Diggers and Dozers Yearbook 2018 by Mark Anthony

DIGGERS & DOZERS yearbook 2017-2018

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Focused on the Future Yearbooks have a nasty habit of being backwardfacing. While we all appreciate a bit of nostalgia from time-to-time, 2017 will likely be remembered in the history books as a year tarnished by largely bad news in the political, economic and entertainment arenas. So rather than looking back at a year that saw everyone’s worst fears of a Trump presidency realised and a year in which historic sexual harassment and assault in Hollywood finally made (some of) the world stop and realise that the infamous casting couch was – in fact – a bad thing, we have decided to look ahead. And there is much to look ahead to in the UK construction arena.

EDITORIAL Editor Mark Anthony - Mark Anthony Publicity markanthony@markanthonypublicity.co.uk 07973 456 166 Assistant Editor Fred Anthony - Mark Anthony Publicity anthonyfreddie@googlemail.com 07973 456 166

Regardless of where you stand environmentally, the prospect of work starting in earnest on the HS2 project is surely cause for celebration. It won’t come immediately, but there is every likelihood that the UK will welcome more than 700 additional dumptrucks to carry out the earthmoving on this mammoth scheme. That is good for the manufacturers and dealers selling and looking after them; and it’s good because it will require the influx of a rake of new employees within the industry. The housebuilding sector – which accounted for around 30 percent of all the UK’s construction activity in 2017 – looks set to carry that momentum into this year. That means more telehandlers, more mini excavators and more site dumpers going out the dealership doors. The future is not without its challenges, of course. The drive to make site dumpers safer has, at long last, attracted the focus of the wider industry. We are just a few months away from starting the countdown to the implementation of London’s Ultra Low Emissions Zone which will place even greater restrictions on engine emissions. And with Brexit negotiations ongoing and future immigration policies still very much in the lap of the Gods, there is every possibility that the current skills shortage could actually grow worse. But as the following pages will hopefully demonstrate, we all have much to look forward to. And so, to 2018, we say: BRING IT ON!

SALES Sales Director Ben Chambers ben@chambers.media 01903 899942 Business Development Manager Ben Cumberland ben.cumberland@chambers.media 01903 899943 GENERAL ENQUIRIES info@chambers.media 01903 899823 CIRCULATION Mark Anthony - Mark Anthony Publicity markanthony@markanthonypublicity.co.uk 07973 456 166 PRODUCED & PUBLISHED BY Chambers Media Ltd Unit 1, 39 Chatsworth House, Chatsworth Road, Worthing, West Sussex BN11 1LY ben@chambers.media 01903 899823 Diggers & Dozers is published 6 times a year by Chambers Media Ltd. Articles and information contained in this publication are the copyright of Chambers Media Ltd and may not be reproduced in any form without the written permission of the publishers. The publishers cannot accept responsibility for loss of, or damage to, uncommissioned photographs or manuscripts.

DIGGERS & DOZERS

March of the Low Emission Zone The Construction Equipment Association’s Senior Technical Consultant, Malcolm Kent, turns the spotlight on the rise of the Low Emission Zone in the UK and Europe. By now, pretty much everybody in the industry will be aware of the London Low Emission Zone but awareness of the others around Europe might be more patchy. There is a variety of national, regional and city schemes in different countries and these are set to expand. The background to all of these schemes is the problem of air quality, and particularly the EU rules setting limits on acceptable pollution levels. It was found some years ago that several member states, including the UK, were in breach of the rules in a number of cities and countries

are under threat of legal action and hefty fines from the European courts. This is not just a matter of legalities, of course, as evidence has grown over the years of the impact on human health of pollutants in the atmosphere. Although emission controls cover more than one aspect of what comes out of the tailpipe the key concern in recent years has been very fine particulates. Because of this various cities and countries around Europe have introduced their own rules in an attempt to improve air quality where it has been below par. In London this started under mayor Ken

Livingstone with the onhighway sector – still much the biggest contributor to airborne emissions – followed up under Boris Johnson by adding the scheme for non-road mobile machinery (NRMM). Across Europe the situation is unsurprisingly complex but a quick look at the graphic below shows that there is something of a geographical pattern.

Across Europe

This graphic has been produced by the project team working within the Committee for European Construction Equipment (CECE) on engine emission matters and shows right away that the schemes that we currently know about are in the Germanic and Nordic regions plus the UK. Other countries might have onhighway schemes (for example the restrictions for cars in Paris have received a good deal of press coverage) but these have not yet been extended to offhighway machinery.

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Although the schemes are generally geographical in nature – cities or regions – there is another way that schemes are introduced: on a project basis. The first such scheme that was proposed in the UK was for the London 2012 Olympic site. This came to nought in the end but the one that is very much live just now is the construction of HS2. You could think of this as a linear low-emission zone, covering the environs of the construction works from London to Birmingham, but it is probably more helpful to think of it as project based as the restrictions will not apply to anything outside of the HS2 fence, even though machines might be just a stone’s throw apart. So, do all these schemes around Europe make the same technical demands on machinery? You won’t be surprised to read that the answer is a very firm “no”. For many years now, Switzerland has mandated the use of a diesel particulate filter (DPF) for machines with engines over 18kW. This was well in advance of Europe-wide emission limits which pushed designers in that direction, so it has been common for some years now that either OEMs

have supplied a Swiss version of a product – if they don’t fit a DPF as standard – or their dealer has retrofitted a DPF before sale. That begs another question: how does anyone know that a retrofit solution is any good? Could it be a shiny stainless steel can with nothing inside?

Regulation for Retrofit

The Swiss made sure there were no shiny can devices (no surprise there) by defining performance requirements for a DPF and requiring that they were tested. However, it was also identified in Europe that due to the proliferation of local air quality requirements, and the likely pressure on machine owners to buy retrofit devices, a performance specification that could be applied more widely was needed. The body that took this up was the UN ECE – Economic Commission for Europe. This is a broader body than represented by the European Commission as more countries are signatories to the relevant treaties than are members of the EU 28. The outcome of the work was published as ECE Regulation 132 and there are some really key provisions in it: The device must get the emission levels of an engine to meet the performance requirements of an EU “Stage”.

There must be full consideration of the risks of installation, such as impacts on visibility due to installing a DPF unit and the creation of risks from hot surfaces.

This regulation, then, means that any local authority has a set of tools to use when setting requirements for a LEZ. Firstly, they can require that machines comply with a particular EU Stage, and secondly, they have a way of ensuring that retrofit devices are up to scratch, if installed. However, the ECE regulation is relatively recent (2015) and some schemes were in place before it was published, meaning that they either set their own technical requirements, like Switzerland, or leave things vague. The other element, which is missing from this set of tools, is the legislative mechanism. That will be different from place to place.

