Europe remains a challenging environment for crane manufacturers

Europe remains a challenging environment for most manufacturers, and all of them are counting the days until the market returns to growth across the continent. Euan Youdale reports

Apart from hot spots like Turkey, Poland and arguably Germany, much of Europe is in the doldrums. While this is has concentrated the minds of manufacturers in the direction of emerging nations, a healthy European market is still key to long term success for most of them.

At Austria-based articulated loader crane manufacturer Palfinger's 80^th anniversary celebrations this year, Hubert Palfinger echoed these sentiments: "We have experienced many recessions where the company and our dealers were not sure how we would come through, even so, I have never seen anything so extreme as the peaks and troughs of the last few years."

Ortner said Palfinger was working towards a position where one third of its market was in North and South America, one third in the Asia Pacific region and one third in Europe. "This is not just nice to have," he said, "We must have it."

Chinese manufacturers also realise the significance of a European stronghold, not just for potential sales, particularly in light of its uncertain domestic economy, but because of Europe's technological expertise.

In July XCMG held a foundation laying ceremony in Krefeld, Germany, for the Chinese crane and construction equipment manufacturer's new European headquarters. The 16,400 square metre site is the basis of an investment of more than €36 million (US$ 38 million). Although it will not initially build cranes, crawler production is a distinct possibility in the future. Wang Min, XCMG president, said, "The European strategy is of great significance in terms of the overall objectives and strategy of XCMG. Germany and Europe are home to abundant technological resources that represent state-of-the-art research and development and manufacturing in the world."

Mr Zhang, XCMG crane export director for Europe, has been given the responsibility of harnessing this potential. The manufacturer already has a 25 tonne all terrain and is developing a 55 tonner aimed at Europe. They will be exported to XCMG Poland, a joint venture in Warsaw, which currently assembles XCMG truck cranes. A production base for all terrains in Europe will have to wait, however. "Particularly for all terrain cranes, now is not a good time to set up a production base in Europe, because the market is not so good," says Zhang. "Maybe in two or three years it may be possible to slowly develop our manufacturing there."

The other option is to buy an existing Europe-based manufacturer that has the production capabilities and a suitable level of technology. But, according to Zhang, this will have to wait too. "Now is not a good time to think about joint ventures with crane companies in Europe, but we have dealers there and we keep close contact with them and when the market is right maybe we will consider that."

The economic climate has not stopped other Chinese manufacturers starting joint ventures in Europe. Sany is particularly aggressive in its global ambitions. It has signed two joint venture agreements with Palfinger to sell and distribute each others' cranes. Sany in China and Palfinger in Austria will each hold a 50% share in the two new companies. Changsha, China-based SanyPalfinger will manufacture and sell Palfinger knuckle boom cranes in China while Austria-based PalfingerSany will distribute wheeled mobile cranes produced by Sany in the world market outside China.

The new company will have exclusive distribution on Sany all terrain, rough terrain and truck cranes in Europe, Russia and CIS. To do this a complete new and separate organisation will be created. Suitable existing Palfinger dealers will have an opportunity to take on Sany distribution, Ortner said.

Focusing on the truck crane, a continual discussion surrounds its future in the European market. The economy has blunted the all terrain's might in Western Europe, but that does not mean the truck crane is making a great deal of headway, as commentators have suggested in the past. Manufacturers are seemingly attempting to find the middle ground with new lower capacity all terrains like the Terex Challenger.

Terex has two models in the Challenger series: the Challenger 3160 and 3180, part of a growing family up to 100 tonnes capacity. The Challenger 3160, with its 2.55 metre wide carrier, will be used mainly for urban projects and its selling point is its ability to travel as a taxi crane with all components on board. "The Challenger is in the market because it challenges the competition regarding the 12 tonne axle load limits," says a company spokesman.

Zhang at XCMG is sceptical about the truck crane's future in Europe but is sure of the all terrain's success, particularly in the lower capacity level. "I think all terrain cranes will continue to be popular and the truck crane will not find bigger sales [in Europe]. In the Asian market the truck crane is very popular but, in some years, the all terrain crane and rough terrain crane will be popular.

Zhang adds, "In the long term, maybe 10 to 20 years, all terrain cranes in China will even be dominant, but China still has a long way to go and the truck crane still has a lot of potential. South America is similar; in some years I think the all terrain and rough terrain will take over."

This reflects a common belief that Europe will retain its position as one of the world leaders in technology and other areas, notably safety, despite competition from other regions.

Stefan Fuchs, CEO at Germany-based specialized transport equipment manufacturer Goldhofer, agrees. The company is, for example, merging traditional and modular trailer technology for the first time, notably with the introduction of pendular axles to standard trailers. "The question is of infrastructure. With traditional trailers you have two lines, with a pendular you have four lines, so the load is spread more and it is better for the street. I think more countries are looking to Germany and middle Europe to see what they are doing to protect their infrastructure."

Mike Parnell at USA-based Industrial Training International, Inc. (ITI) is seeing traditionally-European machines making serious headway in the USA. "A particular upturn in self erecting tower cranes and articulating boom cranes for small project work and material delivery is gaining momentum."

Parnell has already helped write comprehensive training stipulations for both products. And while, for example, the knuckle boom is unlikely to replace the boom truck immediately, it is finding niches where the boom truck has always been inadequate, and its wider advantages are being realised.

Influence from Europe can also be found in more peripheral products. The biggest advances in the development of remote controls are in Europe, says Antonio Silvestri, Autec product development manager, "The use of more advanced radio remote controls is becoming common, i.e. safety function requirements, CAN bus interfaces and data feedback signals displayed. Whereas, in America and Asia these new performances are still limited to a few applications because many machines are not yet ready to benefit from these advances."

Moving on to safety, European training techniques and standards are recognised and sought after the world over, particularly those from the UK. In addition, Europe's standards are writing rules that will be followed worldwide in the future. For example, the Fédération Européenne de la Manutention (FEM) this year relaxed its guidance on lifting people in connection with leisure activities. Without FEM such standards would have not been in written in the first place.

Associations are also helping to write the rules and protect the crane user. In March ESTA held the Wind Turbine Installation and Transportation summit in Hamburg, Germany. It has started lobbying for improved conditions and longer lead times for crane users in erecting wind turbines, as well as setting out safety requirements when it comes to wind, outrigger pressure and access roads, among other topics.

So, while Europe is experiencing setbacks in some areas, its influence is still strong the world over.