14 A T Global................................................... 04 Bauma China Euro Pavilion.................. 48 Bill Bowden Event Logistics Ltd............ 38 BKT Europe SRC........................................ 13 Boss Plant Sales Ltd................................. 31 Bunkabin Ltd............................................. 38 Brigade Electronics.................................. 38 BSP International Foundations............ 31 CEA............................................................... 31 Containex m.b.H...................................... 14 Datatag...................................................... 59 Digbits Ltd.................................................. 29 Engcon........................................................ 23

Fairway Hydraulics Ltd......................29,37 Feather Diesel Services Ltd.................... 31 Garden & Hire Spares Ltd....................... 52 GKD Technologies Ltd............................. 50 Gomaco International Ltd.................... 56 Gordon Equipments Ltd......................... 25 Hill Engineering Ltd................................. 11 Hyundai...................................................... 02 JCB Insurance Ltd..................................... 50 Kocurek Excavators Ltd.......................... 25 Marubeni Komatsu Ltd.......................... 60 Mecalac Construction Equipment...... 21 Morris & Company Ltd........................... 37 MP Filtri....................................................... 23

Nylacast...................................................... 07 Off-Highway Reasearch......................... 56 Perkins Engines....................................27,41 Plantworx................................................... 35 RDS Technology Ltd................................ 56 Red Rhino Crushers................................. 45 Rubbernek Fittings Ltd........................... 45 SMT (Volvo)............................................... 19 Webtec........................................................ 45 FOR ADVERTISING SALES Contact Peter Knott at peter.knott@admin.co.uk

SUMMER 2018 5

Member News ConstructionWorX

Member News JCB announces £50 million investment in new British plant JCB recently announced an investment of more than £50 million in a new British plant which will create hundreds of jobs and double production of cabs used on its machines.

Work is under way on a 350,000 sq ft facility for JCB Cab Systems adjacent to the A50 in Uttoxeter, Staffordshire, next to two existing JCB plants. The hi-tech factory will have the capacity to produce around 100,000 cabs a year. It will include a computer-controlled production line, fully-automated painting facility and robotic welding and will create more than 200 new jobs by 2022.

JCB CEO Graeme Macdonald said: “This new factory will be the most advanced and productive cab facility in the world and will bring even greater levels of efficiency to the business. The investment is one of the biggest in the company’s history and underlines our commitment to manufacturing in Britain and in our home county of Staffordshire.”

Burton and Uttoxeter MP Andrew Griffiths is Parliamentary Under Secretary of State at the Department for Business, Energy and Industrial Strategy. He said: “This is fantastic news for Uttoxeter, for Staffordshire and also the wider Midlands’ economy. This investment represents a massive boost for the area and underlines what a great place Staffordshire is to do business. It’s wonderful to see JCB continuing to invest in the county and in British manufacturing – something that can only attract even more inward investment.”

JCB Cab Systems currently employs more than 400 people at its existing site in Rugeley, Staffs. The new plant is scheduled to open in the summer of 2019. JCB Cab Systems’ General Manager David Carver said: “While new jobs will be created, moving to the new factory will enable us to double capacity without doubling the workforce thanks to high levels of automation. The whole plant is being designed to improve productivity, reduce waste and provide unprecedented quality levels.” ■

Molson acquire Finlay Group Ltd and secure Distribution rights for Terex Finlay in England and Wales Molson announced at the recent Hillhead exhibition the acquisition of Finlay Plant (UK) Limited and its subsidiary and associated companies (“Finlay Group”), a long-established equipment Dealer of Terex Finlay products for England and Wales. Through this acquisition, Molson have successfully secured the distribution rights for the complete range of Terex Finlay mobile crushing, screening and conveying equipment for England, Wales and Channel Islands.

The current Finlay Group Sales Hire and Service organisations will remain largely unchanged. New key resources have already been added to further enhance Finlay Group’s regional operations. Aftermarket parts requirements will continue to be provided by Sure Equipment Limited.

The addition of Terex Finlay products will directly replace the Keestrack range in the Molson portfolio. Molson have been a Keestrack and OM dealer for 11 years and will continue to maintain a strong relationship, whilst supporting customers with warranty work, parts and servicing requirements on legacy machines.

Robin Powell, Managing Director of Molson Group commented: “We are delighted to have acquired the Finlay Group and look forward to welcoming their experienced team into our Molson organisation. The success of the Finlay Group has been built upon a customer-centric philosophy to provide innovative products and solutions to the market.

Their commitment and dedication to exceptional customer service directly correlates with our own culture and we are delighted that they have joined our team”.

David Statham, Managing Director of Finlay Group: “For almost 50 years the Finlay Group reputation has been built on the diligence of our

6 SUMMER 2018

people and their respect for our customers. Molson Group is also highly respected and there are clear synergies between our organisations for our mutual customers. I’m very excited for the future direction and the growth expectations for both businesses I look forward to ensuring a smooth transition for our staff and our clients Kieran Hegarty, President – Terex Materials Processing commented “The Molson Group are already a valued Terex partner, with distribution rights for other Terex lines in England and Wales. This acquisition allows us to strengthen our relationship with this vibrant and progressive business.

Terex’s continued success significantly relies on working in partnership with professional and customer focused Dealers. Molson have proved to be just that in the past and we look forward to growing with them in the future.” ■

LIGHTWEIGHT. LOW FRICTION. CORROSION RESISTANT. CUSTOM MADE.

HOW CAN NYLACAST PRODUCTS ENHANCE YOUR PROJECTS? SPEAK TO OUR SALES & ENGINEERING TEAM +44 (0) 116 276 8558 construction@nylacast.com www.nylacast.com/projects

Member News ConstructionWorX

MOVERS & SHAKERS New Sales and BD Manager for Off-Highway Vehicle Applications at Elobau

#freepublicity!

As well as keeping our colleagues in the press up to speed on CEA activities, the CEA’s talented Press Officer, Louise Murphy, is a bit of a whizz at social media. She is always happy to retweet or share your company’s stories to thousands of followers via the CEA’s social media channels.

All you need to do is include @ConEquipAssoci or @louiseamurphy to alert her to your posting and she will do the rest. It’s that simple. ■

James Fisher Prolec and Tolk and Dusterhüs further cement long standing relationship Tolk and Dusterhüs have recently cemented a long-standing partnership with James Fisher Prolec after signing a distributor agreement which will allow them to supply Prolec’s innovative machine productivity and safety systems in Germany.

The two companies have a long-standing relationship, with Tolk and Dusterhüs specialising in control systems and machine control in the construction industry since 2006, making it a natural fit for providing excellent support and service to James Fisher Prolec customers in Germany.

Putting in place an official agreement between the two companies will benefit customers by ensuring access to the highest possible service standards as well as providing wider availability of James Fisher Prolec safety systems. ■

Mecalac strengthens its business development in the Americas Export development is one of the priorities for the French Mecalac Group who have been designing, manufacturing and selling machines dedicated to urban construction sites for more than 40 years. With this as a focus Mecalac welcomed its dealers from the Americas: Canada, USA, Mexico, Colombia and Chile to its premises in Annecy-le-Vieux.

In 2016 Mecalac North America, a new commercial subsidiary of the Mecalac Group, was established, and the first dealer LHE in Boston launched the sale of Mecalac excavators from the MCR range of crawler skid excavators. From that time the distribution network has been extended with the aim of maximum coverage both North and South on the American continent.

The sales have since extended to the entire Group product range, from wheeled excavators and loaders to backhoe loaders, dumpers and compactors. ■

8 SUMMER 2018

Elobau UK announce the appointment of Scott Trickett to the UK team in a new role of sales and business development manager for mobile and off-highway vehicle applications.

Scott brings over 20 years of experience and knowledge of working within Tier 1 global automotive manufacturing organisations, having held roles previously at GKN and Cummins amongst others. Scott will be responsible for managing key accounts as well as developing new business in the construction industry.

Matt Owen, managing director of elobau UK said “This is an exciting time for elobau UK, as we are developing our brand and increasing our presence in the UK construction market. Scott will play an important role in helping us drive the brand forward and I wish him every success in the role”. elobau UK offer a range of robust and reliable, ergonomically designed and user friendly operator controls, as well as level measurement and sensor products that are designed for the off-highway industry.

As well as offering standard products, most products are customisable and can be designed to fit your needs.

Kubota Holdings Europe appoint new MD Kubota Holdings announce the appointment of David Hart as Managing Director of Kubota (UK) Ltd. With over 28 years of leadership experience, David Hart brings a wealth of knowledge and experience of the agricultural and construction industries.

Dai Watanabe, President & CEO of Kubota in Europe, states: “We are very proud of the fact that we have a leading market position in the UK & Ireland with our current product portfolio. Our ambitions reach even further than that. With David on board we have a leader that can support that ambition by bringing his extensive experience and knowledge to identify and exceed our dealers and customers’ needs and requirements.”

On his appointment, Hart said: “Kubota has a deserved reputation as market leader in many areas. We have a big opportunity to grow further and continue to diversify into new sectors, bringing our strong business values and quality delivery to match the demands and rightly high expectations of our dealers and end user clients.

Kubota’s brand, values and proven quality are facets I have respected as a competitor over many years, and I am excited to be part of the team that will take these to the next level.”

ConstructionWorX New Members

A New Member Hat Trick for the CEA

Eminox is committed to helping the construction industry cut emissions from heavy machinery.

In this issue of Construction Worx we would like to welcome Eminox, Holmbury and HYTORC who have joined the membership ranks at the Construction Equipment Association. Here’s a brief introduction to our new members.

Founded in 1978, Eminox is part of the Hexadex Ltd group, the company’s research and development, manufacturing facility and global HQ are all located in the UK. Eminox says it's committed to helping the construction industry cut emissions from heavy machinery. Over the past 40 years the company has used its engineering expertise to develop exhaust and after treatment systems to meet the latest Euro, Stage and Tier legislation for trucks, buses and NRMM. This has given Eminox a wide range of experience with both diesel and gas engines, with their exhaust and after-treatment systems currently being used by OEMs producing Stage V emission control systems for construction equipment, which includes articulated dump trucks, excavators and mobile cranes.

Governments around the world have committed to a zero-emissions future – but in many cases deadlines are decades away. Cyril Journoux, OE Sales & Marketing Director Eminox said, “We want to help the construction industry bridge the gap to the introduction of legislation in 2040, ensuring that emissions can be reduced more quickly, improving air quality and saving lives. To deliver this requires high levels of engineering skill and understanding of the construction application itself – our experience gives us the ability to assist manufacturers across a wide range of projects.”

One of the key areas Eminox is involved in is gas technology, which has been identified by the European Union as providing a significant

method of cutting CO2 emissions. “We’re already working closely with leading manufacturers of gas powered machinery, including many CEA members, acting as a development partner to help them introduce innovative technologies, meet their emissions challenges and comply with current and future regulations.

Whatever the future brings for construction equipment emissions reduction, we’re confident that we’re positioned to assist.” Added Mr Journoux.

Holmbury is a name long associated with quality, high performance and service within the construction industry. A customer portfolio including global giants such as JCB, Caterpillar and Komatsu have certainly contributed to Holmbury being regarded as a premium product supplier within the quick release coupling world.

The Holmbury Group is a family run company with their head office in Tunbridge, United Kingdom. Established in 1982 by founder (and now Chairman) David French the company quickly became recognised for their high quality and reliable products. The company is best known for its innovative flat face coupling design, launched in 1984, the HQ Series is still one of the preferred quick release coupling solution for many heavy construction equipment OEM’s. The unique design of the flat face prevents inclusion of air and contaminants whilst preventing fluid loss during disconnection.