Current Schemes

A look around the schemes which are already in place gives an idea of how varied they are in their requirements and implementation schedules. Here are a few examples. • Austria - There is a national scheme and one for Vienna. The national scheme requires machines to comply with Stage II now and Stage IIIA from next year but only applies in the winter months (October to March) and only in specific zones which are having trouble meeting the EU limits for fine particles in the air. On the other hand, the Vienna scheme requires at Stage IIIA but not until 2019. • Denmark - Only Copenhagen has restrictions, with private contractors being required to have DPFs fitted on machines used within the LEZ. • Germany - Berlin has required Stage IIIB since 2014 (IIIA for engines under 37kW) with older

DIGGERS & DOZERS

machinery having to be fitted with a DPF, whereas Mainz requires that anyone tendering for public contracts must have a DPF fitted. Note that this means that some brandnew machines with Stage IV engines installed might not comply! The state of Baden-Württemberg is one of the more stringent, requiring either Stage IV or retrofit DPF from July of this year. They also require that from 1st January 2018 all retrofit devices must comply with the ECE regulation, meaning that there will be a high degree of confidence that the machine will in reality comply with the legislator’s intentions. • Sweden - Sweden has gone a different route. All NRMM must meet at least Stage II (which came fully into effect nearly 14 years ago) or, if they were outside of the scope of the early stages (i.e. under 19kW or over 560) they must not be more than 10 years old. Requirements in some major cities are more strict: Stage IIIA required or machinery under 6 years old. All of these requirements are under review and may become stricter still.

wishing to move machines around Europe is therefore potentially complex in making sure that they comply with local regulations. On the plus side, the publication of the ECE regulation brings some clarity to the question of the performance of retrofit devices and most local authorities have based their requirements on the EU engine emission stages, meaning that newer machinery complies automatically. This has been a key element of the input made by industry bodies during any consultations. At the least, once we are into Stage V, we can hope that it removes any further questions and removes the motivations for setting up local schemes. For some time, at least.

New Proposals for London

London has used the rather clumsy legislative tool of making compliance with the LEZ requirements a condition of planning consents for major developments. The enforcement of this is the responsibility of the relevant borough, meaning that it

Uniformity or Divergence?

There is no sign that this patchwork will come to resemble a blanket. Schemes are being updated individually and new ones are in the pipeline. The situation for contractors

is rather patchy. This has not escaped the notice of the Mayor, who has asked the government to give him better powers to set and control NRMM emissions. This would apparently entail a national machine registration scheme, similar to the DVLA registration of vehicles. Clearly, as this would require some significant legislation, and the civil servants are somewhat busy with Brexit matter, this might not happen too quickly, but watch this space. As for HS2, this requires cleaner machines, and sooner, than London for machines used on the project. These conditions are part of the contract tender requirements, meaning that HS2 as a project has better prospects for controlling emissions than many local authorities have of controlling emissions in an area. From the start HS2 required Stage IV for the Central Activity Zone and Stage IIIB for everywhere else, moving to Stage V and Stage IV respectively from 2020. This means that the HS2 project is currently the most stringent known about in Europe.

DIGGERS & DOZERS

Tipping with Care The Construction Planthire Association (CPA) has released new operational safety guidance entitled ‘Staying Safe When Operating Forward Tipping Dumpers’ which is principally aimed at operators for refresher training purposes. The publication has been released following a number of recent serious incidents involving Forward Tipping Dumpers, key factors of which include overturning of dumpers and individuals being struck by dumpers.

Much of the content of section two has been supplied by the CITB from the Construction Plant Competence Scheme (CPCS) card renewal fact sheets that recheck core knowledge of cardholders on card renewal. The CPA-produced publication has been designed to support a number of existing safe operational guidance publications from the HSE including HSG 144 Safe Use of Vehicles Construction Sites.

A number of construction industry forum meetings have been held in recent months to specifically discuss Forward Tipping Dumpers, with the overall aim of helping avoid future incidents. The first was hosted by the CPA and the Health & Safety Executive (HSE) in October 2016 and afterwards in January 2017 at Tonic Construction. The most recent forum was jointly hosted by the CPA and the Civil Engineering Contractors Association (CECA) in Solihull in September this year. At this latest forum it was agreed that a total of seven principles would be used as a basis of an Action Plan relating to effective vision, machine stability, training and information, competence, travelling on spoil heaps, exclusion zones and equipment selection.

“The issue around dumper safety has become a major topic for our members as well as the industry in general. Because of this, we are coleading the forum along with CECA and as part of our commitment, we pressed ahead to devise this operator-based safety guidance,” says Colin Wood, Chief Executive of the CPA. “This will go some way towards helping industry address the issues, but it is only the first step that we’re taking in setting out guidance for safer dumper operations.” This is a view shared by Kevin Minton, Director of the CPA and Co-chair of the forum. “We are seeking a range of solutions to ensure the operator and others stay safe. As part of the forum’s action plan, the Stay Safe guidance will be the first of a number of documents that will be published through the CPA. Others will include a Good Practice Guide on Forward Tipping Dumpers which will be devised by the Strategic Forum Plant Safety Group, and an update to the Plant Safety Group’s work on Ground Conditions,” Minton concludes. “This update will provide guidance and recommendations for the operation of dumpers on spoil heaps.”

The CPA’s new ‘Staying Safe When Operating Forward Tipping Dumpers’ guidance is divided into three comprehensive sections. Section one consists of a ‘Stay Safe By’ list of actions for operators; section two consists of supporting underpinning knowledge providing the ‘hows and whys’ of each action, and is designed to provide assistance for Toolbox Talks and one-to-one familiarisation activities; section three is aimed at managers and supervisors in terms of planning and supervision requirements. The publication also includes a case study to aid learning, based on an observed event, and outlines the causes and consequences of the activity and how it can be prevented.

The CPA’s Staying Safe guidance can be downloaded free of charge from the CPA website at www.cpa.uk.net/publications

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Latest Lifting Lowdown The Strategic Forum Plant Safety Group (SFPSG) has released a new refreshed plant safety guidance document entitled ‘Lifting Operations With 180⁰ and 360⁰ Excavators.’ Taking into account the prolific use of excavators for lifting operations in the construction and allied sectors, the Strategic Forum Plant Safety Group has revised, expanded and updated the group’s original guidance publication which was first introduced in 2008. Additions to the original document are so widespread that the guidance has increased from seven pages to 72 pages.

designed for lifting operations such as cranes and telehandlers. The guidance details that the use of excavators further introduces a number of additional risks when carrying out lifting operations which are not present with conventional cranes, such as: • Fast articulation and slew movements of the hydraulic services; • The need to operate the boom and dipper arm simultaneously to keep the load vertical when lifting or placing loads; • Standard excavator rated capacity warning devices generally only warn, do not prevent the handling of loads in excess of the rated capacity and can be muted by the machine operator; • That rated capacity varies if lifting over the front and rear or side-on to the machine and if features such as blades, stabilisers and axle locks are engaged or not; • That some appointed persons need may not have the experience of planning and supervising lifting operations with excavators.

