As new tech and impending restrictions impact the concrete machinery sector, end users are looking to future-proof their purchases. Jamie Knights gets the lowdown.
The Middle East is resplendent with construction and opportunities are out there. Companies on the ball are profiting, such as Chinese-based Shantui, which recently made headlines with its $3.2m (AED11.75) deal in the UAE for 50 concrete mixer trucks.
One would assume this is all great news for the concrete sector. But with prices in the doldrums and plenty of new competitors, all that glitters is not necessarily gold.
The key to success is therefore in efficiency, and with new technology, improved materials and the imminent arrival of new legislation, the concrete machinery sector is working hard with contractors and third parties to provide relevant and financially viable products to market.
Wajih Eit, vice head of area, CIFA, asserts that European customers are already demanding “sophisticated technology” and that “will be a driver in the Middle East in the future”.
“We have the hybrid mixer here, CIFA Energya E8 – E9, which can be run on electrical energy,” he explains.
“Bearing in mind the targets that have been set out in preparation for Expo 2020 Dubai, I think that this will be one of the future products for the Middle East.
“Only CIFA has these types of technology: the hybrid mixers and the Carbotech concrete pumps – they are patented technologies.”
Carbotech designs have allowed CIFA to decrease the weight of pumps, which results in the possibility of longer booms.
This allows smaller trucks to be used for the pumps and the company is already planning the launch of its 60 metre CIFA K60H for an 8×4 truck in the region.
Of course the question has to be asked whether or not customers in the Middle East are demanding this type of technologically advanced product?
Eit concedes the K60H “is never going to be the best-selling concrete pump in the Middle East because of the technology it employs”.
“We have the Smartronic system – an automation system – that is very sophisticated and it will now be available in the Middle East,” he says.
“Nevertheless, we have a number of high-profile customers: Saudi Arabia’s Al Tawi and the UAE’s Al Fara’a, and many others. They have visited CIFA and they have seen our carbon-fibre pumps. In turn, the K60H will be marketed specifically at these key-account customers.”
Certainly it is the region’s mega projects that will be more compelled to adopt CIFA’s Carbotech models notably Riyadh Metro, Jeddah Metro and the 2022 FIFA World Cup.
“These are the types of project that our key customers are undertaking, and they need sophisticated products to match,” Eit adds.
In an increasingly regulatory environment, contractors are certainly looking to future proof their acquisitions and this has been witnessed in the concrete equipment sector.
“I don’t know when exactly weight restrictions are going to be imposed in the Middle East, but it will happen at some point,” warns Eit.
While costing more, a balance of capital expenditure and return has been achieved and companies are noting significant sales in the upper end product range.
Cifa’s Smartronic system detects problems as they arise cutting downtime costs and misdiagnoses. Furthermore, the materials used in the pumps increases longevity significantly, further reducing ongoing costs. While Eit states that at present, customers in the Middle East are “not so sensitive about these factors” as the contractors in markets like Europe, “they are heading in that direction”.
Another company that has noted the evolution of customer requirements in the concrete machinery sector is Mercedes-Benz.
Body builder product manager Daimler Commercial Vehicles, Ognjen Jovanovic, argues that the region’s contractors require “a wide range of products in combination with various bodies from different body manufacturers”.
“It is a paramount requirement for satisfying each customer’s demands, whilst also fulfilling each country’s specific legal requirements,” he continues.
“It needs to be mentioned that there is no uniform legal framework across the Middle East region. Furthermore, the customers’ preferences may also vary among the different markets.”
But the market is certainly robust, according to Johannes Faatz, head of sales and marketing Mercedes-Benz Trucks.
“The demand for concrete mixers, concrete pumps and all other additional solutions used for construction material supply is particularly high in the Middle East region,” he explains.
“Beside the large investment growth that we are all witnessing across the entire region, there is additionally an increased demand with a number of huge infrastructural projects ongoing; such as Expo 2020 in Dubai, World Cup 2022 in Qatar and the metro projects in Saudi Arabia, whereby we are consequently directly supporting customers to meet the higher demand for these type of solutions.”
In a bid to make the most of the opportunity and demand, Faatz asserts that the key for the construction industry currently is to “promote the best potential total cost of ownership (TCO), optimal durability and reliability, and strong active partnerships”.
“Therefore we will continuously work on improving the variety and also quality of services available to our customers in the Middle East as well as the strengthening of our Authorised Distributor network throughout the region,” he adds. But as Jovanovic mentioned, with a wide range of potential customers with unique demands and working in a variety of states with different legislation, product creation is by no means easy.
According to Faatz though, all Mercedes-Benz products are designed to fulfil each and every customer’s needs across all application segments and “most importantly, all regions across the world”.
“The customer in this regard is the operator of our vehicles and therefore also our most important asset and motivation to supply the best in class solutions,” he asserts.
“In order to optimise this, the body manufacturers supplying the superstructures play an important role to
optimise the end solutions that the customers are using for their daily tasks.”
This has led to regular exchanges between body manufacturers and the engineering department in Stuttgart, as well as locally based body builder product management colleagues in regional centres.
“Especially during the development process of new vehicles this regular exchange is vital to ensure continuous market specific improvements, whilst also of course being conducted throughout the complete lifecycle of our trucks in the worldwide markets,” he adds.
“This facilitates the enhancement of our products, durability of our components, reduction of operational costs and improvement of the characteristics to ease the installation of the superstructures.”
As a result there are possibilities to offer individual customer specific solutions, as well as a range of options that are also available ex-factory to all customers.
Jovanovic also explains that due to a focus on stability and robustness in Mercedes-Benz concrete-related vehicles, it “allows that a wide range of concrete mixer drum sizes can be installed on several different variants of our chassis”.
“Also Mercedes-Benz chassis are equipped with all necessary reinforcements ex-factory for the harsher environments experienced in the Middle East region,” he added.
“In the case of concrete pumps we provide our customers with tailor-made solutions, like additional axles for example, which enable the use of pumps with various different length options.”
Of course there is a need to work alongside third parties when it comes to combining expertise to create complete concrete machinery.
Mercedes-Benz cooperates with all body manufacturers operating in the concrete segment, given that the Mercedes-Benz body mounting directives are adhered to.
“This will enable the ideal marriage of chassis and body to ensure that the completely-built-up units can be operated safely and with optimum durability, maintenance intervals and residual value,” he states.
And Faatz explains that the “mutual goal” with the body manufacturers is to offer the best possible solution for the customer, who are “the experts in operating our vehicles on their construction sites”.
“A regular exchange with both partners is an extremely important element of continuous improvement, enhancement and development of our products as well as the development of the superstructures themselves,” he reiterates.
Jovanovic concludes that the close collaboration between Mercedes-Benz and body manufacturers worldwide “is an essential pillar that helps to build a solid foundation for a high quality product”.
“For us, this means to provide the body manufacturers with truck chassis designed for an efficient and simple body mounting process,” he says.
“For special customer needs, we collaborate with our Mercedes-Benz Custom Tailored Trucks (CTT) organisation.”
CTT provides bespoke solutions, such as wheelbase extensions, chassis reinforcements, additional axle configurations and cab modifications, to name a few.
“The advantages for our customers are that all these modifications are also covered by the Mercedes-Benz worldwide warranty with full availability of spare parts via our local Mercedes-Benz Authorised Distributors,” he adds.
It is clear that as construction projects gain pace in the region, and as new legislation is continually introduced, all parties involved in the concrete equipment sector need to work together to create products and solutions that benefit all involved.
Whether that be the continued evolution of the materials used, the design process or the implementation of new technology and systems, it is clear there are companies already leading the way.