Today, Holmbury is a global provider, not only of the HQ Series, but

SUMMER 2018 9

New Members ConstructionWorX

Holmbury’s Managing Director, James French says, “Membership to the CEA enables us to stay at the forefront of technology.” many types of quick release couplings, check valves, ball valves and other hydraulic components. In 2003 driven by the need to respond rapidly to its now worldwide customer demands, the company set up their North American operation, located in Eastlake, Ohio. Holmbury continues to expand globally, providing customers with an everincreasing range of hydraulic system solutions.

“Keeping in touch with the world of our customers is something we take very seriously.” Holmbury’s Managing Director – James French stated. “We recognise membership to the CEA enables us to stay at the forefront of technology, market trends, news, and vital economic statistics and are proud to now be members.”

HYTORC say it makes industrial bolting safer and simpler. With 50 years of experience focused entirely on developing the highest quality industrial bolting systems, HYTORC believes that it is the most trusted name in the industry.

The company has already worked with a number of CEA members, on a global basis and have provided solutions to optimize the safety, quality and schedule of the members preceding bolting practices and techniques. HYTORC’s Client Relations and Marketing Manager, Stephen Taylor said, “We believe that being part of the CEA will provide us with the opportunity and platform to promote our solutions further to the OEMs in the UK and show how our solutions can enhance their products and projects. Our aim is to cultivate long lasting partnerships with all the members.”

Mining and construction equipment is the ultimate test of bolted joint integrity - extreme loads and vibration require every bolted joint to be tightened with even and accurate bolt load to eliminate the possibility of nut loosening, which can lead to damaged equipment and/or injuries.

Mr Taylor added, “We have a vast range of hydraulic, pneumatic and electric torque tools suitable for all these applications, which have been proven to reduce maintenance times and assure a permanently bolted joint. Our latest product line features patented industry-firsts like hands-free operation, to keep tool operators at a safe distance from the application, on-board documentation systems, to provide job accountability and assurance. Also, industry-leading bolt load accuracy to reduce nut loosening and joint failure.”

“Our washer is the simplest upgrade for instant improvements in safety, speed and accuracy. This unique, patented system eliminates the need for reaction and fixtures which are the most common cause of injury on bolting jobs.” Concluded Mr Taylor. ■

Mining and construction equipment is the ultimate test of bolted joint integrity.

Construction Equipment Association @ConEquipAssocia

A 2017 Backhoe Loader emits 35 times less NOx than one from 1999!

Summer 2018 10 SUMMER 2018

SIMPLICITY REDEFINED

MANUFACTURED IN THE UK

INTRODUCING THE NEW TEFRA FULLY HYDRAULIC COUPLER for 1.5T to 2.5T mini excavators

1.5T-120T COUPLERS Increasing safety, reducing downtime, isn’t it time you chose TEFRA? 028 3025 2555 | enquiries@hillattach.com | www.hillattach.com

Member Focus ConstructionWorX

The Tosca carries 6000 cars and weighs in at 100,000 tonnes.

When the boat comes in Hyundai machines roll off the ship at Tilbury Docks In this issue of Construction Worx we focus on member company Hyundai Construction Equipment Europe – but not in the traditional sense! Louise Murphy took a trip to Tilbury Docks to see the manufacturers machines arrive in the UK following a month-long journey by sea from South Korea.

Over 800 Hyundai construction machines came into the UK last year, including crawler excavators, wheeled excavators and wheeled loaders.

The machines are all manufactured at Hyundai’s factory in South Korea - from here they begin their 5,676 mile journey (approx.) across the sea - from the South Korean Port of Ulsan to the UK’s Tilbury Docks in the heart of Essex.

The most recent ship to make the journey was the Tosca, owned by Wallenius Wilhelmsen, and chartered by Eukor Car Carriers, based in Seoul in South Korea. The ship weighs in at a whopping one hundred thousand tonnes and has the capacity to carry 6000 cars. Amongst the cargo on the latest voyage, in addition to cars and used excavators, were 47 Hyundai machines, including a batch of 19 of the brand new 13-tonne HX130LCR excavators.

The journey from the Port of Ulsan to Tilbury Docks took the Tosca an entire month to reach its destination, passing through the Suez Canal stopping in Germany, the Netherlands, and Belgium to collect more cargo.

Considering it’s such a huge ship - with12 separate decks - there are just 23 crew on board. Many of the crew have been on board the Tosca since January this year and are expected to disembark in July. The majority of the crew are sourced from the Philippines and Mynamar, formerly Burma, in South East Asia.

12 SUMMER 2018

The HX520 is the largest Hyundai on this voyage.

A LONG WAY

TOGETHER

All-Steel casing Extra-long tread life Excellent traction Superior stability Steel belts

For info: europe@bkt-tires.com

Our core business: • Modular buildings • Office cabins • Sanitary cabins • Storage containers • Shipping containers

Contact us: Free Phone: 0800 458 0386 • E-Mail: sales@containex.com www.containex.com CTX_Inserat Construction WorX (190x133)_118-rz-korr.indd 1

14 SUMMER 2018

08.06.18 15:22

ConstructionWorX Member Focus

The HX140L rolls off the Tosca at Tilbury Docks

Interestingly – even the lowest ranked member of the crew gets paid more than a bank manager would in his native country as being a crew member is considered a very prestigious job. However, instead of using their salaries for their own gains, often they support an entire village in their home town.

There are five ships which come into Tilbury Docks per month and they are led into the harbour by two tug boats and a pilot. Getting into Tilbury is a tad on the tight side - for example - the Tosca is 32.5 metres wide - the lock is just 33.5 metres wide – so there’s just one metre to play with. There’s little room for error and it takes immense skill to get her into dock safely and unscathed. All the Hyundai machines are lashed to the vessel with enormous chains to stop them moving around the ship during transit.

The Tosca came into Tilbury Docks at 10:00hrs and following an audit by the ship’s Captain, it was due to leave again at 20:00hrs the same day. The ship is MK Shipping’s responsibility - Alistair Flint, who has been with MK Shipping for 21-years, is charged with the vessel, its crew and cargo. Once docked, and following strict security checks, Alistair will go on board and ensure all is in order. Security is extremely tight on the ship due to the risk of a terror attack following the 9/11 disaster.

The fear is a terrorist could board the boat and take explosives to Westminster on its departure.

The Hyundai excavators come off the ship in one’s and two’s as there is not an operator for each machine on board. The cars come off in fleets and discharge around 100 per hour. The drivers and operators are locals and are employed by the Port of Tilbury – there are usually 20 men/women in total.

When the machines are driven off the boat they are stored overnight in a holding area adjacent to the harbour. The following day they are loaded onto low loaders and driven to MK Shipping’s yard. They are delivered to the yard on low loaders as the excavator tracks would dig up the tarmac enroute! The UK and Ireland Hyundai dealers then arrange collection of their machines and another journey begins for the Hyundai’s. So next time you see a Hyundai machine working onsite, at an exhibition or a dealer’s yard – you now know how far its travelled to get there!

MK Shipping, located at Tilbury Docks, is a family run business established in 1995, the company, which trades on its reputation of being a complete independent port agency, has been working with Hyundai for more than ten-years. The company is an agent for the Tosca and other ships that deliver the Hyundai brand. Hyundai approached MK Shipping to handle its cargo into the UK and MK were more than happy to oblige.

MK Shipping was set up to offer owners/principals an independent

The machines are lashed to the vessel with chains to prevent movement in transit.

alternative to protect their interests and serve their vessels when in port rather that agencies that are part of a large group. Since then the company has progressed to become one of the major ship agencies operating in the Port of London serving Tilbury, Thamesport and all of the other riverside terminals on the river Thames.

MK act as port agents for many of the major container shipping lines together with Ro/Ro, Car Carriers and Bulk vessel operators. ■

Alistair Flint MK Shipping checks the Hyundai cargo before it leaves the yard destined for the UK and Irish dealers.

The new HX130LCR reaches UK soil.

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Hillhead 2018 ConstructionWorX

New products and technology shine through at Hillhead Earthmovers magazine correspondent, Nick Drew was the man on the ground for Construction Worx at the recent Hillhead exhibition – here he takes a look at some of the new kit and innovations at this year’s record breaking event, from remote control dozers to a 46 tonne electric crusher.

Wall to wall sunshine and record temperatures made this year’s Hillhead Quarry and Mining Show the hottest ticket in town on the UK show circuit. Those who made the biennial pilgrimage to Tarmac’s Hillhead Quarry near Buxton were treated to a feast of new products and emerging technology and left with beaming smiles if not a little weary from exploring the extensive showground in plus 30 degree temperatures.

This year’s event was the largest ever, 10% larger in fact according to the organisers, with 525 companies all taking space across the showground which covers an area of around 140,000m². Indoor space was also increased this year with the registration doubling in size to accommodate more exhibitors to the sell-out event.

One of the highlights of Hillhead is the working demonstrations at the live quarry face where some of the larger kit are deployed to break, rip, and load rock and aggregate into a wide variety of processing machinery and equipment. Although focusing on the mining and

16 SUMMER 2018

aggregate industries the show is also a popular showcase for the global machinery industry to show off their latest construction machinery products.

Keestrack, the Belgian-based mobile crushing and screening equipment specialists, presented their revolutionary H4e mobile cone crusher at Hillhead 2018. Making its UK debut, the highly compact plant with optional integrated pre-screen and three-deck hanging screen was displayed as a fully hybrid electric version, offering important energy savings in secondary or tertiary crushing. The fully hybrid 46 tonne H4e cone crusher highlighted Keestrack’s philosophy of delivering the most flexible mobility with consequent productivity.

For flexible autonomous operation, the Keestrack H4e is equipped with an on-board diesel engine. Without starting the diesel, this setup allows the plant to operate fully ‘plugged in’ from the mains or from an external genset, resulting in energy cost savings of up to 70% compared with conventional diesel-hydraulic plants.

ConstructionWorX Hillhead 2018

What if your trucks could respond to calls to the shovel, move into position, haul to dump points and even report for maintenance - all without an operator on board? This is all now possible and on the Finning Equipment Solutions stand there was some amazing Cat Command autonomous technology on display, where visitors were able to get involved too.

This Cat Command solution is more than just an operator-free system.

It takes advantage of the most sophisticated technologies available to deliver a next-generation haulage solution - one that boosts safety, productivity and availability on busy mine sites, especially those in difficult or remote locations. With autonomous hauling, the future truly is here!

Finning Equipment Solutions gave visitors to the stand the chance to control one of Caterpillar’s largest tracked type dozers, the D11T which tips the scales at 229800.0 lbs and was located over 5000 miles away in Arizona, USA! This kind of automation is changing the way companies work, helping to keep operators out of harm’s way, but still in control via remote control. One visitor was heard to say, “To be able to operate a machine like this remotely was nothing short of mind blowing.”

dumper, the WL20e, wheeled loader and the E17e mini excavator which is said to operate just like a conventional diesel-powered unit, but virtually silent while producing zero emissions!

More ground-breaking technology was displayed by Austrian based manufacturer Wacker Neuson, with the unveiling of not one but three, fully-electric, battery powered compact machines, the DW15e site

SUMMER 2018 17

Hillhead 2018 ConstructionWorX

cabbed variant, power comes from the ever-popular Stage V emissions compliant Kubota 3-cylinder engine. For what is officially a conventional tail swing excavator the E26 has an extremely minimal tail overhang of just 70mm.

