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Telescopic vision: the market and industry trends in telehandlers

PMV Middle East takes a look at the market for the telehandler segment in the Middle East, the trends influencing the use of these materials handlers on projects, and their ongoing product development

Telescopic vision: the market and industry trends in telehandlers
Telescopic vision: the market and industry trends in telehandlers

Telescopic handlers or telehandlers are the increasingly omnipresent material handlers of the jobsite, serving at the leisure of contractor wherever raw materials need to be delivered, high or low, away from a site’s main access routes and on rough terrain that might be inaccessible to on-road delivery vehicles.

Ultimately an evolution of the forklift — initially for agricultural applications, where farmers needed additional horizontal reach to stack hay bales and other farming suppliers — today the telehandler can perform a range of tasks with different attachments. This includes equipping buckets, sweepers, augers, and even providing powered access or acting as secondary cranes on site.

Looking at the market for the machines in the Middle East, Matthew Kelly, global product specialist for telehandlers at Caterpillar, notes: “The telehandler business is one of the segments seeing consistent and significant growth year-on-year. With ongoing urbanisation and large development projects in the region, the versatility of telehandlers is invaluable to construction and rental fleets, particularly on multi-story projects.

“Whether they’re lifting and placing, or assisting site maintenance or performing other roles, telehandlers are an integral part of the construction industry in the Middle East.”

In agreement is Franco Invernizzi, senior business director for the Africa and Middle East at CNH Industrial Construction Equipment, who says: “The telehandler market is growing, and if the current market trends continue, we expect to see a 24% increase in the size of the total market globally.”

With respect to the compact segment, however, Gaby Rhayem, regional director for the Middle East and Africa at Doosan Bobcat, comments: “The business for telehandlers is experiencing same drop like the other machines. We’re talking about a drop of 35% compared to last year. The whole compact market is dropping, but sales of telehandlers seems to be falling off more than others.”

With respect to this segment, Rhayem specifically blames the drop in oil prices in late 2016, noting: “The oil price is impacting a lot, and our telehandler business is connected to industrial or construction application, such as housing projects, and the rental segment — and all of those market segments are dropping off. I also don’t see any immediate signs of recovery — though it could come in 2018 if we see more stability in the region.”

CNHI’s Invernizzi equally sees no immediate signs of recovery in the region, and concurs: “The oil dependant countries have been hardest hit, driving customers to look for equivalent machines to suite the new budgets. We are anticipating the market to remain flat until the end of the year.”

However, Caterpillar’s Kelly is optimistic: “The fluctuations in the oil prices has impacted the entire building and construction industry, so a decline in oil and gas prices presents a challenge to all manufacturers and dealers. But in the Middle East our sales have remained consistent, so we are looking forward to seeing the additional positive impact on sales as oil and gas prices recover.”

NUTS AND BOLTS

Looking beyond the top line market figures to the opportunities in the segment, Kelly notes:    “In Middle Eastern regions the rental and construction sectors are still the most significant areas for our telehandler business.”

He details: “The TH414C GC and TH417C GC models have been staples since their introduction in 2013, and this year, we launched our D Series, ranging from 5.5m to 17m in reach, and from 2,500kg to 4,000kg in capacity.

“The TH314D and TH417D, with 13.85m and 17m lift heights, and 3,600kg and 4,000kg lift capacities, respectively, will be instantly recognisable by operators of the C series.

“In addition, we have introduced a highly mobile 10m telehandler that is ideal for a range of agricultural and construction applications.

For CNHI, Invernizzi notes: “There are many large villa projects on the go in the GCC, and this is driving the telehandler market. We have also see requirements in the utilities and recycling industries.

“We offer two telehandlers: the TX140-45, which has a maximum reach of 14m, and the TX170-45 with a maximum reach of 17m — and both of which are capable of lifting 4.5t. The customers are looking for the best reach, so the TX170-45 is seeing the most success.”

Rhayem says: “I see the most opportunity in housing projects, in agriculture and the construction-related rental segment. High-reach products are the most popular, as high capacity, high level models capable of reaching 18m, for example, are well suited for housing.”

On the compact side, Bobcat recently launched an 11-strong range of rigid-frame telehandlers, with capacities ranging from 2.6t to 4.1t and lift heights from 6m to 8m.

The models are powered by Tier III Perkins engines suitable for markets with unregulated emission, and have automatic parking brakes, and backup alarms and lights as standard.

