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HOW TO FINANCE MACHINERY FLEET MANAGEMENT PMV LIVE PRODUCT GUIDE KEY DATES FOR ALL THE 2012 PMV EXPOS


A world leader in lifting solutions A world leader world The Manitowoc family ofA cranes is hard at leader work all over the world, meeting the in lifting solutions construction industry’s needs for tough, reliable, high-capacity cranes. A world leader in lifting solutions A world leader No matter what size the job, one of our brands — Grove, Manitowoc, National Crane in lifting solutions The Manitowoc of cranes is hard at work all over the world, meeting the infamily lifting solutions

and Potain — has the crane you’re looking for. And with Manitowoc Finance and construction industry’s needs forThe tough, reliable, family high-capacity cranes. of cranes is hard Manitowoc Crane Care, we’veManitowoc got you covered long after the sale.at work all over the world, m construction industry’s needs for tough, reliable, high-capacity crane Thefamily Manitowoc family ofiscranes hard at work over the world, meeting the No matter what size theofjob, one ofhard ouris at brands — National The Manitowoc cranes work allallGrove, over theManitowoc, world, meeting the Crane construction industry’s needs for tough, reliable, high-capacity cranes. and Potain —industry’s has the crane looking for. Manitowoc Finance and construction needsyou’re for No tough, reliable, high-capacity cranes. matter whatAnd sizewith the job, one of our brands — Grove, Manitowo No matter whatwe’ve size thegot job,you one of our brands — Grove, Manitowoc, National Crane Manitowoc Crane Care, covered long after the sale. and Potain — has the crane you’re looking for. And with Manitowoc andsize Potain —job, has the crane looking for. with Manitowoc Finance and No matter what the one ofyou’re our brands —And Grove, Manitowoc, National Crane Manitowoc Crane Care, we’ve Manitowoc Crane Care, we’ve got you covered long after the sale. got you covered long after the sale. and Potain — has the crane you’re looking for. And with Manitowoc Finance and Manitowoc Crane Care, we’ve got you covered long after the sale.

www.manitowoc.com


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Driving force It’s official; the construction industry is recovering. With continued growth across three major markets, Q2 2011 saw projects worth US$ 20.5 billion awarded across numerous sectors. Strength has been particularly evident in Saudi Arabia, Qatar and the UAE, which each take a 47%, 21% and 24% respective slice of the $452 billion industry. The growth is buoyed by infrastructure megaprojects in housing, transport, power generation and sports stadiums. The good news doesn’t end there; with the announcement of tenders for Saudi Arabia’s 1000 metre tall Kingdom Tower, the Middle East is

officially back on the map. Today as recovery strengthens, demand for materials is already beginning to outstrip supply and as a result PMV sales and rentals are expected to see a surge in demand this decade. The Big Project Guide to PMV is the desk-top round up of this integral part of the industry. With tips on successfully financing PMV requirements, to the A-Z of KSA, how to avoid counterfeit components and a quick-fire round up of the major innovations to be demonstrated at PMV Live 2011, The Big Project Guide to PMV provides all things essential from and for today’s PMV industry.

CONTENTS Industry News

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On the increase

A round up of the latest and biggest contracts

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Comments

Jean-Pierre Zaffiro, Manitowoc

Trendsetter

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KSA

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PMV Live

The numbers behind the market that drives the region’s construction industry

A guide to the show highlights

11 The big money

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financing PMV

Key dates for worldwide PMV expos throughout H1 2012

Diary

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INDUSTRY NEWS

On the increase Financial highlights recorded by PMV giants worldwide

Terex AWP doubles profits Terex aerial work platform (AWP) division has reported operating profits doubled to top US $27m in Q3 2011, due to “steady markets” in the Middle East. Commenting the figures suggested a “”hopeful” outlook for 2012, the company posted a 58.9% increase in sales. The

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construction division – suppliers of excavators, skid steers, backhoe loaders and dump trucks – saw sales rise 38.9%, to reach to $395.4 million, whila also narrowing loss margins by $1.3m. “We continue to see end-market demand recover in our Aerial Work Platforms (AWP) business. We are optimistic about the rest of the


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year and 2012 for AWP as we are having earlier than normal conversations with customers who have indicated a willingness and need to purchase more equipment,” said Ron DeFeo, Terex’s chairman and chief executive officer. Other markets contributing to the figures included Europe and Russia.