Fully cabbed forward tipping dumpers are certainly a hot topic at the moment and French compact equipment manufacturers Mecalac were keen to show their take on them with a style we have come to expect from this company. The 6MDX an all-new 6 tonne swivel skip model was displayed on the stand.

The long awaited and much anticipated fully cabbed version of Wacker Neuson’s dual-view site dumper concept made its first public appearance in the UK at Hillhead. Available with payloads from six to nine tonnes, the dual-view is said to offer new standards of site safety and flexibility on site. Operators are able to change the seat and console position through 180 degrees offering the very best visibility in either direction.

Bobcat displayed examples of its new R Series mini excavator range including the E26 which features the company’s new patented cylinder-inside-boom (CIB) design. Tipping the scales 2,560kgs in its

18 SUMMER 2018

Doosan are celebrating 40 years since the launch of the manufacturers construction equipment range this year and presented a number of its latest products at the show including a new version of its 30-tonne capacity articulated dump truck the DA30.

Coupler and bucket manufacturer Hill Engineering chose Hillhead to showcase its new 2T TEFRA fully automatic hydraulic quick coupler which is designed for mini excavators from 1.4 to 2.5 tonnes. A keen selling point of the TEFRA product is that it only includes three moving parts.

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Hillhead 2018 ConstructionWorX

Tiltrotator’s are the must have attachment in the UK market at the moment and the increase in uptake in the last 12 months has been nothing short of phenomenal. Swedish manufacturer Engcon were once again displaying various examples from their range including the EC209 with EC-Oil for ease of changing hydraulic attachments and detachable gripper. The company also demonstrated the system fitted to a JCB X220LC hydraulic excavator.

A&Y Equipment are the recently appointed dealers for the German built Bergmann range of site dumpers. The company displayed both wheeled and tracked models including this 4010 tracked model which also features a swivel skip arrangement.

Talking of tiltrotators, over on the SMT GB the dealers for Volvo Construction Equipment, the company displayed its latest reduced radius wheeled excavator the EWR170E with a Steelwrist tiltrotator fitted. Fitted with the increasingly popular TAB boom, the 18-tonne class machine is said to boast a 10% rise in fuel efficiency.

Following its debut appearance at ScotPlant and Intermat earlier this year, Hyundai displayed its new 13 tonne class compact radius offering the HX130LCR. The HX130 LCR excavator is powered by a 73.6 hp (55 kW) Perkins 854F Tier 4 final / Stage IIIB compliant diesel engine. According to the manufacturer, when it comes to performance and productivity, the engine and hydraulic system of the HX130 LCR are said to be unbeatable. Its ‘Diesel Particulate Filter (DPF)’ equipped engine delivers optimum power and fuel efficiency, without the need for SCR. So, users do not have the hassle with AdBlue.

Cheshire based attachment specialists Worsley Plant displayed the latest Lehnhoff Variolock hydraulic quick coupler system, which allows operators to change hydraulic tools in just 15 seconds. This particular example was displayed with a Rotar selector grab underneath and has been sold to Austin Wilkinson Demolition.

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Hillhead 2018 ConstructionWorX

Bell Equipment UK the UK arm of South African manufacturer Bell Equipment showcased examples from its Mercedes powered E-Series articulated dump truck range with the mighty B60E taking centre stage.

At the other end of the scale the company displayed its compact B20E ADT, which is proving popular in difficult ground conditions thanks to its low ground pressure capabilities and manoeuvrability. The company also displayed examples from its wheeled loader range including the L1706E.

JCB certainly brought the X Factor to Hillhead with the presence of their brand new 220X 20-tonne class excavator which was drawing large crowds to the stand across the 3-days of the show. Variants of the new excavator were shown on the demonstration plot along with a whole host of other products from the Staffordshire based manufacturer, including the revolutionary Hydradig 110W and the Hi-Viz 7 tonne dumper.

Rototilt UK had an extensive presence at Hillhead and one of the star attractions was what the company describes as the world’s largest tiltrotator, the new R9 model designed for excavators ranging from 3040 tonnes. The R9 features breakout forces up to 500 kNm, redesigned hydraulics for high flows and a powerful worm gear with dual hydraulic motors. The unit also features Rototilt’s SecureLock safety lock which ensures attachments are always properly coupled. The R9 is seen here in Stockholm at the Massan Massan show a couple of weeks previously.

On the demo plot adjacent to Rototilt UK's stand operator Adam Howarth was busy putting his regular mount, a Rototilt equipped Hitachi

22 SUMMER 2018

Zaxis 225US LC through its paces showcasing the flexibility that a Rototilt tiltrotator can offer the end user. Adam's set up also includes Rototilt Positioning Solution and Automatic Grade Control with a Leica 3D GPS-system.

Rototilt UK also chose Hillhead to showcase its new R1 model designed for mini excavators ranging from 1.5 tonnes up to 3.5 tonnes.

The UK division of Finnish company Sandvik Mining and Rock Technology chose Hillhead to showcase a number of new products including the QH332 DDHS Hydrocone crusher which features an all new modular hanging screen which was working on the demonstration plot.

Caterpillar dealers Finning UK and Ireland were putting the new Next Generation Cat 320 hydraulic excavator through its paces at the quarry face demonstration plot behind the stand. The new Cat 320 raises the bar for efficiency with integrated Cat Connect Technology that advances productivity gains. Standard built in technology combined with lower fuel and maintenance costs, will, according to the manufacturer deliver lowcost production in medium- to heavy-duty applications.

A major talking point at the show was the EU Stage V emissions standard, which comes into effect in 2019 and 2020 across the power spectrum.

Finning chose Hillhead to show the new Cat C9.3B industrial engine, compliant with EU Stage V emissions standards. The six-cylinder, 9.3litre engine builds on the capabilities of previous Cat models that have logged more than 200 million hours in real-world, off-highway applications, while meeting the stringent emission requirements of the upcoming EU Stage V standards. ■

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Brexit ConstructionWorX

Grasping the Brexit nettle

By Tom Lawton, partner and head of manufacturing at accountancy and business advisory firm BDO. With less than a year to go, some would say politicians still seem more focused on playing internal politics than delivering the sensible, strategic Brexit that businesses need.

More clarity is essential because Brexit uncertainty is increasingly influencing business decisions. In the second quarter of 2018, BDO’s European Export index shows UK export growth slowing (for a fifth consecutive quarter) while European exporters are starting to flourish again. The recent warnings from global companies about migrating their production from the UK must not be ignored.

For the manufacturing sector as a whole, business confidence is just about holding up as we head into the second half of the year – but sentiment does seem to be weakening.

A combination of easing global growth and political uncertainty at home and abroad, means the construction equipment sector and it’s large and varied supply chain - is more subdued than it has been for some time.

In addition, investment in the sector has fallen to the lowest level for a year.

This suggests that Brexit negotiations are weighing heavy on the minds of decision makers. It is now more important than ever for the Government to not lose sight of the needs of businesses - particularly exporters.

At the time of writing, we await the Prime Minister’s promised White Paper setting out its plan for the UK’s future trading partnership with the EU. Yet a ‘third way’ idea has emerged, which involves a complex customs arrangement supported by technology that would allow the UK to mirror EU tariffs on goods that pass through the UK to the EU but set its own rates on goods that are imported and consumed in the UK. Even if this is adopted, it is hard to see such a government IT project being in place by 2022 as suggested.

However, whatever plan the UK Government finally presents to the EU, ‘nothing is agreed until everything is agreed’ - so ‘hard’ Brexit in 2019 is still theoretically possible.

IMPORT AND EXPORT CHANGES Whether it is on (a hard) Brexit day or after a prolonged transition period, it is already clear that some basic administration issues will still arise on leaving the EU. UK arrivals of goods from EU countries will become imports for indirect tax purposes, and UK dispatches of goods to EU countries will become exports. That means EU imports will require some form of customs import declaration and possible payment of customs duty and import VAT before the goods are allowed in.

Instead of accounting for acquisition tax on the VAT return, import VAT (where applicable) would be payable on arrival of the goods and there may also be customs duty liabilities. While deferment and warehousing procedures may mitigate the cash flow impact, these will require additional administration to ensure compliance.

On leaving the EU, exports sent to other EU countries will remain zero-rated for VAT purposes, but more complex export declarations can be expected.

24 SUMMER 2018

Equally, UK businesses may not benefit from VAT simplifications such as triangulation and call-off stock. They may need to register for VAT in EU countries and it may become harder to reclaim VAT incurred in Europe.

Manufacturers should expect both imports and exports to be delayed as HMRC gets used to dealing with the huge increase in transactions to process: a challenge for those that currently rely on just-in-time (JIT) manufacturing systems.

Any final trading deal may well include some tariffs as the UK will be a ‘third’ country under EU rules. Even if the UK enters into a free trade agreement with the EU, businesses may not automatically benefit from duty-free trade in goods. They may need to ensure their goods meet rules of origin to demonstrate sufficient economic value to benefit from duty-free movement between the EU and UK. Exporters should remember that when the UK leaves the EU, the UK will no longer benefit from the EU’s FTAs with third countries and trading blocs so exports to non-EU countries may be affected (negotiating replacement FTAs will take time).

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Brexit ConstructionWorX

DATES FOR YOUR DIARY 18 October 2018 EU summit on broad terms of forward looking UK-EU trade deal 31 October 2018 Deadline for finalising withdrawal and transition agreement 13 December 2018 Further possible EU summit on forward looking UK-EU trade deal Early 2019 Parliaments of EU member states vote to ratify withdrawal and transition agreement OR Possible EU summit to extend the two-year negotiating deadline 29 March 2019 Brexit day and transition arrangements start (if agreed) 2019 – 2020 Negotiations to finalise forward looking UK-EU trade deal 31 December, 2020 Any transition arrangements due to end 1 January 2021 New UK-EU trade deal commences or backstop arrangements start 31 December 2021 Backstop arrangements end (according to UK) 1 January 2022 New UK-EU trade deal commences (according to UK)

MEETING RULES OF ORIGIN Under a potential EU-UK post-Brexit Free Trade Agreement (FTA), the economic origin of components and machinery will be critical – it will determine whether or not they benefit from tariff free movement between the EU and the UK. Typically, the key rule of origin for equipment manufacturers is a ‘minimum originating content’ rule (ie the % of the component manufactured in the EU or UK). Manufacturers will need to be able to interrogate their production records to calculate and demonstrate that their products have sufficient qualifying economic content – a potentially complex and time consuming exercise. ■

Action plan Whatever trading arrangements are (or are not) finally agreed, businesses must grasp the Brexit nettle now by: ●● ●● ●●

●●

●●

Carrying out a detailed review of your supply chain to minimise current and future duty costs Reviewing the origin of parts and components to determine if they are likely to meet the rules of origin Considering trader assurance accreditation such as Authorised Economic Operator (AEO) to minimise commercial risk and the cost of supply chain disruptions on JIT movements caused by customs delays Considering implementing duty reliefs such as customs warehousing and processing reliefs to offset potential postBrexit duty cost increases on UK-EU goods movements Road test your Brexit position at www.bdo.co.uk/start-brexitplanning.

About BDO BDO is an accountancy and business advisory firm with 18 offices in the UK and more than 1,500 offices worldwide. With sector specialists across the globe, BDO provides solutions to industry issues, ranging from sector-specific tax, audit and business advice to patent box, research and development claims and acquisition opportunities to help clients grow in the UK and overseas.