The Strategic Forum Plant Safety Group was formed to produce good practice guidance on plant safety-based topics. Chaired by the Construction Plant-hire Association (CPA), the SFPSG also has membership for this project from the Health & Safety Executive (HSE), as well as significant representation from a range of construction and contracting companies, plant hirers, manufacturers and training organisations. This latest guidance adds to a number of Plant Safety Group publications on various topics, produced through subject-specific meetings by those from industry holding the relevant expertise. The new ‘Lifting Operations With 180⁰ and 360⁰ Excavators’ Good Practice Guide thoroughly sets out the precautions and procedures that should be taken into account when planning and carrying out lifting operations with 360⁰ tracked and wheeled excavators as well as 180⁰ excavators/ backhoe loaders. The precautions and procedures specified in the publication should enable work to be carried out safely and in accordance with the law. A core message within the guidance is that in terms of selection of lifting equipment, excavators are primarily designed for excavating and handling loose material rather than lifting suspended loads. The document advocates that an excavator should not be the first or only choice for lifting, even if it is already on site, is quicker and maybe more costeffective than using another, more appropriate, piece of lifting equipment that has specifically

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Topics covered within the guidance include planning and supervision requirements, machine selection, roles and responsibilities, specific issues and maintenance and inspections. A key part of the guidance is a flowchart that introduces a hierarchy and sequence to the planning process. The section on specific issues includes information on the factors that affect topics such as stability, ground conditions, specific issues when using 180⁰ excavators, the use of fork attachments and the effects of tilt-rotators during lifting operations. A number of case studies have been incorporated within an annex which identifies how the changing environmental and load complexity determines the classification of a lifting activity as a basic, intermediate or complex operation. “As lifting using excavators has become much more prolific and in many cases, excavators are only lifting equipment on site, it was time for us to update and expand the guidance, highlighting and emphasising that lifting suspended loads with excavators is no different to the management and execution of the lifting of loads using a traditional crane,” concludes Chair of the Plant Safety Group and director of the CPA, Kevin Minton. “The increased guidance means that lift planners now need to think carefully about just using an excavator for the lifting operations on their site even though it may be convenient. I thank the Plant Safety Group for undertaking and completing this work and ask all those planning and executing lifting operations with excavators to follow the advice given within the guidance,” he continued. As with all CPA Plant Safety Group publications, the Good Practice Guide for Lifting Operations With 180⁰ and 360⁰ Excavators can be downloaded free of charge from www.cpa.uk.net/sfpsgpublications

Paperless Future BigChange rids global construction rental leader Elliott of millions of sheets of Paper

Elliott, the UK market leader in the portable accommodation hire sector has implemented BigChange’s all-in-one Mobile Workforce Management platform across its Loohire portable toilet division, as part of a full rollout across the business including tankers, service and the delivery and collection fleet.

BigChange technology will save Elliott millions of pieces of paper annually and has significantly improved back-office administration. Technicians receive their work orders instantly on the BigChange app with paper job-cards and proof of delivery worksheets replaced by job-specific electronic workflows that guide technicians at every step including risk assessments. Technicians no longer need to return paperwork to the back-office, saving a huge volume of previously manual back-office processing. “Implementation of BigChange Technology is part of our 2020 strategy; to continue to grow our market leading position in terms of scale and transform ourselves to become the market leaders in safety, service and relationship management. The BigChange system is ensuring we can exceed our customers’ expectations with innovative features such as a pre-arrival alert that customers receive ahead of arrival, allowing them to clear the way for our tankers on busy construction sites,” says Adam Dimmock, Director of Loohire at Elliott. “The technology is driving us towards a 15% reduction in transport costs and we’re realising significant fuel savings thanks to dynamic routing and improved driver behaviour.” The hire-specific turnkey solution from BigChange has introduced a paperless revolution, equipping mobile technicians with Samsung and Motorola Android tablets that manage receipt of job instruction, electronic proof of collection and delivery, site servicing, timesheets, electronic start-of-day vehicle walkaround checks and Health and Safety procedures. The system is also a rich vehicle tracking system providing realtime location updates, driver behaviour scoring and tachograph interface. The system is fully-integrated with the Elliott Rental Management system meaning that planned tanker services,

DIGGERS & DOZERS

toilet maintenance, deliveries and collections are automatically pushed through to BigChange. On logging on to the app at the start of each day, drivers and technicians are guided to start their timesheet, conduct a walkaround check that meets DVSA requirements (recording, photographing and alerting any vehicle defects) and have instant access to their jobs for the day.

The workflow also effectively manages damages and chargeable items; photos captured at the point of delivery or collection are automatically relayed to the back office, allowing them to instantly raise an invoice for chargeable work. Photos are time, date and location watermarked, providing robust proof of condition. The BigChange system is providing a detailed work and maintenance history for all rental assets, giving management visibility of productivity and utilisation across their operation as well as a real-world view of how long jobs are taking. The company are using the insight and data to create dashboards that will be shared with customers, giving them a transparent view of the service levels they are receiving. “We are proud to be playing a key part in the Elliott technology strategy,” concludes Martin Port, founder and CEO at BigChange. “Our scalability, flexibility and ability to successfully integrate with Rental systems mean BigChange is the future of managing the mobile workforce in the Hire industry.”

In the back-office, the system is enabling planners to respond faster to customer needs, intelligently allocating work orders based on real-time technician availability, skills and live location. This is significantly increasing productivity and enabling Elliott to maintain its position as the UK’s largest provider of portable toilets and efficiently provide same-day service from its hire branches nationwide to clients across the Construction and Events industry. Its portable loos are used by top-tier construction companies such as Carillion, Keepmoat, Costain and Wilmott Dixon and for flagship events including Glastonbury, Cancer Research UK events and the Olympics.

DIGGERS & DOZERS

On the Up & Up The increasing levels of exports of equipment can be attributed to both improving demand in many of the major overseas markets, as well as the benefit of the weaker £ exchange rate since the middle of 2016, following the Brexit referendum.

Despite continued economic and political uncertainty, imports and exports of construction equipment remained buoyant in 2017. Paul Lyons at the Construction Equipment Association looks over the information supplied by Systematics International.

UK exports of construction and earthmoving equipment remained buoyant in 2017, showing a 21 percent increase in the first nine months compared with 2016. UK imports of equipment also remain strong, showing a 12 percent increase in the first nine months of 2017 compared with 2016. This reflects increased demand in the domestic equipment market this year. UK exports of construction and earthmoving equipment showed a further modest increase in the third quarter of 2017, representing a fourth consecutive quarter of growth. Exports in Q3 showed a 1.3 percent increase on Q2 levels at £723 million, and was the highest quarterly level for over two years, since Q2 2015. Overall, exports in the first nine months of the year were 21 percent up on 2016 levels.

The USA remained the top destination for UK exports in the first nine months of 2017, accounting for 23 percent of total exports on a £ value basis. Collectively, exports to EU28 countries have increased to 44 percent of total exports on a £ value basis in the first nine months of the year, compared with 41 percent in 2016. Imports of equipment showed a reduction in Q3, following the same seasonal pattern as the last two years, “peaking” in Apr/Jun quarter, and “bottoming” in Oct/Dec. However, in £ value terms, imports in Q3 were 6 percent higher than the same quarter in 2016, at £342 million. In the first nine months of 2017, imports are 12 percent higher than the same period in 2016 on a value basis at £1,128 million. Higher levels of imports of equipment in the first nine of the year are consistent with higher equipment sales to the UK market, according to the UK construction equipment data exchange. This shows an increase of 6 percent in equipment sales in the first nine of the year compared with the same period in 2016. Japan remains the single biggest country source of

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imports in 2017, accounting for 20 percent of total imports of equipment in the first nine months of the year on a value basis.

measured in both weight and value terms. In Q3, the trade surplus increased significantly to £381 million, the highest quarterly level since 2014. In the first nine months of the year, the export surplus has shown a 33 percent increase on the same period in 2016.