Demand for construction equipment in China falls Komatsu says government spending cuts in China have “overshadowed” its 15% YOY sales increase for H1 2011. While the Japanese equipment manufacturer celebrated sales of US $13b and an increase in

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INDUSTRY NEWS

net income to $1.2b, it was said the success was capped by a decline in China’s civil engineering sector, which “was adversely affected by the government’s credit squeeze measure”. Announcing the results last month, Komatsu said it now expects sales for the financial year ending March 2012, to peak at $26b – $2b less than originally planned. Despite the forecast, full year net income is now predicted to rise to $2.6b from $2.5b.

37% YOY profit rise for Atlas CopCo A year on year rise in profits of 37% has been announced by international equipment manufacturer Atlas CopCo, for the period Q1-Q3 2011, despite the company reporting weaker short-term demand. It takes the total figure for the period to €1 billion, with sales also increasing to €6.5 billion – or a 17% increase on the same period in 2010. The results are attributed to massive restructure that has taken place within the company over the last 12 months. The restructure follows a number of recent acquisitions including German adhesives manufacturer SCA Schucker. “Considering the softening we have seen in the construction industry and the generally uncertain market situation, we have reviewed our contingency plans,” commented president and CEO Ronnie Leten. “We are confident that our operations are fit and well prepared, however the market develops. We will continuously review potential acquisitions to add new technologies, but it is even more

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important that we remain focused on product development and innovation,” he added.

Volvo Trucks new game for smartphones Volvo Trucks is to launch a new smartphone game to mark the 25th anniversary of flagship truck. Compatible with Iphone 4/4S or Ipad 2, or Android 2.3 phones or tablets with 480x800 screen resolution or higher, it is the second time Volvo has publicised its vehicles with digital marketing campaigns. In 2009, strongesttruck.com was built to mark the launch of the Volvo FH16 700. The game has been played 15 million times to date. “To my knowledge, we are the only truck company in the world to launch such advanced games. This is a fun and exciting way to publicise our products, and helps us reach a much wider public than we normally do,” said digital marketing strategist, Niclas Hermansson. The object of the game is to quickly eliminate obstacles that appear in front of the truck by means of various finger movements: tapping, linear dragging or circular dragging. If you’re quick and choose the right gestures, you’ll win enough points to proceed to the next level. “It’s easy to learn but hard to master. If you’re good, you can get onto the high-score lists and boast about your results on Facebook or Twitter. There is also a contest at our community, Worldtrucker, where weekly prizes are awarded,” added Hermansson. The game can be downloaded via Volvo Trucks’ game site - http://loadingramp.volvotrucks.com/ - or directly from App store or Android market.


TRENDSETTER

KSA The Middle East is widely regarded as a world leader in infrastructure and construction spending. While PMV giants report strong sales across all markets, one country leads the way

63.3 385

projected value of 2012 construction projects

3.1

invested for projects across all sectors through 2014 as part of the Ninth Five-Year Development Plan.

100 140.3 08

of Saudi Arabia’s GDP generated by the industrial sector

population increase expected between 2012 and 2023

invested for projects across all sectors through 2014 as part of the Ninth Five-Year Development Plan.


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The major construction projects driving PMV In 2010 some 285 civil construction projects were underway in 2010, worth over $260 billion. These included:

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forecast GDP by 2013

• $27 billion in contracts issued by the government for construction and education related projects. • $1.5 billion for residential real estate projects, • $1 billion for roads • $533 million for mix-use real estate projects

58.8

of Saudi Arabia’s GDP generated by the industrial sector

4.13

average annual real growth forecast from 2010-2014

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in infrastructure projects are underway

• $533 million for urban development, according to a National Commercial Bank report.

