PMV Power List - part 1

Your guide to the region's biggest PMV players - part one of five

Your guide to the biggest movers and shakers in the Middle East's PMV industry.
Your guide to the biggest movers and shakers in the Middle East's PMV industry.
JCB achieved 21.2% growth in its Middle East retails during the first two months of 2014.
JCB achieved 21.2% growth in its Middle East retails during the first two months of 2014.
Caterpillar's sales and revenues during 2013 were $55.656bn.
Caterpillar's sales and revenues during 2013 were $55.656bn.
CNH brand Case Construction is represented by Al Shirawi Enterprises in the UAE.
CNH brand Case Construction is represented by Al Shirawi Enterprises in the UAE.
Terex sold its off-highway truck business for $160mn in 2013.
Terex sold its off-highway truck business for $160mn in 2013.

These are exciting times for the Middle East’s PMV sector. Construction in the region might still be in the process of recovery, but even the most cautious individuals are beginning to focus less on what has come before, and more on what can be achieved in the future.

That’s not to say that lessons haven’t been learned. The crisis will live long in the memories of construction professionals the world over, and industry seems committed to securing sustainable growth.

This collective determination to avoid a repeat situation is helping to forge a more robust, reflective, and flexible PMV market in the Middle East. The OEMs and suppliers that are active in the region today have weathered the storm, and are now geared up to cater to a resurgent construction market.

In the following feature, PMV casts its eye on the firms that have driven progress during the last year, and speaks to some of the Middle East market’s key players.

JCB

It might be an overused turn of phrase, but JCB is one construction equipment manufacturer that can be legitimately described as ‘iconic’. In 2013, the company celebrated the 60th anniversary of the production of the world’s first backhoe loader – a machine invented by JCB founder, Joseph Cyril Bamford CBE.

However, this has also been an important 12 months for JCB in terms of its Middle East operations. The UK-headquartered manufacturer has been bucking market trends in the region, growing its retail volume in spite of a somewhat lacklustre backdrop.

“JCB has grown its market share across its core products in the majority of countries in the region,” said Steve Ryder, JCB’s regional sales manager for the Middle East.

“We finished very strongly in 2013. The overall market for our core products was down by almost 15% in the Middle East last year, yet we managed to achieve 5.4% growth in our retail volume,” he explained.

Growth is good news for an equipment manufacturer regardless of market conditions, but to increase retail volume against the backdrop of decline is particularly impressive. Encouragingly for JCB, this trend of growth – above and beyond the market average – appears to have continued into 2014.

“The Middle East market for our core products grew by just under 2% during the first two months of 2014, compared to the same period last year,” said Ryder.

“JCB, meanwhile, achieved growth of 21.2% in retails within the same timeframe. Again, we’re continuing to accelerate our retails ahead of market growth,” he concluded.

Caterpillar

Caterpillar did not enjoy the easiest of years during 2013, but the company retains its position amongst the construction equipment sector’s elite. Sales and revenues during 2013 fell to $55.656bn, down from $65.875bn in 2012; a drop primarily caused by decreased global demand for mining machinery.

Even so, the company has been taking important measures during the past year to cement its position at the premium end of the construction equipment sector.

Not only has Caterpillar unveiled its Tier 4 (European Stage IV) generation of low-emissions engines for regulated regions, but it is also committed to driving change in unregulated territories such as the Middle East. Indeed, the company has continued to push the environmental agenda by raising sustainability to one of its core values, alongside integrity, excellence, teamwork, and commitment.

Speaking on the importance of driving such change, Doug Oberhelman, Caterpillar chairman and CEO, said: “What we’ve been trying to do for some time is to look towards those areas that are not headed for Tier 4 in the future, and not talking about Tier 4, and to get them to use low-sulphur diesel fuel.”

CNH Industrial

CNH Industrial is in the fortunate position of having a duo of brands that are well respected amongst the Middle East’s construction community. Both Case and New Holland enjoy strong regional reputations as reliable and cost-effective equipment manufacturers.

“CNH has enjoyed success in the Middle East over the last 12 months, with a growing market share despite the sluggish overall performance of the region’s equipment sector during 2013,” said Bassem M Al-Bermawy, CNH Industrial’s field marketing manager for construction equipment in the Middle East.

“With this in mind, we have set ambitious goals for the year 2014, and we have enjoyed an exciting start to the year,” he told PMV.

Case in particular has a long and proud heritage in the region, with solid foundations in the UAE. The US-headquartered firm has been represented by Dubai-based distributor Al Shirawi Enterprises since the mid-1990s, and the manufacturer recently inaugurated a regional office in Dubai Airport Free Zone (DAFZ).

Despite its strong heritage and regional expansion, Al-Bermawy says that CNH’s overarching goal will be to provide top-class customer service for its local partners.

As Al Bermawy explained: “Our major priority is, and always will be, to enrich our customers’ experience with Case and New Holland. We will achieve this through distinguished performance and excellent after-sales support, in addition to our finan- cial service scheme.”

Terex

Another perennial favourite of the Middle East’s construction industry, no power list would be complete without Terex amongst its number. The sheer breadth of equipment available under its brand umbrella is staggering.

In addition to the earthmoving machinery offered by Terex Construction, there are the heavy lifters of Terex Cranes, the crushing and screening units of Powerscreen, washing plant from Terex Washing Systems, and the aerial work platforms (AWPs) of Genie.

However, Terex is also committed to maintaining a product portfolio that is relevant to its vision for the future, and the firm has made significant headway in this regard during the last 12 months.

In the final quarter of 2013, Terex agreed a $160mn deal with Volvo to sell its off-highway rigid and articulated truck business to Volvo CE; an important indication of the manufacturer’s ongoing efforts to build upon its core focuses of construction, heavy lifting, and materials handling.

 

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