Overall, the UK remains a net exporter of construction and earthmoving equipment,

UK trade by £ value UK Exports and Imports of Construction Equipment (£ million) 13.2 % 2.0 % 1.3 % % change on previous quarter 39.5 %

2.6 % -14.1 %

Quarterly averages

2015

2016

2017 (Exports are £ fob

and Imports are £ cif)

The data used in this report is taken from HMRC official trade statistics, and covers construction and earth moving equipment (excluding separate trade data for components and parts). Trade data has been used from 9 different HS (Harmonized System) codes. This consists of the following at the 4 digit level: 8413 8474 8479 8701 8704 8705 8426 8429 8430

– concrete pumps – crushing and screening equipment, and concrete, mortar and other types of mixers – machinery for public works – track-laying tractors – dump trucks for off-highway use – concrete mixer lorries and pumping vehicles – cranes (but excluding gantry cranes, overhead travelling cranes and ship derrick cranes) – construction and earthmoving equipment – including bulldozers, graders, scrapers, loaders, excavators, shovels, tamping machines and road rollers – pile driving and pile extracting equipment, tamping and compacting machinery

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The Diesel Debate Faced with ever more-stringent environmental legislation, the construction equipment industry has retained its faith in the trusty diesel engine. And for good reason according to CEA consultant, Alex Woodrow.

As an independent consultant with over 20 years in the automotive and related industries there has never been a dull moment, with a constant ebb and flow of technology, mergers and acquisitions and other challenges to face. One of the constant factors over the 20 years, however, is the continuing pressure on OEMs in all the segments - light vehicle, commercial and non-road mobile machinery to reduce emissions and fuel consumption.

handling. In many of these segments all electric, or hybrid is practical, cost effective, and will lead to improved air quality. However, the future isn’t all electric, at least not yet and it’s not all internal combustion engine, each fuel has its place. For industrial segments, where the end-users are concentrated on productivity, ‘clean’ diesel should, and will, remain the dominant fuel for the foreseeable future.

Working for stakeholders throughout the industry, focussed on powertrain and emissions related technologies, we’re very much in favour of an environmentally friendly automotive industry and related sectors, from powered two wheelers, passenger cars, light commercial vehicles, heavy commercial vehicles, buses, construction equipment, agricultural vehicles, and materials

It should be said as well that these diesels aren’t the diesels that emit black smoke and high levels of NOx, which is invisible, until it forms smog with other pollutants. They aren’t even the ‘clean’ diesels that were heavily promoted by a number of passenger car manufacturers, whose actions will have negative consequences for the broader industry for some time. These are cleaner diesels that produce considerably less than 10 percent of pre-regulated diesels noxious emissions, in machines that on average are at least 15 percent improved in terms of fuel efficiency, operating in an industry where optimising operating costs means the difference between making a profit, and staying in business, and losing money and disappearing. In essence, they are a productivity tool that makes a positive contribution at all levels of the economy.

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So why do we stick with the view that diesel is the fuel for construction equipment, and what have the OEMs done to reduce their environmental impact? 1. R&D spend, even in the most severe recession was between two and four percent of revenues. Across the commercial vehicle and Non-Road mobile machinery segments this equated to around $10 billion per year, of which half on average has been spent on emissions and powertrain improvement, totalling $50 billion over the past 10 years. On top of that a similar amount has been spent on capital investment in plant. 2. Energy density of diesel is much higher than any other fuel, for the majority of equipment, electric would be impractical. Equally gasoline would be impractical, and unsafe in many job sites. Not only would equipment need refuelling a lot more frequently, increasing cost, reducing productivity, Direct injection gasolines would also require adoption of gasoline particulate filters to clean up the PM 2.5 particulates which a modern diesel tailpipe already has regulated through its particulate filter that will come as standard with Stage V. For a typical shift, an all-electric mid-range excavator would need a battery at least five times as big as a typical Tesla S model, costing over $100,000.

•

So, to some extent it’s that volume equation that made it easier for passenger OEMs to ‘game’ the rules. If we do one, we might as well do them all. In the non-road segment where there is a much greater cross-over of engines between OEMs it would be a lot harder to cheat the system.

On a practical level, it also doesn’t make sense to compare light vehicle and industrial vehicles in the same way for a number of reasons: •

66 accounted for the remainder, 128,000 and 8,000 each respectively. However, in the construction segment an estimated 628,000 units where shared across the top 20, or 31,000 each, and another 100 plus accounted for the remaining 134,000 or just 1,300 units each. Many of them don’t have their own engines, of the top 10 OEMs the majority have their own engines, but in the Top 20 less than 40 percent are supplied by in-house, for various reasons. Product variety is several orders of magnitude greater. It is not due to competition that the volumes are so low, just that many machines are specialist machines.

In the light vehicle segment the Top 20 manufacturing groups account for 90% of the global 92m units produced in 2016, on average 4.6m each. A further 30 accounted for the remaining 10m units, or 330,000 each. In comparison in the CV segment the Top 20 accounted for 82% of the 3.1m units, another

The Hybrid Solution

Hybrids and alternative fuels will come, but in low volume initially. The above doesn’t preclude development of electric and hybrid. However, our own detailed assessment of the equipment population, considering load factors, fuel consumption and annual hours suggests that in Europe the below 56 kW segment uses around than 15 percent of the total fuel but accounts for almost 40 percent of the machine population. Already much of this segment is looking to hybrid and electric so economies of scale are improving, and technology has aided here. However, in the larger machines, over 56 kW this is not the case. As machines have become more expensive, mainly due to emissions control, so the rental segment has grown. Across the top machine types in Europe rental is estimated to have a greater than 70 percent share.

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• •

• • In the lightest segment, where emissions are not regulated until Stage V we expect to see a lot more electric models. In many cases where these are used indoors it makes sense. With either an umbilical or a power unit the power requirements mean that the infrastructure for charging is not extensive. As we get into the higher power segments however the power requirements increase significantly. In the light segment, there is also a cross-over between light vehicle systems and non-road electric and hybrid systems, which will allow more cost-effective electrification. In the heavier segments, the volumes will be much lower, and so there will be limited opportunities. Even in the lighter segments there are challenges in the non-road segment for electrification related to the conditions that the equipment works in, compared to the light vehicle segment, such as dust, vibration, temperature etc.

•

fallen, further reducing emissions, and these competitive trends will continue Technology continues to improve, as OEMs get through emissions compliance there will be a focus on Total Cost of Ownership. Operators are becoming smarter, job sites are better designed, corporate sustainability is driving end users to specify cleaner machines Low emissions zones, and public procurement is driving end users towards cleaner machines A well maintained and serviced machine is a more productive machine, telematics shows when machines aren’t working to their optimum level, and will also indicate tampering or lack of compliance OEMs and their dealers are more actively working with their customers to specify and supply the right machine for the right job, not over specifying a machine.

If technology trends follow the CV segment then there will continue to be improvements through the Stage V time period. Many OEMs that didn’t have a DPF for Stage IV, but remain within the limits, will be able to benefit from the trade-off between fuel consumption, NOX generation and PM levels, to use higher levels of EGR and reduce emissions further. At the same time, we expect the initial PEMs tests to show that machines are clean across the whole duty cycle, and offer similar compliance levels to those Euro VI trucks, which will continue to show improvements in emissions and fuel consumption. Those Euro VI trucks that were tested, were the first generation. 2nd and 3rd generation truck have added additional fuel consumption benefits whilst meeting stricter compliance requirements under Euro VI part B and C, and we expect a similar pattern in the construction equipment segment.