The multi-billion dollar mega-cities Six new economic cities are being developed throughout the kingdom, to help diversify the economy. These include: • $93 billion King Abdullah Economic City • $53 billion Prince Abdulaziz Bin Mousaed Economic City • $30 billion Jizan Economic City

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The big money How to successfully finance PMV requirements Quality, and genuine, equipment does not come cheap and financing PMV requirements in the face of expensive credit and reduced liquidity is a tough balance to strike. Anything from a simple dozer to a high rise crane can run into thousands of dollars. Financing is part of any businesses operations but while there are specialist machinery financing companies, buying credit from them to buy machinery outright is not always the best option. When assessing actual needs, the first thing to establish is value for money. Trade publications are a reliable starting point and strongly advise to only buy what will be needed every day. Reliability and safety are far more important. In considering costs, look at the whole life cycle costs of PMV financing; strive for the lower rate but there are other considerations to make. Penalty clauses, payment breaks and the actual running costs and end of use market value. Many companies are advised to opt for buy back or valuation clauses. Leasing your equipment can be a great option for your company when you need to expand or upgrade your equipment. While financing the lease can be done through the manufacturer or retailer, an equipment financing company many times is the best way to go. Not only are they more

experienced in the process and make it easier, they have more flexibility when it comes to the terms. Four things you should ask when leasing equipment: - Are there any other costs in addition to the lease? - What happens at the end of the lease? - Can I upgrade loaned equipment? - What is the procedure for returning equipment?

Effective fleet management Be very good at preventing machines from breaking. That means you must have the right machine for the job, work it and operate it within its capabilities and have a very, very good preventive maintenance programme. Know your costs – you must keep good cost and production records to help in the tendering process and to help you through very difficult fleet repair, rebuild and replace decisions. Conserve the capital you have invested in the fleet. It is advisable to make good financial investments, keep the fleet working hard and extend equipment life to the maximum possible economic extent.

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100% certified Jean-Pierre Zaffiro, global product director for tower cranes at Manitowoc, explains the dangers posed by counterfeit components. The crane industry is certainly not the first to experience the commercial damages that counterfeiting brings to business, but in our case the consequences can get no more serious. When you are talking about the failure of a crane on a live job site caused by counterfeit parts, then you are talking about the possible loss of human life. The issue is not new. Back in 2007 our company identified Asian companies building counterfeit components such as mast or jib sections. They were passed off as Potain components and are copied to mirror as closely as possible an original Potain part, including designation and identification plate. What is most disturbing is that the counterfeit parts were not sold via the black market – on the contrary, they were exhibited at a major trade show. The issue of counterfeits is very serious and is one where we believe the industry needs to raise its awareness. Our engineers have looked at a number of these machines using counterfeit components and continue to watch the market closely. We have grave concerns about the manufacturing quality of a number of the counterfeits we have seen. Many counterfeits use substandard steel which is more liable to material failure and is also subject to jerking movements, as it is not as ductile as higher quality steel. The welding too is questionable, even though on the surface it may appear to be good. There are potentially very serious consequences for using a part that is not approved by the

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manufacturer and not fit for task. And with these counterfeits there is an important risk that they are not fit for task. Although the issue of counterfeits originated in Asia, our information is that manufacturers of these parts are now targeting crane users in the Middle East and elsewhere in this region. We recommend that customers buy their cranes from an approved source. And if buying second hand, customers should insist on OEMapproved parts. As a company we have created our own internal task force to address this issue, where we continue to raise awareness of the potential dangers with customers. We are also actively leading initiatives in industry trade associations to keep the issue in the spotlight. Ultimately with this counterfeit issue, the safety of people is at stake and safety is a primary value of Manitowoc – for our own people, for our customers and for everyone involved in the lifting industry. We are determined to take any action that can help our customers and crane users protect themselves and can lead to the shutdown of the counterfeit operations. Our message to those who would consider using a counterfeit part is simple. The cost savings on offer, in relative terms, will be small. The price of an accident will be much more expensive and, in the worst case, it may cost someone their life.


