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CAPITAL EQUIPMENT NEWS
OCTOBER 2016
20
T
he general construction exca-
vator remains the preferred
excavator size for local con-
struction contractors. Testimo-
ny to this is the fact that sales
units of the 18-25 t size catego-
ry continue to eclipse those of other excava-
tor sizes. Over the past couple of years, unit
sales of this market tier represented about
60% of the total excavator market in South
Africa, Namibia and Botswana, according to
industry statistics.
In the 10 months to October 2015, of the
total 946 excavators sold, 526 units fell into
the 18-25 t class size. However, due to the
tough market conditions this year, the mar-
ket size has significantly shrunk in recent
months. In the last three months, June only
saw 69 units in this market tier sold, while
July and August contracted to 60 and 58
units, respectively.
There is general consensus that this is a
lucrative market segment but is also fiercely
contested with no less than 14 brands vying
for a share of the market in South Africa,
from value through to premium makers.
“While this excavator segment of the market
may be perceived as being lucrative, the total
industry volume (TIV) of this market segment
has shrunk 16% year-on-year (12 months
rolling),” says Brenton Kemp, managing
director of CSE, the South African authorised
dealer of CASE Construction.
“When considering the number of brands
supplying into this segment of the market, the
reduced volumes place severe pressure on
margins, as OEMs pull out all stops to capture
the ever-reducing demand,” adds Kemp.
Speaking of pulling out all stops, due to
the competitive nature of this market, OEMs
also continue to give enough attention to
radical machine upgrades mainly aimed at
increasing productivity for fleet owners,
while shrinking operating costs as much
as possible. Recent new launches by a
host of OEMs, including CASE Construction,
Hyundai, Liebherr and Doosan, demonstrate
that relentless innovation is a key driver for
OEMs as they seek to stay relevant and com-
petitive in such a pitiless trading environment.
Improved productivity
One of the key market participants in
the 18-25 t excavator market segment
is Doosan, through its local dealer, DISA
Equipment, trading as Doosan South Africa.
With over 600 of the Doosan 20 t size class
excavators already operating in southern
Africa, the recently launched 21,5 t Doosan
DX225LCA aims to build on the success of its
predecessor models.
It comes with several new features that
significantly improve fuel efficiency and
overall lifetime operating costs. It benefits
from an array of feature upgrades for bet-
ter performance, productivity, durability and
lower cost of operation. It is ideally suited
for all construction, forestry and light mining
applications, according to Chris Whitehead,
JEWELS IN THE CROWN
The 18-25 t excavator class size remains the preferred tool of
trade for general construction applications in southern Africa,
and several new launches by a number of OEMs vying for a
share of this seemingly overtraded market underline the need
for improved performance, increased productivity, durability,
fuel efficiency and lower cost of ownership, especially in such a
cutthroat trading environment. By
Munesu Shoko
The CASE CX210B features a variable control
hydraulic pump which maintains optimum engine
rpm during heavy load work.
Model
CASE DX200LCA
Operating weight
21 500 kg
Engine
Isuzu 4HK1X
Power
117 kW @ 1 800 rpm
Boom length
5,7 m