Future Changes

So, what else can be done? • Machines have become cleaner in terms of absolute emissions limits and will improve further under Stage V • Efficiency has improved, so that total kWH has

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This is Hardcore Hardox is a name that has forged a formidable reputation for toughness and wear resistance. But do you know what lies behind that famous name?

Demolition and recycling creates some of the toughest operating environments for equipment and machinery components. On any given day, machines might grapple with extreme loads, dust contamination, falling debris and temperature fluctuations. And lots of these workhorses are in sore need of that tender loving care called proper maintenance. Recycling and recovery companies themselves are taking the punch, too. Squeezed profit margins, worker safety concerns, tougher environmental regulations, and growing amounts of scrap and waste all create a full load of challenges. Doing away with waste isn’t just about handling the waste that equipment eats up every day – it’s also about wasted time and money due to equipment downtime. Many recycling and recovery professionals are finding that one source of waste they can control is the quality of the equipment they operate. In an industry where productivity is critical, the steel raw materials used to manufacture the equipment warrant a closer look. In fact, the properties of the steel, combined with the selection of the right steel type based on the application or process, can literally make or break the equipment. This article looks at Hardox®, the “hard and tough wear plate” from steel producer SSAB, acknowledged as the leading wearand abrasion-resistant steel in the construction, demolition and recycling industries.

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Hardness vs Toughness?

Hardox® steel comes in a wide range of grades, widths and thicknesses. But regardless of grade or thickness, the right balance between hardness, toughness and workability is crucial for enabling the optimal design of equipment and attachments and for achieving high performance in aggressive environments. Hardness and toughness aren’t just marketing buzzwords; they’re mechanical engineering terms that describe material properties. Here are some important definitions. •

Hardness: The steel’s resistance to penetration and permanent deformation (in the form of indentation, scratching, abrasion, cutting, etc.) when friction is applied to its surface. The harder the steel, the less the penetration. Benefit: Edges of abrasive material have difficulty cutting into a hard surface, so wear is minimized. • Through hardening: A heat treatment in which the steel is exposed to hightemperature heating followed by controlled cooling. This improves the hardness not just of the outer layer but of the core of the steel. Benefit: All-through hardness results in better performance than surface hardness only. • Toughness: The steel’s ability to absorb energy and resist breaking. It requires both strength and ductility so that it can deform under physical stress instead of fracturing. Benefit: A tough material yields, so it can resist cracks if subjected to plastic deformation.

steel’s formability and weldability decrease. But the toughness of Hardox® wear plate means that it can be used as a structural steel, so fabricators can bend, form and weld it without its losing its properties. Together with its high yield strength, this enables smarter designs that use less steel material while maintaining the product’s strength and enhancing its performance.

Tough yet Flexible

At the Australian recycling equipment company Pacific Shredder, they use Hardox® steel to manufacture shredders that can shred a car into scrap in seconds. The shredder is basically a 60-tonne drum made of 11 rotor disks, with 12 or 16 manganese hammers attached to it. The rotor

With a unique combination of through-hardness and toughness, Hardox® steel possesses structural properties that differentiate it from traditional abrasion-resistant steel, which is prone to cracking and wear and requires frequent replacement. Normally, as hardness increases, the

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rotates at 500 rpm, and the hammers smash the cars against a series of anvils, breaker bars and grids. The inside is armoured with wear plates that stop the flying metal from eroding the entire structure. Hardox® wear plate helps maximize uptime, and reduce maintenance and long-term operating costs for the company. For them, a breakdown doesn’t just mean loss of productivity; it means bringing in a 200-tonne crane to lift their rotor out and repair it. So, durability is everything. And because of the nature of the business, one of the only ways to boost the bottom line is by improving the life of the shredder. “The extra thickness and extra toughness give our shredders much longer life,” says owner Joe Beentjes. “Our wear plates and rotor disks keep on going when others have turned into scrap themselves.” SSAB has a thick plate program that offers Hardox® wear plate in thicknesses up to 160 mm (6.25”) and strengths of 350-600 HBW. Thick dimensions are in high demand from industries like yellow goods and construction machinery, mining and recycling – wherever you find large wear components like crushers, mills, buckets and railway applications. And a clean, low-alloy steel like Hardox® is key for obtaining excellent workshop properties, a flat hardness curve and high toughness.

approved by SSAB in terms of welding, design and manufacturing process. MB Crusher, who produces some of the world’s best-selling crusher buckets for recycling and demolition, is one of the program’s more than 400 worldwide members. All its crusher buckets are made from Hardox® wear plate. Another member, Genesis Attachments, makes the largest cutting shears in the world for scrap processing and demolition. The shears on their monster 420-tonne demolition machine can cut through steel beams two metres high and 85 millimetres thick, yet the truck’s operators say that it still drives smoothly.

Hardox in My Body®

Many manufacturers proudly display a Hardox in My Body® logo on their equipment, machinery or attachments as proof that they are certified members of SSAB’s Hardox in My Body® program. This logo verifies that the product was manufactured using Hardox® wear plate and not an imitation. It means that the truck bodies, buckets, containers, demolition and recycling equipment, or other applications have passed strict quality inspections and are

Like many other manufacturers, these companies collaborate with the steel producer on innovative designs that will improve both the performance and the used-equipment value of their products. Other program members include Trevi Benne, VTN Europe, Indeco and OSA Demolition Equipment. Here’s how the program works. Customers apply to SSAB for membership. Next, SSAB’s wear and structural technology experts analyse the welding quality, production process and design of the product. When a product is approved, it then receives a sign and a unique ID that allows traceability back to the production source, right down to the individual steel wear plate used to manufacture the product.

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When AI Meets Construction Construction equipment giant Volvo foresees a future in which the lines between man and machine will become increasingly blurred.

The potential for artificial intelligence – or AI – is high on the social agenda. Seemingly, everyone from Facebook founder Mark Zuckerberg to Tesla CEO Elon Musk has an opinion on the impact of AI on our everyday lives. But how will the technology of today impact the construction of tomorrow?

Early adopters are already using the technology to increase the efficiency, safety, and quality of construction projects.

Machines Mimic Man

So, what exactly is artificial intelligence? It is a collective term used to describe when a machine mimics human cognitive functions, like problemsolving, learning, and pattern recognition. AI includes a process called machine learning, whereby algorithms are used to enable a machine to learn from the data it is exposed to. Therefore, the more data to which a machine is exposed, the better it will become at understanding and provide insights.

Once confined to the pages of science fiction novels, artificial intelligence (AI) has now become a reality that cannot be ignored. In many ways, we are already using AI – from the news feed we read on our smartphones to the software that enables us to shop online securely. We no longer see AI as a far-fetched concept resigned to our imaginations, it is something we are experiencing and benefiting from every day.

In a time when humans are increasing data creation every day, AI provides an endless resource for machines to learn and adapt. But how does that translate to the construction industry? The volume of data generated on an average construction site is growing – from images captured via mobile devices, to drone videos, security sensors, machine telematics, Building

The advantages of AI are limitless and permeate not just our everyday lives, but across all industries. For the automotive industry, the launch of self-driving cars means a faster mode of transportation and a significant reduction in accidents and emissions. A similar statement can be made about the construction industry.

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Answering the Questions of Tomorrow What does the future have in store for the plant sector, and what might its role be in an ever-changing construction industry? Tim Ballard, Finning Business Transformation General Manager, shares his insight.