On Show A guide to the highlights at PMV Live

COMPANY: Orientals Specialist Lifting / GGR Group MODEL: UNIC URW295 mini crane COMPANY: Manitowoc MODEL: Igo 50 The Igo 50 is a famous self erecting tower crane by Manitowoc under the famous brand name Potain. The crane offers a compact design with a small rear slewing radius that ensures manoeuvrability on even the most congested job sites. Igo 50 is very efficient and reliable on the Job Site; it has a simple and quick set up. While onsite, the crane works quietly, reducing interruption to the surrounding area. Optional fixed height cab and access ladder allows operator to view the job site from a more advantageous position.

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Orientals Specialist Lifting /GGR Group will be demonstrating the UNIC URW295 mini crane’s ability to operate in restricted working spaces, being compact enough to fit through a standard doorway and yet still lift up to 2900Kg. UNIC mini cranes have the flexibility and capability to assist in a huge variety of lifting situations, from glass installation, steel erection, to machinery installations. Alongside will be the Galizia G20 Pick and carry crane – ideal for carrying loads of up to 2000Kg. Also on show will be Woods-Powrgrip and Kappel vacuum lifters, the easiest and safest way to handle glass in the factory and on site, along with the Geko+MRT4, a glazing robot designed to reduce the manual handling involved in floor level glazing situations.

COMPANY: OSV Technologiya MODEL: New to the Middle East market, OSV Technologiya will demonstrate its Panel’s Technology as a solution, equipment, and raw material. The cladding panels are designed for three applications: decoration, heat insulation and sound insulation.


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COMPANY: MAN MODEL: Trucks and buses for the construction industry Leading manufacturer of transport vehicles MAN Truck & Bus Middle East will showcase its latest product offering at the Middle East’s largest building and construction show, the Big 5 Expo, due to take place at Dubai International Exhibition and Convention Centre from 21-24 November. The company will participate as part of the PMV Middle East stand, showcasing its latest series of heavy duty construction trucks.

COMPANY: NFT Cranes MODEL: POTAIN tower cranes and hoists As sole agents of Manitowoc’s POTAIN Tower Cranes and GJJ/ ORBIT and PEGA Hoists in the Middle East and GCC Region, NFT deals in all kinds of POTAIN tower cranes and hoists. The company covers sales, rental, services and technical support and has 950 tower cranes, used and new, and more than 200 hoists and genuine spare parts available for export. Projects supplied include Princess Nora University, Saudi Arabia.

COMPANY: XCMG MODEL: All terrain crane The QAY25 All terrain crane adopts four-section box type powered telescoping, with allround hexagonal boom profile, made of high-tensile structural steel, with longitudinal reinforcement for improving partial stability of boom lower plate, better lateral rigidity for boom. The vehicle also has advanced hydro-pneumatic suspension and off-road tyres, suitable for variable complicated ground conditions. The vehicle can travel on various rough road, operate 360full circle, and also on mid-extended outrigger or on tires, and travel with a suspended load.

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PMV Worldwide Specialist PMV shows worldwide for H1 2012 INTEC