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Summer 2018 26 SUMMER 2018

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CECE ConstructionWorX

European Construction Industry joins forces to urge for a Digital Adoption CECE, the Committee for European Construction Equipment in partnership with most of the major European construction industry associations, have joined forces to draft and agree a The European Construction Industry Manifesto for Digitalisation. The Manifesto calls for a strong political leadership from the EU, an appropriate regulatory framework on data policy and budgetary focus on digital skills, R&D and IT infrastructure.

We stand on the verge of a digital revolution driven by technological breakthroughs such as artificial intelligence (AI), the Internet of things (IoT), 3D printing and cloud computing. The construction industry needs to react to become more efficient, create innovative products and improve processes. Now, more than ever, a digital manifesto for the construction industry needs to reach the EU policymakers.

The construction value chain is a key component of the European economy in terms of GDP creation and employment. The megatrend of digital transformation affects the entire construction industry, constituting an important opportunity to adapt to emerging business models and increase overall productivity. “The importance of an effective regulation to ensure the sector’s competitiveness by adoption of the digital transformation is our key task as industry representatives” says CECE Secretary General, Riccardo Viaggi. “It is self-evident that the infamous fragmentation tendencies of the construction industry cannot go on when facing digitalisation. Collaboration has become the new buzz-word across the entire construction value chain – this is why I think that the most important element of the Manifesto is the pledge to collaborate among industry partners at the EU level to make this a reality ” says Viaggi.

Digitalisation of the construction industry responds to the sector’s main challenges, such as lack of skilled workforce, energy efficiency, lagging productivity, sustainability and many others. Building on Europe’s

28 SUMMER 2018

strength in the field of engineering and design, a strong network facilitating transfer of knowledge, expertise and capabilities needs to be put in place at the European level. Therefore, support from the European Institutions is a crucial step in creating this inclusive, forward-looking strategy. Policy makers need to prioritize this initiative within Horizon Europe, which will follow the Horizon 2020 framework. Anticipating its new focus, the construction sector is uniting its voice and urges the European Commission to focus the framework programme on digitising Europe’s construction sector to strengthen its industrial competitiveness and global leadership.

Correctly perceiving the importance of the digitisation of construction, the European Commission already foresaw a €1 million allocation within the Digitising European Industry to develop the architecture for a construction digital industrial platform. It is a drop in the ocean, but a good starting point for the sector. With the development of an Inclusive Digital Construction Strategy, Europe has the opportunity to create more jobs, stimulate economic growth and position itself as an innovative technology leader on the world stage. ■

CECE and the rest of industry is ready to play its part To view the European Construction Industry Manifesto for Digitalisation, see: https://www.cece.eu/stream/ the-european-construction-industrymanifesto-for-digitalisation

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CECE ConstructionWorX

The CEA is a member of the Committee for European Construction Equipment (CECE), representing the UK CE sector in all things EU related including lobbying the Commission and EU Parliament, helping to draft technical standards and scrutinising draft legislation. This valuable work will continue after long Brexit, to ensure that UK manufacturers continue to have a very necessary seat at the negotiating table companies wishing to export into the EU. CECE holds a biennial high level congress, this year it takes place in Rome 17-19 October. Venue: the Vittorio Veneto hotel, located in the heart of Rome, next to the beautiful Villa Borghese Park.

CEA members are invited to participate, listening to a range of expert speakers and panels and network with senior delegates drawn from CECE national members together with parliamentarians and representatives of associated sectors. Further details - www.cece.eu/congress.

Why attend Understand how changing customers can affect your business Prepare for times of disruptive change and (digital) transformation ●● Learn from the compelling cases of competing OEMs ●● Hear what key customers expect from industry ●● Develop your network among the leaders in the sector

Programme Highlights High-level speakers, case studies, latest market intelligence Economic Forum, Technical Forum, Regulatory Update ●● Gala dinner, networking breaks, Rome visiting opportunities

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The sun shone on guests at the Plantworx and Railworx launch at the Barbican Centre!

The future looks bright for show collaboration The sun shone on the Barbican Centre in Central London last month as members of the UK and Irish Press alongside, Plantworx and Railworx team members, CEA (Construction Equipment Association) Directors and The East of England Arena & Events Centre staff gathered for the official launch of the Plantworx and Railworx show, which will be taking place at The East of England Arena & Events Centre in Peterborough from 11th - 13th June 2019.

Rob Oliver, Chief Executive of the CEA (Construction Equipment Association) kicked off the day’s proceedings and promised an 'exciting new venue and a bigger and better show'. JCB Director and CEA Honorary President, David Bell, who is a true advocate for the show, was next to address the audience.

In his speech David said, “Manufacturers have to find the best value for money in spending their marketing budgets, and today with so many digital ways of reaching our customers, plant and machinery shows have to do what can’t be done digitally. So Plantworx and Railworx provides us with the perfect platform to see machines in the ‘flesh’, for which there is no substitute."

David added, "These are exciting times for manufacturers - new innovations to meet the ever-increasing need for efficiency - new developments to meet customer demand and many new products for us to showcase. With these factors in mind - bringing together Rail and Construction in one event, makes absolute sense.

Wherever rail infrastructure is put in place, alongside the direct rail specific equipment, there is always supporting infrastructure that

32 SUMMER 2018

JCB’s Director David Bell said, “These are exciting times for manufacturers.”

requires more generalised construction machines. This is especially true with HS2, where its success is totally dependent on bringing together the supporting residential, commercial and high-tech building networks around the station complexes."

Kevin Minton, Chief Executive of the CPA (Construction Plant-hire Association) was unable to attend the event as the CPA were holding its annual Stars of the Future Plant Mechanic Apprentice awards ceremony.

However, Kevin did send words of support for the Plantworx and Railworx event, he said, "CPA is looking forward to the 2019 event which should be a great meeting place for our Members and an opportunity for them to see the latest products and technology on offer. The East of England venue looks like a very good choice."

From the very first Plantworx in 2013, the show has had the support of Government, the new collaboration with Railworx has also received words of encouragement from Baroness Fairhead, the Minister of State for Trade and Export Promotion at the Department for International Trade.

The Baroness stated, “The UK construction equipment industry has a proud record of achievement in manufacturing, exporting over 70% of what it produces to markets across the world.

“With major construction projects in rail, roads and infrastructure underway, the Plantworx and Railworx exhibition, provides a great opportunity for businesses to meet and source the innovative products and technologies that are the key to driving future growth in the sector, in doing so supporting increased exports which will create jobs across the UK.” Next to talk was Show Director, Simon Frere-Cook who presented the floor plans of the show and highlighted the new key features which include a purpose built indoor arena, which will replace the pavilion marquees that were erected at previous shows. Simon also explained that the new venue benefits from permanent walkways, excellent communication with efficient Wifi and mobile networks and parking for 22,000 cars.

Simon added, "In 2019 we are expecting 500 plus exhibitors to sign up for the event with the addition of the Railworx exhibitors – in 2017 we had 396 companies at the event.

Railworx and Plantworx will be one united show, however, for visitors who have limited time to spend at the event, we have designed the showground and indoor arena so that the Railworx and Plantworx areas are clearly identified and easily accessible."

Simon added, "We have 53% more space than we had at the 2017 event with 103, 464 SQ M's of stand space in 2019. That's 34% more indoor space, 50% more outdoor static space and 66% more outdoor demonstration space. We will also be encouraging operators with up to date operating licences and the correct PPE to try out the machines on participating companies stands – this is a key feature at the event."

Confirmed exhibitors include leading OEM’s such as Marubeni Komatsu, Cat Finning, Mecalac, JCB, Thwaites, BOMAG and Takeuchi.

Hire super force HE Services has chosen to exhibit at the show for the first time. Show stoppers Altrad Belle have also confirmed their

stand as has Digbits, who will be demonstrating for the first time at the 2019 event and tilt rotator giants Engcon. Machine safety system manufacturers GKD Technologies have also reserved their stand.

Thwaites UK Sales Manager Andy Sabin sent words of support for the show he said, “We have supported this event from its inaugural show back in 2013 and see it as a key activity in our exhibition calendar. The show is always well attended and the visitors we attract to our stand are well matched versus our expectations”.

Thwaites serve through their UK & Ireland distribution network the key markets of Construction, Rental, Housing and Infrastructure. Driven by a growing sense of confidence in these sectors Thwaites have seen a steady increase in enquiries with the outlook remaining strong. With major rail projects such as Bank Station, the expansion of the Northern Line and Phase 1 of HS2, Thwaites welcomes the expansion of Plantworx 2019.

Plantworx 2019 promises even more demonstration areas.

SUMMER 2018 33

Concluding Andy Sabin went on to say, “We look forward to meeting customers and stakeholders attending the joint event from Railworx, to further develop our relationships and explore additional opportunities in this key and growing market.”

Finning Cat Compact General Manager, Janine Turner also sent over a positive message in support of the show she said: “In 2019, Finning look forward to continuing the dialogue with the growing number of SME customers from the Housing, Plant Hire, Groundworks, Landscaping and Owner Operator markets. We warmly welcome the widening scope of the event, with the inclusion of Railworx, as the Rail and Infrastructure sector represents a significant opportunity for our General Construction & Infrastructure team.

Together, both shows will offer increased awareness and exposure of the needs of these exciting industries and how the capabilities of Finning and Caterpillar equipment can support them.”

Rob Oliver CEO, CEA also confirmed there will be a new Innovation and Technology zone at the show, he said, “The digitalisation of the construction sector is gaining pace - Plantworx offers the perfect showcase to help match the technology with its acceptance by the marketplace. Plantworx will support the aspirations of the CEA’s Digital Adaptation Group – and the digitalisation initiatives being promoted by the Committee for European Construction Equipment (CECE).”

Jolene Price, Director of Rail Media, introduced the Railworx element of the show highlighting the current significant investment in rail using examples such as Network Rail who are intending to spend £34bn during it latest procurement drive, CP6 which is in operation from 2019-2024. Also, HS2 which is investing £56bn including £6.6bn for phase one civils contracts. Crossrail 2 which represents an investment

of £30bn+ and the £5bn to be invested through new Wales and Borders franchise.

Jolene said, “These are just a few examples of the major programmes of works that will be completed in the next decade or so. This list alone represents more than £130bn in new and upgraded infrastructure - not including plans for new tram routes and extensions to the London Underground and Overground networks.

Rail is a growth industry that is critical to the UK economy, supporting new housing and regeneration projects around the country. As well as supporting hundreds of thousands of existing jobs there is also a huge demand for new skills, particularly for the delivery of HS2 and the rollout of new modern signalling technology across the existing network.”

Network Rail CEO Mark Carne, via video, spoke about the organisation’s technical strategy, the Digital Railway and how Network Rail needs to work closer with its supply chain to deliver innovation.

He said, “We need to be more efficient in how we work with our supply chain. We can deliver more innovation from the supply chain and I think that Network Rail really has to play a key role in that. Too many people think that Network Rail block innovation rather than encourage innovation and we need to open our doors and say we are open for business and open to new ideas – come and share your ideas with us because ultimately that’s what the industry needs.”

Jolene concluded the Rail Media Railworx presentation stating how Railworx will complement and enhance Plantworx she said, “Railworx will be an opportunity for suppliers to display specialist equipment, such as road rail vehicles (RRVs), tampers, rail movers, rail vacs and wiring trains. It’s also an opportunity for manufacturers and suppliers to meet those operating, buying, and specifying tools, plant and

The opportunity to operate machinery at the show remains a key feature.

34 SUMMER 2018

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Railworx will be an opportunity for suppliers to display specialist equipment, such as road rail vehicles (RRVs).

equipment. The event will also forge closer links between rail and the wider construction industry.”