LWill we have fully autonomous equipment? Will highly-trained operators sit in site accommodation or offices remotely operating plant? Will site operatives wear digging suits and become walking machines? Will we hit the print button for that replacement part? Will deep learning and AI transform our supply chain? Will big data surface new insight into how we operate? Will 24/7 working be just that? These are all big questions that decades ago would

have been laughed at as pipe dreams or science fiction. Will these things happen? They might, but what we visualise today might not actually answer the demands for the future, so we should be much more open to new ideas and be agile enough to deliver the change needed to make these ideas a reality. But one thing is certain, there will and has to be a step change in the cohesion of the plant sector with the wider construction industry it currently serves, but should be a much more integrated part of.

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This approach has already seen the roll-out of drone services in partnership with Airware Redbird; a slicker data intelligence approach; improved connect assets; and other technologies to follow. Our partner Caterpillar, through Caterpillar Ventures has also invested in Airware and other digital businesses that support industries like mining. These include software solutions providers like busybusy, whose time and equipment app allows data captured to be instantly visible to managers, supervisors, and owners, helping them to make better informed commercial decisions. So what these technology solutions and others like them will do is put equipment data along-side people related data and therefore create a much bigger picture of a site, and the impacts that can be made on its overall performance. This will therefore help to make the move to a more agile, cohesive and integrated construction industry.

Progress has already been made towards this new relationship, as the plant sector has seen its position as a supplier of operated equipment losing its relevance. This is particularly the case on larger projects, as main contractors increasingly seek much more integrated and technology driven solutions to deliver their earthworks.

VR and Augmented Reality

Similarly, we have been using VR technology to excite and recruit future talent to our business. For example, we recently virtually transported a group to the Caterpillar visitor centre in Malaga, without even leaving the UK based meeting room. The reaction we had from the individuals involved was brilliant and for me it opened my thinking to how the industry could use technology to attract talent, by letting individuals experience what construction is all about from a safe environment.

But there is much more to do and the one thing the whole industry needs to focus on is how to speed up innovation, the adoption of new solutions, and therefore new ways of working. Some of the key issues impacting this may be the tight margins in the construction industry, which restrict spending on innovation and reduce the appetite for any perceived additional risk. The sector is also challenged daily to effectively manage the health, safety and welfare of those who work in it. Couple these elements together with an aging workforce, increasing skills shortage and a difficulty in attracting people into the sector and we have a great deal of challenges to overcome to move the industry forward. This is of particular relevance as we now clearly understand that with a more diverse and inclusive workforce innovation and ideation is enriched and delivers far better results due to different perspectives and thinking.

So I was even more excited to see the Government recognising the role of technologies like VR with its recent ÂŁ1 million investment in VR and augmented reality research, specific to the needs of the construction industry. The project supported by Innovate UK will see the development of an augmented worker system

An Exciting Future

This is why the future is so exciting and why the industry needs to look more broadly for perspective. At Finning we have recognised that this is not just a UK and Ireland opportunity, but a global opportunity. This is why in 2016 Finning Digital was created; a separate business with an agile start-up mentality, aimed at opening up new possibilities for innovation, whilst exposing the organisation to different technology partners, approaches, collaboration and insight.

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(AWE) for construction, with the system using hightech goggles, in tandem with BIM, to reduce costs and waste by 25 percent and increase productivity by 30 percent. This will be achieved by using realtime individualised data, analytics and instructions during the construction and operational stages of a project with the additional benefit of increasing operatives’ well-being.

The role of the human overseer will be to remotely manage multiple projects simultaneously, accessing 3D and 4D visuals and data from the on-site machines, ensuring the build is proceeding to specification. The very few people accessing the site itself will wear robotically enhanced exoskeletons and will use neural-control technology to move and control machinery and other robots on site.’ Introduce deep learning and machine algorithms and we may see exponential learning reaching new, for now unseen solutions.

By developing industry standards, guidance and frameworks for new approaches like this, we can collectively work together to unlock the value and enhanced health and safety benefits that can be achieved by this.

If we look at some of these predictions and compare them to where we stand today, we are stepping onto the path, particularly when it comes to connectivity, 3D and drone use. For example, at Finning we are now retrofitting Caterpillar and other OEM plant with our latest cellular telematics device, the PL542. This records data from the individual equipment and transmits it for easy viewing in a Product Link user interface, such as the VisionLink web application. So, for the first time, we will be capturing and reporting on not just Cat equipment, but whole mixed fleets. And it’s ‘plug & play’.

Augmented Workers

Just as quickly as we transition to new approaches like AWE, other disrupting technology or solutions may take over. According to ‘A Digital Future for the Infrastructure Industry’ recently published by leading contractor Balfour Beatty, by 2050 ‘the construction site will be human-free’. To justify this prediction, Balfour goes onto explain that ‘robots will work in teams to build complex structures using dynamic new materials. Elements of the build will self-assemble. Drones flying overhead will scan the site constantly, inspecting the work and using the data collected to predict and solve problems before they arise, sending instructions to robotic cranes and diggers and automated builders with no need for human involvement.

Similarly, when it comes to 3D, our colleagues at SITECH UK & Ireland, the Trimble dealer, have seen a dramatic increase in the use of 3D machine control, with Highways England

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flights, we have significantly invested in both the hardware and the skills of the individual Finning pilots.

Patch Me In

But for me probably one of the most exciting opportunities will come from wearables, like smart connected glasses. These devices could then be used to support customers to self-fix machines with help from one of our experts. Picture the scenario of a piece of equipment in a remote location having either broken down or needing a part replacing by the operator. The connected machine has been purchased with a pilot projects like the A1L2B Leaming to Barton motorway widening proving the benefits of the technology. In addition to the quality, time and digital map this technology gives, it may also remove people from the jobsite, making our work a safer place. But in order to get to the ‘human-free’ site, we have to take this technology forward to semi and then complete machine autonomy in the future. To do this we will need more highly skilled plant operatives trained to use this technology. In that respect it’s particularly good to see the CITB investing £1.2 million in 16 new simulators to train the talent of the future. I’m sure we’ll also see augmented reality, VR goggles and wearable tech entering the toolkit in my lifetime. As technology develops we will need all kinds of new skills, particularly with the potential that drones alone can offer the industry. Some roles and skills of the future will not exist today… and predicting them may be more difficult than ever due to the fast pace of innovation. With contracts like our recent agreement with Midland Quarry Products now including the use of drone

set of smart glasses, has already sent its health data in real-time to our engineer and the operator has put on the smart glasses and is standing next to the machine. The part has been dispatched to the exact location, having been pre-ordered by the machine itself the day before. They then patch in our engineer who can see what they see and can talk them through the work. The machine self-tests and reports back that all is well and the operator carries on working. There are so many advantages to this approach. It will have the customer back up and running faster and an engineer won’t have to visit the site, saving time and carbon.

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Printed Parts

“As part of the planning process, we worked alongside Finning to show the team at Balfour Beatty just how we can monitor performance on site,” Hester says. “Through VisionLink, we’re able to provide data on payload, fuel burn and overall performance of each core machine on site.”

In a similar vein, in the future technology could and should allow you to print replacement parts. So here the engineer will turn up to fix a machine with a 3D printer. Imagine if they open it up and discover a part failure, instead of having to order the part they will simply scan the machine code in and their handheld device (or augmented glasses) which will locate all the information they need for a 3D printer to print the part in their van.

