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CAPITAL EQUIPMENT NEWS
NOVEMBER 2016
20
T
he ever-growing trend towards
smaller construction equipment
is at this point anchored by
mature markets, where about
70% of total equipment sales
are driven by compact ranges. In Africa, the
opposite is true; 75-80% of machines sold
are still heavy ranges. However, there is a
gradual growth of smaller gear in Africa.
The first big driver for compact gear is
urbanisation, according to Franco Invernizzi,
senior director for Africa and Middle East
at CASE Construction. “As towns continue
to grow, space is at a premium at many
construction sites, hence the need for a
compact machine,” he says. “The second
driver is the change in application. Away
from mining and infrastructure where you
need big-sized excavators, we see more
jobs in applications such as landscaping,
sewage, trenching and cabling. These sorts
of applications are continuously growing and
compact equipment becomes a big need. South
Africa is already one step forward in this regard
than its African peers. But, it is also encouraging
to note that other African countries are, slowly
but surely, following in this trend.”
The local construction equipment industry
generally agrees that the backhoe loader,
better known as the trailer loader backhoe
(TLB), and the skid steer, have for years
become the trusted “picks and shovels”
of the industry, accounting for a sizeable
chunk of the total equipment sales. “These
models are by far the ‘bread and butter’ lines
in the construction and plant hire industries,”
says Brenton Kemp, managing director of CSE,
the local dealer of CASE Construction. “The
versatility of the TLB makes it a machine of
choice on construction sites where applications
call for digging and loading of material.”
Kemp also believes skid steers are ver-
satile machines which continue to flex their
prowess on a range of applications. Howev-
er, demand for the TLB and skid steer loader,
compared to last year, has dropped signifi-
cantly. “The total industry volume for both
products has dropped by approximately 22%
(12 months rolling), at the back of an accel-
eration of regression in the last three months
(-32% TLBs and -35,9% skid steers),” says
Kemp.
Francois Griesel, national sales manager
at Wacker Neuson, shares the same senti-
ment, saying the local equipment markets
are down approximately 30% in 2016, and
suppliers are feeling the pressure.
Demand dominators
For both the TLB and skid steer loader, Kemp
says the construction and plant hire sectors
dominate the demand. “There has also been
an increase in the proportionate number of
Backhoe loaders and skid steers have always been the trusted ‘picks and
shovels’ of the local construction industry, and continue to dig their ways
onto sites. However, the compact excavator and the articulated loader
are continuously digging for a sizeable share of the market as the move
towards compact solutions on African sites continues to gain pace, writes
Munesu Shoko
.
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The compact excavator market is about 130-140 units
per year in South Africa, with model ranges varying in
size and capacity.