CEA Director and Head of CEA’s Skills Council Nigel Baseley was the last of the days presenters. Nigel highlighted the importance of Skills in both the construction and rail sectors and spoke about Plantworx commitment to Primary Engineer and the Student Event at the show – he said, “The CEA and Plantworx has been working with Primary Engineer, by way of sponsorship and supporting engineers, since the 2017 event and are also set for a second consecutive year with more than 15 Coventry Schools committed to taking part in the project in 2018. This STEM project is vital to encourage young people into our industry – we need young engineers to ensure the future growth of our sector.

The press launch concluded with a celebratory four course lunch on the garden terrace at the Barbican.

36 SUMMER 2018

The CEA and Plantworx have also confirmed that the Primary Engineer event will be coming to Plantworx and Railworx in 2019 working with the Primary and Secondary Schools in the area and will be making the event bigger than before with more schools involved.”

Nigel added, “On the last day of 2019 Plantworx and Railworx will be inviting students from local schools to take part in the Student Trail, where the children will be encouraged to follow an organised trail visiting participating exhibitors answering an ‘engineering’ related question about the company’s products. Our exhibitors have been very supportive of this initiative and understand the need to introduce children to our sector at a young impressionable age.

In 2019 we are extending the timings of the event and will be inviting children to spend the entire day at the show. At the 2017 event over 300 children attended from local schools – we are hoping to increase this number at the 2019 event and will be extending the invitation to colleges and academies.”

Nigel concluded the ‘Action on Skills’ part of the presentation with the CEA’s response to machine distributors’ training needs. “The CEA has been involved on the development of Trailblazers standards for some time working with with Landbased Training & Education Committee (LETEC). We are delighted to announce that we now have two standards approved by IfA – Level 2 Service Engineer and Level 3 Technician.

The CEA also has a joint promotional plan with Agricultural Engineers Association (AEA) which will include Plantworx.”

The day concluded with a celebratory four course lunch on the garden terrace at the Barbican. Guests were presented with promotional gifts of Plantworx and Railworx branded sun glasses and rain ponchos. Rob Oliver said, “Whilst we can’t do anything about the British weather we can prepare you for every eventuality!”

A video of the showground can be viewed here on YouTube https://youtu.be/JuA2Bj1ICkI ■

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ConstructionWorX In the Lobby

In the Lobby In the Lobby reports from Rob Oliver, Chief Executive, Construction Equipment Association.

Construction Sector Deal adds to Automotive Plan The old government business department (formerly DTI, BIS etc.) was renamed the Department for Business, Energy and Industrial Strategy (BEIS). HMG set itself the task of developing up to 70 “sector deals” providing a framework for the co-ordination of government policy - in partnership with business and with a little help from taxpayers’ funds.

Early off the grid was the Automotive Sector Deal announced at the start of this year. This plan set out a programme for both government and industry to invest about a quarter of a billion pounds to develop and manufacture electric vehicles. This includes the Faraday Battery Challenge, which will drive the technologies to power electric vehicles in the future, as well as £80 million for a new state-of-the-art automotive battery development facility in Coventry. The aspiration is to establish the mass production of electric batteries and vehicles in the UK. The latest Sector Deal, announced in July, covers the construction sector. This encompasses contracting, product manufacturing and professional services. It is estimated that this adds up to a turnover of £370 billion (in 2016), adding £138 billion in value to the UK economy – 9% of the total – and exports over £8 billion of products and services.

The challenge is that the potential of the sector has been held back by productivity that is historically below that of the wider economy – an average of 21% lower since 1997. The plan targets the completion of the reform of the CITB and the creation of 25,000 construction apprenticeships a year by 2020. £170 million will be invested from the Industrial Strategy Challenge Fund (ISCF) in the Transforming Construction: Manufacturing Better Buildings programme. Amongst other things this will provide funding for digital technologies, including Building Information Modelling (BIM), sensors, data analytics and smart systems technologies and the Information Management Landscape (IML); which will increase the efficiency of construction techniques.

CEA Chief Executive, Rob Oliver, welcomed the latest Sector Deal saying, “It is right that the government is focusing on digitalisation in construction but we know from experience that the patchy adoption of new digital-based technologies is holding back many CEA members who have the digital solutions ready made to improve productivity.

Perhaps more can be done in ensuring government funded projects can be more open to innovation in their procurement practices.” ■

Brexit White Paper The White Paper, The future relationship between the United Kingdom and the European Union was published on 12th July – the detailed expression of the so called Chequers Agreement. Whilst its contents have been the subject of ministerial resignations and political brickbats from all sides of the House, it does at least represent a more detailed negotiating position to which the EU institutions should be able to respond. Whether it elicits a response that can hasten a final agreement is in the lap of the gods. There are some specific items of note in the White Paper that illustrate some successes for the wider business lobby. These include; ●● Recognition of the complexity of supply chains that, “stretch across multiple countries and operate on a “just-in-time” basis”. Much hope is pinned on devising a workable Facilitated Customs Arrangement. ●● Recognition of concerns about the need for some form of mutual recognition of type approvals between the UK and the

EU. Specifically the White Paper calls for, “…a jointly agreed accreditation framework, to provide mutual reassurance that UK and EU conformity assessments are robust.” ●● There is now a clear distinction between the “free movement of people” (a HMG “red line”) and “mobility arrangements”. The latter refers to the objective to, “support businesses to provide services and to move their talented people”. There is recognition that, for example, technicians need to cross borders to support maintenance contracts. ●● On market surveillance the White Paper states, “Following its withdrawal from the EU, the UK intends to maintain its robust programme of risk-based market surveillance…”. For our sector, of course, there is no recognisable robust surveillance programme at the moment.

To report your queries and concerns on Brexit-related issues contact Rob Oliver at the CEA offices. ■

Construction Equipment Association @ConEquipAssocia

The CEA has helped over 500 UK companies with their exports around the world.

Summer 2018 SUMMER 2018 39

In the Lobby ConstructionWorX

Support for Exporters Decision Delayed – Again The CEA have been told that Department for International Trade (DIT) are not going to start looking at the future and format of next year’s (2019/20) export support for UK companies until after the summer recess i.e. September/October. This may be a lengthy process, so it could be early next year before things become clearer. Given the lead up needed to plan overseas trade show British Groups and trade missions this makes it unlikely that the full benefit of HMG support will be lost for another year. Given that all options will be open in any review, the danger is that the tried and trusted method of routing trade show support via accredited trade associations organising groups for their specialist sectors will be abandoned. The last minute notification of British Group support was illustrated this year when company grants for the Intermat show (Paris), which opened mid-April, were not confirmed until the end of January. Our competitors in Europe, the USA, China, Japan etc. can make a longer term export plan up to two years in advance. The CEA’s Joanna Oliver commented, “Italy manages a decent export support plan even though they struggle to elect their governments! It seems that available export promotion money has been diverted to paying hired in free trade agreement negotiators to prepare for the post-Brexit world which doesn’t really help would be exporters in the here and now.” If your company has benefitted from HMG export support in the past, talk to your local MP to ask questions about whether and when the DIT is going to resume support for exporters hoping for a leg up to be present at overseas trade events. ■

EU Trade Remedies Consultation – CEA Members Invited to Comment The Department for International Trade (DIT) has published the provisional findings of a consultation on the transition of existing EU Trade Remedies into UK law. The provisional findings explain which existing EU antidumping or anti-subsidy measures met the Government’s criteria for being maintained when the UK begins to operate an independent trade remedies framework. The ones that did not meet the criteria will not be maintained when the UK begins to operate an independent trade remedies framework. All maintained measures will be reviewed to ensure they are suitable for the UK’s market. The provisional findings are based on evidence from business, including CEA members, were validated through reputable publicly available sources. www.gov.uk/government/consultations/call-forevidence-to-identify-uk-interest-in-existing-eu-trade-remedy-measures The DIT is now inviting anyone with an interest to review these provisional findings and provide any further evidence which could affect their decisions. This includes providing an application to maintain measures covering products produced in the UK, if one was not provided earlier.

Anyone wishing to provide further information or an application should look at the original call for evidence - https://www.gov.uk/government/ consultations/call-for-evidence-to-identify-uk-interest-in-existing-eu-traderemedy-measures/call-for-evidence-to-identify-uk-interest-in-existing-eutrade-remedy-measures .

Responses to the provisional findings of the call for evidence, including applications to maintain measures and submissions of evidence should be emailed to traderemedies@trade.gov.uk by 12pm on 24 August 2018. ■

Going Dutch Interesting how other EU nations are assisting their manufacturers navigate Brexit, while we in the UK are kept in the dark. Dutch SMEs even get a grant of €2,500 to find other markets if they have been affected

by Brexit. Why are we in such a mess? #dutch #brexit #exportfinance #exportadministration #exportassistance https://lnkd.in/eTh9Ti5 use Google Chrome to translate https://www.rvo.nl/subsidies-regelingen/brexit-vouchers

Construction Equipment Association @ConEquipAssocia

CEA members can catch up with what’s happening in Europe by attending the CECE Congress in Rome – make a date for 17th/19th October. The theme is “Building customer loyalty through a common vision”.

Summer 2018 40 SUMMER 2018

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Future Fuels ConstructionWorX

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Energy for the Future (Part 2) Duncan Riding, Business Development Engineer, Perkins delivered a highly acclaimed presentation at the CEA Innovation is Here conference. He expands on his thoughts on Energy for the Future for Construction Worx. Part two is below, part one previously published in the Spring edition.

We need a strategy for energy, based upon the best facts and data Energy is the means by which humankind does anything and everything, and the demand for energy is growing. Off-highway machinery running on diesel fuel energy enables the agriculture, heat and light and construction that are the foundations of our society.

Diesel fuel in passenger cars is being challenged by Battery Electric Vehicles (BEV) and there is an assumption that this will transfer offhighway. The differences in scale, operation and use between passenger cars and off-highway equipment is very significant and not generally considered. The near future of energy for off-highway machines will significantly remain diesel for very good reasons. However, there is a clear requirement for a clear and logical future energy strategy.

Electricity as a source of energy Electricity is only naturally occurring in low energy forms. Lightning strikes have high power over a short duration, therefore low energy.

Humankind’s energy demand would require harnessing the energy from 20,000 lightning strikes/second. Worldwide there are less than 100/ second.

Our electrical energy is converted from other energy sources, including: conventional fuels, nuclear and renewable sources like solar radiation,

42 SUMMER 2018

wind, geothermal and hydro. In 2016, 18% of human energy need was consumed as electricity and 5% of total energy was from renewable sources.

Electric machinery is: tethered (wired), partially tethered (rails) and untethered. Off-highway machinery is largely untethered, and therefore requires an on-board energy store. Today, with a diesel engine, that means the diesel fuel tank. For All_Electric, that means a battery.

Battery technology has rapidly improved, from a very poor starting point. The current best battery cell technology is [reference 1]: £100/ kW.hr, 250 kW.hr/tonne, operates between -20oC and +60oC, and is 10-50% recyclable. Some of these capabilities limit the use of batteries off-highway, or entail energy inefficient mitigations.

If we assume 90% efficiency of an electric motor, and 35% efficiency of a diesel engine, then a litre of diesel fuel is equivalent to a 3.9 kW.hr battery. If we re-power a tracked hydraulic excavator, driving the hydraulic pump with an electric motor, and require the same ‘tank range’ as the diesel machine, a 100 litre diesel fuel tank would require a battery of 390 kW.hr. Using current best battery technology, the cells would cost £39,000 and weigh 1.56 tonnes. That is a lot.