When Flannery were awarded the project, they purchased a wide range of new Cat machines through Finning, ranging from five to 50 tonne excavators and the latest ADT’s, including the Cat 730C Ejector Truck which is fitted with the Cat Production Measurement system (CPM).

Operating equipment can be very tiring and when someone is tired they are far more prone to having accidents or to have slower reaction times. With plant being by its nature very large and therefore dangerous, tackling tiredness and other health related issues like heart attacks is going to be increasingly important.

The payload on the machine is shown on the incab monitor which enables operators to ensure the truck is not under or over loaded, which in turn optimises fuel burn per tonne on each cycle meaning the productivity of the machines are more efficient.

Caterpillar has already developed in cab technology that monitors the eye movements of an operative to support safe working and with wearable technology like smart watches monitoring health and being connected into a machine, technology will be able to prevent accidents by disabling the machine and even a call for help.

This information is being used by Balfour Beatty to provide the best possible carbon footprint on site as well as being able to see the impact of the fleet. No matter where the units are working on the new 20.1 km dual carriageway the data can be sent and received in real-time. For the team onsite this data is sent via VisionLink into the online portal, where management and the Balfour Beatty team can access it from any connected location.

It’s a challenge to look at the opportunities that technology and new thinking will bring in the future, we will have so many options to consider. Therefore, the most important thing the industry needs to do is work together in a cohesive way. Not long ago the thought of an electric Cat excavator or dozer on a construction site was the future… now it might be considered the past?

“From a performance perspective, we have also witnessed a dramatic increase in cycle times, not to mention the reduction in the use of more-expensiveto-run dozers,” Niall Hester concludes. “Each day we are learning more about the performance of equipment and this information is being shared with Balfour Beatty, so we can all see the benefits of technology driven project management.”

The future is already here

As we look to the future we must learn from the successes of today and work with those businesses that are willing to invest time and resources into new methods of working. Balfour Beatty is not just writing about the future, they are also showing leadership today with its connected Norwich bypass worksite. Having recently partnered with Flannery Plant Hire on the earthworks delivery for the project which is officially known as the Northern Distributor Road (NDR). On a recent visit to the site we spoke to Flannery’s Operations Manager, Niall Hester about the project: “We have worked with Balfour Beatty on numerous projects over the years, but the significance of the Norwich Bypass is the collaborative approach we have taken with sharing data and information.

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Emerging Technologies

Manufacturers like Volvo Construction Equipment are exploring how emerging technologies can increase the safety of job site personnel. After launching Compact Assist in 2015, an operator assist program, Volvo CE is now developing AI algorithms, which detect and decipher specific objects using several computer vision methods. The advanced system sends a warning message to the operator to reduce the risk of accidents. As well as increasing safety, AI has many other benefits, like performing mundane, repetitive and sometimes dangerous labour-intensive tasks. “AI techniques can help inexperienced machine operators to carry out complex tasks, which they otherwise could not,” says Dr. Fares Beainy, machine intelligence program leader at Volvo CE. “It’s advantageous in an industry that’s finding it increasingly difficult to source highly skilled and experienced operators.”

Information Modelling (BIM) and more. The main challenge, however, is not capturing all the data, but rather, implementing a system capable of managing the information, allowing customers to make the most out of it. AI programs deliver precise data and insights, helping construction contractors maximize the safety, value, and productivity of worksites. For example, Smartvid.io – a photo and video management platform used by construction companies such as Skanska and Arup – uses AI to sift through mass quantities of images and videos taken at a construction site and spot potential hazards. The software uses image recognition algorithms to identify specific search criteria, like hard hats, safety vests, and hi-vis colours so that it can unearth images to highlight those construction workers who are not wearing the proper safety attire or are possibly violating safety guidelines. Within a matter of minutes, the search results are collected, collated and delivered to a site supervisor – a task that would otherwise take several hours to complete.

Research suggests that in the coming years, some jobs could be automated, leaving many people to worry about their future employment. But as it turns out, the rise in AI is not as terrifying as science fiction would have us believe. Autonomous machines are simply part of evolution, according to Dr. Beainy. “When the first hydraulic machine was introduced, people had similar apprehensions. But, with change came new opportunities. The same phenomenon is happening with the introduction of AI. It will be gradual, but by the time intelligent and autonomous machines are implemented into construction, new jobs will have been created to complement them.”

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Visions of the Future Several companies and organisations used 2017 to lay out their visions for the future of the construction industry. And since when construction sneezes demolition catches a cold, we have compiled the highlights of these futurist manifestos to prepare you for what might lie ahead. The fact that two of the UK’s largest construction companies – Balfour Beatty and Mace – took the opportunity to present their vision of the industry’s future in the past few months is indicative. It is indicative of the fact that these companies have time on their hands and sufficient disposable income to fund the kind of research such visions require. And it is indicative of a desire to not live hand-to-mouth; to set out a pathway to future prosperity; to forge the route ahead.

According to the company’s report – Moving to Industry 4.0 – A skills Revolution – the industry will “need to reskill over 600,000 construction employees over the next two decades, from trades vulnerable to technological change to new roles created by technology.”

In the absence of a demolition company doing the same and since the whims and fancies of construction companies ultimately tend to be the rules by which demolition must abide, we have unpacked and unravelled these futurist manifestos. We have also taken a look at the one from the Construction Industry Training Board (CITB) which spent much of the past year with the sword of Damocles dangling precariously over its exposed throat.

“…For many years, the poor practices prevalent in the construction industry have hindered our productivity performance. Inadequate design processes, poor project management, insufficiently skilled labour and underinvestment in digitisation, innovation and capital are all parts of the problem.

Industry 4.0

This means that the construction industry needs to undergo wholesale change if its productivity performance is going to improve.

Concerned at what chief executive Mark Reynolds describes as the “construction industry’s lacklustre productivity”, construction giant Mace foresees a “fourth industrial revolution or ‘Industry 4.0’. A move to a world in which technology from artificial intelligence to advanced robotics to autonomous vehicles will transform how businesses operate and how buildings are created.”

The good news is that the beginning of a fourth industrial revolution provides a huge opportunity for this much needed improvement to happen.

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The move to Industry 4.0 will be built on a range of new technologies that can connect the physical, digital and biological worlds. Artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3D printing and nanotechnology are going to completely transform the business and consumer landscape. These innovations and new technologies have enormous potential for construction, from redefining how cities are planned and buildings are built, to reimagining how people interact with property and infrastructure.

technological change occurs slowly, that figure is expected to fall to just 211,000 by 2040. If technological change occurs at a medium pace – similar to that experiences in the manufacturing sector from 1979 to 1999 – the total number of construction jobs would fall to just under 130,000. But if technology is embraced at the rate seen by the replacement of rail signal operatives and crossing keepers in the rail industry between 1979 and 1999, the number of jobs in 10 key construction roles would be just 48,000, a fall of a staggering 94 percent. A copy of this report can be found at: https://tinyurl.com/y8oowrum

Although the potential is vast, the benefits are by no means guaranteed. The challenge is how we can overcome the construction industry’s poor track record on innovating and adopting new technology…” Mace is keen to point out that its vision of the future is not a recipe for mass redundancies and man being replaced by machines. However, the analysis for the company’s report looks at the top ten construction occupations most vulnerable to the innovation of Industry 4.0, and how the different scenarios of technological advancement would affect them.

