MARKET REPORT COMPACT PLANT


Recovery continues


Suppliers report that compact plant sales have continued to grow this year as hirers renew and expand their fleets, and are confident that the market will strengthen further in 2014.


Without exception, the manufacturers that EHN contacted for this introductory article in our Compact Plant Market Report highlighted the mood of greater confidence throughout the industry, which has led to increased sales of mini excavators and other equipment this year. Another commonly expressed view was that sales have grown significantly during the third quarter of the year after a relatively flat six months, making it difficult to forecast a total for the number of machines sold in 2013. And the fact that individual markets are recovering at different rates makes it similarly difficult to predict the pace of future growth. Nevertheless, informed estimates suggest that a figure of between 11,500 and 12,000 minis of up to 8 tonnes will have been sold, approximately 10% up on 2012.


“Hire is a traditionally reactive industry, and we are now talking to many more customers who are planning their purchases for 2014 as they respond to the construction upturn,” said Robert Brown, MD of Ammann Equipment. “They are looking to refresh the age profile of their fleets as they replace older machines, and many are adding more to meet demand. This year we have seen particular growth in 3, 5 and 8 tonne mini sales, with the largest of these machines representing approximately 20% of the total. More housing


developments are getting under way, and many are being


Ammann Equipment reports particularly strong sales of its 8 tonne mini excavators.


constructed in small batches rather than


building on the entire site in one go, leading to demand for machines that have a smaller footprint than a 14 tonne unit but with similar reach capabilities.


“Also, some hirers who initially offered nothing larger than 1.5 tonne minis have subsequently added 3 tonne models, along with additional delivery vehicles with the appropriate payload capacity. Some are now buying 5 tonne machines to meet demand and maximise their transport utilisation. Demand for 1.5 and 2.6 tonne models has largely been driven by utilities contractors, which are,


41


in many cases, served by national hirers who have been refreshing their fleets, but interest is now also growing from smaller hirers.”


David Munns, Sales & Marketing Director with Volvo Construction Equipment, says that the company’s mini sales have risen this year, but from a relatively low base. “Like many manufacturers, we acted early and prudently when the downturn began in 2008, reducing our stocks and setting


conservative targets, which we have exceeded this year, with a


significant increase in 1.5 and 2 tonne


Volvo has sold more minis of between 1.5 and 2 tonnes this year.


machine sales. We believe the market fell away slightly in the early part of 2013, but, overall, we have sold more than in 2012. Looking ahead, customers believe that the house building increase and government infrastructure spending will maintain their momentum, especially as we approach the 2015 general election. We are talking to a lot of hirers about the new machines they need for next year, and we are increasing stocks accordingly.”


Hirers replacing and growing fleets


Also positive is Dave Roberts, MD of Kubota (U.K.). “We know from the sales of our engines to OEMs in many markets that demand for equipment is rising. Regarding minis specifically, hirers have been replacing and growing their fleets, some having kept hold of machines since the recession started. Others that reduced their fleets now report that their yards are virtually empty due to increasing business. What is particularly pleasing is that demand is across several key markets, such as house building, civil engineering and infrastructure projects, suggesting a sustainable recovery.


“Demand for our 5 and 8 tonne machines was stronger earlier in the year, followed by increased sales of smaller minis down to 0.75 tonnes. So sales are being placed in all weight categories, which bodes well for 2014.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60