Taking one construction equipment manufacturers hydraulic excavator range from 1.5 to 75 tonnes, the battery equivalent energy requirement is very significant: more than £6,000 of battery cell cost/machine tonne [figure 1].

ConstructionWorX Future Fuels

Figure 1 - Excavator Battery Equivalence.

Stretch goals for battery technology in the year 2035 [reference 1] are: £38/kW.hr, 500 kW.hr/tonne, operation between -40oC and +80oC, and 95% recyclable .

Today, some specific application electric/hybrid excavators have been released [reference 2/3], however, replacing diesel power in all excavators is not viable. This may change if the battery stretch goals are achieved in 2035.

Not all machines with four wheels and a diesel engine are equal BEV’s are gaining significant attention and driving behaviour within the car industry, however, there are significant differences between a car and an off-highway machine.

A diesel engine of 240 hp could power a 2 tonne passenger car and a 21 tonne wheeled loader. The purpose of a wheeled loader is to move a lot of material, and that is energy intensive. The average power used by the wheeled loader is 6x greater than the passenger car. The 275 litre diesel tank in a 21 tonne wheeled loader would require a 1,070 kW.hr battery weighing 4 tonnes and costing £107,000 for productivity equivalence.

To be considered viable, passenger car BEV’s only have batteries up to 100 kW.hr, which is not very much energy.

Downtime, for energy replacement The standard diesel tank filling rate is 50 litres/minute which is equivalent to 10 Megawatts (MW). Current battery technology is unlikely to ever accept charging at this rate.

The proposed domestic 22kW AC fast-chargers are therefore not fast, but would stretch the 100 Amp fused limit in UK homes (19 kW).

Alternatively, a new electricity supply infrastructure would be needed.

Passenger cars are parked on average 95% of the time [reference 4].

Lots of downtime and low energy density batteries, means that slow charging for long durations, can be acceptable.

Current charging systems are targeting urban, light duty passenger cars with small battery systems that allow frequent downtime. These systems can be applied to smaller machine equipment that can accept the compromises on productivity or downtime.

Off-highway All Electric machines Off-highway has previously adopted All_Electric powertrains. Air quality within buildings has driven 60% of European forklift trucks to adopt All_Electric powertrains [reference 5]. Being in buildings, there is a ready supply of commercial electricity and charging one machine or battery pack, while another is in operation has become accepted.

A recent publication reported on an extremely interesting BEV research machine, where the OEM ‘has ruled out the possibility of the <machine> becoming a commercially viable proposition’. However, the front-page headline was ‘diesel killer’ [reference 6]. The article described the winning performance of the 300 kW machine. However, other references suggest that the real-world motor power is 130 kW, where 100% load factor would flatten the battery in less than an hour. Normal, high load factor (60%) would discharge the battery in 1.5 hours. 25% light duty, load factor would achieve the declared four hour range. Charging would take the machine off-line for three hours, although the charging infrastructure was not discussed. For this machine to be a ‘Diesel Killer’ there are some considerable compromises to be made, as was acknowledged by the OEM. In general, applications with extremes of use and high load factors [figure 2], where downtime is anathema and where charging infrastructure is a challenge, we do not have line-of-sight to a commercially viable All_Electric solution. However, there will be very interesting niche applications where all electric solutions may be viable [reference 7/8].

The future of energy (for off-highway machines): Part 2 The 2017 KPMG Automotive industry report [reference 9], based upon responses from 953 automotive executives in 43 countries, is widely discussed for two reasons: Firstly, 62% believed that BEVs will fail due to infrastructure requirements and, secondly, that 78% believe that the future is hydrogen fuel cells. An EU study [reference 10] showed that infrastructure to support 100,000 hydrogen fuel cell vehicles would cost 28% more than for BEV. However, the infrastructure to support one million BEVs would be 47% more expensive than fuel cell vehicles. We should not be surprised to see a lot of promotion for hydrogen fuel cells in the future… by example, at the next Olympics in Japan [reference 11].

Regardless, both battery and fuel cell electric systems require very significant amounts of renewable electrical energy [reference 12].

Off-highway, where relatively few machines are providing the foundation of our society through high load factor and high productivity work, where battery technology is less applicable, clean diesel engines should be embraced, until a credible alternative is found. For the future, we need a plan for energy, based upon the best facts and data. ■

References: 0/

Professor Colin Garner, Chair in Applied Thermodynamics, Loughborough University ‘What is the best energy source for off-highway oowertrains?”

1/ http://driveev.net/2017/07/24/246m-faraday-challenge-aims-make-u-k-evtechnology-leader/#.WuB7ri7wa70 2/ https://www.jcb.com/en-gb/campaigns/2018/electric-mini-excavator/ electric-mini-excavator 3/ http://www.wackerneuson.us/en/products/excavators/tracked-conventionaltail-excavators/model/803-dualpower/ 4/ http://fortune.com/2016/03/13/cars-parked-95-percent-of-time/ 5/ Knibb, Gormezano & Partners: Material Handling market overview 6/ http://www.ivtinternational.com/magazine_archive.php 7/ https://electrek.co/2017/09/17/electric-dumper-truck-worlds-largest-evbattery-pack/ 8/ http://csr.goldcorp.com/2016/environmental-stewardship/intro 9/ https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/01/globalautomotive-executive-survey-2017.pdf 10/ https://fuelcellsworks.com/news/battery-and-hydrogen-h2-juelich-researchcenter-and-h2-mobility-publish-comparative-analysis-of-i 11/ https://www.japan.go.jp/tomodachi/2016/spring2016/tokyo_realize_ hydrogen_by_2020.html 12/ https://www.ft.com/content/6f55d4cc-58ed-11e8-bdb7-f6677d2e1ce8

SUMMER 2018 43

Skills & Training ConstructionWorX

Action on Skills The CEA’s Skills and Strategy Consultant, Philip Burgess, looks at Land Based Apprenticeships.

Apprenticeships continue to rise in the consciousness of the nation and are widely regarded as crucial to redressing the engineering skills gap. For many young people they are a great way into work and offer a fantastic career without the worry of a student loan and debt. More and more young people are starting apprenticeships as an alternative to A levels and university, and some employers will sponsor their people to study for a higher qualification once an apprenticeship has been completed.

The CEA has been involved in the development of apprenticeship standards for some time working with the Land-based Training and Education Committee (LETEC). Through hard work and perseverance through the very lengthy and testing approvals process, we are delighted with the resultant two standards that have been approved by the Institute for Apprenticeships – Land-based Service Engineer (Level 2), and Land-based Service Engineering Technician (Level 3).

With these new apprenticeships being introduced this year by a number of training providers across England, our attention now switches to their promotion to CEA member companies and their employees. To this end we are planning with key partners representing the Land-based Engineering industry, a coming together with colleges and training providers, two regional (north and south) ‘what it’s all about’ seminars where employers and dealerships can find out more about these apprenticeships as well as the workings of the new apprenticeship levy.

It is important that the term ‘Land-based Engineering’ is recognised

44 SUMMER 2018

within the context of skills and training as encompassing the construction and plant sector, in addition to the agricultural and outdoor power equipment sectors. With each apprenticeship standard, pathways exist whereby the Land-based Service Engineer’s/Technician’s occupational title will be prefixed by the industry sector he/she works within, for example; Construction and Plant Service Engineer.

In essence, both apprenticeship standards deal with the maintenance and repair of a range of mechanised equipment used across the different pathways within the Land-based Engineering industry.

Service Engineer apprentices (Level 2) will learn to work to solve problems using a combination of scientific, technical and engineering knowledge. They will typically work on the employer’s premises under supervision and, where appropriate and safe to do so, on their own initiative. They can work on a diverse range of tasks and machinery specific to their sector pathway. Technician apprentices (Level 3) will learn how to diagnose and repair more complex faults and will need a good level of mechanical skill and the ability to work from technical manuals. They will typically work on site using their own initiative in a customer facing role. In addition, they could often be called upon to mentor and supervise junior colleagues and to give advice to customers on machinery selection; again, specific to their sector pathway.

Full details of the two Land-based Engineering apprenticeship standards are given at www.instituteforapprenticeships.org/ apprenticeship-standards, and details of the forthcoming promotional seminars will be communicated to CEA members in the coming weeks. ■

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International ConstructionWorX

Indonesian market offers considerable potential The market for construction machinery in Indonesia is notoriously volatile, but a period of strong growth appears likely following a rapid recovery from the most recent slump in sales.

Indonesia: Sales of Construction Equipment, 2013-2017 (Units) Articulated Dump Trucks

2013

2014

2015

2016

2017

% Change 2013-2017

361

174

130

100

350

-3

Asphalt Finishers

2

16

5

18

31

+1,450

Backhoe Loaders

247

323

210

225

315

+28

Compaction Equipment

879

767

400

650

1,227

+40

Crawler Dozers

1,489

967

605

450

975

-35

Crawler Excavators

9,313

7,016

4,101

4,720

7,648

-18

Mini Excavators

428

527

425

762

1,071

+150

Mobile Compressors

315

250

200

225

559

+77

Motor Graders

552

464

146

234

500

-9

Rigid Dump Trucks

392

289

200

175

814

+108

RTLTs – Masted

1

4

2

-

5

+400

RTLTs – Telescopic

49

46

43

50

70

+43

Skid-Steer Loaders

55

50

125

70

90

+64

Wheeled Excavators

23

15

13

10

22

-4

Wheeled Loaders

1,029

883

850

1,199

1,234

+20

Total

15,135

11,791

7,455

8,888

14,911

-1

Source: Off-Highway Research

46 SUMMER 2018

ConstructionWorX International

Last year, overall sales rose 68 per cent compared to sales in 2016. In turn, 2016 had already seen growth of 19 per cent compared to 2015 which, after four years of sharply declining sales, was the lowest point in the country’s most recent cycle of high peaks and deep troughs.

The market is now virtually level with that seen in 2013, the last year of considerable volume sales in the country.

Various factors have contributed to this recovery.

The first of these to take effect was the ability of the current President, Joko Widodo, to put into action the long-established plans for muchneeded infrastructure development. Road and rail projects across the country, as well as light and mass-transit rail schemes in the capital, Jakarta, saw an increase in the market for machines used in the wider construction sector in 2016.

This was followed later in that year, and more noticeably during 2017, by an increase in demand for raw materials, particularly coal, nickel and copper. A general rising trend in the prices of these products also supported the resulting surge in demand from the mining sector that

accounts for a significant proportion of total demand in the country.

This was aided by a partial repeal of Indonesia’s minerals processing law that had imposed restrictions on exports of unprocessed minerals.

Another factor in the very rapid revival in demand from the mining sector has been the considerable level of fleet reduction that ensued during the preceding slump. Repossessions and sales abroad of machines that had become surplus to requirements – in particular rigid dump trucks – were common occurrences after the market peaked in 2011. As a result, the quantity of machines capable of meeting recent demand has been limited.

Nevertheless, previous excesses in responding to surges in the market are currently being tempered. There are ongoing limitations on the production capacity of all suppliers due to a worldwide increase in demand, meaning supply is struggling to keep up. Similarly, the large domestic manufacturing sector, although expanding rapidly, has faced difficulties in meeting increased demand due to limited availability of components.