Human-Free Zone

If the employment predictions made by Mace are stark, then the predictions made by Balfour Beatty in its recent report “Innovation 2050 – A Digital Future for the Infrastructure Industry” are positively dystopian.

“…in the coming age of automation where people might work 10 or 20 hours a week, man – for the first time – will be forced to confront himself with the true spiritual problems of living…” Frankie Goes to Hollywood.

“…The construction site of 2050 will be humanfree. Robots will work in teams to build complex structures using dynamic new materials.

Elements of the build will self-assemble. Drones flying overhead will scan the site constantly, inspecting the work and using the data collected to predict and solve problems before they arise, sending instructions to robotic cranes and diggers and automated builders with no need for human involvement. The role of the human overseer will be to remotely manage multiple projects simultaneously, accessing 3D and 4D visuals and data from the on-site machines, ensuring the build is proceeding to specification.

The main takeaway is that the number of people working in occupations such as plastering, bricklaying and labouring is likely to fall by tens of thousands of people in the next 20 years. Indeed, the report suggests that the number of construction labourers might fall from the present 127,000 to just 7,520 over the next two decades. The number of plant operatives would fall from 42,000 to less than 2,500 over the same period.

The very few people accessing the site itself will wear robotically enhanced exoskeletons and will use neural-control technology to move and control machinery and other robots on site…”

In a diagram called, simply, Employment 2040, Mace envisages a world in which slow, medium or fast technological change has impacted upon current labour levels within the UK construction industry. According to that diagram, the sector is expected to employ around 813,000 people by 2021. If

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The infrastructure and construction industry has not yet seen the same rate of transformation as some other industries, but that is beginning to change – and the change will be both significant and unstoppable. “Big data” will facilitate more evidence-based decisions and a better understanding of the customer, while technologies currently in their infancy will mature and new technologies will enable us to deliver faster, better and safer. The rapid pace of digital change is only set to increase. It will redefine infrastructure and construction and the industry will need to anticipate that change and adapt quickly, becoming more innovative and less risk-averse, in response. We must be ready to embrace new technologies as well as new possibilities and ideas as they emerge. But we must be prepared to balance the benefits with the risks.

At best, such predictions might raise concerns of mass unemployment as one of the UK’s largest employers – construction – merely abandons its reliance upon humans. At worst, such a prediction seems just a little too close to the future predicted by movies such as the Terminator franchise in which machines become self-aware and mankind is hunted to the very brink of extinction. However, Balfour Beatty believes that the rise of digitisation and robotics in construction will bring about a huge increase in productivity in what is a very large but historically low-productivity sector. It will increase efficiency, solve the issue of skills shortages faced by countries around the world and take the danger out of building, making Zero Harm a reality. What is the driver behind these changes? Infrastructure is a political and economic priority in many countries across the world. Increasingly complex projects are being commissioned to stimulate sluggish economies, upgrade old systems and cater for growing and changing populations. With high economic growth and fast-growing populations leading to significant urbanisation, the demand for new infrastructure is predicted to see massive growth in coming decades. Other new challenges: changing demographics; the increasing expectations of businesses, service users and the public; and the need to reduce carbon emissions and waste, all create a dynamic and testing environment for the industry and those commissioning new projects.

“…The construction site of 2050 will be humanfree. It will increase efficiency, solve the issue of skills shortages faced by countries around the world and take the danger out of building, making Zero Harm a reality.…” Balfour Beatty.

Balfour Beatty believes that the infrastructure industry must modernise in order to secure its own future. Those companies at the forefront of the digital revolution, which integrate new technologies most effectively, updating their business capabilities and their offer, will reap the biggest rewards…” A copy of this report can be found at: https://tinyurl. com/yadt24ve

Industry Insights

The Construction Industry Training Board spent much of 2017 with its very existence hanging in the balance and hinging upon a show of support from levy-paying members that have become increasingly critical of the CITB’s failure to help avert the current skills shortage. Perhaps that explains why its report – Industry Insights – looks just four years into the future or to roughly the time its position as the industry’s main provider of skills training comes up for review once again.

In a fast-paced, dynamic and constantly changing sector such as construction – or demolition, for that matter – it is often difficult to predict what might happen next week let alone what might happen in 30+ years’ time.

But – as its name suggests - the report is not lacking in insight or foresight.

“…Nobody knows for certain where the Digital Revolution will take us, but it holds massive potential to transform both the industry and the built environment.

Although a decline in construction demand and activity has been reported by market intelligence provider

DIGGERS & DOZERS

The Builders’ Conference over the past years, the CITB believes that the sector will experience more growth over the period 2017 to 2021 with infrastructure – notably HS2 – providing some much needed impetus.

“…The impact on the construction pipeline of Britain’s vote to leave the European Union is one of the most significant unknowns. Fears have already been voiced in some quarters about the long-term supply of capital and labour into the UK following Brexit, both of which could dampen output.

“…Having come through a year of unprecedented political and economic uncertainty, the early indications are that the construction sector will continue to grow from 2017 to 2021, with infrastructure spend carrying much of the weight in the coming years…”

That said, UK GDP has held up relatively well since the Brexit vote, stabilising at around 2% throughout 2016, while inflation is set to peak at 2.5 percent in 2017.

In particular, the CITB report highlights the potential impact of the UK’s decision to leave the EU as a “significant unknown”.

As wider economic turbulence can affect many parts of construction, the commitment to infrastructure is helpful to the forecast. But, with

DIGGERS & DOZERS

output growth so reliant on these major projects, any shifting of the goalposts on, for example HS2 or nuclear new build could be felt throughout the industry. If, for example, Hinkley was taken out of the pipeline, total construction output for 2021 would be 0.8 percent lower than currently predicted. And the reliance on large infrastructure projects means that forecasts, particularly those made over the longer term, are less balanced than in the past. Infrastructure will account for 45 percent of construction output growth over the forecast period. However, the changing of the guard at the top of government in the UK has, so far, not affected its commitment to the National Infrastructure Delivery Plan. The government is still pledged to invest over ÂŁ100 billion in infrastructure by 2021.

Profitability remains a concern, with the volatility of material and labour costs squeezing margins. The situation is not helped by deteriorating levels of productivity, and there is also the prospect of a potential gap in the labour market resulting from any changes to immigration policy. While the outlook appears mixed, this is not unexpected given the high degree of uncertainty in the wider UK and global economy. On the positive side of the ledger, construction output in 2016 was expected to have exceeded its pre-financial crisis peak of 2007. However, the growth in output in 2016 was not at the same level as the previous two years. For the period up until 2021, construction output is anticipated to grow at an average of 1.7 percent, just below the 1.8 percent expected average GDP growth. Average construction employment, meanwhile, is expected to grow at just 0.6 percent over the next five years, slower than in the recent past and below the 1.1 percent predicted for the 2016 to 2020 period a year ago. That 1.7 percent expected annual average growth in construction is also significantly down on the 2.5 percent forecast just 12 months ago for the 2016-2020 period. The economic slowdown and ongoing political uncertainty has undoubtedly affected the forecast, especially in the early years. Yet, with longterm pipeline infrastructure projects finally coming to fruition, construction remains in good shape to weather potentially difficult economic headwinds. A copy of this report can be found at: https://tinyurl.com/ yc2bazuk

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