Another brand with plans to drive the sale of more compact telehandler models is Genie, which launched its redesigned GTH-3007 telehandler with a 3t capacity and vertical reach of 6.89m at Bauma 2016.

Since then, the smaller GTH-2506 has also been launched with the same cab, durable chassis features and four-wheel drive capabilities, but with a more modest 2t capacity and 5.79m vertical reach.

According to Genie, the models are suited to both indoor and outdoor applications in confined spaces in a range of sectors.

CHANGING ROLES

In terms of the trends in the segment, Kelly comments: “Telehandlers are one of the most versatile machines available on the market. Telehandler attachments allow a single machine to be used for a range of tasks, from site maintenance to loading and pick and place duties.

“The market in the Middle East, and globally, is increasingly trending towards the use of telehandlers as ‘workhorse’ machines used in conjunction with a wide range of attachments to increase the value of the machine to owners and operators.

“With different tools comes the ability to complete different applications — only increasing the value of efficient and powerful telehandlers, such as Caterpillar’s machines.”

The growth in the use of attachments can be seen as part of a wider trend to equipment that is versatile, multi-purpose and modular. “When our customers face challenges and we supply solutions, nine times out of 10 the solution is attachment related,” comments Invernizzi, adding: “We have seen an increase in demand for manned platforms.”

While dedicated aerial work platform providers have directed criticism, from a safety perspective, towards the use of telehandlers with man baskets, Rhayem counters: “I disagree. We are selling most of our machines with fixed or oriented man platforms, and today we have safety controls on all the machines to avoid human errors and any incident or accident.”

Invernizzi adds: “Both our machines are fitted with advanced load sensing safety equipment, which monitor the loads in real time. We have also taken considerable care over the safety of our manned platforms, by adding a lock out feature and increasing our stabiliser width. But working at height is always dangerous, so it is always good to pay special attention to safety.”

NICHE APPLICATIONS

Another major manufacturer of telehandlers is JCB, which first pioneered its telehandler concept back in 1977 under the Loadall name, and which has continued to develop the concept to meet the needs of both contractors and rental companies.

The 540-170 Loadall is built for precisely the kind of conditions experienced in the Middle East and is equipped by a 74kW (100hp) JCB EcoMAX engine, and fully mechanical and hydraulic systems.

JCB claims its Loadalls can cope with the demands of any site, epitomised by the company’s maxim of, ‘First machine on site, last machine off site’. The brand’s reputation for toughness is also reflected in the high residual value of the machines in the market.

Away from the region, JCB’s global strength in the segment was reflected in its signing of a $142m deal at the end of 2016 to supply the US Army with a fleet of 1,600 rough-terrain telehandlers — in the second largest order by value in the British company’s 71-year history.

Arjun Mirdha, the president and CEO of JCB North America at that time, noted: “Over the past three decades, JCB has supplied more than 4,000 machines to armed forces in 57 countries, and we have acquired a deep understanding of how the military uses equipment and the unique features they need.”

The specialised 527-58M light-capability rough-terrain telehandlers will be produced based on JCB’s commercial units, and equip the 63kW (84hp) JCB DieselMax engine.

The deal is also a worthy demonstration of the specialist knowledge and engineering ability that lies behind JCB’s Loadall range.

Back in the Middle East, Egypt’s Petrojet is also using two Genie GTH-4018 telehandlers supplied by local Genie distributor Modern Builders Merchant, to assist in the building of six twin-tube tunnels (four for cars and two for trains) beneath the Suez Canal as part of the $7.3bn New Suez Canal Project.

The four road tunnels will be built 48m deep, 10.8m wide and 3.19km long, and provide access for an estimated 45,000 cars and trucks per day. The rail tunnels will be built at the same depth over a distance of 6.7km and feature five ventilation shafts.

Once they are completed, the tunnels will link the western and eastern banks of the Suez Canal: from Egypt’s mainland cities of Port Said and Ismailia to the Sinai Peninsula.

A features that contributed to the selection of the GTH-4018 was the unit’s 3.8m turning radius — the narrowest width in its category, and a boon on any busy or confined site.

Overall, the range of these applications serves to highlight what a versatile piece of equipment the telehandler has become, and the great variety of different operations that now call upon the services of such machines.

While the current climate of relatively tight margins for contractors in the Gulf, current market trends could see an ongoing shift “to larger models and bigger capacity”, according to Rhayem — at least in the short-term — the consensus is that telehandlers of all shapes and sizes can look to enjoy a bright future.