Aerial work platforms manufacturer JLG has benefitted from major rental companies diversifying their business away from Dubai after the crash in 2009, says Ewan MacAngus, JLG’s market development director in the Middle East.
AWP is one product segments where ownership tends to be concentrated in the hands of rental companies, with other examples including mobile cranes, and the majority of JLG’s business is through rental companies.
“When the crash came, the major rental companies in Dubai became more creative, and moved to the surrounding countries – Qatar, Saudi, and Oman. JLG benefited from this, with rental companies having expanded their opportunities,” says MacAngus.
The rental and distribution profile of their machines in the Middle East is very different from Europe, concentrated on larger machines, meaning that most of the uses are for construction. Larger-size products are also used for construction of refineries in Saudi and Kuwait.
Looking at the region on a high level, MacAngus believes that 2014 will be the year that a number of markets hit their stride, including Qatar, Kuwait and the UAE, with the exception of Saudi Arabia, which is already on its way.
Currently, activity in Abu Dhabi is at a strong level, while “Dubai is back with a bit of a punch,” he says.
With many rental companies international, products can travel across borders, which MacAngus says they can easily support, with long-standing distribution partners.
“You have to work openly and honestly with partners, and that includes cross-border sales.”
In Saudi Arabia, JLG’s boom lifts, scissor lifts, and vertical lifts are sold by Zahid Tractor, a long-standing partnership, and one of the reasons the brand has been so successful in that market.
Nevertheless, the bottom line is that the strongest factor for JLG’s success in the Middle East is the product, MacAngus argues.
“I think can say we’re the preferred brand in the region – due to the in-built quality, engineering, residual value, and ability to service and maintain the product.”
Â