Indonesia: Production of Construction Equipment, 2013-2017 (Units) Compaction Equipment Crawler Dozers Crawler Excavators Motor Graders Rigid Dump Trucks Total

2013

2014

2015

2016

2017

850

725

250

600

1,200

750

450

250

175

550

7,750

7,030

2,470

2,640

4,900

-

-

150

75

200

200

150

5

50

500

9,550

8,355

3,125

3,540

7,350

Source: Off-Highway Research As a result, and subject to the impact and outcome of the Presidential election scheduled for next year, there is optimism that the current strong market can be sustained over the next two or three years at least, even if 2019 itself might see a dip in sales.

There is certainly a consensus that the market will grow further in 2018, with demand from construction and mining, as well as other sectors, remaining strong. A strategic infrastructure development plan that is now being put into effect combined with a rise in sales and prices of raw materials should both then create strong demand over the next few years, even if an accurate forecast remains complicated, for two reasons.

The first is the impact and outcome of next year’s Presidential elections. The staging of the election itself is likely to cause a slowdown in investment decisions resulting in a drop in the market next year.

Subsequently, if the incumbent extends his tenure, there is considerable confidence that further infrastructure investment will continue,

notwithstanding residual concerns about the country's financial resources putting a limit on any President being able to deliver on these plans. The construction machinery market will therefore benefit accordingly in 2020 and beyond.

The second is the unpredictability of the mining sector. This includes global demand, commodity prices and domestic legislation, all of which have a significant impact on the machinery market in the country.

Nevertheless, should political stability and a settled mining market ensue, there is a realistic possibility of a more sustained high level of sales and increased manufacturing of construction machinery in Indonesia than has been the case historically. For a more detailed assessment of the market, see Off-Highway Research’s Special Report: ‘The Construction Equipment Industry in Indonesia’, which will be published in July 2018. ■

For more information about their services, visit

www.offhighway.co.uk

Contributed by Off Highway Research who generously make their reports and market information available to the CEA.

SUMMER 2018 47

Connecting Global Competence

OUR COMPETENCE, YOUR INNOVATION. bauma CHINA, Shanghai, SNIEC, November 27â&#x20AC;&#x201C;30, 2018

EUROPEAN PAVILION Be a part of it! info@bauma-china.com

International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles.

www.bauma-china.com

ConstructionWorX International

International Exhibitions

Letter

Joanna Oliver MBE, the CEA’s Director of Global Programmes

European Pavilion at Bauma China 27 - 30 November 2018, Shanghai.

The CEA at Bauma 8-14 April 2019, bauma_logo_4c.eps Munich, Germany Bauma 2019 (www.bauma.de) is, once again, a sell-out. The organiser report a waiting list of over 1,000 companies all hoping to find space.

Only 18 sqm of the UK branded 553 sqm pavilions at the front of Hall B5 remains. Part of the UK Pavilion is divided into six Exporter PODs, offering a wall mounted graphic and an information desk with stools to exporters wanting a presence at Bauma, but not be chained to a stand all week. Only two PODS remain – so book yours now by e-mailing Joanna.oliver@admin.co.uk ■

For the first time since the show started in 2002, there will not be a UK Pavilion at Bauma China, due to a lack of government support. So the next best thing for companies wanting some support in organising their Bauma China stand is to participate in the European Pavilion run by the show organisers, Messe Munich. . Individual country stands bauma_logo_pant.eps will be branded with a British flag and be grouped together under the European umbrella. This format was used at successfully Bauma Conexpo Africa in March 2018 and we received very favorable feedback from the UK companies who participated.

The Bauma China organisers will provide the same high standard of service as the CEA to provide shell scheme and furniture packages, together with support before and during the exhibition. If you are interested in exhibiting at Bauma China contact katrin.leideritz@messemuenchen.de ■

baum

Bauma Plus – CEA Member Benefits

Educational webinars will be held to brief UK exhibitors on stand planning and management, highlighting the opportunities and pitfalls of exhibiting at Bauma. The CEA can advise on planning press and social media campaigns in the run up to the show. Targeting customers, be they visitors or other exhibitors, by actually telling them you are there and inviting them to meet, is the first rule of successful exhibiting. CEA members visiting Bauma are invited to the Members’ Lounge at Bauma on the UK Pavilion to meet the CEA and sample our hospitality. CEA Members will receive an invitation to a networking event during the bauma_logo_white.eps show.

The CEA are working with the Bauma organisers and UK representatives to identify value added opportunities for CEA members exhibiting or visiting Bauma 2019. We are investigating the possibility of a visitor programme in conjunction with Pattern, taking UK companies on an overnight visit to Munich to visit Bauma. ■

Conexpo-Con/Agg 10-14 March bauma_logo_rgb.jpg 2020, Las Vegas Sales are now open for Conexpo 2020 and the CEA needs to know if your company is planning on participating on a UK Pavilion. We do not yet have stand prices, but as a guide the costs at last year’s Conexpo were £5,950 for a fully fitted 9 sqm stand. Please let gill.stirk@admin. co.uk know if you would be interested in exhibiting. ■

CEA International Events – Where to Next?

During the current export funding interregnum and general apathy from HMG in supporting trade associations and their members to run exhibition groups, the CEA is looking at alternatives. The organisers of the Bauma family of shows is interested in working with the CEA to bring UK visitor missions to their global events – offering pre-arranged meetings with exhibitors and introductions at the shows for CEA members.

Assistance would be given with travel, accommodation and visa procurement. Events may include Bauma China, bCIndia, Bauma Conexpo Africa, M&T Expo (Brazil), CTT Moscow and IranConMin. Watch this space for more information. ■

SUMMER 2018 49

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ConstructionWorX Technical

Red diesel use for NRMM under threat The CEA’s Director of Member Services, Tim Faithfull, takes a canter though the latest technical developments affecting our sector.

In its 2018 Spring Statement, the government announced a call for evidence on the use of rebated gas oil (red diesel) by non-road mobile machinery (NRMM), in order to improve its understanding of what is preventing users from switching to cleaner technologies. Red diesel for agricultural use is outside the scope of this call for evidence, as is use by fishing vessels, home heating and other stationary applications.

Later in the year, government will consult on the Clean Air Strategy, setting out how they will work towards emission reduction targets as well as continuing to deliver air quality improvements in the UK. This call for evidence is to improve the data sources available to government about NRMM red diesel use and to contribute to a better evidence base for future policies. HMG state that red diesel use makes up over 15% of total diesel use, and that the majority of red diesel is used by NRMM. Whilst the government has a good understanding of the suppliers and distributors of red diesel, they have less information about end users and the geographic spread of red diesel use. They would like a better understanding of why red diesel is used, and what are the main barriers to switching to cleaner technologies. They also want to know what cleaner alternatives currently exist.

One potential outcome could be the treasury mandating use of full-tax (white) diesel for construction equipment which would have a direct impact on the operating costs.

Is the Machinery Directive fit for purpose?

Most readers will be aware that all machinery sold within, or into, the EU has to meet the essential safety and health requirements (ESHRs) of the Machinery Directive and be supplied with a CE mark to signify compliance. The current Directive came into force in 2006 and is transposed into UK law as the Supply of Machinery (Safety) Regulations 2008, as amended to some degree in 2011. In 2016, the European Commission appointed consultants to evaluate the fitness for purpose of the Directive. This evaluation was to assess its’ relevance, effectiveness, efficiency, coherence and EU added value as we head towards the 2020’s.

Earlier this year the consultancy delivered its report, concluding that the existing Directive was basically sound but that greater clarity was needed in some areas. This includes the definition of partly completed machines, improved convergence with other Directives and its suitability for new developments such as digitisation, robotics, cyber security, etc.

Having studied the report, the Commission will now launch a study to further look into certain aspects of emerging technologies, such as issues arising from human-machine collaboration, which are not explicitly addressed by the Directive, but which are always covered from the EHSRs. So it will be another couple of years before we know how the Directive may eventually be revised, and the impact on manufacturers.

Approaching Brexit Whilst detailed plans for the future relationship with the EU are unclear, there are some critical problems for manufacturers in relation to whatever arrangement is agreed. These include:

Notified bodies All notified bodies must be established in the EU. The Commission has stated that any certificates issued by UK notified bodies become invalid on Brexit day (29 March 2019). UK notified bodies will need to establish themselves as EU27 businesses or enter into some agreement that allows them to continue to operate. Some are understood to be in discussions with other governmental approval bodies for such an arrangement but there has been no public announcement on this. Meanwhile, there are serious concerns in some quarters that EU engine type approvals will cease to be valid come the end of March 2019. Although certification to ECE R96 should remain valid, assurances are being sought from the EU Commission.

F-Gas quota The European Commission is considering the implications of the UK’s exit on the EU F-Gas quota system and have developed initial ideas for separating the UK market share from EU quotas. These would entail UK companies continuing to be allocated EU quota, so they could continue to supply the EU market on the same terms as other non-EU quota holders currently do (such as Chinese and US companies which hold EU quota). That would require UK companies to set up an office or appoint a representative in the EU.

SUMMER 2018 51

ConstructionWorX Technical

Outdoor Noise Directive (OND) A Commission public consultation into a review of the Directive closed during April.

Outcomes of this consultation are being considered in an evaluation and impact assessment study. The first part, focusing on the evaluation of the current Directive study, is finalised. The consultant, VVA group, is now assessing costs and benefits of envisaged changes in the OND, including conformity assessment and stricter or new noise limits. However, it seems that they under-estimated the number of manufacturers on the market, while they over-estimated the EU equipment population.

The final results are expected this summer and the main conclusions will be presented at the European Commission Noise Expert Group meeting in September. After the study, the European Commission will prepare its proposal to revise the OND together with the impact assessment. The review proposal will be tabled under the next Commission mandate at the end of 2019 at the earliest. Consequently, the revision process of the Outdoor Noise Directive will not be finalised before 2021 or 2022.

UK Air Quality Plan The CEA responded to a Defra consultation on the draft UK Air Quality Plan in June 2017, emphasising that any schemes should be based on the EU Stages and that retrofit installations should be compliant with ECE R132.

The Government has now published, on 22 May 2018, its consultation on the Clean Air Strategy 2018. This strategy considers all sources of air pollution and closes on 14 August 2018. The chapter on ‘Ensuring clean

growth and driving innovation’ identifies several sources of air pollution that do not yet have market ready solutions and a number of priority areas where innovation funding will support air quality goals have been identified. One of these is Low and zero-emission options for non-road mobile machinery (NRMM).

It launched a call for evidence on NRMM use, its impact on air quality, and the interaction between the availability or red diesel and uptake of cleaner technologies, especially in urban areas. The CEA submitted a response to the call for evidence which closed on 24 July 2018.

EU Preparing for Brexit On 19th July the European Commission published an updated version of its’“Brexit preparedness” communication entitled ‘Preparing for the withdrawal of the United Kingdom from the European Union on 29 March 2019. This summarises that the withdrawal of the United Kingdom from the European Union has repercussions for citizens, businesses and administrations in both the United Kingdom and the European Union.

These repercussions range from new controls at the EU’s (new) outer border, to the validity of UK-issued licences, certificates and authorisations all the way to new conditions for data transfers.

The EC hopes that an agreement for an orderly withdrawal can be reached, but there is no certainty and, even if an agreement is reached, reminds us that the United Kingdom’s relationship with the European Union will no longer be one of a Member State and thus we will be in a fundamentally different situation. The Commission urges everyone concerned to intensify their preparedness for the withdrawal, with or without an agreement and transition period, and list the main consequences of each scenario. ■

Brexit – Deal or No Deal Paris Kiernan, Senior Analyst at Knibb Gormezano and Partners looks at the potential impact of a Hard Brexit on Regulatory Alignment One of the most pressing issues of Brexit for the Non-Road Mobile Machinery (NRMM) market for the UK is the ability to sell vehicles and machinery into the EU market raising the issue of regulatory alignment. Currently when an engine is manufactured in the UK, the majority are certified by the Vehicle Certification Agency (VCA).