Euroguss

MSV-International Engineering Fair

Jan 4-9

Jan 17-19

Feb 10-14

Venue: CODISSIA Trade Fair Complex,

Venue: Nuremberg Exhibition Centre,

Venue: Brno Exhibition Centre, Brno,

Coimbatore, Tamil Nadu, India

Nuremberg, Bayern, Germany

Jihomoravsky Kraj, Czech Republic

Tekno Tube Arabia

Spring Farm Machinery Show

Vedlikehold

Jan 7-10

Millstreet

Feb 14-15

Venue: Dubai International

Jan 17-19

Venue: Exporama Senteret, Oslo,

Convention & Exhibition Centre,

Venue: Green GLens, Cork, Ireland

Oslo, Norway

Dubai, UAE Win World Part I Machinery

MACHINEX Arabia

Steel Fab

Feb 2-5

Feb 19-22

Jan 9-12

Venue: Tuyap Fair Convention &

Venue: Jeddah Centre for Forums &

Venue: Sharjah Expo Centre,

Congress Center, Istanbul, Turkey

Events, Jeddah, Saudi Arabia

Sharjah, UAE Spokane Ag Expo

Metav

Engineering Week Pakistan

Feb 7-9

Feb 28- March 3

Jan 12-15

Venue: Spokane Convention Center,

Venue: Dusseldorf Exhibition Centre,

Venue: Karachi Expo Center, Karachi,

Spokane, Washington, United States

Dusseldorf, Nordrhein-Westfalen,

Sindh, Pakistan

Of America

Germany

The Euro Trophex Show

International Power Transmission Exp

USETEC Cologne

Jan 15-16

Feb 9-11

March 5-7

Venue: Amsterdam Rai Convention

Venue: Bombay Exhibition Centre(BEC)

Venue: Cologne Exhibition Centre,

Center, Amsterdam, The Netherlands

Mumbai, Maharashtra, India

Cologne, Nordrhein-Westfalen,

The Trophex Show

Indian Machine Tools And

Jan 16-17

Automation Expo - Gurgaon

SIMODEC

Venue: National Exhibition

Feb 10-12

March 6-9

Centre(NEC), Birmingham, England,

Venue: Gurgaon Leisure Valley

Venue: Foire de la haute Savoie Mont-

United Kingdom

Ground, Gurgaon, Haryana, India

Blanc, La Roche Sur Foron, France

Germany

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TECMA

Quality Expo South

Plant & Asset Management

March 7-9

March 14-15

April 17-19

Venue: Expo Bancomer Santa Fe,

Venue: Fort Worth Convention

Venue: National Exhibition

Mexico

Center (FWCC), Fort Worth, Texas,

Centre(NEC), Birmingham, England,

United States Of America

United Kingdom

Mould Exhibition

International Die-cutting (Shanghai)

TechnoDrive

March 8-10

Expo

April 17-20

Venue: Suzhou International

March 14-16

Venue: Exhibition Center

Expo Center, Suzhou,

Venue: Intex Shanghai, Shanghai, China

KyivExpoPlaza, Kyiv,

Suzhou International Machine &

Ukraine

Anhui, China GrindTec Augsburg China International Construction

March 14-17

Simtos

Machinery Exhibition

Venue: Messe Augsburg, Augsburg,

April 17-22

March 9-11

Bayern, Germany

Venue: Kintex - Korea International Exhibition Center,

Venue: China Import & Export Fair Pazhou Complex, Guangzhou,

INTERtunnel Italy

Guangdong, China

March 27-29

China International Municipal

Goyang, Korea

Venue: Lingotto Fiere, Turin,

TechnoMebel

Piemonte, Italy

April 24-28 Venue: Inter Expo & Congress

Equipment Expo

Center, Sofia, Bulgaria

March 9-11

Northwest Facilities Expo

Venue: China Import & Export

March 28-29

Fair Pazhou Complex, Guangzhou,

Venue: Oregon Convention Center

KONMAK

Guangdong, China

(OCC), Portland, Oregon, United

April 26-29

States Of America

Venue: Tuyap Konya International Fair Center, Konya, Turkey

China International Road And Bridge Maintenance Materials, Technology

Machine to Machine

And Equipment Exhibition

April 3-5

Engineering Machinery &

March 9-11

Venue: Paris Expo Porte de Versailles,

Electronics Exhibition New Zealand

Venue: China Import & Export

Paris, Ile-De-France, France

May 1-3 Venue: ASB Showgrounds, Auckland,

Fair Pazhou Complex, Guangzhou, Guangdong, China

Erbil Machinex, International

New Zealand

Machine, Machinery Equipments & INDEXPO-Nagpur

Tools Exhibition

India Machine Tools Show

March 12-14

April 5-8

May 5-8

Venue: Kasturchand Park Nagpur,

Venue: Erbil International Fair

Venue: Pragati Maidan, New Delhi,

Maharashtra, India

Ground, Erbil, Iraq

Delhi, India

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