Wheel loaders are the unchallenged and near irreplaceable workhorses of the modern earth-moving operation. Their combination of manoeuvrability, and high ground clearance and payload are hard to match, except in highly specialist applications where bulldozers or excavators have an edge.
These three product categories combined account for some 40% of all equipment sales in countries like Saudi Arabia, but it is the wheel loader that dominates the earthmoving field.
No product, however, is immune to the economic situation, as Jonas Gardetun, VP for Volvo CE and SDLG in the Middle East, notes: “Business in the Middle East is a little slower this year due to the oil prices but Volvo CE and SDLG are still performing well on the market.”
He continues: “Premium Volvo machines are the lynchpin of mega projects across the region, and, while the vast majority of these projects are still continuing, low oil prices have led to a small amount of hesitation by some contractors to invest in their fleets.
“Nevertheless, these projects of national — or in some cases international — significance still demand the best productivity, efficiency and uptime on the market, which the Volvo brand is ideally suited to provide.”
He adds: “SDLG is less affected by oil prices. SDLG is performing well in the rental segment and as a relatively younger brand, it is often used on smaller infrastructure projects.”
Steve Ryder, field marketing manager for Case Construction Equipment in the Middle East, comments: “Today’s markets are cautious. We are seeing slowdowns in the wheel loader markets versus previous years, with customers concerned about making major investments in these uncertain times. Qatar is one of the few markets not in decline.”
In agreement is Woohyun Kim, MEA branch manager for Doosan Infracore, who emphasises that Saudi Arabia is the worst hit, while affirming that Qatar’s market is sustaining demand — which in turn, is holding up the market in the UAE, where the majority of aggregates for projects in Qatar comes from.
He notes: “Despite sudden slow demand, Qatar still has the potential to sustain a level of demand for large tonnage of machines, and with it the demand for large machines in UAE quarries, which are one of key source of exporting material of construction to Qatar.”
TAILORED PRODUCT
Last year Volvo launched its G-Series loaders with Z-bar linkage for Africa and the Middle East, with the first units shipping out in Q3.
Gardetun comments: “Typically our Volvo wheel loaders have a TP linkage, which is ideal if customers want to use a wide variety of attachments on the jobsite. However, many customers in the Middle East use their wheel loader for bucket handling only, so we had t0 provide a solution for these customers too.”
Volvo’s L60Gz, L90G and L120Gz models now combine increased hydraulic working pressure with an optimised Volvo-designed Z-bar linkage for even higher breakout forces and therefore better production when working with bucket handling applications only.
Gardetun adds: “While we are increasing our SDLG product line to include excavators, backhoe loaders and motor graders, wheel loaders are still our most popular SDLG line, as well as where it all began for us with SDLG.”
Ryder explains that Case is focused on providing the right solutions for its customers across the Middle East in the different market segments, and has wheel loaders for specific tasks, from contracting through to waste handling, that are the right machines for the job.
For the Middle East, Case machinery is also adapted to meet the specific challenges of the climate, with cooling packages adapted to the high ambient temperature and air filtration to combat the dust conditions.
Volvo CE tackles this latter challenge with an oil bath air filtration pre-cleaner that helps increase air filter change intervals for greater machine uptime and lower maintenance costs.
Doosan’s main adaptation has been in answer to its customers’ needs for a stronger machine Kim notes: “We have supplied heavy-duty options as standard for the last few years.”
Hitachi is renewing its offering in the Middle East this year with the staggered launch of its ZW5A Series, designed to be more productive, fuel efficient and quick and easy to maintain.
Piet van Bakergem, general manager of Hitachi Construction Machinery Middle East, comments: “This year we are glad to introduce the ZW-5A wheel loaders into the MENA region. The numbers are growing for us, because we have not been in this market for as long as our competitors — so business is good.”
The OEM is focusing on selling its wheel loaders to existing Hitachi customers and, “little-by-little attracting other customers to take advantage of the high productivity and low fuel consumption of the machines.”
The first machine in the series, the ZW220-5A was introduced into the region late last year.
The ZW220-5A achieves a fuel saving of 10% compared with the predecessor models, according to Bakergem, who notes that ‘strategically positioned sensors detect movements throughout the machine and adjust engine speed accordingly to eliminate energy losses’.
Hitachi’s ‘Active Engine Control System’ is meanwhile able to choose optimal traction power and breakout force for smooth digging while improving fuel efficiency, utilising data collected from the sensors on the machine.
On the subject of software, Gardetun notes: “We are seeing greater use of our CareTrack telematics system on our Volvo wheel loaders in the Middle East. Customers are increasingly seeking our advice about using data to help improve the profitability of their operations.”
In the present climate of budget constraint, Ryder adds that Case, through its sister company, CNH Industrial Capital, offers flexible financing, alongside extended warranties, service plans and full R&M packages. He notes: “Today’s main challenge in the market is the confidence of customers to buy. Ultimately, this is a product of the current oil prices.”
Kim concurs: “From my understanding and experience, customers in GCC are focused on price and benefit, but since the oil price became enough of an issue to hit cash flow, the customers have become more cautious and selective when choosing brands and models in terms of financing and service capability.
Kim also highlights the tension across the region between countries, but notes that once either this or the oil price resolve demand will start returning to where it was at its peak.
He adds: “In this regard, we’re closely working together with our dealership to focus these main factors to satisfy our customers in both way of short and long term approach.”
Glass half full, Bakergem notes: “Since we are late comers in the market compared to the competition, we can only improve our market share — even if the demand is decreasing.”
From Volvo’s perspective, Gardetun says: “I am optimistic about the oil prices normalising somewhat in the future, but that is out of our control. As far as Volvo and SDLG are concerned, I don’t see any internal obstacles to achieving growth in the Middle East — we have a strong product range and dealer network and are constantly working to optimise both.”
As with Hitachi, he comments that SDLG as a wheel loader brand is relatively new to the region and has been “growing phenomenally” over the past few years, and that he expects to see this trend to continue based on SDLG’s strong proposition as a reliable value brand.
Kim admits that competition from Chinese product is still a factor in the wheel loader segment, and that Doosan has noticed this even among its own customers, but adds that concerns over quality and durability will push the adoption of other brands in the near future.
Overall, the demand for wheel loaders is still there, as is optimism for the future.
