The suggestion has come from certain quarters that the compact excavator could be the next skid-steer — the tool that best combines many applications in one machine — but how is it faring in the region?
Manhal Al-Chalabi, MENA manager for Wacker Neuson, which specialises in compact machines, is well placed to offer a perspective.
He notes that demand for compact excavators in regional markets is indeed growing, but with the caveat that it is “gradual and market specific”, and the reason is that the region is still developing primary infrastructure in wide open spaces, as opposed to confined urban working spaces.
He adds that there also no government regulations, like in Europe and USA, putting pressure on contractors to downsize their machinery, while the lack of awareness of the advantages of compact excavators is currently prejudicing end users against change.
Gaby Rhayem, MENA director for Doosan Infracore, concurs that there is an “increasing demand for compact excavators in the region”, noting: “It is part of a mature construction market, more dedicated to cities and confined urban spaces where big machines cannot work. Many authorities are asking contractors to use mini excavators in small streets that heavy excavators cannot access or where they would risk damaging infrastructure on the way.”
A key challenge for larger equipment is the installation of piping or fibre optics in already built environments, as well as the requirements of landscaping projects with no road access.
Rhayem cites villa swimming pools as a prime example of projects that require compact excavators, while noting that cities are also pushing for the type of green landscaping that require the gentle touch of smaller machines.
Steve Ryder, Middle East manager for JCB, notes: “We are seeing growth in the market for compact excavators across the region.”
Ryder highlights the need for maintainance and repair of ageing urban infrastructure as an inevitable market for compact excavators.
He adds: “On congested roads, full road closure or closure of multiple lanes is problematic — so the more compact the solution, the better. Confined urban spaces create the need for a compact solution. We also see mini excavators working in the landscaping and irrigation area where the compact machine size, low operating costs and easy transportation are ideal for the customer.”
Clearly, the manufacturers of compact excavators are in strong agreement over the drivers of the segment and potential for the future as the region’s city infrastructure matures and demands more delicate and unobtrusive construction operations.
Taking the broad view, Dave Wood, product application specialist at Caterpillar, adds: “The use of compact excavators continues to grow worldwide as urban job sites become more restricted.
“In addition, the excavating performance of mini excavators has improved considerably over the years and operators can now be more productive than they were a few years ago. In the Middle East, we see more mini–excavators as customers gain more knowledge on their capabilities and their ease of use.”
The benefits of compact or mini–excavators’ ease of use only grows in markets where there is “a lack of skilled operators” — which, despite the mindset of many Middle East end users of excavators that that bigger is better, is an issue that could favour the segment in the future.
Wood adds: “Time-constrained projects such as laying cables and services, as well as highway maintenance, all have an impact on the increased acceptance of mini–excavators.”
HEALTHY COMPETITION
Pressed on the subject of market conflict between compact excavators and other equipment, Al-Chalabi admits: “Yes… the backhoe loaders. Customer tend to use more backhoes as they have been available in the market for years and customers manage to get around the digging work because of the availability of space and the lack of regulations from government.”
He notes that product differentiation is “a big challenge” as customers are currently still only concerned about the cost of purchase.
However, he explains that cost of ownership will become very important as the region moves towards deregulation of fuel prices, noting: “It will become important to have a fuel–efficient machine — something that is not appreciated at this moment in the region.”
Doosan’s Rhayem notes that compact excavators “can cross with backhoe loader applications where the backhoe loader is being applied to digging”, but that with loaders, there is no clash; rather, it is complementary.
Caterpillar’s Wood confirms: “The compact excavator compliments the use of equipment like compact loaders, skid steers and telescopic handlers. In many global markets, compact excavators are used together with compact loaders or small articulated dump trucks.”
Wood notes that having a compact loader working alongside a compact excavator for bulk material handling while the excavator works on the main task can be very productive.
All Cat mini–excavators are meanwhile also sold with a dozer blade which includes a float function for fast and easy ground levelling.
Rhayem opines: “This business doesn’t require any additional set up or investment on the top of what the dealers are already doing, but there needs to be more effort to explain the concept and the applications.”
Wacker Neuson’s Al-Chalabi, however, points out the need from the supplier side to ensure the local availability of machines and parts, particularly given their applications.
“It’s necessary to have a very good quality and reliable machine to reduce the risk associated with parts availability,” he says.
“This is a very critical aspect for the product and brand success in this region.”
This feeds back into the earlier comment by Cat’s Wood, who noted that many of the potential projects for compact excavators are time-constrained — meaning that a supplier who cannot provide equipment on demand might end up missing or failing a customer.
Looking forward, Al-Chalabi, adds: “We anticipate good potential for future demand once the cities have fully developed and the market has matured. Currently demand is more specific to certain projects where they have to work in very tight spaces.”
Recently, Wacker’s compact excavators were notably employed on the Doha Metro Project.
Doosan’s Rhayem adds that while the number may be small at present, compact excavators represent an important growth segment within the compact market, due to the different type of buckets, breakers and specific attachments for different applications.
As an example application for Doosan machines, Bobcat compact excavators are likewise being used by a company called Al Ryum in Qatar — which is working on housing projects and runs one of the largest landscaping operations in the Middle East.
Caterpillar’s Wood concludes: “The compact excavator is a versatile tool. It is traditionally thought of for use in areas where other machinery might not be able to gain access — and this is where these machines excel.”
However, he notes, in addition to this, the ease of transport and the ability to handle different work tools other than just buckets, make them a good choice for working on any jobs away from built-up areas, including irrigation projects and land maintenance.
Rhayem attests: “It is a market that will grow significantly in the coming years.”
