Skip to main content

New solutions, new competition

The early part of 2012 will see a whole host of new technology coming to market, as manufacturers introduce their latest models and solutions. At the same time, the construction equipment market is also seeing an increase in competition, with Chinese firms making serious inroads into the global supply sector. These new technologies and new competitors will ensure that the construction equipment sector will see major changes during this year. From a technical viewpoint, one of the biggest technical challenge
May 29, 2012 Read time: 3 mins
The early part of 2012 will see a whole host of new technology coming to market, as
manufacturers introduce their latest models and solutions. At the same time, the construction equipment market is also seeing an increase in competition, with Chinese firms making serious inroads into the global supply sector. These new technologies and new competitors will ensure that the construction equipment sector will see major changes during this year.

From a technical viewpoint, one of the biggest technical challenges has been meeting the necessary emissions legislation required by the EC nations and North America. This has been an extremely costly process, requiring extensive research and development, with firms offering solutions utilising an array of technologies.

None of the firms have taken exactly the same route to achieving the low emissions performance required as any other, although broadly similar systems are used in many cases. At the same time as delivering the reduced emission levels, companies have also managed to reduce fuel consumption and extend service intervals, helping offset the extra costs of these advanced new engines to customers over the long term.

For most companies, the emissions technology forms an integral part of the engine and cannot be removed at a later stage. This does pose questions in the mid-long term, as the engines require clean, low sulphur fuels. Sales of second-hand machines powered by these engines will not be possible to developing nations where low sulphur fuels are not available. However, at least one manufacturer has developed its emissions control package along modular lines, which could allow the system to be removed at a later stage in its life. And, in theory, this could allow machines with such engines to be traded into developing markets, with less concern over the quality of available fuels.

At the same time as the new low emission engines are being launched, Chinese manufacturers are also introducing new machines worldwide. And rather than relying on exports to developing nations, they are also looking to develop long-term supply chains in the developed markets. Distribution chains have yet to be fully established, but many of the major firms have hired western executives and acquired existing
companies in Europe. 1175 Zoomlion bought Italian concrete pumping firm 2203 CIFA and 269 LiuGong recently completed its purchase for the Polish 3420 Dressta bulldozer line. But the biggest acquisition was 1170 Sany’s purchase of German firm Putzmeister, a leading concrete pump brand. Sany will be able to learn how 1259 Putzmeister services and supports its machines, expertise that will likely be rolled out across Sany’s other operations in due course.

If one thing about the construction equipment market is clear, it is that the industry is in a process of transition. While new technologies are being developed, Chinese  firms are also using the economic strength to establish a much greater international
presence than ever before. How the industry will look 10 years from now remains to be seen.

For more information on companies in this article

Related Content

  • Boom in Asian infrastructure investment
    April 5, 2012
    Investment in China and India continues unabated, but other nations on the continent are eager to attract companies as Patrick Smith reports Asia is still booming despite the current economic crisis, and new infrastructure programmes are constantly coming on stream. Powerhouses China and India, with their double-digit growth figures and huge infrastructure plans (in scope and cost), are leading the way and are still magnets for businesses wishing to expand, both in terms of facilities and customers. But oth
  • Data handling for efficient machine control
    October 16, 2012
    The rapid increase in information availability is transforming the construction sector. Conventional methods used for sourcing geographic data based on maps and localised sampling meant that there was often a lack of accurate information relating to ground conditions at specific areas where work was planned, often resulting in unwelcome surprises for construction companies along with additional costs for projects.
  • Samoter-Asphaltica 2014 sparks greater Italian optimism
    July 3, 2014
    The recent co-located Samoter and Asphaltica exhibitions at VeronaFiere in Verona, Italy, have been hailed a success by organisers, exhibiting companies and trade delegations, after more than 40,000 visitors, including thousands from outside Italy, attended the combined 445 exhibitor company-strong four-day events. There is no doubt, as Guy Woodford reports, they provided a timely boost to an Italian construction equipment manufacturing sector enduring tough times
  • Tough competition in concrete paving market
    February 13, 2012
    One thing is clear in the concrete slipforming sector. This comparatively niche market for equipment is rapidly becoming a good deal more competitive as key manufacturers jostle for position.