As I type these words, Bauma is almost upon us and it promises to be a very good show in terms of new machine launches. Most of this issue is devoted to details of new products being exhibited at the show and many other machines are expected to be unveiled in Munich. Full details and pictures of the newcomers will be provided in the next issues of CP&E.
However, seeing new machines is just one reason for visiting a major exhibition like Bauma. Equally important is the opportunity to network and discuss not only developments in technology and better operational practice but also the state of the industry itself. Being able to take an industry health check and assess future business potential is currently more vital than ever given the challenges faced by many companies in the last 18 months due to the global economic crisis.
For most construction machinery manufacturers there was never any doubt that they had to be at Bauma. This is the world exhibition for the construction equipment industry and, as it is only held once every three years, being seen to be there, even in these difficult times is essential for all serious contenders.
Whilst many stands will not be quite as lavish as they were three years ago, the exhibitors will be hoping that their investment in these cash strapped times will prove to be money well spent. They will be looking for signs of an upturn and more confidence from potential buyers.
The scale of the recent downturn was highlighted by David Philips of Off-Highway Research at the recent CEA (Construction Equipment Association) conference in London. He stated that, for many manufacturers, unit demand has been down by as much as 80% and that there is little sign of any rapid recovery.
As reported in our sister publication Contractors World, David Phillips says that the two markets where growth has been maintained are China and India. In other countries, he states that demand is becoming more positive but is at very low levels.
At the recent IPAF Access Summit in London, the initial results of research commissioned by the International Powered Access Federation into the state of the access rental business was revealed. This indicates that the access rental markets in Europe (based on 11 countries) and the US have fallen by some 11% and 25% in value respectively since their peaks in 2008. Full details of this research will be available from IPAF at Bauma.
The state of the UK rental access platform industry was highlighted at the IPAF Access Summit by AFI-Uplift Chairman David Shipman. He painted a gloomy picture by revealing that, since 2008, business levels have declined by 15% to 25% with a 10% to 20% fall in hire rates. With increased price pressure apparent from contractors, he proposed (and is financially prepared to back) the creation of an IPAF campaign to further promote the benefits of using powered access to help increase demand and justify higher hire rates.
Meanwhile, there is some encouraging news from JCB. Chief Executive Officer Alan Blake says, “We are pleased to return to the position of being able to offer pay rises to our workforce. There has been a slight improvement in some markets which has led to some increased demand for JCB’s products and, while we can’t say at the moment if this situation will be sustained, we are pleased to be offering overtime and recruiting again.” These are certainly steps in the right direction.
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