However, post-Brexit will the EU still accept the VCA as a body to certify products to meet EU regulations? Interestingly, for the CE market, over the last few years the UK has experienced increasing relative share of exports to the EU up from 27% in 2013 to 42% in 2017. Source: CEA and HMRC Many OEMs and component suppliers currently manufacture in the UK, with the main OEMs in the CE sector accounting for roughly

12 manufacturing facilities generating £4.9 billion. The majority of revenue is generated by JCB with an annual turnover of over £2.5 bn.

If a Hard Brexit occurs, then UK and EU regulations could diverge, and products may not be accepted into EU markets unless a mutual recognition of products is met. This in fact is very difficult, with the only evidence of a mutual recognition of products worldwide being between Australia and New Zealand with passenger cars. This could lead to OEMs with a large share of European sales shifting production from the UK into the EU. For example, Caterpillar NRMM revenues for the UK account for 0.4% whilst their European sales generate 46%. Although this is an extreme case among the OEMs’ revenues produced in the UK, generally a large share is generated by Europe. Therefore, it is vital that, whatever the outcome of Brexit, an agreement must be reached with regards to the mutual recognition of products. ■

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The CESAR anti-plant theft scheme has racked up 275,000 machine registrations – helping to improve stolen plant recoveries by c.400% since its inception.

Summer 2018 SUMMER 2018 53

Hard Data ConstructionWorX

A stable outlook for 2018 The CEA’s Market Information Manager, Paul Lyons looks at the latest reports and statistics for the UK market…

The latest view of equipment sales in the UK market in 2018 remains unchanged on forecasts published earlier in the year. As illustrated

by Off-Highway Research below, sales peaked in 2017 at their highest level since the market boom in 2007. The forecasts for 2018 and 2019 anticipate relatively flat sales, but remaining at high levels.

Retail sales of UK construction and earthmoving equipment (CE) grew by nearly 6% in Q1 2018, compared with the same period in 2017 (UK Construction Equipment Statistics Exchange). An encouraging result for the first quarter, against the background of a weak construction market.

However, while equipment sales remained on an upward trend on a quarterly basis, the levels of growth are showing a slowing momentum compared to Q1 2017 which exceeded 10%.

At the Hillhead exhibition in Buxton, equipment manufacturers and distributors suggested that market sentiment remains positive, although there is some expectation that the second half of the year may not be as strong as the first half. Demand from the house building sector is holding up well in 2018 - still fuelling demand for smaller equipment such as mini excavators and telehandlers. Fleet replacement (a significant part of demand in the UK market, estimated to account for around 60% of sales) in the rental sector seems to be continuing. In a climate of uncertainty, principally due to not knowing the outcome of Brexit negotiations, it is difficult to gather any opinions about how the UK market may perform beyond the end of 2018.

54 SUMMER 2018

UK exports and imports of construction equipment continue to grow in 2018 UK exports of CE continued to show strong growth in the Q1 2018, following significant growth in 2017. According to HMRC trade statistics, exports in Q1 reached £837 million - the highest quarter for at least five years. First quarter export levels were 18.5% higher than Q1 2017 levels, with UK equipment manufacturers still benefitting from increasing demand in many of the major overseas export markets. The USA remained the single biggest export market in Q1 2018, accounting for 25% of total UK exports on a value basis. However, combined, the EU28 accounted for 45% of total exports in Q1, up from 42% in 2017, illustrating the significance of Brexit ouitcomes.

Equipment imports showed strong growth in Q1 2018 - consistent with increasing levels of equipment sales reported for the UK market in the Q1. Imports reached £467 million in Q1 2018, representing an increase of 31% on Q4 2017 levels, and an increase of 19% on the first quarter of 2017. Japan and Germany remained the two single biggest sources of imports in Q1 2018, accounting for 37% of total imports between them.

However, EU28 countries (including Germany) accounted for 63% of total UK imports, an increase from 61% in 2017. This level of trade from the EU28 exceeds export levels, and illustrates again the significance for the industry of the outcome of Brexit negotiations.

According to Off-Highway Research, the previous market update reported a 15% increase in UK machine production in 2017. With further

ConstructionWorX Hard Data

increases in Q1 2018 in both domestic sales of equipment and exports, it is anticipated that UK machine production is still on an upward trend in the early part of 2018.

UK construction market to remain weak in 2018 The latest forecast from the Construction Products Association (CPA), published in April, anticipates that construction output will show only 0.1% growth in 2018. This forecast represents the lowest level of growth since 2012, after output has grown year on year in the last five years.

During 2018, two growth sectors, Infrastructure and Private Housing, are forecast to compensate for declines in other sectors, particularly the Commercial sector. Output in the Infrastructure sector is forecast to grow by over 6% in 2018, supported by the HS2, Thames Tideway and Hinkley Point C projects. Private housing output is forecast to increase by 5% in 2018, underpinned by the Help to Buy scheme. Statistics published by the Office for National Statistics (ONS) in June indicate a weak start to the year. New orders in the construction sector in Q1 2018 fell by 4.6% quarter on quarter, and by 6.6% compared with Q1 2017.

Glenigan recently published their mid-year forecast for the UK construction market. This measures activity in terms of the value of new project starts. This concludes that 2018 will see a further fall of 6% in new projects starts, but at a slowing rate compared with an 8% decline in 2017. Across the sectors, prospects differ quite significantly, with increasing levels expected this year for civil engineering, health, education and logistics. Civil engineering activity is being driven by major infrastructure projects. Within the industrial sector, investment in new manufacturing facilities forecasts a continued decline. Demand for new logistics warehousing is very strong to meet the growing needs of online retail activity. On a regional basis, Glenigan highlights that strongest growth in 2018 will be experienced outside of London. (www. glenigan.com) The UK construction Purchasing Managers Index (PMI) published

by IHS Markit for June 2018 reached a seven month high at 53.1. This concluded a second quarter recovery, after the index slumped to a 20 month low in March, at 47.0, after severe weather caused disruption to building activity. The index in June suggests modest growth in overall construction output, with overall levels of new order bookings increasing, and house building activity remaining strong. ■

The MAC Protocol – How Can it Help?

Readers may have come across references within the industry this year to the MAC Protocol initiative. The CEA are active participants in MAC meetings ensuring our sector is represented in the development of the Protocol. The MAC Protocol is an international treaty, which is currently being developed to help with purchasing and sales of mining, agricultural and construction (MAC) equipment in overseas markets, particularly developing countries.

The initiative is being led by Rome based NGO, UNIDROIT (the International Institute for the Unification of Private Law). Their focus is to modernise and harmonise private law between countries, particularly commercial law.

International treaties similar to the MAC Protocol are already in operation within the aircraft industry (since 2001), the rail industry (2007) and the space industry (2012), and are often referred to as the “Cape Town convention”. The MAC Protocol is aimed at providing an international legal framework that will help with the

financing of equipment. This will include an international electronic registry of equipment, and a uniform legal framework, which will help with any default or insolvency issues. This is intended to reduce

uncertainty created by domestic laws, or the possible movement of equipment across borders. All of this is designed to help financiers to provide credit for equipment in countries where they are currently unable to work, and in other countries to encourage credit at lower costs. This is aimed at helping countries purchase more equipment to help with development of their infrastructure, and provide benefits for countries that manufacture and export MAC equipment, such as the UK. The focus of the initiative is on high value equipment, the value of which is in the process of being defined.

It is anticipated that the MAC Protocol will be launched at a Diplomatic Conference in 2019. In the meantime, a UK based company, Vital Economics, is working on an assessment of the potential financial/ economic impact of the MAC treaty. The three relevant UK trade associations, the CEA, AEA (Agriculture) and ABMEC (Mining), are active participants in the UNIDROIT meetings.

SUMMER 2018 55

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ConstructionWorX Your Shout

Your Shout David Waine, Product Sales Manager, British Steel and CEA Management Council Member It’s very encouraging to see nearly all of the key indices pointing towards improved activity and sentiment in the market, especially given such uncertainties regarding global trade wars and protectionism.

The UK steel industry was one of the first to be affected by the US Customs Section 232 tariff which imposes 25 per cent duty on all UK steel. The US market is a growing market for British Steel and especially the Special Profiles business, which is a world-class producer of boron steel used for cutting edges and track shoes and also mast components for forklift trucks.

Our special profiles are exported globally and often the duty our products attract in other countries can impact upon our competitiveness. Tariffs impact on the world market and we’ll continue working directly with the UK Government, and UK Steel, on this matter to ensure Britain and Europe don’t again become dumping grounds for cheap steel.

While customers are able to apply for exemptions from the US tariffs, it can be quite a lengthy and complicated process. In the meantime, it’s important to continue to work collaboratively with customers while a more permanent solution is sought. Working with them to find solutions

to their problems is where we can add value. Now is the time to promote UK manufacturing and the high-quality processes and procedures we adopt. We should be proud of what we’re able to offer.

In July, a whole new set of US tariffs came in to force designed to address the huge trade deficit with China. These new tariffs will affect parts used in our sector such as cutting edges, teeth, adaptors, undercarriage components, engine components etc. This could actually present an opportunity to UK manufacturers to increase their exports to USA as Chinese products will not only attract punitive tariffs but US manufacturers are also currently facing record steel prices and hence higher cost of manufacture.

Investing in quality is critical as companies all look to differentiate themselves. Our Special Profiles mill in Skinningrove recently installed a new £1.9m high-pressure descaling unit. This has markedly improved the surface quality of our products, helping customers reduce the cost of inspection or finishing of parts. We’ve recently worked closely with a customer to produce a brand new profile for them, which will be rolled rather than fabricated. The improved structural integrity of the product and reduced manufacturing cost demonstrates how Special Profiles present many unique selling points (USPs) to the market.

Despite the looming tariff wars, we do appear to be riding the wave of increased activity and long may it continue. We all need to champion the benefits of a strong and healthy UK manufacturing base to ensure we’re best placed to weather whatever storm comes at us in the future. Investing in the UK supply chain will lead to a more sustainable economy which, in turn, will benefit us all. ■

SUMMER 2018 57

CESAR ConstructionWorX

CESAR hits 275,000th Registration at Hillhead

JCB’s UK Sales Director Steve Smith is pictured with Rob Oliver, CEA Chief Executive, and Datatag’ s MD Kevin Howells, and CEA Management Council Member, Keith Dolbear.

The Construction Equipment Association’s (CEA) official CESAR Scheme passed another milestone today as JCB unveiled the 275,000th CESAR registered machine on their stand at Hillhead. JCB, one of the earliest adopters of CESAR, a high tech, multi layered security marking scheme, registered the 100,000th machine, a JCB Loadall, back in October 2012.

Steve Smith, UK Sales Director, JCB, said “We’re delighted to register the 275,000th CESAR plate on our new JCB 220X. Our customers have benefitted from CESAR over the years as thefts have been reduced by over 70% since its launch.”

58 SUMMER 2018

Rob Oliver, CEA Chief Executive, commented “It’s through the support of leading OEMs that the whole construction industry benefits from fewer thefts thanks to CESAR’s theft deterrent effect and improved rates of recovery.”

Kevin Howells, MD Datatag, said “When we launched CESAR at JCB back in 2007, we had no idea of the impact it would have on reducing equipment crime. The theft deterrent benefit of CESAR is such that leading insurers provide insurance premium discounts of up to 20% for all CESAR registered equipment.” ■

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